Interim Results

RNS Number : 6679B

Witan Investment Trust PLC

20 August 2008

 



WITAN INVESTMENT TRUST PLC

20 August 2008

WITAN INVESTMENT TRUST PLC

Financial Report for the Half Year ended 30 June 2008

Financial Highlights
	(Unaudited) 30 June 2008 in pence	Change since 31 December 2007	(Unaudited) 30 June 2007 in pence	(Audited) 31 December 2007 in pence
Share price	418.25p	-12.6%	491.5p	478.5p
Net asset value per ordinary share (Note 1)	476.4p	-11.4%	543.6p	537.9p
Discount (Note 1)	12.2%		9.6%	11.0%
Gearing  (Note 2)	-1.2%		-0.6%	4.7%

	(Unaudited) Half year ended  30 June 2008 in pence		(Unaudited) Half year ended  30 June 2007 in pence	(Audited) Year ended  31 December 2007 in pence
Revenue earnings per ordinary share	7.17p		6.56p	11.08p
Dividends per ordinary share	4.3p		4.1p	9.9p

Notes:

1.

The net asset value per ordinary share shown above is calculated by deducting from the net assets less current liabilities of the Group the preference shares, debenture stock and secured bonds (together 'the prior charges') at their market (or fair) values rather than at their par (or book) values, as is now regarded as best practice. The Group's financial statements on pages 6 to 9 are prepared using their par values, in accordance with IFRS. Because in aggregate the market values of the prior charges are more than their par values, the net asset value per ordinary share shown above is less than that shown on page 8.

2.

Defined here as the total market value of the investments less shareholders' funds as a percentage of shareholders' funds.

  Page 2 of 12

WITAN INVESTMENT TRUST PLC 

Financial Report for the Half Year ended 30 June 2008

Performance
Total returns to 30 June 2008
		1 year % return	3 years % return	5 years % return
Share price		-13.0	22.8	67.6
Net asset value per ordinary share		-12.2	22.1	61.4
FTSE All-Share Index		-13.0	23.2	71.0
FTSE World (ex UK) Index		-8.1	21.3	55.0

Capital returns to 30 June 2008
		1 year % return	3 years % return	5 years % return
Net asset value per ordinary share		-13.0	15.2	45.0
FTSE All-Share Index		-16.1	11.5	44.9
FTSE World (ex UK) Index		-10.3	13.7	39.5
Benchmark		-13.6	12.2	42.1

Notes:

1.

Source: Datastream (except the 1 year capital NAV figure and the benchmark figures); Lipper (the benchmark figures).

2.

Since 1 October 2007 the benchmark has been a composite of four indices, all on a capital change only basis: the FTSE All-Share Index 40%, the FTSE All-World North America Index 20%, the FTSE All-World Europe (ex UK) Index 20% and the FTSE All-World Asia Pacific Index 20%. From 1 September 2004 to 30 September 2007 the benchmark comprised the FTSE All-Share Index 50% and the FTSE World (ex UK) Index 50%, on a capital change only basis. Prior to 1 September 2004 the benchmark comprised the FTSE All-Share Index 60% and the FTSE World (ex UK) Index 40%, on a capital change only basis.

Interim dividend

The directors have declared an interim dividend of 4.30p (2007: 4.10p) per ordinary share, payable on Friday 5 September 2008 to shareholders registered on Friday 15 August 2008. The shares were quoted ex-dividend on 13 August 2008.

  Page 3 of 12

WITAN INVESTMENT TRUST PLC

Financial Report for the Half Year ended 30 June 2008

INTERIM MANAGEMENT REPORT

Chairman's Statement

The share price at 30 June 2008 stood at 418¼ pence, down 12.6% since the beginning of the year and 14.9% below that of twelve months previous. This is obviously disappointing but I would urge shareholders to take a longer perspective, as highlighted in Jim Horsburgh's report below. The net asset value per ordinary share (NAV) has performed ahead of its benchmark (by 0.6%); yet again the outperformance is mainly a result of the share buy-back programme.

