Anglo & Overseas Plc - Interim Management Statement 3 Months to 30 April 2010
16th June 2010
INTERIM MANAGEMENT STATEMENT FOR THE THREE MONTHS TO 30 APRIL 2010
The Board of Anglo & Overseas Plc (the "Company") announces its Interim Management Statement for the period from 1 February 2010 to 30 April 2010 (the "period"). This statement is required by the UK Listing Authority's Disclosure and Transparency Rules and should not be relied upon for any other purpose.
Objective
The objective of Anglo & Overseas Plc is to provide shareholders with above average returns over the longer term through both capital appreciation and income growth.
Review of the Period
Results
During the period the net asset value per share increased by 5.3% from 110.08p to 115.94p. The net asset value total return (including the interim dividend of 0.84p) was 6.0%. Although the Company's portfolio is not managed with reference to any stock market index your Board continues to believe it is useful for comparative purposes to highlight the performance of the Company against market indices. In the period the total return from the FTSE All-Share Index was 8.8% and from the FTSE All-World ex UK Index was 13.6%. The average total return from these two indices was 11.3%.
Share Price and Discount
During the period the share price rose by 2.4% from 95.25p to 97.50p. As a consequence of the share price increase being lower than the rise in the net asset value, the share price discount to net asset value increased from 13.5% to 15.9%.
Your Board continues to believe that the shares of your Company should trade in a relatively narrow range around net asset value and as a consequence it continues to operate an active share buy back policy. During the period the Company repurchased 330,000 shares which were placed into treasury. The total cost of these repurchases was £322,000. The total number of shares held in treasury at 30 April 2010 was 10,057,438 shares, representing 12.1% of the total number of shares in issue of 83,275,319 shares. The total number of shares in circulation as at 30 April 2010 was 73,217,881 shares.
There have been no further transactions in the Company's own shares since 30 April 2010.
Dividend
The Company paid an interim dividend of 0.84p per share in respect of the year to 31 July 2010. This was paid on 30 April 2010 to shareholders on the register as at 9 April 2010. The ex-dividend date was 7 April 2010.
Investment Outlook
During the period there was a recovery in economic growth worldwide, particularly in emerging economies, and this benefited equity markets, despite increasing concerns in Europe, particularly Greece, of sovereign debt default.
Economic recovery has been partially stimulated by inventory rebuilding from low levels. However the principal stimulus has been from additional government spending which has resulted in substantial fiscal deficits. These fiscal deficits will have to be reduced and will act as a constraint on economic growth going forward, particularly when the expenditure and tax consequences of government action begin to take effect.
Following the rise in share prices during the period and their subsequent decline following the period end, when Eurozone debt concerns reignited, stock markets globally offer reasonable value when compared with other asset classes such as cash and bonds.
The substantial valuation gaps between defensive and cyclical stocks, which prompted a major shift in portfolio structure eighteen months ago, no longer exist and future changes in the portfolio in the near future are more likely to be of a stock specific nature.
FINANCIAL SUMMARY
|
|
30 April 2010
|
31 January 2010
|
% Change
|
|
Net asset value per share
|
115.94p
|
110.08p
|
+5.3%
|
|
Share price
|
97.5p
|
95.25p
|
+2.4%
|
|
Share price discount to net asset value
|
15.9%
|
13.5%
|
|
|
Net assets
|
£84.9m
|
£81.0m
|
|
Past performance is not a guide to future performance.
The Directors are not aware of any significant event or transactions which have occurred between 30 April 2010 and the date of publication of this statement which have had a material impact on the financial position of the Company.
16 June 2010
Enquiries:
Sandy Nairn
Kenneth Greig
Edinburgh Partners Limited, 12 Charlotte Square, Edinburgh EH2 4DJ
Tel: 0131 270 3800
Registered Office of the Company:
Beaufort House, 51 New North Road, Exeter EX4 4EP