Interim Results

TEMPLE BAR INVESTMENT TRUST PLC 27 July 1999 CHAIRMAN'S STATEMENT I am pleased to report that the Trust has made a good start to the year. For the six months to 30th June earnings have risen by 20.8% reflecting partly a healthy background of dividend increases from the portfolio but also the additional liquidity in the portfolio arising from the March debenture issue. We would not expect to see this rate of increase for the full year. In continuation of our dividend policy the board has declared an interim dividend of 6.85p, a rise of 9.6% on last year. The dividend will be paid on 30 September 1999 to those shareholders on the register on 10 September 1999. Asset performance has been ahead of the FTSE All Share Index over the period but headline total asset growth of 22.8% is distorted by the debenture issue and by the accrual of income in the first half. Underlying asset growth of 11.4% compares with a rise of 10.2% for the All Share but lags the rise of 15.75% for the FTSE 350 Higher Yield Index, which benefited from an exceptionally large weighting in BP Amoco. The economic environment has continued to stabilise with the UK and US economies both responding well to the timely interest rate cuts of late last year. For the UK the result has been a gentle improvement in GDP forecasts and greater certainty over the outlook for corporate earnings. The trade off for this better outlook has been felt in the Gilt market where long dated issues have been notably poor performers. The equity market has seen a welcome return of interest to perceived value situations which has been helpful. Most important for us has been the dramatic recovery of the Oil sector with BP Amoco and Shell both responding positively to the strength in oil prices, but we have also seen good performances across the industrial and consumer sectors, areas which had been notable for their disappointing showings last year. Outlook Reducing our exposure to long dated Gilts while raising the debenture issue provides us with some protection from the weakness in fixed interest markets, although some questions arise over the ability of the equity market to continue its rise. We are also well aware of how suddenly sentiment turned against equities this time last year, and have therefore judged it best to maintain a reasonable degree of liquidity for the time being. 26 July 1999 Ronald Scott Brown Twenty largest equity holdings at 30 June 1999 Company Valuation % of £'000 portfolio BP Amoco 24,849 6.12 Shell Transport & Trading 22,574 5.56 Lloyds TSB 19,513 4.81 Glaxo Wellcome 16,267 4.01 British Telecom 14,452 3.56 Rio Tinto 11,094 2.73 Safeway 10,357 2.55 CGU 9,214 2.27 Royal Bank of Scotland 9,104 2.24 National Westminster 8,591 2.12 Cable & Wireless 8,555 2.11 Hilton Group 8,512 2.10 P & O 8,163 2.01 Bass 7,816 1.93 Diageo 7,767 1.91 Dixons 7,396 1.82 United Utilities 7,342 1.81 AstraZeneca 7,132 1.76 Rolls-Royce 6,562 1.61 National Power 6,346 1.56 _______ _____ 221,606 54.59 _______ _____ STATEMENT OF TOTAL RETURN (incorporating the revenue account) of the company for the six months ended 30 June 1999 Six months ended 30 June 1999 Notes Revenue Capital Total £'000 £'000 £'000 Gains on investments 4 43,364 43,364 Income 5 9,794 9,794 Investment management fee (335) (335) (670) Other expenses (259) (259) ------- ------ ----- Net return before finance costs and taxation 9,200 43,029 52,229 Interest payable (951) (951) (1,902) ------- ------ ------ Return on ordinary activities before taxation 8,249 42,078 50,327 Taxation (1,051) 214 (837) ------ ------ ------ Return on ordinary activities after taxation 7,198 42,292 49,490 Preference dividends (19) (19) ------ ------ ------ Available for equity shareholders 7,179 42,292 49,471 Ordinary dividends (3,959) (3,959) ------ ------ ------ Transfer to reserves 3,220 42,292 45,512 ------ ------ ------ Return per ordinary share 12.45p 73.35p 85.80p Dividends per ordinary share 6.85p Six months ended Year ended 30 June 1998 31 December 1998 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 46,987 46,987 28,105 28,105 8,309 8,309 15,451 15,451 (304) (304) (608) (579) (579) (1,158) (254) (254) (463) (463) ----- ------ ------ ------ ------ ------ 7,751 46,683 54,434 14,409 27,526 41,935 (625) (625) (1,250) (1,250) (1,249) (2,499) ----- ------ ------ ------ ------ ------ 7,126 46,058 53,184 13,159 26,277 39,436 (1,159) 186 (973) (2,026) 329 (1,697) ----- ------ ------ ------ ------ ------ 5,967 46,244 52,211 11,133 26,606 37,739 (22) (22) (44) (44) ----- ------ ------ ------ ------ ------ 5,945 46,244 52,189 11,089 26,606 37,695 (3,603) (3,603) (11,161) (11,161) ------ ------ ------ ------ ------ ------ 2,342 46,244 48,586 (72) 26,606 26,534 ______ ______ _______ ______ ______ ______ 10.31p 80.22p 90.53p 19.24p 46.17p 65.41p 6.25p 19.36p SUMMARY BALANCE SHEET AT 30 JUNE 1999 30 JUNE 30 JUNE 31 DECEMBER 1999 1998 1998 £'000 £'000 £'000 (Unaudited) (Unaudited) (Audited) Investments 405,969 370,151 352,289 Net current assets 36,708 12,421 8,231 Amounts falling due after one year (63,000) (25,456) (25,456) ------- ------- ------- Net assets 379,677 357,116 335,064 Less preference shares - (951) (951) ------- ------- ------- Attributable to ordinary shareholders 379,677 357,165 334,113 _______ _______ _______ Net asset value per ordinary share 658.25p 617.81p 579.56p Notes to the interim results 1. Principal activity The principal activity of the Company remains that of an investment trust. The principal activity of its trading subsidiary is investment dealing. 2. Recharges to capital and accounting policies One half of the management fee and interest payable on the debenture and loan stock is charged to the revenue account and the other half is charged to non-distributable capital reserves, net of corporation tax relief, and inclusive of any related irrecoverable value added tax. The unaudited interim financial statements have been prepared on a basis consistent with the statutory financial statements for the year ended 31 December 1998. 3. Dividend The interim dividend of 6.85p (1998, 6.25p) per ordinary share will absorb £3,959,000 and will be paid on 30 September 1999 to shareholders registered on 10 September 1999. 4. Gains on investments 30 JUNE 30 JUNE 31 DECEMBER 1999 1998 1998 £'000 £'000 £'000 Net realised gains on sales 10,752 20,350 46,869 Net increase/(decrease) in unrealised appreciation 36,612 26,637 (18,764) ------ ------ ------ Gains on investments 43,364 46,987 28,105 ______ ______ ______ 5. Income 30 JUNE 30 JUNE 31 DECEMBER 1999 1998 1998 £'000 £'000 £'000 Franked investment income 7,866 4,973 8,790 Income from UK fixed interest securities 727 664 1,394 Foreign income dividends 286 2,063 3,795 Scrip dividends - 168 279 Other special dividends - - 106 Bank interest 898 433 1,080 Underwriting commission - 4 4 Dealing profit - 4 3 Unclaimed dividends written back 17 - - ----- ----- ------ 9,794 8,309 15,451 _____ _____ ______ 6. Comparative figures The information for the year ended 31 December 1998 does not constitute statutory accounts, but has been extracted from the latest published audited accounts, which have been filed with the Registrar of Companies. The report of the auditors on those accounts contained no qualification or statement under section 237(2) or (3) of the Companies Act 1985. 7. Publication The interim report is being sent to shareholders and copies will be made available to the public at the registered office of the Company.

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