Final Results

Henderson High Income Trust PLC 05 March 2004 4 March 2004 HENDERSON HIGH INCOME TRUST PLC Unaudited Preliminary Results for the year ended 31 December 2003 Highlights • NAV Total Return per ordinary share increased by 25.5%*, compared to a rise in the FTSE All-Share Index of 20.9% • Annual dividend maintained at 9.90p; creating a yield on the ordinary shares of 9.3% at a price of 106.0p * Source: AITC Services Limited. This differs from the net asset value return calculated from the financial statements of 26.3% as a result of timing and methodology differences and includes net dividends reinvested. Extracts from the Chairman's Statement: Assets and Performance I am happy to report that the recovery in equity markets during 2003 has fed through to an increase in the Company's assets and share price. The rapid conclusion to the Iraq war led to an improvement in investor sentiment, providing a supportive backdrop to stock markets. Economic recovery was stimulated by a low interest rate policy and corporate profitability has steadily improved, although on a patchy basis. Over the year the Company's ordinary shares registered a net asset total return of 25.5%. This contrasts with a 20.9% increase in equities as measured by the FTSE All-Share Index and a 2.1% return from fixed interest as measured by the FTA Government All Stocks Index. The units produced a net asset total return over the year of 18.5%. The financial year under review saw the introduction of the new management fee arrangement with Henderson Global Investors whereby there is a lower basic fee, and introducing a capped performance-related element. Over the year the managers have delivered a total return in excess of the performance benchmark and they have accordingly earned the maximum fee payable under the new arrangement. Dividends Growth in dividends is slowly improving as corporate profitability increases. Recent significant cuts in dividends from some of the largest UK companies mean that increased distributions are sometimes starting from a lower base. Meanwhile the fall in the US Dollar against Sterling has reduced the value of payouts from those companies declaring income in US Dollars, such as BP, HSBC and Carnival Cruises. - MORE - - 2 - HENDERSON HIGH INCOME TRUST PLC Unaudited Preliminary Results for the year ended 31 December 2003 Extracts from the Chairman's Statement (cont'd): The Company's revenue has been generally stable in recent years. In order to maintain a balance between income and capital return to shareholders, the Board has declared an unchanged fourth interim dividend. In total, dividends declared for the year amount to 9.90p, creating a yield on the ordinary shares of 9.3% at a price of 106.0p. The Board Hugh Twiss was appointed to the Board as a director on 1 October 2003 and consequently will be seeking election at the Annual General Meeting in April 2004. We are very pleased that Hugh accepted our invitation to join the Board as he brings a wealth of experience in financial markets and particularly in investment trusts. He has also accepted the Board's invitation to chair the Nominations Committee. In addition, Patrick Dalby is standing for re-election. We hope to make another appointment during the coming year, further strengthening the Board. Prospects We are at that delicate stage of an economic recovery when a degree of caution should be exercised by the authorities. Interest rates have been nudged higher and may need to increase further to stop over exuberance and speculation recreating a boom-bust culture. A slowing of both consumer spending and house price inflation is needed to balance demand and keep inflation low. Share prices can make further progress this year if, as we hope, the pick-up in economic growth proves sustainable and the imbalances in the economy are addressed. - MORE - - 3 - HENDERSON HIGH INCOME TRUST PLC Unaudited Preliminary Results for the year ended 31 December 2003 Group Statement of Total Return (incorporating the revenue account) for the year ended 31 December 2003 Year ended 31 December 2003 Year ended 31 December 2002 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Net capital gains/(losses) from investments - 12,107 12,107 - (14,960) (14,960) Income from fixed asset investments 6,410 - 6,410 6,461 - 6,461 Other interest receivable and similar income 36 - 36 79 - 79 ---------- ---------- ---------- ---------- ---------- ---------- Gross revenue and capital gains/(losses) 6,446 12,107 18,553 6,540 (14,960) (8,420) Management and performance fees (258) (778) (1,036) (330) (495) (825) Other administrative expenses (260) - (260) (222) - (222) ---------- ---------- ---------- ---------- ---------- ---------- Net return/(loss) on ordinary activities 5,928 11,329 17,257 5,988 (15,455) (9,467) before interest payable and taxation Interest payable (205) (614) (819) (228) (684) (912) Movement in provision for redemption of the zero dividend - (2,600) (2,600) - (2,403) (2,403) preference shares in the Subsidiary ---------- ---------- ---------- ---------- ---------- ---------- Net return/(loss) on ordinary activities 5,723 8,115 13,838 5,760 (18,542) (12,782) before taxation Taxation on net return/(loss) on ordinary (279) 267 (12) (352) 342 (10) activities ---------- ---------- ---------- ---------- ---------- ---------- Net return/(loss) on ordinary activities after 5,444 8,382 13,826 5,408 (18,200) (12,792) taxation ---------- ---------- ---------- ---------- ---------- ---------- Dividends: ordinary shares 1st interim paid of 2.475p (2002: 2.475p) (1,372) - (1,372) (1,341) - (1,341) 2nd interim paid of 2.475p (2002: 2.475p) (1,372) - (1,372) (1,372) - (1,372) 3rd interim declared of 2.475p (2002: 2.475p) (1,387) - (1,387) (1,372) - (1,372) 4th interim proposed of 2.475p (2002: 2.475p) (1,387) - (1,387) (1,372) - (1,372) ---------- ---------- ---------- ---------- ---------- ---------- (5,518) - (5,518) (5,457) - (5,457) ---------- ---------- ---------- ---------- ---------- ---------- Transfer (from)/to reserves (74) 8,382 8,308 (49) (18,200) (18,249) ====== ====== ====== ====== ====== ====== Return/(loss) per ordinary share 9.79p 15.08p 24.87p 9.95p (33.49)p (23.54)p ====== ====== ====== ====== ====== ====== Return per zero dividend preference share - 4.94p 4.94p - 4.57p 4.57p in the Subsidiary ====== ====== ====== ====== ====== ====== Return/(loss) per unit 9.79p 20.02p 29.81p 9.95p (28.92)p (18.97)p ====== ====== ====== ====== ====== ====== The revenue columns of this statement represent the profit and loss accounts of the Group. -MORE- - 4- HENDERSON HIGH INCOME TRUST PLC Unaudited Preliminary Results for the year ended 31 December 2003 Group and Company Balance Sheets at 31 December 2003 Group Company Group Company 2003 2003 2002 2002 £'000 £'000 £'000 £'000 Fixed asset investments Listed in the United Kingdom 120,409 120,409 104,902 104,902 ---------- ---------- ---------- ---------- 120,409 120,409 104,902 104,902 ---------- ---------- ---------- ---------- Current assets Debtors 1,070 1,070 1,247 1,247 Bank balances and short term deposits 315 315 - - ---------- ---------- ---------- ---------- 1,385 1,385 1,247 1,247 Creditors: amounts falling due within one year (21,030) (21,030) (21,959) (21,959) ---------- ---------- ---------- ---------- Net current liabilities (19,645) (19,645) (20,712) (20,712) ---------- ---------- ---------- ---------- Total assets less current liabilities 100,764 100,764 84,190 84,190 Creditors: amounts falling due after one year Provision for amounts owed to group undertaking - (34,310) - (31,710) Zero dividend preference shares in the Subsidiary (34,310) - (31,710) - Bank loans (5,000) (5,000) - - ---------- ---------- ---------- ---------- Net assets 61,454 61,454 52,480 52,480 ====== ====== ====== ====== Capital and reserves Share capital 2,801 2,801 2,771 2,771 Capital redemption reserve 26,302 26,302 26,302 26,302 Other capital reserves Share premium 9,034 9,034 8,398 8,398 Realised reserve 14,600 14,600 18,556 18,556 Unrealised appreciation/(depreciation) 7,696 7,696 (4,642) (4,642) Revenue reserve 1,021 1,021 1,095 1,095 ---------- ---------- ---------- ---------- Equity shareholders' funds 61,454 61,454 52,480 52,480 ====== ====== ====== ====== Net asset value per ordinary share 109.68p 109.68p 94.68p 94.68p ====== ====== ====== ====== Funds attributable to: Ordinary shares 61,454 52,480 Zero dividend preference shares in the Subsidiary 34,310 31,710 ---------- ---------- 95,764 84,190 ====== ====== Net asset value per: Ordinary share 109.68p 94.68p Zero dividend preference share in the Subsidiary 65.22p 60.28p ---------- ---------- Unit 174.90p 154.96p ====== ====== - MORE - - 5 - HENDERSON HIGH INCOME TRUST PLC Unaudited Preliminary Results for the year ended 31 December 2003 Group Cash Flow Statement for the year ended 31 December 2003 2003 2003 2002 2002 £'000 £'000 £'000 £'000 Net cash inflow from operating activities 5,846 5,370 Servicing of finance Bank overdraft and loan interest paid (648) (924) Taxation Taxation recovered 13 133 Financial investment Purchase of investments (33,115) (35,307) Sale of investments 