September 2006
Performance to 30/09/2006
The net asset value per share at 30 September 2006 was 260.8p, an increase of 7.6% over
the corresponding figure at 30 September 2005. The share price at 30 September 2006
stood at a three-year low of 189.5p, representing a 27.3% discount to NAV, although there
has subsequently been an upward movement. Investment income for the half year was
slightly higher than in the corresponding period and the revenue return per share was
unchanged at 3.3p. The directors have declared an interim dividend of 2.0p per share, an
11.1% increase over the preceding year. In the absence of unforeseen circumstances it is
intended that the final dividend for the year will be at least maintained at last year's level of
4.2p per share, making a total of not less than 6.2p for the full year.
Activity
The managers are repositioning the portfolio with the objective of concentrating a larger
proportion of the company's assets on the twenty largest holdings. This will be achieved by
increasing the average size of new investments and reducing the number of holdings. Over
the six months to 30 September 2006 there was a net reduction of three, from 62 to 59,
with two new investments totalling £2.7 million added to the portfolio. The new additions
were Nightingales Holdings, a mail order retailer of women's clothing, and Touchstone Asset
Management, which provides property management services. The investment in AFI Aerial
Platforms was sold during the period for £3.7m, generating a compound internal rate of
return of over 80% per annum, and since the end of September the investment in
Submersible Television Surveys has been sold for £0.9m.
Outlook
The flow of potential investment opportunities is currently strong and we expect to
complete some substantial new investments during the second half of the financial year,
whilst seeking to capitalise on several realisation opportunities which our managers are
currently working on.
Source: Monthly Factsheet Aberdeen Asset Managers Limited