Your Board has reduced the Trust's exposure to the United Kingdom, whose economy and stockmarket have not only been adversely affected by the global credit crunch but also by its own economic circumstances. A global portfolio such as Witan's, diversified across economies and positioned to identify value, is probably the best way to ride out the current storm.

Your Board's commitment to a progressive buy-back policy is unshaken. However, through volatile and fast-moving markets it is in shareholders' best interests to apply this policy with a greater degree of flexibility.  In the first six months of the current year we have bought back 7.1 million shares, compared with 15.3 million over the same period last year. The reduction in the volume of share buy-backs has been aided by demand from our savings schemes, run by Witan Investment Services Limited, which have benefited from positive inflows. We hope that the demand for Witan shares will be further enhanced by the launch of the Jump Child Trust Fund in April this year, building on the successful 'Jump' brand. 

In the half year statement last year, I informed shareholders that Jim Horsburgh had notified the Board of his intention to retire by the AGM in 2009. I am confident that the new arrangements for managing the Trust are well in hand to ensure a smooth and timely handover.

The Board increased the interim dividend from 4.1p per ordinary share to 4.3p per ordinary share, representing a year on year increase of 4.9%.  

Chief Executive Officer's Statement

The net asset value per share of your company fell 12.4% in the first six months of 2008, reflecting the continuing falls in world markets as a result of the bursting of the credit bubble and the ever increasing price of oil. This has given rise to fears of both recession and inflation, a lethal combination for investment markets. The FTSE All-Share Index fell by 13.1% whilst the FTSE World (ex UK) Index fell by 11.5%. Of the top 100 companies in the UK, 78 saw falls in their share price. Of those share prices which rose, the vast majority were Oil and Mining companies such as Eurasion Natural Resources (+108%), Tullow Oil (+46%), Petrofac (+34%) and BHP Billiton (+24%). Likewise, of the world's 40 largest markets all bar four gave negative returns to investors. These falls, however, do need to be put in perspective. Since the new management arrangements were put in place in September 2004 Witan's net asset value has risen by 31%. Add in dividends and the total return has been +41%.

Over the six months Witan's net asset value per share has outperformed its benchmark by 0.6% and since September 2004 by +4.4%, mostly as a result of share buy-backs.

A breakdown of the individual managers' performance over the six months to the end of June is shown in the table on page 5. Since the year end, three new managers have been appointed to manage portfolios for Witan. The two UK managers, Artemis and Marathon, have got off to an encouraging start against their new benchmarks.  Varenne, who manage a Pan-European portfolio for Witan, have fallen short. However, as they only hold ten stocks in their portfolio, short term performance judgments are even more invidious in this case than normal. Of the longer standing managers, the Henderson UK smaller companies team, Brandes, Thomas White and Comgest all produced excellent relative performance whilst Southeastern and Orbis produced disappointing numbers. Both of the latter managers can be classified as having a value-driven style and this style has not been a successful one over the last twelve to eighteen months as many 'value' stocks have simply got cheaper. In the long term, however, 'value' as an investment technique has consistently produced excellent returns provided the managers (and their clients) remain patient. Your Board remains confident in the skills of both of these managers and expects that when their styles return to favour the current underperformance will be more than recouped. The investment in the UBS Mellon currency loan note fell by £4.3 million, equivalent to a return of -1.5% on a notional £350 million currency portfolio. The continuing underperformance of Mellon is a cause for concern. The Board met with senior representatives of Mellon Capital at the beginning of July and tested thoroughly the assumptions behind the original appointment: namely, that investment in currency markets was capable of consistently adding value and that Mellon was a first class currency manager. For the time-being the Board decided to re-affirm the appointment, but will keep the situation under close scrutiny.

