Final Results

Chairman's statement

RESULTS AND DIVIDEND

I am pleased to present my first annual report, having been appointed Chairman
of the Company in March last year.

Since reporting to you at the interim stage, the early signs of an improvement
in markets has been sustained. Post-tax earnings for the year were £16.483m, an
increase of 12.3% on 2002. These results are, however, flattered by a change in
basis of allocation which I cover in more detail below, and a more appropriate
like for like comparison shows an increase of 8.2%.

The Board is recommending a 2.5% increase in the final dividend to 17.8p, thus
matching the percentage increase in the interim dividend. This dividend will be
payable on 31 March 2004 to those shareholders on the register as at 19 March
2004.

The total return on net assets during 2003 was 25.0% which compares with a
total return of 20.9% for the FTSE All-Share Index and 20.8% for the FTSE 350
Higher Yield Index. During the year, following consultation with both external
consultants and the fund manager, the Board decided to revert to using the FTSE
All-Share Index as the sole benchmark for the performance of the Temple Bar
portfolio. The FTSE 350 Higher Yield Index has become increasingly unbalanced
in its construction, with much of its performance governed by a handful of very
large companies. We have also undertaken to measure the performance of the fund
manager over a rolling five year period compared with the All-Share Index. The
last few years have clearly illustrated the dangers of short term thinking and
momentum based investing; we wish to encourage the fund manager to continue to
make long term investment decisions for clear fundamental reasons.

2003 was yet another year of significant volatility for equity markets and can
be separated into two distinct phases. The first quarter of the year saw a
continuation of the bearish equity market trends of the previous three years as
investors worried about the prospect of war in Iraq and the continuing weakness
of the global, and most pertinently, the US economy. Weakness in UK equity
markets was exacerbated during this period by many Life companies aggressively
selling equities to protect their solvency.

The second phase followed the end of hostilities. Equity markets began to
recover strongly and this was given further impetus as the effect of the
massive reflationary stimulus provided by the US authorities started to feed
through into economic strength. These factors, together with large improvements
in corporate earnings much of it the consequence of cost-cutting, encouraged
investors to return to equity markets.

DEBT

Like many conventional investment trusts, the Company uses a relatively low
level of debt to seek enhanced returns to shareholders over the longer term.
This has added to the performance of the Company this year and the Board is
comfortable that the £63m of debenture debt is about the right level for the
immediate future. The amount and composition of such debt is kept under
continual review, but currently the prohibitive cost of repaying any of this
debt precludes its reduction.

CHANGE IN ALLOCATION BASIS

As reported in the interim results, the Board has taken the decision to change
the basis of allocation of the cost of interest and management fees such that
60% is now taken through the capital account. This is an increase from the rate
of 50% which has been used previously and is felt better to reflect the sources
of historic and prospective gains.

CORPORATE GOVERNANCE

During the year there have been numerous corporate governance and regulatory
consultations. Many of the changes required by the revised Combined Code have
already been implemented by the Board. Furthermore, as part of its own wider
governance review, the Board has undertaken a detailed analysis of some of the
Company's key service providers. In particular, in conjunction with a firm of
external consultants, the Board carried out a comprehensive review of its
investment management arrangements encompassing both the role of Investec and
strategic issues related to the management of the investment portfolio. As a
result, a number of changes to the investment parameters governing the
management of the portfolio have been made including the establishment of new
objectives for the managers. I would emphasise that the commissioning of this
report by the Board did not indicate any lack of confidence in the managers,
who continue to enjoy the full support of the Board, having delivered superior
returns over both the long and the short term.

A second aspect of the governance review related to the position of auditors.
After careful consideration and a comprehensive review of alternatives it was
decided to replace PricewaterhouseCoopers LLP as auditors with Ernst & Young
LLP. A resolution to re-appoint Ernst & Young LLP will be submitted at the
forthcoming annual general meeting.

OUTLOOK

Although the worst fears over dividends for the UK equity market were not
realised in 2003, it is important to highlight the significance that the
sterling/dollar exchange rate has for expectations in 2004. There are a growing
number of large companies, such as HSBC and Rio Tinto, who pay their dividends
in US Dollars; with the large decline in that currency relative to sterling
over the last two years this has begun to have a noticeable effect on dividends
receivable.

While the strength of equity markets and improved global economic news in the
second half of the year has encouraged many commentators to assume the return
of better times, we remain less sanguine. The many structural imbalances which
have been present in the US economy, including the large trade and budget
deficits and the high level of consumer debt, remain. The recent accelerated
decline in the US Dollar illustrates that these are ignored at the peril of
investors. The attempts to stimulate the US economy appear to have been a
success to date and, with a presidential election in 2004, such efforts by the
authorities may be expected to continue. In the longer term, however, doubts
remain as to whether this recovery can be self-sustaining or whether the
deflationary cycle that followed the stockmarket bubble of the late 1990s will
re-assert itself.

