Final Results

Henderson High Income Trust PLC 7 March 2002 6 March 2002 HENDERSON HIGH INCOME TRUST plc Unaudited Preliminary Results for the year ended 31 December 2001 Highlights * Market price per ordinary share up 3.8% * Market price per unit up 9.1% * Total dividend for the year increased by 15.8% to 9.90p Extracts from the Chairman's Statement: Assets and Performance The investment background was particularly difficult throughout the year, reaching a nadir after the atrocities of September 11. Economic conditions had been deteriorating from the beginning of the year and without the significant easing of interest rates by central banks, markets may have been worse. The rate cuts prompted a sharp rally in cyclical and technology stocks, although this is now showing signs of petering out, as investors have begun to question the rate of economic recovery. For a second consecutive year the UK equity market ended at a lower level, although this was offset by a positive performance from the bond market. The Company's ordinary shares registered a positive net asset value total return of 0.3%*, which was a particularly good performance when compared with the 13.3%+ fall in the FTSE All-Share Index and with a dividend yield at 31 December 2001 some 3 times greater than that on the FTSE All-Share Index. The units produced a positive net asset value total return of 2.5%*, assisted by the performance of the zero dividend preference shares. The re-rating of the Company's shares continued during the year, as new investors were attracted to our high dividend yield and record of long term capital performance. As a result the Company's share price regularly traded at a premium to its net asset value and 575,000 new ordinary shares were issued at a premium of 3% to satisfy demand. Supplying these new shares at a premium has enhanced the net asset value of existing shareholders. * Source: AITC Services Limited + Source: Datastream - MORE - - 2 - HENDERSON HIGH INCOME TRUST plc Unaudited Preliminary Results for the year ended 31 December 2001 Dividends The Board has declared a fourth interim dividend of 2.475p per ordinary share, making a total of 9.90p for the year. This represents a rise of 15.8% from the previous year. This increase in dividend reflects the continuing benefits of the reorganisation effected in August 2000. However the prospects for dividend growth from the market have receded and a number of high profile UK companies have materially reduced their dividends. This may impact the Board's ability to further increase the Company's dividends this year but the Board intends to continue the current level of distribution and will review the possibility of increasing future dividends in the light of developing circumstances. The Board As I reported in my statement last year, it is my intention to retire at the forthcoming AGM. I am proud that your Company has remained loyal to its investment objectives over my tenure, when many of our peers have lost their way. Over the last 10 years our persistence has rewarded shareholders, with the share price total return averaging 11.9% per annum. Given that the shares have consistently yielded an average of 6%+, it has been a remarkable achievement to have outperformed the FTSE All-Share over this period. Your Board has agreed that Bill Eason will succeed me as Chairman and I am confident that the Company's future is in good hands. Job Curtis has also indicated that he does not wish to seek re-election to the Board; we would all like to thank Job for his dedication and hard work both as the portfolio manager and latterly as a director of the Company. Prospects The action taken by the Bank of England to cut interest rates to their lowest level since 1963 appears to have averted the advent of recession but has yet to materially stimulate the economy. While leading economic indicators point to signs of a pick up, investors will need some patience before recovery is apparent. Equity valuations are not expensive relative to bonds but, until earnings recover, the stockmarket will struggle to make significant progress. At times when optimism is at its lowest ebb markets can turn on the smallest items of good news and the balance of risk now lies in not being invested rather than being invested. The defensive, high yielding nature of the Company's investments provides considerable comfort in these difficult markets while our element of gearing will assist our participation in a future upturn. Sir Anthony Beaumont-Dark Chairman 6 March 2002 + Source: Datastream - MORE - - 3 - HENDERSON HIGH INCOME TRUST plc Unaudited Preliminary Results for the year ended 31 December 2001 Group Statement of Total Return (incorporating the revenue account) for the year ended 31 December 2001 Year ended 31 December 2001 Year ended 31 December 2000 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Total capital (losses)/gains from investments - (1,314) (1,314) - 