Interim Results

British Assets Trust PLC
13 May 2005

BRITISH ASSETS TRUST PLC



To:                RNS
From:              British Assets Trust plc
Date:              13 May 2005



Interim Results for the six months ended 31 March 2005

Financial Highlights


•         Net asset value total return of 9.8 per cent compared with a return of
          9.0 per cent from the benchmark index

•         Share price total return of 13.4 per cent reflecting a narrowing of
          the discount to 9.0 per cent

•         Dividend yield of 4.8 per cent



Total Return

The Company's net asset value total return, with net dividends reinvested, was
9.8 per cent for the six month period ended 31 March 2005. This compares
favourably with a return of 9.0 per cent from the benchmark index of 75 per cent
FTSE All-Share Index and 25 per cent FTSE World (ex UK) Index.



The UK stockmarket delivered good returns during the period driven by strong
dividend growth and bid rumours. Although there were still concerns over future
economic growth, oil prices and interest rates, investor confidence helped push
the FTSE 100 Index through the psychological 5,000 barrier during February. The
strongest region outside the UK was Pacific (ex Japan) where growth remained
strong. Elsewhere, European markets performed well as investors drew confidence
from a generally positive corporate environment. North American markets faced a
tougher time as the Federal Reserve continued to raise interest rates and the
Dollar weakened.



The UK equity portfolio, which represents 67.1 per cent of the Company's
investments, performed in line with the FTSE All-Share Index. Regional asset
allocation was positive and share buy backs also enhanced returns to
shareholders.



The share price total return during the period was 13.4 per cent, reflecting the
net asset value total return and a narrowing of the discount of net asset value
to share price from 11.6 per cent to 9.0 per cent.



Activity

The only change in regional asset allocation during the period was a reduction
in the Company's exposure to North America, reflecting concerns over further
weakness in the US Dollar.



Gearing

At the end of the period the Company's gearing net of cash was 25.9 per cent,
compared to 28.3 per cent as at 30 September 2004. The level of gearing is
represented by 17.8 per cent in equities and 8.1 per cent in corporate bonds.



Earnings and Dividends

The Company's earnings during the period were 2.30p per share (2004 - 1.88p). A
first interim dividend of 1.304p per Ordinary Share (2004 - 1.304p) was paid on
8 April 2005 and the Board has declared a second interim dividend of 1.304p per
Ordinary Share (2004 - 1.304p) which will be paid on 8 July 2005 to shareholders
on the register on 10 June 2005.



The Board remains clear about the importance to shareholders of the Company's
above average level of dividend. However, it is also aware that it needs to
balance this with the Company's prime objective of maximising total return, that
is capital growth plus the dividend yield.



In previous reports to shareholders the Board has detailed the steps which it
has taken in relation to the Company's ability to continue to pay the current
rate of dividend and increase this again in the future. It continues to monitor
carefully revenue forecasts, both for the current financial year and future
years and remains of the view that, unless there are significant reductions in
dividends paid by companies in which British Assets Trust is invested, it will
be able to maintain the current level of dividend in the short term and would
hope to be in a position to grow this again in the medium term.



Share Buy Backs

During the period the Company bought back 7,150,000 Ordinary Shares for
cancellation, equivalent to 2.1 per cent of the shares in issue at the previous
year end, for a total consideration of £7.8 million. These buy backs enhanced
the net asset value by 0.3p per share.



Marketing

The Board has continued to place emphasis on generating demand for the Company's
shares through the ZeroChargeTM investment plans, to private client stockbrokers
and directly to private investors and their intermediaries. Its initiatives
during the first quarter of the calendar year, when the demand for Isas is at
its greatest, have again proved to be successful.  This demonstrates a
continuing demand for British Assets Trust, where investors can obtain a good
level of income from their investment as well as the potential for capital
growth.



Outlook

Global stockmarkets delivered good returns in the first six months of the
financial year but it is unlikely that this will be repeated in the second half.
Many companies have surplus cash balances which suggests a favourable outlook
for dividends and share buy backs. However, with global economic indicators
continuing to be mixed, there are unlikely to be strong returns from equities in
the months ahead.










