Interim Results

British Assets Trust PLC
14 May 2003


BRITISH ASSETS TRUST PLC

To:   RNS

From: British Assets Trust plc

Date: 14 May 2003



Interim Results in respect of the six months ended 31 March 2003

Financial Highlights


        •       Net asset value total return of -2.9 per cent compared with
                a return of -0.9 per cent for the benchmark index

    •      Dividend yield 6.2 per cent

•      Discount 4.6 per cent


Total Return

The Company's net asset value total return, that is with dividends re-invested,
was -2.9 per cent over the six month period to 31 March 2003. This compared with
a return of -0.9 per cent for the composite benchmark index of 75 per cent FTSE
All-Share Index and 25 per cent FTSE World (ex UK) Index. The total return for
the FTSE All-Share Index was -1.9 per cent.


The dividend yield as at 31 March 2003 was 6.2 per cent being one of the highest
available from a global investment trust. The Company's discount of share price
to net asset value at the end of the period was 4.6 per cent.


Stockmarkets recovered slightly in the last quarter of 2002 but fell back at the
start of 2003. In January, UK equities recorded their worst performance since
1974, largely due to forced selling by life companies, as they had to avoid
breaching solvency requirements. Concern over the war with Iraq also contributed
to global stockmarket weakness.


As was the case in the year ended 30 September 2002, gearing continued to be the
main reason for the Company's underpeformance although there was some weakness
in stock selection. Asset allocation was positive, reflecting good returns from
the Company's corporate bond portfolio which increased in value by 7.8 per cent
against a backdrop of falling stockmarkets.


Activity

During the period there were only limited asset allocation shifts. The key one
was the repayment of the yen loan, referred to below, which was funded from cash
and the sale of corporate bonds. Towards the end of March, we took advantage of
the rally in global stockmarkets as the war in Iraq got underway to reduce the
Company's exposure to North America and rebuild cash levels.


Gearing

At the end of the period the Company's gearing, net of cash, was 32.3 per cent
of which 8.8 per cent was accounted for by the corporate bond portfolio.


Gearing was reduced during the period by the repayment of the Company's yen loan
which had a Sterling value of £22.4 million at the time of repayment. The loan
had been drawn down under a three year committed revolving credit facility which
expired during the period.


The nominal value of the Company's remaining borrowings totals £120 million
which comprises two £60 million Bonds, maturing in 2008 and 2031. The Board
regularly reviews the Company's gearing level and at present market levels does
not consider it to be in the best interests of shareholders to de-gear the
Company to any material extent. As stated in previous years' Annual and Interim
Reports the Board believes, and continues to believe, that the prospects for
equities are such that they will exceed the cost of financing the borrowings,
thereby enhancing returns for shareholders.


Earnings and Dividends

Earnings per share for the six months to 31 March 2003 were 1.84p (2002 -
£1.88p). A first interim dividend of 1.304p per Ordinary Share (2002 - 1.304p)
was paid on 11 April 2003 and the Board has declared a second interim dividend
of 1.304p per Ordinary Share (2002 - 1.304p), which will be paid on 11 July 2003
to shareholders on the register on 13 June 2003.


At 30 September 2002 the level of dividend cover provided by the Revenue Reserve
was 98 per cent. At the Annual General Meeting held on 19 December 2002,
shareholders approved the cancellation of the Company's Share Premium Account
and Capital Redemption Reserve. The Company is in the process of seeking Court
approval for the cancellation of these reserves and, if granted, a new special
reserve of £14.7 million will be created which may be treated as profits
available to the Company for the purpose of paying future dividends and buying
back shares. Following the creation of this reserve, the level of dividend cover
provided by the Company's distributable reserves will be in the region of 160
per cent of the annual dividend cost, which the Board believe provides
sufficient flexibility for future dividend payments.


Outlook

Whilst helpful, the swift resolution of the Iraqi conflict is unlikely to prove
a panacea for global markets. The fall in the oil price is welcome, given its
impact on global demand. Equity markets continue to offer value against cash and
bonds but investors remain cautious against a backdrop of uncertain global
growth and a slow recovery in corporate profits.




