Final Results

Baring Emerging Europe Trust PLC
26 June 2000


THE BARING EMERGING EUROPE TRUST PLC

Preliminary announcement in respect of the year ended 30 April 2000. 

STATEMENT OF TOTAL RETURN     YEAR ENDED 30 APRIL 2000 
 
                                           Revenue     Capital       Total    
                                           US$000       US$000       US$000   
                                                                              
                                                                              
                                                                              
  Gains on investments                    ---         143,252      143,252    
  Gains on foreign exchange               ---         12           12         
  Income                                  3,613       ---          3,613      
  Investment management fee               (5,024)     ---          (5,024)    
  Other expenses                          (2,048)     ---          (2,048)    
  Net return before interest payable      (3,459)     143,264      139,805    
  and taxation                                                                
  Interest payable                        (201)       ---          (201)      
  Return on ordinary activities before    (3,660)     143,264      139,604    
  taxation                                                                    
  Taxation                                (293)       ---          (293)      
  Return attributable to ordinary         (3,953)     143,264      139,311    
  shareholders                                                                
  Dividend per share                      ---         ---          ---        
  Transfers to reserves                   (3,953)     143,264      139,311    
                                          Earnings     Capital       Total    
  Return per ordinary share: basic        (3.19)c     (115.73)c    (112.54)c  
  Return per ordinary share: fully        (2.90)c     (105.09)c    (102.19)c  
  diluted                                                                     

THE BARING EMERGING EUROPE TRUST PLC


STATEMENT OF TOTAL RETURN     YEAR ENDED 30 APRIL 1999 
 
                                                                             
                                             Revenue     Capital      Total   
                                             US$000      US$000      US$000   
                                                                              
                                                                              
                                                                              
  Losses on investments                     ---         (41,018)    (41,018)  
  Losses on foreign exchange                ---         (508)       (508)     
  Income                                    5,470       ---         5,470     
  Investment management fee                 (3,259)     ---         (3,259)   
  Other expenses                            (1,878)     ---         (1,878)   
  Net return before interest payable and    333         (41,526)    (41,193)  
  taxation                                                                    
  Interest payable                          (114)       ---         (114)     
  Return on ordinary activities before      219         (41,526)    (41,307)  
  taxation                                                                    
  Taxation                                  (236)       ---         (236)     
  Return attributable to ordinary           (17)        (41,526)    (41,543)  
  shareholders                                                                
  Dividend per share                        ---         ---         ---       
  Transfers to reserves                     (17)        (41,526)    (41,543)  
                                            Earnings     Capital      Total   
  Return per ordinary share: basic          (0.01)c     (33.46)c    (33.47)c  
  Return per ordinary share: fully          (0.01)c     (31.40)c    (31.41)c  
  diluted                                                                     
                                                                              

THE BARING EMERGING EUROPE TRUST PLC

 
BALANCE SHEET 
                                                                        
                                                      At 30 April       
                                                    2000         1999   
                                                   US$000       US$000  
        Fixed assets                                                    
        Investments                                                     
                                                                        
                                                                        
                                                409,140        276,212  
        Current assets                                                  
        Debtors                                 22,260         1,471    
        Cash at bank and in hand                89             1,662    
                                                                        
                                                22,349         3,133    
        Creditors:                                                      
        Amounts falling due within one year     (21,037)       (7,298)  
        Net current assets                      1,312          (4,165)  
        Total assets less current liabilities   410,452        272,047  
        Capital and reserves                                            
        Called-up share capital                 12,399         12,431   
        Share premium account                   94,293         94,258   
        Warrant premium account                 13,263         13,277   
        Other reserves                                                  
        Redemption reserve                      35             --       
        Capital reserve-realised                204,178        117,391  
        Capital reserve-unrealised              94,185         38,638   
        Revenue reserve                         (7,901)        (3,948)  
        Total shareholders' funds               410,452        272,047  
        Net asset value per share:     basic    331.54c        219.20c  
             fully diluted                      293.10c        199.40c  
 
 
 

