Final Results

Chairman's Statement Performance The total return on the net assets of Temple Bar during 2010 was 15.2%, which compares with a total return for the FTSE All-Share Index of 14.5%. The return achieved comprises a small underlying relative portfolio outperformance, more than offset by the capital gearing of the Trust. In share price terms this outcome was enhanced by the discount on Temple Bar's shares narrowing over the year. It is pleasing to report that over the past five years the Portfolio Manager continues significantly to outperform the benchmark established by the Board. 2010 was a much better year for dividends that initially had been expected, with dividend growth from many of the stocks in the portfolio. In common with most other income focused funds, overall income growth was affected by the loss of the BP dividend following the tragic accident in the Gulf of Mexico. This contributed to a post-tax earnings decline of 5.5% in 2010. The Board is recommending a final dividend of 23.7p, to produce a total increase of 2.1% for the year. If approved, this dividend will be payable on 31 March 2011 to shareholders on the register at 18 March 2011. This would be the 27th consecutive year in which the dividend has been increased. In recent years the relationship between the size of the interim and final dividends has become unbalanced. Accordingly, it is the Board's intention to enhance the next interim dividend and, correspondingly, to reduce the next final dividend in order to bring payments to shareholders into better alignment. The Temple Bar dividend was not fully covered by revenue in 2010, with £1.3 million being transferred from the revenue reserve. Compared with the previous year's surplus of £0.2million, the shortfall arose from a combination of the loss of the BP dividend (c£1.3 million) and the elimination of the one-off benefit in 2009 of the refund of VAT payments and related interest (£1.6 million), partially offset by an increase in other dividend income of £1.4 million. The loss of the BP dividend was only temporary, with payments due to be resumed at approximately 50% of the former level during the current year. The Board considers that the use of the revenue reserve to sustain dividends to shareholders during such an exceptional and temporary event to be justified. After this transfer and post payment of the final dividend, the revenue reserve represents about 88% of the 2010 annual dividend payment. At the year-end, capital gearing, defined as gross assets dividend by net assets, was 112%. However, cash and near cash assets together with the short-dated bond portfolio are currently offsetting virtually all of this gearing. Board of Directors As indicated in my statement last year, Field Walton retired from the Board in March 2010 after 27 years of loyal service. I am pleased to report that we have appointed Arthur Copple as an additional director. He has a wealth of experience of the investment trust sector and I am confident that he will make a substantial contribution in the years to come. In common with all the directors on the Board, Arthur is fully independent of the management company. Annual General Meeting The 2011 Annual General Meeting will be held at 2 Gresham Street, London EC2V 7QP on Tuesday 29 March 2011 at 11 a.m. I look forward to meeting as many of you as are able to attend. In addition to the formal business of the meeting the Portfolio Manager, Alastair Mundy, will make a presentation reviewing the past year and commenting on the outlook. He will also be available to answer any questions Outlook The Board continues to evaluate the potential revenue generation of the portfolio by assessing a number of scenarios. As usual, the high number of variables that drive the forecasts results in a wide range of possible outcomes, but it is clear that the portfolio needs to eliminate any deficit between dividends received and dividends paid as a priority. The Portfolio Manager, and his team, remain committed to their in-depth, stock specific contrarian approach to investing. Their excellent long-term performance is a reflection of their dedication to their roles. They will continue to adhere to their disciplined process in very variable market conditions. John Reeve Chairman 23 February 2011 TWENTY LARGEST INVESTMENTS as at 31 December 2010 Company Supersector Place of Valuation listing 31 December 2010 £'000 % Royal Dutch Shell Oil & Gas UK 47,255 7.88 HSBC Banks UK 43,538 7.26 Signet Jewelers Retail UK/USA 39,958 6.66 BP Oil & Gas UK 39,855 6.64 GlaxoSmithKline Health Care UK 38,351 6.39 Unilever Food & Beverage UK 34.439 5.74 Vodafone Telecommunications UK 28,657 4.78 Travis Perkins Industrial Goods & UK 24,282 4.05 Services AstraZeneca Health Care UK 23,732 3.96 BT Telecommunications UK 20,166 3.36 British American Tobacco Personal & UK 16,444 2.74 Household Goods Investec Sterling N/a Ireland 14,180 2.36 Liquidity Fund Charter International Industrial Goods & UK 14,097 2.35 Services Centrica Utilities UK 11,480 1.91 Invensys Technology UK 10,707 1.79 UK Commercial Property Real Estate UK 10,668 1.78 Trust Grafton Group Industrial Goods & UK 9,487 1.58 Services Pfizer Health Care USA 9,132 1.52 Computacenter Technology UK 8,884 1.48 Market Vectors - ETF Gold Basic Resources USA 8,804 1.47 Miners 454,116 75.70 All securities in any one company are treated as one investment. Consolidated Statement of Comprehensive Income for the year ended 31 December 2010 2010 2009 Revenue Capital