Interim Results

British Assets Trust PLC
13 May 2002



BRITISH ASSETS TRUST PLC

To:          RNS

From:        British Assets Trust plc

Date:        13 May 2002



Interim Results in respect of the six months ended 31 March 2002

•      Share price increased by 19.8%


        •           Net asset value total return of 10.1% compared with a return
        of 11.6% for the benchmark index

•      Won Investment Week Best Global Trust of the Year award 2001

Total Return

The Company's net asset value total return, that is with net dividends
re-invested, was 10.1 per cent over the six month period to 31 March 2002. This
compared with a return of 11.6 per cent for the composite benchmark index of 75
per cent FTSE All-Share Index and 25 per cent FTSE World (ex UK) Index. Over the
five years to 31 March 2002, the Company's net asset value total return was 43.1
per cent compared with a return of 42.0 per cent from the benchmark index.


The Company's overweight exposure to North America and the increase in gearing
have been helpful to returns in the past six months, as markets have recovered
following the tragic events of 11 September last year. Having contributed
significantly to the Company's outperformance to its benchmark in the year ended
30 September 2001, the UK portfolio underperformed during the period. The
relatively defensive portfolio failed to benefit from the rebound in growth
stocks, most notably in October and November last year.


During the period the Company's share price increased by 19.8 per cent and the
discount of share price to net asset value narrowed from 15.0 per cent, as at 30
September 2001, to 5.8 per cent at the end of the period. This was lower than
the average discount for similar investment trusts.

As an acknowledgement of the Company's performance record and investment
approach, it won the Investment Week Best Global Trust of the Year award in
November 2001.

Activity

During the period the Company invested £35 million of its liquidity in a
corporate bond portfolio which, at the end of the period, represented 5.1 per
cent of total assets. The corporate bond portfolio is designed to increase the
Company's investment income, assisting it in meeting its dividend objective,
whilst also contributing to the capital return. The Company has also continued
to use cash to add to its exposure in the UK where it remains underweight in
terms of total assets, facilitating a gradual shift from defensive stocks in
favour of companies which will benefit from a recovery in global demand.



Earnings and Dividends

Earnings per share for the six months to 31 March 2002 were 1.88p (2001 -
2.78p). A first interim dividend of 1.304p per Ordinary Share (2001 - 1.304p)
was paid on 12 April 2002 and the Board has declared a second interim dividend
of 1.304p per Ordinary Share (2001 - 1.304p), which will be paid on 12 July 2002
to shareholders on the register on 14 June 2002.


As a result of the conversion of Growth Shares to Ordinary Shares on 30
September 2001 and the exercise of Warrants during the year ended on that date,
there is now a much larger number of Ordinary Shares in issue. It is therefore
unlikely that the annual dividend cost will be covered by earnings for some
years to come, although the Company has accumulated sufficient revenue reserves
over the last few years as a cushion against this event.


As stated in the 2001 Annual Report, due to the current uncertain economic
conditions and the payment of the special dividend in October 2001, it is
unlikely that there will be an increase in dividend payments per share for the
year ended 30 September 2002.



Marketing

The Company's retail initiatives have continued to create demand directly
through its ZeroCharge TM Individual Savings Accounts (Isas) and Investment
Plans. Despite the continuing difficult market conditions that prevailed during
the period, demand for the plans in the four month Isa season to 30 April 2002
was 70 per cent higher than for the same period last year. This compares to a
general industry belief that the maket for Isas during this period was 40-50%
lower.


The Board will continue to place emphasis on marketing the Company's shares to
IFA clients and direct to private investors.



Gearing

As stated above, the Company's level of liquidity, which arose from the issue of
the £60 million 30 year Bonds in September 2001, was reduced during the period.
Net gearing at 31 March 2002 was 25 per cent and, with this in place, the
Managers believe the Company is well positioned to take advantage of growth in
equity values over the longer term.