THE BARING EMERGING EUROPE TRUST PLC
 
CASHFLOW STATEMENT 
                                                                              
                                                           At 30 April        
                                                        2000          1999    
                                                       US$000        US$000   
  Operating activities                                                        
  Investment income received                                                  
  Interest received                                                           
  Sundry income received                                                      
  Investment management fees paid                   3,215          4,684      
  Other cash payments                               105            604        
  Net cash outflow from operating activities        --             3          
                                                    (4,806)        (4,197)    
                                                    (1,923)        (2,226)    
                                                    (3,409)        (1,132)    
                                                                              
  Returns on investments and servicing of finance                             
  Interest paid                                     (201)          (114)      
  Financial Investment                                                        
  Purchases of investments                          (381,593)      (400,377)  
  Sales of investments                              364,455        400,450    
                                                                              
  Net cash (outflow)/inflow from financial          (17,138)       73         
  investment                                                                  
  Financing                                                                   
  Exercise of warrants                              23             27         
  Buyback of ordinary shares                        (930)          --         
  Net cash (outflow)/inflow from financing                                    
                                                    (907)          27         
  Decrease in cash                                  (21,655)       (1,146)    
 
 
 
 
 
NOTES: 
 
 
The abridged figures for 2000 are an extract from the latest Accounts. These
Accounts have not yet been delivered to the Registrar of Companies, nor have
the Auditors yet reported on them. 
 
The Directors' Report and Statement of Accounts will be posted on 12 July
2000. 
 
The Annual General Meeting will be held at 155 Bishopsgate, London EC2, on
Wednesday 4 October 2000 at 2.30 p.m. 
 
CHAIRMAN'S STATEMENT

 
 
The absolute performance of the Company was positive again during the
reporting period, with a rise in the Company's net assets of 51%. This
compares with a decline of 13% in 1999 and rises of 44% in 1998 and 81% in
1997. 
 
Relative performance has continued to be very strong, with the Company
continuing to outperform its benchmark, the BEMI Emerging Europe index, and
its peer group of comparable funds. 
 
The distinction which the Investment Manager has made between the
'converging' economies of Central Europe (the Czech Republic, Poland,
Hungary, Slovenia) and Greece and the more volatile 'emerging' economies of
Russia and Turkey continued to be reflected in performance. This year the
latter markets have substantially outperformed in contrast to last year. 
 
Of the 'emerging' economies Turkey and Russia have strengthened their
governments and taken steps to stabilise their economies during the year.
This resulted in very strong equity market performance. As I have remarked on
previous occasions, such stabilisation is ephemeral unless there is a follow
through with structural reforms to allow imbalances within the economies to
be corrected. In the case of both Turkey and Russia there is room for
cautious optimism on structural reform despite a recent record of missed
opportunities. 
 
The Central European economies continue on their path towards close
integration with Western Europe. Although both internal and EU politics will
ensure that the path is not always smooth, the economic and political
momentum remains unstoppable. 
 
Whilst it would be tempting to extrapolate into the future the Company's
growth in Net Asset Value over the last years, I would like to take this
opportunity to remind shareholders of the political, economic, market and
stock-specific risks inherent in the Company's investments in this particular
region. 
 
In May 2000 Martin Taylor, who has been the co-manager at Baring Asset
Management of the Company's investments, resigned from his position and I
would like to record the Board's thanks to Martin for his contribution to the
performance of the Company. 
 
The Board continues to keep under close review the discount to Net Asset
Value at which the Company's shares are trading and monitors developments in
the industry and among peers closely. The Company has taken advantage of the
share buy-back facility approved by shareholders at last years Annual General
Meeting and at the date of this report a total of 1,350,000 shares have been
purchased for cancellation, which include purchases as recently as June 2000.
Resolution number 4 at the forthcoming AGM is being proposed as a special
resolution to renew the buy-back facility. 
 
I am pleased to note that the savings scheme continues to expand and I also
note that the Company's shares are eligible for investment within an ISA. 
 
Your Board is pleased that its confidence in the region has been vindicated
and continues to believe strongly in the case for investment in this area 
 
 
 
Sir William Ryrie 
26 June, 2000  
 
 
For THE BARING EMERGING EUROPE TRUST PLC 
 
 
M J Nokes 
Company Secretary 

155 Bishopsgate, London EC2M 3XY Tel: [phone]