Interim Results

Henderson Eurotrust PLC 26 February 2003 25 February 2003 HENDERSON EUROTRUST PLC Unaudited Interim Results for the half year ended 31 January 2003 Henderson EuroTrust plc today announces unaudited interim results for the half year ended 31 January 2003. Financial Highlights (Unaudited) (Unaudited) (Audited) Half year Half year Year ended ended ended 31 January 31 January 31 July 2003 2002 2002 in pence in pence in pence Net asset value per: Ordinary share 214.49 270.61 232.64 Zero dividend preference share - 63.91 67.91 Unit - 334.52 300.55 Dividends per ordinary share/unit 1.00 1.00 2.50 Earnings/(loss) per ordinary share/unit 0.34 (0.18) 2.36 Dividend An interim dividend of 1.00p (2002: 1.00p) per ordinary share has been declared payable on 10 April 2003 to shareholders on the register of the Company on 7 March 2003. The Company's shares will be quoted ex-dividend on 5 March 2003. - MORE - - 2 - HENDERSON EUROTRUST PLC Unaudited Interim Results for the half year ended 31 January 2003 Chairman's Statement Equity markets have continued to grind lower over the last six months, with investors worried by poor economic news in Europe, an uninspiring US economy and the implications of possible war with Iraq. Few stocks or sectors have been immune to the declines, and as a Company which concentrates on finding good quality, reliable growth companies, it is some solace that we have again beaten our benchmark index handsomely, even if that just means that we have suffered smaller losses. Over the last six months the value of the Company has declined by 7.8%, compared to a decline of 12.0% for its benchmark index. Over the last twelve months, it has fallen by 20.7%, compared to a 28.8% drop by the index. While it is clearly a disappointment to be showing a decline, it is encouraging that the out-performance relative to both index and peer group is recognised by the market, with our discount of share price to Net Asset Value consistently one of the lowest amongst our peers. In the first half year of our 'new life', we have fully repaid the zero dividend preference shares as planned on 31 October 2002. We are now a conventionally structured Investment Trust, with the facility to borrow when the Manager and Board feel that would add value. Although valuations may now look cheap, the visibility of future profits and the reliability of analysts' estimates are still very poor. Markets are more nervous than they have ever been in the past ten years, resulting in very little confidence in valuations. For most of the last six months we have held a cash position of about 5%. Boosted by the interest from the cash position, particularly during the weeks ahead of the redemption of the zero dividend preference shares, and by an increase in dividend receipts, gross revenue for the six months rose by 77.5% to £284,000, compared to the corresponding, prior-year period. Given the reduced level of investment returns generally, we are looking even more closely at all of our expenses. After expenses and taxation, net profit for the half year was £87,000 against a net loss of £31,000. In today's uncertain and low-growth environment, the dividend yield on individual investments remains a core factor in our manager's judgement. The discipline of identifying companies, with sustainable earnings growth, albeit at modest rates, in addition to a respectable dividend, is crucial to good stock selection. Our manager has also been decisive in culling investments where the outlook has begun to deteriorate. Clearly we are in an intolerant market, where disappointments can lead to lengthy and painful erosion of share price, and we need to be aware of that risk while not losing sight of the importance of patience. - MORE - - 3 - HENDERSON EUROTRUST PLC Unaudited Interim Results for the half year ended 31 January 2003 Outlook The worries currently affecting the market - from indiscriminate selling by pension and insurance funds, to the geopolitical concerns of Iraq and North Korea - are well known. Looking ahead, we expect the low-growth, low-inflation environment to persist for the foreseeable future, with major implications for equity investment. In these circumstances, our continuing emphasis on companies providing relatively stable earnings growth, reasonable transparency and strong cash generation will be more necessary than ever. Although the economic outlook may remain obscure and markets volatile, these are conditions, which can provide some of the best opportunities to buy quality at favourable prices. S M Yassukovich Chairman 25 February 2003 - MORE - - 4 - HENDERSON EUROTRUST PLC Unaudited Interim Results for the half year ended 31 January 2003 Statement of Total Return (incorporating the revenue account) for the half year ended 31 January 2003 (Unaudited) (Unaudited) (Audited) Half year ended Half year ended Year ended 31 January 2003 31 January 2002 31 July 2002 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Total capital losses on investments - (3,918) (3,918) - (5,368) (5,368) - (13,457) (13,457) Income from fixed asset investments 122 - 122 114 - 114 948 - 948 Other interest receivable and similar 162 - 162 46 - 46 105 - 105 income Gross revenue and capital losses 284 (3,918) (3,634) 160 (5,368) (5,208) 1,053 (13,457) (12,404) Management fee (106) (133) (239) (137) (137) (274) (295) (295) (590) Other administrative expenses (66) (59) (125) (54) (54) (108) (115) (115) (230) Net