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RNS

Final Results

Released 07:00 04-Dec-2012

RNS Number : 6267S
Edinburgh Worldwide Inv Trust PLC
04 December 2012
 



RNS Announcement: Preliminary Results

 

Edinburgh Worldwide Investment Trust plc

The following is the unaudited preliminary statement for the year to 31 October 2012 which was approved by the Board on 3 December 2012.

 

Summary

Over the year the Company's net asset value per share increased by 4.8% and the share price rose by 6.3% in comparison with a rise of 6.2% in the MSCI All Countries World Index (in sterling terms).

Baillie Gifford & Co has managed Edinburgh Worldwide for nine years and over that period, in total return terms, the share price has risen by 138%, net asset value per share by 113% and the Index by 87%.

¾ Over the past year, concerns regarding the health of European, US and Chinese economies appeared to lead markets. Investors now appear focussed on the US fiscal situation and the outcome of discussions between the President and Congress.

¾ Despite the uncertain macro outlook, many companies remain in rude health operationally. Although some have reported a slowdown in earnings, the majority of companies held in the portfolio appear to be well placed to achieve their growth potential.

¾ The net revenue return for the year was 2.50p per share (2011: 2.51p). An unchanged final dividend of 1.50p is being recommended to give a total for the year of 2.00p (2011: 2.00p).

¾ The Managers' focus remains on identifying companies believed to have above average growth prospects over the long term, unconstrained by the need to match benchmark composition. This index agnostic approach means that at times performance will deviate significantly from that of the benchmark.

¾ The Honourable Kim Fraser retired from the Board 31 October 2012. The Board wishes to thank him for his valuable contributions to Board discussions.

 

Edinburgh Worldwide aims to achieve long term capital growth by investing in listed companies throughout the world. The Trust has total assets of £186 million (before deduction of loans of £29 million) as at 31 October 2012.

Edinburgh Worldwide is managed by Baillie Gifford & Co, the Edinburgh based fund management group with around £84 billion under management and advice as at 3 December 2012.

 

Past performance is not a guide to future performance.

The value of an investment and any income from it is not guaranteed and may go down as well as up and investors may not get back the amount invested. This is because the share price is determined by the changing conditions in the relevant stockmarkets in which the Company invests and by the supply and demand for the Company's shares. Investment in investment trusts should be regarded as medium to long-term. You can find up to date performance information about Edinburgh Worldwide on the Edinburgh Worldwide page of the Managers' website at http://www.edinburghworldwide.co.uk

 

3 December 2012



 

For further information please contact:

Mark Urquhart, Manager, Edinburgh Worldwide Investment Trust plc

Tel: 0131 275 2070

Anzelm Cydzik, Baillie Gifford & Co

Tel: 0131 275 3276

Roland Cross, Director, Broadgate Mainland

Tel: 0207 776 0512 or 07831 401309



 

Chairman's Statement

 

Investment Background and Outlook

At various points over the past year it has seemed that investor behaviour mirrored symptoms of schizophrenia, with sentiment swinging wildly depending on the latest economic release or interpretation of a government official's or central banker's comments. This has resulted in notable market turbulence across a wide range of asset classes and geographies. Most recently, investor despondency, evident in the summer, appears to have lightened following actions taken by central banks.

The European Central Bank has pledged to do what it can to avert an imminent break-up of the Eurozone through buying unlimited amounts of European government bonds and the US Federal Reserve has begun a further round of quantitative easing in an attempt to stimulate lending. Weakening economic data was in part a catalyst for the actions with central bankers trying to convince investors that they are intent on creating a backdrop that will heal economies and stimulate growth. If successful, this in turn will benefit emerging economies too, which, although in a much healthier position than their counterparts, have been affected by the global deceleration in trade.

Despite the rate of Chinese growth having slowed, it is far above levels witnessed in many western economies. The rebalancing of its economy, from infrastructure investment to consumer driven, is a sensible approach. The change in leadership has cast a shadow of uncertainty, although concerns that a hard economic landing may be imminent have abated recently.

