Final Results

RNS Number : 5784C

Henderson High Income Trust PLC

18 March 2014

 



Page 1

18 March 2014

HENDERSON HIGH INCOME TRUST PLC

Annual Financial Results for the year ended 31 December 2013

This announcement contains regulated information

Performance Summary:

Per ordinary share	31 December 2013	31 December 2012	Change %
Net asset value ("NAV")	169.72p	137.32p	+23.6
Market price	172.75p	138.25p	+25.0
Revenue return	9.12p	8.44p	+8.1

Chairman's Statement

Performance

In my interim statement I suggested that we were entering a period when in airline parlance the 'fasten seat belts' sign would be switched on. In reality there was some turbulence, but actually it turned out to be a very rewarding experience with the Company achieving a net asset total return of 30.7% for the year, far outstripping the 16.8% total return of our benchmark. The credit for this excellent performance, which is a continuum of what we have seen since the nadir of the market in 2009, belongs to our Portfolio Manager, Alex Crooke, who has been ably assisted by David Smith. I am delighted that David's contribution has been recognised by him becoming Co-Portfolio Manager with Alex from the start of 2014. They will expand in their report on how they achieved this performance, but clearly we have benefited not only from our gearing, but also that the general hunt for yield has benefited the sort of companies in which we predominantly invest. This is not to take away from their achievement, as there have been many 'bear traps' along the way to be avoided, and they have undoubtedly again justified the payment to Henderson Global Investors under our performance-related fee arrangement.

It is satisfying to be able to report that the Company has outperformed its benchmark over one, three and five years. This is no mean achievement but also is not a reason for complacency.

Dividends

In my interim report I was delighted to be able to report that we were able to increase our third quarterly dividend paid in October 2013 to 2.125p per share. It remains our aspiration to increase distributions further as and when we can have sufficient confidence that such an increase could be sustainable going forward. We will, therefore, continue to keep the level of our dividend under review as the year unfurls and in light of our actual experience and the investment conditions at the time.

Gearing

Gearing is, as I have often reminded shareholders, an important feature of the Company. We utilise it principally to enable us to generate additional income, and also capital growth over time. With interest rates still lower than the yield on many good quality equities, there are clearly advantages to utilising borrowings at the current time. At the year end the gearing was 22.8% which was higher than it

had been at the same point last year although not quite fully utilising our two year borrowing facility. We will continue to keep the level of gearing under careful consideration.

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HENDERSON HIGH INCOME TRUST PLC

Annual Financial Results for the year ended 31 December 2013

Chairman's Statement (continued)

Issue of new shares

As shareholders will be aware, our shares have traded at a premium to their net asset value for most of the year, indeed at the end of the year the share price was at a 1.8% premium. This has been as a result of a steady demand for our shares in the market and, therefore, we have issued 6,633,074 new shares in the course of the year to meet this demand. This has been within the authority granted to the Board by shareholders at the last AGM and is consistent with our policy of wishing to see the Company grow. This we believe is to the benefit of our existing shareholders, as the issuance of shares at a premium enhances the NAV and the Company's fixed costs are spread over a wider base. In addition, the increased number of shares improves market liquidity in the shares. We will again be asking shareholders to renew this authority at the forthcoming AGM.

Regulatory Issues

Shareholders will be aware that a company like ours is subject to many different regulatory requirements, some which emanate from our own UK authorities and others from the European authorities in Brussels. The burden has increased substantially in recent years, as well as creating additional cost to the Company. I can assure you that your Board spends a significant amount of time diligently dealing with these issues. I am not, however, convinced that all of it really benefits you the shareholders, but that is the world we now live in. There are two notable changes this year. First as a result of the Alternative Investment Managers Directive from Brussels, we have had to appoint an Alternative Investment Fund Manager and a Depositary, in addition to our existing investment manager and custodian. It would considerably lengthen my statement to explain what their responsibilities are compared to those of our current manager and custodian, and why the simplest and cheapest solution has been to appoint these two organisations to take on these new roles from July 2014. The cost of these new appointments will not be significant. One result is that future annual reports will show a longer list of service providers to the Company. The second notable change, arising out of the latest UK reporting requirements, affects the annual report. Those of you who read it from cover to cover, will notice that the format has changed with the inclusion of a Strategic Report. We have always strived to be open and transparent, disclosing more than we have been required to do, so the changes for us effectively represent merely a re-ordering of the information that we have included in our previous annual reports.

