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Gartmore Monthly (GMS)

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Thursday 14 June, 2001

Gartmore Monthly

Final Results

Gartmore Monthly Income Tst PLC
14 June 2001

                         STOCK EXCHANGE ANNOUNCEMENT

                      GARTMORE MONTHLY INCOME TRUST PLC

                Announcement of Preliminary Unaudited Results

                       for the year to 30th April 2001

The Directors announce the Group's unaudited results for the year to 30th
April 2001 as follows:-

Features


    -     In February 2001, the Company received shareholder approval to
    reorganise its capital structure and restate the investment objectives and
    policies

    -     Total Return on Total Assets, before interest payments, of 1.0% for
    the year to 30th April 2001, compared with a total return of minus 2.2% on
    the FTSE All-Share Index

    -     Revenue return per Ordinary share of 10.9p

    -     Total equity dividends paid for the year of 10.8p per share

    -     Zero Dividend Preference shares covered for full repayment on 30th
          April 2007



Chairman's Statement

Modification of Investment Objectives and Policy

During the first quarter of 2001, the Company sought and obtained shareholder
approval to modify its investment objectives and policy and to reorganise its
share capital, which subsequently took effect on 15th February 2001. The
Company's name was changed to Gartmore Monthly Income Trust to reflect its
revised investment objectives. These are to provide the holders of the
Ordinary Shares with a high and increasing level of monthly dividend income
and capital growth, whilst maintaining a satisfactory level of cover on the
Zero Dividend Preference Shares.

Capital Reorganisation

As part of the capital reorganisation, the Geared Ordinary Income Shares were
converted into Ordinary Shares with an indefinite life. Additionally, 42.8
million new Ordinary Shares were placed with investors, and I would like to
welcome those new shareholders to the Company.

Structure

The Senior and Junior Zero Dividend Preference Shares have been combined to
form a single class of Zero Dividend Preference Shares, issued by a new
subsidiary, GMIT Securities PLC. These shares are repayable in April 2007, or,
at the option of the holders, in April 2002. At an issue price of 100p, the
new Zero Dividend Preference shares had a yield to redemption of 9.2%.

The bank loan, which was due for repayment on 30th April 2002, was repaid and
replaced with a new bank loan of £72.5 million arranged with The Royal Bank of
Scotland, repayable in full on 30th April 2007. This structure provides a
geared return of both income and capital to Ordinary shareholders, owing to
the preferential and predetermined return of capital to Zero Dividend
Preference shareholders.

Changes to Investment Objectives and Policy

As outlined in the prospectus sent to shareholders on 18th January 2001, the
Company's investment objectives were modified to provide the holders of the
Ordinary shares with a high and increasing level of monthly dividend income
and some capital growth, while maintaining a satisfactory level of cover on
the Zero Dividend Preference shares.

To meet these objectives, the Company's assets are being rebalanced into two
separate portfolios - an Equity Portfolio and an Income Share Portfolio. The
Equity Portfolio was projected to comprise 55% of total assets, with a
targeted yield of 3.2%, and the Income Share Portfolio to comprise the
balance, with a targeted yield of 10.5%.

The Equity Portfolio is invested primarily in a diversified range of
principally large capitalisation UK companies and the Income Share Portfolio
primarily in geared ordinary shares offering a high yield and potential for
capital growth.

Achievements

The reconstruction of the Company increased its total assets from £220 million
to £282 million. At that time, approximately £35 million of the Company's
assets were held in income shares, which, therefore, required approximately £
90 million of further investment into this sector. I am pleased to report that
the process of re-aligning the portfolio had made excellent progress by the
Company's year-end.

At 30th April 2001, total assets had fallen to £266 million of which £74
million, or 27.7%, was invested in income shares, £183 million, or 68.7%, was
invested in UK equities and £9 million, or 3.6%, was held in other liquid
assets. Our expectation is that the new investment policy should be fully
implemented within two months. As set out in the prospectus, the intention is
to invest in income shares on a selective basis primarily in the secondary
market, while also picking some of the best new issues. To achieve the stated
investment objectives the Managers may implement a rebalancing of the
Company's assets with a higher proportion in the Equity Portfolio and a lower
proportion in the Income Share Portfolio than projected.