Although Barack Obama has secured a second Presidential term in a hard fought victory over his Republican rival, it is likely that the US fiscal situation will occupy more column inches in coming months. Two issues are pending: the individual tax cuts that are due to expire on 31 December; and, the $600bn worth of spending cuts due to commence on 2 January. The progress of discussions on these will no-doubt ensure a resumption of market turbulence till the situation is resolved.

The uncertain macro outlook notwithstanding, many companies remain in rude health operationally, notably those exposed to themes such as transformational technologies or the growing wealth of Asian consumers. Being able to identify the companies best placed to take advantage of these is the Managers' key focus.

An overview is provided by the Managers below, while in the Annual Report there is a portfolio review which examines some of our individual holdings in more detail.

 

Performance

In the year to 31 October 2012, the Company's net asset value per share increased by 4.8% and the share price rose 6.3%. The MSCI All Countries World Index (in sterling terms) increased 6.2% during this period. The Company's discount ended the year at 12.1% having started it at 13.2%.

The volatility of markets does, and will continue to, have an impact on the Company's short term performance, as will the uncorrelated nature of the portfolio versus its comparative index and the particular time period over which performance is judged. However, the concentrated nature of the portfolio, which is unconstrained by any requirement to match an index, combined with the Board's belief that the Managers are capable of investing in appropriate investments globally, is expected to result in good returns for the long term shareholder.

Over the nine years that Baillie Gifford & Co has been managing the Company's assets, in total return terms, net asset value per share has increased by 113%, the share price by 138% and the MSCI All Countries World Index by 87%.

 

Gearing

The portfolio comprises holdings that are believed to have long term attractions, over at least five years, and typically will be geared to maximise potential returns. Equity gearing was maintained throughout the year and was 17% at the year end (2011: 14%).

The Company has a £29m fixed rate multi-currency facility with National Australia Bank which expires in September 2014. Borrowings are drawn in USD, EUR and GBP at an all in rate of 2.63%.

 

Earnings and Dividend

The net revenue return per share for the year was 2.50p (2011: 2.51p). The Company's objective is one of capital growth and any income received from the underlying holdings is subsidiary to this objective. An unchanged final dividend of 1.50p is being recommended, making the total for the year 2.00p.

The Company's registrars operate a Dividend Reinvestment Plan which can be used to buy additional shares.

 

The Board

The Honourable Kim Fraser retired from the Board on 31 October 2012. During his 14 year tenure he has made a notable contribution to Board discussions; his insights have been considered and appreciated by colleagues. Mr William Ducas has replaced him as the Senior Independent Director. As highlighted in my report last year, Mr Jake Leslie Melville retired from the Board on 31 December 2011. This means that the Board, following a period of renewal, is back to being five in number.

 

Annual General Meeting

The Annual General Meeting of the Company will be held at Baillie Gifford's offices in Edinburgh at 12 noon on Thursday 31 January 2013. The Company will again seek to renew its share buyback and treasury share powers. Further information in respect of these resolutions and others can be found in the Annual Report.

Mark Urquhart, the Partner at Baillie Gifford who manages your portfolio, will make a presentation and answer any questions. Your Board will also be available to respond to any questions that you may wish to put to it. I hope that you will be able to attend.

 

 

David HL Reid

Chairman

 

Past performance is not a guide to future performance.



 

Managers' Overview

We reiterate every year that our objective in managing Edinburgh Worldwide is to run a concentrated portfolio of companies with good growth prospects for the long-term. One of the largest challenges for any investor seeking to have a long-term horizon is trying to separate what is short-term noise from those developments which might have a meaningful impact on the businesses we own. It certainly feels over the last twelve months that this task has been particularly acute - worries have been pronounced over the continued European debt crisis, the pace of Chinese growth accentuated by the recent political succession in that country, the US fiscal cliff especially in the context of a bipartisan Washington and most recently intra-Asian territorial disputes.