Prospects 

In each of my recent statements I have proved to be over cautious about the outlook. However, remembering that a watch that has stopped is more accurate than a watch which is either running fast or slow, I will stick to the same cautionary theme. We have seen good returns in recent years but they are less likely to continue at a similar rate. That is not to say that we will not have positive returns, but they are likely to be more modest particularly as valuations are no longer cheap and we should be mindful that there could be more turbulence around, as we saw in the opening weeks of this year, and so the 'fasten seat belts' sign is still switched on.

Hugh Twiss, MBE

Chairman

18 March 2014

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HENDERSON HIGH INCOME TRUST PLC

Annual Financial Results for the year ended 31 December 2013

Investment Review

Review of the year to 31 December 2013

Following on from 2012, equity markets were strong last year, underpinned by improving economic data in the UK, US and Europe leading to confidence that the global recovery would be sustainable. The majority of months saw positive returns with the occasional setback on fears over central banks' early taper of their respective quantitative easing programmes, ironically due to the robust economic growth.

In the UK, Mark Carney was appointed as the Governor of the Bank of England and immediately set about supporting confidence in the recovery by announcing a promise to leave interest rates unchanged at least until unemployment had fallen to 7%. The UK government launched its controversial Help to Buy scheme in April with the intention of reviving the housing market. Corporates generally reported good results with strong dividend growth, especially those domestically exposed.

The Company's NAV total return was 30.7%, benefiting from the outperformance of both equities and bonds combined with the positive contribution of gearing. The equity portfolio returned 28.6% compared to the FTSE All-Share Index gain of 20.8%. The equity portfolio was aided by the limited exposure to some of the worst performing sectors of the market, such as Mining and Oils, as well as the large proportion of investments in mid-sized and smaller domestic companies. Holdings in housebuilders Galliford Try and Persimmon, life insurer Chesnara and food packaging company Hilton Foods all produced high returns well in excess of the market. Within the larger capitalised holdings, positions in telecoms including BT Group and Vodafone also contributed to outperformance.

The fixed income portfolio delivered a strong performance despite gilt yields rising over the period with a total return of 10.6% against the 0.8% return from the Merrill Lynch Sterling Non-Gilts Index. With interest rates at low levels investors sought out the higher yielding areas of credit markets, benefiting the portfolio's exposure to high coupon corporate bonds and subordinated financial bonds. Ten year government bond yields in the US and UK trended higher throughout the year reflecting the improving underlying economies. However, the portfolio was positioned with shorter dated bonds relative to the benchmark which proved positive to performance in this environment.

The income return over the year rose 8.1% to 9.12p per share which helped build revenue reserves and support an increase in the final two quarterly dividends. Underlying dividend growth from our investments was good, as despite lacklustre market earnings growth, companies in general increased payouts given their belief in the sustainability of economic recovery and the strength of balance sheets and cash flows. Special dividends also helped the Company's revenue account with Persimmon, Standard Life, Sage and ITV all paying out extra cash distributions to shareholders.

The Company actively increased the gearing level at the start of the year, both in terms of net debt (£24.3m to £38.9m) and as a percentage of shareholders' funds (18.3% to 22.8%). The proceeds from this increase were invested into equities as we felt valuations were particularly attractive.

Portfolio Activity

The main change to the Company's portfolio positioning was increasing the fund's exposure to equities through additional gearing. This also had the impact of lowering the fixed income element of the Company given we believed equities offered superior returns to bonds over the medium term.

