Final Results

Henderson Eurotrust PLC 18 September 2002 18 SEPTEMBER 2002 HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2002 Financial Highlights 31 July 2002 31 July 2001 Change pence pence % Net Asset Value per ordinary share 232.64 307.16 -24.3 per zero dividend preference share 67.91 60.14 +12.9 per unit (one ordinary share and one zero dividend preference share) 300.55 367.30 -18.2 Earnings per ordinary share/unit 2.36 2.95 -20.0 Dividends per ordinary share/unit 2.50 2.50 - Extract from Chairman's Statement The year ended 31 July 2002 saw both external and internal events which significantly influenced current performance but also initiated a new chapter in the history of the Company. No area of economic activity and none of the world's equity markets were left unaffected by the tragic events in New York on 11 September 2001. Towards the end of the fiscal year, Extraordinary General Meetings of the members of Henderson EuroTrust plc approved proposals to extend the life of the Company coupled with arrangements to increase the equity capital, introduce flexible gearing arrangements following the repayment of the zero dividend preference shares on 31 October 2002, reduce the annual management fee and introduce a performance related fee. In markets made unusually volatile by both economic and political events, the performance of the Company exceeded that of the benchmark the FTSE World Europe (ex UK) Index. The total return including dividend income on the Henderson EuroTrust units was a decline of 17.5%, compared with a 26.6% decline on the index. The decline of 23.4% in the total return on the ordinary shares was greater, reflecting the gearing inherent in the current structure of the Company. Now that the Company has a ten year track record, it is interesting to reflect on the long term achievements of the Company. The total assets represented by the net asset value (NAV) of the units, have shown a compound annual growth rate (CAGR) of 12.2%. This is a highly respectable performance compared with the 8.3% CAGR recorded by the benchmark index. Long term shareholders will remember the change of investment strategy in 1995 to focus on capital growth, since when the outperformance against the index is stronger, with the NAV of - MORE - - 2 - HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2001 the units showing a CAGR of 9.5% against 3.8% for the index. Before the events of September last year, the Euro zone economy and that of the EU as a whole began to show some signs of disconnecting from the US economy. Helped by a strong Dollar (or weak Euro), and by some encouraging signs of market reform and liberalisation, continental economies showed stable growth rates in the face of weaker demand and investment in the US. After 11 September 2001, all markets suffered equally, whilst consumer confidence and corporate propensity to invest weakened on both sides of the Atlantic. Recent corporate scandals in the United States have had a marked effect on investor confidence, but there are encouraging signs that European markets are less affected and even beginning to benefit from some reversal of capital flows in their direction, after a decade of net outflows towards the US. During the year under review, the managers, Henderson Global Investors, initiated corporate action designed to replace the Board of Charter European Trust with new directors who declared an intention to seek a merger with the Company. Henderson EuroTrust was not itself a party to the actions taken by the manager and bore none of the expenses involved. The proposals were narrowly defeated. However, the operation drew attention to the superior investment performance of Henderson EuroTrust and greatly facilitated the capital increase which was carried out before the end of the year. The number of ordinary shares now in issue is 45.9% more than at the previous year end. None of the momentous events or investment trends that were witnessed over the year under review has altered the Company's investment mandate. It is still believed that a policy of identifying a controlled number of sound companies located in Europe (excluding the UK) demonstrating sustainable growth prospects over the medium term, and managed to enhance total returns to shareholders, is the right one for a Company seeking essentially to expose UK investors to positive developments in the European economy. Despite the uncertainties associated with the present cycle, the outlook in general in Europe suggests continued progress in maintaining economic growth in a low inflation environment, coupled with a desire, despite obvious political difficulties, to modernise economic institutions and to move towards a genuine single market. It has been a busy time for Henderson EuroTrust over the past twelve months, and the Company moves into the new financial year with a larger capital base and a more appropriate gearing policy. Markets may remain challenging but there continue to be a good number of opportunities for the managers as the process of change in Continental Europe accelerates. - MORE - - 3 - HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2002 Statement of Total Return (incorporating the revenue account) for the year ended 31 July 2002 (Unaudited) (Audited) Year Ended 31 July 2002 Year ended 31 July 2001 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Total capital losses from investments - (13,457) (13,457) - (20,848) (20,848) Income from fixed asset investments 948 - 948 993 - 993 Other interest receivable and similar income 105 - 105 179 - 179 ---------- ---------- ---------- ---------- ---------- ---------- Gross revenue and capital losses 1,053 (13,457) (12,404) 1,172 (20,848) (19,676) Management fee (295) (295) (590) (339) (339) (678) Other administrative expenses (115) (115) (230) (112) (112) (224) ---------- ---------- ---------- ---------- ---------- ---------- Net return on ordinary activities before