For further information please contact:

Julie Dent 0131 465 1000
[e-mail]
F&C Asset Management plc








Unaudited Statement of Total Return (Incorporating the revenue account)

for the 6 Months ended 31 March 2005


                                                                        2005         2005           2005
                                                                     Revenue      Capital          Total
                                                                       £'000        £'000          £'000

Gains on investments                                                       -       31,467         31,467
Exchange differences                                                       -          239            239
Income*                                                                9,516          617         10,133
Investment management fee:
    Basic                                                              (226)        (677)          (903)
    Performance                                                            -            -              -
Other expenses                                                         (526)            -          (526)
                                                                   ---------    ---------      ---------

Net return before finance costs & taxation                             8,764       31,646         40,410

Finance Costs:
     6.625% Bonds 2008                                                 (505)      (1,514)        (2,019)
     6.25% Bonds 2031                                                  (474)      (1,422)        (1,896)
                                                                   ---------    ---------      ---------
Return on ordinary activities before tax                               7,785       28,710         36,495

Tax on ordinary activities                                             (115)            -          (115)
                                                                   ---------    ---------      ---------
Return attributable to shareholders                                    7,670       28,710         36,380


Dividends in respect of ordinary shares                              (8,595)            -        (8,595)
                                                                   ---------    ---------      ---------
Transfer (from)/to reserves                                            (925)       28,710         27,785
                                                                   ---------    ---------      ---------


Return per Ordinary Share (p)                                           2.30         8.59          10.89




*Total income of £10,133,000 includes special dividends of £1,451,000 of which
£834,000 is recognised through Revenue and £617,000 is recognised through
Capital.


Unaudited Statement of Total Return (Incorporating the revenue account)

for the 6 Months ended 31 March 2004

  
                                                                        2004         2004           2004
                                                                     Revenue      Capital          Total
                                                                       £'000        £'000          £'000

Gains on investments                                                       -       28,531         28,531
Exchange differences                                                       -          934            934
Income                                                                 8,505            -          8,505
Investment management fee:
     Basic                                                             (222)        (666)          (888)
     Performance                                                           -        (455)          (455)
Other expenses                                                         (571)            -          (571)
                                                                   ---------    ---------      ---------
Net return before finance costs & taxation                             7,712       28,344         36,056

Finance Costs:
      6.625% Bonds 2008                                                (505)      (1,514)        (2,019)
      6.25% Bonds 2031                                                 (474)      (1,422)        (1,896)
                                                                   ---------    ---------      ---------
Return on ordinary activities before tax                               6,733       25,408         32,141

Tax on ordinary activities                                             (103)            -          (103)
                                                                   ---------    ---------      ---------
Return attributable to shareholders                                    6,630       25,408         32,038

Dividends in respect of ordinary shares                              (9,074)            -        (9,074)
                                                                   ---------    ---------      ---------
Transfer (from) / to reserves                                        (2,444)       25,408         22,964
                                                                   ---------    ---------      ---------


Return per Ordinary Share (p)                                           1.88         7.22           9.10









Audited Statement of Total Return (Incorporating the revenue account)

for the Year ended 30 September 2004


                                                                           2004             2004          2004
                                                                        Revenue          Capital         Total
                                                                          £'000            £'000         £'000


Gains on investments                                                          -           42,521        42,521
Exchange differences                                                          -              793           793
Income                                                                   17,605                -        17,605
Investment management fee:
    Basic                                                                 (444)          (1,333)       (1,777)
    Performance                                                               -            (613)         (613)
Other expenses                                                          (1,180)                -       (1,180)
                                                                       ________         ________      ________
Net return before finance costs & taxation                               15,981           41,368        57,349

Finance Costs:
     6.625% Bonds 2008                                                  (1,010)          (3,028)       (4,038)
     6.25% Bonds 2031                                                     (944)          (2,832)       (3,776)
                                                                       ________         ________      ________
Return on ordinary activities before tax                                 14,027           35,508        49,535

Tax on ordinary activities                                                (254)                -         (254)
                                                                       ________         ________      ________
Return attributable to shareholders                                      13,773           35,508        49,281

Dividends in respect of ordinary shares                                (18,197)                -      (18,197)
                                                                       ________         ________      ________
Transfer (from)/to reserves                                             (4,424)           35,508        31,084
                                                                       ________         ________      ________


Return per Ordinary Share (p)                                              3.96            10.22         14.18












Unaudited Balance Sheet                                As At 31.03.05               As At               As At
                                                                                 30.09.04            31.03.04
                                                                £'000               £'000               £'000
Fixed Assets
Investments                                                   511,587             495,632             501,119
                                                            ---------           ---------           ---------
Current Assets
Debtors                                                         8,017               5,609               6,724
Cash at bank and on deposit                                    18,756              15,788              10,663
                                                            ---------           ---------           ---------
                                                               26,773              21,397              17,387
Creditors:
Amounts falling due within one year                          (13,046)            (11,782)            (11,370)
                                                          -----------          ----------         -----------
Net Current Assets                                             13,727               9,615               6,017
                                                          -----------           ---------         -----------
Total Assets less Current Liabilities                         525,314             505,247             507,136


Creditors:  amounts falling due after more than one year:
6.625% Bonds 2008                                            (59,811)            (59,779)            (59,747)
6.25% Bonds 2031                                             (59,302)            (59,289)            (59,276)
                                                          -----------          ----------         -----------
                                                            (119,113)           (119,068)           (119,023)
                                                          -----------           ---------         -----------
Net assets                                                    406,201             386,179             388,113
                                                           ----------           ---------          ----------
Equity Shareholders' Funds                                    406,201             386,179             388,113