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HENDERSON HIGH INCOME TRUST PLC

Annual Financial Results for the year ended 31 December 2013

Investment Review (continued)

Within the equity portfolio the exposure to the media sector was increased with new positions in Reed Elsevier, the professional publishing and information services business and pay TV and broadband operator BSkyB. Both companies have large market shares in their respective industries, strong balance sheets, good cash flows and attractive, growing dividends. Other new holdings included housebuilder Persimmon where the outlook for the housing market looked particularly appealing due to government initiatives and software services company Sage Group, given the opportunity for better revenue growth from European economic recovery. Positions in renewable energy infrastructure funds, Greencoat UK Wind and Foresight Solar Fund were also added because of their high and attractive dividend yields backed by government subsidies. After a period of significant underperformance, we initiated a holding in miner BHP Billiton as the valuation had reached a compelling level. The new management team are focused on cutting costs, reducing capital expenditure and selling underperforming assets which should improve cash flow and ultimately dividends.

Sales during the year included positions in Sainsbury and RSA Insurance. We felt Sainsbury's prospects were declining due to increasing competition from the deep discounting supermarkets Aldi and Lidl. RSA disappointingly cut its dividend to a level we believed was not attractive enough to compensate for the deteriorating outlook for the company. Elsewhere we sold our positions in cleaning and supply services business Berendsen and distributor Electrocomponents after a period of outperformance.

The fixed income portfolio added a number of new holdings in the period including Arqiva, the UK's national provider of television and radio broadcast infrastructure, and building society Nationwide. The non-sterling exposure has been maintained with purchases of German cable operator Unity Media and German utility metering business Techem funded from the sale of Ziggo, the Dutch cable operator, and Rexel, a French distributor of electrical equipment. Approximately 25% of the fixed income portfolio is issued in currencies other than sterling, however this exposure is partly offset by borrowings in Euros and US dollars.

Outlook

The UK economic recovery seems to be gaining momentum and should be underpinned by the Bank of England's desire to keep interest rates at historic lows. However risks remain from either early interest rate hikes or aggressive tapering of respective quantitative easing programmes by central banks around the world. Although this may signal that economies are in sufficient health, given the scale of liquidity to be withdrawn is unprecedented the likely impact is largely unknown. Emerging markets have already weakened on the US Federal Reserve's announced tapering in December and collectively they are becoming a more significant part of global GDP. Caution is needed that market and currency weakness in these countries do not escalate to disrupt the global economic recovery.

Equity markets have now performed strongly in the last two years with valuations reaching their long term average.

However equities still represent good value relative to bonds therefore the portfolio's bond exposure is likely to remain at current levels unless yields move to a more compelling level. The prospects for equity dividend growth are good and with momentum in economic activity, a significant equity exposure relative to bonds remains preferable. This increases the proportion of the investment portfolio which should experience income growth. In the current year we expect to continue to utilise gearing to enhance both income and capital growth when we feel opportunities exist in investment markets.

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HENDERSON HIGH INCOME TRUST PLC

Annual Financial Results for the year ended 31 December 2013

Investment Review (continued)

At the beginning of last year we thought the key to sustained recovery in equity markets would be earnings growth from the largest sectors of the market. Although aggregate earnings disappointed, the equity market was strong in 2013 as investors re-rated share prices on the assumption of future profit recovery from improving economic data. We remain confident earnings growth will be delivered this year, given the economic momentum, which is needed for equities to continue to perform well. Dividends in aggregate are expected to exhibit attractive growth which is likely to further underpin the equity market.

Alex Crooke & David Smith

Co-Portfolio Managers

18 March 2014

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HENDERSON HIGH INCOME TRUST PLC

Annual Financial Results for the year ended 31 December 2013

Principal risks and uncertainties

The Board has drawn up a matrix of risks facing the Company and has put in place a schedule of investment limits and restrictions, appropriate to the Company's investment objective and policy, in order to mitigate these risks as far as practicable. The principal risks which have been identified and the steps taken by the Board to mitigate these are as follows:

● Investment activity and performance

An inappropriate investment strategy (for example, in terms of asset allocation or the level of gearing) may result in underperformance against the Company's benchmark index and the companies in its peer group. The Board monitors investment performance at each Board meeting and regularly reviews the extent of its borrowings.