Outlook

The economic and political backdrop for global stockmarkets remains uncertain as
the focus shifts from recovery to the timing of interest rates rises, the
sustainability of consumer spending and inflation fears, given the recent
increase in oil prices. The Managers remain of the view that there will be a
moderate recovery in global growth this year with modest inflation but some
tightening of interest rates by the world's leading central banks. They continue
to expect equities to outperform bonds and look for earnings growth to surprise
on the upside.



For further information please contact:

Julie Dent 0131 465 1000

Friends Ivory and Sime plc







Unaudited Statement of Total Return (Incorporating the revenue account)

for the 6 Months ended 31 March 2002
                                                                      2002          2002             2002
                                                                   Revenue       Capital            Total
                                                                     £'000         £'000            £'000


Gains on investments                                                     -        45,447           45,447
Exchange differences                                                     -         1,813            1,813
Income                                                               8,578             -            8,578
Investment management fee:
Basic                                                                (286)         (858)          (1,144)
Performance                                                              -         (766)            (766)
Other expenses                                                       (335)             -            (335)
                                                                 ---------     ---------        ---------
Net return before finance costs & taxation                           7,957        45,636           53,593

Finance Costs:
6.625% Bonds 2008                                                    (505)       (1,514)          (2,019)
6.25% Bonds 2031                                                     (474)       (1,422)          (1,896)
Other                                                                 (36)         (108)            (144)
                                                                 ---------     ---------        ---------
Return on ordinary activities before tax                             6,942        42,592           49,534

Tax on ordinary activities                                           (295)           195            (100)
                                                                 ---------     ---------        ---------
Return attributable to equity shareholders                           6,647        42,787           49,434

Dividends in respect of equity shares                              (9,193)             -          (9,193)
                                                                 ---------     ---------        ---------
Transfer (from) / to reserves                                      (2,546)        42,787           40,241
                                                                 ---------     ---------        ---------


Return per Ordinary Share (p):

Basic                                                                 1.88         12.11            13.99
Diluted (FRS 14)                                                         -             -                -

Return per Growth Share (p)

Basic                                                                    -             -                -
Diluted (FRS 14)                                                         -             -                -



Unaudited Statement of Total Return (Incorporating the revenue account)

for the 6 Months ended 31 March 2001
                                                                    2001             2001            2001
                                                                   Revenue       Capital            Total
                                                                     £'000         £'000            £'000


Losses on investments                                                    -      (73,601)         (73,601)
Warrants purchased for cancellation                                      -             -                -
Exchange differences                                                     -         2,742            2,742
Equities Index Unsecured Loan Stock                                      -         1,936            1,936
Income                                                              10,821             -           10,821
Investment management fee:
Basic                                                                (435)         (653)          (1,088)
Performance                                                              -         (394)            (394)
Other expenses                                                       (383)             -            (383)
                                                                 ---------     ---------        ---------

Net return before finance costs & taxation                          10,003      (69,970)         (59,967)

Finance Costs:
EIULS                                                                (209)             -            (209)
6.625% Bonds 2008                                                    (807)       (1,212)          (2,019)
Other                                                                 (86)         (128)            (214)
                                                                 ---------     ---------        ---------
Return on ordinary activities before tax                             8,901      (71,310)         (62,409)

Tax on ordinary activities                                           (435)           326            (109)
                                                                 ---------     ---------        ---------
Return attributable to equity shareholders                           8,466      (70,984)         (62,518)

Dividends in respect of equity shares                              (7,884)             -          (7,884)
                                                                 ---------     ---------        ---------
Transfer to/(from) reserves                                            582      (70,984)         (70,402)
                                                                 ---------     ---------        ---------


Return per Ordinary Share (p):

Basic                                                                 2.78       (20.00)          (17.22)
Diluted (FRS 14)                                                      2.76       (19.86)          (17.10)

Return per Growth Share (p):

Basic                                                                    -       (20.00)          (20.00)
Diluted (FRS 14)                                                         -       (19.86)          (19.86)







Statement of Total Return (Incorporating the revenue account)

for the Year ended 30 September 2001
                                                                                 2001              2001            2001
                                                                              Revenue           Capital           Total
                                                                                £'000             £'000           £'000