As mentioned above Witan has three new managers. Artemis Investment Management Limited was established in 1997 and manages over £16 billion on behalf of a range of retail and institutional clients. The approach used for the Witan portfolio seeks to exploit market inefficiencies, with an absolute return mindset, primarily by focusing on stocks that are out of favour. Marathon Asset Management, founded in 1986, manages £20 billion on behalf of mainly institutional clients. At the heart of Marathon's investment philosophy is the 'capital cycle'. This is based on the idea that the prospect of high returns attracts investment and competition and vice versa. An assessment of management and how they react to the forces of the capital cycle is crucial to the decision on whether to 

Page 4 of 12

WITAN INVESTMENT TRUST PLC

Financial Report for the Half Year ended 30 June 2008

INTERIM MANAGEMENT REPORT, continued

invest in a company's shares. This approach is intrinsically contrarian and the investment ideas it generates require long gestation periods. Marathon's turnover therefore tends to be very low. Varenne, which was established in 2003, combines a deep value approach with a focus on companies with high quality business characteristics. Their portfolio will only contain 10 to 15 stocks at any one time. 

Whilst the performance of investment managers will inevitably fluctuate, your Board believes that over the last four years Witan has appointed some of the best available fund managers from around the world and that over a full investment cycle they will generate positive investment returns. 

Currently, the aftershocks of what has become known as the 'credit crunch', which started with the collapse in the value of sub-prime mortgage debt, are being felt. In the developed world, house prices are still falling (although there are some signs that they may have stabilised in the US), consumer spending has slumped and unemployment is on the increase. In the emerging world, inflation is high and rising and this is likely to lead to economic disruption in the future. The rises in many commodity prices, including oil and agricultural commodities, cannot be easily explained by economic fundamentals and must be regarded as a bubble. However, bubbles can expand for a surprisingly long time. At the moment there is little sign of these price rises impacting on wage inflation in western economies and therefore they should be regarded as deflationary rather than inflationary events. If this continues to be the case then interest rates in Europe are likely to fall as in the US. Ultimately, this should be good news for equity markets. In the meantime, our managers are telling us that the falls in stockmarkets are presenting them with very attractive opportunities for the long term. 

Related Party Transactions

During the first six months of the current financial year, no transactions with related parties have taken place which have materially affected the financial position or performance of the Company during the period. Details of related party transactions are contained in the annual report and accounts.

Principal Risks and Uncertainties

The principal risks and uncertainties associated with the Company's business can be divided into various areas:

• a fall in equity prices

• the application of investment strategy: country, currency, industrial sector, stock selection, choice of investment manager

• appropriateness of corporate objective and strategy

• operational and regulatory risks

Information on these risks is given in the Business Review and in the Notes to the Accounts in the Company's Report and Accounts for the year ended 31 December 2007.  In the view of the Board these principal risks and uncertainties are applicable to the remaining six months of the financial year as they were to the six months under review.

Directors' Responsibility Statement

The Directors confirm that, to the best of their knowledge:

(a) the condensed set of financial statements has been prepared in accordance with IAS34;

(b) the interim management report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.7R (an indication of important events that have occurred during the first six months of the financial year and a description of the principal risks and uncertainties for the remaining six months of the financial year); and

(c) the interim management report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).

For and on behalf of the Board

Harry Henderson

Chairman

19 August 2008

Page 5 of 12

WITAN INVESTMENT TRUST PLC

Financial Report for the Half Year ended 30 June 2008

Performance of the Investment Managers

for the periods from 1 January 2008 to 30 June 2008 and from inception to 30 June 2008

