Final Results

Henderson Strata Investments PLC 17 December 2001 HENDERSON GLOBAL INVESTORS HENDERSON STRATA INVESTMENTS PLC EMBARGOED FOR RELEASE AT 7.00 AM ON MONDAY 17 DECEMBER 2001 14 DECEMBER 2001 HENDERSON STRATA INVESTMENTS PLC Unaudited Preliminary Results for the year ended 31 October 2001 The Chairman's Statement: Net Assets After a decade in which the movement in the net asset value per share outperformed our comparative index every year, the last twelve months have been disappointing. The net asset value per share fell 52.4%, compared with a fall of 29.7% in the FTSE SmallCap Index (excluding investment companies). The fall in the index with income included was 27.2%. Review Interest rates have been reduced aggressively throughout 2001 to levels last seen some forty years ago. This has been in response to weakening economic activity. Disappointing profit figures from industry have confirmed the slowdown which has been exacerbated by the need for many companies to reduce excessive inventory levels. The technology related sectors have been particularly weak in share price terms after the very strong period in 1999 and early 2000. We believe that the medium term prospects for many of the companies in these sectors are very promising and that they will achieve good growth in earnings over the next few years. The tragic events of 11 September have proved to be a turning point for stockmarkets as the co-ordinated rate cuts which followed seem to have changed the mood of investors. Recent signs suggest that confidence is returning, a change best demonstrated by stock prices rising on further bad news. Nevertheless, it will be some time before company trading statements confirm that the major economies have passed their low point. Portfolio We have not made major changes to the portfolio since we last reported in June. However, we have been quick to sell holdings where long term prospects have clearly deteriorated while we have added to others which had fallen to attractive valuations, even on reduced forecasts. The effect has been a reduction in net borrowings to just under £4 million at the end of October. - 2 - Outlook Growth companies remain the core of the portfolio and in a low inflation environment will produce the best returns for investors. The setback of the last year has reduced their ratings to much more attractive levels. Finding such companies becomes more difficult at a time of low economic activity but those with steady, above average and predictable earnings growth should prove profitable investments over the coming year. Given the likelihood of further interest rate cuts in the US, here and in Europe, together with the prospect of a recovery in corporate profits, we expect smaller company share prices to rise over the coming year. Frans ten Bos Chairman - 3 - HENDERSON STRATA INVESTMENTS PLC Unaudited Preliminary Results for the year ended 31 October 2001 Statement of Total Return (incorporating the revenue account) for the year ended 31 October 2001 Year ended 31 October 2001 Year ended 31 October 2000 (unaudited) Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Total - (93,025) (93,025) - 55,857 55,857 capital (losses)/gains on investments Income 870 - 870 943 - 943 from fixed asset investments Other 130 - 130 125 - 125 interest receivable and similar income -------- --------- ---------- ------- ------- -------- Gross 1,000 (93,025) (92,025) 1,068 55,857 56,925 revenue and capital (losses)/gains Management (1,442) - (1,442) (1,873) - (1,873) fee Other (204) - (204) (208) - (208) administrat ive expenses -------- --------- ---------- ------- ------- -------- Net (loss)/return on ordinary activities before (646) (93,025) (93,671) (1,013) 55,857 54,844 interest payable and taxation Interest (699) - (699) (1,003) - (1,003) payable -------- --------- ---------- ------- ------- -------- Net (loss)/return on ordinary activities before (1,345) (93,025) (94,370) (2,016) 55,857 53,841 taxation Taxation (39) - (39) (38) - (38) on net loss on ordinary activities -------- --------- ---------- ------- ------- -------- Net (loss)/return on ordinary activities after (1,384) (93,025) (94,409) (2,054) 55,857 53,803 taxation Dividends - - - - - - - nil -------- --------- ----------- ------- ------- -------- Transfer (1,384) (93,025) (94,409) (2,054) 55,857 53,803 (from)/to reserves ======= ======= ======= ====== ====== ====== (Loss)/ (7.85)p (527.92)p (535.77)p (11.69)p 317.87p 306.18p return per ======= ======= ======= ====== ====== ====== ordinary