Final Results

Personal Assets Trust PLC
21 May 2004



PERSONAL ASSETS TRUST PLC


To:            RNS

From:          Personal Assets Trust plc

Date:          21 May 2004

Preliminary Results (unaudited) for the year to 30 April 2004

The Directors of Personal Assets Trust (PAT) are pleased to announce the Group's
unaudited preliminary results for the year to 30 April 2004.


The key points are as follows:

  • PAT is run to meet the requirements of individual investors who wish to
    commit a significant proportion of their capital to an investment trust.

  • The Company has experienced a strong demand for its ISA and Investment
    Plans. During the year the Company issued 81,328 new Ordinary Shares,
    raising a net £16.7 million.

  • Since PAT became independently managed in 1990 the Board has chosen to
    measure PAT's performance over rolling three-year periods. Over the three
    years to 30 April 2004 the net asset value per share rose by 1.5 per cent
    compared to the FTSE All-Share Index's fall of 22.0 per cent, an
    outperformance of 30.2 per cent.

  • Over the year to 30 April 2004 PAT's net asset value per share rose by
    12.8 per cent. This compares to a rise of 18.3 per cent in the Company's
    benchmark, the FTSE All-Share Index. PAT's share price rose by £20.75 during
    the year and at 30 April 2004 was £214.50.

  • During the year, PAT continued to manage its effective liquidity actively
    (30 April 2004: 31 per cent, 30 April 2003: 25 per cent).

  • The Directors intend PAT's annual dividend rate to grow at least in line
    with inflation. Two interim dividends have been declared during the year,
    totalling £3.10 per ordinary share. Together these represent an increase of
    6.9 per cent over the corresponding payments for the previous year and
    compare to inflation of 2.5 per cent. The second interim dividend of £1.60
    per share will be paid on 28 May 2004.

    The Board's stated policy is never to cut the dividend rate, so that
    shareholders can be confident that each half-yearly payment will at least
    equal the previous one. Therefore, the first interim dividend for the year
    to 30 April 2005, expected to be paid in November 2004, will be at least
    £1.60 per share and total dividends for the year to 30 April 2005 will be
    not less than £3.20 per share.

    The Chairman, Robert White, said:

'This has not been an easy year for those who continue to hold a bearish view of
the world's major markets. Following last year's 22% outperformance, this year
our NAV underperformed our benchmark, the FTSE All-Share Index, for the first
time since 1994. The Board, however, measures performance over rolling three
year periods and I am glad to be able to say that over the period since 30 April
2001 Personal Assets has outperformed its benchmark by 30.2%. This is equivalent
to a rate of outperformance of 9.2% each year.

In each of the previous three years I announced a significant outperformance of
our benchmark while noting that shareholders had got no richer. This year, the
opposite is true. Although we underperformed our benchmark, our shares rose in
price from £1933/4 to £2141/2, within £5 of their all-time record high. The
Board believes that major stock markets are still substantially overvalued.
However, there are many who continue to cherish the illusion that we are in a
bull market, so we recognise that reality may not be quickly reflected in share
prices. I am therefore pleased to record that our dividend has been increased by
6.9%, a figure even more amply than usual in excess of the rate of inflation.

Particularly against the background of a weak dollar, we are often asked about
our exposure to that currency by those who see the large investments we have in
US Treasury stocks. Let me take this opportunity to assure you that these
investments are fully hedged against sterling at the time of purchase to
eliminate the currency risk. Our US equity holdings are also hedged as to
capital. As the income from them is immaterial, it is not worth our while
hedging it.

Our zero charge Investment Plans have again attracted substantial new money
(nearly £17 million this year). Since the government tirelessly warns us that
those wishing a long and comfortable retirement must now make significant
additional provision for themselves, it is less than obvious why, in addition to
the loss of the 10% tax credit on dividends, the maximum amount which it will be
permissible to invest in an ISA in 2006 is to be reduced to £5,000. (Even if
such a change did have to be made, many would have appreciated the selection of
a figure divisible by 12.) We are pleased to be able to tell holders and
prospective purchasers of our Investment Plans that we are now able to offer a
twice weekly dealing service whereas it was previously only weekly.

'Slick Willie' Sutton, the US bank robber of yesteryear, was allegedly asked why
he always robbed banks. 'Because that is where the money is,' was his rational
reply. So it is with the City, which has also always harboured a few unsavoury
characters. Sad to say, the consequence of this for the 99% plus who lead
upright lives is the burgeoning of regulation and compliance. This has become an
industry in itself, the costs of which are colossal. Yet again we have had to
expand our Annual Report to comply with it; and next year it will have to be
expanded even more. We should all, I think, feel warmer towards such regulation
if we felt it were likely to stop the crooks in their tracks. Alas! Most of the
evidence points in the other direction.

Two changes of relevance to the investment trust sector were announced in the
past year. Since October 2003 trusts have been allowed to buy their own shares
and hold them in Treasury, to be reissued as appropriate. This may be modestly
useful to us as an alternative to buying-in shares for cancellation. From
October 2006, international accounting rules will require us to value our
portfolio on a bid price as opposed to a mid-market price basis. This will
barely affect us, our portfolio being invested mainly in market leaders. The
effect will be more noticeable on trusts specialising in smaller companies,
where the spread between bid and offer is often quite large.'