Losses on investments                                                               -         (142,407)       (142,407)
Warrants purchased for cancellation                                                 -           (1,774)         (1,774)
Exchange differences                                                                -             2,453           2,453
Equities Index Unsecured Loan Stock                                                 -             4,766           4,766
Income                                                                         26,753                 -          26,753
Investment management fee:
Basic                                                                           (832)           (1,249)         (2,081)
Performance                                                                         -           (1,338)         (1,338)
Other expenses                                                                (1,095)                 -         (1,095)
                                                                             ________          ________        ________
Net return before finance costs & taxation                                     24,826         (139,549)       (114,723)

Finance Costs:
EIULS                                                                           (413)                 -           (413)
6.625% Bonds 2008                                                             (1,615)           (2,423)         (4,038)
6.25% Bonds 2031                                                                 (84)             (126)           (210)
Other                                                                           (157)             (235)           (392)
                                                                             ________          ________        ________
Return on ordinary activities before tax                                       22,557         (142,333)       (119,776)

Tax on ordinary activities                                                      (897)               655           (242)
                                                                             ________          ________        ________
Return attributable to equity shareholders                                     21,660         (141,678)       (120,018)

Dividends in respect of equity shares                                        (17,666)                 -        (17,666)
                                                                             ________          ________        ________
Transfer to/(from) reserves                                                     3,994         (141,678)       (137,684)
                                                                             ________          ________        ________


Return per Ordinary Share (p):

Basic                                                                            7.12           (40.16)         (33.04)
Diluted (FRS 14)                                                                 7.08           (39.93)         (32.85)


Return per Growth Share (p):

Basic                                                                               -                 -               -
Diluted (FRS 14)                                                                    -                 -               -









Unaudited Balance Sheet                                                         As At              As At           As At

                                                                             31.03.02           30.09.01        31.03.01
                                                                                £'000              £'000           £'000
Fixed Assets
Investments                                                                   663,488            572,445         664,756

Current Assets
Debtors                                                                         6,047              7,665           2,766
Cash at bank and on deposit                                                    20,304             68,765             712
                                                                            ---------          ---------       ---------
                                                                               26,351             76,430           3,478
Creditors:
Amounts falling due within one year                                          (15,817)           (13,361)        (10,915)
Yen Loan 2003                                                                (22,519)                  -               -
                                                                           ----------         ----------      ----------
Net Current (Liabilities) / Assets                                           (11,985)             63,069         (7,437)
                                                                            ---------          ---------       ---------
Total Assets less Current Liabilities                                         651,503            635,514         657,319


Creditors: amounts falling due after more than one
year:
6.625% Bonds 2008                                                            (59,621)           (59,590)        (59,558)
6.25% Bonds 2031                                                             (59,223)           (59,232)               -
Equities Index Unsecured Loan Stock 2005                                            -                  -        (16,503)
Yen Loan 2003                                                                       -           (24,274)        (23,822)
                                                                           ----------         ----------      ----------
                                                                            (118,844)          (143,096)        (99,883)

                                                                            ---------          ---------       ---------
Total Shareholders' Funds                                                     532,659            492,418         557,436
                                                                            ---------          ---------       ---------
Equity Shareholders' Funds                                                    532,659            492,418         557,436
                                                                            ---------          ---------       ---------

Net Asset Value per Share:
                                                                               
        Basic                                                                  150.7p             139.4p          158.9p

     Fully Diluted                                                                  -                  -          157.8p
     Diluted - (FRS 14)                                                             -                  -          158.0p




Summarised Unaudited Statement of Cash Flows
                                                                   Six months to       Six months to             Year to
                                                                        31 March            31 March        30 September
                                                                            2002                2001                2001
                                                                           £'000               £'000               £'000

Net cash inflow from operating activities                                  3,978               8,489              21,253
Servicing of finance                                                     (4,007)             (2,359)             (4,865)
Taxation                                                                      60                  10                  65
Financial investments                                                   (41,441)             (1,707)              20,601
Equity dividends paid                                                    (9,759)             (8,243)            (16,170)

