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Gartmore Balanced (GTB)

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Friday 27 February, 2004

Gartmore Balanced

Interim Results


STOCK EXCHANGE ANNOUNCEMENT

GARTMORE BALANCED ASSETS TRUST PLC

RESULTS FOR THE SIX MONTHS TO 31st JANUARY 2004

-----------------------------------------------------------------

The Directors announce the Group's unaudited results for the six months to 31st
January 2004.

GROUP TOTAL RETURN (UNAUDITED)

------------------------------------

                                           SIX MONTHS TO 31 JANUARY 2004    

                                           REVENUE      CAPITAL        TOTAL
                                                                            
                                                                      RETURN
                                                                            
                                             £'000        £'000        £'000
                                                                            
INCOME AND CAPITAL PROFITS/(LOSSES)                                         
                                                                            
Dividends and other income                     884            -          884
                                                                            
Net loss on investments                          -        2,169        2,169
                                                                            
                                            ------       ------       ------
                                                                            
RETURN BEFORE EXPENSES, FINANCE                884        2,169        3,053
                                                                            
COSTS AND TAXATION                                                          
                                                                            
EXPENSES                                                                    
                                                                            
Management fees                               (39)         (58)         (97)
                                                                            
Other expenses                                (99)            -         (99)
                                                                            
                                            ------       ------       ------
                                                                            
RETURN BEFORE FINANCE COSTS                    746        2,111        2,857
                                                                            
AND TAXATION                                                                
                                                                            
FINANCE COSTS                                                               
                                                                            
Interest payable                             (178)        (268)        (446)
                                                                            
                                            ------       ------       ------
                                                                            
RETURN BEFORE AND AFTER TAXATION               568        1,843        2,411
                                                                            
NON EQUITY MINORITY INTEREST                     -      (2,411)      (2,411)
                                                                            
                                            ------       ------       ------
                                                                            
TRANSFERRED TO/(FROM) RESERVES                 568        (568)            -
                                                                            
                                            ------       ------       ------
                                                                            
TOTAL RETURN PER ORDINARY SHARE               1.2p       (1.2)p            -
                                                                            
                                              ====        =====        =====

GROUP TOTAL RETURN COMPARATIVE (RESTATED)

------------------------------------------------

                                           SIX MONTHS TO 31 JANUARY 2003    

                                           REVENUE     RESTATED        TOTAL
                                                                            
                                                        CAPITAL       RETURN
                                                                            
                                             £'000        £'000        £'000
                                                                            
INCOME AND CAPITAL PROFITS/(LOSSES)                                         
                                                                            
Dividends and other income                   1,127            -        1,127
                                                                            
Net loss on investments                          -      (7,577)      (7,577)
                                                                            
                                            ------       ------       ------
                                                                            
RETURN BEFORE EXPENSES,                      1,127      (7,577)      (6,450)
                                                                            
FINANCE COSTS AND TAXATION                                                  
                                                                            
EXPENSES                                                                    
                                                                            
Management fees                               (32)         (48)         (80)
                                                                            
Other expenses                               (194)            -        (194)
                                                                            
RETURN BEFORE FINANCE COSTS                 ------       ------       ------
                                                                            
AND TAXATION                                                                
                                                                            
                                               901      (7,625)      (6,724)
                                                                            
FINANCE COSTS                                                               
                                                                            
Interest payable                                                            
                                                                            
                                             (178)        (267)        (445)
                                                                            
                                            ------       ------       ------
                                                                            
RETURN BEFORE AND AFTER TAXATION               723      (7,892)      (7,169)
                                                                            
NON EQUITY MINORITY INTEREST                     -         7169        7,169
                                                                            
                                            ------       ------       ------
                                                                            
TRANSFERRED TO/(FROM) RESERVES                 723        (723)            -
                                                                            
                                            ------       ------       ------
                                                                            
TOTAL RETURN PER ORDINARY SHARE               1.6p       (1.6)p            -

===== ====== ======



The Revenue column shown above represents the Revenue Account of the Group.

Management fees and finance costs of Gartmore Balanced Assets Trust PLC are
allocated 40% to revenue and 60% to capital.

The Group accounts for the six months to 31st January 2003 have been restated
in accordance with the Articles of Association and the revised Statement of
Recommended Practice for the Financial Statements of Investment Trust Companies
issued in January 2003.

Group revenue return per Ordinary share has been calculated on the return to
equity shareholders of £568,000 (2003: £723,000) and 45,877,600 (2003:
45,877,600) Ordinary shares in issue throughout the period.

Group capital return per Ordinary Share has been calculated on the adverse
return for the period of £568,000 (2003: adverse return of £723,000).



GROUP BALANCE SHEET                                            AT           AT
                                                                              
------------------------                                 31-01-04     31-07-03
                                                                              
                                                            £'000        £'000
                                                                              
CURRENT ASSETS                                             26,389       23,332
                                                                              
Listed Investments                                                            
                                                                              
Debtors: Amounts receivable within one year                   196          285
                                                                              
Cash at bank                                                2,364        3,074
                                                                              
                                                          -------      -------
                                                                              
                                                           28,949       26,691
                                                                              
Creditors: Amounts payable within one year               (13,483)     (13,636)
                                                                              
                                                          -------      -------
                                                                              
NET ASSETS                                                 15,466       13,055
                                                                              
                                                          =======      =======
                                                                              
CAPITAL AND RESERVES                                                          
                                                                              
Called-up share capital                                       459          459
                                                                              
Special reserve                                            42,509       42,509
                                                                              
Capital reserve - realised                               (32,744)     (21,144)
                                                                              