Of course, all of these are important issues but the connection with the businesses we own are at best obtuse and many appear to be unaffected by the macro gloom as they benefit from long-term secular shifts. Notably strong results amongst portfolio holdings have been seen over the last year from very diverse areas: Tencent in China, with spending on their social networks continuing to rise; Salesforce, where the take-up of cloud computing continues to accelerate; Hermès, whose profitability continues to rise on the back of record sales of their luxury goods; Inditex, where sales are continuing to accelerate as Zara's brand expands; and eBay, where not only has PayPal continued to grow rapidly but the core business appears to have been turned around.

A specific example of the battle being staged between strong bottom-up growth and top-down anxiety comes in our investment in Baidu. That company's growth seems to us much more dependent on the number of Chinese companies who move some of their advertising budget online rather than whether the economy grows at 7½% rather than 9%. As an aside, it is notable to us that such a growth rate is perceived by many to be a 'hard landing' for the Chinese economy. The company continues to grow very healthily, with growth over the last year of over 60% at both the top and bottom-lines, but in the short-term the market has decided the glass is half empty rather than half full.

In general, the majority of the companies in the portfolio have been performing very well at the operational level with many seeing sales and earnings growth of over 15% and some considerably faster than this. We believe patient investing in such businesses will be rewarded.

Whilst portfolio turnover has been quite low over the past year at 13% we continue to try to find new areas of future growth in which to invest. New holdings purchased during the period include: Burberry, where we feel the expanded market for luxury goods amongst non-western consumers is a long-term growth opportunity; Aggreko, which has a very strong position in the burgeoning market for temporary power; Rackspace, which is a leader in cloud hosting; Celltrion, which manufactures generic biotech drugs; and Shandong Weigao, which distributes medical consumables in China.

We have also taken a holding in Facebook - the shares fell dramatically after the IPO but we believe a myopic market is fundamentally misunderstanding the company's disruptive power and its opportunity to grow revenues significantly. Most recently, we have bought a holding in Stratasys, the leading player in the nascent industry of 3D printing - this technology is falling rapidly in price and allows a large degree of customisation which we think has radical applications in industries as diverse as healthcare and construction.

Sales were made of: ABB, where we worry that the competitive position is deteriorating and investments in power grids from fiscally-constrained western governments have proven slow; Gazprom, where the shale gas revolution potentially undermines the economics of its large gas reserves; CFAO, where Toyota Tsusho is taking the business private; Teva, where we worry that the strong historic growth rate of the generic drug business is slowing and management are diversifying; and First Solar, where we underestimated the power of Chinese competition.

We remain very excited about the prospects of the companies in the portfolio as evidenced by the level of gearing deployed. These are businesses which are enjoying secular growth opportunities from the many exciting changes occurring in how we and millions of newer consumers live their daily lives. Moreover the macro concerns discussed above mean that we are not being asked to pay very high valuations for companies which appear to us to have sustainable growth opportunities. More than ever, we feel that trying to differentiate ourselves from the prevailing herd and to think long and hard about the next five to ten years through the prism of individual companies should be a profitable way to invest.

 

Mark A Urquhart

Baillie Gifford & Co



 

Portfolio and equity performance at 31 October 2012 (unaudited)

 

 

 

Name

 

 

Business

Fair value

2012

£'000

% of total assets

Performance†

Fair value 2011

£'000

Absolute

%

Relative

%

Apple

Computing and media equipment

14,258

7.7

47.8  

35.2  

9,680

Amazon.com

Online retailer

13,870

7.4

9.2  

(0.1) 

