Final Results

RNS Number : 8655N

Henderson Eurotrust PLC

03 October 2012

 



3 October 2012

This announcement contains regulated information.

HENDERSON EUROTRUST PLC

Annual Financial Report for the year ended 31 July 2012

Financial Highlights
	31 July 2012	31 July 2011	Change
	pence	pence	%
Net Asset Value
ordinary share	580.2	624.7	- 7.1
Revenue Return
ordinary share	17.0	17.6	-3.4
Dividends
ordinary share	16.5	15.0	+10.0

MANAGEMENT REPORT

Extracts from the Chairman's Statement

European equities, as measured by our benchmark index with dividends reinvested, were 'flat' in local currency terms in the year ended 31 July 2012. Concerns about the Euro gave rise to a degree of capital flight from the region, causing Sterling to appreciate against the Euro by over ten per cent, in spite of the UK's own economic problems. The total return index in Sterling terms fell therefore by roughly that percentage. Our Portfolio Manager, Tim Stevenson, again outperformed the index, with a - 4.4% return, continuing a long run of positive relative returns. As the accompanying table shows, most of the relative performance again came from stock selection, with a modest contribution from the gearing, currency hedging and other management effects.

Performance Attribution                                     %

Benchmark Return                                           -12.8    

Country Allocation                                             0.1

Stock Selection                                                   9.1

Currency movements (relative to index)            0.3

Cash/gearing                                                       0.8

Management fees and other costs                      -1.8    

Effect of share buybacks                                     0.1

Net Asset Value Total Return                         -4.2

Change in discount to NAV                               -0.6

Share Price Total Return                                 -3.6

The Board proposes an 11.5p final dividend, taking the total distribution for the year to 16.5p, a 10% increase on last year. Even with this increased dividend we shall again be adding to our revenue reserve, which would stand at 10.7p per share after the proposed final distribution.

In the year under review over 130,000 shares were repurchased and cancelled. Our strong preference however is to pay dividends rather than to return capital via buybacks. We monitor closely both our own discount and the discount management policies of other trusts, and  note that aggressive buyback programmes appear to have only temporary effects on discounts. Dividends benefit all shareholders pro rata to their holdings, including loyal long term shareholders, whereas frequent buybacks appear mainly to benefit those shareholders selling their shares on or shortly after the trust's market intervention. The Board however continues to watch for what we see as unjustified or excessive discounts relative to similar trusts.

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HENDERSON EUROTRUST PLC

Annual Financial Report for the year ended 31 July 2012

Extracts from the Chairman's Statement (continued)

Henderson EuroTrust was launched 20 years ago, in July 1992, just weeks before the UK was forced to withdraw from the European Exchange Rate Mechanism. £1 invested at that time would, with reinvested dividends, be worth £9.70 today, whilst £1 invested in our benchmark index would be worth £4.29. In the last fifteen years relative performance has been positive in all but two. This steady outperformance, compounded over the years, is to the credit of our Manager.

Outlook

The economies of the region in which we invest are facing many uncertainties, and these may spill over at times into the valuations of companies traded on its stock markets. But perspective is needed; perhaps even greater uncertainties face the two largest economies of the world. The US confronts a so-called 'fiscal cliff' in a few months, and possibly a new President. A new leadership also takes over in China in 2013. We know from history that new political leaders often learn their economics 'on the job' through an educational process that is expensive for us all.

Meanwhile some of the best companies in the world are based in continental Europe, and because of capital flight from the region over the last two years or so, they are often available at reasonable multiples of earnings and dividends. It is the job of our management team to identify them. Our team has achieved this objective in the past and the Board has every confidence that it will carry on doing so.

Annual General Meeting

Our meeting will be held on Wednesday 14 November 2012 at 2.30pm at Henderson's offices at 201, Bishopsgate, London EC2M 3AE.

Mark Tapley

Chairman

3 October 2012

Principal risks and uncertainties

The Board has drawn up a matrix of risks facing the Company and has put in place a schedule of investment limits and restrictions, appropriate to the Company's investment objective and policy, in order to mitigate these risks as far as practicable. The principal risks which have been identified and the steps taken by the Board to mitigate these are as follows:

• Investment activity and performance

An inappropriate investment strategy (for example, in terms of asset allocation or the level of gearing) may result in underperformance against the Company's benchmark index and the companies in its peer group. The Board monitors investment performance at each Board meeting and regularly reviews the extent of its borrowings.

