Final Results

Henderson Eurotrust PLC 19 September 2001 19 SEPTEMBER 2001 HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2001 Financial Highlights 31 July 31 July Change 2001 2000 % pence pence Net Asset Value per ordinary share 307.16 434.19 -29.3 per zero dividend preference share 60.14 53.27 +12.9 per unit (one ordinary share and one zero dividend 367.30 487.46 -24.7 preference share) Earnings 2.95 1.76 +67.6 per ordinary share/unit Dividends 2.50 2.50 - per ordinary share/unit Extract from Chairman's Statement In the twelve months ended 31 July 2001, European markets, as measured by the FTSE World Europe (ex UK) Index, gave up virtually all of the substantial gains made in the previous year, closing just 1.2% above the level at the end of July 1999. In this, its ninth financial year, Henderson EuroTrust registered a 24.7% decline in total assets, but over the latest two year period, it has still recorded an 11.9% advance, outperforming the benchmark index by 10.6%. Following its outstanding gains in 1999 and 2000, both in absolute and in relative terms, the Company had a particularly adverse first five months. However, helped by the repositioning of the portfolio, total assets have recovered by 4.4% against the benchmark since 31 December 2000. Henderson EuroTrust has consistently emphasised growth stocks and continues to do so. Over the last few years the Board has drawn attention to the wide diversity of growth companies held in the portfolio, from outsourcing companies to technology related, from savings to restructuring, supervising the manager in his search for companies which have the ability to grow the bottom line earnings per share. As a result, the Company has not been totally dependent on one sector, such as technology. It is encouraging that over the medium and long term, as well as over the final seven months of the financial year, this strategy has produced significant outperformance. Indeed, the Board has applied this policy throughout the six years since the change in investment objectives effected in 1995. Over this period, the total assets have increased by 131%, compared to the 82% advance in the index. - MORE - - 2 - HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2001 An analysis of the portfolio at the end of July 2001 shows a substantial change compared with the prior year end. Last year's Annual Report referred to 'a quiet retreat from the more overvalued technology stocks', and the Company has continued that policy over the last twelve months. There have been disappointments but the Company has taken tough decisions and cut investments which have clearly begun to go wrong. Once again, this has proved to be one of the merits of a focused fifty stock portfolio. Revenue and Dividend Gross revenue for the year amounted to £1,172,000 (2000: £1,047,000). Net revenue on ordinary activities after taxation and administration expenses amounted to £518,000 (2000: £309,000), producing earnings of 2.95p (2000: 1.76p) per ordinary share / unit. An unchanged final dividend for the year of 1.5p (2000: 1.5p) per ordinary share / unit is being recommended, making a total of 2.5p for the year, which, if approved, will be paid on 12 November 2001. Outlook The uncertainties currently afflicting markets and affecting all sectors have led to a greater fall in European share prices than that experienced in US markets. European economic growth will slow in 2001 from 2000 levels. The Board expects further interest rate cuts in Europe, and that should support equities. Some valuation levels are already more interesting. The continuing restructuring efforts by European companies is encouraging; some governments might be slow to embrace more dynamic enterprise and more fundamental structural reform, but companies are certainly moving ahead. This bodes well over the medium term, although markets will have to cope first with the recently heightened level of uncertainty. It is felt that the Company is well positioned for these tough times. Continuation Discussions are well advanced with our advisors regarding the continuation of Henderson EuroTrust beyond its wind-up date of 31 October 2002. The Company aims to provide shareholders with the possibility of continuing with what has been a successful fund over the years, with a unique investment style. - MORE - - 3 - HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2001 Statement of Total Return (incorporating the revenue account) for the year ended 31 July 2001 (Audited) Year Ended 31 July 2001 Year ended 31 July 2000 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Total capital - (20,848) (20,848) - 28,496 28,496 (losses)/gains from investments Income from 993 - 993 890 - 890 fixed asset investments Other interest 179 - 179 157 - 157 receivable and similar income ---------- ---------- ---------- ---------- ---------- ---------- Gross revenue 1,172 (20,848) (19,676) 1,047 28,496 29,543 and capital (losses)/gains Management fee (339) (339) (678) (389) (389) (778) Other (112) (112) (224) (94) (94) (188) administrative expenses ---------- ---------- ---------- ---------- ---------- ---------- Net return on ordinary activities before interest 721 (21,299) (20,578) 564 28,013 28,577 payable and taxation Interest - - - (2) - (2) payable ---------- ---------- ---------- ---------- ---------- ---------- Net return on ordinary