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UK Select Trust Ld (UKT)

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Wednesday 03 March, 2004

UK Select Trust Ld

Final Results & Dividend

UK Select Trust Limited
03 March 2004


UK Select Trust Limited

FINAL RESULTS AND PROPOSED DIVIDEND

The unaudited figures for the year ended 31 December 2003 are as follows:

Revenue
                                         31 December 2003    31 December 2002
                                              £'000's             £'000's

Dividends and interest                               1,500               1,733
Commissions                                              -                   2
Revenue                                              1,130               1,276
Amount absorbed by dividends                        (1,190)             (1,171)
Amount transferred (from) to
revenue reserves -                                     (60)                105

Interim and final dividend per ordinary
share                                                                     2.80p
                                                      2.83p
Earnings per ordinary share                           2.69p               2.72p

Capital
                                         31 December 2003    31 December 2002
                                              £'000's             £'000's

Market value of investments                         43,727              35,836
Total net assets (ex-dividend)                      38,127              31,845
Net asset value per ordinary share
10p each (ex dividend)                               90.71p              76.10p

The directors propose that ordinary shareholders should be offered the right to
elect to receive new ordinary shares in lieu of the cash final dividend.

The Directors have decided to declare a final dividend of 2.00p (2002: 1.97p)
for the year ended 31 December 2003, making a total dividend of 2.83p (2002:
2.80p).

The final dividend will be payable on 27 April 2004 on such of the ordinary
shares in respect of which the holders had not, prior to 12 April 2004, elected
to receive an allotment of new ordinary shares.

The record date for the final dividend in respect of the year ended 31 December
2003 is 12 March 2004.

CHAIRMAN'S STATEMENT

I am pleased to report to shareholders that 2003 was a successful year for the
Company, which produced a net asset total return of 22.1%. This compared
favourably to the FTSE All-Share Index, which posted a 20.9% rise over the year
on a total return basis. The Company benefited from both the strong performance
of its underlying equity portfolio and from the positive effect of financial
gearing in a rising stock market.

The discount at which shares in the Company trade relative to their net asset
value narrowed over the period, closing the year at 9.1% and has narrowed still
further since the year end. During the year the Investment Manager bought back
748,000 shares at an average discount of 9.53%, and it remains the policy of the
Board to buy back for cancellation at least as many shares as are issued each
year for the scrip dividend should suitable opportunities arise.

Earnings per share for the year amounted to 2.69p (2002: 2.72p) and, on behalf
of the Board, I am pleased to recommend a final dividend of 2.00p (2002: 1.97p).

The Investment Manager continued to reduce the number of holdings within the
Company during the year. The Board is supportive of this policy of gradual
migration toward a more concentrated portfolio, which is consistent with the
'select' nature of the Trust.

The first quarter of 2003 was dominated by the escalating crisis in Iraq, with
the spectre of military conflict weighing heavily on investor sentiment towards
equity markets. However, as it became clear that the full-scale military action
would be less protracted than many market commentators had feared, equity prices
started to rally.

This recovery continued to gather momentum through the spring and summer,
fuelled by improving economic and corporate news flow. Against this background,
the more economically sensitive areas of the market such as Media, Technology
and Leisure generated the strongest returns for investors. This reflected the
belief that earnings in companies exposed to the economic cycle were set for a
rebound from their depressed levels. The final quarter of the year saw a sharp
increase in merger and acquisition activity providing renewed impetus for equity
markets.

Following the sharp rise in UK equity indices over the last year, share prices
in many sectors are already discounting a significant recovery in earnings. A
continued improvement in both corporate and economic data releases will be
required to sustain this upward trajectory in equity prices. However, the Board
remains confident that the Company is well positioned to exploit long-term
investment opportunities.

APPROVED BY THE BOARD

3 March 2004

                      This information is provided by RNS
            The company news service from the London Stock Exchange