Interim Results

Govett Asian Recovery Trust PLC
8 December 2000

GOVETT ASIAN RECOVERY TRUST PLC
Preliminary announcement of Unaudited Results for the half year ended 30th
September 2000
 
 
Chairman's Statement 
 
The first half of the Trust's financial year was difficult. In the six months
to the end of September, the Net Asset Value per share of the Trust fell by
17.1%, compared to a fall in its benchmark index, the MSCI AC Asia cum-Japan,
of 11.8%. This performance was particularly disappointing, coming, as it did,
after a very strong period of performance in the previous year.
 
Although almost all equity markets performed poorly during this period, share
price falls in Asian markets were particularly marked. In geographical terms,
markets where the Fund was overweight produced mixed returns - Hong Kong,
Singapore and Australia performed relatively well against the benchmark, but
our exposure to Korea, Taiwan and India proved costly during the period.
Geographical exposure does not fully explain the recent underperformance. Of
greater importance was the Trust's sectoral allocation. After an
exceptionally strong period of performance in the fourth quarter of 1999 and
the first quarter of 2000, Asia's technology and telecommunications sectors
fell prey to intense selling pressure as tighter global liquidity and fears
of slowing US economic growth raised fears that the twin engines of Asia's
economic recovery would begin to falter. Sharp falls and rising volatility in
the world's principal technology bellwether, the NASDAQ market, caused
sporadic bouts of panic selling in Asian markets throughout the period. As a
result, the Trust's relatively high positions in technology and
telecommunication stocks in Japan, Taiwan, Korea, Singapore and India fell by
more than their respective local indices in almost every case.
 
Given the deterioration in the outlook for many Technology and
Telecommunications companies - both worldwide and in Asia - the Manager has
now reduced overweight positions in these sectors to more neutral levels. At
the same time, net gearing of 2% on net assets has been reversed and the
Trust now has 7% held in cash in the expectation that markets will remain
volatile. Following the end of the period, the Trust has also implemented an
equity derivatives position on its Japanese portfolio in order to limit the
impact of further downside in that market. The Trust's currency hedge on its
Yen exposure has also been increased.
 
The fall in the Trust's Net Asset Value has resulted in a widening of the
share price discount to an average of 22.15% for the period as a whole. The
Board remains committed to a policy of buying back shares at levels which
will enhance shareholder value and during the period repurchased a total of
500,000 shares.
 
Recent share price falls in Asian markets have thrown up interesting
opportunities which the Trust is well positioned to exploit, but for the time
being the board believes a more cautious investment policy is appropriate.
 
 
 
David Price, Chairman
8th December 2000Govett Asian Recovery Trust


Unaudited Consolidated Statement of Total Return (incorporating the revenue
account) for the half year ended 30th September 2000
 
                                                   
                        Half year ended                 Half year ended       
                     30th September 2000             30th September 1999      
                     Revenue   Capital     Total   Revenue   Capital     Total
                       £000s     £000s     £000s     £000s     £000s     £000s

  
  
  Realised &               -   (16,498)  (16,498)        -    20,466   20,466 
  unrealised gains 
  on investments                                                              
  
  Net foreign currency     -     2,206     2,206         -     (660)     (660)
  exchange differences                                                        
        
  Income from            509         -       509       425        -       425 
  investments                                                                 
  
  Deposit interest        80         -        80         8        -         8 
  interest                                                                    
  
  Investment           (281)         -     (281)     (273)        -     (273) 
  management fee                                                              
          
  Performance fee          -         -        -         -         -         - 
                                                                        
  Other expenses        (135)       17      (118)    (106)        5     (101) 
                                                                      
  Net return before      173   (14,275)   (14,102)      54    19,811   19,865 
  finance costs and
  taxation  
                                                                  
  Interest payable     (158)         -      (158)     (35)        -      (35) 
                                                                       
  Return on ordinary      15   (14,275)   (14,260)      19    19,811   19,830 
  ordinary activities                                                         
  before taxation                                                             
      
  Tax on ordinary      (101)         -      (101)     (48)        -      (48) 
  activities                                                                  
  
  Return on ordinary    (86)   (14,275)  (14,361)     (29)    19,811    19,782
  activities after taxation                                                   
                
  Return per ordinary (0.24)p   (39.04)p  (39.28)p  (0.08)p    53.49p   53.41p
  share (pence)                                                               
     
  Weighted shares in issue             36,565,246                   37,040,110
 
 
 
All the revenue and capital items in the above statement derive from
continuing activities. 
 
Return per ordinary share is based on 36,565,246 shares, being the weighted
average number of ordinary shares in issue during the period.
 

