Final Results

Henderson Strata Investments PLC 16 December 2002 HENDERSON GLOBAL INVESTORS HENDERSON STRATA INVESTMENTS PLC EMBARGOED FOR RELEASE AT 7.00 AM ON MONDAY 16 DECEMBER 2002 16 DECEMBER 2002 HENDERSON STRATA INVESTMENTS PLC Unaudited Preliminary Results for the year ended 31 October 2002 The Chairman's Statement: Net Assets It has been another difficult year and the net asset value per share is down 36.6% compared to a fall of 22.6% recorded by the FTSE SmallCap Index (excluding investment companies). The severity of the fall in profits announced by many of the underlying investments, which had been expected to be more resilient to weakening economies, has led to particular weakness in their share prices. Review The major stockmarket indices hit their lowest levels for at least five years during September. This can be attributed to disappointing economic figures which still show few signs of sustained recovery. Companies too have shown little inclination to commit to major capital expenditure, thus inhibiting the much needed boost to activity at a time when consumer spending has looked increasingly likely to weaken. Doubts over the veracity of company results, particularly in the US, and fears of war in the Middle East have driven investors into bonds at the expense of equities. More attractive valuations did entice some equity buying in August but sentiment was fragile in the period leading up to the first anniversary of September 11th. In the UK a slightly more robust economic background proved of little support as insurance companies came under regulatory pressures to protect their solvency requirements by shifting out of equities into bonds. - 2 - Portfolio Strategy We have conducted a major review of strategy during the past six months. We are not making major changes to the way the portfolio is managed but we are determined to ensure that every opportunity to enhance asset value is explored, consistent with our philosophy of seeking out real growth opportunities. In part as a result of our review of strategy, we have accelerated the realisation of holdings which have not met our expectations. A high proportion of the proceeds of these disposals has been retained because it has been difficult this year to find successful businesses with predictable growth prospects that stand on reasonable ratings. As a result, the borrowings of £5.5 million at our last year end have been repaid and we now hold cash deposits of just under £7 million. This year for the first time we have bought back shares in the Company in the open market for cancellation. This has been done on five separate occasions at discounts to asset value between 23.9% and 33.9%. We shall continue to buy back our own shares when we believe it appropriate to do so. Outlook It remains hard to predict the levels of corporate profitability likely to be generated in 2003. This will have a restraining influence on the market, especially as many forecasts currently look too high. Nevertheless, much of this uncertainty is discounted in share prices which have already fallen sharply during 2002. Any signs of optimism could translate into a healthy rise in the coming months. Frans ten Bos Chairman 13 December 2002 - 3 - HENDERSON STRATA INVESTMENTS PLC Unaudited Preliminary Results for the year ended 31 October 2002 Statement of Total Return (incorporating the revenue account) for the year ended 31 October 2002 Year ended 31 October 2002 Year ended 31 October 2001 (unaudited) Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Total capital losses on investments - (31,223) (31,223) - (93,025) (93,025) Income from fixed asset investments 888 - 888 870 - 870 Other interest receivable and similar 109 - 109 130 - 130 income ---------- ---------- ---------- ---------- ---------- ---------- Gross revenue and capital losses 997 (31,223) (30,226) 1,000 (93,025) (92,025) Management fee (891) - (891) (1,442) - (1,442) Other administrative expenses (216) - (216) (204) - (204) --------- ---------- ---------- ---------- ---------- ---------- Net loss on ordinary activities before interest payable and taxation (110) (31,223) (31,333) (646) (93,025) (93,671) Interest payable (68) - (68) (699) - (699) ---------- ---------- ---------- ---------- ---------- ---------- Net loss on ordinary activities before taxation (178) (31,223) (31,401) (1,345) (93,025) (94,370) Taxation on net loss on ordinary (38) - (38) (39) - (39) activities ----------- ---------- ---------- ---------- ---------- ---------- Net loss on ordinary activities after taxation (216) (31,223) (31,439) (1,384) (93,025) (94,409) Dividends - nil - - - - - - ----------- ------------ ----------- ---------- ---------- ---------- Transfer from reserves (216) (31,223) (31,439) (1,384) (93,025) (94,409) ======= ======= ======= ====== ====== ====== Loss per ordinary share (note 1) (1.23)p (177.67)p (178.90)p (7.85)p (527.92)p (535.77)p ======= ======= ======= ====== ====== ====== 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 2002 Balance Sheet at 31 October 2002 2002 2001 £'000 £'000 Fixed asset investments Listed investments at market value: United Kingdom 19,884 46,220 Overseas 23,301 39,253 ----------- ---------- 43,185 85,473 AIM investments at market value 2,640 3,897 Unquoted investments at directors' valuation 98 191 ----------- ----------- 45,923 89,561 ----------- ----------- Current assets Debtors 171 1,215 Cash at bank 7,694 625 ----------- ----------- 7,865 1,840 Creditors: amounts falling due within one year (289) (5,756) ----------- ----------- Net current liabilities 7,576 (3,916) ----------- ----------- Total net assets 53,499 85,645 ======= ======= Capital and reserves Issued share capital 4,339 4,406 Capital reserves Share premium account 16,479 16,479 Capital redemption reserve 67 - Realised profits 71,291 73,494 Unrealised profits (34,933) (5,206) Revenue reserve (3,744) (3,528) ----------- ----------- Equity shareholders' funds 53,499 85,645 ======= ======= Net asset value per ordinary share 308.23p 486.00p ======= ======= - 5 - HENDERSON STRATA INVESTMENTS PLC Unaudited Preliminary Results for the year ended 31 October 2002 Cash Flow Statement for the year ended 31 October 2002 2002 2002 2001 2001 £'000 £'000 £'000 £'000 Net cash inflow/(outflow) from operating activities 5 (789) Servicing of finance Interest paid (70) (700) ----------- ------------ Net cash outflow from servicing of finance (70) (700) Taxation Tax recovered 18 12 ----------- ------------ 18 12 Financial investment Purchase of investments (21,298) (37,479) Sale of investments 34,690 51,687 ----------- ------------ Net cash inflow from financial investment 13,392 14,208 Financing Net loans repaid (5,510) (13,601) Purchase of own shares (707) - Issue of ordinary shares - 555 ----------- ------------ Net cash outflow from financing (6,217) (13,046) ----------- ------------ Increase/(decrease) in cash 7,128 (315) ====== ======= Reconciliation of net cash flow to movement in net funds/(debt) Increase/(decrease) in cash as above 7,128 (315) Cash outflow from movement in debt 5,510 13,601 Exchange movements (59) (25) ----------- ------------ Movement in net funds/(debt) 12,579 13,261 Net debt at 1 November (4,885) (18,146) ----------- ------------ Net funds/(debt) at 31 October 7,694 (4,885) ====== ======= - 6 - HENDERSON STRATA INVESTMENTS PLC Unaudited Preliminary Results for the year ended 31 October 2002 Notes : 1. Loss per ordinary share The revenue loss per ordinary share is based on the net loss on ordinary activities after taxation of £216,000 (2001: £1,384,000) and on the weighted average number of ordinary shares of 25p each in issue during the year of 17,573,511 (2001: 17,621,117). The capital return per ordinary share is based on the net capital losses for the year of £31,223,000 (2001: £93,025,000) 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 2002 was 17,356,850 (2001: 17,622,350). 3. Dividend No dividend has been declared in respect of the year. 4. 2002 Accounts The preliminary figures for the year ended 31 October 2002 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. 2001 Accounts The figures and financial information for the year ended 31 October 2001 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 2003 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 13 February 2003 at 2.30 pm. - ENDS - - 7 - HENDERSON STRATA INVESTMENTS PLC Unaudited Preliminary Results for the year ended 31 October 2002 For further information please contact: Richard Smith Director Henderson Strata Investments plc Telephone: 020 7818 4368 or Stephen Westwood Head of Investment Trusts Henderson Global Investors Telephone: 020 7818 5517 or Stephen Phillips Investor Relations Manager Henderson Global Investors Telephone: 020 7818 6417 This information is provided by RNS The company news service from the London Stock Exchange

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