12,685

eBay

Internet auction and payments

9,472

5.1

51.7  

38.7  

7,340

Tencent

Chinese social network

9,085

4.9

50.7  

37.8  

6,018

PPR

Luxury brand conglomerate

8,068

4.3

14.5  

4.7  

6,319

Whole Foods Market

Organic food stores

4.2

32.4  

21.0  

6,717

Google

Web-based search engine

7,495

4.0

14.8  

5.0  

5,706

Intuitive Surgical

Robotic surgery

7,404

4.0

25.2  

14.5  

5,913

Baidu

Chinese online search engine

7,240

3.9

(23.8) 

(30.3) 

9,491

Inditex

Fashion retail

7,047

3.8

42.4  

30.2  

5,859

Atlas Copco

Industrial compressors and mining     equipment

6,129

3.3

14.8  

5.0  

6,306

Salesforce.com

Software

6,059

3.2

9.6  

0.2  

4,767

Novozymes

Enzyme manufacturer

5,762

3.1

(7.5) 

(15.4) 

6,296

Hermès

Luxury goods

5,044

2.7

(18.5) 

(25.4) 

6,320

Vale (CVRD)

Mining

4,602

2.5

(20.8) 

(27.6) 

6,113

Illumina

Biotechnology equipment

4,577

2.5

58.4 

44.9  

2,129

Facebook

Social networking site

4,084

2.2

(44.7)*

(49.4)*

-  

Housing Development     Finance Corporation

Indian mortgage provider

3,633

 

1.9

 

2.2  

 

(6.6) 

 

3,620

 

L'Oréal

Personal care

3,572

1.9

16.7  

6.7  

3,116

Deere

Farm and construction machinery

3,429

1.8

15.1  

5.2  

4,690

Sandvik

Tools and mining equipment

3,296

1.8

2.6  

(6.2) 

3,308

Aggreko

Power equipment rental

2,803

1.5

24.6* 

13.9* 

-  

BMW

Premium car manufacturer

2,613

1.4

(0.2) 

(8.7) 

2,698

Rackspace Hosting

Cloud computing

2,573

1.4

24.5* 

13.8*

-  

New Oriental Education and     Technology

English-language schools

2,548

 

1.4

 

(41.8) 

 

(46.8) 

 

4,475

 

Belle International

Footwear - China

2,436

1.3

(5.5) 

(13.6) 

1,797

Burberry

Luxury fashion

2,395

1.3

(8.3)*

(16.1)*

-  

Shandong Weigao

Chinese medical supplies

2,365

1.3

27.0* 

16.1* 

-  

FLIR Systems

Infrared sensors

2,196

1.2

(25.2) 

(31.6) 

2,967

Stratasys

3D printing

2,193

1.2

14.6* 

4.8* 

-  

Celltrion

Biopharmaceuticals

2,143

1.1

11.0* 

1.5* 

-  

Seattle Genetics

Biotech cancer drugs

2,115

1.1

14.6  

4.8  

1,847

3SBio

Chinese generic drugs

1,896

1.0

16.7  

6.7  

1,632

Gree

Online gaming

1,732

0.9

(35.9)*

(41.4)*

-  

Straumann

Dental implants

1,722

0.9

(29.0) 

(35.0) 

2,476

Hengdeli Holdings

Chinese watch retailer

1,715

0.9

(28.9) 

(35.0) 

2,482

Sanrio

Hello Kitty and Mr Men franchise owner

1,654

0.9

(13.3)*

(20.8)*

-  

ALL America Latina Logistica

Brazilian railways

1,595

0.9

(8.8) 

(16.6) 

1,777

iRobot

Robots for domestic and military use

1,565

0.8

(46.8) 

(51.4) 

2,939

Ctrip.com

Travel agent - China

1,456

0.8

(42.5) 

(47.4) 

2,535

Noah Holdings

Chinese wealth manager

781

0.4

(41.7) 

(46.7) 

1,387

Vanceinfo

Chinese IT outsourcing

707

0.4

(34.2) 

(39.9) 

1,081

Total equities


183,075

98.3




Net liquid assets


3,134

1.7




Total assets at fair value (before deduction of loans)

186,209

100.0




†      Absolute and relative performance has been calculated on a total return basis over the period 1 November 2011 to 31 October 2012. For investments held for part of the year the return is for the period they were held.