                                                           ----------           ---------          ----------
                                                   
Net Asset Value per Share                                      122.8p              114.3p              111.6p







Summarised Unaudited Statement of Cash Flows


                                                            Six months to    Six months to      Audited Year to
                                                                 31 March         31 March         30 September
                                                                     2005             2004                 2004
                                                                    £'000            £'000                £'000

Net cash inflow from operating activities                           6,923            5,471               14,625
Servicing of finance                                              (3,863)          (3,863)              (7,725)
Taxation                                                               49              144                   58
Financial investment                                               16,684            7,868               26,702
Ordinary dividends paid                                           (9,182)          (9,605)             (18,591)

Net cash inflow before financing                                   10,611               15               15,069
Financing                                                         (7,774)          (5,674)             (15,717)

Increase/(decrease) in cash                                         2,837          (5,659)                (648)

Reconciliation of net cash flow to movement in net debt

Increase/(decrease) in cash                                         2,837          (5,659)                (648)
Currency gains                                                        131              934                1,048
Increase in 6.625% Bonds 2008 Liability                              (32)             (31)                 (63)
Increase in 6.25% Bonds 2031 Liability                               (13)             (13)                 (26)
Movement in net debt                                                2,923          (4,769)                  311
Net debt at 1 October                                           (103,280)        (103,591)            (103,591)

Net debt at 31 March/30 September                               (100,357)        (108,360)            (103,280)



Reconciliation of net revenue before finance costs and
taxation to net cash inflow from operating activities

Net revenue before finance costs and taxation                         8,764             7,712            15,981
Investment Management fee charged to capital                          (677)           (1,121)           (1,946)
Tax on investment income                                              (137)              (92)             (267)
Changes in working capital and other non-cash items                 (1,027)           (1,028)               857

Net cash inflow from operating activities                             6,923             5,471            14,625






Notes:



1.      The unaudited interim results have been prepared on the basis of the
accounting policies set out in the statutory accounts of the Company for the
year ended 30 September 2004.



2.      Earnings for the first six months should not be taken as a guide to the
results of the full year.



3.      The second interim dividend of 1.304p per Ordinary Share will be paid on
8 July 2005 to shareholders on the register on 10 June 2005.



The last date for receipt of mandate instructions for those shareholders who
wish to join the Dividend Reinvestment Plan is 17  June 2005.



4.      Return per Ordinary Share is based on a weighted average 334,117,777
Ordinary Shares in issue during the period (31 March 2004 - 351,860,916 and 30
September 2004 -347,578,402).



5.      During the six months ended 31 March 2005 the Company bought 7,150,000
Ordinary Shares for cancellation at a cost of £7,763,000 (six months ended 31
March 2004 - 5,450,000 Ordinary Shares at a cost of £5,674,000 and year ended 30
September 2004 - 15,550,000 Ordinary Shares at a cost of £15,728,000).



6.      There were 330,662,282 Ordinary Shares in issue at 31 March 2005 (31
March 2004 - 347,912,282 and 30 September 2004 - 337,812,282).



7.      The following table provides a breakdown of the estimated contributions
to the net asset value total return for the period:


Attribution of Return                                                             Percentage Points

Market/benchmark return                                                                         9.0
Stock selection
            UK equities                                                                         0.0
            Overseas equities                                                                  -0.3
Regional asset allocation                                                                       0.1
Corporate bonds                                                                                -0.2
Gearing                                                                                         1.3
Share buy-backs                                                                                 0.2
Expenses                                                                                       -0.3
                                                                                             ______
British Assets Trust net asset value total return                                               9.8
                                                                                             ______







8.      The Company's geographic exposure as a percentage of shareholders' funds
at 31 March 2005 was as follows (comparative figures are for 30 September 2004).


                                              31 March 2005           30 September 2004
UK                                            86.8                    87.5
North America                                 13.2                    15.1
Europe (ex UK)                                7.0                     6.7
Japan                                         5.6                     5.7
Pacific (ex Japan)                            5.2                     5.2
Corporate Bonds                               8.1                     8.1
Liquidity                                     3.4                     2.5
Borrowings                                    (29.3)                  (30.8)
                                              ____                    ____
                                              100.0                   100.0





9.      These are not statutory accounts in terms of Section 240 of the
Companies Act 1985 and are unaudited.  Statutory accounts for the year ended 30
September 2004, which received an unqualified audit report, have been lodged
with the Registrar of Companies.  No statutory accounts in respect of any period
after 30 September 2004 have been reported on by the Company's auditors or
delivered to the Registrar of Companies.  The Interim Report will be sent to
shareholders in May 2005.


                      This information is provided by RNS
            The company news service from the London Stock Exchange