• Portfolio and market

Although the Company invests almost entirely in securities that are quoted on recognised markets, share prices may move rapidly. The companies in which investments are made may operate unsuccessfully, or fail entirely. A fall in the market value of the Company's portfolio would have an adverse effect on shareholders' funds. The Board reviews the portfolio each month and mitigates risk through diversification of investments in the portfolio.

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HENDERSON EUROTRUST PLC

Annual Financial Report for the year ended 31 July 2012

Principal risks and uncertainties (continued)

• Regulatory

A breach of section 1158 of the Corporation Tax Act 2010 could lead to a loss of investment trust status, resulting in capital gains realised within the portfolio being subject to corporation tax. A breach of the UKLA Listing Rules could result in suspension of the Company's shares, while a breach of the Companies Act 2006 could lead to criminal proceedings, or financial or reputational damage. The Manager is contracted to provide investment, company secretarial, administration and accounting

services through qualified professionals. The Board receives internal control reports produced by the Manager on a quarterly basis, which confirm regulatory compliance.

• Operational

Disruption to, or failure of, the Manager's accounting, dealing or payment systems or the custodian's records could prevent the accurate reporting and monitoring of the Company's financial position. The Company is also exposed to the operational risk that one or more of its suppliers may not provide the required level of service.

Details of how the Board monitors the services provided by the Manager and its other suppliers, and the key elements designed to provide effective internal control, are explained further in the internal control section of the Corporate Governance Statement and in Note 15 in the Annual Report.

By its nature as an investment trust, the Company's business activities are exposed to market risk (including market price risk, currency risk and interest rate risk), liquidity risk, and credit and counterparty risk. Details of these risks and how they are managed are contained in the notes in the Annual Report.

Related party transactions (transactions with the Manager)

The provision of investment management, accounting, company secretarial and administration services has been outsourced to Henderson Global Investors Limited ('Henderson' or the 'Manager').  This is the only related party arrangement currently in place.  Other than fees payable by the Company in the ordinary course of business, there have been no material transactions with the related party which have affected the financial position or performance of the Company during the year under review.

Statement of Directors' Responsibilities

In accordance with Disclosure and Transparency Rule 4.1.12, the Directors confirm to the best of their knowledge that:

(a) the financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), give a true and fair view of the assets, liabilities, financial position and loss of the Company; and

(b) the Directors' Report in the Annual Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

For and on behalf of the Board

Mark Tapley

Chairman

3 October 2012

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HENDERSON EUROTRUST PLC

Annual Financial Report for the year ended 31 July 2012

Portfolio Manager's Report

Overview

Europe is beset by two conflicting forces, summed up by a poor macroeconomic and political environment contrasted with many top quality companies available at modest valuations. To benefit from the latter, an investor has to have the patience to endure the former.

Over the last year the total return has been negative, with a decline of 4.4%,  which is considerably smaller than the decline in the benchmark FTSE World Europe (ex UK) Index of 12.8%. These returns have been achieved against the notable headwind of currency movements as Sterling appreciated against the Euro and the Swiss Franc by over 10%.  Over five years the figures are +14.8% for the trust and -8.7% for its benchmark while over ten years the trust has returned 186.7% versus the benchmark return of 102.0%.

The significance of giving the longer term numbers lies in the importance of patience in doing what we do for Henderson EuroTrust. In investment terms, patience seems to be a forgotten attribute, as 'algorithmic' and 'high frequency' trading have become more popular. In many ways we share the views of Professor John Kay, the economist commissioned by the UK government to investigate if equity markets are working effectively. In his recent report (http://www.bis.gov.uk/kayreview) he expresses concern at the culture of short-termism and recommends changes in executive pay and reporting frequency to help reverse this trend. 

I am pleased that we have also managed another increase in the dividend this year despite the challenging environment.  The low valuation of European markets and the encouragingly consistent trend of European companies to recognise the importance of shareholders, has led to a dividend yield of our shares at year end of 3.3%.

