Final Results

British Assets Trust PLC
17 November 2003


BRITISH ASSETS TRUST PLC

Date: 17 November 2003


Unaudited results for the year ended 30 September 2003


  • Net asset value total return of 17.0 per cent compared to a return of 17.5
    per cent from the benchmark index

  • Dividend yield of 5.4 per cent

  • Discount of 5.9 per cent


After two successive years of decreases in the Company's net asset value, there
was an increase for the year ended 30 September 2003. The Company's net asset
value total return, with net dividends reinvested, was 17.0 per cent. This
compared to a total return of 17.5 per cent from the benchmark index of 75 per
cent FTSE All-Share Index and 25 per cent FTSE World (ex UK) Index.


Gearing boosted returns in rising markets but this was offset to a large extent
by stock selection, particularly in North America and also in the UK, where
quality businesses with good dividend prospects of the type the Company owns
generally underperformed as cyclical recovery stocks led the market higher.
Regional asset allocation was positive, in particular the Company's overweight
position in the Pacific (ex Japan) region. Corporate bonds provided useful
income in volatile markets.


The Company's share price total return was 15.7 per cent and the discount of
share price to net asset value at the end of the year was 5.9 per cent. The
discount, which is lower than that of most global investment trusts, reflects
the ongoing support for the Company's investment approach and the attractive
dividend yield which, as at 30 September 2003, was 5.4 per cent.


Global stockmarkets recovered slightly in the last quarter of 2002 but fell back
at the start of 2003. In January, UK equities recorded their worst performance
since 1974, largely due to forced selling by life companies, as they moved to
avoid breaching solvency requirements. Concern over the Iraqi conflict also
contributed to global stockmarket weakness early in the year and, in March, the
FTSE All-Share Index reached its lowest level since May 1995. However, between
that low point and the end of the Company's year, the index rose by more than 27
per cent as investors became increasingly confident about the recovery in global
demand.


Activity

As explained in more detail below, the Company repaid its Yen loan during the
year. This was funded from cash and the sale of corporate bonds. It also
increased its exposure to the Pacific (ex Japan) region which is viewed as a
potential major beneficiary of any recovery in global demand at a time when
domestic demand in many of its economies is increasingly self sustaining. The
impact of the SARS virus has waned and valuations across the region's markets
are attractive relative to the World's major stockmarkets. The Company's
exposure to North America was reduced during the year on the grounds of
valuation.


Gearing

At the end of the year the Company's gearing, net of cash, was 29.7 per cent.
This is represented by 20.6 per cent of equities and 9.1 per cent of corporate
bonds.


Gearing was reduced during the year by the repayment of the Company's Yen loan
which had a sterling value of £22.4 million at the time of repayment. The loan
had been drawn down under a three year committed revolving credit facility which
expired in 2003. The nominal value of the Company's remaining borrowings totals
£120 million and comprises two £60 million Bonds, one maturing in 2008 and one
in 2031.


Gearing contributed positively to the return for the year. The Board 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 positive returns for shareholders over the life of the Bonds.


Earnings and Dividends

The Company's earnings were 4.08p per Ordinary Share in respect of the year
ended 30 September 2003.


At 30 September 2002 the level of dividend cover provided by the Revenue Reserve
was 98 per cent. At the Annual General Meeting held on 19 December 2002,
shareholders approved the cancellation of the Company's Share Premium Account
and Capital Redemption Reserve. Court approval for the cancellation of these
reserves was subsequently received and a new special reserve of £14.7 million
was created. This is available to the Company for the purpose of paying
dividends and buying back shares. As a result, the level of dividend cover
provided by the Company's distributable reserves at 30 September 2003 was 153
per cent.


When the Company's capital structure was simplified in 2001, the Board set out
as its objectives, the achievement of a total return in excess of the benchmark
index and the maintainenance of a progressive dividend policy which is dependent
upon, inter alia, the rate of revenue growth within the investment portfolio,
and the level of dividend cover.


One of the attractions of the Company is its above average dividend yield when
compared to similar investment trusts. However, this has to be balanced with the
prime objective of maximising total return, that is capital growth plus the
dividend yield.