profit/(loss) on ordinary 112 (4,110) (3,998) (31) (5,559) (5,590) 643 (13,867) (13,224) activities before taxation Taxation on net return on ordinary (25) 14 (11) - - - (217) 118 (99) activities Net profit/(loss) on ordinary 87 (4,096) (4,009) (31) (5,559) (5,590) 426 (13,749) (13,323) activities after taxation Capital gains attributable to zero - (368) (368) - (662) (662) - (1,366) (1,366) dividend preference shares Net profit/(loss) attributable to 87 (4,464) (4,377) (31) (6,221) (6,252) 426 (15,115) (14,689) ordinary shareholders Dividends declared: Interim of 1.00p (257) - (257) (176) - (176) (176) - (176) Second interim of 0.50p - - - - - - (88) - (88) Final of 1.00p - - - - - - (257) - (257) (257) - (257) (176) - (176) (521) - (521) Transfer from reserves (170) (4,464) (4,634) (207) (6,221) (6,428) (95) (15,115) (15,210) Return/(loss) per: Zero dividend preference share - 2.09p 2.09p - 3.76p 3.76p - 7.77p 7.77p Ordinary share 0.34p (17.39)p (17.05)p (0.18)p (35.37)p (35.55)p 2.36p (83.64)p (81.28)p 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 2003 Balance Sheets at 31 January 2003 (Unaudited) (Unaudited) (Audited) 31 January 31 January 31 July 2003 2002 2002 £'000 £'000 £'000 Fixed asset investments 53,913 57,541 61,983 ------------ ------------ ----------- Current assets Debtors 668 533 138 Bank balances and short term deposits 3,420 1,914 11,183 ------------ ------------ ----------- 4,088 2,447 11,321 Creditors: amounts falling due within one year (2,948) (1,155) (1,650) ------------ ------------ ----------- Net current assets 1,140 1,292 9,671 ------------ ------------ ----------- Total net assets 55,053 58,833 71,654 ======= ======= ======= Capital and reserves Called-up share capital 1,283 4,396 4,800 Share premium account 33,814 12,491 33,838 Redemption reserve - 7,722 8,426 Other capital reserves 19,701 33,911 24,165 Revenue reserve 255 313 425 ----------- ----------- ----------- Total shareholders' funds 55,053 58,833 71,654 ======= ======= ======= Attributable to: Zero dividend preference shares - 11,239 11,943 Ordinary shares 55,053 47,594 59,711 ----------- ----------- ----------- 55,053 58,833 71,654 ======= ======= ======= Net asset value per: Zero dividend preference share - 63.91p 67.91p Ordinary share 214.49p 270.61p 232.64p - MORE - - 6 - HENDERSON EUROTRUST PLC Unaudited Interim Results for the half year ended 31 January 2003 Cash Flow Statement for the half year ended 31 January 2003 (Unaudited) (Unaudited) (Audited) Half year ended Half year ended Year ended 31 January 2003 31 January 2002 31 July 2002 £'000 £'000 £'000 Net cash outflow from operating activities (169) (441) (70) Total tax recovered 46 33 74 Net cash inflow/(outflow) from sales and purchases of 5,198 (1,538) (13,678) investments Equity dividends paid (257) (264) (528) Cash placed on deposit - - (6,000) Cash withdrawn from deposit 6,000 - - Proceeds from issue of ordinary shares - - 22,163 Redemption of zero dividend preference shares (12,311) - - Expenses paid in respect of share issue (372) - (916) ----------- ----------- ----------- (Decrease)/increase in cash (1,865) (2,210) 1,045 ======= ======= ======= Reconciliation of operating revenue to net cash outflow from operating activities Net return/(loss) before interest payable and taxation 112 (31) 643 Increase in prepayments and accrued income (23) (32) (10) Decrease in other debtors - 17 40 Decrease in creditors and accruals (38) (170) (144) Expenses charged to capital (192) (191) (410) Tax on unfranked investment income deducted at source (28) (24) (179) Scrip dividends included in investment income - (10) (10) ----------- ----------- ----------- Net cash outflow from operating activities (169) (441) (70) ======= ======= ======= Reconciliation of net cash flow to movement in net funds (Decrease)/increase in cash as above (1,865) (2,210) 1,045 Cash (inflow)/outflow from liquid resources (6,000) - 6,000 Exchange movements 102 (61) (47) ----------- ----------- ----------- Change in net funds resulting from cash flows (7,763) (2,271) 6,998 Net funds at beginning of the period 11,183 4,185 4,185 ----------- ----------- ----------- Net funds at end of period 3,420 1,914 11,183 ======= ======= ======= Represented by: ----------- ----------- ----------- Cash at bank and short term deposits 3,420 1,914 11,183 ======= ======= ======= - MORE - - 7 - HENDERSON EUROTRUST PLC Unaudited Interim Results for the half year ended 31 January 2003 Notes 1. Year ended 31 July 2002 The figures and financial information for the year ended 31 July 2002 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 There are 25,667,005 ordinary shares in issue. 3. Interim Dividend An interim dividend of 1.00p per ordinary share has been declared payable on 10 April 2003 to shareholders on the register of the Company on 7 March 2003. The Company's shares will be quoted ex-dividend on 5 March 2003. 4. Interim Report The interim report will be posted to shareholders on 12 March 2003 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 Telephone: 020 7818 1818 Stephen Westwood Director of Investment Trusts Henderson Global Investors Telephone: 020 7818 1818 Stephen Phillips Investor Relations Manager Henderson Global Investors Telephone: 020 7818 6417 Vicki Staveacre Henderson Press Office Telephone: 020 7818 4222 This information is provided by RNS The company news service from the London Stock Exchange

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