Economies and the Euro Debate

The economic picture has remained mixed with the US recovery not as robust as hoped. China, until recently the cornerstone of global growth aspirations, has seen weaker growth as have most emerging markets. There has not been much positive news to counter the theory that we are in for a very long period of low growth, punctuated with bouts of excessive optimism or excessive bearishness. In the European area, only Northern Europe has seen reasonable growth, but at the time of writing, there is clear evidence that even this is slowing.

The European project has finally taken a fork in the road - towards closer integration, after two years or so of indecision and years of applying 'patches' - like sticking plasters or software glitches being resolved. Recent decisive action has started to remove the 'convertibility' risk that has led to higher interest rates in some areas. With the European Central Bank ('ECB') doing all it can, the pressure will remain on each country to continue with domestic reforms.   At last measures are being put in place that should have been taken before the Euro project started. Another way to think of this is that it is akin to putting in foundations to a huge and complex building when it is already 17 storeys high. Only when we see this are we likely to see an easing in the understandable reluctance of 'the prudent' to subsidise 'the less prudent'.

We continue to believe that the Euro will survive, as the succession of measures buys enough time for the long term reforms to begin to come through.

What have we been doing in the portfolio?

We have been working with the low growth and high debt assumptions for a while now and therefore have concentrated on good quality, consistent, reliable names. The strong outperformance of these stocks has increased their valuation premium over lower quality names in the market, but despite this we feel comfortable holding a large number of these better quality names, as we feel that the strong will get stronger. Given their structural advantages we believe quality companies will outperform for a sustained period. It is also important to note that although quality stocks have outperformed, in many

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HENDERSON EUROTRUST PLC

Annual Financial Report for the year ended 31 July 2012

Portfolio Manager's Report (continued)

cases they have merely been appreciating in value in line with their earnings growth, leaving their valuation rating unchanged in absolute terms.

We have an overweight exposure to industrials (mainly business services and IT sectors) where we are finding good opportunities for growth. Over the course of the year we have increased our health care exposure (we added Sanofi, Novartis and Novo Nordisk). This was funded by a reduction in our engineering exposure (sold ABB, Atlas Copco, Schneider, Kone and Siemens). In practice this has seen us position the portfolio away from those sectors we consider to be at greatest risk from weak

economic growth, such as banks (we have none) and selected cyclicals, and add to our quality growth positions.

Looking at individual stocks our preference for market leaders has been rewarded. Deutsche Post, the trust's largest position for most of the year, continued to see strong growth through its DHL business. Essilor (lenses for glasses) and Fresenius SE (health care conglomerate) also proved it possible to prosper in what has been a difficult environment. It is pleasing to see two Spanish-listed stocks in our top performers, Amadeus IT Holding (airline booking systems) and the long-standing position in Inditex (in our view the best clothes retailer in the world). The good performance of these stocks highlights the importance of selecting good companies rather than focusing purely on sectors or domicile. It clearly demonstrates the frustrating nature of the conflict (highlighted at the beginning of this report) between strong companies and political uncertainties. We are also acutely aware of the need to add potential recovery names to the portfolio, but we will only do this when we can be as close to certain as possible that we are not buying into a 'value trap'.

Summary of changes made

We have added 16 new positions to the portfolio this year (and have completely sold 15 positions). The number of holdings has risen to 51 from 50 a year ago.. Turnover (as measured by the lower of purchases or sales as a percentage of average assets) was 66.5%, in line with 64.5% the previous year.  New names include some real gems that have drifted back to attractive valuations given their growth potential. This list contains stocks such as Richemont in the luxury area (with brands such as Cartier and Mont Blanc), or ASML (semi-conductor equipment manufacturer) in the technology arena. Over the last few years, there are many companies in Europe which have risen to commanding positions in their industry, and ASML is one of the finest examples. I would add Dassault Systèmes into this category, as it is one of the world's leading 3D design companies. Other names include Luxottica (luxury sunglasses with brands such as Ray-Ban and Oakley), Novo Nordisk in pharmaceuticals which specialises in treating diabetes and also has a potentially huge drug to help in the battle against obesity. Another new entry is Wirecard which is involved in the booming market of mobile payment systems. To some extent these companies are also beneficiaries of demographics.

