RNS Number:4911U
Merrill Lynch Asset Allocator PLC
21 January 2004
21 January 2004
MERRILL LYNCH ASSET ALLOCATOR plc
INTERIM RESULTS FOR THE SIX MONTHS ENDED
30 NOVEMBER 2003
* Re-organisation completed and new investment management
arrangements implemented with effect from 3 November 2003.
* Growth shares NAV increase of 6.0% over six month period (with net
income reinvested).
* Balanced shares NAV increase of 1.4% over six month period (with
net income reinvested).
The Chairman, Michael Mason, commented on the outlook for the Company:
"Whilst 2003 has seen improvements in equity markets, many commentators have
expressed doubts on the economic recovery underlying the rises in equities, and
markets in 2004 are likely to continue to prove challenging. The successful
conclusion of the war in Iraq has positively impacted investor sentiment, but
ongoing geopolitical risk could destabilise any recovery. Your Board believes
that in putting the new management arrangements in place, we have increased the
emphasis on capital preservation in the Growth Portfolio, and structured the
returns available to holders of Balanced Shares so that a reasonable level of
income can be expected."
Contacts: Lynn Ruddick - Managing Director 020 7743 2427
Investment Trusts
Merrill Lynch Investment Managers
William Clutterbuck 020 7379 5151
Maitland Consultancy
REVENUE STATEMENT - GROWTH SHARES
for the six months ended 30 November 2003
Six months ended
30 November 2003
#'000
Income 1,491
Investment management fees (181)
Operating expenses (215)
--------
Net revenue before finance costs and taxation 1,095
Interest payable and similar charges (340)
----------
Revenue on ordinary activities before taxation 755
Taxation on ordinary activities (168)
----------
Revenue on ordinary activities after taxation transferred to
reserves 587
======
STATEMENT OF TOTAL RETURN PER GROWTH SHARE
for the six months ended 30 November 2003
Basic Basic
(weighted) (actual) Diluted
Earnings 0.44p 0.44p 0.37p
Capital return 3.91p 4.00p 3.36p
---------- ---------- ----------
Total return per Growth share 4.35p 4.44p 3.73p
====== ====== ======
SUMMARY NET ASSETS STATEMENT - GROWTH SHARES
as at 30 November 2003
30 November
2003
#'000
Investments:
- Equities 48,486
- Interest bearing 21,559
- Hedge funds 30,043
Current assets 27,712
Creditors (21,789)
----------
Net assets 106,011
======
Net asset value per Growth share 80.31p
======
REVENUE STATEMENT - BALANCED SHARES
for the six months ended 30 November 2003
Six months ended
30 November 2003
#'000
Income 301
Investment management fees (35)
Operating expenses (38)
--------
Net revenue before finance costs and taxation 228
Interest payable and similar charges -
----------
Revenue on ordinary activities before taxation 228
Taxation on ordinary activities (60)
----------
Revenue on ordinary activities after taxation transferred to
reserves 168
======
STATEMENT OF TOTAL RETURN PER BALANCED SHARE
for the six months ended 30 November 2003
Basic Basic
(weighted) (actual) Diluted
Earnings 0.76p 0.73p 0.37p
Capital return 0.28p 0.27p 0.14p
---------- ---------- ----------
Total return per Balanced share 1.04p 1.00p 0.51p
====== ====== ======
SUMMARY NET ASSETS STATEMENT - BALANCED SHARES
as at 30 November 2003
30 November
2003
#'000
Investments:
- Interest bearing 13,097
- Equities 4,947
Current assets 2,991
Creditors (277)
----------
Net assets 20,758
======
Net asset value per Balanced share 90.51p
======
REVENUE STATEMENT - COMPANY
for the six months ended 30 November 2003
Six months Six months Year
ended ended ended
30 30 31
November November May
2003 2002 2003
#'000 #'000 #'000
(unaudited) (unaudited) (audited)
Income 1,792 2,395 4,363
Investment management fees (216) (216) (421)
Operating expenses (253) (204) (490)
---------- ---------- ----------
Net revenue before finance costs and taxation 1,323 1,975 3,452
Interest payable and similar charges (340) (475) (890)
---------- ---------- ----------
Revenue on ordinary activities before taxation 983 1,500 2,562
Taxation on ordinary activities (228) (138) (319)
---------- ---------- ----------
Revenue on ordinary activities after taxation 755 1,362 2,243
Dividends in respect of equity shares - - (2,207)
---------- ---------- ----------
Transfer to reserves 755 1,362 36
====== ====== ======
BALANCE SHEET - COMPANY
as at 30 November 2003
Growth Balanced Total Growth Balanced Total Growth Balanced Total
30 30 30 30 30 30 31 31 31