● Financial

By its nature as an investment trust, the Company's business activities are exposed to market risk (including currency risk, interest rate risk and other price risk), liquidity risk, and credit and counterparty risk.

Although the Company invests almost entirely in securities that are quoted on recognised markets, share prices may move rapidly. The companies in which investments are made may operate unsuccessfully, or fail entirely. A fall in the market value of the Company's portfolio would have an adverse effect on shareholders' funds. The Directors review the portfolio each month and risk is mitigated through diversification of investments in the portfolio.

Further details of these risks and how they are managed are contained in note 13 in the Annual Report and Financial Statements.

● Regulatory

A breach of Section 1158 of the Corporation Tax Act 2010 could lead to a loss of investment trust status, resulting in capital gains realised within the portfolio being subject to corporation tax. A breach of the UKLA Listing Rules could result in suspension of the Company's shares, while a breach of the Companies Act 2006 could lead to criminal proceedings, or financial or reputational damage. The Manager has contracted to provide investment, company secretarial, accounting and administration services through qualified professionals. The Board receives internal control reports produced by the Manager on a quarterly basis, which confirm regulatory compliance.

● Operational

Disruption to, or failure of, the Manager's accounting, dealing or payment systems or the custodian's records could prevent the accurate reporting and monitoring of the Company's financial position. The Company is also exposed to the operational risk that one or more of its suppliers may not provide the required level of service. Details of how the Board monitors the services provided by the Manager and its other suppliers, and the key elements designed to provide effective internal control, are explained further in the internal controls section of the corporate governance statement in the Annual Report and Financial Statements.

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HENDERSON HIGH INCOME TRUST PLC

Annual Financial Results for the year ended 31 December 2013

Related Party transactions

Investment management, accounting, company secretarial and administration services are provided to the Company by wholly-owned subsidiary companies of Henderson Global Investors Limited. The provision of services by Henderson is the only related party arrangement currently in place.  Other than fees payable by the Company in the ordinary course of business there have been no material transactions with this related party affecting the financial position or performance of the Company during the year under review. 

Statement of directors' responsibilities

To the best of our knowledge:

a)         the financial statements, prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), give a true and fair view of the assets, liabilities, financial position and profit of the Company; and

b)         the Annual Report and Financial Statements includes a fair review of the development and performance of the business and the position of the Company together with a description of the principal risks and uncertainties that it faces.

For and on behalf of the Board

Hugh Twiss, MBE

Chairman

18 March 2014

Page 8

HENDERSON HIGH INCOME TRUST PLC

Annual Financial Results for the year ended 31 December 2013

 

Income Statement

for the year ended 31 December 2013

	Year ended 31 December 2013			Year ended 31 December 2012
	Revenue return £'000	Capital return £'000	Total £'000	Revenue return £'000	Capital return £'000	Total £'000
Gains on investments held at fair value through profit or loss (note 2)	-	33,858	33,858	-	16,090	16,090
Income from investments held at fair value through profit or loss (note 3)	10,080	-	10,080	8,540	-	8,540
Other interest receivable and similar income (note 4)	13	-	13	196	-	196
	----------	----------	----------	----------	----------	----------
Gross revenue and capital gains	10,093	33,858	43,951	8,736	16,090	24,826
Management and performance fees (note 5)	(305)	(2,616)	(2,921)	(274)	(1,476)	(1,750)
Other administrative expenses	(329)	-	(329)	(321)	-	(321)
	----------	----------	----------	----------	----------	----------
Net return on ordinary activities before finance costs and taxation	9,459	31,242	40,701	8,141	14,614	22,755
Finance costs	(137)	(408)	(545)	(145)	(436)	(581)
	----------	----------	----------	----------	----------	----------
Net return on ordinary activities before taxation	9,322	30,834	40,156	7,996	14,178	22,174
Taxation on net return on ordinary activities	(207)	189	(18)	(233)	227	(6)
	----------	----------	----------	----------	----------	----------
Net return on ordinary activities after taxation	9,115	31,023	40,138	7,763	14,405	22,168
	======	======	======	======	======	======
Return per ordinary share (note 6)	9.12p	31.06p	40.18p	8.44p	15.67p	24.11p
	======	======	======	======	======	======
The total columns of this statement represent the income statement of the Company.  All capital and revenue items derive from continuing operations.  No operations were acquired or discontinued during the year.  The Company has no recognised gains or losses other than those recognised in the income statement.

