Final Results

RNS Number:2279R
Progressive Geared Income Trust PLC
23 October 2003


Progressive Geared Income Trust Plc

Announcement of Preliminary Results for the year ended 30 June 2003


CHAIRMAN'S STATEMENT


The year under review has been a difficult one for your Company.  It has
continued to suffer from the well publicised problems affecting the investment
trust split capital sector, although such investments have not formed the
majority of our holdings.


Equity markets are now, however, in a somewhat stronger position than when I
wrote to you at the time of the Company's Interim Report. The difficult first
half of the financial year continued into early 2003 with uncertainty
surrounding the outcome of the situation in the Middle East contributing to the
overall lack of market confidence. In the final quarter of the Company's
reporting period some optimism and stability returned and this, in turn, was
translated into gains in the principal UK stock market indices.


As I reported at the interim stage, dividends in several of the Company's
holdings in split capital investments trusts have been cut. Furthermore, some
have had their Stock Exchange listings suspended and, in such cases, it is
unlikely that the Company will recover much, if any, value from these
investments. In many cases, these and other companies have been forced into
liquidation occasioned by their high level of borrowings.


The fixed interest portion of the portfolio is dominated by convertible
preference shares.  To some extent it was adversely affected by the rise in
long-term interest rates and by weak equity markets.  Nevertheless, this
portfolio has remained relatively stable and has provided a high level of
income.  Since the end of the first quarter of 2003, it has benefited from the
rally in equities.


Following the repayment of the Company's bank loan in the first half of 2002,
assumed when the Company launched, the Company has retained an ungeared
structure throughout the period under review. My Board colleagues and I believe
that the decision to repay the bank at that time has proved to be a correct and
prudent one.



The Company's net asset value per share at the end of the period under review
was 14.00p, having strengthened slightly from 13.91p at 31 December 2002.


Three interim dividends, in aggregate totalling 1.3p per share were declared and
paid during the year under review. Your Board recommends that a final dividend
of 0.3p be paid. If approved at the Company's Annual General Meeting on 25
November 2003, this will be paid to shareholders on the register on 8 August
2003. It is the Board's present intention to continue to distribute by way of
dividend as much as it can prudently afford.



During the period, your Board felt that it was appropriate in the  circumstances
facing the markets in which it was invested, to give protective notice to both
its fund manager, Progressive Income Products Limited, and its secretary and
administrator, Cavendish Administration Limited. The effect of this is to
terminate their formal contracts from 28 November 2003 and 6 November 2003
respectively. Both entities, however, have agreed to provide their services on a
three month basis from these dates. Furthermore, on 1 July 2003, Hugh Everitt,
who was the individual manager from the inception of the Company, left
Progressive and has been replaced by James Carthew.


As mentioned previously,  following the difficult trading conditions of the last
two and half years and the further reduction in the size of the Company's
portfolio occasioned by the repayment of its bank loan, your Board has continued
actively to explore opportunities to take the Company forward. To date these
have not proved suitable to put before shareholders.  Your Board continues to
investigate a number of situations.  Our aim is to provide a financially more
advantageous solution than a liquidation, the costs of which would inevitably be
significant. It is the intention of your Board to advise shareholders of any
situation which might prove beneficial to them.


A number of the Company's holdings in the split capital area of the market are
illiquid.  Your Board has instructed the Manager to eliminate small problem
holdings wherever possible and to increase liquidity within the portfolio.  The
Board has valued securities in the Company's portfolio by reference to their bid
market prices as at the close on 30 June 2003.


Lastly, your Board notes the publication of the Investment Entities (Listing
Rules and Conduct of Business) Instrument 2003, following consultation paper
CP164. The investment objective of the Company remains to provide shareholders
with a high level of income together with the potential for capital growth. It
is likely that the Company will have more than 15% of its gross assets invested
in UK listed investment companies.


The Annual General Meeting will be held on 25 November 2003 at 11.00 a.m. at
Crusader House, 145-157 St John Street, London EC1V 4RU.