The common feature amongst most names in the portfolio is that of growth independent of the economic environment. As alluded to earlier, I  fear that we are in for years of low growth, and as such any company that can either be 'part of the solution' (that is help companies, individuals or governments operate more efficiently) or expand in new markets, should be able to grow faster and achieve and maintain a higher than average market rating.  Analysis of the portfolio shows an average price-to-earnings multiple of 12.7 times. This is higher than the market average but when you take into account forecast earnings growth of 12.5% (and hence a price-to-earnings-growth ratio of approximately 1.0) the valuations are clearly attractive.

Outlook

Autumn 2012 sees the world faced with a huge list of problems, and a cupboard that is almost empty of useful tools with which to confront those issues. We have therefore sided even more heavily with the 'quality growth' companies that have served us so well over many years. As soon as the US election is over, the issue of the 'fiscal cliff' will have to be faced - and daunting though the debt is in the USA, one admirable feature of that economy and its people is its ability to find solutions to

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HENDERSON EUROTRUST PLC

Annual Financial Report for the year ended 31 July 2012

Portfolio Manager's Report (continued)

problems. Emerging markets are still growing, albeit at a lower rate. Europe will remain a very

difficult economy, and there is still plenty that could go wrong, in spite of the obvious commitment of

the ECB and European leaders to find a solution. Henderson EuroTrust is in a strong position, invested

in some great companies and at our disposal is an increased borrowing facility of £15m. If we utilise all that, we would be geared at year end NAV of the trust of £118m to the tune of 12.6%. The fall in European equities over the last year provides us with a great opportunity to invest in companies that can give us a total return (earnings growth added to dividend yield) of greater than 10%. Relative to Europe's own history and other regions, Continental European equity valuations have rarely been at such attractive levels. Bonds in contrast look highly dangerous in a number of countries with two-year government bonds being issued at negative nominal yields in some 'safe havens'. The fact that investors are willing to pay for the privilege of loaning to certain governments is a bizarre concept and shows the level of fear in markets. 

Volatility around political announcements will likely remain high and we intend therefore to utilise bad days to add to existing positions. In the context of the conflict referred to in the opening paragraphs, we expect the strength of European companies to be reflected in a gradual trend of rising share prices.

Tim Stevenson

Portfolio Manager

3 October 2012

Twenty Largest Holdings

These twenty investments total £62,557,000 representing 52.3% by value of the total investments.

	Name of Investment	Country	Sub- sector	2012 Valuation £'000
1	Deutsche Post	Germany	Air Freight & Logistics	5,911
2	Fresenius	Germany	Healthcare	4,296
3	Amadeus	Spain	IT Services	4,139
4	Ericsson	Sweden	Communication Equipment	3,632
5	BIC	France	Commercial Supplies	3,369
6	Dassault Systèmes	France	Application Software	3,228
7	ASML Holdings	Netherlands	Semi-conductor Equipment	3,074
8	Deutsche Telekom	Germany	Telecommunications	2,990
9	Swedish Match	Sweden	Tobacco Products	2,967
10	Adecco	Switzerland	Professional Services	2,871
11	A P Møller-Maersk	Denmark	Marine	2,782
12	Deutsche Börse	Germany	Financial Services	2,759
13	Saipem	Italy	Oil Equipment	2,731
14	Linde	Germany	Chemicals	2,628
15	ENI	Italy	Oil & Gas Producers	2,581
16	Dufry	Switzerland	Retailing	2,576
17	Sodexo	France	Catering Services	2,533
18	SGS	Switzerland	Support Services	2,512
19	Wirecard	Germany	IT Services	2,503
20	SAP	Germany	Computer Software	2,475

