Interim Results

GARTMORE ASIA PACIFIC TRUST PLC ANNOUNCEMENT OF RESULTS FOR THE SIX MONTHS TO 30TH SEPTEMBER 2004 The Directors announce the Company's unaudited results for the six months to 30th September 2004 as follows:- OVERVIEW - Net Asset Value per Ordinary share fell by 11.8% to 157.3p, compared with a fall of 6.7% in the Company's benchmark, the MSCI All Countries Asia Pacific (cum Japan) Index (in sterling terms). - Mid-market price per Ordinary share fell by 10.6% to 147.5p. - The long term prospects for Pacific equities remain encouraging. TOTAL RETURN Six Months to 30th September 2004 Revenue Capital Total £'000 £'000 £'000 Income and Capital Profits/(Losses) Dividends and other income 265 - 265 Net loss on investments - (3,424) (3,424) -------- ----------- ----------- Return before Expenses, Finance Costs 265 (3,424) (3,159) and Taxation Expenses Management fees (133) - (133) Other expenses (114) - (114) -------- ----------- ----------- Return before Finance Costs and 18 (3,424) (3,406) Taxation Finance Costs Interest payable (84) - (84) Exchange gain/(loss) on currency - - - transactions -------- ----------- ----------- Return on ordinary activities before (66) (3,424) (3,490) Taxation Taxation (26) - (26) -------- ----------- ----------- Return to Equity Shareholders after (92) (3,424) (3,516) Taxation -------- ----------- ----------- Transferred from Reserves (92) (3,424) (3,516) -------- ----------- ----------- Total Return per Ordinary share (0.6)p (20.5)p (21.1)p -------- ----------- ----------- TOTAL RETURN (COMPARATIVE) Six Months to 30th September 2003 Revenue Capital Total £'000 £'000 £'000 Income and Capital Profits Dividends and other income 419 - 419 Net profit on investments - 13,662 13,662 -------- ----------- ----------- Return before Expenses, Finance Costs 419 13,662 14,081 and Taxation Expenses Management fees (191) (123) (314) Other (expenses)/income (94) 16 (78) -------- ----------- ----------- Return before Finance Costs and 134 13,555 13,689 Taxation Finance Costs Interest payable (134) - (134) Exchange loss on currency transactions - (137) (137) -------- ----------- ----------- Return on ordinary activities before - 13,418 13,418 Taxation Taxation (20) 251 231 -------- ----------- ----------- Return to Equity Shareholders after (20) 13,669 13,649 Taxation -------- ----------- ----------- Transferred (from)/to Reserves (20) 13,669 13,649 -------- ----------- ----------- Total Return per Ordinary share (0.1)p 38.4p 38.3p -------- ----------- ----------- NOTES The figures shown above are unaudited. The revenue column above for each year represents the Revenue account of the Company. All revenue and capital items derive from continuing activities. Total Return per Ordinary share is calculated on a negative return to Ordinary shareholders of £3,516,000 (positive total return of £13,649,000) and a weighted average of Ordinary shares in issue during the six months to 30th September 2004 of 16,686,767 (35,631,575). CHAIRMAN'S STATEMENT The six months under review were particularly difficult for northern Asian markets. Worries over the Chinese authorities' ability to control the pace of growth triggered sharp falls in equities across the region, especially early in the period. Investors were also concerned about the potential for a global economic slowdown as the US Federal Reserve raised interest rates and crude oil prices rose sharply. Information technology sectors were worst hit, while rising interest rates influenced the performance of financial shares. The Japanese market was initially less affected, but it was increasingly depressed by signs of weakness in its domestic economy towards the end of the six months. Your Company's Net Asset Value per Ordinary Share fell by 11.8% to 157.3p, compared with a fall of 6.7% in its benchmark, the MSCI All Countries Asia Pacific (cum Japan) Index, in sterling terms. Because of a narrowing of the discount, the decline in the Company's share price was limited to 10.6%, falling to 147.5p at 30th September 2004. Together with the Managers, your Board has looked carefully at the reasons for this underperformance. Use of