For further information contact:


    Ian Rushbrook

    Managing Director

Tel: [phone]


The Group's Statement of Total Return, Balance Sheet and Cash Flow Statement
follow.



GROUP STATEMENT OF TOTAL RETURN 
(Incorporating the Revenue Account) 
FOR THE YEAR ENDED 30 APRIL 2004 
 

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

  Gains on investments                                  -      3,355      3,355 
  Gains on derivative arrangements                      -      6,013      6,013 
  Exchange differences                                  -      4,393      4,393 
  Income                                            3,358         12      3,370 
  Expenses                                          (729)      (696)    (1,425) 

  Return on ordinary activities before tax          2,629     13,077     15,706 

  Tax on ordinary activities                        (257)        209       (48) 

  Return attributable to ordinary shareholders      2,372     13,286     15,658 

  Dividends in respect of ordinary shares         (1,935)          -    (1,935) 

  Transfer to reserves                                437     13,286     13,723 

  Return per share                                  £3.98     £22.31     £26.29 
 
 
 
 
GROUP STATEMENT OF TOTAL RETURN 
(Incorporating the Revenue Account) 
FOR THE YEAR ENDED 30 APRIL 2003 
 

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

  Losses on investments                               -    (16,776)    (16,776) 
  Gains on derivative arrangements                    -       4,214       4,214 
  Exchange differences                                -       4,663       4,663 
  Income                                          2,588           6       2,594 
  Expenses                                        (672)       (541)     (1,213) 

  Return on ordinary activities before tax        1,916     (8,434)     (6,518) 

  Tax on ordinary activities                      (210)         163        (47) 

  Return attributable to ordinary                 1,706     (8,271)     (6,565) 
  shareholders                                                                  

  Dividends in respect of ordinary shares       (1,541)           -     (1,541) 

  Transfer to/(from) reserves                       165     (8,271)     (8,106) 

  Return per share                                £3.40    (£16.48)    (£13.08) 
 
 
 
 
  GROUP BALANCE SHEET AT 30 APRIL                               2004       2003 
                                                               £'000      £'000 
  Investments                                                                   
  Investments              - equities                         54,160     33,779 
                           - fixed interest                   73,078     38,926 
                           - other investments                 5,073     12,842 
                           - preference shares                     -      1,125 
                                                             132,311     86,672 

  Net Current Assets                                           2,459     17,652 

  Total Assets                                               134,770    104,324 

  Equity Shareholders' Funds                                 134,770    104,324 

  Net Asset Value per share                                  £210.17    £186.32 
 

                                                                                
  GROUP CASH FLOW STATEMENT AT 30 APRIL                        2004        2003 
                                                              £'000       £'000 

  Operating activities                                                          

  Investment income received                                  2,509       2,176 

  Deposit interest received                                     628         232 

  Other income                                                   66          96 

  Expenses                                                  (1,389)     (1,183) 

  Net cash inflow from operating activities                   1,814       1,321 


  Taxation                                                     (30)       (113) 


  Capital expenditure and financial investment                 (12)         (8) 

  Purchase of FTSE 100 Futures                               11,730     (2,050) 

  Disposal of FTSE 100 Futures                            (138,435)    (78,897) 

  Purchase of investments                                    96,151      65,560 

  Disposal of investments                                                       

  Net cash outflow from capital expenditure and            (30,566)    (15,395) 
  financial investment                                                          


  Dividends paid on ordinary shares                         (1,749)     (1,338) 

  Financing                                                                     

  Allotment of new shares                                    16,723      20,000 

  (Decrease)/increase in cash                              (13,808)       4,475 

  Reconciliation of net cash flow to movement in net                            
  funds                                                                         

  (Decrease)/increase in cash                              (13,808)       4,475 

  Effect of foreign exchange rates                            7,769       6,442 

  Change in net funds                                       (6,039)      10,917 

  Net funds at beginning of year                             12,240       1,323 

  Net funds at end of year                                    6,201      12,240 
 



Notes:

 1. Return per ordinary share is based on a weighted average of 595,622 ordinary
    shares in issue during the year (2003 - 501,825).
 2. Net asset value per ordinary share is based on the 641,253 ordinary shares in
    issue as at 30 April 2004 (2003 - 559,925).
 3. During the year the Directors allotted 81,328 ordinary shares.
 4. At 30 April 2004 the sterling value of the US Treasury Strip and US Equity
    exposure was protected by a forward currency contract.
 5. These are not full accounts in terms of Section 240 of the Companies Act
    1985. Full audited accounts for the year to 30 April 2003, which were
    unqualified, have been lodged with the Registrar of Companies. No full
    accounts in respect of any period after 30 April 2003 have been reported on
    by the Company's auditors or delivered to the Registrar of Companies.
 6. The Annual Report and Accounts will be posted to Shareholders during June
    2004. Copies will be available from the Company's registered office at 80
    George Street, Edinburgh, EH2 3BU.


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