Performance

Over the year to 30th April 2001, the Company's assets produced a total
return, before interest payments, of 1.0%, compared with a total return of
minus 2.2% on the FTSE All-Share index.

In the light of the changes to the Company's investment policy, a new
benchmark was adopted with effect from 15th February 2001. This is a composite
benchmark being 55% of the total return on the FTSE All-Share Index and 45% of
the total return on the HSBC Income Share Index. This new composite benchmark
replaced the FTSE All-Share total return, which was the Company's main
benchmark until the above date.

During the period from 15th February 2001 to 30th April 2001, the Company's
total assets produced a total return, before interest payments, of minus 4.1%,
while the composite benchmark produced a total return of minus 6.9%. Over
these months, income shares performed poorly. The Company benefited from this,
as it had only partially completed the realignment of its portfolio and,
therefore, held a higher proportion of equities.

Dividends

For the year to 30th April 2001, dividends totalling 10.8p have been declared.
This consists of three quarterly payments of 2.7p and one payment of 0.9p per
Geared Ordinary Income share and two monthly payments, since the formation of
Gartmore Monthly Income PLC, of 0.9p per Ordinary share. This represents an
increase of 2.9% over dividends paid for the year to 30th April 2000.

As set out in the prospectus, the Directors expect that, in the absence of
unforeseen circumstances, dividends totalling 12.5p will be paid for the
current year to 30th April 2002,, comprising seven monthly dividends of 1.0p
followed by five dividends of 1.1p. Based on the year-end mid-market price of
90.5p, this annual dividend yield on the Ordinary shares is 13.8%.

Outlook

The deteriorating outlook for corporate earnings in the UK, as a result of the
slowdown in the domestic economy and in the US, is largely reflected in the
current valuation of the UK equity market.

However, whilst market sentiment remains fragile, the fundamental outlook for
the UK economy is reasonably positive. Growth is expected to be broadly in
line with the long-term trend, whilst subdued inflation provides scope for
further interest rate reductions.

This should provide a more supportive backdrop for UK equities than in the
last twelve months, especially if the US economy begins to recover later in
the year. In the prevailing macroeconomic environment, investors are likely to
become more discriminating and focus on stock-specific earnings potential.
Sector rotation, a feature of the market over the last year, is likely to
become less pronounced.

Director

Due to the pressure of other commitments, Richard Ireland resigned as a
Director on 31st October 2000. I would like to thank him for his support since
joining the Board in June 1995.

Annual General Meeting

The Annual General Meeting will be held at 12.30 p.m. on 31st July 2001 at
Gartmore House, 8 Fenchurch Place, London EC3M 4PH. As usual there will be a
short presentation from the Company's portfolio manager, Richard Prvulovich.
This will also provide an opportunity for both the Directors and the portfolio
manager to answer any questions from shareholders relating to the Company.

Group Total Return

                                    Year to 30th April 2001
                                                 Revenue    Capital      Total
                                                                        Return
                                                   £'000      £'000      £'000
Income and Gains
Dividends and other income                        11,365          -     11,365
Net loss on
investments                                            -    (8,272)    (8,272)
                                              ------------ ------------ --------
Return before expenses, interest

and taxation                                      11,365    (8.272)      3,093

Expenses
Management fees                                    (532)      (532)    (1,064)
Other expenses                                     (174)      (174)      (348)
                                              ------------ ------------ --------
Return before interest and taxation               10,659    (8,978)      1,681

Interest payable

Bank loan interest                               (2,474)    (2,474)    (4,948)
                                              ------------ ------------ --------
Return to Shareholders                             8,185   (11,452)    (3,267)

Appropriated to minority interests
GMIT Securities Zero:

Repayment premium reserve                              -    (8,531)    (8,531)
                                              ------------ ------------ --------
Return on ordinary activities to Equity            8,185   (19,983)   (11,798)
Shareholders