November November November November November November May May May
2003 2003 2003 2002 2002 2002 2003 2003 2003
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (audited) (audited) (audited)
Investments
at valuation
Equities 48,486 4,947 53,433 72,658 3,160 75,818 60,649 2,471 63,120
Interest
bearing 21,559 13,097 34,656 47,650 12,767 60,417 49,414 13,495 62,909
Hedge funds 30,043 - 30,043 - - - - - -
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------- ----------
100,088 18,044 118,132 120,308 15,927 136,235 110,063 15,966 126,029
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Current
assets
Debtors 1,308 539 1,847 5,537 233 5,770 14,774 4,085 18,859
Cash 26,404 2,452 28,856 12,369 4,223 16,592 17,846 4,162 22,008
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
27,712 2,991 30,703 17,906 4,456 22,362 32,620 8,247 40,867
Creditors
- amounts
falling
due
within
one year
(including
FRNs) (21,778) (277) (22,055) (30,350) (133) (30,483) (39,446) (4,263) (43,709)
---------- ---------- ----------- ---------- ---------- ----------- ---------- ----------- ----------
Net current
assets/
(liabilities) 5,934 2,714 8,648 (12,444) 4,323 (8,121) (6,826) 3,984 (2,842)
---------- ---------- ----------- ---------- ---------- ----------- ---------- ----------- ----------
Total assets
less current
liabilities 106,022 20,758 126,780 107,864 20,250 128,114 103,237 19,950 123,187
Provision
for
liabilities
and charges (11) - (11) (11) - (11) (13) - (13)
---------- ---------- ----------- ---------- ---------- ----------- ---------- ----------- ----------
Net assets 106,011 20,758 126,769 107,853 20,250 128,103 103,224 19,950 123,174
====== ====== ====== ====== ====== ====== ====== ====== ======
Capital
and
reserves
Share capital 155 165 159
Share premium 3,373 2,702 2,899
Capital
redemption
reserve 22 12 18
Capital reserve
- realised (45,144) (43,671) (49,610)
Capital reserve -
unrealised
(57) (7,566) (929)
Special reserve 167,580 175,050 170,552
Revenue reserve 840 1,411 85
---------- ---------- ----------
Total equity
shareholders'
funds 126,769 128,103 123,174
====== ====== ======
Net asset
value per
share 80.31p 90.51p 76.12p 87.22p 75.72p 89.26p
====== ====== ====== ====== ====== ======
CASH FLOW STATEMENT - COMPANY
for the six months ended 30 November 2003
Six Six Year
months months ended
ended 30 ended 30 31
November November May
2003 2002 2003
#'000 #'000 #'000
(unaudited) (unaudited) (audited)
Net cash inflow from operating activities 1,158 1,121 2,108
Returns on investment and servicing of finance -
interest on FRNs (357) (505) (942)
Taxation received/(paid) 36 - (21)
Capital expenditure and financial investment:
- Purchase of investments (185,257) (100,850) (171,779)
- Proceeds from the sale of investments 199,378 104,503 186,997
- Realised gains on foreign currency transactions 291 1,377 1,021
Equity dividends paid (2,207) (2,242) (2,239)
Financing
Purchase of shares (2,972) (3,586) (8,084)
Redemption of FRNs (3,087) (541) (2,368)
Re-organisation expenses (135) - -
---------- ---------- ----------
Increase/(decrease) in cash 6,848 (723) 4,693
====== ====== ======
RECONCILIATION OF NET RETURN BEFORE FINANCE COSTS AND TAXATION TO NET CASH FLOW
FROM OPERATING ACTIVITIES - COMPANY
Six Six Year
months months ended
ended 30 ended 30 31
November November May
2003 2002 2003
#'000 #'000 #'000
(unaudited) (unaudited) (audited)
Net return before finance costs and taxation 1,323 1,975 3,452
Investment management fees capitalised (417) (390) (723)
Decrease/(increase) in debtors 234 (161) (299)
Increase/(decrease) in creditors 102 (256) (200)
Tax on investment income included
within gross income (84) (47) (122)
-------- -------- --------
Net cash inflow from operating activities 1,158 1,121 2,108
===== ===== =====
NOTES TO THE INTERIM ANNOUNCEMENT
1 Principal activity
The Company conducts its business so as to qualify as an investment trust
company within the meaning of section 842 of the Income and Corporation Taxes
Act 1988.
2 Basis of preparation
The interim financial statements have been prepared on the basis of the
accounting policies set out in the Company's financial statements at 31 May
2003. Income and operating expenses have been recognised in accordance with the
same principles used in the preparation of the annual financial statements. The
taxation charge has been calculated by applying an estimate of the annual
effective tax rate to the profit for the period.
