Interim Results

British Empire Sec & Gen Tst PLC
8 May 2002


BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC

INTERIM ANNOUNCEMENT OF UNAUDITED HALF YEAR RESULTS

for the six months ended 31 March 2002



  • Net asset value rose by 11.8% compared to a gain for the MSCI World Index
    of 11.8% and gains of 9.3% and 11.5% for the FTSE All-Share and Datastream
    indices respectively (Source: Datastream).
  • Over three years net asset value per share is 59% ahead of the MSCI World
    Index (Source: Datastream).
  • Liquidity continues to be reduced from nearly 50% at one point in April
    2001. Current liquidity as a percentage of total assets is 16.7%.
  • 6 million shares were repurchased at an average discount of 8.3% for a
    consideration of £11.3 million adding 0.3% to net asset value per share.
  • Biggest share price percentage gains among the larger equity holdings
    were: Immobiliere Marseillaise +31%, Fomento de Construcciones +28%, Beni
    Stabili +27%, Danubius Hotels +42%, Nexen +26%, CGIP +32%, Aberdeen New Dawn
    +51%, Baring Emerging Europe +60% and Caffyns +39%.

    Disappointments included: IFI -15% and African Lakes -36%.
  • Restructuring among investment holding companies in Europe continues which
    has benefited our holdings in the Lazard and Wendel groups.
  • The Company increased exposure to investment trusts and it is expected
    that the pace of corporate activity will increase given the level of
    oversupply in some segments of the sector.
  • The Company is currently top of its AITC Global Growth peer group over 5
    years and 3 years and also 1st among trusts with over £100 million of assets
    over one year (Source: Cazenove to 30th April 2002). Over three years to 31
    March 2002 total return beat the average global growth trust by 54%
    equivalent to approximately £130 million of shareholder value.
  • The Company won three awards: the Money Observer Award for Best Global
    Trust and the Standard and Poors Award for best Global Trust (out of 31
    funds) over one year and (out of 28 funds) over 3 years. The Company retains
    its S&P five star ranking.
  • W.G. Fossick, Chairman said, 'The Company's disciplined approach to
    investment value has resulted in No.1 performance among its peer group over
    5 years and 3 years. At a time of market uncertainty and high valuations,
    our undervalued assets philosophy should continue to deliver consistent
    returns'.
  • J.C. Walton, Managing Director, Asset Value Investors said, 'We had a
    number of excellent performances from individual stocks especially in the
    re-structuring European investment holding company arena and in emerging
    markets.

    'When there is great unease about the incentives to boost earnings per share
    and share prices in order to clock up massive executive share option gains
    it is reassuring to witness many of the companies in our portfolio
    responding constructively to deal with significant discounts and
    undervaluations. It can be more fun to be invested with owners rather than
    alongside option holders.

    'The AVI team remain focused on the identification of anomalous valuations
    and the emphasis on strong underlying asset values should be helpful against
    a background of earnings anxiety'.



For further information, please contact:

John Walton

Managing Director

Asset Value Investors Limited

One Bow Churchyard

Cheapside, London

EC4M 9HH

Tel: [phone]




GROUP STATEMENT OF TOTAL RETURN
(Incorporating the Revenue Account)
                                                                                                     UNAUDITED
                                                                                                for the six months to
                                                                                                   31 March 2002
                                                                                                Revenue  Capital   Total
                                                                                                  £'000    £'000   £'000

Gains on investments                                                                                  -   37,382  37,382
Realised exchange differences                                                                         -      (4)     (4)
Appreciation of loan stock                                                                            -    (644)   (644)
Income                                                                                            4,724        -   4,724
Investment management fee (incl. VAT)                                                             (771)    (193)   (964)
Other expenses (incl. VAT)                                                                        (732)        -   (732)
Net return before finance costs and taxation                                                      3,221   36,541  39,762
Finance costs                                                                                   (1,284)      (4) (1,288)
Return on ordinary activies before taxation                                                       1,937   36,537  38,474
Tax on ordinary activities                                                                        (306)        -   (306)
Return attributable to equity shareholders                                                        1,631   36,537  38,168
Dividend in respect of equity shares                                                              (660)        -   (660)
Transfer to / (from) reserves                                                                       971   36,537  37,508
Return per ordinary share : Basic                                                                 0.95p   21.17p  22.12p



 UNAUDITED
                                                                              for the six months to
                                                                                  31 March 2001

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

Gains on investments                                                            -             6,734          6,734
Realised exchange differences                                                   -               189            189
Appreciation of loan stock                                                      -             1,314          1,314
Income                                                                      5,672               358          6,030
Investment management fee(incl.VAT)                                         (917)             (229)        (1,146)
Other Expenses (incl. VAT)                                                  (104)                 -          (104)
Net return before finance costs and taxation                                4,651             8,366         13,017
Finance costs                                                             (1,304)               (3)        (1,307)
Return on ordinary activities before taxation                               3,347             8,363         11,710
Taxation on ordinary activities                                             (822)                69          (753)
Return attributable to equity shareholders                                  2,525             8,432         10,957
Dividend in respect of equity shares                                        (705)                 -          (705)
Transfer to/(from) reserves                                                 1,820             8,432         10,252
Return per ordinary share: Basic                                            1.43p             4.78p          6.21p




