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Henderson Geared (HGR)

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Friday 18 October, 2002

Henderson Geared

Interim Results

Henderson Geared Inc & Gwth Tst PLC
18 October 2002



18 OCTOBER 2002


                   HENDERSON GEARED INCOME & GROWTH TRUST PLC

        Unaudited Interim Results for the half year ended 31 August 2002

Financial Highlight

*     Dividends up 14% compared with last year.

Extracts from the Chairman's Statement:

Hopes that stockmarkets would stage a recovery over the summer were dispelled by
a further setback in the world economy. In the UK the lowest interest rates for
forty years have yet to have had much impact outside the construction and
housing markets. Companies have refused to increase investment spending and have
run down inventories, while new orders have been hard to find. A continuous
downgrading of corporate profits combined with accounting scandals in the United
States finally cracked investors' resolve in July, creating a wave of selling.
In the third quarter of 2002 the US and UK stockmarkets have both fallen in
value by more than 20%.

As markets fell, an acute problem developed for UK life assurance companies.
Regulatory requirements for solvency required them to sell equities and buy
bonds. The more prices fell, the more they had to sell, creating a downward
spiral. The selling only stopped when the dividend yield on shares fell to the
level of the gilt yield, where it remains today.

The Company has a significant structural gearing position through its zero
dividend preference shares. To reduce the gearing of the ordinary shares in a
difficult equity market, a substantial cash position has been raised. At the
period end, cash and short dated gilts amount to 31% of the net assets and cover
57% of the redemption value of the zero dividend preference shares. Despite the
underlying equity portfolio outperforming the FTSE All-Share Index by 5% in
capital terms and the reduction in your Company's gearing, the net asset value
total return of the income ordinary shares (including the reinvestment of net
dividends) was minus 20.7%. This compares with a fall in total return of 15.5%
for the FTSE All-Share Index.

The earnings per income ordinary share amounted to 4.7p over the first half of
the year, a similar amount to last year. As indicated when I wrote to you in
April, the Board has increased the quarterly dividend to 2.4p, a rise of 14%
over last year's distribution.

The current market is, in a way, the exact opposite of the late stages of the
technology and internet bubble. Three years ago there was boundless optimism
amongst investors, whereas now there is nothing but fear and pessimism about the
future. As before it is difficult to gauge exactly when the mood will change.
The failure of economies to respond to the monetary easing by central banks has
forced investors to contemplate the prospect of deflation and parallels with
Japan have been drawn.











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                   HENDERSON GEARED INCOME & GROWTH TRUST PLC

        Unaudited Interim Results for the half year ended 31 August 2002

Although inflation is low, it is unlikely to fall further as there are still
inflationary forces at play in the UK, such as increases in public sector pay
and a loose government fiscal policy. The economy is not in recession but is
experiencing a low level of growth which is making it difficult for companies to
plan for investment or to grow profits. Low stock prices are reflecting and
anticipating bad news, creating valuations which offer good value both relative
to gilts and, more recently, in absolute terms. A positive swing in sentiment is
now required to make investors aware of the future value presented by today's
share prices.

Plans still remain on course to provide shareholders with a rollover option or a
cash alternative when the Company reaches the end of its life, next March. We
will be in touch with you in good time to present our plans in greater detail.



For further information, please contact:



Alex Crooke
Henderson Geared Income & Growth Trust plc
Telephone: 020 7818 4447



Stephen Westwood
Head of Investment Trusts, Henderson Global Investors
Telephone: 020 7818 5517



Stephen Phillips
Investor Relations Manager, Henderson Global Investors
Telephone: 020 7818 6417



Mark Vickery
Henderson Press Office, Henderson Global Investors
Telephone: 020 7818 4222






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                   HENDERSON GEARED INCOME & GROWTH TRUST PLC

        Unaudited Interim Results for the half year ended 31 August 2002

Statement of Total Return (incorporating the revenue account)
for the half year ended 31 August 2002


                                                                                                                      
                                  (Unaudited)                     (Unaudited)                      (Audited) 
                               Half Year ended                  Half Year ended                   Year ended  
                               31 August 2002                   31 August 2001                  28 February 2001 
                        Revenue    Capital      Total      Revenue   Capital     Total    Revenue   Capital     Total 
                          £'000      £'000      £'000        £'000     £'000     £'000      £'000     £'000     £'000 

  Total                       -    (6,351)    (6,351)            -   (1,968)   (1,968)          -   (4,966)   (4,966) 
  capital                                                                                                             
  losses from                                                                                                         
  investments                                                                                                         

