Final Results

Govett Asian Recovery Trust PLC
26 May 2000


GOVETT ASIAN RECOVERY INVESTMENT TRUST PLC
Preliminary announcement of Unaudited Results for the year ended 31st March
2000
 
 

Chairman's Statement

 
The year to 31st March witnessed a continuation of the remarkable resurgence
in Asian markets discussed in the last Annual Report. During the period, the
Net Asset Value of the Trust rose by 72% from 130.64p to 224.81p, compared to
a rise in its benchmark index of 45%. The Trust's discount to Net Asset Value
narrowed during the year from 25% to 18% as confidence in Asian markets
returned. Against the gain in Net Assets of 72%, the Trust's share price rose
by 88%.
 
This out-performance resulted from the Trust's strategically overweight
positions in the markets of South Korea, Singapore, Hong Kong and Taiwan which
were among the first to recover from the Crisis which had hit the region in
1997 and 1998. These markets rose by 58%, 37%, 60% and 58% respectively during
the course of the year and the Trust added to positions which were benefiting
from the rapid improvement in investor sentiment. At the same time, the Trust
maintained an underweight position in the Japanese market, as the overall
prospects for a pickup in the economy remained uncertain. However, stock
selection within the Japanese part of the portfolio added significantly to
performance, due to the concentration on Internet-related stocks. The Trust
began to reduce these holdings towards the end of the year at the same time
as building up exposure to more traditional parts of the Japanese economy.
 
The Trust deployed borrowing facilities throughout the year in order to
enhance performance and, at the end of the year, the Trust was 23% geared.
Borrowings have subsequently been reduced and are unlikely to be increased
significantly in the near term, given the continuing volatility in markets.
 
In addition, the Board has used its powers to buy back 200,000 shares in the
Trust, thereby enhancing Net Asset Value by 1%.  Since the year end, a further
150,000 shares have been bought back.
 
As in the previous year, the Trust will be making no dividend payment this
year given its primary objective of capital growth. 

Since the year end,markets in Asia have fallen quite sharply. This has
adversely affected your Trust's Net Asset Value. The Manager has now
eliminated all net borrowings and substantially reduced the Trust's exposure
to technology stocks,particularly in Japan. Although markets may continue to
be volatile in the short term, we are still confident that the longer term
outlook for the region remains promising.
 
 
 
David Price, Chairman
26th May 2000
 
 
 
 
 
Unaudited Consolidated Statement of Total Return (incorporating the revenue
account*) for the year ended
31st March 2000
 
 
                                                                              
                                Year ended                 Period ended       
                             31st March 2000             31st March 1999      
                        Revenue   Capital     Total  Revenue  Capital    Total
                         £000s     £000s     £000s    £000s    £000s    £000s 
  Realised &                 -    37,266    37,266        -   10,179   10,179 
  unrealised gains                                                            
  on investments                                                              
  Net foreign                -   (1,756)   (1,756)        -      786      786 
  currency exchange                                                           
  differences                                                                 
  Income from              817         -       817      385        -      385 
  investments                                                                 
  Cash enhancement           -         -         -        -      561      561 
  from manager                                                                
  Deposit interest          23         -        23       17        -       17 
  Investment             (623)         -     (623)    (172)        -    (172) 
  management fee                                                              
  Performance-related        -     (209)     (209)        -        -        - 
  fee                                                                         
  Other expenses         (382)       (6)     (388)    (140)     (30)    (170) 
  Net return before      (165)    35,295    35,130       90   11,496   11,586 
  finance costs and                                                           
  taxation                                                                    
  Interest payable       (221)         -     (221)     (21)        -     (21) 
  Return on ordinary     (386)    35,295    34,909       69   11,496   11,565 
  activities before                                                           
  taxation                                                                    
  Tax on ordinary         (82)         -      (82)     (36)        -     (36) 
  activities                                                                  
  Return on ordinary     (468)    35,295    34,827       33   11,496   11,529 
  activities after                                                            
  taxation                                                                    
  Return per           (1.26)p    95.43p    94.17p    0.09p   30.81p   30.90p 
  Ordinary share                                                              
 
* The revenue column of this statement represents the revenue account of the
Company.
 
All items derive from continuing activities.
 
 

                                                                     
                                                       2000      1999
                                                       £000      £000
           NET ASSETS                                                
           Investments at valuation                  93,337    51,002
           Net current liabilities                  (9,947)   (2,503)
           Provision for liabilities and charges      (387)       (4)
                                                     83,303    48,495
                                            
           Net asset value per share                 224.81p   130.64p        
               
 
 
 
The Annual General Meeting of the Company will be held at 12 noon on 25th
July 2000 at Glaziers Hall, 9 Montague Close, London Bridge, London SE1 9DD.
We look forward to meeting shareholders at the AGM, which will be followed by
a brief presentation.
 
The Company's annual report and accounts will be sent to shareholders in June
2000. Copies will be available to the public at the registered office of the
Company, Shackleton House, 4 Battle Bridge Lane, London.
 
This preliminary statement, which has been agreed with the auditors, was
approved by the Board on 25 May 2000. It is not the Company's statutory
accounts. The statutory accounts for the period ended 31 March 1999 have been
delivered to the Register of Companies and received an audit report which was
unqualified and did not contain statements under s237(2) or (3) of the
Companies Act 1985. The statutory accounts for the year ended 31 March 2000
have not yet been audited or filed.
 
By order of the Board
Shackleton House AIB Govett Secretaries Limited
4 Battle Bridge Lane Secretary
London 25th May 2000
SE1 2HR Registered in England no:3582911