Over the last two years, which have been beset by considerable stockmarket
turbulence in addition to low economic growth, the dividend income from
companies in which the Company is invested and from the market in general, has
fallen short of original expectations. This has taken the form of, on average,
low dividend increases, unchanged dividends and, in some material cases, cut
dividends, as companies have attempted to repair their balance sheets.
Furthermore, a number of major companies now pay a dividend denominated in US
dollars which, with the weakness of the dollar, has reduced the amount received
in sterling.


It is not the expectation of the Board that the level of dividend payable by the
Company will have to be cut, but, on a prudent basis, the Board believes the
time at which the dividend can be increased will have to be deferred, at least
in the short term.


The Board has run forecasts based on what it believes are conservative
assumptions and has taken into account the size of the Company's distributable
reserves which are available to fund the part of the annual dividend cost not
covered by earnings, the Board's belief that the worst is now over in terms of
dividend cuts, and the Company's ability to buy in shares for cancellation,
which reduces the capital base on which dividends are payable. In light of this
the Board is as confident as it reasonably can be that, short of a major
downturn in world economies, the Company can maintain the current dividend level
in the short term and resume increasing this in the medium term.


The Board therefore recommends a final dividend of 1.414p per Ordinary Share
payable on 9 January 2004 to shareholders on the register on 12 December 2003.
This brings the total dividend for the year to 5.326p per Ordinary Share,
unchanged from the previous year.


Marketing

During the year the Board continued to place importance on retail initiatives to
create demand for the Company's shares through the ZeroChargeTM Individual
Savings Accounts (Isas) and Investment Plans. Marketing conditions were very
difficult during the year as investors remained cautious. However, the Board is
encouraged by the continuing demand for the Company's shares, and will continue
to place emphasis on marketing through the ZeroChargeTM products, to private
client stockbrokers and directly to private investors and their intermediaries.


Share Buy-Backs

The Company did not buy back any shares during the year. However, 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 Annual General Meeting.


Outlook

Whilst the sustainability of the current recovery in global demand is still
uncertain, for now economic and corporate earnings news is likely to remain
positive. This should bode well for the Company's equity investments.




Enquiries:  Julie Dent/Gordon Hay Smith
            ISIS Asset Management plc - 0131 465 1000




Unaudited Statement of Total Return (Incorporating the revenue account)
for the Year ended 30 September 2003

                                                         Notes                   2003              2003            2003
                                                                              Revenue           Capital           Total
                                                                                £'000             £'000           £'000


Gains on investments                                                                -            48,491          48,491
Exchange differences                                                                -             (377)           (377)
Income                                                                         17,943                 -          17,943
Investment management fee                                                       (413)           (1,240)         (1,653)
Other expenses                                                                  (870)                 -           (870)
                                                                               ______            ______          ______
Net return before finance costs & taxation                                     16,660            46,874          63,534

Finance costs                                                                 (1,983)           (5,946)         (7,929)
                                                                               ______            ______          ______
Return on ordinary activities before tax                                       14,677            40,928          55,605

Tax on ordinary activities                                                      (270)                 -           (270)
                                                                               ______            ______          ______
Return attributable to equity shareholders                                     14,407            40,928          55,335

Dividends in respect of equity shares                    2                   (18,821)                 -        (18,821)
                                                                               ______            ______          ______
Transfer (from)/to reserves                                                   (4,414)            40,928          36,514
                                                                               ______            ______          ______


Return per Ordinary Share                                1                      4.08p            11.58p          15.66p





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                                          (18,791)               -        (18,791)
                                                                                 ______          ______          ______
Transfer from reserves                                                          (4,514)       (153,595)       (158,109)
                                                                                 ______          ______          ______

Return per Ordinary Share                                             1           4.04p        (43.47)p        (39.43)p







Unaudited Balance Sheet as at 30 September                                             2003              2002
                                                                                      £'000             £'000

Fixed assets

Investments                                                                         480,858           457,471
                                                                                   ________          ________

Current assets

Debtors                                                                               5,660             5,865
Cash at bank and on deposit                                                          15,388            23,333
                                                                                   ________           _______
                                                                                     21,048            29,198