  Income from             1,101          -      1,101        1,220         -     1,220      2,013         -     2,013 
  fixed asset                                                                                                         
  investments                                                                                                         

  Other                     212          -        212           43         -        43        154         -       154 
  interest                                                                                                            
  receivable                                                                                                          
  and similar                                                                                                         
  income                                                                                                              
                      ---------   ---------  ---------    --------   --------  --------  --------   --------  --------
                                                                                                                      
  Gross                   1,313    (6,351)    (5,038)        1,263   (1,968)     (705)      2,167   (4,966)   (2,799) 
  revenue and                                                                                                         
  capital                                                                                                             
  losses                                                                                                              

  Management               (68)      (203)      (271)         (70)     (209)     (279)      (136)     (409)     (545) 
  fee (note 1)                                                                                                          
                                                                                                                 
  Other                    (21)       (62)       (83)         (16)      (46)      (62)       (28)      (83)     (111) 
  administrative                                                                                                        
  expenses                                                                                                         
  (note 1)                                                                                                            
                      ---------   ---------  ---------    --------   --------  --------  --------   --------  --------
                                                                                                                      
  Net                     1,224    (6,616)    (5,392)        1,177   (2,223)   (1,046)      2,003   (5,458)   (3,455) 
  return/(loss)                                                                                                        
  on                                                                                                               
  ordinary                                                                                                            
  activities                                                                                                          
  before                                                                                                              
  taxation                                                                                                            

  Taxation on              (59)         59          -         (15)        15         -       (45)        45         - 
  net return                                                                                                          
  on ordinary                                                                                                         
  activities                                                                                                          
                      ---------   ---------  ---------    --------   --------  --------  --------   --------  --------
                                                                                                                      
  Net                     1,165    (6,557)    (5,392)        1,162   (2,208)   (1,046)      1,958   (5,413)   (3,455) 
  return/(loss)                                                                                                        
  on                                                                                                                
  ordinary                                                                                                            
  activities                                                                                                          
  after                                                                                                               
  taxation                                                                                                            

  Capital                                                                                                             
  gains                                                                                                               
  attributable                                                                                                        
  to                                                                                                                  
  zero                        -    (1,226)    (1,226)            -   (1,120)   (1,120)          -   (2,273)   (2,273) 
  dividend                                                                                                            
  preference                                                                                                          
  shares                                                                                                              
                       --------   --------   --------     --------   --------  --------  --------   --------  --------
                                                                                                                      
  Net                     1,165    (7,783)    (6,618)        1,162   (3,328)   (2,166)      1,958   (7,686)   (5,728) 
  return/(loss)                                                                                                        
  attributable                                                                                                        
  to income                                                                                                           
  ordinary                                                                                                            
  shares                                                                                                              
 
  Dividends                                                                                                           
  First                   (594)          -      (594)        (519)         -     (519)      (519)         -     (519) 
  interim of                                                                                                          
  2.4p                                                                                                                
  (2001:2.1p)                                                                                                         

  Second interim of 2.4p   (593)         -      (593)        (519)         -     (519)      (519)         -     (519) 
  (2001:2.1p)                                                                                                         

  Third                       -          -          -            -         -         -      (520)         -     (520) 
  interim -                                                                                                           
  (2001:                                                                                                              
  2.1p)                                                                                                               

  Fourth                      -          -          -            -         -         -      (520)         -     (520) 
  interim -                                                                                                           
  (2001:                                                                                                              
  2.1p)                                                                                                               
                       --------   --------   --------     --------   --------  --------  --------   --------  --------
                                                                                                                      
                        (1,187)          -    (1,187)      (1,038)         -   (1,038)    (2,078)         -   (2,078) 
                       --------   --------   --------     --------   --------  --------  --------   --------  --------
                                                                                                                      
  Transfer                 (22)    (7,783)    (7,805)          124   (3,328)   (3,204)      (120)   (7,686)   (7,806) 
  (from)/to                                                                                                           
  reserves                                                                                                            
                          =====      =====      =====        =====     =====     =====      =====     =====     ===== 
  Return/(loss)                                                                                                        
  per (note 2)                                                                                                         
  
  Zero                        -      8.81p      8.81p            -     8.05p     8.05p          -    16.33p    16.33p 
  dividend                                                                                                            
  preference                                                                                                          
  share                                                                                                               

  Income                  4.71p   (31.46)p   (26.75)p        4.70p   (13.45)p  (8.75)p      7.91p   (31.06)p  (23.15)p
  ordinary                                                                                                            
  share                                                                                                               
                          =====      =====      =====        =====     =====     =====      =====     =====     ===== 



The revenue columns of this statement represent the revenue accounts of the
Company.







