Half-yearly Report

NEWS RELEASE 21 November 2012 WORLDWIDE HEALTHCARE TRUST PLC Unaudited Results for the six months ended 30 September 2012 Worldwide Healthcare Trust PLC today announces its half year results for the six months ended 30 September 2012. Performance Six months One year to 30 to 31 September March 2012 2012 Share price (total return)# +10.7% +18.2% Net asset value per share (total return)# +9.3% +14.4% Benchmark index (total return)* +7.4% +13.4% 30 Six September 31 March months % 2012 2012 Change Shareholders' funds Â£422.0m Â£391.8m +7.7 Net asset value per share - diluted (dilution for subscription shares) 919.0p 871.0p +5.5 Share price 860.5p 795.0p +8.2 Subscription share price 179.0p 133.5p +34.1 Discount of share price to diluted net asset value per share 6.4% 8.7% - Benchmark index* 96.80 90.14 +7.4 Gearing (net basis) 3.0% 16.4% - Ongoing charges (including performance fees crystalised during the period) 1.1% 1.3% - #Source - Morningstar. (Net asset value diluted for subscription shares and treasury shares). *With effect from 1 October 2010, the performance of the Company is measured against the MSCI World Health Care Index on a net total return, sterling adjusted basis. Prior to this date, performance was measured against the Datastream World Pharmaceutical & Biotechnology Index (total return, sterling adjusted). Historic data therefore consists of a blended figure containing both indices. Attached: Chairman's Statement Review of Investments Contribution by Investment - Excluding Options Income Statement Reconciliation of Movements in Shareholders' Funds Balance Sheet Cash Flow Statement Notes to the Financial Statements For further information please contact: Martin Smith, Worldwide Healthcare Trust PLC 020 3 008 4913 Mark Pope, Frostrow Capital LLP 020 3 008 4913 WORLDWIDE HEALTHCARE TRUST PLC Unaudited Results for the six months ended 30 September 2012 Chairman's Statement Performance I am pleased to report that the Company's net asset value total return of +9.3% comfortably outperformed the benchmark with the Company's share price performing even better, with a total return of +10.7%, over the same period. Healthcare stocks again demonstrated their defensive qualities during the period with the sector significantly outperforming the wider market. The MSCI World Index (measured in sterling terms on a total return basis) rose by 0.6% compared to a rise of 7.4% in the Company's benchmark, the MSCI World Healthcare Index (measured in sterling terms on a total return basis). The average discount of the Company's share price to the diluted net asset value per share during the period was 6.6%, broadly in line with the Board's stated target. Further information on investment performance and the outlook for the Company is given in the Review of Investments. Capital The Board continues to maintain its discount policy where it seeks to ensure the discount to the net asset value per share at which the Company's shares are quoted on the London Stock Exchange is no greater than 6% over the long-term, subject to adverse market conditions. In line with this policy 2,411,340 shares were repurchased for treasury during the period and to the date of this report, at a cost of Â£19.2m (including expenses). On 18 July 2012, a total of 2,941,518 shares held in treasury were cancelled. The Board has confirmed that any shares held in treasury will be cancelled on or as soon as practicable following the Annual General Meeting each year. During the period and to the date of this report a total of 4,671,640 subscription shares were exercised at an exercise price of 638p per share and 9,946 at an exercise price of 699p per share raising a total of c.Â£29.9m of additional funds for the Company. The next subscription date will be 31 January 2013 at a subscription price of 699p per share. The subscription shares will expire on 31 July 2014. Revenue and Dividends The revenue return for the period was Â£3,784,000 (six months ended 30 September 2011: return of Â£3,314,000). As mentioned in my statement at the yearÂend, the Board has decided that the Company will now declare two interim dividends per year rather than one. I am therefore pleased to report that a first interim dividend of 7.0p per share, for the year to 31 March 2013, has been declared which will be payable on 11 January 2013 to ordinary shareholders on the register of members on 14 December 2012. The associated ex-dividend date will be 12 December 2012. The Board reminds shareholders that it remains the Company's policy to pursue capital growth for shareholders and to pay dividends to the extent required to maintain investment trust status. The second interim dividend for the year to 31 March 2013 is expected to be announced in March 2013. The Board I am delighted to welcome Doug McCutcheon to the Board. Based in Canada, and a former head of UBS Healthcare Investment Banking for Europe, the