Against this backdrop, and while the UK economy is more stable and the market
more lowly rated than many other major markets, we feel it right to remain
positioned with a fairly defensive portfolio and expect the protection that is
offered by the high yields of most of our holdings to stand us in good stead in
2004 and beyond.

17 February 2004

John Reeve

Twenty largest investments

as at 31 December 2003

Company                                   Valuation         % of    
                                                                    
                                            £'000           Total   
                                                           assets   
                                                                    
HSBC                                       23,236           5.71    
                                                                    
GlaxoSmithKline                            20,250           4.97    
                                                                    
BP                                         19,611           4.82    
                                                                    
Shell                                      17,717           4.35    
                                                                    
Barclays                                   15,627           3.84    
                                                                    
British American                           14,718           3.61    
Tobacco                                                             
                                                                    
Lloyds TSB                                 12,497           3.07    
                                                                    
BT                                         12,266           3.01    
                                                                    
Prudential                                 10,363           2.55    
                                                                    
Abbey National                             10,329           2.54    
                                                                    
Scottish Power                             10,101           2.48    
                                                                    
Severn Trent                                9,824           2.41    
                                                                    
Investec UK Smaller                                                 
                                                                    
Companies Fund                              9,230           2.27    
                                                                    
Unilever                                    9,095           2.23    
                                                                    
Diageo                                      8,670           2.13    
                                                                    
Dixons                                      8,665           2.13    
                                                                    
Alliance & Leicester                        8,663           2.13    
                                                                    
Royal Bank of                               8,248           2.03    
Scotland                                                            
                                                                    
Gallaher                                    8,128           2.00    
                                                                    
Marks & Spencer                             6,015           1.48    
                                                                    
                                           243,253          59.76   

  Consolidated Statement of total return (incorporating the revenue account)   

                                 of the group                                  

                      for the year ended 31 December 2003                      

                                  2003                       2002           
                                                                            
                        Revenue  Capital  Total   Revenue  Capital   Total  
                                                                            
                        £'000     £'000   £'000    £'000    £'000    £'000  
                                                                            
Gains/(losses) on          -     56,544   56,544     -     (75,090) (75,090)
investments                                                                 
                                                                            
Income                   19,301     -     19,301   18,142     -      18,142 
                                                                            
Investment management    (584)    (875)  (1,459)   (771)    (771)   (1,542) 
                                                                            
fee                                                                         
                                                                            
Other expenses           (411)      -     (411)    (417)      -      (417)  
                                                                            
Net return before        18,306  55,669   73,975   16,954  (75,861) (58,907)
finance costs and                                                           
taxation                                                                    
                                                                            
Interest payable        (1,823)  (2,736) (4,559)  (2,280)  (2,279)  (4,559) 
                                                                            
Return on ordinary       16,483  52,933   69,416   14,674  (78,140) (63,466)
activities before                                                           
taxation                                                                    
                                                                            
Taxation                   -        -       -        -        -        -    
                                                                            
Return on ordinary       16,483  52,933   69,416   14,674  (78,140) (63,466)
activities after                                                            
taxation                                                                    
                                                                            
Ordinary dividends      (15,190)    -    (15,190) (14,817)    -     (14,817)
                                                                            
Transfer to/(from)       1,293   52,933   54,226   (143)   (78,140) (78,283)
reserves                                                                    
                                                                            
Return per ordinary      28.46p  91.41p  119.87p   25.34p  (134.96) (109.62)
share                                                         p        p    
                                                                            
Dividends per ordinary   26.23p                    25.59p                   
share                                                                       
                                                                            

The revenue column of this statement is the profit and loss account of the
Group.

All principal activities of the Group are continuing operations as defined by
Financial Reporting Standard 3. No operations were acquired or discontinued in
the year.