  

Govett Asian Recovery Trust

Unaudited Consolidated Statement of Total Return (incorporating the revenue
account) for the half year ended 30th September 2000

                                                             
                                                                              
                                                   Year ended 31st March 2000 
                                                                              
                                                Revenue    Capital      Total
                                                  £000s      £000s      £000s 
  Realised & unrealised gains on investments          -     37,266     37,266 
  
  Net foreign currency exchange differences           -    (1,756)    (1,756) 
  
  Income from investments                           817          -        817 
   
  Deposit interest                                   23          -         23 
  
  Investment management fee                       (623)          -      (623) 
  
  Performance fee                                     -      (209)      (209) 
  
  Other expenses                                  (382)        (6)      (388) 
  
  Net return before finance costs and             (165)     35,295     35,130 
  taxation                                                                    
  
  Interest payable                                (221)          -      (221) 
  
  Return on ordinary activities before            (386)     35,295     34,909 
  taxation                                                                    
  
  Tax on ordinary activities                       (82)          -       (82) 
  
  Return on ordinary activities after             (468)     35,295     34,827 
  taxation                                                                    
  
  Return per Ordinary share (pence)             (1.26)p     95.43p     94.17p 

  Weighted shares in issue                                         36,565,246 

 
 
All the revenue and capital items in the above statement derive from
continuing activities. 
 
Return per ordinary share is based on 36,565,246 shares, being the weighted
average number of ordinary shares in issue during the period
 
 

Govett Asian Recovery Trust
Unaudited Summarised Balance Sheet
 
                                                                             
                                As at 30th         As at 30th       As at 31st
                            September 2000     September 1999       March 2000
                                      £000               £000             £000
                                                                              
 
  Fixed assets investments          69,943             74,239           93,337
  
  Current assets
  Stock market settlements               -              3,198            1,281
  Taxation                              39                 35               70
  Other debtors                        415                364              548

  Cash at bank                       5,007              2,477            7,259

                                     5,461              6,074            9,158

  Creditors: amounts falling due
  within one year
  Bank loans and overdrafts          6,635             11,121           15,791
  Stock market settlements             305              1,015            2,770
  Accruals and deferred income         197                205              544

                                     7,137             12,341           19,105

  
   
  Net current liabilities          (1,676)            (6,267)          (9,947)
                                                                   
  Provisions for liabilities         (386)                (4)            (387)
  and charges                                                                 
   
  Total assets less current         67,881             67,968           83,003

  Financed by:
  
  Capital and reserves
  Called-up share capital            3,642              3,692            3,692
  Capital redemption reserve            40                 40               40
  Special capital reserve           32,206             32,912           32,915
  Capital reserve - realised        36,673             11,116           22,261
  Capital reserve - unrealised     (4,159)             20,205           24,530
  Revenue reserve                    (521)                  3            (435)

  Equity shareholders' funds        67,881             67,968           83,003
   
                                                           
  Net asset value per share         186.37             184.08           224.81

The net asset value per ordinary share is based on the Company's net assets
and on 36,422,077 ordinary shares in issue at the period end.


Unaudited Cashflow Statement

                                As at 30th         As at 30th       As at 31st
                            September 2000     September 1999       March 2000
                                      £000               £000             £000
 
 
Operating activities

Investment income received             669                485              807

Deposit income received                 80                  8               22

Investment management and            (529)              (273)            (320)
performance fees paid 

Other cash payments                  (261)              (149)            (361)

Net cash (outflow)/inflow             (41)                 71              148
from operating activites

Return on investments and            
servicing of finance
Interest paid                        (158)               (35)            (221)

Taxation                              
Overseas tax paid                     (69)               (67)             (49)

Investing activities
Purchase of investments           (34,289)           (39,969)         (94,600)
Sale of investments                 41,787             34,888           89,317

Net cash inflow/(outflow) from       7,498            (5,081)          (5,283)
investment activities

Financing 
Purchase of own shares               (759)              (322)            (468)
Capital expenses                        15                  5             (43)
(Decrease)/increase in loans       (8,738)              7,174           12,443

(Decrease)/increase in cash        (2,252)              1,745            6,527



The Balance Sheet at 31st March 2000 and the Statement of Total Return and
Cashflow statement for the period then ended are an abridged version of the
Company's full statutory accounts for the year ended 31st March 2000, which
have been filed with the Registrar of Companies; the auditors' opinion on
those accounts was unqualified.
 
 
                                              By order of the Board
Shackleton House                              AIB Govett Secretaries Limited
4 Battle Bridge Lane                          Secretary
London                                        8th December 2000
SE1 2HR                                       Registered in England no:3582911