29,663 35,494 ----------- ----------- Net cash (outflow)/inflow from financial investment (3,452) 187 Equity dividends paid (5,487) (5,345) ----------- ----------- Net cash outflow before financing (3,728) (579) Financing Issue of shares 666 2,881 Increase/(decrease) in debt 3,629 (3,518) ----------- ----------- Net cash inflow/(outflow) from financing 4,295 (637) ---------- ---------- Increase/(decrease) in cash 567 (1,216) ====== ====== Reconciliation of net cash flow to movement in net debt Increase/(decrease) in cash as above 567 (1,216) Cash (inflow)/outflow from increase/(decrease) in debt (3,629) 3,518 Exchange movements (91) (36) ---------- ---------- Movement in net debt (3,153) 2,266 Net debt at 1 January (18,941) (21,207) ---------- ---------- Net debt at 31 December (22,094) (18,941) ====== ===== -MORE- - 6 - HENDERSON HIGH INCOME TRUST PLC Unaudited Preliminary Results for the year ended 31 December 2003 Notes: 1. Share Capital At 31 December 2003 there were in issue 56,028,865 (2002: 55,428,865) ordinary shares of 5p in the Company and 52,603,865 (2002: 52,603,865) zero dividend preference shares of 50p in the Subsidiary. During the year under review, 600,000 ordinary shares of 5p were allotted and issued for cash consideration as follows: Date Allottee No. of Shares Price per Share 30 September Apollo Nominees Limited 350,000 111.0p 3 October Winterflood Securities Limited 250,000 111.0p Therefore, as at 31 December 2003, there were 56,028,865 ordinary shares of 5p in issue (2002: 55,428,865). 2. Returns per Share a) Returns per ordinary share Revenue return per ordinary share is based on the earnings attributable to the ordinary shares of £5,444,000 (2002: £5,408,000) and on the 55,578,043 weighted average number of ordinary shares in issue during the year (2002: 54,346,536). Capital return per ordinary share is based on the net capital gain for the year of £8,382,000 (2002: capital loss of £18,200,000) and on the 55,578,043 weighted average number of ordinary shares in issue during the year (2002: 54,346,536). b) Returns per zero dividend preference share Capital return per zero dividend preference share reflects the predetermined growth in capital entitlement for the year of £2,600,000 (2002: £2,403,000) based on the 52,603,865 (2002: 52,603,865) zero dividend preference shares in issue. c) Returns per unit Revenue return per unit, each unit consisting of one ordinary share of 5p in the Company and one zero dividend preference share of 50p in the Subsidiary, amounts to 9.79p per unit (2002: 9.95p per unit). Capital return per unit, each unit consisting of one ordinary share of 5p in the Company and one zero dividend preference share of 50p in the Subsidiary, amounts to 20.02p per unit (2002: loss of 28.92p per unit). 3. Group Accounts The Group accounts consolidate the accounts of the Company and its wholly owned Subsidiary, Henderson High Income Trust Securities plc. -MORE- - 7 - HENDERSON HIGH INCOME TRUST PLC Unaudited Preliminary Results for the year ended 31 December 2003 4. Dividend A fourth interim dividend of 2.475p per ordinary share of 5p (2002: 2.475p per ordinary share of 5p) will be paid on 30 April 2004 to shareholders on the register on 13 April 2004. 5. 2003 Accounts The preliminary figures for the year ended 31 December 2003 are an extract from the latest accounts of the Group. These accounts have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them. 6. 2002 Accounts The figures and financial information for the year ended 31 December 2002 are extracted from the latest published accounts of the Group 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 statements under either section 237(2) or section 237(3) of the Companies Act 1985. 7. Annual Report and Annual General Meeting The full Annual Report and Accounts will be posted to shareholders in March and copies will be available from the Secretary at the Company's Registered Office, 4 Broadgate, London EC2M 2DA. The Annual General Meeting will be held on Wednesday 28 April 2004. - ENDS - For further information please contact: Alex Crooke Stephen Westwood Fund Manager Head of Investment Trusts Henderson High Income Trust plc Henderson Global Investors Telephone: 020 7818 4447 Telephone: 020 7818 5517 Vicki Staveacre Stephen Phillips Press Office Associate Director Henderson Global Investors Henderson Global Investors Telephone: 020 7818 4222 Telephone: 020 7818 6417 This information is provided by RNS The company news service from the London Stock Exchange

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