Interim Results

British Assets Trust PLC
09 May 2007


BRITISH ASSETS TRUST PLC

To:                RNS
From:              British Assets Trust plc
Date:              9 May 2007


Interim Results for the six months ended 31 March 2007

Financial Highlights

•         Net asset value total return of 7.7 per cent

•         Share price total return of 11.6 per cent



Chairman's Statement

For the six months ended 31 March 2007, the Company's net asset value total
return, with net dividends reinvested, was 7.7 per cent. This compares with a
return of 8.4 per cent from the composite benchmark of 75 per cent FTSE
All-Share Index and 25 per cent FTSE World (ex UK) Index.

The share price total return for the period was 11.6 per cent and the debt
adjusted discount of share price to net asset value per share narrowed from 10.5
per cent as at 30 September 2006 to 8.1 per cent as at the end of the period.

Strong corporate earnings and ongoing merger and acquisition activity continued
to support markets during the period. Lower oil prices and easing global
inflationary concerns also boosted markets. However, a sharp fall in Chinese
stocks in late February and concerns for the US sub-prime mortgage market
combined to unsettle markets. Equity markets fell sharply but recovered again in
March.

Financial market volatility has declined substantially over the past five years.
This in the main has reflected a more stable macroeconomic environment as
globalisation has improved growth whilst keeping inflation low. However,
investors are now starting to question if this stability will continue. This,
together with uncertainty over the outlook for the US economy is resulting in
more volatile financial markets.

Asset allocation, gearing and stock selection within the overseas portfolios
contributed positively to performance during the period. However, stock
selection returns within the UK portfolio lagged the FTSE All-Share Index. As
announced during the period, a new manager of the Company's UK portfolio was
appointed from within the F&C UK Equities Team. This will result in a more
focused portfolio going forward and the Board believes the change will result in
improved performance for this important part of the overall portfolio. The
underperformance of the UK portfolio during the period includes the cost of
re-aligning the portfolio in February.

Gearing

At the end of the period the Company's gearing, net of cash, was 16.2 per cent,
compared to 20.3 per cent as at 30 September 2006. This is represented by 9.7
per cent in equities and 6.5 per cent in corporate bonds. As a reflection of the
Managers' cautious view on markets, the level of net gearing was reduced during
the period by raising cash from the UK portfolio.

Earnings and Dividends

The Company's revenue earnings for the period were 2.7p per Ordinary Share (2006
- 2.4p). A first interim dividend of 1.356p per Ordinary Share was paid on 10
April 2007 and the Board has declared a second interim dividend of 1.356p per
Ordinary Share which will be paid on 6 July 2007 to shareholders on the register
on 8 June 2007.

The Company has continued to benefit from strong dividend growth from its
investee companies, in particular within the UK, and the continuing trend of
companies to return cash to shareholders by way of special dividends. Subject to
unforeseen circumstances, the Board would therefore hope to increase the total
dividend in respect of the current financial year by not less than 3.0 per cent
compared to the previous year.

The Board considers the Company's dividend yield to be one of its key
attractions. As at 31 March 2007, the yield of 3.8 per cent was some 36 per cent
higher than the FTSE All-Share Index yield of 2.8 per cent.

Outlook

Despite recent uncertainty, the fundamental backdrop for global stockmarkets
remains reasonable with little to choose between the geographic regions. A
recession in the US is unlikely but we do expect to see slower global growth and
lower earnings growth. Merger and acquisition activity is likely to continue to
bolster stockmarkets although there is some concern about the associated rising
debt levels.

W R E Thomson
Chairman



For further information please contact:
Julie Dent 0207 628 8000
[e-mail]
F&C Investment Business Limited




Unaudited Income Statement
For the 6 Months ended 31 March 2007

                                                                    2007             2007             2007
                                                                 Revenue          Capital            Total
                                                                   £'000            £'000            £'000

Gains on investments                                                   -           30,766           30,766
Exchange differences                                                   -                6                6
Income                                                            10,368                -           10,368
Investment management fee:
    Basic                                                          (258)            (775)          (1,033)
    Performance related                                                -                -                -
Other expenses                                                     (460)                -            (460)

Net return before finance costs & taxation                         9,650           29,997           39,647

Finance Costs:
     6.625% Bonds 2008                                             (505)          (1,514)          (2,019)
     6.25% Bonds 2031                                              (474)          (1,422)          (1,896)

Return on ordinary activities before tax                           8,671           27,061           35,732

Tax on ordinary activities                                         (124)                -            (124)

Return attributable to shareholders                                8,547           27,061           35,608

Return per Ordinary Share (p)                                        2.7              8.8             11.5


The total column of this statement is the profit and loss account of the
Company.  The supplementary revenue and capital columns are both prepared under
guidance published by the Association of Investment Companies.


