Interim Results

Draft Stock Exchange announcement.continued


To:  Stock Exchange                            For immediate release
                                               25 February 2003

Martin Currie High Income Trust plc interim report

Over the six-month period to 31 January 2003 the FTSE All-Share index
fell by 16.0%. Over the same period, the total assets of the Company
fell from £7.5m to £3.9m, after the repayment of a further £2.3m of
debt. However, with remaining bank borrowings of £5m, there are no
assets available to shareholders and, as a result, the ordinary shares
have a net asset value of nil.

The focus of the underlying portfolio remains on yield generation and
capital growth. As at 31 January 2003, the Company's portfolio comprised
96.2% in UK equities - of which 8.6% was invested in split capital
investment companies - and 3.8% in cash. Income from investments for the
half-year reduced from £1.5m in 2002 to £0.1m in 2003.  The company has
suspended the payment of dividends since 20 March 2002, and the revenue
generated from the Company's portfolio is less than the operational
expenses of the Company, largely due to the remaining indebtedness of
£5m, on which interest is payable at an annual rate of 7.51%. It has
therefore been necessary to sell UK equities to meet interest payments.

The Company remains in default under the terms of its banking agreement
with Bank of Scotland, but it has been confirmed by the bank that it has
no intention of demanding immediate repayment of the outstanding loan
made by the bank to the Company. However, as the financial position of
the Company has not improved markedly, the ordinary shares of the
Company remain suspended from the Official List of the UK Listing
Authority and have ceased to trade on the London Stock Exchange.


Notwithstanding the current economic and geopolitical uncertainty, your
board remains of the opinion that it is in the best interests of
shareholders to maintain the existing level of market exposure in order
to benefit from any improvement in the UK market in an effort to achieve
some value for shareholders.

- ends -

                                    
Mike Woodward
Martin Currie Investment Management Ltd                0131 229 5252
[e-mail]
                              

Statement of total return (incorporating the revenue account)*
for the six months ended 31 January 2003
                                    
                                       Revenue      Capital       Total
                                          £000         £000        £000
                                                           
Losses on          - realised                -         (75)        (75)
investments
                   - unrealised              -        (823)       (823)
Income             - franked                73            -          73
                   - unfranked              28            -          28
Investment                                                -           -
management fee                               -
Other expenses                            (74)            -        (74)
Net return on ordinary activities                                      
before finance costs and taxation           27        (898)       (871)
                                                                       
Interest payable and similar             (211)        (220)       (431)
charges                                  _____        _____       _____
Net return on ordinary activities        (184)      (1,118)     (1,302)
before and after taxation
Dividends in respect of equity               -            -           -
shares                                   _____        _____       _____

Transfer from reserves                                                 
                                         (184)      (1,118)     (1,302)
                                         _____        _____       _____
Returns per ordinary share             (0.49p)      (2.98p)     (3.47p)



* The revenue column of this statement is the profit and loss account
  of the company.
  All revenue and capital items derive from continuing operations.
                                    
                                  
Statement of total return (incorporating the revenue account)*
for the six months ended 31 January 2002
                                    

                                       Revenue     Capital      Total
                                          £000        £000       £000
                                                          
Losses on    - realised                      -     (3,348)    (3,348)
investments
             - unrealised                    -     (5,997)    (5,997)
Income       - franked                   1,392           -      1,392
             - unfranked                    90           -         90
Investment                               (150)           -      (150)
management
fee
Other                                    (106)       (616)      (722)
expenses
Net return on ordinary activities                                    
before finance costs and taxation        1,226     (9,961)    (8,735)
                                                                     
Interest payable and similar             (768)           -      (768)
charges                                  _____       _____      _____
Net return on ordinary activities          458     (9,961)    (9,503)
before and after taxation
Dividends in respect of equity           (656)           -      (656)
shares                                   _____       _____      _____

Transfer from reserves                                               
                                         (198)     (9,961)   (10,159)
                                         _____       _____      _____
Returns per ordinary share               1.22p    (26.56p)   (25.34p)


* The revenue column of this statement is the profit and loss account
  of the company.
  All revenue and capital items derive from continuing operations.