Investment Manager	Value of Funds under Management £m at 30.06.08	% of Witan's Assets under Management at 30.06.08*	Performance in the period 01.01.08 to 30.06.08 (%)	Benchmark Performance 01.01.08 to 30.06.08 (%)	Performance in the period since inception 30.06.08 (%) (annualised)†	Benchmark Performance since inception to 30.06.08 (%) (annualised)†
Henderson Global Investors (UK mainstream)	172.6	16.7	-10.9	-11.1	10.1	9.9
Henderson Global Investors (UK smaller)	48.9	4.7	-7.4	-14.2	12.9	9.5
Artemis (UK)	71.6	6.9	not applicable		-3.3(A)	-9.2(A)
Marathon (UK)	69.2	6.7	not applicable		-7.2(A)	-9.2(A)
Southeastern Asset Management (Global)	147.7	14.3	-14.2	-10.7	5.0	9.5
MFS International (Global)	102.3	9.9	-9.2	-10.7	9.8	9.5
Thomas White International (Global)	104.8	10.1	-7.3	-10.7	-4.5(B)	-9.9(B)
Wellington Management Company (Europe)	86.9	8.4	-12.7	-11.7	9.8	15.6
Varenne (Europe)	29.0	2.8	not applicable		-11.8(C)	-8.0(C)
Henderson Global Investors (USA)	61.2	5.9	-11.1	-10.6	5.1	4.8
Brandes Investment Partners (Japan)	68.5	6.6	-0.4	-5.0	4.7	5.6
Comgest (Far East)	54.8	5.3	-19.2	-20.9	-5.8(D)	-8.9(D)
Orbis Investment Management (Australasia)	17.1	1.7	-13.8	-7.3	-0.7(D)	2.8(D)

* excluding cash balances and unquoted investments held centrally by Witan.

† All performance returns are from 30.09.04 except:

(A) from 06.05.08

(B) from 28.09.07

(C) from 24.04.08

(D) from 31.07.07

Source: The WM Company

The investment in the UBS Mellon currency loan note fell by £4.3 million over the six months to 30 June 2008, equivalent to a return of -1.5% on a notional £350 million currency portfolio.

Page 6 of 12

WITAN INVESTMENT TRUST PLC

Financial Report for the Half Year ended 30 June 2008

Consolidated Income Statement

	(Unaudited) Half year ended 30 June 2008			(Unaudited) Half year ended 30 June 2007			(Audited) Year ended 31 December 2007
	Revenue return	Capital return	Total	Revenue return	Capital return	Total	Revenue return	Capital return	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Investment income	18,128	-	18,128	20,763	-	20,763	31,817	-	31,817
Other income	4,921	-	4,921	3,036	-	3,036	7,659	-	7,659
(Losses)/gains on investments held at fair     value through profit or loss
	-	(153,608)	(153,608)	-	74,322	74,322	-	54,884	54,884
	----------	----------	----------	----------	----------	----------	----------	----------	----------
Total income/(loss)	23,049	(153,608)	(130,559)	23,799	74,322	98,121	39,476	54,884	94,360
Expenses
Management and performance fees	(207)	(989)	(1,196)	(244)	(1,107)	(1,351)	(505)	(2,009)	(2,514)
Write-back of prior years' VAT	-	-	-	-	-	-	324	1,126	1,450
Other expenses	(2,668)	-	(2,668)	(3,025)	-	(3,025)	(5,432)	-	(5,432)
	----------	----------	----------	----------	----------	----------	----------	----------	----------
Profit/(loss) before finance costs and taxation	20,174	(154,597)	(134,423)	20,530	73,215	93,745	33,863	54,001	87,864
Finance costs	(1,256)	(3,644)	(4,900)	(1,316)	(3,822)	(5,138)	(2,618)	(7,600)	(10,218)
	---------	---------	---------	---------	---------	---------	---------	---------	---------
Profit/(loss) before taxation	18,918	(158,241)	(139,323)	19,214	69,393	88,607	31,245	46,401	77,646
Taxation	(3,140)	1,960	(1,180)	(2,527)	1,362	(1,165)	(4,108)	2,494	(1,614)
	----------	----------	----------	----------	----------	----------	----------	----------	----------
Profit/(loss) attributable to equity holders
of the parent company	15,778	(156,281)	(140,503)	16,687	70,755	87,442	27,137	48,895	76,032
	======	======	======	======	======	======	======	======	======
Earnings/(loss) per ordinary share (Note 2)	7.17p	(71.01)p	(63.84)p	6.56p	27.85p	34.41p	11.08p	19.97p	31.05p
	======	======	======	======	======	======	======	======	======

The total columns of this statement represent the Group's Income Statement, prepared in accordance with IFRS. The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies. All items in the above statement derive from continuing operations.

