Final Results

British Assets Trust PLC
13 November 2002

BRITISH ASSETS TRUST PLC

PRESS RELEASE

Date: 13 November 2002


Unaudited results for the year ended 30 September 2002


•      Share price total return of -21.2 per cent in line with the
       benchmark index, despite net asset value underperformance

•      Dividend yield 5.9 per cent

•      Discount narrowed to 4.6 per cent

•      Awarded Investment Week Best Global Trust of the Year 2001 since
       last Annual Report

Performance

For the second year in succession global stockmarkets fell significantly. The
Company's net asset value total return, with net dividends reinvested, was -29.3
per cent. This compared to a total return of -21.5 per cent from the benchmark
index of 75 per cent FTSE All-Share Index and 25 per cent FTSE World (ex UK)
Index. Gearing was the main reason the Company underperformed the benchmark in
net asset value terms. This was offset to some extent by positive asset
allocation reflecting the decision to invest £35 million in corporate bonds and
to hold some cash. Stock selection was also a drag on performance, with poor
relative returns in Europe and North America. Following strong out-performance
in 2001, the UK portfolio was slightly behind the FTSE All-Share Index for the
year.


The Company's share price total return was -21.2 per cent, outperforming the
benchmark index by 0.3 percentage points and the discount of share price to net
asset value narrowed from 15.0 per cent, as at 30 September 2001, to 4.6 per
cent at the end of the year. This narrowing of the discount reflects the ongoing
support for the Company's investment approach and the attractive dividend yield,
which at the year end was 5.9 per cent.

Stockmarkets performed very poorly in the second half of the financial year. The
benchmark index, which returned 11.6 per cent in the first six months of the
financial year, returned -29.6 per cent in the second half of the year. The
collapse of Enron seriously undermined confidence in equities, with investors
questioning the quality of the earnings that had supported the wealth creation
of the 1990s. Markets were very volatile during this period and, in the last day
of the financial year alone, the benchmark index fell by 4.1 per cent. During
the last month of the year the FTSE All-Share Index fell to its lowest level for
more than 6 years.

The following table provides a breakdown of the estimated contributions to the
total return for the year.


Attribution of Return                                    Percentage points

Market/benchmark return                                              -21.5

Stock Selection
                               UK Equities                            -1.1
                               Overseas Equities                      -1.6
                               Corporate Bonds                         0.4

Asset Allocation                                                       3.2

Gearing                                                               -8.0

Expenses                                                              -0.7

British Assets Trust total return                                    -29.3


Against this background it is pleasing to report that, as an acknowledgement of
the Company's performance record and investment approach, it was awarded
Investment Week Best Global Trust of the Year in November 2001.

Activity

During the year the Company invested £35 million of its liquidity in a corporate
bond portfolio which, at the end of the year, represented 7.6 per cent of
investments. The corporate bond portfolio is designed to increase the Company's
investment income, assisting it in meeting its dividend objective, whilst also
contributing to the capital return. The Company also continued to use cash to
increase its exposure in the UK, facilitating a gradual shift from defensive
stocks in favour of companies which are expected to benefit from a recovery in
global demand.

Gearing

The Company's level of liquidity, which arose from the issue of the £60 million
30 year Bonds in September 2001, was reduced during the year. The newly issued
Bonds, together with the Company's 2008 Bonds and Yen loan, resulted in total
borrowings of £141 million as at 30 September 2002. The level of gearing at the
year end, net of cash, was 36.8 per cent of shareholders' funds, of which 10.4
per cent was represented by the corporate bond portfolio.

The Company's geared position, during a time when stockmarkets were falling in
value, was largely responsible for its underperformance during the year. Despite
this, the Board does not consider it to be in the best interest of shareholders
to de-gear the Company to any material extent in these conditions.