Appropriated to Equity Shareholders
Dividends:
On the Geared Ordinary Income

shares - 9.0p                                    (5,976)          -    (5,976)
On the Ordinary shares - 1.8p                    (1,976)          -    (1,976)
                                              ------------ ------------ --------
Transferred to/(from) Reserves:
Ordinary shares                                      233   (19,983)   (19,750)
                                              ------------ ------------ --------

Total Return per Share

Ordinary shares                                    10.9p    (26.5)p    (15.6)p



Group Total Return (comparative)

Year to 30th April 2000
                                                 Revenue    Capital      Total
                                                                        Return
                                                   £'000      £'000      £'000
Income and Gains
Dividends and other income                        10,113          -     10,113
Net loss on
investments                                            -   (30,518)   (30,518)
                                              ------------ ------------ --------
Return before expenses, interest                  10,113   (30,518)   (20,405)

and taxation

Expenses
Management fees                                    (537)      (537)    (1,074)
Other expenses                                     (116)      (116)      (232)
                                              ------------ ------------ --------
Return before interest and taxation                9,460   (31,171)   (21,711)

Interest payable

Bank loan interest                               (2,423)    (2,423)    (4,846)
                                              ------------ ------------ --------
Return to Shareholders                             7,037   (33,594)   (26,557)

Appropriated to Non-Equity Shareholders
Repayment premium reserves:
Zero Dividend Preference shares                        -    (8,100)    (8,100)
                                              ------------ ------------ --------
Return on ordinary activities to Equity            7,037   (41,694)   (34,657)
Shareholders

Appropriated to Equity Shareholders
Dividends:
On the Geared Ordinary Income

shares - 10.5p                                   (6,971)          -    (6,971)
                                              ------------ ------------ --------
Transferred to/(from) Reserves:
Geared Ordinary Income shares                         66   (41,694)   (41,628)
                                              ------------ ------------ --------

Total Return per share

Geared Ordinary Income shares                      10.6p    (62.8)p    (52.2)p



Note

Expenses and financing costs are allocated 50% to revenue and 50% to capital.

Total return per Ordinary share has been calculated on the adverse total
return to equity shareholders of £11,798,000(adverse total return of £
34,657,000) and 75,440,187 Ordinary shares, being the weighted average number
of shares in issue throughout the year (66,386,876 Geared Ordinary Income
shares).


Group Balance Sheet                                      At                  At

                                                 30th April          30th April

                                                       2001                2000
                                                      £'000               £'000

Fixed Assets
Investments at valuation:
Listed investments                                  256,311             211,824

Current Assets
Debtors                                               7,529               9,161
Short-term deposits                                   7,926               2,798
Cash at bank                                             77                   -
                                               ------------        ------------
                                                     15,532              11,959
Creditors: amounts falling due
within one year                                       5,877               8,164
                                               ------------        ------------
Net Current Assets                                    9,655               3,795
                                               ------------        ------------
Total Assets,
less Current Liabilities                            265,966             215,619

Creditors: amounts falling due
after more than one year                           (72,016)            (52,000)
                                               ------------        ------------
Net Assets                                          193,950             163,619
                                               ------------        ------------

Capital and Reserves
Called-up share capital                               1,098              12,214
Share premium account                                     -             106,086
Special reserve                                     159,993                   -
Repayment premium reserves                                -              39,735
Other capital reserves:
Capital reserve - realised                         (65,728)             (9,185)
Capital reserve - unrealised                        (6,508)              14,153
                                               ------------        ------------
                                                     88,855             163,003
Revenue reserve                                         849                 616
Equity Shareholders' Funds:                    ------------        ------------
Ordinary shares                                      89,704              69,250
Non-equity Shareholders' Funds:

Zero Dividend Preference shares                           -              94,369

Minority interests:

GMIT Securities Zero                                104,246                   -
                                               ------------        ------------
Capital Employed                                    193,950             163,619
                                               ------------        ------------

Net Asset Value per share:
Senior ZDPs                                               -              169.2p
Junior ZDPs                                               -              169.4p
GMIT Securities Zero                                  99.8p                   -
Geared Ordinary Income shares                             -              104.3p
Ordinary shares                                       81.7p                   -

Notes

Listed investments are all listed in the UK.

