Final Results

Henderson Eurotrust PLC 20 September 2000 HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2000 Financial Highlights 31 July 31 July Change 2000 1999 % pence pence Net Asset Value per ordinary share 434.19 281.19 +54.4 per zero dividend 53.27 47.18 +12.9 preference share per unit (one ordinary share and one zero 487.46 328.37 +48.4 dividend preference share) Earnings per ordinary share/unit 1.76 2.24 -21.4 Dividends per ordinary share/unit 2.50 2.50 - 1 year 3 years 5 years Since % % % launch % Net Asset Value Total Return Per ordinary share 155.5 235.7 352.2 665.9 FTSE World Europe (ex UK) Index 126.7 167.7 243.4 358.2 Average Continental European Investment Trust 153.1 200.0 299.3 547.5 Extracts from the Chairman's Statement:- 'It has been a good year for European markets, and an even better one for Henderson EuroTrust. Over the twelve months to 31 July 2000, Henderson EuroTrust recorded its best ever results in terms of the increase in total assets and the extent to which it has outperformed its benchmark index. Despite the strength of sterling, total assets have increased by 48.4% compared with an increase of 27.0% in the FTSE World Europe (ex UK) Index. Boosted by the modest gearing provided by the zero dividend preference shares, the net asset value of the ordinary shares rose by 54.4% to 434.2p during the year. The price of the units rose by 64.1% to 521p over the year and that of the ordinary shares by 84.5% to 463p, reflecting a premium to net asset value of more than 6% in each case. HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2000 This outcome extends and accelerates the achievement of earlier years. Since its inception in 1992, Henderson EuroTrust has recorded a 411.2% increase in total assets and in the net asset value per unit, whilst the net asset value per ordinary share has risen by 476.1%. During these eight years, no additional capital has been introduced. The overall increase in total assets, therefore, reflects a compound annual rate of increase of 22.6%. Including the dividends that have been paid to shareholders, this has generated a compound annual rate of 23.2% in total return. The corresponding figures for the net asset value per ordinary share are 24.4% and 25.1%. Throughout this period, shareholders have enjoyed consistently strong returns which have been delivered by Tim Stevenson and his team. Indeed, Henderson EuroTrust has recently won two awards: first place in the 1999 Lipper awards for the best performing investment trust in the European sector over one, three and five years; and first place in the Investment Week, Investment Trust of the Year 1999 Split Capital Trust category. Over the past five years, when we have concentrated on capital growth, compound annual growth rates of the ordinary shares and units have been 27.3% and 25.1% respectively. Revenue and Dividend Gross revenue for the year amounted to £1,047,000 (1999: £886,000). Net revenue on ordinary activities after taxation and administration expenses amounted to £309,000 (1999: £394,000), producing earnings of 1.76p (1999: 2.24p) per ordinary share/unit. This reflects the fact that the management fee is calculated as a percentage of the total value of the fund. An unchanged final dividend for the year of 1.5p (1999: 1.5p) per ordinary share/unit is being recommended making a total of 2.5p for the year, and, if approved, will be paid on 13 November 2000. Outlook The next twelve months are likely to prove more difficult, but nonetheless rewarding. Gains of the same order as in the previous year are unlikely, even though the positive economic environment looks set to be maintained. The Company has undoubtedly benefited from the run in high growth technology shares. In recent months, however, we have become concerned by the excessive valuations reached by some of these companies and we expect markets to broaden their sources of performance. A period of consolidation in some of the Telecoms, Media and Technology stocks is anticipated. HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2000 Outside this area there remains a good array of growth companies at attractive valuations. Our emphasis will stay on these, always with a view to finding the fifty most interesting companies in the Continental European area. This approach of a focused, tightly managed portfolio has served us well over the last eight years. It will also be a top priority, over the next twelve months, to establish a plan for the continuation of the Company after October 2002. With our approach and track record, we feel that the marketplace needs Henderson EuroTrust. No other investment trust investing in the mid to large capitalised European companies has performed as well over recent years. The Board At the forthcoming AGM, Valentine Furniss will not be seeking re-election. I would like to thank him for his contribution over the past eight years. We welcome Mr Mark Tapley to the Board with effect from 19 September 2000. Mark has over 25 years experience in the financial sector and has recently retired as Managing Director and Chief Investment Officer at West LB Asset Management. HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2000 Statement of Total Return (incorporating the revenue account) for the year ended 31 July 2000 (Audited & Restated*) Year Ended 31 July Year ended 31 July 2000 1999 Reven Capit Total Revenu Capit Total ue al e al £'000 £'000 £'000 £'000 £'000 £'000 Total capital gains from - 28,496 28,496 - 1,246 1,246 investments Income from fixed asset 890 - 890 756 - 756 investments Other interest receivable 157 - 157 130 - 130 and similar income ----- ----- ----- ------ ----- ----- Gross revenue and capital 1,047 28,496 29,543 886 1,246 2,132 gains Management fee (389) (389) (778) (259) (259) (518) Other administrative (94) (94) (188) (80) (80) (160) expenses ----- ----- ----- ------ ----- ----- Net return on ordinary activities before interest payable and 564 28,013 28,577 547 907 1,454 taxation Interest