Interim Results

Henderson Eurotrust PLC 28 February 2001 28 February 2001 HENDERSON EUROTRUST PLC Unaudited Interim Results for half year ended 31 January 2001 Henderson EuroTrust plc today announces unaudited interim results for the half year ended 31 January 2001. Financial Highlights (Unaudited) (Unaudited) (Audited) Half year ended Half year ended Year ended 31 January 2001 31 January 2000 31 July 2000 in pence in pence in pence Net asset value per Ordinary share 388.68 376.99 434.19 Zero dividend preference 56.60 50.14 53.27 share Unit 445.28 427.13 487.46 Dividends per ordinary 1.00 1.00 2.50 share/unit (Loss)/earnings per (0.41) (0.45) 1.76 ordinary share/unit Dividend An interim dividend of 1.00p (2000:1.00p) per ordinary share/unit has been declared payable on 12 April 2001 to shareholders on the register of the Company on 9 March 2001. The Company's shares will be quoted ex dividend on 7 March 2001. - MORE - - 2 - HENDERSON EUROTRUST PLC Unaudited Interim Results for the half year ended 31 January 2001 Chairman's Statement: The six months since our year end of 31 July, 2000, have seen a dramatic shift in sentiment on world markets. Although the climate for technology stocks had already begun to worsen well before that stage, the extent to which euphoria would swing to despair surprised us. However, we have always selected a variety of growth companies, which enabled us to weather the turbulence of the last six months with limited damage and to be positioned now for what may continue to be difficult markets. During the six months to 31 January, 2001, the net asset value of Henderson EuroTrust plc fell by 8.7% to £78.3m. This represents an under-performance of 7.1% against the benchmark FTSE Europe ex UK Index. Over the past twelve months, the net asset value increased by 4.2%, an under-performance of 6.7%. Nevertheless, over the three years to the end of January 2001 the trust has significantly outperformed the index with a total return of 86.0% compared to 57.9% for the index. Gross revenue for the six months amounted to £179,000. After administrative expenses, interest payable and taxation, the net loss amounted to £72,000 equivalent to a loss per share of 0.41p. This compares with gross revenue of £ 176,000 and a net loss of £79,000 for the corresponding period ended 31 January 2000. The directors have declared an unchanged interim dividend of 1.0p per ordinary share. Portfolio Review In this environment, the portfolio has seen an acceleration of the repositioning which had been started in the first three months of 2000. In the interim report a year ago, and again in the Annual Report for the full year ended July 2000, I drew attention both to the heady valuations which investors had come to accept for TMT companies, and to the action taken by the manager to reduce the exposure to the risks inherent in that situation. At the end of January, 2001, the total amount invested in the TMT sectors amounted to less than 25% of the portfolio. This was a significant reduction from the 54% a year ago, which had contributed to the out-performance of the Company over the medium term. Apart from pure technology companies, we continue to find quality investments in good growth businesses at reasonable valuation levels. Our emphasis on growth has served us as well over the longer as over the medium term and we remain committed to this strategy. One of the key criteria which we monitor is a high degree of visibility, enabling us to estimate future profit growth well ahead, regardless of how strong or weak world growth may be. Outsourcing and personal savings are two of the areas in Continental Europe which meet this requirement in our view. - MORE - - 3 - Outlook Markets remain unsettled by the outlook for the US economy which has clearly begun to slow, and the Federal Reserve has already cut interest rates sharply. European economies have not yet shown such signs of weakness, and the response of the European Central Bank so far has been more muted. We foresee an environment of slower but maintained growth in