 AUDITED
                                                                                 for the year to
                                                                                30 September 2001

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

Gains on investments                                                            -          (31,593)       (31,593)
Realised exchange differences                                                   -             (736)          (736)
Appreciation of loan stock                                                      -             2,756          2,756
Income                                                                     12,716                44         12,760
Investment management fee(incl.VAT)                                       (1,715)           (1,715)        (3,430)
Other Expenses (incl. VAT)                                                  (603)                 -          (603)
Net return before finance costs and taxation                               10,398          (31,244)       (20,846)
Finance costs                                                             (2,730)               (7)        (2,737)
Return on ordinary activities before taxation                               7,668          (31,251)       (23,583)
Taxation on ordinary activities                                           (1,726)               514        (1,212)
Return attributable to equity shareholders                                  5,942          (30,737)       (24,795)
Dividend in respect of equity shares                                      (3,331)                 -        (3,331)
Transfer to/(from) reserves                                                 2,611          (30,737)       (28,126)
Return per ordinary share: Basic                                            3.37p          (17.45p)       (14.08p)




GROUP BALANCE SHEET                                                   UNAUDITED          UNAUDITED          AUDITED
                                                                       As at 31           As at 31         As at 30
                                                                          March              March        September
                                                                           2002               2001             2001
                                                                          £'000              £'000            £'000
Fixed assets
Investments                                                             386,960            299,275          333,347
Freehold investment Propoerty                                                 -              6,500            7,300
Net Current Assets                                                          593             99,344           21,016
Total Assets less current liabilities                                   387,553            405,119          361,663
Financed by:
Equities Index Unsecured Loan Stock 2013                                  8,974             11,202            8,330
10 3/8 per cent Debenture Stock 2011                                     11,883             11,883           11,883
8 1/8 per cent Debenture Stock 2023                                      14,847             14,839           14,843
Provision for liabilities and charges                                         -                606              637
Ordinary Shareholders' Funds                                            351,849            366,589          325,970
                                                                        387,553            405,119          361,663
Net Asset Value per Ordinary Share                                      208.19p            207.93p          186.18p
Number of Ordinary shares in issue                                  169,005,089        176,305,089      175,080,089








                                                                    UNAUDITED          UNAUDITED          AUDITED
SUMMARISED GROUP
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                               2,376              1,633             8,526
Servicing of finance                                                  (1,334)            (1,361)           (3,009)
Taxation                                                                   39               (52)             (543)
Capital expenditure and financial investment                         (10,962)             20,726          (49,288)
Equity dividends paid                                                 (2,610)            (1,783)           (2,468)
Net cash (outflow)/inflow before financing                           (12,491)             19,163          (46,782)
Financing                                                            (10,963)                  -           (3,671)
(Decrease)/increase in cash                                          (23,454)             19,163          (50,453)
Reconciliation of net cash flow to movement in net debt
(Decrease)/increase in cash                                          (23,454)             19,163          (50,453)
Buy back of index loan stock                                              123                  -             1,430
C Changes in net (debt)/funds resulting from cash flows              (23,331)             19,163          (49,023)
Exchange differences                                                      (4)                189             (736)
Other                                                                   (771)              1,308             2,749
Movement in net (debt)/cash                                          (24,106)             20,660          (47,010)
Opening net cash                                                      (6,649)             40,361            40,361
Closing net (debt)/cash                                              (30,755)             61,021           (6,649)
Reconciliation of operating profit to net cash

inflow from operating activities
Net return before finance casts and tax                                 3,221              4,651            10,398
Management fee charged to capital                                       (193)              (229)           (1,715)
Changes in working capital and other non-cash items                     (652)            (2,789)             (157)
Net cash inflow from operating activities                               2,376              1,633             8,526




NOTES

 1. The unaudited results have been prepared on the basis of the accounting
    policies set out in the statutory accounts of the Group for the year ended
    30 September 2001.
 2. The results for the first six months should not be taken as a guide to the
    full years results.
 3. Income from revenue sources comprises:


                                Six months to 31 March      Year to 30
                                                             September
                                     2002         2001            2001
                                    £'000        £'000           £'000

    Dividends                       1,471        2,072           3,310
    Interest                        3,015        3,265           8,762
    Other income                      238          335             644
    Total                           4,724        5,672          12,716



    Capital repayments of nil (31 March 2001: £358,000, 30 September 2001:
    £44,000) paid by investee companies have been credited to capital reserves.
 4. At 31 March 2002 the Company had 169,005,089 ordinary shares and 3,508,955
    units of Equities Index Unsecured Loan Stock in issue.
 5. The Directors' have today declared an interim dividend of 0.40p (2001:0.40p)
    per ordinary share payable on 14 June 2002 to ordinary shareholders on the
    registrar of members on 31 May 2002.
 6. These are not full statutory accounts in terms of section 240 of the
    Companies Act 1985. The full audited accounts for year to 30 September 2001,
    which were unqualified, have been lodged with the Registrar of Companies.



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