payable (2) - (2) (4) - (4) ----- ----- ----- ------ ----- ----- Net return on ordinary activities before taxation 562 28,013 28,575 543 907 1,450 Taxation on net return on (253) 97 (156) (149) 70 (79) ordinary activities ----- ----- ----- ------ ----- ----- Net return on ordinary activities after taxation 309 28,110 28,419 394 977 1,371 ----- ----- ----- ------ ----- ----- Capital gains attributable to zero dividend preference shares - (1,070) (1,070) - (950) (950) ----- ----- ----- ------ ----- ----- Net return attributable to ordinary shareholders 309 27,040 27,349 394 27 421 Dividends - ordinary shares Interim paid 1.0p (1999: (176) - (176) (176) - (176) 1.0p) Final proposed 1.5p (1999: (264) - (264) (264) - (264) 1.5p) ----- ----- ----- ------ ----- ----- (440) - (440) (440) - (440) ----- ----- ----- ------ ----- ----- Transfer (from)/to reserves (131) 27,040 26,909 (46) 27 (19) ===== ===== ===== ===== ===== ===== Return per Zero dividend preference - 6.08p 6.08p - 5.40p 5.40p share Ordinary share 1.76p 153.75p 155.51p 2.24p 0.15p 2.39p ===== ===== ===== ===== ===== ===== The revenue columns of this statement represent the revenue accounts of the Company. * Restated for the change in accounting policy (see note 2). HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2000 Balance Sheet at 31 July 2000 (Audited) 31 July 2000 31 July 1999 £'000 £'000 Fixed asset investments Listed overseas 82,224 53,675 ------------ ------------ Current assets Debtors 1,567 1,634 Cash at bank and short term 3,736 3,320 deposits ------------ ------------ 5,303 4,954 Creditors: amounts falling due (1,797) (873) within one year ------------ ------------ Net current assets 3,506 4,081 ------------ ------------ Total assets less current 85,730 57,756 liabilities Provisions for liabilities and - (5) charges ------------ ------------ Total net assets 85,730 57,751 ======= ======= Capital and reserves Called-up share capital 4,396 4,396 Share premium account 12,491 12,491 Redemption reserve 5,851 4,781 Other non-distributable 62,550 35,510 reserves Retained revenue reserve 442 573 ------------ ------------ Shareholders' funds 85,730 57,751 ======= ======= Shareholders funds attributable to Non-equity interests - zero dividend preference shares 9,368 8,298 Equity interests - ordinary 76,362 49,453 shares ------------ ------------ 85,730 57,751 ------------ ------------ Net asset value per Zero dividend preference share 53.27p 47.18p Ordinary share 434.19p 281.19p ===== ===== HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2000 Cash Flow Statement For the year ended 31 July 2000 2000 2000 1999 1999 £'000 £'000 £'000 £'000 Net cash (outflow)/inflow from (262) 130 operating activities Servicing of finance Interest paid (8) (4) Taxation UK tax recovered/(paid) 79 (2) Overseas tax recovered 91 53 ------ ------ Net tax recovered 170 51 Financial investment Purchase of investments (66,178) (42,508) Sale of investments 67,219 43,080 ------ ------ Net cash inflow from financial 1,041 572 investment Equity dividends paid (440) (440) ------ ------ Increase in cash 501 309 ====== ======= Reconciliation of net cash flow to movement in net funds Increase in cash as above 501 309 Exchange difference (85) (115) ------ ------- Movement of net funds 416 194 Net funds at 1 August 3,320 3,126 ------ ------- Net funds at 31 July 3,736 3,320 ====== ======= HENDERSON EUROTRUST PLC PRELIMINARY UNAUDITED RESULTS FOR THE YEAR ENDED 31 JULY 2000 Notes : 1. Return per share Return per zero dividend preference share reflects the predetermined growth in capital entitlement for the year of £1,070,000 (1999: £950,000) and on the 17,587,348 zero dividend preference shares in issue (1999: 17,587,348). Revenue return per ordinary share is based on earnings attributable to ordinary shares of £309,000 (1999: £394,000) and on the number of ordinary shares in issue during the year of 17,587,348 (1999: 17,587,348). Capital return per ordinary share is based on net capital gain, after deduction of the zero dividend capital entitlement, of £27,040,000 (1999: £27,000) and on the number of ordinary shares in issue during the year (as above). 2. Change in accounting policy The Company has adopted Financial Reporting Standard (FRS) 16, 'Current Taxation' under which overseas income should be accounted for net of overseas tax credits but gross of withholding tax. The comparative figures for the year ended 31 July 1999 have been restated accordingly. This change has no effect on the net revenue or net asset values, although unfranked income and the total tax charge have both decreased by £33,000 (1999: £40,000). 3. 1999 Accounts The figures and financial information for the year ended 31 July 1999 are extracted from the latest published accounts and do not constitute the statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under Section 237(2) or Section 237(3) of the Companies Act 1985. 4. 2000 Accounts The preliminary figures for the year ended 31 July 2000 are an extract from the latest accounts of the Company. These accounts have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them. 5. Dividend The recommended final dividend of 1.5p per ordinary share/unit, if approved, will be paid on 13 November 2000 to holders of ordinary shares/units on the register of members at close of business on 13 October 2000. The Company's shares will be quoted ex-dividend on 9 October 2000. HENDERSON EUROTRUST PLC PRELIMINARY UNAUDITED RESULTS FOR THE YEAR ENDED 31 JULY 2000 6. Annual General Meeting Copies of the Annual Report will be posted to shareholders in early October 2000 in time for the Annual General Meeting on 7 November 2000 and will be available from the Secretary at 3 Finsbury Avenue, London EC2M 2PA thereafter. For further information please contact: Tim Stevenson Stephen Westwood Henderson EuroTrust plc Head of Investment Trusts Tel: 020 7410 4100 Tel: 020 7410 5517 Vicki Staveacre Henderson Press Office Tel: 020 7410 4222

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