Unaudited Income Statement
For the 6 Months ended 31 March 2006

                                                                       2006           2006           2006
                                                                    Revenue        Capital          Total
                                                                      £'000          £'000          £'000

Gains on investments                                                      -         53,760         53,760
Exchange differences                                                      -          (113)          (113)
Income                                                                9,335              -          9,335
Investment management fee:
     Basic                                                            (253)          (760)        (1,013)
     Performance related                                                  -          (583)          (583)
Other expenses                                                        (308)              -          (308)

Net return before finance costs & taxation                            8,774         52,304         61,078

Finance Costs:
      6.625% Bonds 2008                                               (505)        (1,514)        (2,019)
      6.25% Bonds 2031                                                (474)        (1,422)        (1,896)

Return on ordinary activities before tax                              7,795         49,368         57,163

Tax on ordinary activities                                            (117)              -          (117)

Return attributable to shareholders                                   7,678         49,368         57,046

Return per Ordinary Share (p)                                           2.4           15.4           17.8


Audited Income Statement
For the Year ended 30 September 2006

                                                                     2006             2006             2006
                                                                  Revenue          Capital            Total
                                                                    £'000            £'000            £'000

Gains on investments                                                    -           33,150           33,150
Exchange differences                                                    -              177              177
Income                                                             23,353              257           23,610
Investment management fee:
    Basic                                                           (512)          (1,537)          (2,049)
    Performance related                                                 -                -                -
                                                                            
Other expenses                                                      (826)                -            (826)

Net return before finance costs & taxation                         22,015           32,047           54,062

Finance Costs:
     6.625% Bonds 2008                                            (1,010)          (3,028)          (4,038)
     6.25% Bonds 2031                                               (944)          (2,832)          (3,776)

Return on ordinary activities before tax                           20,061           26,187           46,248

Tax on ordinary activities                                          (305)                -            (305)

Return attributable to shareholders                                19,756           26,187           45,943

Return per Ordinary Share (p)                                         6.3              8.3             14.6



Unaudited Balance Sheet                                                          Audited
                                                                As At              As At     As At 31.03.06
                                                             31.03.07           30.09.06
                                                                £'000              £'000              £'000
Non-Current Assets
Investments                                                   577,954            566,081            594,880

Current Assets
Debtors                                                         8,385              5,430              7,503
Cash at bank and on deposit                                    34,000             24,140             19,764

                                                               42,385             29,570             27,267
Creditors:
Amounts falling due within one year                           (3,840)            (6,014)            (2,830)

Net Current Assets                                             38,545             23,556             24,437

Total Assets less Current Liabilities                         616,499            589,637            619,317

Creditors:  amounts falling due after more than one
year:
6.625% Bonds 2008                                            (59,936)           (59,905)           (59,873)
6.25% Bonds 2031                                             (59,355)           (59,342)           (59,329)

                                                            (119,291)          (119,247)          (119,202)

Net assets                                                    497,208            470,390            500,115

Capital and reserves
Called-up share capital                                        77,128             77,128             79,103
Capital redemption reserve                                     11,213             11,213              9,238
Capital reserve - realised                                    305,733            246,431            255,476
Capital reserve - unrealised                                   69,110            101,351            125,867
Revenue reserve                                                34,024             34,267             30,431

Shareholders' Funds                                           497,208            470,390            500,115

Net Asset Value per Ordinary Share (p)                          161.2              152.5              158.1



Unaudited Reconciliation of Movements in Shareholders' Funds

                                                                 Six months      Six months        Audited Year
                                                                         to              to                  to
                                                                   31 March        31 March        30 September
                                                                       2007            2006                2006
                                                                      £'000           £'000               £'000

Opening shareholders' funds                                         470,390         460,858             460,858
Share buy-backs                                                           -         (9,016)            (19,395)
Dividends paid                                                      (8,790)         (8,773)            (17,016)
Return attributable to shareholders                                  35,608          57,046              45,943

Closing shareholders' funds                                         497,208         500,115             470,390



Summarised Unaudited Statement of Cash Flows

                                                            Six months      Six months       Audited Year
                                                                    to              to                 to
                                                              31 March        31 March       30 September
                                                                  2007            2006               2006
                                                                 £'000           £'000              £'000