Revenue Capital return return Total Return return Total £'000 £'000 £'000 £'000 £'000 £'000 INVESTMENT 22,030 - 22,030 20,988 - 20,988 INCOME Other 26 26 1,081 - 1,081 operating income 22,056 - 22,056 22,069 - 22,069 GAINS ON INVESTMENTS Gains on - 55,254 55,254 - 131,412 131,412 investments held at fair value through profit and loss Total income 22,056 55,254 77,310 22,069 131,412 153,481 EXPENSES Management (776) (1,162) (1,938) (660) (990) (1,650) fees Other expenses (534) (473) (1,007) (537) (310) (847) VAT refund - - - 976 880 1,856 Profit before 20,746 53,619 74,365 21,848 130,992 152,840 finance costs and tax Finance costs (1,831) (2,746) (4,577) (1,831) (2,746) (4,577) PROFIT BEFORE 18,915 50,873 69,788 20,017 128,246 148,263 TAX Tax - - - - - - PROFIT FOR THE 18,915 50,873 69,788 20,017 128,246 148,263 YEAR EARNINGS PER 32.08p 86.28p 118.36p 33.98p 217.70p 251.68p SHARE (BASIC & DILUTED) The total column of this statement represents the Group's Income Statement prepared in accordance with IFRS. The supplementary revenue return and capital return columns are both prepared under guidance issued by the Association of Investment Companies. All items in the above statement derive from continuing operations. No operations were acquired or discontinued during the year. There are no minority interests. Consolidated Statement of Changes in Equity for the year ended 31 December 2010 Ordinary Share Capital Capital share premium reserve reserve Retained Total capital account realised unrealised earnings equity £'000 £'000 £'000 £'000 £'000 £'000 BALANCE AT 1 14,647 6,533 372,648 (64,935) 30,127 359,020 JANUARY 2009 CHANGES IN EQUITY FOR 2009 Profit for the - - (18,555) 146,801 20,017 148,263 year 14,647 6,533 354,093 81,866 50,144 507,283 Dividends paid - - - - (19,362) (19,362) to equity shareholders Issue of share 93 1,974 - - - 2,067 capital BALANCE AT 31 14,740 8,507 354,093 81,866 30,782 489,988 DECEMBER 2009 CHANGES IN EQUITY FOR 2010 Profit for the - - 310 50,563 18,915 69,788 year 14,740 8,507 354,403 132,429 49,697 559,776 Dividends paid - - - - (19,754) (19,754) to equity shareholders BALANCE AT 31 14,740 8,507 354,403 132,429 29,443 540,022 DECEMBER 2010 Consolidated Statement of Financial Position as at 31 December 2010 31 December 2010 31 December 2009 £'000 £'000 £'000 £'000 NON-CURRENT ASSETS 599,878 541,611 Investments held at fair value - - through profit or loss Investment in subsidiary company 599,878 541,611 CURRENT ASSETS Cash and cash equivalents 1,974 8,899 Other receivables 3,202 3,462 5,176 12,361 TOTAL ASSETS 605,054 553,972 CURRENT LIABILITIES Other payables (1,610) (580) TOTAL ASSETS LESS CURRENT 603,444 553,392 LIABILITIES NON-CURRENT LIABILITIES Interest bearing borrowings (63,422) (63,404) NET ASSETS 540,022 489,988 EQUITY ATTRIBUTABLE TO EQUITY HOLDERS Ordinary share capital 14,740 14,740 Share premium 8,507 8,507 Capital reserve - realised 354,403 354,095 Capital reserve - unrealised 132,429 81,864 Retained earnings 29,943 30,782 540,022 489,988 TOTAL EQUITY 540,022 489,988 NET ASSET VALUE PER SHARE 915.89p 831.03p Consolidated Statement of Cash Flows for the year ended 31 December 2010 2010 2009 £'000 £'000 £000 £'000 CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax 69,788 148,263 Adjustments for: Purchases of investments¹ (97,611) (193,313) Sales of investments¹ 95,608 187,581 (2,003) (5,732) (Gains) on investments (55,254) (131,412) Financing costs 4,577 4,577 Operating cash flows before 17,108 15,696 movements in working capital Decrease/(increase) in 257 (389) accrued income and prepayments Decrease in receivables 3 984 Increase in payables 20 114 NET CASH FLOWS FROM OPERATING 17,388 16,405 ACTIVITIES BEFORE AND AFTER INCOME TAX CASH FLOWS FROM FINANCING ACTIVITES Proceeds from issue of new - 2,067 shares - 2 Unclaimed distributions (4,559) (4,558) Interest paid on borrowings Bank interest paid - (2) Equity dividends paid (19,754) (19,362) NET CASH USED IN FINANCING (24,313) (21,853) ACTIVITIES NET (DECREASE) IN CASH AND (6,925) (5,448) CASH EQUIVALENTS Cash and cash equivalents at 8,899 14,347 the start of the year CASH AND CASH EQUIVALENTS AT 1,974 8,899 THE END OF THE YEAR ¹ Purchases and sales of investments are considered to be operating activities of the Company, given its purpose, rather than investing activities. Dividend The directors will recommend to shareholders at the annual general meeting to be held on 29 March 2011 that a final dividend of 23.7p per ordinary share be paid on 31 March 2011 to shareholders on the Register at the close of business on 18 March 2011. Notes i. The figures set out above are derived from the audited consolidated accounts of Temple Bar Investment Trust Plc and its subsidiary for the year ended 31 December 2009 and 31 December 2010. The 2010 accounts will be sent to shareholders shortly. ii. The financial information contained in this announcement does not constitute full accounts within the meaning of Section 434 of the Companies Act 2006. The 2010 accounts, on which the report of the auditors is unqualified, will be filed with the Registrar of Companies in due course. The audited accounts for the year ended 31 December 2009 on which the report of the auditors was unqualified and did not contain a statement under Section 498 of the Companies Act 2006, have been filed with the Registrar of Companies. 23 February 2011 Contact: Alastair Mundy Telephone 020 7597 2000 Investec Asset Management Limited

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