Creditors: amounts falling due within one year                                     (12,104)          (33,470)
                                                                                   ________           _______
Net current assets/(liabilities)                                                      8,944           (4,272)
                                                                                   ________           _______
Total assets less current liabilities                                               489,802           453,199
                                                                                   ________           _______
Creditors: amounts falling due after more than one year                           (118,979)         (118,890)
                                                                                   ________           _______
Net Assets                                                                          370,823           334,309
                                                                                   ________           _______
Capital and reserves
Called-up share capital                                                              88,341            88,341
Share premium account                                                                     -             6,188
Special reserve                                                                         476                 -
Other reserves:
Capital reserve - realised                                                          287,017           339,189
Capital reserve - unrealised                                                       (33,341)         (126,441)
Capital redemption reserve                                                                -             8,501
Revenue reserve                                                                      28,330            18,531
                                                                                    _______           _______
Equity shareholders' funds                                                          370,823           334,309
                                                                                    _______           _______

Net asset value per share                                                            104.9p             94.6p










Unaudited Summarised Statement of Cash Flows
                                                                                 Year to 30        Year to 30
                                                                             September 2003    September 2002
                                                                                      £'000             £'000

Net cash inflow from operating activities                                            15,607            12,954
Servicing of finance                                                                (7,845)          (10,000)
Taxation                                                                                 58               111
Capital expenditure and financial investment                                         26,276          (32,404)
Equity dividends paid                                                              (18,821)          (18,968)
                                                                                -----------       -----------
Net cash inflow/(outlfow) before financing                                           15,275          (48,307)
Financing                                                                          (22,429)             2,629
                                                                                -----------       -----------
Decrease in cash                                                                    (7,154)          (45,678)
                                                                                -----------       -----------
Reconciliation of net cash flow to movement in net debt

Decrease in cash in the year                                                        (7,154)          (45,678)
Yen loan repaid                                                                      22,429                 -
Costs in relation to issue of 6.25 per cent Bonds 2031                                    -                21
                                                                                -----------       -----------
Movement in net debt resulting from cash flows                                       15,275          (45,657)
Currency (losses)/gains                                                             (1,021)               246
Decrease in Yen loan liability                                                            -             2,075
Increase in 6.625 per cent Bonds 2008 liability                                        (63)              (63)
Increase in 6.25 per cent Bonds 2031 liability                                         (26)              (26)
Net debt at 1 October 2002                                                        (117,756)          (74,331)
                                                                                -----------       -----------
Net debt at 30 September 2003                                                     (103,591)         (117,756)
                                                                                -----------       -----------
Reconciliation of net revenue before finance costs and taxation to net
cash inflow from operating activities

Net revenue before finance costs and taxation                                        16,660            17,013
Decrease/(increase) in accrued income                                                   567             (693)
Decrease in other creditors                                                            (84)             (151)
Investment management fee charged to capital                                        (1,240)           (2,888)
Tax on investment income                                                              (296)             (327)
                                                                                -----------       -----------
Net cash inflow from operating activities                                            15,607            12,954
                                                                                -----------       -----------








Notes


        1.     Basic revenue return per Ordinary Share is based on 353,362,282
        (2002: same) Ordinary Shares in issue.


        2.     The proposed final dividend of 1.414p per Ordinary Share, will be
        paid on 9 January 2004 to ordinary shareholders on the register at close
        of business on 12 December 2003.


        3.     The Company had 353,362,282 Ordinary Shares in issue as at 30
        September 2003.


        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
        (2002: 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 2002, which were unqualified, have been lodged with the
        Registrar of Companies. The 2003 annual report will be sent to
        shareholders during November 2003 and will be available for inspection
        at 80 George Street, Edinburgh EH2 3BU, the registered office of the
        Company.


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

                                                 Percentage
        Attribution of Return                        points


        Market/benchmark return                        17.5

        Stock selection

             UK equities                               -1.2

             Overseas equities                         -0.9

        Regional asset allocation                       0.3

        Corporate bonds                                -0.3

        Gearing                                         2.3

        Expenses                                       -0.7

                                                    --------

        British Assets Trust total return              17.0
                                                    --------


        7.     The Company's geographic exposure as a percentage of ordinary
        shareholders' funds at 30 September 2003 was as follows (comparative
        figures are for 30 September 2002).


                                           2003                 2002

UK                                         86.4                 92.4
North America                              16.4                 20.3
Europe (ex UK)                              8.7                  7.3
Japan                                       3.2                  3.2
Pacific (ex Japan)                          5.9                  3.2
Corporate Bonds                             9.1                 10.4
Gearing                                  (29.7)               (36.8)
                                    -----------          -----------
Total                                     100.0                100.0
                                    -----------          -----------



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