            Page 9

HENDERSON HIGH INCOME TRUST PLC

Annual Financial Results for the year ended 31 December 2013

Reconciliation of Movements in Shareholders' Funds

for the year ended 31 December 2013

Year ended 31 December 2013	Called up share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Other capital reserves £'000	Revenue reserve £'000	Total £'000
At 31 December 2012	4,834	70,386	26,302	27,571	3,671	132,764
Net return on ordinary activities after taxation	-	-	-	31,023	9,115	40,138
Issue of new  shares	332	10,368	-	-	-	10,700
Fourth interim dividend (2.075p per share) for the year ended 31 December 2012 paid 31 January 2013	-	-	-	-	(2,006)	(2,006)
First interim dividend (2.075p per share) for the year ended 31 December 2013 paid 30 April 2013	-	-	-	-	(2,043)	(2,043)
Second interim dividend (2.075p per share) for the year ended 31 December 2013 paid 31 July 2013	-	-	-	-	(2,066)	(2,066)
Third interim dividend (2.125p per share) for the year ended 31 December 2013 paid 31 October 2013	-	-	-	-	(2,146)	(2,146)
Refund of unclaimed dividends	-	-	-	-	7	7
	--------	---------	---------	---------	---------	----------
At 31 December 2013	5,166	80,754	26,302	58,594	4,532	175,348
	=====	=====	=====	=====	=====	======
Year ended 31 December 2012	Called up share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Other capital reserves £'000	Revenue reserve £'000	Total £'000
At 31 December 2011	4,485	61,462	26,302	13,166	3,455	108,870
Net return on ordinary activities after taxation	-	-	-	14,405	7,763	22,168
Issue of new shares	349	8,924	-	-	-	9,273
Fourth interim dividend (2.075p per share) for the year ended 31 December 2011 paid 31 January 2012	-	-	-	-	(1,861)	(1,861)
First interim dividend (2.075p per share) for the year ended 31 December 2012 paid 30 April 2012	-	-	-	-	(1,869)	(1,869)
Second interim dividend (2.075p per share) for the year ended 31 December 2012 paid 31 July 2012	-	-	-	-	(1,883)	(1,883)
Third interim dividend (2.075p per share) for the year ended 31 December 2012 paid 31 October 2012	-	-	-	-	(1,938)	(1,938)
Refund of unclaimed dividends	-	-	-	-	4	4
	--------	---------	---------	---------	---------	----------
At 31 December 2012	4,834	70,386	26,302	27,571	3,671	132,764
	=====	=====	=====	=====	=====	======

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HENDERSON HIGH INCOME TRUST PLC

Annual Financial Results for the year ended 31 December 2013

Balance Sheet

at 31 December 2013

	2013 £'000	2012 £'000
Investments held at fair value through profit or loss	215,334	157,097
	----------	----------
Current assets
Debtors	1,476	1,384
Cash at bank	184	3,250
	----------	----------
	1,660	4,634
Creditors: amounts falling due within one year	(41,646)	(28,967)
	----------	----------
Net current liabilities	(39,986)	(24,333)
	----------	----------
Total assets less current liabilities	175,348	132,764
	======	======
Capital and reserves
Share capital	5,166	4,834
Share premium account	80,754	70,386
Capital redemption reserve	26,302	26,302
Other capital reserves	58,594	27,571
Revenue reserve	4,532	3,671
	----------	----------
Equity shareholders'  funds	175,348	132,764
	======	======
Net asset value per ordinary share (note 7)	169.72p	137.32p
	======	======

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HENDERSON HIGH INCOME TRUST PLC