7,693 7,693 Income from fixed asset investments 6,147 - 6,147 4,804 - 4,804 Other interest receivable and 97 - 97 161 - 161 similar income ---------- ---------- ---------- ---------- ---------- ---------- Gross revenue and capital gains/(losses) 6,244 (1,314) 4,930 4,965 7,693 12,658 Management fee (299) (448) (747) (357) (312) (669) Other administrative expenses (170) - (170) (157) - (157) ---------- ---------- ---------- ---------- ---------- ---------- Net return/(loss) on ordinary activities 5,775 (1,762) 4,013 4,451 7,381 11,832 before interest payable and taxation Interest payable (338) (1,015) (1,353) (98) (248) (346) ---------- ---------- ---------- ---------- ---------- ---------- Net return/(loss) on ordinary activities 5,437 (2,777) 2,660 4,353 7,133 11,486 before taxation Taxation on net return/(loss) on ordinary (392) 393 1 (216) 168 (48) activities ---------- ---------- ---------- ---------- ---------- ---------- Net return/(loss) on ordinary activities after 5,045 (2,384) 2,661 4,137 7,301 11,438 Taxation Provision for redemption of the zero dividend - (2,221) (2,221) - (784) (784) preference shares in the subsidiary ---------- ---------- ---------- ---------- ---------- ---------- Net return/(loss) attributable to the ordinary 5,045 (4,605) 440 4,137 6,517 10,654 Shareholders ---------- ---------- ---------- ---------- ---------- ---------- Dividends: ordinary shares 1st interim paid of 2.475p (2000: 1.80p) (1,302) - (1,302) (947) - (947) 2nd interim paid of 2.475p (2000: 1.80p) (1,302) - (1,302) (947) - (947) 3rd interim declared of 2.475p (2000: 2.475p) (1,316) - (1,316) (1,302) - (1,302) 4th interim proposed of 2.475p (2000: 2.475p) (1,316) - (1,316) (1,302) - (1,302) ---------- ---------- ---------- ---------- ---------- ---------- (5,236) - (5,236) (4,498) - (4,498) ---------- ---------- ---------- ---------- ---------- ---------- Transfer (from)/to reserves (191) (4,605) (4,796) (361) 6,517 6,156 ====== ====== ====== ====== ====== ====== Return/(loss) per ordinary share 9.58p (8.74)p 0.84p 7.86p 12.39p 20.25p ====== ====== ====== ====== ====== ====== Return per zero dividend preference share in the - 4.22p 4.22p - 1.49p 1.49p Subsidiary ====== ====== ====== ====== ====== ====== Return/(loss) per unit 9.58p (4.52)p 5.06p 7.86p 13.88p 21.74p ====== ====== ====== ====== ====== ====== The revenue columns of this statement represent the revenue accounts of the Group -MORE- - 4- HENDERSON HIGH INCOME TRUST plc Unaudited Preliminary Results for the year ended 31 December 2001 Balance Sheets at 31 December 2001 Group Company Group Company 2001 2001 2000 2000 £'000 £'000 £'000 £'000 Fixed asset investments Listed in the United Kingdom 119,123 119,123 123,713 123,713 ---------- ---------- ---------- ---------- 119,123 119,123 123,713 123,713 ---------- ---------- ---------- ---------- Current assets Debtors 2,019 2,019 4,049 4,049 Bank balances and short term deposits 1,000 1,000 7,829 7,829 ---------- ---------- ---------- ---------- 3,019 3,019 11,878 11,878 Creditors: amounts falling due within one year (24,986) (24,986) (36,584) (36,584) ---------- ---------- ---------- ---------- Net current liabilities (21,967) (21,967) (24,706) (24,706) ---------- ---------- ---------- ---------- 97,156 97,156 99,007 99,007 Total assets less current liabilities Creditors: amounts falling due after more than one year Amounts owed to group undertaking - (29,307) - (27,086) Zero dividend preference shares in the subsidiary (29,307) - (27,086) - Provisions for liabilities and charges - - - - ---------- ---------- ---------- ---------- Total net assets 67,849 67,849 71,921 71,921 ====== ====== ====== ====== Capital and reserves Share capital 2,659 2,659 2,630 2,630 Capital redemption reserve 26,302 26,302 26,302 26,302 Other capital reserves Share premium 5,630 5,630 4,935 4,935 Realised reserve 20,192 20,192 19,222 19,222 Unrealised appreciation 11,922 11,922 17,497 17,497 Revenue reserve 1,144 1,144 1,335 1,335 ---------- ---------- ---------- ---------- Equity shareholders' funds 67,849 67,849 71,921 71,921 ====== ====== ====== ====== Net asset value per ordinary share 127.59p 127.59p 136.72p 136.72p ====== ====== ====== ====== Funds attributable to: Ordinary shares 67,849 71,921 Zero dividend preference shares in the subsidiary 29,307 27,086 ---------- ---------- 97,156 99,007 ====== ====== Net asset value per: Ordinary share 127.59p 136.72p Zero dividend preference share in the subsidiary 55.71p 51.49p ---------- ---------- Unit 183.30p 188.21p ====== ====== - MORE - - 5 - HENDERSON HIGH INCOME TRUST plc Unaudited Preliminary Results for the year ended 31 December 2001 Group Cash Flow Statement for the year ended 31 December 2001 2001 2001 2000 2000 £'000 £'000 £'000 £'000 Net cash inflow from operating activities 5,394 3,338 Servicing of finance Bank overdraft and loan interest paid (1,398) (272) Taxation Taxation recovered 154 204 Financial investment