Interim Results

GARTMORE ASIA PACIFIC TRUST PLC ANNOUNCEMENT OF RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2005 The Directors announce the Company's unaudited results for the six months to 30 September 2005 as follows:- CHAIRMAN'S STATEMENT Asia Pacific stock markets were buoyant during the six months to 30 September 2005, rising by 21.0% as measured by our benchmark index the MSCI Asia Pacific (cum Japan) Index in sterling terms. Net asset value per share rose by 23.0% over the period and the discount to net asset value at which the company's shares trade closed modestly. Our short-term borrowings ranged between 8% and 15%, reflecting the Manager's expectations for the region's stock markets. The Company's good performance over the six months was due to asset allocation among markets, to stock selection and to gearing. Our heavy weighting in the Korean market and excellent stock selection in that market were particularly noteworthy. The economic background in the region remains generally benign. Economic growth, particularly in China has been encouragingly strong, and this has had a beneficial effect on the whole region. Even in Japan the economy appears to be picking up with a sharp increase in business investment which should lead to a sustained increase in consumption as real wages rise. Exports from the region have continued to grow in spite of the strength of the region's currencies following the revaluation of the Renmimbi in July. The Manager's investment strategy has continued to be characterised by the identification of undervalued shares throughout the region with an emphasis on companies that will benefit from rising capital expenditure and in due course a rise in domestic consumption too. Our exposure to the Japanese market is now over that of the Index and is concentrated in financial, retailing and real estate companies, as well as those producing capital goods. Korea remains a significant focus of investment with overweight positions in banking and retailing. Investment policy is described in greater detail in the Managers' report. We believe that the outlook for Asia Pacific stock markets remains good, albeit subject to continued growth in other areas, particularly the United States. Despite high oil prices and rising interest rates US economic growth seems to be continuing, so far without sparking a dangerous increase in inflation. TOTAL RETURN Six Months to 30th September 2005 Revenue Capital Total £'000 £'000 £'000 Income and Capital Profits/(Losses) Dividends and other income 306 - 306 Net profit on investments - 6,634 6,634 --------- --------- --------- Return before Expenses, Finance Costs 306 6,634 6,940 and Taxation Expenses Management fees (144) - (144) Other expenses (118) (137) (255) --------- --------- --------- Return before Finance Costs and 44 6,497 6,541 Taxation Finance Costs Interest payable (43) - (43) --------- --------- --------- Return on ordinary activities before 1 6,497 6,498 Taxation Taxation (41) - (41) --------- --------- --------- Return to Equity Shareholders after (40) 6,497 6,457 Taxation --------- --------- --------- Transferred from Reserves (40) 6,497 6,457 --------- --------- --------- Total Return per Ordinary share (0.2)p 38.9p 38.7p --------- --------- --------- TOTAL RETURN (RESTATED COMPARATIVE) Six Months to 30 September 2004 Revenue Capital Total £'000 £'000 £'000 Income and Capital Profits/(Losses) Dividends and other income 265 - 265 Net loss on investments - (3,310) (3,310) --------- --------- --------- Return before Expenses, Finance Costs 265 (3,310) (3,045) and Taxation Expenses Management fees (133) - (133) Other expenses (114) (114) (228) --------- --------- --------- Return before Finance Costs and 18 (3,424) (3,406) Taxation Finance Costs Interest payable (84) - (84) --------- --------- --------- Return on ordinary activities before (66) (3,424) (3,490) Taxation Taxation (26) - (26) --------- --------- --------- Return to Equity Shareholders after (92) (3,424) (3,516) Taxation --------- --------- --------- Transferred from Reserves (92) (3,424) (3,516) --------- --------- --------- Total Return per Ordinary share (0.6)p (20.5)p (21.1)p --------- --------- --------- NOTES The figures shown above are unaudited. The revenue column above for each year represents the Revenue account of the Company. All revenue and capital items derive from continuing activities. Total Return per Ordinary share is calculated on a return to Ordinary shareholders of £6,457,000 (2004, restated: negative total return of £ 3,516,000) and Ordinary shares in issue throughout of 16,686,767. BALANCE SHEET (unaudited) (Restated) At At 30 September 31 March 2005 2005 £'000 £'000 Fixed Assets Listed investments at valuation 37,968 30,915 --------- --------- Current Assets Debtors 2,725 2,016 Cash at bank 1,245 212 --------- --------- 3,970 2,228 Creditors: Amounts falling due within one year (7,356) (5,018) --------- --------- Net Current Liabilities (3,386) (2,790) --------- --------- Net Assets 34,582 28,125 --------- --------- 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 23,085 22,114 Capital reserve - unrealised 5,317 (209) Revenue reserve (513) (473) --------- --------- Equity Shareholders' Funds 34,582 28,125 --------- --------- Net Asset Value per Ordinary share 207.24p 168.55p --------- --------- NOTE The Net Asset Value per Ordinary share is calculated on attributable assets of £34,582,000 (March 2005, restated: £28,125,000) and 16,686,767 Ordinary shares in issue at each period end. CASH FLOW STATEMENT (Restated) Six Months to Six Months to 30 September 30 September 2005 2004 £'000 £'000 Revenue Activities Net dividends and interest received 370 256 from investments Interest received on deposits 6 4 Expenses paid (144) (191) --------- --------- 232 69 --------- --------- Servicing of Finance Interest paid (43) (84) --------- --------- Investment Activities Acquisitions of investments (48,232) (50,578) Disposals of investments 48,019 50,535 Expenses allocated to capital (118) (114) --------- --------- (331) (157) --------- --------- Financing Increase in borrowings 1,268 - --------- --------- 1,268 - --------- --------- Net Cash Inflow/(Outflow) 1,126 (172) --------- --------- NOTE The introduction of Financial Reporting Standard 26 - Financial Instruments: Measurement has required the Company's accounting policies on the valuation of investments and the recognition of transaction costs on investment purchases to be changed for the current year. The comparatives in the above financial information have been restated accordingly. In particular: * Investments have been designated as 'financial assets at fair value through profit or loss' and valued at fair value (bid price, or last traded price where no bid price is available) rather than mid-market value. The effect of this has been to reduce the valuation of investments, and hence net assets, at 30 September 2005 by £47,000 and at 31 March 2005 by £21,000. * Incidental transaction costs incurred on the purchase of investments which were previously added to the recorded cost of the investments have been recognised separately and expensed. This has no effect on net assets or total return but credits capital reserve - unrealised and reduces capital reserve - realised by £82,000 at 30 September 2005 and £78,000 at 31 March 2005. With the exception of these changes the Company's accounting policies have not varied from those described in the Report and Accounts for the year to 31 March 2005. The above financial information is unaudited and does not constitute statutory accounts under the Companies Act 1985. The financial information for the year ended 31 March 2005 has been extracted, subject to the restatements outlined above, from the latest published audited financial statements, which have been filed with the Registrar of Companies. The report of the Auditors on those accounts contained no qualification or statement under Section 237(2) or (3) of the Companies Act 1985. INTERIM REPORT The Interim Report for the six months to 30 September 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 and for download from their web site: www.gartmore.co.uk GARTMORE INVESTMENT LIMITED SECRETARIES 14 November 2005

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