                       Consolidated cash flow statement                        

                                          2003                 2002        
                                                                           
                                  £'000 £'000          £'000 £'000         
                                                                           
Net cash inflow from operating                17,643               16,388  
activities                                                                 
                                                                           
Return on investments and                                                  
servicing of finance                                                       
                                                                           
Interest paid                      (4,559)              (4,559)            
                                                                           
Net cash outflow from return on               (4,559)              (4,559) 
investments and servicing of                                               
finance                                                                    
                                                                           
Taxation                                                                   
                                                                           
UK tax recovered                                 -                   112   
                                                                           
Capital expenditure and financial                                          
investment                                                                 
                                                                           
Purchases of investments          (163,564)            (166,183)           
                                                                           
Sales of investments               151,726              164,096            
                                                                           
Net cash outflow from capital                (11,838)              (2,087) 
expenditure and financial                                                  
investment                                                                 
                                                                           
Equity dividends paid                        (14,940)             (14,520) 
                                                                           
Cash outflow before management of            (13,694)              (4,666) 
liquid resources and financing                                             
                                                                           
Management of liquid resources                                             
                                                                           
Short term money market deposits              11,850                7,000  
withdrawn                                                                  
                                                                           
                                              (1,844)               2,334  
                                                                           
Financing                                                                  
                                                                           
Gross proceeds from issue of                    49                   57    
shares                                                                     
                                                                           
(Decrease)/increase in cash                   (1,795)               2,391  
                                                                           
Reconciliation of net cash flow                                            
to movement in net debt                                                    
                                                                           
(Decrease)/increase in cash        (1,795)               2,391             
                                                                           
Short term money market deposits   (11,850)             (7,000)            
withdrawn                                                                  
                                                                           
Change in net debt                           (13,645)             (4,609)  
                                                                           
Net debt at 1 January                        (48,077)             (43,468) 
                                                                           
Net debt at 31 December                      (61,722)             (48,077) 

Reconciliation of operating revenue to net cash inflow from operating
activities

                                                           2003        2002    
                                                                               
                                                           £'000       £'000   
                                                                               
Return on ordinary activities before finance costs and    18,306      16,954   
taxation                                                                       
                                                                               
Scrip dividends                                            (235)       (293)   
                                                                               
Decrease in accrued income                                  97          299    
                                                                               
(Increase)/decrease in debtors                             (25)         87     
                                                                               
Increase/(decrease) in creditors                            86         (167)   
                                                                               
Management fees charged to capital                         (875)       (771)   
                                                                               
Effective yield adjustment                                  289         279    
                                                                               
Net cash inflow from operating activities                 17,643      16,388   

                          Consolidated balance sheet                           

                                          2003                 2002        
                                                                           
                                  £'000 £'000          £'000 £'000         
                                                                           
Fixed Assets                                                               
                                                                           
Investments                                  402,895              334,811  
                                                                           
Current Assets                                                             
                                                                           
Debtors                             2,874                3,035             
                                                                           
Cash at bank                        1,278               14,923             
                                                                           
                                    4,152               17,958             
                                                                           
Creditors: amounts falling due     11,706               11,703             
within one year                                                            
                                                                           
Net current (liabilities)/assets             (7,554)               6,255   
                                                                           
Total assets less current                    395,341              341,066  
liabilities                                                                
                                                                           
Creditors: amounts falling due                63,000               63,000  
after more than one year                                                   
                                                                           
Net Assets                                   332,341              278,066  
                                                                           
Capital and Reserves                                                       
                                                                           
Called up share capital                       14,478               14,475  
                                                                           
Share premium account                         2,193                2,147   
                                                                           
Other reserves                                                             
                                                                           
Capital reserve - realised                   266,019              268,919  
                                                                           
Capital reserve - unrealised                  36,911              (18,922) 
                                                                           
Revenue reserves                              12,740               11,447  
                                                                           
Total shareholders' funds                    332,341              278,066  

Dividend

The directors will recommend to shareholders at the annual general meeting to
be held on 29 March 2004 that a final dividend of 17.80p per ordinary share be
paid on 31 March 2004 to shareholders on the Register at the close of business
on 19 March 2004.

Net Assets

                                                       2003           2002     
                                                                               
                                                    (audited)      (audited)   
                                                                               
Net asset value per ordinary share                   573.88p        480.24p    

Notes

 i. The figures set out above are derived from the audited consolidated
    accounts of Temple Bar Investment Trust Plc and its subsidiaries for the
    years ended 31 December 2002 and 31 December 2003. The 2003 accounts will
    be sent to shareholders shortly.
   
ii. The financial information contained in this announcement does not
    constitute full accounts within the meaning of section 254 of the Companies
    Act 1985. The 2003 accounts, on which the report of the auditors is
    unqualified, will be filed with the Registrar of Companies in due course.
    The audited accounts for the year ended 31 December 2002, on which the
    report of the auditors was unqualified and did not contain a statement
    under either Section 237(2) or 237(3) of the Companies Act 1985, have been
    filed with the Registrar of Companies.
   
17 February 2004

Contact: Alastair Mundy Telephone [phone]

Investec Investment Management Limited