Purchase of investments (50,374) (40,986) Sale of investments 47,867 27,350 ----------- ---------- Net cash outflow from financial investment (2,507) (13,636) Equity dividends paid (5,208) (3,788) ----------- ---------- Net cash outflow before financing (3,565) (14,154) Financing Proceeds from the liquidation of a subsidiary - 3 Issue of shares 724 - Expenses of capital reorganisation 16 (555) Increase in debt 3,807 13,400 ----------- ----------- Net cash inflow from financing 4,547 12,848 ----------- ---------- Increase/(decrease) in cash 982 (1,306) ====== ====== Reconciliation of net cash flow to movement in net debt Increase/(decrease) in cash as above 982 (1,306) Cash inflow from increase in debt (3,807) (13,400) Exchange movements (2) - ----------- --------- Movement in net debt (2,827) (14,706) Net debt at 1 January (18,380) (3,674) ----------- ---------- Net debt at 31 December (21,207) (18,380) ====== ====== -MORE- - 6 - HENDERSON HIGH INCOME TRUST plc Unaudited Preliminary Results for the year ended 31 December 2001 Notes : 1. Share Capital At 31 December 2001 there were in issue 53,178,865 (2000: 52,603,865) ordinary shares of 5p each in the parent and 52,603,865 (2000: 52,603,865) zero dividend preference shares of 50p each in the subsidiary. On 31 October 2001, 75,000 ordinary shares of 5p each were allotted and issued to CLS Nominees Limited at a price of 125.0p per share. On 2 November 2001, 500,000 ordinary shares of 5p each were allotted and issued to Apollo Nominees Limited at a price of 126.0p per share. Therefore, at 31 December 2001 there were 53,178,865 ordinary shares of 5p each in issue (2000: 52,603,865). 2. Return per share a) Returns per ordinary share Revenue return per ordinary share is based on the earnings attributable to the ordinary shares of £5,045,000 (2000: £4,137,000) and on the 52,677,016 weighted average ordinary shares in issue during the year (2000: 52,603,865). Capital loss per ordinary share is based on the net capital loss for the year of £4,605,000 (2000: capital gains of £6,517,000) and on the 52,677,016 weighted average ordinary shares in issue during the year (2000: 52,603,865). b) Returns per zero dividend preference share Capital return per zero dividend preference share reflects the predetermined growth in capital entitlement for the year of £2,221,000 (2000: £784,000) based on the 52,603,865 (2000: 52,603,865) zero dividend preference shares in issue. c) Returns per unit Revenue return per unit, each unit consisting of one ordinary share of 5p each in the Company and one zero dividend preference share of 50p each in the subsidiary, amounts to 9.58p per unit. Capital loss per unit, each unit consisting of one ordinary share of 5p each in the Company and one zero dividend preference share of 50p each in the subsidiary, amounts to (4.52)p per unit. 3. Group accounts The Group accounts consolidate the accounts of the Company and its wholly owned subsidiary, Henderson High Income Trust Securities plc. 4. Expenses All expenses are accounted for on an accruals basis. The Board's expectation is that over the long term three quarters of the Group's investment returns will be in the form of capital gains. On this basis, the Group charges to capital 75% of its finance costs and management fees (to the extent that the management fees relate to the maintenance or enhancement of the valuation of investments). -MORE- - 7 - HENDERSON HIGH INCOME TRUST plc Unaudited Preliminary Results for the year ended 31 December 2001 5. Dividend A fourth interim dividend of 2.475p per ordinary share of 5p each (2000: 2.475p per ordinary share of 5p each) will be paid on 30 April 2002 to shareholders on the register on 22 March 2002. 6. 2001 accounts The preliminary figures for the year ended 31 December 2001 are an extract from the latest accounts of the Group. These accounts have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them. 7. 2000 accounts The figures and financial information for the year ended 31 December 2000 are extracted from the latest published accounts of the Group 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 statements under either section 237(2) or section 237(3) of the Companies Act 1985. 8. Annual Report and Annual General Meeting The full annual report and accounts will be posted to shareholders in March and copies will be available from the Secretary at the Company's Registered Office, 4 Broadgate, London EC2M 2DA. The Annual General Meeting will be held on Wednesday 1 May 2002. - ENDS - For further information please contact : Alex Crooke/James Henderson or Vicki Staveacre Henderson High Income Trust plc Henderson Corporate Affairs Telephone: 020 7818 4100 Telephone: 020 7818 4222 Stephen Westwood Henderson Global Investors Telephone: 020 7818 4100 This information is provided by RNS The company news service from the London Stock Exchange D FR SSAFWMSESEID

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