activities before 721 (21,299) (20,578) 562 28,013 28,575 taxation Taxation on (203) 90 (113) (253) 97 (156) net return on ordinary activities ---------- ---------- ---------- ---------- ---------- ---------- Net return on ordinary activities after taxation 518 (21,209) (20,691) 309 28,110 28,419 ---------- ---------- ---------- ---------- ---------- ---------- Capital gains attributable to zero dividend preference - (1,209) (1,209) - (1,070) (1,070) shares ---------- ---------- ---------- ---------- ---------- ---------- Net return attributable to ordinary shareholders 518 (22,418) (21,900) 309 27,040 27,349 ---------- ---------- ---------- ---------- ---------- ---------- Dividends - ordinary shares Interim paid (176) - (176) (176) - (176) 1.0p (2000: 1.0p) Final proposed (264) - (264) (264) - (264) 1.5p (2000: 1.5p) ---------- ---------- ---------- ---------- ---------- ---------- (440) - (440) (440) - (440) ---------- ---------- ---------- ---------- ---------- ---------- Transfer to/ 78 (22,418) (22,340) (131) 27,040 26,909 (from) reserves ===== ===== ===== ===== ===== ===== Return per Zero dividend - 6.87p 6.87p - 6.08p 6.08p preference share Ordinary share 2.95p (127.47)p (124.52)p 1.76p 153.75p 155.51p ===== ===== ===== ===== ===== ===== The revenue columns of this statement represent the revenue accounts of the Company. - MORE - - 4 - HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2001 Balance Sheet at 31 July 2001 (Audited) 31 July 2001 31 July 2000 £'000 £'000 Fixed asset investments Listed overseas 61,909 82,224 ------------ ------------ Current assets Debtors 1,028 1,567 Cash at bank and short term deposits 4,185 3,736 ------------ ------------ 5,213 5,303 Creditors: amounts falling due within one year (2,523) (1,797) ------------ ------------ Net current assets 2,690 3,506 ------------ ------------ Total assets less current liabilities 64,599 85,730 ------------ ------------ Total net assets 64,599 85,730 ======= ======= Capital and reserves Called-up share capital 4,396 4,396 Share premium account 12,491 12,491 Redemption reserve 7,060 5,851 Other non-distributable reserves 40,132 62,550 Retained revenue reserve 520 442 ------------ ------------ Shareholders' funds 64,599 85,730 ======= ======= Shareholders funds attributable to Non-equity interests - zero dividend preference shares 10,577 9,368 Equity interests - ordinary shares 54,022 76,362 ------------ ------------ 64,599 85,730 ======= ======= Net asset value per Zero dividend preference share 60.14p 53.27p Ordinary share 307.16p 434.19p ======= ======= - MORE - - 5 - HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2001 Cash Flow Statement For the year ended 31 July 2001 2001 2001 2000 2000 £'000 £'000 £'000 £'000 Net cash inflow/(outflow) 56 (262) from operating activities Servicing of finance Interest paid - (8) Taxation UK tax recovered 6 79 Overseas tax recovered 91 91 ------------ ------------ Net tax recovered 97 170 Financial investment Purchase of investments (60,546) (66,178) Sale of investments 61,425 67,219 ------------ ------------ Net cash inflow from 879 1,041 financial investment Equity dividends paid (440) (440) ------------ ------------ Increase in cash 592 501 ======= ======= Reconciliation of net cash flow to movement in net funds Increase in cash as above 592 501 Exchange difference (143) (85) ------------ ------------ Movement of net funds 449 416 Net funds at 1 August 3,736 3,320 ----------- ------------ Net funds at 31 July 4,185 3,736 ======= ======= - MORE - - 6 - HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2001 Notes : 1. Return per share Return per zero dividend preference share reflects the predetermined growth in capital entitlement for the year of £1,209,000 (2000: £1,070,000) and on the 17,587,348 zero dividend preference shares in issue (2000: 17,587,348). Revenue return per ordinary share is based on earnings attributable to ordinary shares of £518,000 (2000: £309,000) and on the number of ordinary shares in issue during the year of 17,587,348 (2000: 17,587,348). Capital return per ordinary share is based on net capital losses, after deduction of the zero dividend capital entitlement, of £22,418,000 (2000: £ 27,040,000 gain) and on the number of ordinary shares in issue during the year (as above). 2. 2000 Accounts The figures and financial information for the year ended 31 July 2000 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. 3. 2001 Accounts The preliminary figures for the year ended 31 July 2001 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. 4. Dividend The recommended final dividend of 1.5p per ordinary share/unit, if approved, will be paid on 12 November 2001 to holders of ordinary shares/units on the register of members at close of business on 5 October 2001. The Company's shares will be quoted ex-dividend on 3 October 2001. 5. Annual General Meeting Copies of the Annual Report will be posted to shareholders in early October 2001 in time for the Annual General Meeting on 6 November 2001 and will be available from the Secretary at 4 Broadgate, London EC2M 2DA thereafter. - ENDS - For further information please contact: Tim Stevenson, Henderson EuroTrust plc Tel: 020 7818 4100 Stephen Westwood, Head of Investment Trusts Tel: 020 7818 5517 Vicki Staveacre, Henderson Press Office Tel: 020 7818 4222

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