COLG - First Half Interim Management Statement
(Thomson Reuters ONE) - LSE: CIN 13 August, 2009 City of London Group Plc First Half Interim Management Statement * Investment portfolio rises by 23P.C. * NAV of 70.9p (63.9p) at end-July * Portfolio spread plus significant cash puts Group in strong position for investment opportunitiesIn the four months from end-March to end-July 2009, leadinginternational stock markets, generally, have recovered strongly fromthe cyclical lows reached in the early part of March. In particular,there were rises of 18%, 20% and 25% respectively in the UK,Australian and US markets, where most of the Group's investments arerepresented, as measured by the FTSE All Share, the ASX All Share andthe S&P 500 Indices.At end-July 2009 the group had cash and short term deposits of £1.82magainst £1.80m at end-March 2009, while investments ('available forsale financial assets') stood at £5.41m (£4.22m). Equityshareholders assets amounted to £7.22m (£6.27m at end-March)equivalent to 70.9p (63.9p) per share, a rise of 11%. Over theperiod, the investment portfolio, excluding cash, increased by 23%and, including cash, by 17%.Group profits attributable to equity shareholders for the four monthsto end-July 2009 amounted to £651,950 against £117,585 for the fourmonths to end-July 2008. The profit mainly relates to that achievedon the sale of investments, £697,922 being realised in the fourmonths to end-July 2009 against £106,246 in the same period of 2008.Profits realised on sale of investments in the full year to end March2009 amounted to £888,412. Dividend and other income in the fourmonths to end-July 2009 was at a similar level to that in the sameperiod of 2008, but operating costs were higher due to increasedproperty and consultancy expenses. At end-July 2009 approximately£175,000 of investment losses remained uncrystallised against£470,000 at end-March 2009.The above advances have reflected growing investor belief that thesevere economic deterioration experienced globally over the pasteighteen months is easing as evidenced by survey data indicating thatthe pace of contraction in jobs, output and credit markets wasslowing. However, following the recent substantial rises in stockmarkets, it would not be surprising if a period of consolidation wereto take place.The prospects for further sustained increases in stock markets restlargely on the size, speed and duration of economic recoveries in thekey 'locomotive' economies of the USA, Europe and Japan. There are anumber of risks, which vary from rises in interest rates, inflationand taxes to substantial cutbacks in Government spending, which couldderail a return to long-term trend rates of growth and, in turn,render economic activity anaemic compared to previous cycles.While the macro-economic uncertainties ahead seem greater thannormal, we believe that the geographical and sector spread of theportfolio investments together with the significant proportion ofcash held, some 25% of the portfolio, provide both defensivestrengths and the capability to take advantage of any materialsetbacks in stock markets by purchasing additional investments atlower valuations.Results for the first six months to 30 September 2009 are expected tobe announced on 8 December 2009.Further Info:David Walton Executive Chairman City of London 0207 628Masters Group Plc 5518Graham White Chief Financial City of London 0207 628 Officer Group Plc 5518---END OF MESSAGE---This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 13.08.2009 - 18:33 Uhr
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