Middle East and Africa, he has over 25 years' experience as an investment banker, 16 of which were spent specialising in the healthcare sector. Outlook At a time when there are concerns regarding the outlook for world stock markets, including the loss of economic momentum in the U.S., the continued eurozone debt crisis and the risk of a continuing slow-down within the Chinese economy, the attributes of the healthcare sector, which include high quality, defensive, and in some cases dividend yielding stocks, continue to offer particular appeal to investors. Our Investment Manager maintains its belief that the outlook for the healthcare sector is positive due to the underlying demographics of the sector combined with continued levels of merger and acquisition activity and new product development in an industry-friendly regulatory environment in the U.S. Your Board believes that we are well positioned to take advantage of this encouraging outlook for healthcare and that the long term investor in our sector will continue to be well rewarded. Martin Smith Chairman 21 November 2012 WORLDWIDE HEALTHCARE TRUST PLC Unaudited Results for the six months ended 30 September 2012 Review of Investments Performance For the period of 1 April to 30 September 2012, global equity markets demonstrated polarised behaviour with a significant and sharp downward move in April and in particular May, before rebounding in the second half of the period. This resulted in a return for the period of 0.6% as measured by the MSCI World Index (in sterling terms on a total return basis). Healthcare stocks showed their defensive qualities early in the period as their initial decline was more modest than the broader markets. Interestingly, despite a bounce in the markets, the second half of the period showed superior gains for healthcare stocks, a testament to the positive fundamentals of the group. The Company's benchmark, the MSCI World Healthcare Index (measured in sterling terms on a total return basis) posted a total return of +7.4% in the six month period ended 30 September 2012. The Company outperformed both the broader market and the healthcare specific index, with a share price total return of +10.7% and a net asset value total return of +9.3%. Key to outperformance in the period was primarily stock picking, as many sub-sectors advanced in the six months. Important contributions came from (in descending order) biotechnology, large capitalisation pharmaceuticals, global generic drug makers, Japanese pharmaceuticals, and healthcare service providers. Medical device stocks, life science tool stocks, and holdings in the emerging markets did not meaningfully contribute. Two sub-sectors were notable detractors, health maintenance organisations (HMO's) and specialty pharmaceuticals. Four of the top five contributors in the six month period have something in common: increasing expectations for new drug approval emanating from positive clinical data or affirmative regulatory action. Onyx Pharmaceuticals, a biotechnology company based in San Francisco, California, was the top contributor in the period. The company received two drug approvals to help bolster their oncology franchise. The first was Kyprolis (carfilzomib) for multiple myeloma. Because the U.S. Food and Drug Administration (FDA) had previously expressed reluctance to consider the drug due to the design of the clinical trials, the positive FDA advisory panel vote and the ultimate approval came as a surprise to the market. We expect Kyprolis to have a strong launch into the refractory myeloma market, with positive clinical trial data in earlier line use coming next year. Additionally, the company, with partner Bayer AG, received approval for Stivarga (regorafenib), a drug for refractory metastatic colorectal cancer. With the company's flagship product Nexavar (sorafenib) continuing to grow in approved indications (hepatocellular carcinoma and renal cell carcinoma), Kyprolis as a fully owned asset, and a royalty interest in Stivarga, we believe Onyx is also an attractive acquisition target. Gilead Sciences, was another top contributor in the period. The company has positioned itself as a global category leader in two infectious disease areas: human immunodeficiency virus (HIV) and hepatitis C virus (HCV). The latter commenced with their acquisition of Pharmasset in January 2012 and was confirmed with positive clinical results in HCV that exceeded expectations. Competition in the treatment of HCV diminished when a competitor's product was discontinued due to toxicity. We expect Gilead to come to market with a next wave of HCV therapies based on an all-oral regimen of drugs that for most patients will be a cure. In HIV, the company received approval for Stribild (elvitegravir, cobicistat, emtricitabine, and tenofovir), the company's novel "quad" pill. We expect the drug to be a dominant player in maintenance therapy for HIV. We continue