Europe, with lower interest rates over the course of the year. This should be favourable for the equity markets, but we remain concerned that some expectations for profits growth are still too optimistic, leaving some valuation levels too high. Some parts of the technology sector fall into this category, and here we shall be particularly selective. We shall continue to focus on those businesses whose reliable growth profile can be expected to be rewarded by the market again over the next twelve months. Board I would like to take this opportunity to thank Mr Hugh Priestley, who resigned from the Board with effect from 1 January 2001, for the contribution that he has made to the Company since its inception in 1992. We welcome Mr Patrick Stevenson to the Board with immediate effect. Patrick brings further European expertise to the Company as it approaches the end of its original ten year period and as we prepare for the continuation of the Company. - MORE - - 4 - HENDERSON EUROTRUST PLC Unaudited Interim Results for the half year ended 31 January 2001 Statement of Total Return (incorporating the revenue account) for the half year ended 31 January 2001 (Unaudited) (Unaudited) Half Year ended Half Year ended 31 January 2001 31 January 2000 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Total - (6,938) (6,938) - 17,846 17,846 capital (losses)/gains from investments Income from 90 - 90 124 - 124 fixed asset investments Other 89 - 89 52 - 52 interest receivable and similar income Gross 179 (6,938) (6,759) 176 17,846 18,022 revenue and capital gains/ (losses) Management (185) (185) (370) (173) (173) (346) fee Other (46) (46) (92) (47) (47) (94) administrative expenses Net (52) (7,169) (7,221) (44) 17,626 17,582 (loss)/return on ordinary activities before interest payable and taxation Interest - - - (1) - (1) payable Net (52) (7,169) (7,221) (45) 17,626 17,581 (loss)/return on ordinary activities before taxation Taxation on (20) - (20) (34) - (34) net return on ordinary activities Net (72) (7,169) (7,241) (79) 17,626 17,547 (loss)/return on ordinary activities after taxation Capital gain - (586) (586) - (521) (521) attributable to zero dividend preference shares Net (72) (7,755) (7,827) (79) 17,105 17,026 (loss)/return attributable to ordinary shareholders Dividends declared: Interim: 1.00p (2000: 1.00p) (176) - (176) (176) - (176) Final: 1.50p - - - - - - (176) - (176) (176) - (176) Transfer (248) (7,755) (8,003) (255) 17,105 16,850 (from)/to reserves Return/(loss) per: Zero - 3.33p 3.33p - 2.96p 2.96p dividend preference share Ordinary (0.41)p (44.09)p (44.50)p (0.45)p 97.26p 96.81p share (Audited) Year ended 31 July 2000 Revenue Capital Total £'000 £'000 £'000 Total capital (losses)/gains from - 28,496 28,496 investments Income from fixed asset investments 890 - 890 Other interest receivable and similar 157 - 157 income Gross revenue and capital gains 1,047 28,496 29,543 /(losses) Management fee (389) (389) (778) Other administrative expenses (94) (94) (188) Net (loss)/return on ordinary 564 28,013 28,577 activities before interest payable and taxation Interest payable (2) - (2) Net (loss)/return on ordinary 562 28,013 28,575 activities before taxation Taxation on net return on ordinary (253) 97 (156) activities Net (loss)/return on ordinary 309 28,110 28,419 activities after taxation Capital gain attributable to zero - (1,070) (1,070) dividend preference shares Net (loss)/return attributable to 309 27,040 27,349 ordinary shareholders Dividends declared: Interim: 1.00p (2000: 1.00p) (176) - (176) Final: 1.50p (264) - (264) (440) - (440) Transfer (from)/to reserves (131) 27,040 26,909 Return/(loss) per: Zero dividend preference share - 6.08p 6.08p Ordinary share 1.76p 153.75p 155.51p The revenue columns of this statement represent the revenue accounts of the Company. - MORE - - 5 - HENDERSON EUROTRUST PLC Unaudited Interim Results for the half year ended 31 January 2001 Balance Sheets At 31 January 2001 (Unaudited) (Unaudited) (Audited) 31 January 31 January 31 July 2001 2000 2000 £'000 £'000 £'000 Fixed asset