3 Income
Growth Balanced Total Growth Balanced Total Growth Balanced Total
Six months ended Six months ended Year ended
30 November 2003 30 November 2002 31 May 2003
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (audited) (audited) (audited)
Income
from
investments:
Dividends
- UK listed 200 38 238 354 1 355 858 8 866
- Overseas listed 513 7 520 475 14 489 972 22 994
Interest bearing
- UK listed 575 72 647 805 51 856 1,241 54 1,295
- Overseas
listed - 126 126 - 208 208 - 362 362
-------- -------- -------- -------- -------- -------- -------- -------- --------
1,288 243 1,531 1,634 274 1,908 3,071 446 3,517
-------- -------- -------- -------- -------- -------- -------- -------- --------
Interest
receivable
and
other income:
Deposit and
cash fund 203 58 261 422 65 487 701 145 846
interest
-------- -------- -------- -------- -------- -------- -------- -------- --------
203 58 261 422 65 487 701 145 846
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total income 1,491 301 1,792 2,056 339 2,395 3,772 591 4,363
===== ===== ===== ===== ===== ===== ===== ===== =====
4 Investment management fees
Growth Balanced Total Growth Balanced Total Growth Balanced Total
Six months ended Six months ended Year ended
30 November 2003 30 November 2002 31 May 2003
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (audited) (audited) (audited)
Charged to
revenue:
Investment
management fee 161 31 192 163 30 193 318 57 375
Irrecoverable
VAT thereon 20 4 24 19 4 23 39 7 46
----- ----- ----- ----- ----- ----- ----- ----- ------
Total 181 35 216 182 34 216 357 64 421
=== === === === === === === === ====
Charged to
capital:
Investment
management fee 338 31 369 319 30 349 587 57 644
Irrecoverable
VAT thereon 44 4 48 37 4 41 72 7 79
----- ----- ----- ----- ----- ----- ----- ----- ------
Total 382 35 417 356 34 390 659 64 723
=== === === === === === === === ====
5 Operating expenses
Growth Balanced Total Growth Balanced Total Growth Balanced Total
Six Months Ended Six Months Ended Year Ended
30 November 2003 30 November 2002 31 May 2003
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (audited) (audited) (audited)
Custodian and
administration
fees 119 20 139 124 17 141 241 35 276
Other
administrative
costs 96 18 114 52 11 63 185 29 214
----- ----- ----- ----- ----- ----- ----- ----- -----
215 38 253 176 28 204 426 64 490
=== === === === === === === === ===
6 Dividend
The Board has not declared an interim dividend, as dividends are considered and
paid annually in respect of each accounting period.
7 Shares and FRNs in issue
Growth Balanced Growth Balanced Growth Balanced
30 30 30 30 31 31
November November November November May May
2003 2003 2002 2002 2003 2003
(unaudited) (unaudited) (unaudited) (unaudited) (audited) (audited)
The weighted average
number of shares in issue
during the period, on which
the return per share was
calculated, was: 134,725,273 22,204,521 142,020,036 21,246,096 142,573,712 21,819,380
The actual number of shares
in issue at the end of each
period on which the NAV
per share was calculated,
was: 132,009,436 22,935,630 141,689,349 23,217,411 136,318,898 22,350,428
The adjusted number of
shares assuming conversion
of all FRNs into shares of
that class at the period
end: 157,323,022 45,398,283 175,730,623 52,930,346 167,320,558 48,620,872
Share price 70.00p 79.00p 70.00p 82.00p 69.50p 82.50p
30 November 2003 30 November 2002 31 May 2003
Amount of FRNs in issue: #20,330,947 #25,915,622 #23,891,934
8 Gearing ratios
Growth Share Portfolio 30 November 2003 30 November 2002 31 May 2003
(unaudited) (unaudited) (audited)
The ratio of borrowings to net assets were:
Total borrowings 19.2% 24.0% 23.1%
Effective borrowings* nil nil nil
*Total borrowings, less bonds and cash
There are no borrowings in the Balanced Share Portfolio.
9 Publication of non-statutory accounts
The financial information contained in this interim statement does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985. The financial information for the six months ended 30 November 2002 and
30 November 2003 has not been audited.
The information for the year ended 31 May 2003 has been extracted from the
latest published audited financial statements, which have been filed with the
Registrar of Companies. The report of the auditors on those accounts contained
no qualification or statement under sections 237(2) or (3) of the Companies Act
1985.
33 King William Street
London EC4R 9AS
21 January 2004
5 January 2004N:/data/MAM Private Investors/UK Retail/TRUSTS/MAA/
stockexchangeann/interim03 draft.doc
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