Final Results

City Natural Res High Yield Tst PLC
28 September 2005

To:                RNS

From:              City Natural Resources High Yield Trust plc

Date:              28 September 2005





Audited results for the year ended 30 June 2005



  • Net asset value total return of 32.0 per cent since 1 July 2004 compared
    to a total return of 22.0 per cent from the benchmark index



  • Ordinary Share price total return since 1 July 2004 of 27.7 per cent



  • Warrant price up by 15 per cent since 1 July 2004



  • Discount of 4.9 per cent





Investment Performance

The Company's net asset value moved up during the year from 63.6 pence to 81.7
pence, an increase of 28 per cent.  The ordinary share price moved up from its
starting level of 63.0 pence to 77.8 pence, an increase of 23 per cent.



In addition, quarterly dividends totalling 2.0 pence have again been paid,
adding to the healthy capital returns outlined above.  The income generated from
the portfolio during the year was lower than anticipated, principally as a
result of a high weighting in natural resource equities.  This, in turn,
contributed significantly to a strong asset value performance, with a net asset
value total return per share of 32.0 per cent for the year compared with a 22.0
per cent rise for the benchmark index.



As the bull market in the natural resources sector continues, the fund manager
has taken advantage of the capital growth opportunities available.



Investment Strategy

The policy of investing in small to medium sized resource stocks, combined with
high yielding bonds and convertibles, remains intact.  The fund manager has
taken advantage of the opportunities available from emerging markets which has
yielded strong capital returns.



Base metals have had a good year although there have been somewhat quiet times
in bullion related stocks so far.  A particular feature has been opportunities
in the energy sector where the Company has benefited from good positioning in
oil, natural gas and uranium.  It is worth noting the rise in the oil price
during the last 12 months, which has fuelled interest in stocks throughout the
energy universe.



For bulk commodities, consumers have been paying up for bulk contracts with
notable increases in coal, uranium and iron and this has provided a very stable
investment environment for the Company.



The natural resources equity portfolio has seen a healthy turnover as the fund
manager positions the Company to shareholders' benefit while the fixed income
portfolio has had lower turnover reflecting its role in providing much of the
income stream to meet dividend payments.



Board

The Board recognised it needed to identify a suitable fourth director and was
delighted to announce the appointment of Geoffrey Burns on 29th June 2005.
Geoffrey brings strong experience of the investment fund industry where he
worked for over 20 years, and he has





12 years of fund management experience, including five years as Head of
Investment Trusts at Murray Johnstone Limited.



Under the new listing rules, from 1st April 2005, a Director cannot be Chairman
of an investment trust company if he is also on the Board of another trust
managed by the same fund management company.  Adrian Collins, who is also a
Director of New City High Yield Trust Plc, also managed by New City Investment
Managers Limited, stood aside from the Chair on 1st April 2005 and Adam Cooke
was appointed Acting Chairman.  Since the year end, Geoffrey Burns has been
appointed Chairman.



The Company's AGM will be held at 10.30am on 27th October, at F&C Asset
Management, Exchange House, Primrose Street, London EC2A 2NY.  The meeting will
be followed by a presentation by Richard Lockwood providing an opportunity for
shareholders to meet the Board and Managers.



Investment Manager

During the year, the fund managers, Richard Lockwood and Andrew Ferguson, who
had operated as part of Midas Capital Partners Limited, established a fund
management company, New City Investment Managers Limited (NCIM).  With effect
from 1st April 2005, the Company has been managed by NCIM .



Outlook

The natural resources sector continues to offer exciting opportunities and the
Company will continue to pursue these where the fundamentals are attractive.



The Board recognises the importance of dividend income to shareholders and will
sustain the quarterly payments emphasising convertibles and fixed income stocks
in the natural resources sector where possible.



To the extent that there is a surplus of income, this is expected to be
reflected in a higher fourth interim or final dividend payout.  The Board views
the future with confidence.











Audited Statement of Total Return (Incorporating the revenue account)

for the Year ended 30 June 2005


                                                          Notes       2005      2005             2005

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


Gains on investments                                             -              11,916           11,916
Exchange losses                                                  -              (88)             (88)
Income                                                           2,513          -                2,513
Investment management fee                                        (160)          (479)            (639)
Other expenses                                                   (299)              -            (299)

Net return before finance costs and taxation                     2,054          11,349           13,403

Interest payable                                                 (178)          (459)            (637)

Return on ordinary activities before tax                         1,876          10,890           12,766


Tax on ordinary activities                                       (457)          297              (160)

Return attributable to equity shareholders                       1,419          11,187           12,606

Dividends in respect of equity shares                            (1,256)            -            (1,256)

Transfer to reserves                                              163           11,187           11,350



Return per Ordinary Share                                 1      2.26p          17.80p           20.06p
