Absolute performance is in sterling terms; relative performance is against MSCI All Countries World Index (in sterling terms).

* Figures relate to part-period returns.

Source: Baillie Gifford & Co/StatPro.

 

Distribution of assets (unaudited)

 



At 31 October 2012 %

At 31 October 2011

%

Equities:

USA

47.8

39.7


China

16.3

17.2


France

8.9

10.0


Sweden

5.1

5.3


Spain

3.8

3.3


Brazil

3.4

4.4


Denmark

3.1

3.5


UK

2.8

-


India

1.9

2.0


Japan

1.8

-


Germany

1.4

1.5


South Korea

1.1

-


Switzerland

0.9

3.4


Russia

-

2.0


Turkey

-

1.4


Israel

-

1.3

Total equities

98.3

95.0

Net liquid assets

1.7

5.0

Total assets (before deduction of loan)

100.0

100.0

 

Income statement

 


For the year ended 31 October 2012 (unaudited)

For the year ended 31 October 2011 (audited)


Revenue

£'000

Capital

£'000

Total

£'000

Revenue

£'000

Capital

£'000

Total

£'000

Gains/(losses) on investments

7,680 

7,680 

(855)

(855)

Currency gains/(losses)

725 

725 

(1,344)

(1,344)

Income (note 2)

2,414 

2,414 

2,412 

2,412 

Investment management fee

(269)

(807)

(1,076)

(283)

(850)

(1,133)

Other administrative expenses

(479)

(479)

(498)

(498)

Net return before finance costs and taxation

1,666 

7,598 

9,264 

1,631 

(3,049)

(1,418)

Finance costs of borrowings

(197)

(592)

(789)

(158)

(475)

(633)

Net return on ordinary activities before taxation

1,469 

7,006 

8,475 

1,473 

(3,524)

(2,051)

Tax on ordinary activities

(244)

(244)

(242)

(242)

Net return on ordinary activities after taxation

1,225 

7,006 

8,231 

1,231 

(3,524)

(2,293)

Net return per ordinary share (note 4)

2.50p

14.30p

16.80p

2.51p

(7.19p)

(4.68p)

The total column of this statement is the profit and loss account of the Company.

All revenue and capital items in this statement derive from continuing operations. No operations were acquired or discontinued during the year.

A Statement of Total Recognised Gains and Losses is not required as all gains and losses of the Company have been reflected in the above statement.

 

Balance sheet

 

 

 

At 31 October 2012 (unaudited)

£'000

At 31 October 2011

(audited)

£'000

Fixed assets



Investments held at fair value through profit or loss

183,075 

170,715 




Current assets



Debtors

235 

209 

Cash and short term deposits

3,357 

9,122 


3,592 

9,331 

Creditors



Amounts falling due within one year

(458)

(425)

Net current assets

3,134 

8,906 

Total assets less current liabilities

186,209 

179,621 




Creditors



Amounts falling due after more than one year (note 5)

(29,318)

(29,981)

Total net assets

156,891 

149,640 




Capital and reserves



Called up share capital

2,450 

2,450 

Share premium

82,180 

82,180 

Special reserve

35,220 

35,220 

Capital reserve

34,266 

27,260 

Revenue reserve

2,775 

2,530 

Shareholders' funds

156,891 

149,640 

Net asset value per ordinary share

(after deducting borrowings at fair value)

318.93p

304.24p

Net asset value per ordinary share

(after deducting borrowings at par)

320.16p

305.36p

Ordinary shares in issue

49,004,319

49,004,319

 



 

Reconciliation of movements in shareholders' funds

 

For the year ended 31 October 2012 (unaudited)