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HENDERSON EUROTRUST PLC

Annual Financial Report for the year ended 31 July 2012

Audited Income Statement

for the year ended 31 July 2012

	31 July 2012			31 July 2011
	Revenue return	Capital return	Total	Revenue     return	Capital  return	Total
	£'000	£'000	£'000	£'000	£'000	£'000
(Losses)/gains from investments held at fair value through profit or loss (note 2)	-	(7,819)	(7,819)	-	15,604	15,604
Investment income (note 3)	4,374	-	4,374	4,546	-	4,546
Other interest receivable and similar income	-	-	-	2	-	2
	---------	----------	---------	---------	----------	---------
Gross revenue and capital( losses)/gains	4,374	(7,819)	(3,445)	4,548	15,604	20,152
Management and performance fees	(161)	(1,614)	(1,775)	(184)	(1,371)	(1,555)
Other administrative expenses	(288)	-	(288)	(325)	-	(325)
	---------	----------	---------	---------	----------	----------
Net (loss)/return on ordinary activities before finance charges and taxation	3,925	(9,433)	(5,508)	4,039	14,233	18,272
Finance charges	(8)	(32)	(40)	(9)	(35)	(44)
	---------	----------	---------	---------	----------	----------
Net (loss)/return on ordinary activities before taxation	3,917	(9,465)	(5,548)	4,030	14,198	18,228
Taxation on net (loss)/return on ordinary activities	(437)	-	(437)	(373)	-	(373)
	---------	----------	---------	---------	----------	----------
Net (loss)/return on ordinary activities after taxation	3,480	(9,465)	(5,985)	3,657	14,198	17,855
	=====	=====	=====	=====	=====	=====
(Loss)/return per ordinary share  basic and diluted (note 4)	17.0p	(46.3)p	(29.3)p	17.6p	68.5p	86.1p
	=====	=====	=====	=====	=====	=====

The total column of this statement represents the Profit and Loss Account of the Company.

All revenue and capital items in the above statement derive from continuing operations. 

The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies. 

The Company had no recognised gains or losses other than those disclosed in the Income Statement.

There is no material difference between the loss on ordinary activities before taxation and the loss for the financial year stated above and their historical cost equivalents. 

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HENDERSON EUROTRUST PLC

Annual Financial Report for the year ended 31 July 2012

Audited Reconciliation of Movements in Shareholders' Funds

for the years ended 31 July  2012 and 31 July 2011

	Called up share capital	Share premium account	Capital redemption reserve	Capital reserves	Revenue reserve	Shareholders' funds total
Year ended 31 July 2012	£'000	£'000	£'000	£'000	£'000	£'000
At 31 July 2011	1,026	33,814	257	88,774	4,327	128,198
Net (loss)/return from ordinary activities after taxation	-	-	-	(9,465)	3,480	(5,985)
Repurchase of ordinary shares	(6)	-	6	(633)	-	(633)
Final dividend paid in respect of  the year ended 31 July 2011 (paid 18 November 2011)	-	-	-	-	(2,253)	(2,253)
Interim dividend paid in respect of  the year ended 31 July 2012 (paid 27 April 2012)	-	-	-	-	(1,020)	(1,020)
	---------	----------	---------	---------	---------	--------
	1,020	33,814	263	78,676	4,534	118,307
At 31 July 2012	=====	=====	=====	=====	=====	=====
	Called up share capital	Share premium account	Capital redemption reserve	Capital reserves	Revenue reserve	Shareholders' funds total
Year ended 31 July 2011	£'000	£'000	£'000	£'000	£'000	£'000
At 31 July 2010	1,044	33,814	239	76,555	2,958	114,610
Net return from ordinary activities after taxation	-	-	-	14,198	3,657	17,855
Repurchase of ordinary shares	(18)	-	18	(1,979)	-	(1,979)
Final dividend paid in respect of  the year ended 31 July 2010 (paid 22 November 2010)	-	-	-	-	(1,460)	(1,460)
Interim dividend paid in respect of  the year ended 31 July 2011 (paid 28 April 2011)	-	-	-	-	(828)	(828)
	---------	----------	---------	---------	---------	--------
At 31 July 2011	1,026	33,814	257	88,774	4,327	128,198
	=====	=====	=====	=====	=====	=====