All of the Company's borrowings, except for the Yen loan, are of a long term
nature. The Board believed at the time of issuing the 30 year Bonds in September
2001, and continues to believe, that there are good long term prospects for
equities which will exceed the cost of financing the borrowings, thereby
providing the opportunity for attractive returns for shareholders over the life
of the Bonds.

Revenue Reserves

As a result of the conversion of Growth Shares to Ordinary Shares on 30
September 2001 and the exercise of Warrants during the year ended on that date,
there is now a much larger number of Ordinary Shares is issue. As previously
communicated it is therefore unlikely that the annual dividend cost will be
covered by earnings for some years to come. In anticipation of this, the Company
has accumulated sufficient revenue reserves over the past few years to continue
its stated dividend policy. The level of dividend cover provided by the Revenue
Reserve was 98 per cent at 30 September 2002.

To strengthen further the Company's position and increase flexibility with
regard to future dividend payments, it is proposed that the Company seeks
shareholder approval to increase the amount of reserves available for
distribution as dividends.

At the Annual General Meeting a resolution will therefore be proposed to cancel
the Company's Share Premium Account and Capital Redemption Reserve. Subject to
the approval of shareholders and the subsequent approval of the Court, a new
special reserve of the Company will be created by this cancellation which may be
treated as profits available to the Company for the purpose of paying future
dividends and buying back shares. The amount available for cancellation in this
way is £14.7 million, representing 78 per cent of the current annual dividend
cost.

Earnings and Dividends

The Company's earnings were 4.04p per Ordinary Share in respect of the year
ended 30 September 2002.

The Board has already indicated that, due to the uncertain economic conditions
and the payment of the special dividend of 0.5p per Ordinary Share in respect of
the year ended 30 September 2001, it was unlikely that there would be an
increase in dividend payments per share for the year ended 30 September 2002. In
light of this statement and the economic conditions that prevailed during the
year, the Board has proposed a final dividend of 1.414p per Ordinary Share
payable on 10 January 2003 to shareholders on the register on 13 December 2002.
This brings total dividends for the financial year to 5.326p per Ordinary Share,
unchanged compared to the year ended 30 September 2001 excluding the special
dividend.

However, subject to stockmarket and economic conditions not deteriorating
significantly further and the approval by shareholders of the resolution
described above, the Board expects there to be a modest increase in dividends
for the year ended 30 September 2003.

Marketing

During the year the Company's retail initiatives continued to create demand for
the Company's shares through the ZeroChargeTM Individual Savings Accounts (ISAs)
and Investment Plans. During a period when the market for Isas as a whole was
significantly lower, it is very encouraging that demand created through the
plans increased by 50 per cent compared to the previous year.

The Company's retail initiatives have also created demand for the Company's
shares from private client stockbrokers and directly from private investors.

The Board will continue to place emphasis on marketing the Company's shares
through these channels.

Share Buy-backs

The Company did not buy back any shares during the year.

The Board remains of the view that it is important to have a share buy-back
facility in place. It is therefore seeking to renew its authority from
shareholders to buy back up to 14.99 per cent of Ordinary Shares in issue as the
existing authority, to the extent not utilised, will expire at this year's AGM.

The Board will also seek shareholder approval at the AGM to issue new shares
where to do so would not result in a dilution of net asset value, thereby
disadvantaging existing shareholders' interests.

Outlook

Although the outlook remains uncertain, the Board believes that equity markets
currently represent good value as compared to bonds and that the Company should
stick with its geared position in anticipation of a modest recovery in global
stockmarkets in the year ahead.


