Interim Results

WITAN INVESTMENT COMPANY PLC 29 July 1999 WITAN INVESTMENT COMPANY PLC Unaudited Preliminary Results for the Half Year Ended 30 June 1999 Financial Highlights (per ordinary share) (Audited) Half year Half year Year ended ended ended 30 June 30 June 31 Dec 1999 1998 1998 pence pence pence Net asset value 478.5 432.4 423.9 Earnings 4.45 4.67 8.06 Dividends - Interims and 3.50 3.35 7.40 Final Performance (total return per ordinary share) 6 months 12 months base 100 base 100 Net asset value (i) 113.6 112.4 Share price (i) 110.0 108.6 Peer group (i) and (ii) 111.4 111.4 Benchmark (iii) 113.5 115.9 (i) Source: AITC (ii) Source: AITC size weighted average net asset value total return for the International : General sector (iii)Comprising the FTSE All-Share Index and the FT/S&P Actuaries World Index ex UK in the proportion 60:40 with net income reinvested. Dividend An interim dividend of 3.50p (1998: 3.35p) per ordinary share will be paid on 10 September 1999 to shareholders registered on 20 August 1999. The ex-dividend date will be 16 August 1999. WITAN INVESTMENT COMPANY PLC Unaudited Preliminary Results for the Half Year Ended 30 June 1999 Chairman's Statement I am delighted to report that our results for the first six months of the current year have exceeded the difficult benchmark we have set our managers. The rise in the interim dividend is again intended to reduce disparity with the final; shareholders should not assume a greater distribution by way of final dividend this year than the total of the second interim and final declared last year. We have seen sustained high real rates of return being achieved on diversified international equity portfolios for a period of time without precedent. The revaluation of shareholder capital over the last twenty years has been pretty general as the effects of freer markets and better management have impacted on the corporate cost base of most companies. The situation now is becoming more subtle; to escape intense margin competition companies are becoming increasingly dependent on finding new product and are having to become far more entrepreneurial, with varying degrees of success. Traditional managements are finding this sea-change difficult and some are paying substantial premiums to achieve it. This bodes well for the inventive and smaller businesses, but will inevitably lead to more rationalisation and some burnt fingers among the bigger. With the emphasis within our own portfolio on larger companies, stock selection will become paramount as some will find it more difficult to protect their margins than others. WITAN INVESTMENT COMPANY PLC Unaudited Preliminary Results for the Half Year Ended 30 June 1999 Statement of Total Return (incorporating the revenue account) for the half year ended 30 June 1999 (Unaudited) (Unaudited) Half year ended 30 June Half year ended 30 June 1999 1998 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Total capital gains from - 199,913 199,913 - 213,890 213,890 investments Income from fixed asset 24,073 - 24,073 24,087 - 24,087 investments Other interest receivable 982 - 982 3,295 - 3,295 and similar income ------- ------- ------- ------- ------- ------- Gross revenue and capital 25,055 199,913 224,968 27,382 213,890 241,272 gains Management fee (2,164) - (2,164) (2,031) - (2,031) Other administrative (1,097) - (1,097) (720) - (720) expenses ------- ------- ------- ------- ------- ------- Net return on ordinary activities before interest payable 21,794 199,913 221,707 24,631 213,890 238,521 and taxation Interest payable (2,243) - (2,243) (3,237) - (3,237) ------- ------- ------- ------- ------- ------- Net return on ordinary activities before taxation 19,551 199,913 219,464 21,394 213,890 235,284 Taxation on net revenue on (2,829) - (2,829) (3,830) - (3,830) ordinary activities ------- ------- ------- ------- ------- ------- Net return on ordinary activities after taxation 16,722 199,913 216,635 17,564 213,890 231,454 Dividends - preference (42) - (42) (42) - (42) shares ------- ------- ------- ------- ------- ------- Net return attributable to 16,680 199,913 216,593 17,522 213,890 231,412 ordinary shares Dividends - ordinary shares Interim payment of 3.50p (13,151) - (13,151)(12,568) - (12,568) (1998: 