Select Committee on Treasury Minutes of Evidence


Annex B (continued)

Gearing at 31 July 2002


%
£m

PotentialGross Assets
677.1
GearingDebt
377.3
Factor
303.90
Prior Charges
77.0

Source: Aberdeen Asset Managers Ltd.

Capital Structure at 31 July 2002


Ordinary shares
256,248,058
Zero Dividend Preference shares
70,000,000
Conv. ULS 10%
124,398,516

Source: Aberdeen Asset Managers Ltd.

TRADING DETAILS
Topic52149
Epic CodeREO
StockbrokerLondon: UBS Warburg, Dublin. NCB Stockbrokers
Market makersABN, CSCS, HSBC, KLWT, PEEL, UBSW
Internethttp://www.realestate-opps.co.uk
http://www.aberdeen-asset.com
  
  
CALENDAR
Year end31 December
Accounts publishedApril, October
Annual General MeetingJune
Dividend paidOrdinary share dividend suspended
Loan stock interest paidHalf-yearly: February and August
Launch dateJune 2001


  On 25 July the Company released the following announcements:

Dividends

  The Board of the Company has decided that in view of a continuing reduction in the level of income receipts arising from split capital investment trust dividend suspensions and the sale of Income Portfolio assets to produce cash for offset against the Company's Income Portfolio loan, it is appropriate to suspend the Company's second interim dividend for the year ending 31 December 2002, having already paid a first interim dividend of 2.2p per share. Future dividends will be considered with reference to market conditions at that time.

  The level of income from the Property Portfolio, however, remains robust and rent reviews are producing good results.

Portfolio

  The Company's gross assets are approximately £680 million. The breakdown of these assets is approximately:

UK Property (1)
18.2 per cent
Irish Property (including joint venture) (1)
48.3 per cent
Cash (including amounts offset against bank loans)
22.2 per cent
Bonds (2)
7.3 per cent
Investment Companies (2)
4.0 per cent
  
Notes
1.  Based on valuations at 31 December 2001;
2.  Based on valuations at 23 July 2002.


Banking update

  As referred to in the Chairman's Statement accompanying the Company's annual results, the Company has continued the cash offset arrangement with its banking lenders against the Income Portfolio loan. This arrangement is currently in place until 4 September 2002.

  The level of the cash offset has been incresed in order to maintain compliance with the covenants of the Income Portfolio loan. The Income Portfolio loan currently totals £119.3 million of which, £87.8 million is being offset. The Company is negotiating with its banking lenders regarding a repayment of a substantial portion of its Income Portfolio loan. A further announcement in this regard is expected to be made in due course.

  The Company has agreed with its banking lenders to implement a cash offset against the Property Portfolio loan held by the Company's property owning subsidiaries (excluding Ireland). By implementing a cash offset on the Property Loan, cash not required for convenant purposes in respect of this loan can be made available to the Company.

  At the present time the Property Portfolio loan is £109 million and the cash offset against this loan £25.8 million.

Broadgate Investment Trust PLC

INSTITUTIONAL REPORT

August 2002




OBJECTIVE

  The objective is to provide a predetermined return of capital for the Zero Dividend Preference Shareholders; to provide a high and growing income stream to the Ordinary Shareholders and the prospect of capital growth; and to provide Stockholders with returns of income and capital aligned with the movements in the FTSE All-Share Index.

MANAGER'S REPORT

  July was another weak month for UK equities with FTSE 350 index falling by 9.3 per cent on the month. US corporate governance issues continued to dominate investor sentiment amplified by fears of a double dip recession in the US. Within the indices the blue chips outperformed both Mid Caps and Small Caps with market volatility reaching levels last experienced during the 1987 crash.

  In general defensive sectors outperformed as cyclicals struggled but the most striking performance during the month was the resurgence of the Telecommunications sector that occurred despits continuing poor newsflow from the rest of the TMT sectors. The banking sector performed better reflecting strong yield attractions and exposure to the still strong UK housing market. Industrial stocks continued to suffer reflecting ongoing sterling strength.

  In the period the fund reduced its positions in the banking sector with reductions in Barclays, HSBC and HBOS as concerns mounted on corporate credit issues globally. The fund switched its holding in SAB Miller into Diageo following outperformance of the former, with the latter offering solid earning growth prospects in its spirits division arising from the merger with Seagram. The fund reduced its holding in Marks and Spencers following strong outperformance as concerns grow over a weakening consumer spending outlook. The proceeds were used to top up the holding in Unilever following short term underperformance on technical issues as the ADR's were ejected from the S&P500 index.

Allocation of Expenses and Interest at 31 July 2002


Capital %
Revenue %
75
25

Source: Aberdeen Asset Managers Ltd.


Total Investments at 31 July 2002


Total Investments
80

Source: Aberdeen Asset Managers Ltd.


Gearing at 31 July 2002


%
£m

Gross Assets
5.9
Gearing
Debt
Factor
1,966.7
Prior charges
5.6


Source: Aberdeen Asset Managers Ltd.

Capital Structure at 31 July 2002


Ordinary shares
26,012,500
Zero Dividend Preference shares
5,124,200
Warrants
24,000
Equity Ind ULS 2007
2,500,000


Source: Aberdeen Asset Managers Ltd.

CALENDAR
Year end30 September
Accounts publishedJune, November
Annual General MeetingDecember
Dividend paidN/A
Launch date29 July 1992
Wind up date12 October 2007


TRADING DETAILS
SEAQ Code50467, 48154, 50470
Topic Page21301A/50467A, 21301A/48154A, 21301A/50470A
Bloomberg/Reuters CodeBGTG, BGTZ, BGTA, BGTW
StockbrokerCazenove
Market MakersHSBC, CAZN, UBSW, CSCS
Internethttp://www.aberdeen-broadgate.co.uk
http://www.broadgate-trust.co.uk
http://www.aberdeen-asset.com



PREVIOUS DIVIDEND ANNOUNCEMENTS
27 February 2002Suspension of Dividends—Ordinary shares




 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2002
Prepared 17 October 2002