Net cash (outflow)/inflow before financing                              (51,169)             (3,810)              20,884
Financing                                                                  2,650            (14,412)              28,784

(Decrease)/increase in cash                                             (48,519)            (18,222)              49,668

Reconciliation of net cash flow to movement in net debt

(Decrease)/increase in cash                                             (48,519)            (18,222)              49,668
6.25% Bonds 2031 issued                                                        -                   -            (59,231)
Equities Index Unsecured Loan Stock purchased for
cancellation                                                                   -                  64              13,737
Currency gains/(losses)                                                       58                (37)                 126
Decrease in Equities Index Unsecured Loan Stock liability                      -               1,936               4,766
Decrease in yen loan liability                                             1,755               2,779               2,327
Increase in 6.625% Bonds 2008 Liability                                     (31)                (31)                (63)
Decrease/(increase) in 6.25% Bonds 2031 Liability                              9                   -                 (1)
Movement in net debt                                                    (46,728)            (13,511)              11,329
Net debt at 1 October                                                   (74,331)            (85,660)            (85,660)

Net debt at 31 March/30 September                                      (121,059)            (99,171)            (74,331)



Reconciliation of net return before finance costs and              Six months to       Six months to             Year to
taxation to net cash
                                                                        31 March            31 March        30 September
Inflow from operating activities                                            2002                2001                2001
                                                                           £'000               £'000               £'000

Net return before finance costs and taxation                               7,957              10,003              24,826
Investment Management fee charged to capital                             (1,624)             (1,047)             (2,587)
Tax on investment income                                                   (114)               (125)               (335)
Changes in working capital and other non-cash items                      (2,241)               (342)               (651)

Net cash inflow from operating activities                                  3,978               8,489              21,253





Notes:


 1. The unaudited interim results have been prepared on the basis of the
    accounting policies set out in the statutory accounts of the Company for the
    year ended 30 September 2001.


 2. Earnings for the first six months should not be taken as a guide to the
    results of the full year.


 3. Basic return per Ordinary Share is based on 353,362,282 ordinary shares in
    issue (2001 - a weighted average of 304,361,713).


 4. The second interim dividend of 1.304p per Ordinary Share will be paid on 12
    July 2002 to shareholders on the register on 14 June 2002.


    The last date for receipt of mandate instructions for those shareholders who
    wish to join the Dividend Reinvestment Plan is 21 June 2002.
 5. There were 353,362,282 Ordinary Shares in issue at 31 March 2002 (2001 -
    303,975,000 Ordinary Shares and 46,770,630 Growth Shares)

6.     The following table provides a breakdown of the contributions to the
total return:

     Attribution of Return                          %

     Market/benchmark return                    11.6

     Asset allocation                             0.2

     Stock selection - UK equities               -2.1

                     - Overseas equities         -0.8

                     - Bonds                      0.2

     Gearing                                      1.6

     Expenses                                    -0.4


     British Assets Trust total return           10.1


7.     The Company's geographic exposure as a percentage of shareholders'
    funds at 31 March 2002 was as follows (comparative figures are for 30
    September 2001).

                                                     31 March 2002            30 September 2001

UK                                                            82.8                         82.3
North America                                                 23.3                         22.6
Europe                                                         7.6                          7.5
Japan                                                          2.5                          2.5
Pacific (ex Japan)                                             1.9                          1.4
Corporate Bonds                                                6.4                            -
Fixed Interest/ Liquidity                                   (24.5)                       (16.3)
                                                              ____                         ____
                                                             100.0                        100.0







 8. The basic investment management fee and finance costs have been allocated 25%
    to revenue, and 75% to capital (2001 - 40%to revenue, 60% to capital).


 9. These are not statutory accounts in terms of Section 240 of the Companies Act
    1985 and are unaudited. Statutory accounts for the year to 30 September
    2001, which received an unqualified audit report, have been lodged with the
    Registrar of Companies. No statutory accounts in respect of any period after
    30 September 2001 have been reported on by the Company's auditors or
    delivered to the Registrar of Companies. A full interim report will be sent
    to shareholders in May 2002.



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