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HENDERSON EUROTRUST PLC

Annual Financial Report for the year ended 31 July 2012

Audited Balance Sheet

at 31 July 2012

	2012 £'000	2011 £'000
Fixed asset investments held at fair value through profit or loss
Listed at market value  -  overseas	119,696	126,907
	----------	----------
Current assets
Debtors	383	1,194
Cash at bank and in hand	2,014	2,044
	---------	---------
	2,397	3,238
Creditors: amounts falling due within one year	(3,786)	(1,947)
	-------	-------
Net current (liabilities)/assets	(1,389)	1,291
	-------	-------
Total net assets	118,307	128,198
	=====	=====
Capital and reserves
Called up share capital (note 7)	1,020	1,026
Share premium account	33,814	33,814
Capital redemption reserve	263	257
Capital reserves	78,676	88,774
Revenue reserve	4,534	4,327
	----------	----------
Total shareholders' funds	118,307	128,198
	======	======
Net asset value per ordinary share (basic and diluted) (note 6)	580.2p	624.7p
	=====	=====

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HENDERSON EUROTRUST PLC

Annual Financial Report for the year ended 31 July 2012

Audited Cash Flow Statement

for the year ended 31 July 2012

	2012		2011
	£'000	£'000	£'000	£'000
Net cash inflow from operating activities		1,995		2,169
Servicing of finance
Interest paid	(40)		(45)
	--------		--------
Net cash outflow from servicing of finance		(40)		(45)
Taxation
Overseas tax recovered	186		302
	--------		--------
Net tax recovered		186		302
Financial investment
Purchases of investments	(79,581)		(78,167)
Sales of investments	79,693		78,774
	--------		--------
Net cash inflow from financial investment		112		607
Equity dividends paid		(3,273)		(2,288)
		--------		--------
Net cash (outflow)/inflow before financing		(1,020)		745
Financing
Repurchase of own shares	(633)		(1,979)
Drawdown/(repayment) of loans	1,441		(806)
	--------		--------
Net cash inflow/(outflow) from financing		808		(2,785)
		--------		--------
Decrease in cash		(212)		(2,040)
		=====		=====
Reconciliation of net cash flow to movement in net funds
Decrease in cash as above		(212)		(2,040)
Exchange movements		182		276
Net cash (inflow)/outflow from (increase)/decrease in loans		(1,441)		806
		--------		--------
Change in net funds resulting from cash flows		(1,471)		(958)
Net funds at 1 August		1,519		2,477
		--------		--------
Net funds at 31 July		48		1,519
		=====		=====
Represented by: Cash and cash equivalents		2,014		2,044
Bank loans		(1,966)		(525)
		48 =====		1,519 =====

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HENDERSON EUROTRUST PLC

Annual Financial Report for the year ended 31 July 2012

Notes:

	1.	Accounting Policies
		Basis of accounting
		The financial statements have been prepared on a going concern basis and under the historical cost basis of accounting, modified to include the revaluation of investments at fair value through profit or loss.  The financial statements have been prepared in accordance with applicable accounting standards in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under the standards and with the Statement of Recommended Practice ('SORP') for investment trusts issued by the Association of Investment Companies ('the AIC') in January 2009.  The Company's accounting policies are consistent with the prior year.
	2.	(Losses)/gains from investments held at fair value through profit or loss
			2012	2011
			£'000	£'000
		Gains on the sale of investments based on historical cost	607	8,495
		Less: revaluation gains recognised in previous years	(9,298)	(4,453)
			----------	----------
		(Losses)/gains on investments sold in the year based on carrying value at the previous balance sheet date	(8,691)	4,042
		Revaluation of investments held at 31 July	717	11,286
		Exchange gains	155	276
			----------	----------
			(7,819)	15,604
			======	======
	3.	Investment income
			2012	2011
			£'000	£'000
		Overseas dividend income	4,374	4,546
			=====	=====
	4.	(Loss)/return per ordinary share
		The total loss per ordinary share is based on the net loss attributable to the ordinary shares of £5,985,000 (2011: return of £17,855,000) and on 20,429,558 ordinary shares (2011: 20,737,127) being the weighted average number of shares in issue during the year.
		The total return can be further analysed as follows:
			2012 £'000	2011 £'000
		Revenue return	3,480	3,657
		Capital (loss)/return	(9,465)	14,198
			----------	----------
		Total (loss)/return	(5,985)	17,855
			======	======
		Weighted average number of ordinary shares	20,429,558	20,737,127
		Revenue return per ordinary share	17.0p	17.6p
		Capital (loss)/return per ordinary share	(46.3)p	68.5p
			----------	----------
		Total (loss)/return per ordinary share	(29.3)p	86.1p
			=====	=====