Net cash inflow from operating activities                        7,060           4,613             19,048
Servicing of finance                                           (5,850)         (3,863)            (5,738)
Taxation                                                             -              46                 39
Financial investment                                            17,132           8,454             18,728
Dividends paid                                                 (8,790)         (8,773)           (17,016)

Net cash inflow before financing                                 9,552             477             15,061
Financing                                                            -         (9,016)           (19,395)

Increase/(decrease) in cash                                      9,552         (8,539)            (4,334)

Increase/(decrease) in cash                                      9,552         (8,539)            (4,334)
Currency gains                                                     308               -                171
Increase in 6.625% Bonds 2008 liability                           (31)            (31)               (63)
Increase in 6.25% Bonds 2031 liability                            (13)            (13)               (26)

Movement in net debt                                             9,816         (8,583)            (4,252)
Opening net debt                                              (95,107)        (90,855)           (90,855)

Closing net debt                                              (85,291)        (99,438)           (95,107)


Reconciliation of net return before finance costs and
taxation to net cash inflow from operating activities

Net revenue before finance costs and taxation                   39,647          61,078             54,062
Gains on investment                                           (30,766)        (53,760)           (33,150)
Exchange differences                                             (308)               -              (171)
Tax on investment income                                         (121)           (130)              (304)
Changes in working capital and other non-cash items            (1,392)         (2,575)            (1,389)

Net cash inflow from operating activities                        7,060           4,613             19,048



Notes:

1.      The unaudited interim results have been prepared on the basis of the
accounting policies set out in the statutory accounts of the Company for the
year ended 30 September 2006.

2.      Earnings for the first six months should not be taken as a guide to the
results of the full year.

3.      Total income of £10,368,000 includes special dividends of £874,000 all
recognised through revenue (31 March 2006 - £231,000 all through revenue and 30
September 2006 - £4,636,000 of which £4,379,000 was recognised through revenue
and £257,000 was recognised through capital).

4.      The second interim dividend of 1.356p per Ordinary Share will be paid on
6 July 2007 to shareholders on the register on 8 June 2007.  In accordance with
FRS 21 this dividend, and the first interim dividend of 1.356p per Ordinary
Share paid on 10 April 2007, have not been accounted for in the results for the
six months ended 31 March 2007.

5.      The last date for receipt of mandate instructions for those shareholders
who wish to join the Dividend Reinvestment Plan is 15 June 2007.

6.      Return per share is based on a weighted average 308,512,282 Ordinary
Shares in issue during the period (31 March 2006 - 320,093,326 and 30 September
2006 - 315,715,159).

7.   There were 308,512,282 Ordinary Shares in issue at 31 March 2007 (31 March
2006 - 316,412,282 and 30 September 2006 - 308,512,282).

8.   The following table provides a breakdown of the estimated contributions to
the net asset value total return for the period:


Attribution of Return                                                               Percentage Points

Market/benchmark return                                                                           8.4
Stock selection
            UK equities                                                                          -0.8
            UK equities - cost of portfolio re-alignment                                         -0.4
            Overseas equities                                                                     0.3
Regional asset allocation                                                                         0.1
Corporate bonds                                                                                  -0.3
Gearing/cash                                                                                      0.7
Expenses                                                                                         -0.3

British Assets Trust net asset value total return                                                 7.7


9.       The Company's geographic exposure as a percentage of shareholders'
funds at 31   March 2007 was as follows (comparative figures are for 30
September 2006).

                                                         31 March 2007            30 September 2006

UK                                                                80.0                         85.0
North America                                                     12.3                         12.3
Europe (ex UK)                                                     7.3                          6.2
Japan                                                              5.7                          6.1
Pacific (ex Japan)                                                 4.4                          4.0
Corporate Bonds                                                    6.5                          6.7
Liquidity                                                          7.8                          5.1
Borrowings                                                      (24.0)                       (25.4)
                                                                 _____                         ____
                                                                 100.0                        100.0

10.       These are not statutory accounts in terms of Section 240 of the
Companies Act 1985 and are unaudited.  Statutory accounts for the year ended 30
September 2006, which received an unqualified audit report, have been lodged
with the Registrar of Companies.  No statutory accounts in respect of any period
after 30 September 2006 have been reported on by the Company's auditors or
delivered to the Registrar of Companies.  The Interim Report will be sent to
shareholders in May 2007.


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