to hold the stock because we believe the Stribild launch will go well and additional HCV data in November will be strong. Global pharmaceutical giant Merck posted strong gains this period. In part, the stock rose due to its laggard status in 2011 in which the company suffered a setback in its pipeline. However, enthusiasm over Merck's late stage pipeline was rekindled in 2012. With targets in osteoporosis, insomnia, cardiovascular, oncology, diabetes, and vaccines, the company is entering a new product phase that it has not seen in over a decade. Current revenues and earnings growth are underpinned by the mega-blockbuster diabetes treatment, Januvia (sitagliptin), a drug approaching WORLDWIDE HEALTHCARE TRUST PLC Unaudited Results for the six months ended 30 September 2012 Review of Investments (continued) U.S.$6 billion in global sales, still growing double digits, and likely to be the next U.S.$10 billion seller. Express Scripts is a full service pharmacy benefits management (PBM) and managed care company based in St. Louis, Missouri. The shares rebounded in the period for a host of reasons, perhaps most importantly was closing the acquisition of Medco Health Solutions (a rival PBM) with its attendant U.S.$1 billion plus of operating synergies. Express Scripts also experienced a strong selling season for 2013 contracts, in addition it resolved its dispute with Walgreens, one of largest dispensing pharmacy chains in the United States. The potential increase in generic usage in 2013, in particular multisource generics (which favourably impact margins), also created a tailwind for the stock. There could be potentially greater upside in earnings per share if management chooses to start buying back shares in 2013. Another new product story rounded out the top contributors this period. The share price of Swiss based bio-pharmaceutical company, Actelion increased due to positive phase III data for macitentan for pulmonary arterial hypertension (PAH) which has reinvigorated the company. Actelion's stock had previously declined due to concerns about the upcoming patent expiry of Tracleer (bosentan), the company's first generation drug for PAH. The success of macitentan extends the company's PAH franchise for another decade. We expect the positive momentum to continue. Detractors in the six month period were characterised two-fold: stock selection and a sub-sector that performed poorly. Dendreon was the single largest negative contributor. The launch of their novel immunotherapy treatment for prostate cancer, Provenge (sipuleucel-T), has disappointed and the company revised down guidance multiples. Adding to the woes, was the earlier (and better than expected) data for a competing product, Zytiga (abiraterone), from Johnson & Johnson. The market capitalisation of the company was cut by more than 50% during the period. The largest collective loss in the period came from the Company's exposure to HMO's. Despite extremely low valuations, the sub-sector fell as earnings came under unexpected pressure due to greater pricing competition and a cost trend that suddenly was no longer decelerating. Shares were also volatile into and out of the Supreme Court decision that upheld healthcare reform. Uncertainty over this event was high and some expected a moderation of some of its tenets. A "sell on the news" phenomenon impacted the sector. Overall, share prices of HMO's held by the Company, including Aetna, Wellpoint, and Humana, all fell in excess of 20% in the period. Another stock specific issue that negatively impacted performance was the specialty pharmaceutical company, Questcor Pharmaceuticals. In September, a broker's "short report" highlighting a reimbursement policy change at an insurance carrier for its key product Acthar (adrenocorticotropin ), triggered a sharp sell-off. The move was exacerbated only days later with the company's disclosure of a government investigation into marketing practices for Acthar. The share price dropped more than 60% altogether. Although a sell-off of this magnitude seems unwarranted, we have exited our Questcor position as the stock no longer trades on fundamentals. Sector Developments Politics continued to play a major theme in 2012. In June, the Supreme Court upheld the constitutionality of President Obama's Affordable Healthcare Act (ACA). Readers may recall that some ACA pundits argued that fining individuals for failing to buy insurance was not within the scope of Congress's taxing powers and thus unconstitutional. The narrow court decision upheld the law. While we believe this to be the ultimate outcome, there was a clear lack of consensus heading into the decision. This was an important overhang for healthcare sector that was removed. The focus in November clearly swung to the U.S. Presidential election. Despite a late run in the polls by Governor Mitt Romney, President Barack Obama was re-elected. While the popular vote was