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HENDERSON EUROTRUST PLC

Annual Financial Report for the year ended 31 July 2012

5.	Dividend
	Subject to shareholder approval at the Annual General Meeting on 14 November 2012, the proposed final dividend of 11.5p per ordinary share will be paid on 20 November 2012 to shareholders on the register of members at the close of business on 19 October 2012. The shares will be quoted ex-dividend on 17 October 2012.
					2012
					£'000
	Revenue available for distribution by way of dividend for the year				3,480
	Interim dividend of 5.0p paid 27 April 2012				(1,020)
	Proposed final dividend for the year ended 31 July 2012 of 11.5p (based on 20,390,541 ordinary shares in issue at 3 October 2012)				(2,345)
					----------
	Undistributed revenue for section 1158 purposes*				115 =====
	*Undistributed revenue comprises 2.6% of the income from investments    of £4,374,000 (see note 3).
6.	Net asset value per ordinary share
	The net asset value per ordinary share of 580.2p is based on the net assets attributable to the ordinary shares of £118,307,000 (2011: £128,198,000) and on 20,390,541 (2011: 20,521,675) ordinary shares in issue at the year end.  There were no shares held in Treasury at the year end (2011: nil).
7.	Called up share capital
			Number of shares entitled to dividend	Total number of shares	Nominal value of shares £'000
	Ordinary shares of 5p each			75,000,000	3,750
				--------------	----------
	Issued - balance brought forward		20,521,675	20,521,675	1,026
	Repurchase and cancellation of ordinary shares		(131,134)	(131,134)	(6)
			--------------	--------------	----------
	Balance carried forward		20,390,541	20,390,541	1,020
			--------------	--------------	----------
	During the year 131,134 (2011: 355,250) ordinary shares were repurchased at a total cost of £633,000 (2011: £1,979,000) and subsequently cancelled. Since the year end no further shares have been repurchased.
8.	Going Concern Statement
	The Directors believe it is appropriate to continue to adopt the going concern basis in preparing the financial statements as the assets of the Company consist mainly of securities which are readily realisable and, accordingly, the Company has adequate financial resources to continue in operational existence for the foreseeable future. In reviewing the position as at the date of this statement, the Board has considered the 'Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009' published by the Financial Reporting Council in October 2009.

- MORE -

13

HENDERSON EUROTRUST PLC

Annual Financial Report for the year ended 31 July 2012

9.	2012 Financial information
	The figures and financial information for the year ended 31 July 2012 are extracted from the Company's annual financial statements for that period and do not constitute statutory financial statements for that period. The Company's annual financial statements for the year ended 31 July 2012 have been audited but have not yet been delivered to the Registrar of Companies. The Auditors' report on the 2012 financial statements was unqualified, did not include a reference to any matter which the Auditors drew attention without qualifying the report, and did not contain any statements under sections 498(2) and 498(3) of the Companies Act 2006.
10.	2011 Financial information
	The figures and financial information for the year ended 31 July 2011 are compiled from an extract of the published financial statements of the Company and do not constitute statutory financial statements for that year. The Company's annual financial statements 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 either section 498(2) and 498(3) of the Companies Act 2006.
11.	Annual Report and Financial Statements and Annual General Meeting
	The Report and Financial Statements for the year ended 31 July 2012 will be posted to shareholders in mid October 2012 and copies will be available on the Company's website (www.hendersoneurotrust.com) or in hard copy format from the Company's Registered Office, 201 Bishopsgate, London EC2M 3AE. The Annual General Meeting will be held at the registered office on Wednesday 14 November 2012 at 2.30 pm. The Notice of the Annual General Meeting will be posted to shareholders with the Annual Report and Financial Statements.

- ENDS -

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement

For further information please contact:

Tim Stevenson

Portfolio Manager, Henderson EuroTrust plc

Telephone: [phone]

James de Sausmarez

Head of Investment Trusts, Henderson Global Investors

Telephone: [phone]

Sarah Gibbons-Cook

Investor Relations and PR Manager, Henderson Global Investors

Telephone: [phone]

 

END

 

 

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