Half-yearly Report
20 August 2008 - 1:44PM
UK Regulatory
PRESS RELEASE
LIFE OFFICES OPPORTUNITIES TRUST PLC
Unaudited results for the six months to 30 June 2008
Key Points
* Net asset value per share increased 2.1% to 165.62 pence.
* Maturity proceeds were approximately 1.6% higher than forecast at the 2007
year end.
* Company now almost fully in cash and equivalents
* Liquidation vote to take place in mid October 2008
For further information please contact:
Donald Robertson SVM Asset Management Limited 0131 226 6699
Colin McLean SVM Asset Management Limited 0131 226 6699
Roland Cross Broadgate 020 7726 6111
LIFE OFFICES OPPORTUNITIES TRUST PLC
CHAIRMAN'S STATEMENT
For the six months to 30 June 2008
Commenting on the results for the six months to 30 June 2008, Chairman, John
Brumwell, said:
"I am pleased to report the first half of 2008 has seen the Company's asset
value again increased. Over the six month period, the net asset value per share
rose by 2.1 per cent to 165.62 pence. The investment objective of the Company
has been to achieve long term capital growth and no dividend is payable.
As at the end of June 2008, there were only 31 endowment policies worth
approximately �1.0 million still to mature. This represented 2.6% of net
assets. Maturities continue apace and as at the close of business on 18 August
2008, there were only 4 policies outstanding representing less than 0.3% of net
assets. The Managers have received details of the maturity proceeds for all the
outstanding policies.
Since the repayment of the gearing in 2007, the cash proceeds from maturities
have been positioned in short dated UK government securities and bank deposits.
Being aware of potential counterparty risk, the deposits have been placed with
a range of well-financed major UK high street banks.
We are pleased to report that on average the maturity proceeds were 1.6% higher
than forecast at the 2007 year end. This is an exceptional result given the
weakness in life offices' underlying assets. We suspect that the maturing of
the Company's policies has been very well timed as recent market weakness is
likely to affect future life office payouts.
As the proceeds from the remaining policies will have been received by the end
of the third quarter of 2008, the Board see no reason to delay the formal
winding up of the Company. To this end, a circular to shareholders has been
prepared in order to convene a formal shareholder meeting in mid October to
approve the winding up of the Company. This will be sent to shareholders in mid
September.
Barring unforeseen circumstances, the first liquidation distribution should be
payable soon after the date of liquidation with a further final distribution
before the year end. "
John Brumwell
Chairman
20 August 2008
Summarised Income Statement
(unaudited)
6 months to 30 June 2008 6 months to 30 June 2007
Revenue Capital Total Revenue Capital Total
�'000 �'000 �'000 �'000 �'000 �'000
Gains on sale of - 7,253 7,253 - 1,549 1,549
investments
Movement in unrealised - (7,077) (7,077) - 1,217 1,217
appreciation
-------- -------- -------- -------- -------- --------
Gains on investments - 176 176 - 2,766 2,766
Income 882 - 882 27 - 27
Investment management - (161) (161) - (157) (157)
fees
Other expenses (25) (83) (108) (66) (76) (142)
-------- -------- -------- -------- -------- --------
Return before interest 857 (68) 789 (39) 2,533 2,494
and taxation
Bank overdraft interest - - - - (282) (282)
-------- -------- -------- -------- -------- --------
Transfer (from) / to 857 (68) 789 (39) 2,251 2,212
reserves
-------- -------- -------- -------- -------- --------
Return per ordinary share 3.64p (0.29p) 3.35p (0.17p) 9.56p 9.39p
Summarised Cash Flow Statement
(unaudited)
6 months to 6 months to
30 June 30 June
2008 2007
�'000 �'000
Net cash flow from operating (56) (604)
activities
Returns on investment and servicing - (282)
finance
Capital expenditure and financial 9,069 4,130
investment
---------- ----------
Increase in cash 9,013 3,244
---------- ----------
Balance Sheet
(unaudited)
As at As at
30 June 30 June
2008 2007
�'000 �'000
Investments at fair value through - 43,617
profit or loss
--------- ---------
Current assets 39,323 24
Creditors: amounts falling due within (319) (7,718)
one year
--------- ---------
Net current assets / (liabilities) 39,004 (7,694)
--------- --------
Total assets less current liabilities 39,004 35,923
--------- ---------
Equity shareholders' funds 39,004 35,923
-------- --------
Net asset value per ordinary share 165.62p 152.54p
Summarised Reconciliation of Movement in Shareholders Funds
(unaudited)
Share Special Capital Capital Capital Revenue
capital reserve redemption reserve reserve reserve
reserve realised unrealised
�'000 �'000 �'000 �'000 �'000 �'000
As at 1 January 2008 17,662 5,859 638 7,799 7,288 (1,031)
Realised gain on sale - - - 7,253 - -
of investments
Expenses charged to - - - (244) - -
capital
Movement in unrealised - - - - (7,077) -
appreciation on
investments
Return on ordinary - - - - - 857
activities after
taxation
------- ------- ------- ------- ------- -------
As at 30 June 2008 17,662 5,859 638 14,808 211 (174)
------- ------- ------- ------- ------- -------
Share Special Capital Capital Capital Revenue
capital reserve redemption reserve reserve reserve
reserve realised unrealised
�'000 �'000 �'000 �'000 �'000 �'000
As at 1 January 2007 17,662 5,859 638 (5,572) 16,051 (927)
Realised gain on sale - - - 1,549 - -
of investments
Expenses charged to - - - (515) - -
capital
Movement in unrealised - - - - 1,217 -
appreciation on
investments
Return on ordinary - - - - - (39)
activities after
taxation
------- ------- ------- ------- ------- -------
As at 30 June 2007 17,662 5,859 638 (4,538) 17,268 (966)
------- ------- ------- ------- ------- -------
Notes
1. The accounts have been prepared in accordance with applicable accounting
standards and the 2005 Statement of Recommended Practice (SORP) issued by the
Association of Investment Companies.
2. The accounts have been prepared on a break-up basis and all assets and
liabilities are stated at their recoverable value. As a consequence, all assets
and liabilities have been re-classified as current. In addition, a provision of
�120,000 has been made for liquidation expenses.
3. Returns per share are based on a weighted average of 23,550,000 (2007 -
23,550,000) ordinary shares in issue during the year.
Total return per share is based on the post tax total return for the period of
�789,000 (2007 - �2,212,000).
Capital return per share is based on net capital loss during the period of �
68,000 (2007 - gain of �2,251,000).
Revenue return per share is based on the revenue after taxation for the year of
�857,000 (2007 - loss of �39,000).
The number of shares in issue at 30 June 2008 was 23,550,000 (2007 -
23,550,000).
4. Investment management fees, policy advisory fees and finance interest have
been allocated 100% to capital (2007: same).
5. The above figures do not constitute full accounts in terms of Section 240 of
the Companies Act 1985. The accounts for the year to 31 December 2007, on which
the auditors issued an unqualified report under Section 235 of the Companies
Act 2005, have been lodged with the Registrar of Companies and did not contain
a statement required under Section 237(2) or (3) of the Companies Act 1985. The
interim report will be mailed to shareholders toward the end of August 2008.
Copies will be available for inspection at 7 Castle Street, Edinburgh, the
registered office of the Company.
END
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