Friday, asset management group Foreign & Col Invest Trust Plc (FRCL.L) posted full-year 2008 loss over last year's profit. The results reflected loss from investments amidst a global economic fallout.
Net return on ordinary activities before taxation was a loss of £645 million, compared to net return of £322.4 million in the prior year period. Also net return before finance costs and taxation was a loss of £628 million, versus last year's net return of £337.2 million. Net return attributable to equity shareholders was a loss of £648.2 million or 95.20 per share, compared to net return of £319.5 million or 44.50 pence per share in the previous year.
Net asset value for the year was down 28.5% to 256.6 pence per share. Prior charges, net asset value per share fell to 262.50 pence per share, from 363.47 pence per share last year.
Commenting on the results, Chairman, Mark Loveday, said, "2008 was the single worst year for investors and for your Company since 1974. Sticking to our long-term policy of being fully invested in global equities was painful, and having borrowings in a falling market also resulted in underperformance relative to our benchmark..."
During the 12-month period, the company recorded losses on investment of £679.9 million, compared to profit of £288.5 million last year. Exchange losses widened to £4.4 million from £0.7 million, while management fees narrowed to £9.3 million from £9.5 million.
The board proposed a final dividend of 3.45 pence per share, payable on May 8 to shareholders of register on March 20.
Looking ahead, the group stated that the immediate outlook for the global economy is bleak and expects 2009 to be the worst year for economic growth. However, the company said it remains optimistic about the long-term prospects for private equity, seeing attractive investment opportunities in 2009 and 2010.
Currently, the stock is down 2.50 pence, trading at 187.25 pence on the London Stock Exchange.
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