extremely close - within 2% - President Obama ran away with the electoral votes by a wide margin - nearly 20%. Importantly, the Republican Party maintained control of the House of Representatives while the Democrats maintained control of the Senate, actually increasing their number of seats. The net result was status quo, and we expect its impact to be minor for both the biotechnology WORLDWIDE HEALTHCARE TRUST PLC Unaudited Results for the six months ended 30 September 2012 Review of Investments (continued) and pharmaceutical industries. As for managed care, with ACA now a certainty, we look forward to the implementation details to be released in 2013. With near term uncertainty, the sector could be volatile. For the past two years, concerns over drug pricing in Europe has been on the rise. Undoubtedly, the economic crises across that continent have negatively impacted revenues and earnings for pharmaceutical companies exposed to the region. However, investor expectations were appropriately set and the impact has been in-line or better than expected. Thus, with only a few exceptions, global and European pharmaceutical company share prices have not suffered in response. Of course, our exposure to U.S. biotechnology companies is mostly immune to this risk. Specifically on the FDA and regulatory activities, we believe the recent trend continues to be industry-friendly. While difficult to paint with a broad brush, evidence of this observation outweighs the contrary. Cases in point include Onyx (Kyprolis and Stivarga), Medivation (Xtandi), and Novartis (Affinitor) who all received approval for their drugs much earlier than expected in each case. We would not expect this to change materially post the election. Thus, we expect this important tailwind to continue into the foreseeable future. Additional statistics on FDA approvals are positive. For the first 9 months of 2012, the FDA has approved 24 small molecule new chemical entities. This number already equals the number of approvals for all of 2011. A similar number of biologics have been approved year-to-date (3 vs. 4). Strategy Review A recurring theme in healthcare is certainly merger & acquisition (M&A) activity. The six month period bore witness to over 40 transactions across the global healthcare sector. Many were noteworthy, such as the joint acquisition of Amylin Pharmaceuticals by Bristol-Myers Squibb and AstraZeneca, two companies already partnered in the treatment of diabetes. AstraZeneca also conducted a bolt-on acquisition, Ardea Biosciences, obtaining a late stage compound for the treatment of gout. Fellow U.K. based large capitalisation pharmaceutical company, GlaxoSmithKline, acquired its biotechnology partner, Human Genome Sciences. One newly emergent theme is the pick-up in emerging market acquisitions, in particular South America. We have increased our research efforts in that geography. Of course, the Company's investment mandate remains widespread and includes all areas of healthcare, from pharmaceuticals to biotechnology and from medical devices to healthcare services. We believe this expanded mandate has demonstrated less volatility and additional opportunities to generate excess returns. A critical focus for 2012 has been the significant acceleration of clinical trial data read-outs across many therapeutic categories. Obesity, Alzheimer's, cardiovascular, hepatitis C, oncology, diabetes, rheumatology, and multiple sclerosis have all born witness to important advances in data or regulatory activity. While the conclusion may seem elementary, there is no more important fundamental underpinning value creation than new drugs in the biotechnology and pharmaceutical sectors. We expect this to continue into the second half of the Company's financial year. 2012 has represented an inflection point for the large capitalisation pharmaceutical group as growth beyond this year should accelerate, owing to the passing of the patent cliff and new product flow across the industry. Valuations have increased but remain undemanding in a historical context. Multiples could potentially expand appreciably in the near term. Nevertheless, we look to remain selective with stock picking within the group. Our focus remains on late stage pipeline catalysts and new product flow. In the specialty pharmaceutical sub-sector, we seek to buy high-growth names with attractive, growth-adjusted valuations. Alternatively, we seek to buy quality names with attractive valuations. For large capitalisation companies, we look for those that strive to maintain above average growth profiles and strong fundamentals yet reasonable valuations. For small and mid-capitalisation stocks, we are focusing on "hot" therapeutic classes (HCV, 2012 has largely been a peak year for U.S. based generic companies, so diversification could become increasingly important for growth WORLDWIDE HEALTHCARE TRUST PLC Unaudited Results for the six months