Capital reserve - unrealised                             (15,819)     (26,851)
                                                                              
Revenue reserve                                             5,595        5,027
                                                                              
                                                        ---------    ---------
                                                                              
EQUITY SHAREHOLDERS' SHORTFALL                                  -            -
                                                                              
MINORITY INTERESTS                                         15,466       13,055
                                                                              
                                                         --------     --------
                                                                              
CAPITAL EMPLOYED                                           15,466       13,055
                                                                              
                                                           ======       ======
                                                                              
AVAILABLE NET ASSET VALUE PER SHARE:                                          
                                                                              
ORDINARY SHARES                                               Nil          Nil
                                                                              
ZERO DIVIDEND PREFERENCE SHARES                             48.4p        40.8p
                                                                              

NOTES:

1.All listed investments have been stated at their realisable values. The Net
Asset Values per share are calculated in accordance with the Articles of
Association and the Statement of Recommended Practice of Investment Trust
Companies issued in January 2003 on attributable assets and shares in issue at
the period end as follows:

(i) Per Ordinary Share - on assets of nil (31st July 2003: nil) and 45,877,600
(2003: 45,877,600) shares in issue throughout the period.

(ii) Per GBAT Securities PLC Zero Dividend Preference (ZDP) share - on assets
of £15,466,000 (31st July 2003: £13,055,000) and 31,971,646 (2003: 31,971,646)
shares in issue.

A reconciliation of this basis to the FRS 4 basis is shown below:

                                           2004      2004       2003       2003
                                                                               
                                          £'000     £'000      £'000      £'000
                                                                               
                                       Ordinary       ZDP   Ordinary        ZDP
                                                                               
Assets attributable per Article               -    15,466          -     13,055
basis                                                                          
                                                                               
ZDP entitlement shortfall              (29,157)    29,157   (29,591)     29,591
                                                                               
                                     ----------  --------  ---------  ---------
                                                                               
Assets attributable per FRS            (29,157)    44,623   (29,591)     42,646
                                                                               
                                        =======    ======    =======     ======
                                                                               
Net Asset Value per FRS4                (63.5p)    139.6p    (64.5)p     133.4p
                                                                               

GROUP STATEMENT OF CASH FLOWS                                                 
                                                                              
------------------------------------                                          
                                                                              
                                                       Six months   Six months
                                                               to           to
                                                                              
                                                         31-01-04     31-01-03
                                                                              
                                                            £'000        £'000
                                                                              
OPERATING ACTIVITIES                                                          
                                                                              
Net dividends and interest received                           920        1,134
                                                                              
from investments                                                              
                                                                              
Interest received on deposits                                  41           76
                                                                              
Expenses paid allocated to revenue                          (176)        (220)
                                                                              
Expenses paid allocated to capital                           (57)        (180)
                                                                              
                                                          -------      -------
                                                                              
Net cash inflow from operating activities                     728          810
                                                                              
                                                          -------      -------
                                                                              
SERVICING OF FINANCE                                                          
                                                                              
Interest paid                                               (444)        (501)
                                                                              
FINANCIAL INVESTMENT                                                          
                                                                              
Acquisitions of investments                               (6,223)      (2,834)
                                                                              
Disposals of investments                                    5,229        6,319
                                                                              
                                                          -------      -------
                                                                              
Net cash (outflow)/inflow from financial investment         (994)        3,485
                                                                              
                                                          -------      -------
                                                                              
NET CASH (OUTFLOW)/INFLOW                                   (710)        3,794
                                                                              
                                                          -------      -------
                                                                              

Chairman's Statement

For the six months to 31st January 2004

It is gratifying to report a better performance by the Company over the
six-month review period.

The Company's Total Assets produced a total return (before cost of debt), of
10.9%, in comparison to the FTSE All-Share index's rise of 8.4% on a Total
Return basis.

The Company's performance received a useful boost from a welcome recovery in
the investment trust shares portfolio. On a total return basis this portfolio
rose by 36.8%, leveraging on the gains of the underlying stock market. During
the period the Manager took the opportunity to secure some gains from this
portfolio, thereby providing funds to increase the Company's direct investment
in equities.

The UK market's solid gains during the review period were underpinned by a
combination of much improved corporate earnings news and fresh signs that the
global economic recovery is now gaining momentum. The UK economy showed signs
of real resilience in the early part of 2003, though the latter part of the
year saw the economy demonstrate clear signs of more vigorous activity, with
good news from both the service and formerly beleaguered manufacturing sectors.
Meanwhile with consumers continuing to demonstrate considerable enthusiasm, the
Bank of England sanctioned two quarter point interest rate rises, one in
November and the latest in early February, amid concern over the outlook for
inflation and surging levels of personal debt.

With the UK economy ending the period in good health, expectations have risen
that further interest rate increases could be in the pipeline. While the
prospect of higher interest rates has acted as a drag on the UK equity market
in early 2004, we can take some encouragement from the significant improvement
in the corporate earnings outlook over recent months. In this light, we believe
that the UK market should remain well placed to withstand the effects of some
modest further monetary tightening.

In view of the large deficit of net assets attributable to ordinary
shareholders, the Board currently anticipates that it is likely it will propose
that the Company be wound up on the ZDP repayment date of 1st November 2004.

Interim Report

The Interim Report for the six months to 31st January 2004 will be posted to
shareholders shortly. Copies will also be available from the offices of
Gartmore Investment Limited, Gartmore House, 8 Fenchurch Place, London EC3M
4PB.

GARTMORE INVESTMENT LIMITED

27th February 2004


                                                                                                                                                    

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