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Welsh Indl.Inv.Tst (WII)

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Monday 19 July, 2004

Welsh Indl.Inv.Tst

Final Results

Welsh Industrial Inv Trust PLC
19 July 2004


                      WELSH INDUSTRIAL INVESTMENT TRUST plc

                         36 Elder Street, London E1 6BT

               Telephone: 020 7588 7352, Facsimile 020 7377 2946

                              CHAIRMAN'S STATEMENT

The revenue profit before taxation for the year ended 5th April, 2004 was
£98,883 against £85,099. Dividend and interest income was £161,303 (2003:
£178,685), whilst share trading activities produced a profit of £21,401 (2003:
loss £17,156). Expenses amounted to £83,821 against £76,430 in the previous
year. Once again the tax charge was nil and, after the preference dividend
payment, the profit attributable to ordinary shareholders was £94,945 or 7.03p
per share (2003: £81,161 or 6.01p).

The Net Asset Value per share rose during the year by 20.2% to 404.72p against
an increase in the FT All Share Index of 22.7%. Of our larger holdings, Morgan
Sindall and Image Scan improved during the year by 132% and 23% respectively,
whilst Transense Technologies, which slipped last year, has rebounded with a
rise of 126%. With regard to Molins Plc, the value of this holding has fallen
substantially since the year end and I would draw your attention to note 4 of
these financial statements which has been included in view of the significant
size of this holding. This fall in value has been due to shock profit warnings
issued by that company since our year end.

Although this has not been a vintage year, the ten year record is still
creditable. Our NAV has improved over this period by 99.75% against a rise in
the FT All Share Index of 42.4%. We continue to hunt for growth opportunities
among quoted and unquoted investments.

The Board propose to maintain the ordinary dividend at 6.3p per share.



A P Stirling
19th July, 2004


                    WELSH INDUSTRIAL INVESTMENT TRUST plc
                          PRELIMINARY FINAL STATEMENT

                     CONSOLIDATED STATEMENT OF TOTAL RETURN
                      For the year ended 5 th April, 2004

                                    2004                                 2003

                       Revenue   Capital       Total     Revenue    Capital          Total
                             £         £           £           £            £            £

Gains/(losses)
on investments               -   908,543     908,543           -   (1,440,676)  (1,440,676)

Income:
Dividend and
interest
income                 132,186         -     132,186     148,810            -      148,810
Other UK
investment
income                  29,117         -      29,117      29,875            -       29,875
Other
operating
income                  21,401         -      21,401     (17,156)           -      (17,156)
                          ------   -------     -------     -------      -------     --------
                       182,704   908,543   1,091,247     161,529   (1,440,676)  (1,279,147)

Other expenses         (83,821)        -     (83,821)    (76,430)           -      (76,430)
                          ------   -------     -------     -------      -------     --------

Return on
ordinary
activities
before
taxation                98,883   908,543   1,007,426      85,099   (1,440,676)  (1,355,577)

Taxation                     -         -           -           -            -            -
                          ------   -------     -------     -------      -------     --------

Return on
ordinary
activities
after taxation          98,883   908,543   1,007,426      85,099   (1,440,676)  (1,355,577)

Dividends in
respect of
non-equity
shares                  (3,938)        -      (3,938)     (3,938)           -       (3,938)
                          ------   -------     -------     -------      -------     --------
Return on ordinary
activities
attributable
to equity
shareholders            94,945   908,543   1,003,488      81,161    (1,440,676)  (1,359,515)

Dividends in
respect of
equity shares          (85,050)        -     (85,050)    (85,050)           -      (85,050)
                          ------   -------     -------     -------      -------     --------
Transfer
to/(from)
reserves                 9,895   908,543     918,438      (3,889)   (1,440,676)  (1,444,565)
                          ======   =======     =======     =======      =======     ========

Basic return
per Ordinary
Share                     7.03p    67.30p      74.33p       6.01p    (106.71) p      (100.7)p
                          ======   =======     =======     =======      =======     ========