ended 30 September 2012 Review of Investments (continued) in 2013 and beyond. Thus, in the U.S, the focus is on small/mid-sized generic players with emerging branded franchises. In Japan, the generic market continues its robust growth and secular long opportunities remain. In India, potentially attractive companies with geographic and product diversification are preferred. The medical device industry has historically underperformed due to multi-year headwinds. Innovation has been incremental, preventing the ability to command price increases. Weak utilisation trends have limited volumes. Thus, we remain cautious on the outlook here. We also remain cautious on managed care at the moment. Fundamentals and valuations remain attractive and the Supreme Court ruling has removed a critical overhang. Post the election, the focus will shift to long term themes like the post-reform environment, health insurance exchanges, Medicaid expansion, and dual eligible opportunities. The life sciences tools and diagnostics sectors are also exposed to the U.S. Presidential election and the ensuing legislative outcomes. The re-election of President Obama will likely be read positively by life sciences tools investors as expectation for a rollback of sequestration, specifically as it relates to the pending budget cuts in the NIH (National Institute of Health), would likely expand valuation multiples for the sector. Nonetheless, both parties have recently shown signs to resolve legislative differences in order to repeal the pending sequestration in 2013. Diagnostics remain a sector driven by new product cycles and catalysts and is less exposed to the concerning macroeconomic outlook of both U.S. and Europe. Outside of catalysts and product cycles, we expect 2013 to be a buoyant year for M&A in the diagnostics sector as larger conglomerates continue to be acquisitive in this fast growing sector. Samuel D. Isaly OrbiMed Capital LLC Investment Manager 21 November 2012 WORLDWIDE HEALTHCARE TRUST PLC Unaudited Results for the six months ended 30 September 2012 Contribution by Investment - Excluding Derivatives Top five contributors to and detractors from net asset value performance over 6 months to 30 September 2012 Contribution for Contribution the six months to per 30 September 2012 share (p)* Top Five Contributors Â£'000 Onyx Pharmaceuticals 7,259 16.40 Gilead Sciences 4,621 10.44 Merck & Co 3,363 7.60 Express Scripts 2,598 5.87 Actelion 2,423 5.48 20,264 45.79 Top Five Detractors Dendreon (Including Dendreon 4.75% convertible bond) (3,201) (7.23) Wellpoint (2,323) (5.25) Aetna (1,918) (4.33) Humana (1,843) (4.16) Questcor (1,750) (3.96) (11,035) (24.93) *based on the weighted average number of shares in issue during the six months ended 30 September 2012 (44,257,027) Portfolio as at 30 September 2012 Market % of Investments Country value Â£'000 investments Roche Switzerland 37,911 8.4 Merck & Co. USA 23,623 5.2 Pfizer USA 20,074 4.4 Sanofi-Aventis France 18,502 4.1 Gilead Sciences USA 18,071 4.0 Abbott Laboratories USA 17,912 4.0 Mitsubishi Tanabe Japan 16,648 3.7 Pharma Onyx USA 11,512 2.5 Pharmaceuticals Express Scripts USA 10,433 2.3 Bristol-Myers USA 9,919 2.2 Squibb Top 10 Investments 184,605 40.8 HCA USA 9,807 2.2 GlaxoSmithKline UK 9,778 2.2 Life Technologies USA 9,075 2.0 Watson USA 8,332 1.8 Pharmaceuticals Biogen Idec USA 8,130 1.8 Astellas Pharma Japan 8,028 1.8 Novartis Switzerland 7,964 1.8 Incyte Corp+ USA 7,803 1.7 Sawai Japan 7,572 1.7 Pharmaceutical Towa Pharmaceutical Japan 7,465 1.7 Top 20 Investments 268,559 59.5 Ono Pharmaceutical Japan 7,463 1.7 Wellpoint USA 7,273 1.6 Illumina USA 7,165 1.6 Warner Chilcott Ireland 6,271 1.4 Actelion Switzerland 6,242 1.4 Shandong Weigao China 6,163 1.4 Group Nichi-Iko Japan 6,052 1.3 Pharmaceutical UnitedHealth USA 5,941 1.3 Zimmer USA 5,441 1.2 Aetna USA 4,894 1.1 Top 30 Investments 331,464 73.5 + includes Incyte 4.75% 01/10/15 (Conv) equating to 1.5% of investments ÃŽâ€º includes Dendreon 2.875% 15/01/16 (Conv) equating to 0.6% of investments # includes Volcano 2.875% 01/09/15 (Conv) equating to 0.2% of investments Portfolio (continued) as at 30 September 2012 Market % of Investments Country value Â£'000 investments Orasure Technologies USA 4,885 1.1 Fluidigm USA 4,666 1.0 Affymax USA 4,565 1.0 Biosensors International 4,541 1.0 Singapore Humana USA 4,501 1.0 Allergan USA 4,480 1.0 Dendreon ÃŽâ€º USA 4,393 1.0 Volcano # USA 4,393 1.0 Baxter International USA 4,328 1.0 Exact Sciences USA 4,258 0.9 Top 40 Investments 376,474 83.5 BioMarin Pharmaceutical USA 4,192 0.9 Impax Laboratories USA 4,178 0.9 VIVUS USA 4,009 0.9 NPS Pharmaceuticals USA 3,426 0.8 China Shineway Pharmaceutical 2,966 0.7 China 3SBio China 2,927 0.6 Elan 8.75% 15/10/16 Ireland 2,688 0.6 Affymetrix 4% 01/07/19 USA 2,482 0.5 Sequenom USA 2,372 0.5 Mako USA 2,331 0.5 Top 50 Investments 408,045 90.4 Given Imaging Israel 2,029 0.4 Medivation USA 1,942 0.4 