Final Results

Henderson Eurotrust PLC 20 September 2005 Page 1 of 7 20 September 2005 HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2005 Financial Highlights 31 July 2005 31 July 2004 Change Pence Pence % Net Asset Value ordinary share 396.78 292.04 +35.9 Earnings ordinary share 4.34 3.84 +13.0 Dividends ordinary dividend 5.00 3.00 +66.7 Extracts from Chairman's Statement It has been a very good year for both markets and Henderson EuroTrust. The Company has produced a total return of 37.4%, ahead of the benchmark index (the FTSE World Europe excluding the UK) which increased 32.4%. These returns have been achieved in spite of a continuation of the low growth in European economies, a considerably higher oil price, and disarray amongst European leaders as two major Eurozone countries rejected the proposed EU Constitution. During the year the Board constantly reviews and discusses the progress of the fund and macro economic trends and prospects for markets with the manager. It has been decided that we should commence a progressive shift in our emphasis, which can broadly be summed up as looking to invest in 'New Europe', avoiding the cobwebs of unreformed 'Old Europe'. This is a more complex process than simply investing in the 'new' European states. It encompasses a shift away from companies and countries that are unable or unwilling to adapt to the new highly competitive world, and a more intensive search for innovative, dynamic growth companies at reasonable valuations. This will be a gradual evolution of the Company's strategy. - MORE - Page 2 of 7 HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2005 Revenue and Dividend Gross revenue for the year amounted to £1,967,000 (2004: £1,644,000). Net revenue on ordinary activities after tax and administration expenses reached £1,114,000 (2004: £985,000), producing an increase in earnings of 13.0% to 4.34 pence per share (2004: 3.84p). Given the current size of the revenue reserve, and the growing trend of European companies to increase the payout ratio, the Board feels comfortable in recommending an increase in the final dividend to 3.0p, making a total dividend for the year of 5.0p (2004: 3.0p). This means that there will be a small decline in our revenue reserve. During the year our manager has only occasionally been geared for a short period of time and to a limited extent. With the benefit of hindsight we might have encouraged the manager to be more aggressive, although we shared his caution in the face of markets containing very fully valued companies whose outperformance promises were still unrealised. Nevertheless the result has been more than satisfactory. Expenses Our efforts to control unnecessary expenses have continued; while the management fee is calculated as a direct percentage of the size of the Company, other administrative expenses can to some extent be controlled. The latter amounted to £218,000 in the last year, compared with £228,000 in the previous year. The Total Expense Ratio(1), before performance fee and borrowing costs, amounted to 0.83% of the Company (compared with 0.99% in the previous year. As you are aware, we introduced a performance fee in 2002 which is paid to our manager if results achieve certain extraordinary hurdle rates which are calculated with reference to our benchmark. There is a cap on the amount the manager can earn, regardless of the level of outperformance. The Board keeps the formula under review to ensure that it provides the best incentive for the manager to outperform on the most economic terms for our shareholders. Prospects The same low growth, low inflation environment in Europe prevails this year, yet markets have shown a very strong rally. This is in spite of a number of quite serious negative factors, not least of which is the high oil price. At the specific level of companies, which has always been the focus of our manager rather than general economic factors, profits growth has been very good, and the outlook is for further steady progress. The subtle change in the approach of our manager to look for 'New Europe' and all that entails could be very interesting. It is certainly clear that much is changing in Europe, and that this evolution will provide some new and exciting opportunities. Our manager's highly focussed stock picking style remains particularly suited to such an environment. We are broadly positive on markets, but very aware of the ever present global risks. - MORE - Page 3 of 7 HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2005 Statement of Total Return (incorporating the revenue account) for the year ended 31 July 2005 Unaudited Audited Year ended 31 July 2005 Year ended 31 July 2004 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Total capital gains from investments - 28,201 28,201 - 6,583 6,583 Income from fixed asset investments 1,914 - 1,914 1,612 - 1,612 Other interest receivable and similar 53 - 53 32 - 32 income ---------- ---------- ---------- ---------- ---------- ---------- Gross revenue and capital gains 1,967 28,201 30,168 1,644 6,583 8,227 Management and performance fees (148) (1,393) (1,541) (123) (725) (848) Other administrative expenses (218) - (218) (228) - (228) ---------- ---------- ---------- ---------- ---------- ---------- Net return on ordinary activities before interest payable and taxation 1,601 26,808 28,409 1,293 5,858 7,151 Interest payable (1) (4) (5) (1) (3) (4) ---------- ---------- ---------- ---------- ---------- ---------- Net return on ordinary activities before taxation 1,600 26,804 28,404 1,292 5,855 7,147 Taxation on net return on ordinary (486) 250 (236) (307) 163 (144) activities Net return on ordinary activities ---------- ---------- ------------ ---------- ---------- ------------ after taxation 1,114 27,054 28,168 985 6,018 7,003 ---------- ---------- ---------- ---------- ---------- ---------- Dividends Interim paid 2.0p (2004: 1.5p) (513) - (513) (385) - (385) Final proposed 3.0p (2004: 1.5p) (770) - (770) (385) - (385) ---------- ---------- ---------- ---------- ---------- ---------- (1,283) - (1,283) (770) - (770) ---------- ---------- ---------- ---------- ---------- ---------- Transfer (from)/to reserves (169) 27,054 26,885 215 6,018 6,233 ===== ===== ===== ===== ===== ===== Return per ordinary share 4.34p 105.40p 109.74p 3.84p 23.45p 27.29p ===== ===== ===== ===== ===== ===== The revenue columns of this statement represent the profit and loss accounts of the Company. - MORE - Page 4 of 7 HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2005 Balance Sheet at 31 July 2005 Unaudited Audited 2005 2004 £'000 £'000 Fixed asset investments Listed overseas 102,644 72,898 ------------ ------------ Current assets Debtors 180 498 Cash at bank and short term deposits 3,826 4,849 ----------- ----------- 4,006 5,347 Creditors: amounts falling due within one year (4,808) (3,288) ------------ ------------ Net current (liabilities)/assets (802) 2,059 ------------ ------------ Total assets less current liabilities 101,842 74,957 ------------ ------------ Total net assets 101,842 74,957 ======= ======= Capital and reserves Called-up share capital 1,283 1,283 Share premium account 33,814 33,814 Other reserves Capital reserves - realised 42,612 32,340 Capital reserves - unrealised 23,478 6,696 Revenue reserve 655 824 ------------ ------------ Equity shareholders' funds 101,842 74,957 ======= ======= Net asset value Ordinary shares 396.78p 292.04p ======= ======= - MORE - Page 5 of 7 HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2005 Cash Flow Statement for the year ended 31 July 2005 Unaudited Unaudited Audited Audited 2005 2005 2004 2004 £'000 £'000 £'000 £'000 Net cash inflow from operating activities 269 709 Servicing of finance Bank interest paid (5) (4) --------- ------------ Net cash outflow from servicing of finance (5) (4) Taxation Overseas tax recovered 92 112 --------- ------------ Net tax recovered 92 112 Financial investment Purchase of investments (67,306) (56,824) Sale of investments 66,628 61,251 ---------- ------------ Net cash (outflow)/inflow from financial investment (678) 4,427 Equity dividends paid (898) (898) ----------- ------------ Net cash (outflow)/inflow before financing (1,220) 4,346 Financing - - ----------- ------------ (Decrease)/increase in cash (1,220) 4,346 ======= ======= Reconciliation of net cash flow to movement in net funds (Decrease)/increase in cash as above (1,220) 4,346 Exchange movements 197 (81) ----------- ------------ Movement of net cash (1,023) 4,265 Net cash at 1 August 4,849 584 ----------- ----------- Net cash at 31 July 3,826 4,849 ======= ======= - MORE - Page 6 of 7 HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2005 Notes : 1. Return per share Revenue return per ordinary share is based on earnings attributable to the ordinary shares of £1,114,000 (2004: £985,000) and on the number of ordinary shares in issue throughout the year being 25,667,005 (2004: 25,667,005). Capital return per ordinary share is based on the net capital gains of £27,054,000 (2004: £6,018,000), and on the same number of ordinary shares in issue as above. 2. Reconciliation of movement in shareholders' funds Year ended Year ended 31 July 31 July 2005 2004 £'000 £'000 Net revenue return on ordinary activities after taxation 1,114 985 Dividends (1,283) (770) ---------- ---------- (169) 215 Increase in capital reserves 27,054 6,018 ---------- ---------- 26,885 6,233 Opening shareholders' funds 74,957 68,724 ---------- ---------- Shareholders' funds at 31 July 101,842 74,957 ====== ====== 3. 2004 Accounts The figures and financial information for the year ended 31 July 2004 are extracted from the latest published accounts and do not constitute the statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under Section 237(2) or Section 237(3) of the Companies Act 1985. 4. 2005 Accounts The preliminary figures for the year ended 31 July 2005 which do not constitute statutory accounts are an extract from the draft accounts of the Company for the year. These accounts have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them. 5. Dividend The recommended final dividend of 3.0p per ordinary share, if approved, will be paid on 10 November 2005 to holders of ordinary shares on the register of members at close of business on 7 October 2005. The Company's shares will be quoted ex-dividend on 5 October 2005. - MORE - Page 7 of 7 HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2005 6. Annual General Meeting Copies of the Annual Report will be posted to shareholders in early October 2005 in time for the Annual General Meeting on 8 November 2005 and will be available from the Secretary at 4 Broadgate, London EC2M 2DA thereafter. For further information please contact: Tim Stevenson Henderson EuroTrust plc Telephone: 020 7818 4342 James de Sausmarez Head of Investment Trusts, Henderson Global Investors Telephone: 020 7818 3349 Sarah Gibbons-Cook Investor Relations and PR Manager, Henderson Global Investors Telephone: 020 7818 3198 - ENDS - -------------------------- (1) The Toral Expense Ratio is calculated by taking the Management Fee and adding the Administration Expenses (both excluding VAT) and dividing by the Net Asset Value as at 31 July 2005. This information is provided by RNS The company news service from the London Stock Exchange

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