Notes:
(i)   The revenue column of this statement is the consolidated profit and loss
      account of the group.
(ii)  All revenue and capital items in the above statement derive from continuing
      operations.
(iii) Dividends - Ordinary shares:
      - proposed final dividend of 6.3p per share (2003: 6.3p) payable on 3rd
      September, 2004 to shareholders on the register at 6th August, 2004 
      £85,050 (2003: £85,050)
(iv)  The summary of results for the year ended 5th April, 2004 does not
      constitute statutory accounts within the meaning of s240 of the Companies
      Act 1985. The full statutory accounts which will be available to 
      shareholders by 23rd July, 2004 have not been reported on by the Company's 
      auditors and have not been delivered to the Registrar of Companies. Full 
      accounts in respect of the year ended 5th April, 2003 have been delivered
      to the Registrar of Companies and the Auditor's Report on those accounts
      was unqualified.
(v)   Basic revenue and capital returns per ordinary share are based on the 
      return on ordinary activities attributable to equity shareholders of 
      £94,945 (2003: £81,161) and on the net capital return of £908,543 (2003: 
      £(1,440,676) ) respectively and on 1,350,000 (2003: 1,350,000) ordinary 
      shares being the number in issue during the year.



                     WELSH INDUSTRIAL INVESTMENT TRUST plc
                          PRELIMINARY FINAL STATEMENT

                           CONSOLIDATED BALANCE SHEET
                             As at 5th April, 2004
                                                             2004                       2003
                                                                £                          £
Investments
            Securities                                  5,486,010                  4,614,387
                                                          -------                    -------
                                                        5,486,010                  4,614,387
                                                          -------                    -------

Current assets                                            139,147                    113,272

Creditors   amounts falling
due within one year                                       116,477                    137,417
                                                          -------                    -------
Net current
assets/(liabilities)                                       22,670                    (24,145)
                                                          -------                    -------
                                                          -------                    -------
Total assets less current liabilities                   5,508,680                  4,590,242
                                                          =======                    =======

Capital and reserves
Called up share capital                                   112,500                    112,500
Other reserves
            Capital reserve - realised                  4,570,270                  4,742,885            
            Capital reserve - unrealised                  663,341                   (417,817)

            
Revenue reserves                                          162,569                    152,674
                                                          -------                    -------
Total shareholders'funds                                5,508,680                  4,590,242
                                                          =======                    =======

Total shareholder funds are attributable to:

Equity shareholders                                     5,463,680                  4,545,242
Non-equity shareholders                                    45,000                     45,000
                                                          -------                    -------
                                                        5,508,680                  4,590,242
                                                          =======                    =======

Net Asset Value per ordinary share                        404.72p                    336.68p
                                                          =======                    =======

Notes

Net asset value per ordinary share is based upon the net assets attributable to
ordinary shares of £5,463,680 (2003: £4,545,242) and 1,350,000 (2003: 1,350,000)
ordinary shares being the number of ordinary shares in issue at the year-end.






                     WELSH INDUSTRIAL INVESTMENT TRUST plc
                          PRELIMINARY FINAL STATEMENT

                        CONSOLIDATED CASH FLOW STATEMENT
                       For the year ended 5th April, 2004

                                                            2004             2003
                                              Notes            £                £
Cashflow from operating activities
Investment income received                               156,392          175,292
Interest received                                          4,911            3,393
Share dealing profit/(loss)                               17,245           (8,047)
Other income                                               2,500                -
Other cash payments                                      (47,288)        (126,602)
                                                        --------         --------
Net cash inflow from
operating activities                              1      133,760           44,036
                                                        ========         ========

Returns on investment and servicing of finance
Preference dividends paid                                 (3,938)          (3,938)
                                                         --------         --------
                                                          (3,938)          (3,938)
                                                         ========         ========

Corporation tax paid                                           -                -
                                                         ========         ========