For further information please contact:

Julie Dent 0131 465 1000
ISIS Asset Management plc






Unaudited Statement of Total Return (Incorporating the revenue account)
for the 6 Months ended 31 March 2003

                                                                      2003          2003             2003
                                                                   Revenue       Capital            Total
                                                                     £'000         £'000            £'000

Losses on investments                                                    -      (11,697)         (11,697)
Exchange differences                                                     -         (470)            (470)
Income                                                               8,446             -            8,446
Investment management fee:
Basic                                                                (212)         (636)            (848)
Performance                                                              -             -                -
Other expenses                                                       (356)             -            (356)
                                                                 ---------     ---------        ---------

Net return before finance costs & taxation                           7,878      (12,803)          (4,925)

Finance Costs:
6.625% Bonds 2008                                                    (505)       (1,514)          (2,019)
6.25% Bonds 2031                                                     (474)       (1,422)          (1,896)
Other                                                                 (29)          (86)            (115)
                                                                 ---------     ---------        ---------
Return on ordinary activities before tax                             6,870      (15,825)          (8,955)

Tax on ordinary activities                                           (369)           256            (113)
                                                                 ---------     ---------        ---------
Return attributable to equity shareholders                           6,501      (15,569)          (9,068)

Dividends in respect of equity shares                              (9,216)             -          (9,216)
                                                                 ---------     ---------        ---------
Transfer from reserves                                             (2,715)      (15,569)         (18,284)
                                                                 ---------     ---------        ---------

Return per Ordinary Share (p)                                         1.84        (4.41)           (2.57)






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)                                         1.88         12.11            13.99







Statement of Total Return (Incorporating the revenue account)
for the Year ended 30 September 2002

                                                                                 2002              2002            2002
                                                                              Revenue           Capital           Total
                                                                                £'000             £'000           £'000

Losses on investments                                                               -         (147,328)       (147,328)
Exchange differences                                                                -             1,825           1,825
Income                                                                         18,408                 -          18,408
Investment management fee:
Basic                                                                           (563)           (1,690)         (2,253)
Performance                                                                         -             (766)           (766)
Other expenses                                                                  (832)                 -           (832)
                                                                             ________          ________        ________
Net return before finance costs & taxation                                     17,013         (147,959)       (130,946)

Finance Costs:
6.625% Bonds 2008                                                             (1,010)           (3,028)         (4,038)
6.25% Bonds 2031                                                                (944)           (2,832)         (3,776)
Other                                                                            (72)             (217)           (289)
                                                                             ________          ________        ________
Return on ordinary activities before tax                                       14,987         (154,036)       (139,049)

Tax on ordinary activities                                                      (710)               441           (269)
                                                                             ________          ________        ________
Return attributable to equity shareholders                                     14,277         (153,595)       (139,318)

Dividends in respect of equity shares                                        (18,791)                 -        (18,791)
                                                                             ________          ________        ________
Transfer from reserves                                                        (4,514)         (153,595)       (158,109)
                                                                             ________          ________        ________

Return per Ordinary Share (p)                                                    4.04           (43.47)         (39.43)





Unaudited Balance Sheet                                               As At                 As At                 As At
                                                                   31.03.03              30.09.02              31.03.02
                                                                      £'000                 £'000                 £'000
Fixed Assets
Investments                                                         418,228               457,471               663,488

Current Assets
Debtors                                                               9,134                 5,865                 6,047
Cash at bank and on deposit                                          21,026                23,333                20,304
                                                                  ---------             ---------             ---------
                                                                     30,160                29,198                26,351
Creditors:
Amounts falling due within one year                                (13,429)              (11,271)              (15,817)
Yen Loan                                                                  -              (22,199)              (22,519)
                                                                -----------            ----------            ----------
Net Current Assets / (Liabilities)                                   16,731               (4,272)              (11,985)
                                                                -----------             ---------             ---------
Total Assets less Current Liabilities                               434,959               453,199               651,503


