Final Results

Henderson Eurotrust PLC 24 September 2003 23 SEPTEMBER 2003 HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2003 * Assets increased by 15.1% (index 9.3%) * Special dividend 0.5p * Earnings per share rise 57.6% * Encouraging start to current financial year Financial Highlights 31 July 2003 31 July 2002 Change pence pence % Net Asset Value Per ordinary share 267.75 232.64 +15.1 Per zero dividend preference share n/a 67.91 n/a Per unit (one ordinary share and one zero n/a 300.55 n/a dividend preference share) Earnings Per ordinary share 3.72 2.36 +57.6 Dividends Ordinary dividend 2.50 2.50 - Special dividend 0.50 - n/a Extracts from Chairman's Statement It has been both an interesting and successful year for your Company, our first as a conventionally structured Investment Trust. Markets have been far from straightforward, but the decline in assets was limited to less than that registered by the relevant benchmark index over the difficult first six months of our year. Subsequently, our fund manager achieved a return greater than the index in the rally, which has been seen in the latter part of our year. The total return at the year end including dividend income was an increase of 16.2%, compared with a 9.3% increase on the index. This is the best performance amongst our peer group. Revenue and Dividend Gross revenue for the year amounted to £1,581,000 (2002: £1,053,000). Net revenue on ordinary activities after taxation and administration expenses reached £954,000 (2002: £426,000), producing earnings of 3.72p (2002: 2.36p) per ordinary share. These higher earnings are a result of better interest and dividend income, as well as some underwriting income. An unchanged final dividend for the year of 1.5p (2002: 1.5p) per ordinary share is being recommended, with a special dividend of 0.5p making a total of 3.0p for the year which, if approved, will be paid on 12 November 2003. The special dividend reflects the exceptional level of income achieved partly as a result of the high cash position ahead of repayment of the zero dividend preference shares last October. - MORE - - 2 - HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2003 Corporate Governance There has been much discussion over the role of directors and the boards of listed companies, after the Higgs Report on corporate governance. Henderson EuroTrust has been in existence now since 1992, with the same fund manager; several members of the Board were there at the commencement also. One of the roles of the Board is to supervise and monitor the fund manager, to discuss with him relevant economic and corporate news, and to formulate a policy that is both consistent with our objective, prudent, and in the best interests of shareholders. Over the years we have backed our fund manager in his pursuit of a select list of investments in companies which have the ability to increase their earnings per share, and to produce better returns to shareholders. It has become more difficult, given the aftermath of the 'bubble' in technology, to identify the true growth companies, and to assess how the market will choose to value these companies. That is the role of our fund manager, and the Board watches his progress carefully. Together, this process has worked well for shareholders. Expenses For the year, total management and administrative expenses, excluding VAT, as recorded in the accompanying accounts, amounted to £652,000 equivalent to 0.95% of net asset value at the year end. This is one issue which has received additional focus. We are saddled with a number of unavoidable fixed costs, which accumulate as a percentage of the Company. We have therefore during the year reduced or eliminated a number of expenses which were considered non-essential in the current environment. The impact of this should be seen in full next year. We will continue to keep a sharp eye on overall expenses. Having outperformed the index by a significant amount in the year to the end of July, we would normally be paying a performance fee. However, the performance fee is subject to a number of requirements, one of which is that we must exceed a high watermark before the fee will be paid. This level is 269p per share which was the formula asset value of your Company as at 2 July 2002, as announced in connection with the proposals for Henderson EuroTrust's continuation. The formula asset value level was not reached during the year and therefore no fee was payable. Prospects Market sentiment has swung from the extremes of depression to a much more relaxed view of the current economic environment. It seems certain that the economic news from Continental Europe will continue to improve over the next few months, but improvement should not be confused with a return to rapid growth. The environment remains fraught with dangers, and some parts of the market seem to be anticipating a degree of recovery in profits which seems to us too optimistic. The approach of our fund manager, to focus on a short list of quality companies on the basis of their individual merits rather than any country or sector weighting, is one which has served us well. - MORE - - 3 - HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2003 Statement of Total Return (incorporating the revenue account) for the year ended 31 July 2003 Year ended 31 July 2003 Year ended 31 July 2002 unaudited audited Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Total capital gains/(losses) from investments - 9,497 9,497 - (13,457) (13,457) Income from fixed asset investments 1,356 - 1,356 948 - 948 Other interest receivable and similar income 225 - 225 105 - 105 ---------- ---------- ---------- ---------- ---------- ---------- Gross revenue and capital gains/(losses) 1,581 9,497 11,078 1,053 (13,457) (12,404) Management fee (135) (358) (493) (295) (295) (590) Other administrative expenses (209) (37) (246) (115) (115) (230) ---------- ---------- ---------- ---------- ---------- ---------- Net return/(loss) on ordinary activities before taxation 1,237 9,102 10,339 643 (13,867) (13,224) Taxation on net return/(loss) on ordinary (283) 119 (164) (217) 118 (99) activities ---------- ---------- ---------- ---------- ---------- ---------- Net return/(loss) on ordinary activities after taxation 954 9,221 10,175 426 (13,749) (13,323) ---------- ---------- ---------- ---------- ---------- ---------- Capital gains attributable to zero dividend - (368) (368) - (1,366) (1,366) preference shares ---------- ---------- ---------- ---------- ---------- ---------- Net return/(loss) attributable to ordinary shareholders 954 8,853 9,807 426 (15,115) (14,689) ---------- ---------- ---------- ---------- ---------- ---------- Dividends - ordinary shares First interim paid 1.0p(2002: 1.0p) (257) - (257) (176) - (176) Second interim paid nil (2002: 0.5p) - - - (88) - (88) Final proposed 1.5p (2002: 1.0p) (385) - (385) (257) - (257) Special proposed 0.5p (2002: nil) (128) - (128) - - - ---------- ---------- ---------- ---------- ---------- ---------- (770) - (770) (521) - (521) ---------- ---------- ---------- ---------- ---------- ---------- Transfer to/(from) reserves 184 8,853 9,037 (95) (15,115) (15,210) ===== ===== ===== ===== ===== ===== Return per Zero dividend preference share - 2.09p 2.09p - 7.77p 7.77p Ordinary share 3.72p 34.49p 38.21p 2.36p (83.64)p (81.28)p ===== ===== ===== ===== ===== ===== The revenue columns of this statement represent the profit and loss accounts of the Company. - MORE - - 4 - HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2003 Balance Sheet at 31 July 2003 2003 2002 unaudited audited £'000 £'000 Fixed asset investments Listed overseas 68,629 61,983 ------------ ------------ Current assets Debtors 155 138 Cash at bank and short term deposits 584 11,183 ------------ ------------ 739 11,321 Creditors: amounts falling due within one year (644) (1,650) ------------ ------------ Net current assets 95 9,671 ------------ ------------ Total assets less current liabilities 68,724 71,654 ------------ ------------ Total net assets 68,724 71,654 ======= ======= Capital and reserves Called-up share capital 1,283 4,800 Share premium account 33,814 33,838 Other reserves Redemption reserve - 8,426 Capital reserves - realised 27,973 30,084 Capital reserves - unrealised 5,045 (5,919) Revenue reserve 609 425 ------------ ------------ Shareholders' funds 68,724 71,654 ======= ======= Shareholders' funds attributable to Non-equity interests - zero dividend preference shares - 11,943 Equity interests - ordinary shares 68,724 59,711 ------------ ------------ 68,724 71,654 ======= ======= Net asset value per Zero dividend preference share - 67.91p Ordinary share 267.75p 232.64p ======= ======= - MORE - - 5 - HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2003 Cash Flow Statement for the year ended 31 July 2003 2003 2003 2002 2002 unaudited unaudited audited audited £'000 £'000 £'000 £'000 Net cash inflow/(outflow) from operating activities 564 (70) Taxation Overseas tax recovered 68 74 ------------ ------------ Net tax recovered 68 74 Financial investment Purchase of investments (40,407) (55,095) Sale of investments 42,077 41,417 ------------ ------------ Net cash inflow/(outflow) from financial investment 1,670 (13,678) Equity dividends paid (514) (528) Management of liquid resources 6,000 (6,000) Cash withdrawn from/(placed on) deposit ------------ ------------ 6,000 (6,000) ------------ ------------ Net cash inflow/(outflow) before financing 7,788 (20,202) Financing Proceeds from issue of ordinary shares - 22,163 Redemption of zero dividend preference shares (12,311) - Expenses paid in respect of share issue (372) (916) ------------ ------------ (12,683) 21,247 ------------ ------------ (Decrease)/increase in cash (4,895) 1,045 ======= ======= Reconciliation of net cash flow to movement in net funds (Decrease)/increase in cash as above (4,895) 1,045 Cash (inflow)/outflow from liquid resources (6,000) 6,000 Exchange movements 296 (47) ------------ ------------ Movement of net funds (10,599) 6,998 Net funds at 1 August 11,183 4,185 ----------- ----------- Net funds at 31 July 584 11,183 ======= ======= - MORE - - 6 - HENDERSON EUROTRUST PLC Preliminary Unaudited Results for the Year Ended 31 July 2003 Notes : 1. Return per share Return per zero dividend preference share reflects the predetermined growth in capital entitlement for the year of £368,000 (2002: £1,366,000) and on the 17,587,348 zero dividend preference shares which were in issue prior to the redemption on 31 October 2002 (2002: 17,587,348). Revenue return per ordinary share is based on earnings attributable to ordinary shares of £954,000 (2002: £426,000) and on the weighted average number of ordinary shares in issue during the year being 25,667,005 (2002: 18,074,341). Capital return per ordinary share is based on the net capital gains, after deduction of the zero dividend capital entitlement, of £8,853,000 (2002: £15,115,000 losses) and on the same weighted average number of ordinary shares in issue. 2. 2002 Accounts The figures and financial information for the year ended 31 July 2002 are extracted from the latest published accounts and do not constitute the statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under Section 237(2) or Section 237(3) of the Companies Act 1985. 3. 2003 Accounts The preliminary figures for the year ended 31 July 2003 are an extract from the latest accounts of the Company. These accounts have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them. 4. Dividend The recommended final dividend of 1.5p per ordinary share and a special dividend of 0.5p per ordinary share, making a total of 3.0p for the year, if approved, will be paid on 12 November 2003 to holders of ordinary shares on the register of members at close of business on 3 October 2003. The Company's shares will be quoted ex-dividend on 1 October 2003. 5. Annual General Meeting Copies of the Annual Report will be posted to shareholders in early October 2003 in time for the Annual General Meeting on 4 November 2003 and will be available from the Secretary at 4 Broadgate, London EC2M 2DA thereafter. - ENDS - For further information please contact: Tim Stevenson, Henderson EuroTrust plc Telephone: 020 7818 4100 Stephen Westwood Head of Investment Trusts, Henderson Global Investors Telephone: 020 7818 5517 Stephen Phillips Associate Director, Henderson Global Investors Telephone: 020 7818 6417 This information is provided by RNS The company news service from the London Stock Exchange OBKDACB

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