Capital expenditure and financial investment
Purchase of investments                                 (597,738)        (706,288)
Sales of investments                                     634,658          661,317
                                                        --------         --------
                                                          36,920          (44,971)
                                                        ========         ========

Equity dividends paid                                    (84,526)         (66,504)
                                                        ========         ========

Cash inflow/(outflow) before management of
liquid resources and financing                            82,216          (71,377)
                                                        ========         ========
Management of liquid resources
Purchase of listed securities
held for dealing                                         (10,796)         (88,565)
Sale of listed securities
held for dealing                                           9,892          126,336
                                                       ---------         --------
Cash (outflow)/inflow from
management of liquid                                        (904)          37,771
                                                       =========         ========

Increase/(decrease) in cash                       3       81,312          (33,606)
                                                       =========         ========









                     WELSH INDUSTRIAL INVESTMENT TRUST plc
                          PRELIMINARY FINAL STATEMENT



                RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
                             As at 5th April, 2004

                                                                     2004                 2003
                                                                        £                    £
Attributable to equity shareholders

Profit for the financial year                                      98,883               85,099
Dividends                                                         (88,988)             (88,988)
                                                                 --------            ---------
Retained profit/(loss)
for the financial year                                              9,895               (3,889)

Net movement on capital reserves                                  908,543           (1,440,676)
                                                                 --------            ---------
                                                                  918,438           (1,444,565)

Opening funds                                                   4,545,242            5,989,807
                                                                 --------            ---------
Closing funds                                                   5,463,680            4,545,242
                                                                 ========            =========

Attributable to non-equity shareholders

Opening and closing funds                                          45,000               45,000
                                                                 --------            ---------
Total shareholders'
funds at 5th April                                              5,508,680            4,590,242
                                                                 ========            =========


                     WELSH INDUSTRIAL INVESTMENT TRUST plc
                          PRELIMINARY FINAL STATEMENT

                       NOTES TO THE FINANCIAL STATEMENTS
                       for the year ended 5th April, 2004

1. Reconciliation of operating profit to operating cash flows

                                                        2004                       2003
                                                           £                          £

Profit on ordinary activities before
taxation                                              98,883                     85,099
Movement in provisions during the
year against
listed securities held for dealing                    (1,656)                     9,109
Decrease/(increase) in debtors                        57,997                    (61,072)
(Decrease)/increase in creditors                     (21,464)                    10,900
                                                    --------                    -------
Net cash flow from operating activities              133,760                     44,036
                                                     =======                    =======

2. Reconciliation of cash flow to movement in net funds

Increase/(decrease) in cash for the year               81,312                  (33,606)
Cash inflow/(outflow) from movement in                    904                  (37,771)
liquid resources
                                                     --------                 --------
Change in net funds resulting from cash flows          82,216                  (71,377)

Movement in provisions during the year against
listed securities held for dealing                      1,656                 (9,109)
                                                     --------                 --------
Movement in net funds during the year                  83,872                  (80,486)
Net funds at start of year                             51,480                  131,966
                                                     --------                 --------
Net funds at end of year                              135,352                   51,480
                                                     ========                 ========

3. Analysis of net funds

                                                      Non-cash
                        2003         Cashflow          changes           2004

                           £                £                £              £

Cash at bank          43,245           81,312                -        124,557
Liquid reserves        8,235              904            1,656         10,795
                     -------          -------          -------       --------
                      51,480           82,216            1,656        135,352
                     =======          =======          =======       ========

4. Post Balance Sheet Event

Since 5th April, 2004 Molins Plc has issued profit warnings and the share price
has fallen sharply. At 5th April the mid market valuation of this holding was
£1,250,000 and at 5th July the mid market valuation was £630,000. In accordance
with Statement of Standard Accounting Practice 17, this reduction in market
value is of such significance as to warrant separate disclosure, but has not
been reflected in the investment valuation shown in the financial statements.




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