Neurocrine Biosciences USA 1,937 0.4 Lyrica Royalty 11% 01/05/19 USA 1,849 0.4 Thermo Fisher Scientific USA 1,745 0.4 Immunogen USA 1,716 0.4 IHH Healthcare Malaysia 405 0.1 Total equities and fixed interest 419,668 92.9 investments Options -(Put & Call) 416 0.1 Derivatives - (OTC Swaps) 31,720 7.0 Total investments 451,804 100.0 + includes Incyte 4.75% 01/10/15 (Conv) equating to 1.5% of investments ÃŽâ€º includes Dendreon 2.875% 15/01/16 (Conv) equating to 0.6% of investments # includes Volcano 2.875% 01/09/15 (Conv) equating to 0.2% of investments WORLDWIDE HEALTHCARE TRUST PLC Unaudited Results for the six months ended 30 September 2012 Income Statement for the six months ended 30 September 2012 (Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 30 September 2012 30 September 2011 31 March 2012 Revenue Capital Revenue Capital Revenue Capital Return Return Total Return Return Total Return Return Total Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Gains/(losses) on investments held at fair value through profit or loss - 25,817 25,817 - (6,980) (6,980) - 52,193 52,193 Exchange losses on currency balances - (587) (587) - (2,164) (2,164) - (535) (535) Income from investments held at fair value through profit or loss (note 2) 4,696 - 4,696 4,274 - 4,274 11,653 - 11,653 Investment management, management and performance fees (note 3) (90) (1,568) (1,658) (78) (2,398) (2,476) (162) (5,953) (6,115) Other expenses (312) - (312) (262) - (262) (548) - (548) Net return/(loss) before finance charges and taxation 4,294 23,662 27,956 3,934 (11,542) (7,608) 10,943 45,705 56,648 Finance charges (7) (130) (137) (9) (166) (175) (14) (272) (286) Net return/(loss) before taxation 4,287 23,532 27,819 3,925 (11,708) (7,783) 10,929 45,433 56,362 Taxation on ordinary activities (503) 47 (456) (611) 235 (376) (1,456) 406 (1,050) Net return/(loss) after taxation 3,784 23,579 27,363 3,314 (11,473) (8,159) 9,473 45,839 55,312 Return/(loss) per share - basic (note 4) 8.6p 53.3p 61.9p 7.7p (26.6)p (18.9)p 21.8p 105.7p 127.5p Return/(loss) per share - diluted (note 4) 8.5p 52.9p 61.4p 7.5p (25.9)p (18.4)p 21.4p 103.7p 125.1p The "Total" column of this statement is the Income Statement of the Company. The "Revenue" and "Capital" columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies. All revenue and capital items in the above statement derive from continuing operations. The Company has no recognised gains and losses other than those shown above and therefore no separate statement of total recognised gains and losses has been presented. No operations were acquired or discontinued during the period. WORLDWIDE HEALTHCARE TRUST PLC Unaudited Results for the six months ended 30 September 2012 Reconciliation of Movements in Shareholders' Funds (Unaudited) Ordinary Subscription Share Capital Capital Revenue Six months share share premium reserve redemption reserve Total ended 30 capital capital account reserve September 2012 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 At 31 March 10,997 71 186,300 174,230 7,068 13,131 391,797 2012 Net return from ordinary activities after taxation - - - 23,579 - 3,784 27,363 Dividend paid in respect of year ended 31 March 2012 - - - - - (7,705) (7,705) Subscription shares exercised for ordinary shares 1,168 (47) 28,637 47 - - 29,805 Shares purchased to be held in treasury and treasury shares cancelled (735) - - (19,238) 735 - (19,238) At 30 September 11,430 24 214,937 178,618 7,803 9,210 422,022 2012 (Unaudited) Ordinary Subscription Share Capital Capital Revenue Six months share share premium reserve redemption reserve Total ended 30 capital capital account reserve September 2011 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 At 31 March 10,875 82 181,395 135,319 6,978 10,132 344,781 2011 Net (loss)/return from ordinary activities after taxation - - - (11,473) - 3,314 (8,159) Dividend paid in respect of year ended 31 March 2011 - - - - - (6,473) (6,473) Subscription shares exercised for ordinary shares 93 (4) 2,267 4 - - 2,360 Shares purchased to be held in treasury and treasury shares cancelled (90) - - (174) 90 - (174) At 30 September 10,878 78 183,662 123,676 7,068 6,973 332,335 2011 Ordinary Subscription Share Capital Capital Revenue (Audited) share share premium reserve redemption reserve Total Six months ended 30 capital capital account reserve September 2011 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 At 31 March 2011 10,875 82 181,395 135,319 6,978 10,132 344,781 Net return from ordinary activities after taxation - - - 45,839 - 9,473 55,312 Dividend paid in respect of ended 31 March 2011 year - - - - - (6,474) (6,474) Subscription shares exercised for ordinary shares 212 (9) 5,199 9 - - 5,411 Shares purchased to be held in treasury and treasury shares cancelled (90) - - (6,939) 90 - (6,939) Subscription (2) (294) 2 - - (294) shares repurchased for cancellation - At 31 March 2012 10,997 71 186,300 174,230 7,068 