Balance Sheet
                              As at 31           As at 31
                             January 2003      January 2002

                            £000       £000     £000     £000
                                                              
Investments at bid value                                      
*
Listed on the Stock                   3,672             15,640
Exchange in the UK
Current assets                                                
Debtors                        39                196          
Short term deposits and       140              5,765          
bank balances
                                                              
                          ______             ______
                                                    
                              179              5,961          
Creditors                                                     
Amounts falling due       (5,121)              (406)          
within one year
                          _______            _______          
Net current assets                  (4,942)              5,555
                                    _______            _______
                                                              
Total assets less current           (1,270)             21,195
liabilities
                                                              
Creditors                                                     
Amounts falling due                       -           (15,400)
outwith one year                    _______            _______
                                                              
Total net assets                    (1,270)              5,795
                                    _______            _______
Capital and reserves                                          
Called up share capital               1,875              1,875
Share premium                             -                  -
Capital reserves -                 (13,858)                 46
realised
Capital reserves -                  (9,691)              (151)
unrealised
Revenue reserve                       (116)            (1,981)
Special reserve                      20,520              6,006
                                    _______            _______
                                                              
Total shareholders' funds           (1,270)              5,795
                                    _______            _______
                                                              
Net asset value per                 (3.39)p              15.5p
ordinary share of 5p



* As at 31 January 2002, investments were valued at mid market price.

                                  
Statement of cash flow for the six months ended 31 January 2003
                                    
                                    
                                            £000      £000
                                                          
Operating Activities                                      
Net dividends and interest received          104          
from investments
Interest received from deposits               13          
Investment management fee                   (30)          
Other payments                              (41)          
                                         _______          
Net cash inflow from operating                          46
activities
                                                          
Servicing of finance                                      
Interest paid                              (470)          
                                         _______          
Net cash outflow from servicing of                   (470)
finance

Taxation                                                  
Net taxation received                                    -
                                                          
                                                          
Capital expenditure and financial                         
investment
Payments to acquire investments            (227)          
Receipts from disposal of investments        364          
                                         _______
Net cash inflow from capital                           137
expenditure and financial investment
                                                          
Dividends paid                                           -
                                                    ______
                                                          
Net cash inflow before financing                     (287)
                                                          
Financing                                                 
Movement in long term borrowings         (2,300)          
                                         _______
Net cash outflow from financing                    (2,300)
                                                    ______
                                                          
Decrease in cash for period                        (2,587)
                                                    ______
                                                          
                                   
Statement of cash flow for the six months ended 31 January 2002
                                   
                                                                        
                                              £000        £000
                                                              
Operating Activities                                          
Net dividends and interest received          1,463            
from investments
Interest received from deposits                 34            
Investment management fee                    (167)            
Cash paid to and on behalf of directors       (26)            
Other payments                               (694)            
                                           _______            
Net cash inflow from operating                             610
activities
                                                              
Servicing of finance                                          
Interest paid                              (1,113)            
                                           _______            
Net cash outflow from servicing of                     (1,113)
finance

Taxation                                                      
Net taxation received                                       71
                                                              
                                                              
Capital expenditure and financial                             
investment
Payments to acquire investments            (2,489)            
Receipts from disposal of investments       26,143            
                                           _______
Net cash inflow from capital                            23,654
expenditure and financial investment
                                                              
Dividends paid                                         (1,762)
                                                        ______
                                                              
Net cash inflow before financing                        21,460
                                                              
Financing                                                     
Movement in long term borrowings          (21,000)            
                                           _______
Net cash outflow from financing                       (21,000)
                                                        ______
                                                              
Increase in cash for period                                460
                                                        ______