Called up share capital

£'000

Share premium

£'000

Special Reserve

£'000

Capital reserve†

£'000

Revenue reserve

£'000

Shareholders'
funds

£'000

Shareholders' funds at 1 November 2011

2,450

82,180

35,220

27,260

2,530 

149,640 

Net return on ordinary activities after taxation

-

-

-

7,006

1,225 

8,231 

Dividends paid during the year (note 3)

-

-

-

-

(980)

(980)

Shareholders' funds at 31 October 2012

2,450

82,180

35,220

34,266 

2,775 

156,891 

 

 

For the year ended 31 October 2011 (audited)


Called up share capital

£'000

Share premium

£'000

Special Reserve

£'000

Capital reserve†

£'000

Revenue reserve

£'000

Shareholders'
funds

£'000

Shareholders' funds at 1 November 2010

2,450

82,180

35,220

30,784 

2,279 

152,913 

Net return on ordinary activities after taxation

-

-

-

(3,524)

1,231 

(2,293)

Dividends paid during the year (note 3)

-

-

-

(980)

(980)

Shareholders' funds at 31 October 2011

2,450

82,180

35,220

27,260 

2,530 

149,640 

 

 The Capital Reserve balance at 31 October 2012 includes investment holding gains on fixed asset investments of £59,300,000 (31 October 2011 - gains of £49,283,000).



 

Condensed cash flow statement

 


For the year ended 31 October 2012 (unaudited)

For the year ended 31 October 2011 (audited)

 

£'000

£'000

£'000

£'000

Net cash inflow from operating activities (note 8)


868 


864 

Servicing of finance





Interest paid

(787)


(589)


Net cash outflow from servicing of finance


(787)


(589)






Taxation





Overseas tax incurred

(248)


(253)







Total tax paid


(248)


(253)






Financial investment





Acquisitions of investments

(27,653)


(44,650)


Disposals of investments

22,973 


46,843 


Realised currency gain/(loss)

62 


(23)


Net cash (outflow)/inflow from financial investment


(4,618)


2,170 

Equity dividends paid (note 3)


(980)


(980)






Financing





Bank loans repaid


(235,952)


Bank loans drawn down


239,809 


 

 

 

 

 

Net cash inflow from financing



3,857 

(Decrease)/increase in cash


(5,765)


5,069 

 

 

 

 

 

Reconciliation of net cash flow to movement in net debt





(Decrease)/increase in cash in the period


(5,765)


5,069 

Net cash inflow from bank loans



(3,857)

Exchange movement on bank loans


663 


(1,321)

Movement in net debt in the year


(5,102)


(109)

Net debt at 1 November


(20,859)


(20,750)

Net debt at 31 October


(25,961)


(20,859)






 



 

Notes (unaudited)

   

1.    

The financial statements for the year to 31 October 2012 have been prepared on the basis of the accounting policies set out in the Company's Annual Financial Statements at 31 October 2011, which are unchanged from the prior year and have been applied consistently.

In accordance with the Financial Reporting Council's guidance on going concern and liquidity risk, the Directors have undertaken a rigorous review of the Company's ability to continue as a going concern. The Company's assets, the majority of which are investments in quoted securities which are readily realisable, exceed its liabilities significantly. All borrowings require the prior approval of the Board. Gearing levels and compliance with borrowing covenants are reviewed by the Board on a regular basis.

Accordingly, the financial statements have been prepared on the going concern basis as it is the Directors' opinion that the Company will continue in operational existence for the foreseeable future.

The Directors consider the Company's functional currency to be sterling as the Company's shareholders are predominantly based in the UK and the Company is subject to the UK's regulatory environment.

 

2.    

Income

2012

£'000

2011

£'000

Income from investments

2,398

2,356

Deposit interest

16

56


2,414

2,412

 




3.    

