Interim Results

Witan Investment Trust PLC 1 August 2002 WITAN INVESTMENT TRUST PLC HENDERSON GLOBAL INVESTORS 1 August 2002 WITAN INVESTMENT TRUST PLC Unaudited Interim Results for the Half Year ended 30 June 2002 Financial Highlights (per ordinary share) (Unaudited) (Unaudited) (Audited ) Half year ended Half year ended Year ended 30 June 2002 30 June 2001 31 December 2001 pence pence pence Share price 352.5 442.5 391.0 Net asset value 382.6 484.2 429.3 Earnings 5.21 5.13 8.40 Dividends 3.65 3.60 7.95 Performance (per ordinary share) 6 months 12 months % return % return Share price (9.85) (20.34) Net asset value (10.88) (20.98) Benchmark * (11.69) (19.49) * The benchmark comprises the FTSE All-Share Index and the FTSE World (ex UK) Index in the proportion 60:40 (capital change only). Dividend An interim dividend of 3.65p (2001: 3.60p) per ordinary share will be paid on 6 September 2002 to shareholders registered on 16 August 2002. The ex-dividend date will be 14 August 2002. -MORE- -2- WITAN INVESTMENT TRUST PLC Unaudited Interim Results for the Half Year ended 30 June 2002 The Chairman's Statement: It is little consolation to shareholders to be told by their Chairman that during the six month period under review the Trust has outperformed its benchmark when its net asset value per share has fallen 10.88%. Worse still, since the end of December 2000 to yesterday (30 July 2002) the fall has been 35.6%. For the last year we have warned shareholders of a likely further period of market re-rating, partly due to an increase in perceived equity risk and partly due to more difficult trading conditions. The recent volatility in markets, however, has been greatly exaggerated by fears of further exposures of corporate wrongdoing. Whilst there may have been some massive write-downs of earnings in a small number of large North American companies, as well as some dilution in earnings forecasts due to stock options and management greed, there is no evidence to suggest that shareholder value has been undermined to the extent of the present market correction. On the positive side, we expect to see some dividend growth for the year (in the U.K. it could be about 3%) which, together with our change in accountancy policy last year, allows us to increase our distribution by a small amount at this interim stage and hopefully by a further modest amount at the year end. In the meantime we will continue to manage our gearing and our discount, and continue to be highly stock selective in what we own. Lord Faringdon 31 July 2002 -MORE- -3- WITAN INVESTMENT TRUST PLC Unaudited Interim Results for the Half Year ended 30 June 2002 Statement of Total Return (incorporating the revenue account) for the half year ended 30 June 2002 (Unaudited) (Unaudited) (Audited) Half year ended Half year ended Year ended 30 June 2002 30 June 2001 31 December 2001 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Total capital losses from investments - (163,753) (163,753) - (131,919) (131,919) - (316,911) (316,911) Income from fixed asset investments 21,151 - 21,151 20,939 - 20,939 35,894 - 35,894 Other interest receivable and similar income 1,024 - 1,024 1,512 - 1,512 2,369 - 2,369 --------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- --------- Gross revenue and capital losses 22,175 (163,753) (141,578) 22,451 (131,919) (109,468) 38,263 (316,911) (278,648) Management fee (509) (1,968) (2,477) (509) (1,526) (2,035) (1,022) (3,065) (4,087) (note 3) Other administrative expenses (1,324) - (1,324) (1,336) - (1,336) (2,645) - (2,645) --------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- --------- Net return/(loss) on ordinary activities before interest payable and taxation 20,342 (165,721) (145,379) 20,606 (133,445) (112,839) 34,596 (319,976) (285,380) Interest payable (1,263) (3,790) (5,053) (1,263) (3,792) (5,055) (2,533) (7,599) (10,132) --------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- --------- Net return/(loss) on ordinary activities before taxation 19,079 (169,511) (150,432) 19,343 (137,237) (117,894) 32,063 (327,575) (295,512) Taxation on net return on ordinary activities (714) - (714) (1,261) 681 (580) (2,429) 1,514 (915) (note 4) --------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- --------- Net return/(loss) on ordinary activities after taxation 18,365 (169,511) (151,146) 18,082 (136,556) (118,474) 29,634 (326,061) (296,427) Dividends - preference shares (42) - (42) (42) - (42) (83) - (83) --------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- --------- Attributable to the ordinary shareholders 18,323 (169,511) (151,188) 18,040 (136,556) (118,516) 29,551 (326,061) (296,510) --------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- --------- Dividends - ordinary shares Interim payment of 3.65p (2001: 3.60p) (12,836) - (12,836) (12,661) - (12,661) (12,654) - (12,654) Final 2001: 4.35p - - - - - - (15,298) - (15,298) --------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- --------- (12,836) - (12,836) (12,661) - (12,661) (27,952) - (27,952) --------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- --------- Transfer to/(from) reserves 5,487 (169,511) (164,024) 5,379 (136,556) (131,177) 1,599 (326,061) (324,462) ========= ========== ========== ========== ========== ========== ========== ========== ========= Return/(loss) per ordinary share 5.21p (48.20)p (42.99)p 5.13p (38.83)p (33.70)p 8.40p (92.71)p (84.31)p (notes 1 and 4) ========= ========== ========== ========== ========== ========== ========== ========== ========= The revenue columns of this statement represent the revenue accounts of the Company. -MORE- -4- WITAN INVESTMENT TRUST PLC Unaudited Interim Results for the Half Year ended 30 June 2002 Balance Sheet at 30 June 2002 (Unaudited) (Unaudited) (Audited) 30 June 2002 30 June 2001 31 December 2001 £'000 £'000 £'000 Fixed asset investments Listed in the United Kingdom (at market value) 807,483 1,009,374 933,538 Listed abroad (at market value) 615,678 763,763 657,787 Unquoted (at directors' valuation) 30,132 38,976 32,586 ------------- ------------ ------------ 1,453,293 1,812,113 1,623,911 ------------- ------------ ------------ Current assets Debtors 30,734 15,712 6,154 Cash at bank and short term deposits 25,186 53,291 45,931 ------------- ------------ ------------ 55,920 69,003 52,085 Creditors : amounts falling due within one year (16,879) (31,552) (19,677) ------------- ------------ ------------ Net current assets 39,041 37,451 32,408 ------------- ------------ ------------ Total assets less current liabilities 1,492,334 1,849,564 1,656,319 Creditors: amounts falling due after more (144,136) (144,057) (144,097) than one year ------------ ------------ ------------ Total net assets 1,348,198 1,705,507 1,512,222 ======== ======== ======== Capital and reserves Called-up share capital Preference shares 2,555 2,555 2,555 Ordinary shares 87,921 87,921 87,921 Share premium 16,237 16,237 16,237 Other capital reserves Redemption reserve 5,905 5,905 5,905 Capital reserve - realised 1,061,478 1,128,080 1,072,787 Capital reserve - unrealised 148,881 441,295 307,083 Revenue reserve 25,221 23,514 19,734 ------------ ------------ ------------ Shareholders' funds (including non-equity 1,348,198 1,705,507 1,512,222 interests of £2,555,000) ======== ======== ======== Net asset value per ordinary share 382.6p 484.2p 429.3p ======== ======== ======== -MORE- -5- WITAN INVESTMENT TRUST PLC Unaudited Interim Results for the Half Year ended 30 June 2002 Cash Flow Statement for the half year ended 30 June 2002 (Unaudited) (Unaudited) (Audited) Half year ended Half year ended Year ended 30 June 2002 30 June 2001 31 December 2001 £'000 £'000 £'000 Net cash inflow from operating activities 17,113 18,398 31,543 Net cash outflow from servicing of finance (5,071) (5,074) (10,135) Net tax recovered 285 392 573 Net cash outflow from financial investment (17,300) (14,550) (17,220) Equity dividends paid (15,299) (14,947) (27,601) Management of liquid resources 5,000 (15,000) 5,000 ------------ ------------ ------------ Net cash outflow before financing (15,272) (30,781) (17,840) Net cash outflow from financing - (56) (56) ------------ ------------ ------------ Decrease in cash (15,272) (30,837) (17,896) ------------ ------------ ------------ Reconciliation of operating revenue to net cash inflow from operating activities Net revenue before interest payable and taxation 20,342 20,606 34,596 (Increase)/decrease in accrued income (703) 623 1,434 (Increase)/decrease in debtors (33) (22) 26 Increase/(decrease) in creditors 399 (176) 129 Management expenses charged to capital (1,968) (1,526) (3,065) Tax deducted at source (924) (982) (1,390) Scrip dividends included in investment income - (125) (187) ------------ ------------ ------------ 17,113 18,398 31,543 ------------ ------------ ------------ Reconciliation of net cash flow to movement in net debt Decrease in cash as above (15,272) (30,837) (17,896) Cash (inflow)/outflow from management of liquid resources (5,000) 15,000 (5,000) Cash outflow from debt financing - 56 56 ------------ ------------ ------------ Change in net debt resulting from cash flows (20,272) (15,781) (22,840) Exchange movements (473) (529) (830) Increase in valuation of debt (39) (110) (150) ------------ ------------ ------------ Movement in net debt in the period (20,784) (16,420) (23,820) Net debt at the beginning of the period (98,166) (74,346) (74,346) ------------ ------------ ------------ Net debt at the end of the period (118,950) (90,766) (98,166) ------------ ------------ ------------ Represented by: Bank balances and short term deposits 25,186 53,291 45,931 Debt falling due after more than one year (144,136) (144,057) (144,097) ------------ ------------ ------------ (118,950) (90,766) (98,166) ------------ ------------ ------------ -MORE- -6- WITAN INVESTMENT TRUST PLC Unaudited Interim Results for the Half Year ended 30 June 2002 Notes 1. Return/(loss) per ordinary share The revenue return per ordinary share is based on the earnings attributable to the ordinary shares of £18,323,000 (half year ended 30 June 2001: £18,040,000; year ended 31 December 2001: £29,551,000) and on the weighted average number of ordinary shares of 25p each in issue during the period of 351,682,244 (half year ended 30 June 2001 and year ended 31 December 2001: 351,682,244). The capital return per ordinary share is based on the net capital losses of £169,511,000 (half year ended 30 June 2001 £136,556,000; year ended 31 December 2001: £326,061,000) and on the weighted average number of ordinary shares in issue, as stated above. 2. Issue share capital At 30 June 2002 there were 351,682,244 ordinary shares in issue (30 June 2001 and 31 December 2001: 351,682,244). 3. Performance fee The total management fee for the half year ended 30 June 2002 includes an accrual of £441,000 (inclusive of irrecoverable VAT) for a performance fee. This reflects the performance of the Company's net asset value per share relative to that of its benchmark over the half year ended 30 June 2002. A performance fee will crystallise only to the extent of any outperformance over the full accounting year ending 31 December 2002. The accrued performance fee has been allocated wholly to capital, reflecting the fact that it is calculated by reference to capital performance only. 4. Allocation of tax relief With effect from 1 January 2002, the tax relief available to the Company on its management, administrative and finance costs is allocated between revenue and capital according to the 'marginal basis' whereby revenue expenses are matched first against taxable income arising in the revenue account; the effect of this is that in the half year ended 30 June 2002 all the tax relief was allocated to revenue. In 2001 the tax relief was allocated according to the 'proportional basis'. Had the comparative figures been calculated on the same basis, the revenue return for the half year ended 30 June 2001 would have been 5.29p rather than 5.13p (year ended 31 December 2001: 8.77p rather than 8.40p). 5. Dividend The directors have declared an interim dividend of 3.65p (2001: 3.60p) per ordinary share, payable on 6 September 2002 to shareholders registered on 16 August 2002. The shares will be quoted ex-dividend on 14 August 2002. 6. Interim accounts The interim accounts have been neither audited nor reviewed by the auditors. -MORE- -7- WITAN INVESTMENT TRUST PLC Unaudited Interim Results for the Half Year ended 30 June 2002 7. Comparative information The figures and financial information for the year ended 31 December 2001 are extracted 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. 8. Interim Report The interim report will be sent to shareholders in August 2002 and copies will be available thereafter from the Secretary at the Company's registered office, 4 Broadgate, London EC2M 2DA. -ENDS- For further information, please contact: James Robinson Witan Investment Trust plc Tel: 020 7818 4312 James Budden Witan Investment Trust plc Tel: 020 7818 3121 Gordon Puckey Quill Communications Tel: 020 7763 6970 END This information is provided by RNS The company news service from the London Stock Exchange

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