All income is attributable to the equity holders of Witan Investment Trust plc, the parent company. There are no minority interests.

  Page 7 of 12

WITAN INVESTMENT TRUST PLC

Financial Report for the Half Year ended 30 June 2008

Consolidated Statement of Changes in Equity

			(Unaudited) Half year ended 30 June 2008
		Ordinary share  capital	Share premium	Capital redemption reserve	Other capital reserves	Revenue reserve	Total
		£'000	£'000	£'000	£'000	£'000	£'000
At 31 December 2007		55,857	16,237	37,969	1,059,939	49,304	1,219,306
(Loss)/profit for the period		-	-	-	(156,281)	15,778	(140,503)
Ordinary dividend paid		-	-	-	-	(12,849)	(12,849)
Buy-backs of ordinary shares	(Note 3)	(1,786)	-	1,786	(31,917)	-	(31,917)
		----------	-----------	----------	-------------	-----------	------------
At 30 June 2008		54,071	16,237	39,755	871,741	52,233	1,034,037
		======	======	======	========	======	=======

			(Unaudited) Half year ended 30 June 2007
		Ordinary  share  capital	Share premium	Capital redemption reserve	Other capital reserves	Revenue reserve	Total
		£'000	£'000	£'000	£'000	£'000	£'000
At 31 December 2006		65,193	16,237	28,633	1,192,597	45,874	1,348,534
Profit for the year		-	-	-	70,755	16,687	87,442
Ordinary dividend paid		-	-	-	-	(13,689)	(13,689)
Buy-backs of ordinary shares	(Note 3)	(3,821)	-	3,821	(73,401)	-	(73,401)
		----------	-----------	----------	-------------	-----------	------------
		61,372	16,237	32,454	1,189,951	48,872	1,348,886
At 30 June 2007		======	======	======	========	======	=======

			(Audited) Year ended 31 December 2007
		Ordinary  share  capital	Share premium	Capital redemption reserve	Other capital reserves	Revenue reserve	Total
		£'000	£'000	£'000	£'000	£'000	£'000
At 31 December 2006		65,193	16,237	28,633	1,192,597	45,874	1,348,534
Profit for the year		-	-	-	48,895	27,137	76,032
Ordinary dividend paid		-	-	-	-	(23,707)	(23,707)
Buy-backs of ordinary shares	(Note 3)	(9,336)	-	9,336	(181,553)	-	(181,553)
		------------	------------	------------	-------------	---------	------------
At 31 December 2007		55,857	16,237	37,969	1,059,939	49,304	1,219,306
		=======	======	=======	========	=====	=======

  Page 8 of 12

WITAN INVESTMENT TRUST PLC

Financial Report for the Half Year ended 30 June 2008

Consolidated Balance Sheet

	(Unaudited) 30 June  2008	(Unaudited) 30 June 2007	(Audited) 31 December 2006
	£'000	£'000	£'000
Non current assets
Investments held at fair value
through profit or loss	1,021,317	1,340,578	1,276,354
	--------------	-------------	-------------
Current assets
Other receivables	16,238	11,133	6,742
Cash and cash equivalents	152,568	152,173	88,394
	--------------	-------------	-------------
	168,806	163,306	95,136
	--------------	-------------	-------------
Total assets	1,190,123	1,503,884	1,371,490
	--------------	-------------	-------------
Current liabilities
Other payables	(16,039)	(8,131)	(5,277)
	--------------	-------------	-------------
Total assets less current liabilities	1,174,084	1,495,753	1,366,213
	--------------	-------------	--------------
Non current liabilities
8½ per cent Debenture Stock 2016	(45,779)	(45,779)	(45,779)
6.125 per cent Secured Bonds due 2025	(91,713)	(98,533)	(98,573)
3.4 per cent cumulative preference shares of £1	(2,055)	(2,055)	(2,055)
2.7 per cent cumulative preference shares of £1	(500)	(500)	(500)
	--------------	-------------	--------------
	(140,047)	(146,867)	(146,907)
	--------------	-------------	--------------
Net assets	1,034,037	1,348,886	1,219,306
	========	========	========
Equity attributable to equity holders
Ordinary share capital	54,071	61,372	55,857
Share premium	16,237	16,237	16,237
Capital redemption reserve	39,755	32,454	37,969
Retained earnings:
Other capital reserves	871,741	1,189,951	1,059,939
Retained earnings	52,233	48,872	49,304
	-------------	-------------	------------
Total equity	1,034,037	1,348,886	1,219,306
	========	========	========
Net asset value per ordinary share (Note 7)	478.1p	549.5p	545.7p
	=======	=======	========