3.35p) ------- ------- ------- ------- ------- ------- Transfer to reserves 3,529 199,913 203,442 4,954 213,890 218,844 ===== ====== ====== ===== ====== ====== Return per ordinary share 4.45p 53.30p 57.75p 4.67p 56.99p 61.66p (note 1) ===== ===== ===== ===== ===== ===== The revenue columns of this statement represent the revenue accounts of the Company. WITAN INVESTMENT COMPANY PLC Unaudited Preliminary Results for the Half Year Ended 30 June 1999 Summary of Net Assets as at 30 June 1999 (Unaudited) (Unaudited) (Audited) 30 June 30 June 31 Dec 1999 1998 1998 £'000 £'000 £'000 Fixed asset investments Listed in United Kingdom 1,038,008 1,056,835 972,199 (note 2) Listed abroad 756,617 629,084 682,324 Unquoted at directors' 14,173 19,358 16,533 valuation ----------- ---------- ---------- 1,808,798 1,705,277 1,671,056 Net current 28,314 (33,905) (31,315) assets/(liabilities) (note 3) ----------- ---------- ---------- Total assets less current 1,837,112 1,671,372 1,639,741 liabilities Creditors: amounts falling due after more than one year (46,000) (46,000) (46,000) Provision for liabilities (192) (158) (123) and charges ----------- ---------- ---------- Total net assets 1,790,920 1,625,214 1,593,618 Cumulative preference (2,555) (2,555) (2,555) shares ----------- ---------- ---------- Net assets attributable to 1,788,365 1,622,659 1,591,063 ordinary shares ======= ======= ======= Net asset value per 478.5p 432.4p 423.9p ordinary share ===== ===== ===== Notes 1. Return per Ordinary Share Revenue return per ordinary share is calculated by dividing the net revenue return available for ordinary shareholders of £16,680,000 (half year ended 30 June 1998: £17,522,000) by the 375,052,266 (half year ended 30 June 1998: 375,303,094) weighted average number of ordinary shares in issue. Capital return per ordinary share is calculated by dividing the net capital return available for ordinary shareholders of £199,913,000 (half year ended 30 June 1998: £213,890,000) by the weighted average number of ordinary shares in issue, as shown above. 2. Fixed Asset Investments Valuations include exchange property valued at £nil (30 June 1998: £31,595,000 and 31 December 1998: £24,521,000) being the lower of exchange value and market value. 3. Net Current Assets/(Liabilities) Includes £nil (30 June 1998: £31,595,000 and 31 December 1998: £24,521,000) 6 1/4% exchangeable bonds 2008, after notice was given of early redemption of the outstanding bonds as at 28 February 1999. 4. Share Repurchases During the period the Company made authorised market purchases for cancellation of 1,550,000 of its own issued ordinary shares of 25p. Following these purchases for cancellation 373,753,094 ordinary shares of 25p are in issue. 5. Comparative Information The figures and financial information for the year ended 31 December 1998 are an extract from the latest published accounts and do not constitute 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. 6. Year 2000 Henderson plc and its subsidiaries ('Henderson'), which provides investment management, UK custodial, accounting, administrative and company secretarial services to Witan Investment Company plc, has instigated a corporate action programme, under Henderson board supervision, to establish the precise scope of the risks posed to Witan Investment Company plc by the consequences of the Year 2000 date change and to address those risks. Henderson's strategy is to validate that its computer systems achieve Year 2000 conformity (as defined by the British Standards Institute in its paper Disc PD2000- 1), and to require both its suppliers and the suppliers to Witan Investment Company plc to ensure that their computer systems achieve the same or an equivalent standard. Costs relating to the Year 2000 project are to be borne by Henderson. 7. Interim Report The interim report will be sent to shareholders in August 1999 and copies will be available thereafter from the Secretary at the Company's registered office, 3 Finsbury Avenue, London EC2M 2PA. For further information, please contact: James Budden Witan Investment Company plc Tel: 0171 410 3121 Norman Brown Henderson Investors Tel: 0171 410 3185 Gordon Puckey Biddick Harris Tel: 0171 377 6677

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