investments 74,704 69,867 82,224 ----------- ----------- ----------- Current assets Debtors 1,352 2,169 1,567 Bank balances and short term deposits 4,163 4,168 3,736 ----------- ----------- ----------- 5,515 6,337 5,303 Creditors - amounts falling due within one year (1,906) (1,082) (1,797) ----------- ----------- ----------- Net current assets 3,609 5,255 3,506 ----------- ----------- ----------- Total net assets 78,313 75,122 85,730 ======= ======= ======= Capital and reserves Called-up share capital 4,396 4,396 4,396 Share premium account 12,491 12,491 12,491 Redemption reserve 6,437 5,301 5,851 Other capital reserves 54,795 52,614 62,550 Revenue reserve 194 320 442 ----------- ----------- ----------- Total shareholders' funds 78,313 75,122 85,730 ======= ======= ======= Attributable to: Zero dividend preference shares 9,954 8,819 9,368 Ordinary shares 68,359 66,303 76,362 ----------- ----------- ----------- 78,313 75,122 85,730 ======= ======= ======= Net asset value per: Zero dividend preference share 56.60p 50.14p 53.27p Ordinary share 388.68p 376.99p 434.19p - MORE - - 6 - HENDERSON EUROTRUST PLC Unaudited Interim Results for the half year ended 31 January 2001 Cash Flow Statement for the half year ended 31 January 2001 (Unaudited) (Unaudited) (Audited) Half year Half year Year ended ended ended 31 January 31 January 31 July 2001 2000 2000 £'000 £'000 £'000 Net cash outflow from operating activities (152) (449) (262) Interest paid - (1) (8) Total tax recovered 19 51 170 Net cash inflow from purchases and sales of 802 1,775 1,041 investments Equity dividends paid (264) (264) (440) ----------- ----------- ---------- Increase in cash 405 1,112 501 ======= ======= ======= Reconciliation of operating revenue to net cash inflow from operating activities Net return before interest payable and (52) (44) 564 taxation Decrease/(increase) in prepayments and 7 (21) 16 accrued income Increase/(decrease) in creditors and 155 (110) (115) accruals Expenses charged to capital (231) (219) (483) Tax on unfranked investment income deducted (19) (38) (227) at source Scrip dividends included in investment (12) (17) (17) income ----------- ----------- ---------- Net cash inflow from operating activities (152) (449) (262) ======= ======= ======= Reconciliation of net cash flow to movement in net funds Increase in cash as above 405 1,112 501 Exchange movements 22 (264) (85) ----------- ----------- ---------- Change in net funds resulting from cash 427 848 416 flows Net funds at beginning of the period 3,736 3,320 3,320 ----------- ----------- ---------- Net funds at end of period 4,163 4,168 3,736 ======= ======= ======= Represented by: ----------- ----------- ---------- Cash at bank and short term deposits 4,163 4,168 3,736 ======= ======= ======= - MORE - - 7 - HENDERSON EUROTRUST PLC Unaudited Interim Results for the half year ended 31 January 2001 Notes 1. Year ended 31 July 2000 The figures and financial information for the year ended 31 July 2000 are extracted from the latest published accounts of the Company 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 either section 237(2) or 237(3) of the Companies Act 1985. 2. Shares and Units There are 17,587,348 of each class of share in issue. Units comprise one ordinary share and one zero dividend preference share and are listed on The London Stock Exchange. 3. Interim Dividend An interim dividend of 1.00p per ordinary share/unit has been declared payable on 12 April 2001 to shareholders on the register of the Company on 9 March 2001. The Company's shares will be quoted ex-dividend on 7 March 2001. 4. Interim Report The interim report will be posted to shareholders in March 2000 and will be available thereafter from the Secretary at the Registered Office, 4 Broadgate, London, EC2M 2DA. - ENDS - For further information please contact : Tim Stevenson Henderson EuroTrust plc 020 7410 4100 Stephen Westwood Director of Investment Trusts Henderson Global Investors 020 7410 4100 Vicki Staveacre Henderson Press Office 020 7410 4222

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