  Page 9 of 12

WITAN INVESTMENT TRUST PLC

Financial Report for the Half Year ended 30 June 2008

Consolidated Cash Flow Statement

	(Unaudited) Half  Year ended  30 June  2008	(Unaudited) Half  Year ended  30 June  2007	(Audited) Year ended 31 December  2007
	£'000	£'000	£'000
Operating activities
(Loss)/profit before taxation	(139,323)	88,607	77,646
Interest paid	4,836	5,114	10,072
Losses/(gains) on investments held at fair value
through profit or loss	153,608	(74,322)	(54,884)
Net sales of investments held at fair value
through profit or loss	102,961	111,810	158,309
Increase in other receivables	(351)	(881)	(1,202)
Decrease in other payables	(280)	(582)	(420)
Cash (outflow)/inflow from future contracts	(2,544)	2,421	3,029
Scrip dividends included in investment income	(300)	(262)	(269)
	------------	------------	------------
Net cash inflow from operating activities before interest
and taxation	118,607	131,905	192,281
Interest paid	(4,836)	(5,114)	(10,072)
Amortisation of debt issue costs	40	39	79
Tax on overseas income	(1,435)	(1,493)	(1,836)
	----------	----------	------------
Net cash inflow from operating activities	112,376	125,337	180,452
	----------	----------	------------
Financing activities
Equity dividends paid	(12,849)	(13,689)	(23,707)
Buy-backs of ordinary shares	(31,144)	(73,892)	(182,567)
Buy-backs of secured bonds	(7,518)	-	-
	---------	---------	-------------
Net cash outflow from financing activities	(51,511)	(87,581)	(206,274)
	-----------	-----------	------------
Increase/(decrease) in cash and cash equivalents	60,865	37,756	(25,822)
Cash and cash equivalents at the start of the period	88,394	114,610	114,610
Effect of foreign exchange rate changes	3,309	(193)	(394)
	-----------	-----------	------------
Cash and cash equivalents at the end of the period	152,568	152,173	88,394
	=======	=======	=======

The gains on investments held at fair value through profit or loss include purchase transaction costs of £528,000 (half year ended

30 June 2007: £624,000; year ended 31 December 2007: £1,163,000) and sales transaction costs of £284,000 (half year ended 