Enquiries: Julie Dent/Gordon Humphries - Tel: [phone]



Statement of Total Return (Incorporating the revenue account)

for the Year ended 30 September 2002

                                                                  Notes            2002            2002            2002

                                                                                Revenue         Capital           Total

                                                                                  £'000           £'000           £'000


Losses on investments                                                                 -       (147,328)       (147,328)

Exchange differences                                                                  -           1,825           1,825

Income                                                                           18,408               -          18,408

Investment management fee                                                         (563)         (2,456)         (3,019)

Other expenses                                                                    (832)               -           (832)
                                                                                 ______          ______          ______
Net return before finance costs & taxation                                       17,013       (147,959)       (130,946)

Finance costs                                                                   (2,026)         (6,077)         (8,103)
                                                                                 ______          ______          ______

Return on ordinary activities before tax                                         14,987       (154,036)       (139,049)

Tax on ordinary activities                                                        (710)             441           (269)
                                                                                 ______          ______          ______

Return attributable to equity shareholders                                       14,277       (153,595)       (139,318)

Dividends in respect of equity shares                                 2        (18,791)               -        (18,791)
                                                                                 ______          ______          ______

Transfer from reserves                                                          (4,514)       (153,595)       (158,109)
                                                                                 ______          ______          ______

Return per Ordinary Share                                             1

Basic                                                                             4.04p        (43.47)p        (39.43)p

Diluted (FRS 14)                                                                  4.04p        (43.47)p        (39.43)p





Unaudited Statement of Total Return (Incorporating the revenue account)

for the Year ended 30 September 2001

                                                         Notes                   2001              2001            2001

                                                                              Revenue           Capital           Total

                                                                                £'000             £'000           £'000


Losses on investments                                                               -         (142,407)       (142,407)

Warrants purchased for cancellation                                                 -           (1,774)         (1,774)

Exchange differences                                                                -             2,453           2,453

Equities Index Unsecured Loan Stock                                                 -             4,766           4,766

Income                                                                         26,753                 -          26,753

Investment management fee                                                       (832)           (2,587)         (3,419)

Other expenses                                                                (1,095)                 -         (1,095)
                                                                               ______            ______          ______
Net revenue before finance costs & taxation                                    24,826         (139,549)       (114,723)

Finance costs                                                                 (2,269)           (2,784)         (5,053)
                                                                               ______            ______          ______
Return on ordinary activities before tax                                       22,557         (142,333)       (119,776)

Tax on ordinary activities                                                      (897)               655           (242)
                                                                               ______            ______          ______
Return attributable to equity shareholders                                     21,660         (141,678)       (120,018)

Dividends in respect of equity shares                                        (17,666)                 -        (17,666)
                                                                               ______            ______          ______
Transfer to / (from) reserves                                                   3,994         (141,678)       (137,684)
                                                                               ______            ______          ______


Return per Ordinary Share                                1

Basic                                                                           7.12p          (40.16)p        (33.04)p

Diluted (FRS 14)                                                                7.08p          (39.93)p        (32.85)p




Unaudited Balance Sheet as at 30 September                                             2002              2001

                                                                                      £'000             £'000

Fixed assets

Investments                                                                         457,471           572,445

Current assets

Debtors                                                                               5,865             7,665

Cash at bank and on deposit                                                          23,333            68,765
                                                                                    _______          ________
                                                                                     29,198            76,430

Creditors: amounts falling due within one year                                     (33,470)          (13,361)
                                                                                    _______          ________
Net current (liabilities)/assets                                                    (4,272)            63,069
                                                                                    _______          ________
Total assets less current liabilities                                               453,199           635,514
                                                                                    _______          ________
Creditors: amounts falling due after more than one year                           (118,890)         (143,096)
                                                                                    _______          ________
Net Assets                                                                          334,309           492,418
                                                                                    _______          ________
Capital and reserves

Called-up share capital                                                              88,341            88,341

Share premium account                                                                 6,188             6,188

Other reserves:

Capital reserve - realised                                                          339,189           378,085

Capital reserve - unrealised                                                      (126,441)          (11,742)

Capital redemption reserve                                                            8,501             8,501

Revenue reserve                                                                      18,531            23,045
                                                                                    _______           _______
Equity shareholders' funds                                                          334,309           492,418
                                                                                    _______           _______

Net asset value per share                                                             94.6p            139.4p