the Company's borrowing facility was partly to blame although, when markets were worst hit, the level of gearing had been reduced to around 6%. By the end of the period gearing rose to 11%, reflecting the Managers' increasing confidence in the markets. Japanese stock selection did not add value in the period when some industrial stocks were badly affected by concerns about a possible weakening of demand from China. Stock selection was also disappointing in some financial sectors. The underweight position in Australia was another negative factor as the Australian market performed relatively well during the period. Korean technology shares also disappointed. Since the end of the period, China's central bank has raised its key one-year lending rate by 0.27% to 5.58%. The timing of this rate rise surprised equity markets across the world, although its impact so far appears to be largely confined to resources sectors, which had previously been buoyed by China's robust demand and rising commodity prices worldwide. Asia Pacific markets remain volatile, reflecting concerns over the oil price and supply, the state of the US economy and geopolitical risks in the Middle East and elsewhere. However, your Board remains optimistic about the outlook for China and the long term prospects for Asia Pacific equities. As ever, stock selection will be the key to achieving superior returns. The Managers will be paying particular attention to this. BALANCE SHEET (unaudited) At At 30th September 31st March 2004 2004 £'000 £'000 Fixed Assets Listed investments at valuation 29,268 32,568 ---------- -------- Current Assets Debtors 989 179 Cash at bank 201 375 ----------- -------- 1,190 554 Creditors: Amounts falling due within one year (4,208) (3,356) ----------- ----------- Net Current Liabilities (3,018) (2,802) ----------- ----------- Net Assets 26,250 29,766 ----------- ----------- Capital and Reserves Called-up share capital 1,669 1,669 Capital redemption reserve 2,063 2,063 Special capital reserve 2,961 2,961 Capital reserve - realised 18,207 16,782 Capital reserve - unrealised 1,869 6,718 ----------- ----------- 26,769 30,193 ----------- ----------- Revenue reserve (519) (427) ----------- ----------- Equity Shareholders' Funds 26,250 29,766 ----------- ----------- Net Asset Value per Ordinary share 157.31p 178.38p ----------- ----------- NOTES The Net Asset Value per Ordinary share is calculated on attributable assets of £26,250,000 (£29,766,000) and 16,686,767 (16,686,767) Ordinary shares in issue at the period end. CASH FLOW STATEMENT Six Months to Six Months to 30th 30th September September 2003 2004 £'000 £'000 Revenue Activities Net dividends and interest received 256 549 from investments Interest received on deposits 4 10 Expenses paid (191) (273) -------- -------- 69 286 -------- -------- Taxation Recovered Income tax - 251 --------- --------- Servicing of Finance Interest paid (84) (153) --------- --------- Investment Activities Acquisitions of investments (50,692) (36,956) Disposals of investments 50,535 39,444 Indian balances excluded - (391) Capital income - 49 ------------ ------------ (157) 2,146 ------------ ------------ Financing Shares repurchased - (51) Decrease in borrowings - 1,150 ---------- ---------- - 1,099 ---------- ---------- Net Cash (Outflow)/Inflow (172) 3,629 --------- --------- Interim Report The Interim Report for the six months to 30th September 2004 will be posted to shareholders shortly. Copies will be available from the offices of Gartmore Investment Limited, Gartmore House, 8 Fenchurch Place, London EC3M 4PB. NOTE The above financial information is unaudited and does not constitute statutory accounts under the Companies Act 1985. The financial information for the year ended 31st March 2004 has been extracted from the latest published audited financial statements, which have been filed with the Registrar of Companies. The report of the Auditors on those accounts contained no qualification or statement under Section 237(2) or (3) of the Companies Act 1985. GARTMORE INVESTMENT LIMITED SECRETARIES 18th November 2004 END

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