Ordinary dividends

2012

2011

2012

£'000

2011

£'000

Amounts recognised as distributions in the period:





Previous year's final (paid 8 February 2012)

1.50p

1.50p

735

735

Interim (paid 19 July 2012)

0.50p

0.50p

245

245

 

2.00p

2.00p

980

980

 

 

We also set out below the total dividends paid and proposed in respect of the financial year, which is the basis on which the requirements of section 1158 of the Corporation Tax Act 2010 are considered. The revenue available for distribution by way of dividend for the year is £1,225,000 (2011 - £1,231,000).

 

 

Ordinary dividends

2012

2011

2012

£'000

2011

£'000

Dividends paid and payable in respect of the year:





Interim dividend per ordinary share (paid 19 July 2012)

0.50p

0.50p

245

245

Proposed final dividend per ordinary share (payable 6 February 2013)

1.50p

1.50p

735

735

 

2.00p

2.00p

980

980

 

If approved the final dividend will be paid on 6 February 2013 to all shareholders on the register at the close of business on 11 January 2013.  The ex-dividend date is 9 January 2013. The registrars, Computershare Investor Services plc, offer a dividend reinvestment plan. The final date for the receipt of elections for the dividend reinvestment plan is 18 January 2013.

 



 

4.    

Net return per ordinary share

 

Revenue

2012 Capital

 

Total

 

Revenue

2011

Capital

 

Total

Net return on ordinary activities after     taxation

2.50p

14.30p

16.80p

2.51p

(7.19p)

(4.68p)

 

Revenue return per ordinary share is based on the net return on ordinary activities after taxation of £1,225,000 (2011 - £1,231,000) and on 49,004,319 ordinary shares, being the weighted average number of ordinary shares in issue during each year.

Capital return per ordinary share is based on the net capital gain for the financial year of £7,006,000 (2011 - loss of £3,524,000) and on 49,004,319 ordinary shares, being the weighted average number of ordinary shares in issue during each year.

There are no dilutive or potentially dilutive shares in issue.

 

5.    

The fixed rate facility with National Australia Bank Limited for €11.4m, US$16.35m and £10.0m expires on 30 September 2014.

 

6.    

The Company incurred transaction costs on purchases of £43,000 (2011 - £61,000) and on sales of £13,000 (2011 - £43,000).

7.    

At the Annual General Meeting on 2 February 2012 the Company renewed its authority to purchase shares in the market, in respect of 7,345,747 ordinary shares (equivalent to 14.99% of its issued share capital at that date). No shares were bought back during the year to 31 October 2012 or 2011. At 31 October 2012 the Company had authority to buy back 7,345,747 ordinary shares.

 

8.    

Reconciliation of net return before finance costs and taxation to net cash inflow from operating activities

2012

£'000

2011

£'000

 

Net return before finance costs and taxation

9,264 

(1,418)

 

(Gains)/losses on investments

(7,680) 

855 

 

Currency (gains)/losses

(725) 

1,344 

 

(Increase)/decrease in accrued income

(8) 

22 

 

(Increase)/decrease in debtors

(14) 

94 

 

Increase/(decrease) in creditors

31 

(33)

 

Net cash inflow from operating activities

868 

864 

 

9.    

The financial information set out above does not constitute the Company's statutory accounts for the year ended 31 October 2012. The financial information for 2011 is derived from the statutory accounts for 2011 which have been delivered to the Registrar of Companies. The Auditors have reported on the 2011 accounts, their report was unqualified and did not contain a statement under section 495 to 497 of the Companies Act 2006. The statutory accounts for 2012 are unaudited and will be finalised on the basis of the financial information presented in this preliminary announcement and will be delivered to the Registrar of Companies following the Company's Annual General Meeting.

10. 

The Report and Accounts will be available on the Edinburgh Worldwide page of the Managers' website http://www.edinburghworldwide.co.uk on or around 21 December 2012.

11. 

None of the views expressed in this document should be construed as advice to buy or sell a particular investment.

 

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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