The Special reserve account was created by the cancellation of the Share
premium account, as confirmed by an Order of the High Court of Justice,
Chancery Division, dated 24th April 2001.

Notes (continued)

Net Asset Values per share have been calculated on attributable assets and
shares in issue at the year-end as follows:
                                                          At                 At

                                                  30th April         30th April

                                                        2001               2000
                                                       £'000              £'000

109,842,768 Ordinary shares                           89,704                  -

66,386,876 Geared Ordinary Income

shares                                                     -             69,250
104,423,106 GMIT Securities Zeros                    104,246                  -

39,800,874 Senior ZDPs                                     -             67,356

15,949,478 Junior ZDPs                                     -             27,013
                                                ------------       ------------
                                                     193,950            163,619
                                                ------------       ------------


Group Cash Flow                                      Year to            Year to

                                                  30th April         30th April

                                                        2001               2000
                                                       £'000              £'000
Revenue Activities
Dividends and interest received
from investments                                      11,375              8,781
Interest received on deposits                            385                224
Other income                                              42                 32
Expenses paid,
allocated to revenue                                   (704)              (682)
                                                ------------       ------------
                                                      11,098              8,355
                                                ------------       ------------
Servicing of Finance
Interest paid, allocated to revenue                  (2,481)            (2,416)
                                                ------------       ------------
Taxation
Income tax recovered                                     153                158
                                                ------------       ------------
Investment Activities
Acquisitions of investments                        (206,931)           (86,568)
Disposals of investments                             152,759             90,245
Expenses and interest paid,
allocated to capital                                 (3,184)            (3,098)
                                                ------------       ------------
                                                    (57,356)                579
                                                ------------       ------------
Financing
Issue of Ordinary shares

(net of expenses)                                     41,600                  -
Loan to Subsidiary                                         -              (338)
                                                ------------       ------------
                                                      41,600              (338)
                                                ------------       ------------
Equity Dividends paid
Ordinary shares                                      (7,718)            (6,922)
                                                ------------       ------------
Net Cash Outflow                                    (14,704)              (584)
                                                ------------       ------------

Reconciliation of Net Cash Outflow
To Movement in Net Debt
Balance brought forward                             (49,309)           (48,725)
Net cash outflow                                    (14,704)              (584)
                                                ------------       ------------
Balance at 30th April                               (64,013)           (49,309)
                                                ------------       ------------
Comprising:
Fixed loan                                          (72,016)           (52,000)
Short-term deposits                                    7,926              2,798
Bank balances                                             77              (107)
                                                ------------       ------------
                                                    (64,013)           (49,309)
                                                ------------       ------------



Group Accounts

The Group accounts consolidate the unaudited accounts of the Company and its
wholly-owned subsidiary, GMIT Securities PLC, from the date of its
incorporation on 26th September 2000 to 30th April 2001. The comparative
figures presented are those of the parent company only as there were no
subsidiaries to be included in a consolidation at 30th April 2000.

The financial information set out in the announcement does not constitute the
Group's statutory accounts for the years ended 30th April 2001 or 2000. The
financial information for the year ended 30th April 2000 is derived from the
statutory accounts for that year which have been delivered to the Registrar of
Companies. The auditors reported on those accounts; their report was
unqualified and did not contain a statement under s237(2) or s237(3) of the
Companies Act 1985. The statutory accounts for the year to 30th April 2001
will be finalised on the basis of the information presented by the Directors
in this preliminary statement and will be delivered to the Registrar of
Companies following the Company's Annual General Meeting.

There have been no changes in accounting policies since 30th April 2000.



Annual Report and Accounts

The Report and Accounts for the year ended 30th April 2001 will be posted to
shareholders shortly. Copies will be available from the Registered Office of
the Company: Gartmore House, 8 Fenchurch Place, London EC3M 4PH.





Gartmore Monthly Income Trust PLC

Gartmore Investment Limited - Secretaries



14th June 2001


                                                                                
                                                                                
                                                                    

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