share (note 1) The revenue columns of this statement represent the revenue accounts of the Company. - 4 - HENDERSON STRATA INVESTMENTS PLC Unaudited Preliminary Results for the year ended 31 October 2001 Balance Sheet at 31 October 2001 2001 2000 £'000 £'000 Fixed asset investments Listed investments at market value: United Kingdom 46,220 114,337 Overseas 39,253 75,224 ---------- ---------- 85,473 189,561 AIM investments at market value 3,897 7,711 Unquoted investments at directors' valuation 191 261 ----------- ----------- 89,561 197,533 ----------- ----------- Current assets Debtors 1,215 947 Cash at bank 625 965 ----------- -------------- 1,840 1,912 Creditors: amounts falling due within one year (5,756) (19,946) ----------- -------------- Net current liabilities (3,916) (18,034) ----------- -------------- Total net assets 85,645 179,499 ======= ======== Capital and reserves Issued share capital 4,406 4,393 Capital reserves Share premium account 16,479 15,937 Realised profits 73,494 85,052 Unrealised profits (5,206) 76,261 Revenue reserve (3,528) (2,144) ----------- -------------- Equity shareholders' funds 85,645 179,499 ======= ======== Net asset value per ordinary share 486.00p 1,021.49p ======= ======== - 5 - HENDERSON STRATA INVESTMENTS PLC Unaudited Preliminary Results for the year ended 31 October 2001 Cash Flow Statement for the year ended 31 October 2001 2001 2001 2000 2000 £'000 £'000 £'000 £'000 Net cash outflow from (789) (1,251) operating activities Servicing of finance Interest paid (700) (993) ----------- ------------ Net cash outflow from (700) (993) servicing of finance Taxation Income tax recovered 3 5 Withholding tax recovered 9 12 ----------- ------------ Net tax recovered 12 17 Financial investment Purchase of investments (37,479) (101,400) Sale of investments 51,687 87,901 ----------- ------------ Net cash inflow/(outflow) 14,208 (13,499) from financial investment Financing Net loans (repaid)/drawn down (13,601) 15,611 Issue of ordinary shares 555 - ----------- ------------ Net cash (outflow)/inflow (13,046) 15,611 from financing ----------- ------------ Decrease in cash (315) (115) ======= ======= Reconciliation of net cash flow to movement in net debt Decrease in cash as above (315) (115) Cash outflow/(inflow) from 13,601 (15,611) movement in debt Exchange movements (25) (392) ----------- ------------ Movement in net debt 13,261 (16,118) Net debt at 1 November (18,146) (2,028) ----------- ------------ Net debt at 31 October (4,885) (18,146) ====== ======= - 6 - HENDERSON STRATA INVESTMENTS PLC Unaudited Preliminary Results for the year ended 31 October 2001 Notes : 1. (Loss)/return per ordinary share The revenue loss per ordinary share is based on the net loss on ordinary activities after taxation of £1,384,000 (2000: £2,054,000) and on the weighted average number of ordinary shares of 25p each in issue during the year of 17,621,117 (2000: 17,572,350). The capital return per ordinary share is based on net capital losses for the year of £93,025,000 (2000: gains of £55,857,000) and on the weighted average number of ordinary shares of 25p each in issue throughout the year, as stated above. 2. Issued Share Capital The number of ordinary shares of 25p each in issue at 31 October 2001 was 17,622,350 (2000: 17,572,350). 3. Dividend No dividend has been declared in respect of the year. 4. 2001 Accounts The preliminary figures for the year ended 31 October 2001 are an extract from the Company's latest accounts for that period. These accounts have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them. 5. 2000 Accounts The figures and financial information for the year ended 31 October 2000 are an extract from the latest published accounts of the Company 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 either section 237(2) or section 237(3) of the Companies Act 1985. 6. Annual Report and Annual General Meeting The full annual report and accounts will be posted to shareholders early in January 2002 and copies will be available thereafter from the Secretary at the Company's Registered Office, 4 Broadgate, London EC2M 2DA. The Annual General Meeting will be held on Thursday 7 February 2002 at 2.30 pm. For further information please contact: Richard Smith Henderson Strata Investments plc Telephone: 020 7818 4368 or Stephen Westwood Henderson Global Investors Telephone: 020 7818 5517 or Vicki Staveacre Henderson Press Office Telephone: 020 7818 4222

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