13,131 391,797 WORLDWIDE HEALTHCARE TRUST PLC Unaudited Results for the six months ended 30 September 2012 Balance Sheet as at 30 September 2012 (Unaudited) (Unaudited) (Audited) 30 30 31 September September March 2012 2011 2012 Â£'000 Â£'000 Â£'000 Fixed assets Investments held at fair value through profit or loss 419,668 380,978 454,301 Derivative - OTC swaps 31,720 7,141 13,691 451,388 388,119 467,992 Current assets Debtors 3,587 6,041 2,512 Derivative - financial 416 - 940 instruments 4,003 6,041 3,452 Current liabilities Creditors: amounts falling (20,845) (10,231) (15,288) due within one year Derivative - financial - (424) - instruments Bank overdraft (12,524) (51,170) (64,359) (33,369) (61,825) (79,647) Net current liabilities (29,366) (55,784) (76,195) Total net assets 422,022 332,335 391,797 Capital and reserves Ordinary share capital 11,430 10,878 10,997 Subscription share capital 24 78 71 Share premium account 214,937 183,662 186,300 Capital reserve 178,618 123,676 174,230 Capital redemption reserve 7,803 7,068 7,068 Revenue reserve 9,210 6,973 13,131 Total shareholders' funds 422,022 332,335 391,797 Net asset value per share 930.8p 764.2p 909.4p - basic (note 5) Net asset value per share - diluted for subscription shares (note 5) 919.0p 745.0p 871.0p Net asset value per share - fully diluted for subscription shares and treasury shares (note 5) 918.5p 745.0p 869.7p WORLDWIDE HEALTHCARE TRUST PLC Unaudited Results for the six months ended 30 September 2012 Cash Flow Statement for the six months ended 30 September 2012 (Unaudited) (Unaudited) (Audited) Six months Six months Year ended 30 ended 30 ended 31 September September March 2012 2011 2012 Â£'000 Â£'000 Â£'000 Net cash inflow/(outflow) from operating activities 1,628 (654) 4,112 Servicing of finance Interest paid (137) (175) (286) Taxation Taxation suffered - (69) (422) Financial investment Purchases of investments (169,977) (171,355) (301,803) and derivatives Sales of investments and 218,046 173,419 288,756 derivatives Net cash inflow/(outflow) from financial investment 48,069 2,064 (13,047) Equity dividends paid (7,705) (6,473) (6,474) Net cash inflow/(outflow) 41,855 (5,307) (16,117) before financing Financing Repurchase of own shares (19,238) (174) (7,233) Subscription shares 29,805 2,360 5,411 exercised for ordinary shares Net cash inflow/(outflow) 10,567 2,186 (1,822) from financing Increase/(decrease) in 52,422 (3,121) (17,939) cash Reconciliation of net cash flow movements to net debt Increase/(decrease) in net debt resulting from cash flows 52,422 (3,121) (17,939) Exchange movements (587) (2,164) (535) Movement in net debt in 51,835 (5,285) (18,474) the period Net debt at beginning of (64,359) (45,885) (45,885) period Net debt at period end (12,524) (51,170) (64,359) WORLDWIDE HEALTHCARE TRUST PLC Unaudited Results for the six months ended 30 September 2012 Notes to the Financial Statements 1. ACCOUNTING POLICIES The condensed financial statements have been prepared under the historical cost convention, modified to include the valuation of investments at fair value and in accordance with United Kingdom Generally Accepted Accounting Practice and with the Statement of Recommended Practice `Financial Statements of Investment Trust Companies and Venture Capital Trusts' dated January 2009. All of the Company's operations are of a continuing nature. The same accounting policies used for the year ended 31 March 2012 have been applied. 2. INCOME (Unaudited) (Unaudited) (Audited) Six months Six months ended ended Year ended 30 September 30 September 31 March 2012 2011 2012 Â£'000 Â£'000 Â£'000 Investment income 4,694 4,273 11,651 Interest receivable 2 1 2 Total 4,696 4,274 11,653 3. INVESTMENT MANAGEMENT, MANAGEMENT AND PERFORMANCE FEES (Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 30 September 2012 30 September 2011 31 March 2012 Revenue Capital Total Revenue Capital Total Revenue Capital Total Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Investment management fee 66 1,267 1,333 57 1,081 1,138 119 2,251 2,370 Management fee 24 450 474 21 408 429 43 817 860 Performance fee (written back)/charged in the period/year* - (149) (149) - 909 909 - 2,885 2,885 90 1,568 1,658 78 2,398 2,476 162 5,953 6,115 *In accordance with the performance fee arrangements described on page 21 of the 2012 annual report, a performance fee of Â£1,452,000 was accrued at 30 September 2012 (2011: Â£nil). During the period, Â£375,000 was paid which related to a performance fee which crystallised and became payable at 30 June 2012. 