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                   HENDERSON GEARED INCOME & GROWTH TRUST PLC

        Unaudited Interim Results for the half year ended 31 August 2002

                                 Balance Sheet

at 31 August 2002
                                                          (Unaudited)             (Unaudited)             (Audited)
                                                       31 August 2002               31 August      28 February 2002
                                                                £'000                    2001                 £'000
                                                                                        £'000

Fixed asset investments                                        46,757                  61,859                53,000
                                                         ------------            ------------          ------------
Current assets
Debtors                                                           537                     615                   727
Bank balances and short term deposits                           6,231                   1,288                 6,301
                                                         ------------            ------------          ------------
                                                                6,768                   1,903                 7,028
Creditors: amounts falling due within                           (640)                   (849)                 (564)
one year
                                                         ------------            ------------          ------------
Net current assets                                              6,128                   1,054                 6,464
                                                         ------------            ------------          ------------

Total net assets                                               52,885                  62,913                59,464
                                                              =======                 =======               =======
Capital and reserves
Called-up share capital                                        16,391                  16,391                16,391
Share premium account                                          20,526                  20,526                20,526
Redemption reserve                                             13,527                  11,148                12,301
Other capital reserves                                          1,852                  13,993                 9,635
Revenue reserve                                                   589                     855                   611
                                                         ------------            ------------          ------------
Total shareholders' funds                                      52,885                  62,913                59,464
                                                              =======                 =======               =======

Attributable to:
Zero dividend preference shares                                27,444                  25,065                26,218
Income ordinary shares                                         25,441                  37,848                33,246
                                                         ------------             -----------           -----------
                                                               52,885                  62,913                59,464
                                                              =======                 =======               =======

Net asset value per (note 3)
Zero dividend preference share                                 197.2p                  180.1p                188.4p
Income ordinary share                                          102.8p                  153.0p                134.4p






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                   HENDERSON GEARED INCOME & GROWTH TRUST PLC

        Unaudited Interim Results for the half year ended 31 August 2002

                              Cash Flow Statement

for the half year ended 31 August 2002
                                                          (Unaudited)             (Unaudited)             (Audited)
                                                      Half Year ended         Half Year ended            Year ended
                                                       31 August 2002          31 August 2001      28 February 2002
                                                                £'000                   £'000                 £'000

Net cash inflow from operating activities                         604                     944                 1,628

Total tax recovered                                                 -                       3                     7

Net cash inflow/(outflow) from purchases
and sales of investments                                          440                 (1,714)                 3,650

Equity dividends paid                                         (1,114)                 (1,014)               (2,053)

Cash (placed on)/withdrawn from short
term deposit                                                  (2,000)                     732               (1,980)
                                                           ----------              ----------            ----------
(Decrease)/increase in cash                                   (2,070)                 (1,049)                 1,252
                                                               ======                  ======                ======


Reconciliation of operating revenue to net cash inflow from operating activities

Net revenue before interest payable
and taxation                                                    1,224                   1,177                 2,003

(Increase)/decrease in accrued income                           (248)                      37                   133

(Increase)/decrease in other debtors                              (5)                     (1)                     3

Increase/(decrease) in creditors                                    3                       -                   (8)

Management charge taken to other
capital reserves                                                (203)                   (209)                 (409)

Other expenses charged to capital                                (62)                    (46)                  (83)

UK income tax deducted at source                                    -                     (6)                   (3)

Scrip dividends included in
investment income                                               (105)                     (8)                   (8)
                                                             --------                --------              --------
Net cash inflow from operating activities                         604                     944                 1,628
                                                                =====                   =====                 =====



Reconciliation of net cash inflow to movement in net funds

(Decrease)/increase in cash as above                          (2,070)                 (1,049)                 1,252

Cash outflow/(inflow) from short term deposits                  2,000                   (732)                 1,980
                                                             --------                --------             ---------
Change in net funds resulting from
cash flows                                                       (70)                 (1,781)                 3,232

Net funds at beginning of the period                            6,301                   3,069                 3,069
                                                             --------                --------              --------
Net funds at the end of the period                              6,231                   1,288                 6,301
                                                                =====                   =====                 =====

Represented by:
Cash at bank and short term deposits                            6,231                   1,288                 6,301
                                                                =====                   =====                 =====








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                   HENDERSON GEARED INCOME & GROWTH TRUST PLC

        Unaudited Interim Results for the half year ended 31 August 2002

Notes

1.     Expenses charged to capital

       One quarter of all administrative expenses including the management fee is charged to the revenue account and the
       remainder is charged to other capital reserves, net of any tax relief and inclusive of related irrecoverable VAT.