Unaudited Summarised Statement of Cash Flows

                                                                                 Year to 30        Year to 30

                                                                             September 2002    September 2001

                                                                                      £'000             £'000

Net cash inflow from operating activities                                            12,954            21,253

Servicing of finance                                                               (10,000)           (4,865)

Taxation                                                                                111                65

Capital expenditure and financial investment                                       (32,404)            20,601

Equity dividends paid                                                              (18,968)          (16,170)
                                                                                -----------       -----------
Net cash (outlfow)/inflow before financing                                         (48,307)            20,884

Financing                                                                             2,629            28,784
                                                                                -----------       -----------
(Decrease)/Increase in cash                                                        (45,678)            49,668
                                                                                -----------       -----------
Reconciliation of net cash flow to movement in net debt

(Decrease)/increase in cash in the year                                            (45,678)            49,668

6.25 per cent Bonds 2031 issued                                                           -          (59,231)

Costs in relation to issue of 6.25 per cent Bonds 2031                                   21                 -

Equities Index Unsecured Loan Stock purchased for cancellation                            -            13,737
                                                                                -----------       -----------
Movement in net debt resulting from cash flows                                     (45,657)             4,174

Currency gains                                                                          246               126

Decrease in Equities Index Unsecured Loan Stock liability                                 -             4,766

Decrease in Yen loan liability                                                        2,075             2,327

Increase in 6.625 per cent Bonds 2008 liability                                        (63)              (63)

Increase in 6.25 per cent Bonds 2031 liability                                         (26)               (1)

Net debt at 1 October 2001                                                         (74,331)          (85,660)
                                                                                -----------       -----------
Net debt at 30 September 2002                                                     (117,756)          (74,331)
                                                                                -----------       -----------
Reconciliation of net revenue before finance costs and taxation to net
cash inflow from operating activities

Net revenue before finance costs and taxation                                        17,013            24,826

Increase in accrued income                                                            (693)           (1,115)

(Decrease)/increase in other creditors                                                (150)               464

Investment management fee charged to capital                                        (2,888)           (2,587)

Tax on investment income                                                              (328)             (335)

                                                                                -----------       -----------
Net cash inflow from operating activities                                            12,954            21,253
                                                                                -----------       -----------

Notes


            1.     Basic revenue return per Ordinary Share is based on a
            weighted average of 353,362,282 (2001: 304,083,555) Ordinary Shares
            in issue.


            2.     The proposed final dividend of 1.414p per Ordinary Share,
            will be paid on 10 January 2003 to ordinary shareholders on the
            register at close of business on 13 December 2002.


            3.     The Company had 353,362,282 Ordinary Shares in issue as at 30
            September 2002.


            4.     The Company did not purchase any shares for cancellation 
            during the year.


                  Net Asset Value per Share is based on 353,362,282 shares
            (2001: same), being the total number of Ordinary Shares in issue.


            5.     These are not full statutory accounts in terms of Section 240 
            of the Companies Act 1985. The full audited accounts for the year to 
            30 September 2001, which were unqualified, have been lodged with the
            Registrar of Companies. The 2002 annual report will be sent to
            shareholders during November 2002 and will be available for 
            inspection at One Charlotte Square, Edinburgh, the registered office 
            of the Company.

            6.     The Company's geographic exposure as a percentage of ordinary
            shareholders' funds at 30 September 2002 was as follows (comparative
            figures are for 30 September 2001).


                                                                     2002                 2001

UK                                                                   92.4                 82.3

Europe (ex UK)                                                        7.3                  7.5

North America                                                        20.3                 22.6

Japan                                                                 3.2                  2.5

Pacific (ex Japan)                                                    3.2                  1.4

Corporate Bonds                                                      10.4                    -

Gearing                                                            (36.8)               (16.3)
                                                              -----------          -----------
Total                                                               100.0                100.0
                                                              -----------          -----------




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