4.RETURN/(LOSS) PER SHARE (Unaudited) (Unaudited) (Audited) Six months Six months ended ended Year ended 30 September 30 September 31 March 2012 2011 2012 Â£'000 Â£'000 Â£'000 The return/(loss) per share is based on the following figures: Revenue return 3,784 3,314 9,473 Capital return/(loss) 23,579 (11,473) 45,839 Total return/(loss) 27,363 (8,159) 55,312 Weighted average number of shares in issue for the period - basic 44,257,027 43,265,414 43,362,962 Revenue return per 8.6p 7.7p 21.8p share Capital return/(loss) 53.3p (26.6)p 105.7p per share Total return/(loss) 61.9p (18.9)p 127.5p per share Weighted average number of shares in issue for the period - diluted 44,585,606 44,253,028 44,223,263 Revenue return per 8.5p 7.5p 21.4p share Capital return/(loss) 52.9p (25.9)p 103.7p per share Total return/(loss) 61.4p (18.4)p 125.1p per share - diluted WORLDWIDE HEALTHCARE TRUST PLC Unaudited Results for the six months ended 30 September 2012 Notes to the Financial Statements (continued) 5. NET ASSET VALUE PER SHARE The net asset value per share is based on the assets attributable to equity shareholders of Â£422,022,000 (30 September 2011: Â£332,335,000: 31 March 2012: Â£391,797,000) and on the number of shares in issue at the period end of 45,341,464 (excluding 378,408 shares held in treasury) (30 September 2011: 43,486,450: 31 March 2012: 43,081,164). The diluted net asset value per share assumes that the 2,433,208 Subscription shares were exercised at 699p resulting in assets attributable to ordinary shareholders of Â£439,030,000 and on 47,774,672 shares (30 September 2011: Â£382,235,000 and 51,307,723 shares: 31 March 2012: Â£437,126,000 and 50,186,012 shares). The fully diluted net asset value per share for subscription shares and treasury shares assumes that 2,433,208 subscription shares were exercised at 699p and 378,408 treasury shares were sold back to the market at 860.5p (the prevailing share price as at 30 September 2012) resulting in assets attributable to ordinary shareholders of Â£442,286,000 (30 September 2011: Â£382,408,000: 31 March 2012: Â£444,349,000) and on 48,153,080 shares (30 September 2011: 51,332,723 shares: 31 March 2012: 51,094,598 shares). 6. TRANSACTION COSTS Purchase transaction costs for the six months ended 30 September 2012 were Â£463,000 (six months ended 30 September 2011: Â£282,000; year ended 31 March 2012: Â£575,000). Sales transaction costs for the six months ended 30 September 2012 were Â£406,000 (six months ended 30 September 2011: Â£291,000; year ended 31 March 2012: Â£504,000). These costs comprise mainly commission. 7. SUBSCRIPTION SHARES During the period ended 30 September 2012 a total of 4,671,640 subscription shares were exercised for a total consideration of Â£29,805,000. At the period end the Company's share capital included 2,433,208 subscription shares, which are currently exercisable at 699p per share. 8. PUBLICATION OF NON STATUTORY ACCOUNTS The financial information contained in this half year report does not constitute statutory accounts as defined in sections 434-436 of the Companies Act 2006. The financial information for the half years ended 30 September 2012 and 30 September 2011 has not been audited, or reviewed by the auditors. The information for the year ended 31 March 2012 has been extracted from the latest published audited financial statements. The audited financial statements for the year ended 31 March 2012 have been filed with the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying the report, and did not contain statements under section 498 of the Companies Act 2006. Earnings for the first six months should not be taken as a guide to the results for the full year. Interim Management Report PRINCIPAL RISKS AND UNCERTAINTIES The Companyâ€™s principal risks are as follows and are described in more detail under the heading Principal Risks and their Mitigation in the Companyâ€™s Annual Report for the year ended 31 March 2012: Investment Activity and Strategy; Shareholder Relations and Corporate Governance; Operational; Financial; and Accounting, Legal and Regulatory. The Company's principal risks and uncertainties have not changed materially since the date of that report and are not expected to change materially for the remaining six months of the Company's financial year. RELATED PARTY TRANSACTIONS During the first six months of the current financial year no material transactions with related parties have taken place which have affected the financial position or the performance of the Company during the period. DIRECTORSâ€™ RESPONSIBILITIES The Board of Directors confirms that, to the bestof its knowledge: (i) the condensed set of financial statements contained within the Half Year Report has been prepared in accordance with applicable accounting standards; and (ii) the interim management report includes a fair review of the information required by 4.2.7R and 4.2.8R of the UK Listing Authority and Transparency Rules. The Half Year Report has not been reviewed or audited by the Companyâ€™s auditors The Half Year Report was approved by the Board on 21 November 2012 and the above responsibility statement was signed on its behalf by: Martin Smith Chairman Frostrow Capital LLP Company Secretary 21 November 2012

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