Final Results

GARTMORE ASIA PACIFIC TRUST PLC ANNOUNCEMENT OF RESULTS FOR THE YEAR TO 31 MARCH 2005 The Directors announce the Company's unaudited results for the year to 31 March 2005 as follows:- HIGHLIGHTS - Net Asset Value per Ordinary share decreased by 5.4%, to 168.67p, over the year to 31 March 2005, by comparison with an increase of 0.1% in the MSCI AC Asia Pacific (cum Japan) Index (in sterling terms) - Mid-market price per Ordinary share decreased by 5.0% over the year - Discount to Net Asset Value has narrowed to 7.1% CHAIRMAN'S STATEMENT Background Rising US interest rates, a potential slowdown in Chinese growth and a volatile, and increasing, oil price all weighed on Asia Pacific markets to some degree during the year. Nevertheless, a number of economies showed robust growth including those of Indonesia, Malaysia and Thailand, as well as Hong Kong. In addition, South Korea and Taiwan showed signs of recovery in domestic demand to add to their strong export sectors. Somewhat disappointingly, however, Japan's economy once again lost momentum during the second and third quarters of 2004, as consumption failed to augment export strength. Performance The Company underperformed its benchmark over the review year. Net Asset Value per Ordinary Share fell by 5.4% to 168.67p, compared with a gain of 0.1% in its benchmark, the MSCI Asia Pacific (cum Japan) Index in sterling terms. The Company's share price fell by 5.0% to 156.75p. There was, however, a modest narrowing of the discount of the share price to net asset value. Meanwhile, your Company's gearing ran between a low of 6% early in the year up to 16% as confidence recovered. The underperformance was largely caused by our exposure to growth stocks early in the year under review. Unfortunately, the market turned against these stocks on concerns that growth in China would not be as strong as previously expected. However, throughout the period, the Managers remained convinced that the market was underestimating the strength of growth worldwide, not least in China, and consequently retained the Company's bias towards growth stocks. Outlook The Company's exposure to the Japanese market has been increased as we believe it will produce a good return over the remainder of the calendar year. Australian equities have been avoided as we think the market faces rising interest rates and declining commodity prices, while consumption is under threat from falling house prices. As a key engine of global growth and regional change the continued rapid rate of growth in China's economy is likely to continue to exert a positive influence on regional stock markets. Wider afield, recoveries in Thailand and Malaysia are expected to be matched by those of the larger economies of Korea and Taiwan. Markets in the Asia Pacific region remain volatile, reflecting the underlying risks of investing in the region. Nevertheless, Asian equities have lagged those of wider developed and emerging markets over the year under review, despite their strong fundamentals. Whether or not there is an early revaluation of the renmimbi, we believe there will be a re-rating of stocks in this region and, in particular, a return to favour of growth stocks. As ever in such an investment environment the Managers will seek to identify companies with strong fundamentals that will be able to deliver superior returns going forward. STATEMENT OF TOTAL RETURN Year to 31 March 2005 Revenue Capital Total Return £'000 £'000 £'000 Income and Capital Profits/(Losses) Dividends and other income 551 - 551 Net profit/(loss) on investments - (1,528) (1,528) -------- ----------- ----------- Return before Expenses, Finance Costs 551 (1,528) (977) and Taxation Expenses Management fee (230) - (230) Other fees and expenses (159) (46) (205) -------- ----------- ----------- Return before Finance Costs and 162 (1,574) (1,412) Taxation Finance Costs Interest payable (150) - (150) -------- ----------- ----------- Return on Ordinary Activities before 12 (1,574) (1,562) Taxation Taxation (58) - (58) -------- ----------- ----------- Return to Equity Shareholders after (46) (1,574) (1,620) Taxation -------- ----------- ----------- Transferred from Reserves (46) (1,574) (1,620) -------- ----------- ----------- Total Return per Ordinary share (0.28)p (9.43)p (9.71)p STATEMENT OF TOTAL RETURN (COMPARATIVE) Year to 31 March 2004 Revenue Capital Total Return £'000 £'000 £'000 Income and Capital Profits / (Losses) Dividends and other income 696 - 696 Net profit/(loss) on investments - 19,161 19,161 -------- ----------- ----------- Return before Expenses, Finance Costs 696 19,161 19,857 and Taxation Expenses Management fees (347) (75) (422) Other fees and expenses (230) 35 (195) -------- ----------- ----------- Return before Finance Costs and 119 19,121 19,240 Taxation Finance Costs Interest payable (230) - (230) -------- ----------- ----------- Return