30 June 2007: £284,000; year ended 31 December 2007: £531,000).

  Page 10 of 12

WITAN INVESTMENT TRUST PLC

Financial Report for the Half Year ended 30 June 2008

Notes to the Accounts 

1	Basis of preparation  The condensed set of financial statements for the half year ended 30 June 2008 have been prepared on the basis of the accounting policies set out in the consolidated financial statements for the year ended 31 December 2007.
2	Earnings per ordinary share The earnings per ordinary share figure is based on the net loss for the half year of £140,503,000 (half year ended 30 June 2007: profit of £87,442,000; year ended 31 December 2007: profit of £76,032,000) and on 220,092,948 ordinary shares (half year ended 30 June 2007: 254,093,240; year ended 31 December 2007: 244,901,514), being the weighted average number of ordinary shares in issue during the period. The earnings per ordinary share figure detailed above can be further analysed between revenue and capital, as below.
		(Unaudited) Half year ended  30 June  2008	(Unaudited) Half year ended  30 June  2007	(Audited) Year ended 31 December 2007
		£'000	£'000	£'000
	Net revenue profit	15,778	16,687	27,137
	Net capital (loss)/profit	(156,281)	70,755	48,895
		--------------	--------------	--------------
	Net total (loss)/profit	(140,503)	87,442	76,032
		========	========	========
	Weighted average number of
	ordinary shares in issue during
	the period	220,092,948	254,093,240	244,901,514
		Pence	Pence	Pence
	Revenue earnings per ordinary share	7.17	6.56	11.08
	Capital/(loss) earnings per ordinary share	(71.01)	27.85	19.97
		--------------	--------------	--------------
	Total/(loss) earnings per ordinary share	(63.84)	34.41	31.05
		========	========	========

  Page 11 of 12

WITAN INVESTMENT TRUST PLC

Financial Report for the Half Year ended 30 June 2008

Notes to the Accounts (continued)

3		Ordinary share capital At 30 June 2008 there were 216,282,439 ordinary shares in issue (30 June 2007: 245,489,750; 31 December 2007: 223,426,499). During the half year ended 30 June 2008 the Company bought 7,144,060 of its own issued ordinary shares in the market for cancellation (half year ended 30 June 2007: 15,283,137; year ended 31 December 2007: 37,346,388). The cost of the share buy-backs, including stamp duty, amounted to £31,917,000 (half year ended 30 June 2007: £73,401,000; year ended 31 December 2007: £181,553,000).
4	Interim dividend The directors have declared an interim dividend of 4.30p (2007: 4.10p) per ordinary share, payable on Friday 5 September 2008 to shareholders registered on Friday 15 August 2008. The shares were quoted ex-dividend on 13 August 2008.
5	Half year accounts
	The condensed set of financial statements, forming the half year accounts, has been neither audited nor reviewed by the Company's auditors.
6	Comparative information The financial information contained in this document does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The financial information for the half years ended 30 June 2008 and 30 June 2007 has been neither audited nor reviewed by the auditors. The figures and financial information for the year ended 31 December 2007 are extracted from the latest published audited financial statements of the Company and do not constitute the statutory accounts for that year. The audited financial statements for the year ended 31 December 2007 have been filed with the Registrar of Companies. The report of the independent auditors on those accounts contained no qualification or statement under section 237(2) or section 237(3) of the Companies Act 1985.
7	Net asset value per ordinary share The net asset value per ordinary share is based on the net assets attributable to the equity shareholders of £1,034,037,000 (half year ended 30 June 2007: £1,348,886,000; year ended 31 December 2007: £1,219,306,000) and on 216,282,439 (half year ended 30 June 2007: 245,489,750; year ended 31 December 2007: 223,426,499) ordinary shares, being the number of ordinary shares in issue at the period end.
8	Subsidiary undertaking The Company has an investment in the issued ordinary share capital of its wholly owned subsidiary undertaking, Witan Investment Services Limited, which is registered in England and Wales, operates in the United Kingdom and is regulated by the Financial Services Authority.

  Page 12 of 12

WITAN INVESTMENT TRUST PLC

Financial Report for the Half Year ended 30 June 2008

9	Half year report The financial report for the half year ended 30 June 2008 will be filed with the UK Listing Authority by 29 August 2008 and will be made available on the Company's website. Copies will be sent to shareholders in September 2008 and will be available thereafter from the Secretary at the Company's registered office, 4 Broadgate, London EC2M 2DA.

For further information please contact:

Jim Horsburgh

Witan Investment Trust plc

Tel: [phone]

James Budden

Witan Investment Trust plc

Tel: [phone]

Eleanor Mitchell/Hugo Mortimer-Harvey

Quill Communications

Tel: [phone]

- ENDS -

 

END

 

 

IR FKCKPPBKDDFD