taxation 643 (13,867) (13,224) 721 (21,299) (20,578) Taxation on net return on ordinary activities (217) 118 (99) (203) 90 (113) ---------- ---------- ---------- ---------- ---------- ---------- Net return on ordinary activities after taxation 426 (13,749) (13,323) 518 (21,209) (20,691) ---------- ---------- ---------- ---------- ---------- ---------- Capital gains attributable to zero dividend preference shares - (1,366) (1,366) - (1,209) (1,209) ---------- ---------- ---------- ---------- ---------- ---------- Net return attributable to ordinary shareholders 426 (15,115) (14,689) 518 (22,418) (21,900) ---------- ---------- ---------- ---------- ---------- ---------- Dividends - ordinary shares First interim paid 1.0p (2001: 1.0p) (176) - (176) (176) - (176) Second interim paid 0.5p (2001: nil) (88) - (88) - - - Final proposed 1.0p (2001: 1.5p) (257) - (257) (264) - (264) ---------- ---------- ---------- ---------- ---------- ---------- (521) - (521) (440) - (440) ---------- ---------- ---------- ---------- ---------- ---------- Transfer (from)/to reserves (95) (15,115) (15,210) 78 (22,418) (22,340) ========== ========== ========== ========== ========== ========== Return per Zero dividend preference share - 7.77p 7.77p - 6.87p 6.87p Ordinary share 2.36p (83.64)p (81.28)p 2.95p (127.47)p (124.52)p ========== ========== ========== ========== ========== ========== 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 2002 Balance Sheet at 31 July 2002 (Unaudited) (Audited) 31 July 2002 31 July 2001 £'000 £'000 Fixed asset investments Listed overseas 61,983 61,909 ------------ ------------ Current assets Debtors 138 1,028 Cash at bank and short term deposits 11,183 4,185 ------------ ------------ 11,321 5,213 Creditors: amounts falling due within one year (1,650) (2,523) ------------ ------------ Net current assets 9,671 2,690 ------------ ------------ Total assets less current liabilities 71,654 64,599 ------------ ------------ Total net assets 71,654 64,599 ============ ============ Capital and reserves Called-up share capital 4,800 4,396 Share premium account 33,838 12,491 Other reserves Redemption reserve 8,426 7,060 Capital reserves - realised 30,084 33,587 - unrealised (5,919) 6,545 Revenue reserve 425 520 ------------ ------------ Shareholders' funds 71,654 64,599 ============ ============ Shareholders' funds attributable to Non-equity interests - zero dividend preference shares 11,943 10,577 Equity interests - ordinary shares 59,711 54,022 ------------ ------------ 71,654 64,599 ============ ============ Net asset value per Zero dividend preference share 67.91p 60.14p Ordinary share 232.64p 307.16p ============ ============ - MORE - - 5 - HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2002 Cash Flow Statement For the year ended 31 July 2002 (Unaudited) (Audited) 2002 2002 2001 2001 £'000 £'000 £'000 £'000 Net cash (outflow)/inflow from operating activities (70) 56 Taxation UK tax recovered - 6 Overseas tax recovered 74 91 ------------ ------------ Net tax recovered 74 97 Financial investment Purchase of investments (55,095) (60,546) Sale of investments 41,417 61,425 ------------ ------------ Net cash (outflow)/inflow from financial investment (13,678) 879 Equity dividends paid (528) (440) ------------ ------------ Management of liquid resources Cash placed on deposit (6,000) - ------------ ------------ (6,000) - ------------ ------------ Net cash (outflow)/inflow before financing (20,202) 592 Financing Proceeds from issue of ordinary shares 22,163 - Expenses paid in respect of share issue (916) - ------------ ------------ 21,247 - ------------ ------------ Increase in cash 1,045 592 ============ ============ Reconciliation of net cash flow to movement in net funds Increase in cash as above 1,045 592 Cash outflow from liquid resources 6,000 - Exchange movements (47) (143) ------------ ------------ Movement of net funds 6,998 449 Net funds at 1 August 4,185 3,736 ------------ ------------ Net funds at 31 July 11,183 4,185 ============ ============ - MORE - - 6 - HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2002 Notes : 1. Return per share Return per zero dividend preference share reflects the predetermined growth in capital entitlement for the year of £1,366,000 (2001: £1,209,000) and on the 17,587,348 zero dividend preference shares in issue (2001: 17,587,348). Revenue return per ordinary share is based on earnings attributable to ordinary shares of £426,000 (2001: £518,000) and on the weighted average number of ordinary shares in issue during the year being 18,074,341 (2001: 17,587,348). Capital return per ordinary share is based on the net capital losses, after deduction of the zero dividend capital entitlement, of £15,115,000 (2001: £22,418,000) and on the same weighted average number of ordinary shares in issue. 2. 2001 Accounts The figures and financial information for the year ended 31 July 2001 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. 2002 Accounts The preliminary figures for the year ended 31 July 2002 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 1.0p per ordinary share/unit, if approved, will be paid on 12 November 2002 to holders of ordinary shares/units on the register of members at close of business on 4 October 2002. The Company's shares will be quoted ex-dividend on 2 October 2002. 5. Annual General Meeting Copies of the Annual Report will be posted to shareholders in early October 2002 in time for the Annual General Meeting on 5 November 2002 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 Telephone: 020 7818 4100 Stephen Westwood Head of Investment Trusts, Henderson Global Investors Telephone: 020 7818 5517 Stephen Phillips Investor Relations Manager, Henderson Global Investors Telephone: 020 7818 6417 Mark Vickery Henderson Press Office Telephone: 020 7818 4222 This information is provided by RNS The company news service from the London Stock Exchange

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