Annual Financial Results for the year ended 31 December 2013

Cash Flow Statement

for the year ended 31 December 2013

	2013 £'000	2013 £'000	2012 £'000	2012 £'000
Net cash inflow from operating activities (note 8)		7,731		6,810
Servicing of finance
Bank overdraft and loan interest paid		(524)		(564)
Taxation
Tax recovered		61		13
Financial investment
Purchases of investments	(54,637)		(26,517)
Sales of investments	30,328		21,674
	----------		----------
Net cash outflow from financial investment		(24,309)		(4,843)
Equity dividends paid		(8,254)		(7,547)
		----------		----------
Net cash outflow before financing		(25,295)		(6,131)
Financing
Issue of shares	10,700		9,273
Drawdown/(repayment) of loans	11,596		(671)
	----------		----------
Net cash inflow from financing		22,296		8,602
		----------		----------
(Decrease)/increase in cash in the year		(2,999)		2,471
		======		======
Reconciliation of net cash flow to movement in net debt
(Decrease)/increase in cash as above		(2,999)		2,471
Cash (inflow)/outflow from repayment of loans		(11,596)		671
Exchange movements		(67)		97
		-----------		-----------
Movement in net debt		(14,662)		3,239
Net debt at 1 January		(24,279)		(27,518)
		-----------		-----------
Net debt at 31 December		(38,941)		(24,279)
		======		======

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HENDERSON HIGH INCOME TRUST PLC

Annual Financial Results for the year ended 31 December 2013

Notes:

1.  Basis of accounting

The financial statements have been prepared on the historical cost basis except for the measurement at fair value of investments.  The financial statements have been prepared in accordance with applicable UK accounting standards and with the Statement of Recommended Practice Financial Statements of Investment Trust Companies and Venture Capital Trusts ("the SORP") dated January 2009.  All of the Company's operations are of a continuing nature.

2.  Gains on investments held at fair value through profit or loss

	2013 £'000	2012 £'000
Gains/(losses) on sale of investments based on historical cost	4,543	(3,150)
Less: revaluation (gains)/losses recognised in previous years	(3,224)	3,906
	---------	---------
Gains on investments sold in the year based on carrying value at the previous balance sheet date	1,319	756
Net movement on revaluation of investments	32,609	15,237
Exchange (losses)/gains	(70)	97
	---------	---------
	33,858	16,090
	=====	=====

3.  Income from investments held at fair value through profit or loss

	2013 £'000	2012 £'000
Franked:
Listed - dividends	6,713	5,548
	-------	-------
Unfranked:
Listed -  interest income	1,519	1,371
-  dividend income	1,848	1,621
	-------	-------
	3,367	2,992
	-------	-------
	10,080	8,540
	=====	====

4.   Other interest receivable and similar income

	2013 £'000	2012 £'000
Bank interest	1	1
Underwriting commission	12	36
Option premium income	-	159
	-----	------
	13	196
	===	===

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HENDERSON HIGH INCOME TRUST PLC

Annual Financial Results for the year ended 31 December 2013

Notes (continued)

5.   Management and performance fees

	2013 Revenue return £'000	2013 Capital return £'000	2013 Total £'000	2012 Revenue return £'000	2012 Capital return £'000	2012 Total £'000
Management fee	305	457	762	274	411	685
Performance fee	-	2,159	2,159	-	1,065	1,065
	------	-------	-------	------	-------	-------
	305	2,616	2,921	274	1,476	1,750
	====	====	====	====	====	====

A summary of the terms of the management agreement is given on page 14 of the Report and Financial Statements. An explanation of the split between revenue and capital is contained in accounting policy 1(f) on page 31 of the Report and Financial Statements. A performance fee of £2,159,000 was earned during the year (2012:  £1,065,000).  A further £239,000 in respect of the performance fee above the cap has been carried forward to the succeeding financial year.

6.  Return per ordinary share

The return per ordinary share figure is based on the gains attributable to the ordinary shares of £40,138,000 (2012: £22,168,000) and on the 99,894,668 weighted average number of ordinary shares in issue during the year (2012: 91,953,053).

The Company had no securities in issue that could dilute the return per ordinary share.