RP Clinton
22 October 2003







STATEMENT OF TOTAL RETURN
(incorporating the profit and loss account*)
For the year ended 30 June 2003

                                     2003                                2002
                           Revenue   Capital     Total        Revenue     Capital       Total
                             #'000     #'000     #'000          #'000       #'000       #'000

Gains/(losses) on
investments
realised                         -   (7,986)   (7,986)              -     (4,911)     (4,911)
unrealised                       -     4,790     4,790              -    (17,345)    (17,345)
Income                         950         -       950          4,235           -       4,235
Investment management         (32)      (32)      (64)          (206)       (206)       (412)
fee
Other expenses               (142)         -     (142)          (197)           -       (197)
Return on ordinary
activities before
finance costs and
taxation                       776   (3,228)   (2,452)          3,832    (22,462)    (18,630)
Interest payable and
similar charges                  -         -         -        (1,427)     (1,427)     (2,854)
Return on ordinary
activities before
taxation                       776   (3,228)   (2,452)          2,405    (23,889)    (21,484)
Taxation                         -         -         -              -           -           -
Return on ordinary
activities after
taxation                       776   (3,228)   (2,452)          2,405    (23,889)    (21,484)

Ordinary dividends paid
and payable                   (720)         -     (720)        (2,700)           -     (2,700)
Transfer (from) / to            56   (3,228)   (3,172)          (295)    (23,889)    (24,184)
reserves

Return per
ordinary share               1.72p   (7.17)p   (5.45)p          5.34p    (53.08)p    (47.74)p



BALANCE SHEET
At 30 June 2003


                                                                            2003            2002
                                                                           #'000           #'000

FIXED ASSETS
Investments at market value                                                5,682           7,990

CURRENT ASSETS
Income receivable                                                             93             106
Taxation recoverable                                                           -             256
Other debtors                                                                  3              22
Cash at bank and in hand                                                     699           1,505
                                                                             795           1,889

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Purchases for future settlement                                              (6)               -
Accrued liabilities                                                         (35)            (69)
Dividends payable                                                          (135)           (337)
                                                                           (176)           (406)

NET CURRENT ASSETS                                                           619           1,483


TOTAL NET ASSETS                                                           6,301           9,473


CAPITAL AND RESERVES


Share capital                                                              2,250           2,250
Share premium account                                                     41,250          41,250
Realised capital reserve                                                (15,774)         (7,756)
Unrealised capital reserve                                              (21,588)        (26,378)
Revenue reserve                                                              163             107
EQUITY SHAREHOLDERS' FUNDS                                                 6,301           9,473


Net assets per ordinary share                                             14.00p          21.05p




CASH FLOW STATEMENT
For the year ended 30 June 2003





                                                                     2003             2002
                                                                    #'000            #'000

NET CASH INFLOW FROM OPERATING ACTIVITIES                             743            4,606

SERVICING OF FINANCE
Interest and similar charges paid on bank loan                          -          (3,259)

TAXATION
Tax Repayment                                                         256                -

FINANCIAL INVESTMENT
Payments to acquire fixed asset investments                       (5,712)         (28,464)
Receipts on disposal of fixed asset investments                     4,830           60,783
NET CASH FLOW FROM INVESTING ACTIVITIES                             (882)           32,319


EQUITY DIVIDENDS PAID                                               (923)          (3,376)


NET CASH FLOW BEFORE FINANCING                                      (806)           30,290

FINANCING
Bank loan repaid                                                        -         (30,000)

NET CASH FLOW FROM FINANCING                                            -         (30,000)


INCREASE / (DECREASE) IN CASH                                       (806)              290




NOTES

The revenue column on the Statement of Total Return is the profit and loss
account of the Company.


All revenue and capital items in the above statement derive from continuing 
operations.


No operations were acquired or discontinued during the period.



The directors have valued investments at market bid prices as at the close on 30
June 2003.  Investments held at the close of business on 30 June 2002 were
valued at mid market price at that time.





Returns per ordinary share are based on the weighted average of 45,000,000
ordinary shares in issue during the periods ended 30 June 2003 and 2002. Net
assets per ordinary share are based on 45,000,000 ordinary shares in issue at 30
June 2003.





The accounts have been prepared in accordance with the Statement of Recommended
Practice for the Financial Statements of Investment Trust Companies.



Dividend

The final dividend of 0.3p per share will be paid on 28 November 2003.  As
previously announced, this dividend will be payable to shareholders on the
register on 8 August 2003.

Financial information

The financial information set out above does not constitute the Company's
statutory accounts for the periods ended 30 June 2003 or 2002 as defined by
section 240 of the Companies Act 1985.  The financial information for 2002 is
derived from the statutory accounts for 2002, which have been delivered to the
registrar of companies.  The auditors have reported on the 2002 accounts; their
report was unqualified and did not include a statement under Section 237(2) or
(3) of the Companies Act 1985.  The statutory accounts for 2003 will be
finalised on the basis of the financial information presented by the directors
in this preliminary announcement and will be delivered to the registrar of
companies following the company's annual general meeting.





22 October 2003



Secretary and Registered Office:
Cavendish Administration Limited
Crusader House
145 - 157 St John Street
London
EC1V 4RU






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