on Ordinary Activities before (111) 19,121 19,010 Taxation Taxation (47) 251 204 -------- ----------- ----------- Return to Equity Shareholders after (158) 19,372 19,214 Taxation -------- ----------- ----------- Transferred from Reserves (158) 19,372 19,214 -------- ----------- ----------- Total Return per Ordinary share (0.52)p 63.62p 63.10p NOTES The revenue column above for each year represents the Revenue Account of the Company. All revenue and capital items derive from continuing activities. No operations were acquired or discontinued during the year. Management fees and loan finance costs have been charged 100% to the Revenue account. In accordance with the Statement of Recommended Practice for the Financial Statements of Investment Trust Companies, the performance fee, when payable, is allocated to capital reserve. Total Return per Ordinary share has been calculated on the negative return for the year of £1,620,000 (2004: positive return of £19,214,000) and a weighted average of Ordinary shares in issue during the year of 16,686,767 (2004: 30,450,069). Revenue Return per Ordinary share has been calculated on the negative return to Ordinary shareholders of £46,000 (2004: negative £158,000) and a weighted average of Ordinary shares in issue during the year of 16,686,767 (2004: 30,450,069). Capital Return per Ordinary share has been calculated on the negative return to Ordinary shareholders of £1,574,000 (2004: positive £19,372,000) and a weighted average of Ordinary shares in issue during the year of 16,686,767 (2004: 30,450,069). BALANCE SHEET At At 31 March 31 March 2005 2004 £'000 £'000 Fixed Assets Listed investments at valuation 30,936 32,568 -------- -------- 30,936 32,568 Current Assets Debtors - amounts receivable within one 2,016 179 year Cash at bank 212 375 -------- -------- 2,228 554 Creditors - amounts payable within one (5,018) (3,356) year ----------- ----------- Net Current Liabilities (2,790) (2,802) ----------- ----------- Net Assets 28,146 29,766 ----------- ----------- Capital and Reserves Called-up share capital 1,669 1,669 Capital redemption reserve 2,063 2,063 Special capital reserve 2,961 2,961 Capital reserve - realised 22,192 16,782 Capital reserve - unrealised (266) 6,718 Revenue reserve (473) (427) ----------- ----------- Equity Shareholders' Funds 28,146 29,766 ----------- ----------- Net Asset Value per Ordinary share 168.67p 178.38p ----------- ----------- NOTES The Net Asset Value per Ordinary share is calculated on net assets of £ 28,146,000 (2004: £29,766,000) and 16,686,767 (2004: 16,686,767) Ordinary shares in issue at the year end. CASH FLOW STATEMENT Year to Year to 31 March 31 March 2005 2004 £'000 £'000 Revenue Activities Dividends and interest received from 417 729 investments Interest received on deposits 6 37 Expenses paid (435) (626) -------- -------- (12) 140 -------- -------- Servicing of Finance Interest paid (150) (267) --------- --------- Taxation Taxation received - 245 -------- -------- Investment Activities Acquisitions of investments (111,022) (78,125) Disposals of investments 111,287 108,984 Indian balances excluded - (372) Capital (expenditure)/income (131) 65 ------------ ------------ 134 30,552 ------------ ------------ Financing Shares repurchased (including expenses) - (28,388) Loans repaid (102) (2,198) ---------- ---------- (102) (30,586) ---------- ---------- Net Cash (Outflow)/Inflow (130) 84 --------- --------- Annual General Meeting The Company's Annual General Meeting for 2005 will be held at Gartmore House, 8 Fenchurch Place, London EC3M 4PB on Monday, 25 July 2004, at 12 noon. The Directors and the Managers will be available to answer questions and discuss the Company's performance after the Meeting. Annual Report and Accounts The Report and Accounts for the year ended 31 March 2005 will be posted to shareholders shortly. Copies will be available from the offices of Gartmore Investment Limited, Gartmore House, 8 Fenchurch Place, London EC3M 4PB. NOTE The above financial information for the year ended 31 March 2005 does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The statutory accounts for the year ended 31 March 2005 will be finalised on the basis of the financial information presented by the directors in this preliminary announcement and will be delivered to the Registrar of Companies thereafter. The comparative financial information is based on statutory accounts for the period ended 31 March 2004 and the preliminary announcement is prepared on the same basis as set out in that previous year's annual accounts. The 2004 statutory accounts, upon which the Auditors issued an unqualified opinion that did not contain statements under s237 (2) and (3) of the Companies Act 1985, have been delivered to the Registrar of Companies. GARTMORE INVESTMENT LIMITED SECRETARIES 6 June 2004

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