2.     Return/(loss) per share

       Return per zero dividend preference share reflects the predetermined growth in capital entitlement for the half
       year ended 31 August 2002 of £1,226,000 (half year ended 31 August 2001: £1,120,000; year ended 28 February 2002:
       £2,273,000) and is based on 13,916,531 zero dividend preference shares being the weighted average number of zero
       dividend preference shares in issue for the period (half year ended 31 August 2001 and year ended 28 February
       2002: 13,916,531).

       Revenue return per income ordinary share is based on the net revenue on ordinary activities after taxation of
       £1,165,000 (half year ended 31 August 2001: £1,162,000; year ended 28 February 2002: £1,958,000) and on
       24,740,500 income ordinary shares being the weighted average number of income ordinary shares in issue for the
       period (half year ended 31 August 2001 and year ended 28 February 2002: 24,740,500).

       Capital loss per income ordinary share is based on net capital losses, after deduction of the zero dividend
       preference share capital entitlement, of £7,783,000 (half year ended 31 August 2001: capital loss of £3,328,000;
       year ended 28 February 2002: capital loss of £7,686,000) and on the weighted average number of income ordinary
       shares as above.

3.     Net asset value per share

       The net asset value per zero dividend preference share is based on the net assets attributable to the zero
       dividend preference shares of £27,444,000 (31 August 2001: £25,065,000; 28 February 2002: £26,218,000) and on
       13,916,531 zero dividend preference shares being the number of zero dividend preference shares in issue at the
       end of the period (31 August 2001 and 28 February 2002: 13,916,531).

       The net asset value per income ordinary share is based on the net assets attributable to the income ordinary
       shares of £25,441,000 (31 August 2001: £37,848,000; 28 February 2002: £33,246,000) and on 24,740,500 income
       ordinary shares being the number of income ordinary shares in issue at the end of the period (31 August 2001 and
       28 February 2002: 24,740,500).

4.     Accounting Policy

       The accounts have been prepared on a going concern basis which equates to a realisation basis except for the
       valuation of investments. Investments have been valued at the mid-market prices, which, in the Directors'
       opinion, is the most appropriate valuation for the investment portfolio, given that it is not possible to predict
       the portfolio on liquidation nor the realisation values thereon. No accrual has been made for liquidation and
       associated expenses.

5.     Year ended 28 February 2002

       The figures and financial information for the year ended 28 February 2002 are extracted from the latest published
       accounts of the Company and do not constitute the statutory accounts for that year. Those accounts have been
       delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not
       contain a statement under either section 237(2) or 237(3) of the Companies Act 1985.



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                   HENDERSON GEARED INCOME & GROWTH TRUST PLC

        Unaudited Interim Results for the half year ended 31 August 2002

6.     Second Interim Dividend

       A second interim dividend of 2.4p (2001: 2.1p) per income ordinary share has been declared payable on 22 November
       2002 to shareholders registered on 25 October 2002. The shares will be quoted ex-dividend on 23 October 2002.

7.     Interim Report

       The Interim Report will be posted to shareholders in October and will be available from the Registered Office at
       4 Broadgate, London EC2M 2DA thereafter.







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                   HENDERSON GEARED INCOME & GROWTH TRUST PLC

        Unaudited Interim Results for the half year ended 31 August 2002

The 30 largest investments (convertibles and all classes of equity in any one
company being treated as one investment) were as follows:


                                              Market Value                                                  Market Value
                                            31 August 2002                                                31 August 2002
                                                     £'000                                                         £'000

UK Treasury 8% 10/06/03                             10,320     Allied Domecq                                         540
BP                                                   2,252     HSBC                                                  515
GlaxoSmithKline                                      2,186     British Telecommunications                            500
Vodafone                                             1,578     Prudential                                            458
Lloyds TSB                                           1,537     BSKYB                                                 445
Shell Transport & Trading                            1,474     Rexam                                                 424
HBOS                                                 1,400     Tesco                                                 402
Royal Bank of Scotland                               1,245     Smith & Nephew                                        401
Barclays                                             1,090     Land Securities                                       399
Reckitt Benckiser                                      878     Abbey National                                        386
Alliance & Leicester                                   871     Hammerson                                             385
Aviva                                                  831     Amec                                                  382
British American Tobacco                               676     AstraZeneca                                           364
Diageo                                                 630     Homestyle Group                                       360
Gallaher                                               568     GKN                                                   344


These investments total £33,841,000 or 72.4% of the portfolio.







                                    - ENDS-




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