Audited Statement of Total Return (Incorporating the revenue account)

for the Year ended 30 June 2004


                                                          Notes      2004          2004          2004

                                                                     Revenue       Capital       Total

                                                                     £'000         £'000         £'000


Gains on investments                                                 -             733           733
Exchange losses                                                      -             (85)          (85)
Income                                                               1,818         -             1,818
Investment management fee                                            (100)         (300)         (400)
Other expenses                                                       (265)         (20)          (285)

Net return before finance costs and taxation                         1,453         328           1,781

Interest Payable                                                       (74)        (190)         (264)


Return on ordinary activities before tax                             1,379         138           1,517

Tax on ordinary activities                                           (297)         224           (73)


Return attributable to equity shareholders                           1,082         362           1,444


Dividends in respect of equity shares                               (1,256)        -            (1,256)

Transfer from/(to) reserves                                          (174)         362           188


Return per Ordinary Share                                 1          2.23p         0.74p         2.97p









Audited Balance Sheet as at 30 June                                     2005              2004
                                                                        £'000             £'000

Fixed assets

Investments                                                             62,415            50,238


Current assets

Debtors                                                                 1,152             762
Cash at bank and on deposit                                             443               368
                                                                        1,595             1,130


Creditors: amounts falling due within one year                          (12,689)          (11,397)

Net current liabilities                                                 (11,094)          (10,267)


Net Assets                                                              51,321            39,971


Capital and reserves
Called-up share capital                                                 15,714            15,714
Special distributable reserve                                           30,386            30,386
Warrant reserve                                                         2,353             2,353
Other reserves:
Capital reserve - realised                                              (4,684)           (7,791)
Capital reserve - unrealised                                            7,193             (887)
Revenue reserve                                                         359               196

Equity shareholders' funds                                              51,321            39,971



Net asset value per share                                               81.65p            63.59p
2












Audited Summarised Statement of Cash Flows
                                                                        Year to 30 June   Year to 30

                                                                        2005              June

                                                                                           2004
                                                                        £'000             £'000

Net cash inflow from operating activities                               1,522             252
Servicing of finance                                                    (622)             (168)
Taxation (paid)/recovered                                               (74)              83
Capital expenditure and financial investment                            (1,094)           (40,104)
Equity dividends paid                                                   (1,571)           (628)

Net cash outflow before financing                                       (1,839)           (40,565)
Financing                                                               2,000             39,458

Increase/(decrease) in cash                                             161               (1,107)

Reconciliation of net cash flow to movement in net debt

Increase/(decrease) in cash in the year                                 161               (1,107)
Cash inflow from drawdown of loans                                      (2,000)           (10,000)
Exchange losses                                                         (86)              (79)


Net (debt)/funds at 1 July 2004                                         (9,632)           1,554

Net debt at 30 June 2005                                                (11,557)          (9,632)


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

Net revenue before finance costs and taxation                           2,054             1,453
Decrease/(increase) in accrued income                                   63                (604)
Decrease in other creditors                                             (51)              (221)
Increase in other debtors                                               (21)              (15)
Capitalised expenses taken to non-distributable reserves                (479)             (320)
Overseas witholding tax suffered                                        (44)              (41)

Net cash inflow from operating activities                               1,522             252













Notes



1.                  The basic revenue return per Ordinary share is based on the
net return after taxation of £1,419,000 (2004: £1,082,000) and on 62,857,143
(2004: 48,571,429) Ordinary shares being the weighted average number of Ordinary
shares in issue during the year.



The basic capital return per Ordinary share is based on a capital return of
£11,187,000 (2004: £362,000) and on 62,857,143 (2004: 48,571,429) Ordinary
shares, being the weighted average number of Ordinary shares in issue during the
year.



Fully diluted returns calculated on the basis set out in Financial Reporting
Standard 22 'Earning per share' indicate that the exercise of Warrants in issue
would have no dilutive effect on returns.



2.         During the year the Company did not issue any shares nor did the
Company purchase any shares for cancellation.



          The basic net asset value per Share is based on 62,857,143 shares
(2004: 62,857,143), being the total number of Ordinary shares in issue at the
end of the year.



          The fully diluted net asset value per Ordinary share for both 2005 and
2004 has not been calculated as the Warrant exercise price, being 85p, was
higher than the basic net asset value at both year ends.



3.         The Board declared a fourth interim dividend of 0.5p per share which
was paid on 26 August 2005 to shareholders on the register on 29 July 2005,
having an ex-dividend date of 27 July 2005.





4.         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 June 2004, on
which the auditors report was unqualified, have been lodged with the Registrar
of Companies.  The 2005 annual report, on which the auditors report was
unqualified, will be sent to shareholders during September 2005 and will be
available for inspection at 80 George Street, Edinburgh EH2  3BU, the registered
office of the Company.










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