The return per ordinary share can be analysed between revenue and capital, as shown below:

	2013 £'000	2012 £'000
Net revenue return	9,115	7,763
Net capital return	31,023	14,405
	----------	----------
Net total return	40,138	22,168
	======	======
Weighted average number of ordinary shares in issue during the year	99,894,668	91,953,053
	Pence	Pence
Revenue return per ordinary share	9.12	8.44
Capital return per ordinary share	31.06	15.67
	----------	----------
Total return per ordinary share	40.18	24.11
	======	======

7.   Net asset value per ordinary share

The net asset value per ordinary share is based on the net assets attributable to the ordinary shares of £175,348,000 (2012: £132,764,000) and on the 103,313,818 ordinary shares in issue at 31 December 2013 (2012: 96,680,744 ordinary shares).

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HENDERSON HIGH INCOME TRUST PLC

Annual Financial Results for the year ended 31 December 2013

Notes (continued)

8.   Reconciliation of net return on ordinary activities before finance costs

      and taxation to net cash inflow from operating activities

	2013 £'000	2012 £'000
Net return before finance costs and taxation	40,701	22,755
Gains on investments held at fair value through profit or loss	(33,858)	(16,090)
(Decrease)/increase in accrued income and debtors of a revenue nature	(137)	339
Increase/(decrease) in creditors	1,062	(176)
Tax deducted on investment income	(37)	(18)
	--------	--------
Net cash inflow from operating activities	7,731	6,810
	=====	=====

9.   Dividends

A fourth interim dividend of 2.125p per ordinary share (2012: 2.075p per ordinary share) was paid on 31 January 2014.  

A first interim dividend of 2.125p per ordinary share for the year to 31 December 2014 (2013: 2.075p per ordinary share) will be paid on 30 April 2014 to shareholders on the register on 11 April 2014. The shares will be quoted ex-dividend from 9 April 2014.

10.   Going concern statement

As the assets of the Company consist mainly of a portfolio of diversified securities that are readily realisable, the Company has adequate financial resources to meet its liabilities and continue in operational existence for the foreseeable future.  The directors therefore believe that it is appropriate to continue to adopt the going concern basis in preparing the financial statements.  In reviewing the position as at the date of this announcement, the Board has considered the guidance on this matter issued by the Financial Reporting Council in October 2009.

11.   2013 Financial information

The figures and financial information for 2013 are extracted from the Report and Financial Statements for the year ended 31 December 2013 and do not constitute the statutory accounts for the year. The Report and Financial Statements includes the Independent Auditor's Report which is unqualified and does not contain a statement under either Section 498(2) or Section 498(3) of the Companies Act 2006.  The Report and Financial Statements have not yet been delivered to the Registrar of Companies.

12.   2012 Financial information

The figures and financial information for 2012 are extracted from the Report and Financial Statements for the year ended 31 December 2012 and do not constitute the statutory accounts for the year.  The Report and Financial Statements includes the Independent Auditor's Report which is unqualified and does not contain a statement under either Section 498(2) or Section 498(3) of the Companies Act 2006.  The Report and Financial Statements have been delivered to the Registrar of Companies.

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HENDERSON HIGH INCOME TRUST PLC

Annual Financial Results for the year ended 31 December 2013

Notes (continued)

13.   Report and financial statements

The Report and Financial Statements will be posted to shareholders in early April 2014 and will be available thereafter on the Company's website (www.hendersonhighincome.com) or from the Company's Registered Office, 201 Bishopsgate, London, EC2M 3AE.

14.    Annual General Meeting

The Annual General Meeting will be held on 13 May 2014 at 12.00 noon at the Company's Registered Office. The Notice convening the Annual General Meeting will be available on the Company's website.

For further information please contact:

Alex Crooke

Portfolio Manager

Henderson High Income Trust plc

Telephone: [phone]

David Smith

Portfolio Manager

Henderson High Income Trust plc

Telephone: [phone]

James de Sausmarez

Director and Head of Investment Trusts

Henderson Global Investors

Telephone: [phone]

Sarah Gibbons-Cook

Investor Relations and PR Manager, Investment Trusts

Henderson Global Investors

Telephone: [phone]

- ENDS -

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

 

END

 

 

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