Interim Results

30 September 2002 EDINBURGH HIGH ZEROS 2005 PLC INTERIM RESULTS FOR THE 6 MONTHS TO 31 AUGUST 2002 The objective of Edinburgh High Zeros 2005 plc is to provide holders of the listed zero dividend preference shares with a pre-determined capital entitlement in February 2005. For further information please contact: Alex Gowans, Director, Edinburgh High Zeros Trust plc and Edinburgh Fund Managers plc, 0131 313 1000 David Binnie, Investment Manager, Edinburgh Fund Managers plc, 0131 313 1000 EDINBURGH HIGH ZEROS 2005 PLC Chairman's Statement Edinburgh High Zeros 2005 and its holding company Edinburgh High Income Trust (EHIT) were incorporated on 15 October 1999. The group's objectives are to provide the ordinary shareholders of EHIT with a high level of income, together with the opportunity for capital and income growth and holders of the zero dividend preference shares of Edinburgh High Zeros 2005 with a pre-determined capital entitlement in 2005. The zero dividend preference shares offer shareholders the prospect of capital growth which was equivalent to 8.3% per annum at the original issue price of 100p, but no right to income. This rate of capital growth means that the repayment value of a zero dividend preference share should eventually reach 151.75p on 28 February 2005. The initial assets of the group at launch were £69.1m before issue expenses. On 8 December 1999, substantially all of the company's assets were transferred to EHIT, leaving a few small holdings in gilts and a loan note from EHIT with a value of £17.4m. In addition, EHIT has entered into a Subscription Agreement with the company, whereby EHIT will subscribe for such number of ordinary shares in the company to enable it to satisfy the final capital entitlement of the zero dividend preference shares on 28 February 2005. The performance of the investment portfolio held by EHIT is outlined in the chairman's statement. As a result of market movements during the period under review, the cover for the zero dividend preference shares is shown below: 31 August 2002 28 February 2002 Net asset value per ZDP share 121.9p 116.7p ZDP share price 121.8p 186.5p Group's net assets £46.94m £52.67m Full capital entitlement of ZDP shares £26.65m £26.65m Cover (before charges) times 1.76 1.98 PROFIT AND LOSS ACCOUNT (unaudited) Six months Year to Six months to 28 February to 31 August 2002 £'000 31 August 2002 £'000 2001 £'000 Investment income 2 3 2 Administrative expenses (9) (13) (11) LOSS ON ORDINARY ACTIVITES (7) (10) (9) BEFORE TAXATION Taxation - - - LOSS ON ORDINARY ACTIVITIES (7) (10) (9) AFTER TAXATION NON EQUITY APPROPRIATIONS (869) (1,623) (802) RETAINED LOSS FOR THE PERIOD (876) (1,633) (811) EARNINGS PER ORDINARY SHARE (24.13p) (70.01p) (42.39p) STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited) Six Year to Six months months to 28 February to 31 2002 £'000 31 August August 2001 2002 £'000 £'000 Unrealised gain on investments 1 (1) (1) Capital gain for the period 1 (1) (1) Revenue losses for the period (876) (1,633) (811) Total recognized losses (875) (1,634) (812) BALANCE SHEET (unaudited) At 31 August At 28 At 31 August 2002 February 2001 £'000 2002 £'000 £'000 FIXED ASSETS Investments 52 52 52 CURRENT ASSETS Cash at bank 2 - - Debtors - amounts due within one 21,956 21,030 20,159 year 21,958 21,030 20,159 CREDITORS: Amounts falling due 58 48 46 within one year NET CURRENT ASSETS 21,900 20,982 20,113 21,952 21,034 20,165 CAPITAL AND RESERVES Called up share capital 4,554 3,630 2,760 Share premium account 17,469 17,469 17,469 Non-distributable capital (37) (38) (38) reserve Profit and loss accounts (34) (27) (26) 21,952 21,034 20,165 Shareholders' funds: - Equity 173 124 76 - Non-equity 21,779 20,910 20,089 21,952 21,034 20,165 Adjusted net asset value per non- 121.93p 116.67p 111.71p equity share CASHFLOW STATEMENT (unaudited) Six months to Six months to Year to 28 31 August 2002 31 August February 2002 £'000 2001 £'000 £'000 Loss on ordinary activities (7) (9) (10) Increase in accrued income (1) - (1) Increase in creditors 10 9 11 Net cash inflow from 2 - - operating activities Increase in cash 2 1 - Notes: 1. The statement of total return, balance sheet and cashflow statement set out above do not represent full accounts in accordance with Section 240 of the Companies Act 1985. The accounts have been prepared in accordance with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies'. The same accounting policies have been applied in preparing the accounts throughout the period 2. The interim report will be posted to shareholders on 10 October 2002 and copies will be available at the head office of the Secretary - Edinburgh Fund Managers plc, Donaldson House, 97 Haymarket Terrace, Edinburgh EH12 5HD. 3. There will be no interim dividend payable. Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise. Investors may not get back the amount they originally invested for Edinburgh High Zeros 2005 plc, Edinburgh Fund Managers plc, SECRETARY END ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/09/27/20020927BIT00670/wkr0001.doc http://www.waymaker.net/bitonline/2002/09/27/20020927BIT00670/wkr0002.pdf