Creditors: amounts falling due after more than one
year:
6.625% Bonds 2008                                                  (59,684)              (59,653)              (59,621)
6.25% Bonds 2031                                                   (59,250)              (59,237)              (59,223)
                                                                -----------            ----------            ----------
                                                                  (118,934)             (118,890)             (118,844)

                                                                -----------             ---------             ---------
Net assets                                                          316,025               334,309               532,659
                                                                 ----------             ---------             ---------
Equity Shareholders' Funds                                          316,025               334,309               532,659
                                                                 ----------             ---------             ---------
Net Asset Value per Share                                             89.4p                 94.6p                150.7p







Summarised Unaudited Statement of Cash Flows

                                                                   Six months to     Six months to                  Year
                                                                                                                      to
                                                                        31 March          31 March          30 September
                                                                            2003              2002                  2002
                                                                           £'000             £'000                 £'000

Net cash inflow from operating activities                                  6,405             3,978                12,954
Servicing of finance                                                     (3,983)           (4,007)              (10,000)
Taxation                                                                      11                60                   111
Financial investments                                                     27,960          (41,441)              (32,404)
Equity dividends paid                                                    (9,590)           (9,759)              (18,968)

Net cash inflow/(outflow) before financing                                20,803          (51,169)              (48,307)
Financing                                                               (22,429)             2,650                 2,629

Decrease in cash                                                         (1,626)          (48,519)              (45,678)

Reconciliation of net cash flow to movement in net debt

Decrease in cash                                                         (1,626)          (48,519)              (45,678)
Costs in relation to issue of 6.25% Bonds 2031                                 -                 -                    21
Currency (losses)/gains                                                    (681)                58                   246
Yen loan repaid                                                           22,429                 -                     -
(Increase)/decrease in yen loan liability                                  (230)             1,755                 2,075
Increase in 6.625% Bonds 2008 Liability                                     (31)              (31)                  (63)
(Increase)/decrease in 6.25% Bonds 2031 Liability                           (13)                 9                  (26)
Movement in net debt                                                      19,848          (46,728)              (43,425)
Net debt at 1 October                                                  (117,756)          (74,331)              (74,331)

Net debt at 31 March/30 September                                       (97,908)         (121,059)             (117,756)




Reconciliation of net revenue before finance costs and
taxation to net cash inflow from operating activities

Net revenue before finance costs and taxation                              7,878               7,957              17,013
Investment Management fee charged to capital                               (636)             (1,624)             (2,888)
Tax on investment income                                                   (109)               (114)               (327)
Changes in working capital and other non-cash items                        (728)             (2,241)               (844)

Net cash inflow from operating activities                                  6,405               3,978              12,954






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 2002.

 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 during the period (2002 - same).

 4. The second interim dividend of 1.304p per Ordinary Share will be paid on 11
    July 2003 to shareholders on the register on 13 June 2003.

    The last date for receipt of mandate instructions for those shareholders who
    wish to join the Dividend Reinvestment Plan is 20 June 2003.

 5. There were 353,362,282 Ordinary Shares in issue at 31 March 2003 (2002 -
    same)

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



Attribution of Return                                    Percentage Points

Market/benchmark return                                               -0.9
Asset allocation                                                       1.0
Stock selection
UK equities                                                            0.0
Overseas equities                                                     -0.7
Corporate bonds                                                       -0.2
Gearing                                                               -1.8
Expenses                                                              -0.3
                                                                    ______
British Assets Trust total return                                     -2.9
                                                                    ______


 7. The Company's geographic exposure as a percentage of shareholders'
    funds at 31 March 2003 was as follows (comparative figures are for 30
    September 2002).

                                           31 March 2003           30 September 2002

UK                                         91.6                    92.4
North America                              17.9                    20.3
Europe                                     8.0                     7.3
Japan                                      2.9                     3.2
Far East (ex Japan)                        3.1                     3.2
Corporate Bonds                            8.8                     10.4
Liquidity                                  5.3                     5.4
Borrowings                                 (37.6)                  (42.2)
                                           ____                    ____
                                           100.0                   100.0



 8. These are not statutory accounts in terms of Section 240 of the Companies Act
    1985 and are unaudited. Statutory accounts for the year ended 30 September
    2002, 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 2002 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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