Interim Results

Interim Results



PREMIER HIGH INCOME TRUST PLC

ANNOUNCEMENT OF UNAUDITED RESULTS

The Directors present their Interim Results (unaudited) for the period from 1
July to 31 December 2004.

Over the period under review, total assets less current liabilities rose from
£
22,066,000 to £22,596,000, an increase of 2.4%.

At the individual share class level, the net asset value per Ordinary share has
risen to 4.20p from 1.94p while the net asset value per Zero Dividend
Preference share has risen to 153.51p from 147.67p, in accordance with the
predetermined entitlement of this share class.

The continuing gentle recovery in equity markets has allowed the assets of your
Company to keep pace with the accrual rate on the Zero Dividend Preference
shares and holders of these shares will receive their full entitlement of
159.44p per share on 30 June 2005 if asset values increase by 0.1% or more by
then. As at 31 December 2004 the Ordinary shareholders will require further
improvements in markets for them to see any return at the end of the Company's
life over and above dividends paid between now and 30 June 2005.

The allocation of the investment portfolio remains in line with previous
reports to shareholders, with 72% in UK equities, 20% in Global Bonds, 3% other
split capital trusts and 5% in cash. The equity portfolio comprises stocks that
are constituents of the FTSE 350 index, with some 68% of the portfolio by value
being invested in companies within the FTSE 100 index, and a further 21%
invested in companies within the FTSE 250 index.

During the period, the performance of the three portfolios within the Company
was as follows;

UK Equity Portfolio +6.60%

FTSE 350 Index +8.30%

Bond portfolio +2.61%

Treasury 8.5% 2005 +2.77%

High yield portfolio +25.60%

Datastream IT Split Cap

Highly Geared Ords Index +17.84%

Opportunities to re-purchase Zero Dividend Preference shares for cancellation
continued to be sought. A further 500,000 Zero Dividend Preference shares were
purchased for cancellation at an average price of 141.4p. Your Board will
continue with share repurchases as and when market conditions allow.

With your Company now in the final six months of its planned life, the Board,
in conjunction with the Investment Manager, will be closely monitoring the rate
at which the portfolio should be moved to a more defensive position. With this
in mind, the Board have instructed the Investment Manager to shorten the
duration of the bond portfolio in line with the planned remaining life of the
Company.

At the time of writing, the equity portfolio consists of stocks that are
readily realisable and this should continue to be the case for the remainder of
the Company's life.

The Directors declared a dividend of 1.35p per Ordinary share in November and a
further dividend of 0.85p will be paid, in February, in respect of the second
quarter, bringing the total for the first half of this financial year to 2.20p.
The Board's intention is to distribute substantially all current income after
expenses in the third quarter and the fourth dividend will, in addition, take
into account any retained revenue balances.

David Hankinson

Chairman

The Directors announce the unaudited statement of results for the period 1 July
2004 to 31 December 2004 as follows:

STATEMENT OF TOTAL RETURN

(*incorporating the revenue account) for the period 1 July 2004 to 31 December
2004

                                     Six months to              Six months to
                                                                             
                                  31 December 2004           31 December 2003
                                                                             
                         Revenue  Capital    Total  Revenue  Capital    Total
                                                                             
                          £'000    £'000    £'000    £'000    £'000   
£'000 
                                                                             
Gains on investments          -    1,639    1,639        -    1,447    1,447 
                                                                             
Foreign exchange              -     (211)    (211)       -      106      106 
(losses)/ gains on                                                           
capital items                                                                
                                                                             
Dividends and interest      547        -      547      611        -      611 
                                                                             
Other income                 65        -       65       19        -       19 
                                                                             
Investment management       (32)     (96)    (128)     (32)     (94)    (126)
fee                                                                          
                                                                             
Other expenses              (87)       -      (87)     (87)       -      (87)
                                                                             
Net return before                                                            
                                                                             
finance costs and           493    1,332    1,825      511    1,459    1,970 
taxation                                                                     
                                                                             
Interest payable and        (40)    (120)    (160)     (31)     (94)    (125)
similar charges                                                              
                                                                             
Return on ordinary                                                           
activities                                                                   
                                                                             
before taxation             453    1,212    1,665      480    1,365    1,845 
                                                                             
Taxation on ordinary        (25)      25        -      (17)      17        - 
activities                                                                   
                                                                             
Return on ordinary                                                           
activities                                                                   
                                                                             
after taxation for the      428    1,237    1,665      463    1,382    1,845 
period                                                                       
                                                                             
Appropriations in                                                            
respect of:                                                                  
                                                                             
- Zero Dividend               -     (903)    (903)       -     (842)    (842)
Preference shares                                                            
                                                                             
Return attributable to      428      334      762      463      540    1,003 
Ordinary shareholders                                                        
                                                                             
Dividends in respect       (428)       -     (428)    (584)       -     (584)
of Ordinary shares                                                           
                                                                             
Transfer to/ (from)           -      334      334     (121)     540      419 
reserves                                                                     
                                                                             
Return per share:          pence    pence    pence    pence    pence    pence
                                                                             
Ordinary                   2.20     1.72     3.92     2.38     2.78     5.16 
                                                                             
Zero Dividend                 -     6.21     6.21        -     5.72     5.72 
Preference                                                                   
                                                                             

The revenue column of this statement is the revenue account of the Company.

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

These accounts are unaudited and are not the Company's statutory accounts.

SUMMARISED BALANCE SHEET

                                              As at      As at          As at
                                                                             
                                        31 December    30 June    31 December
                                                                             
                                               2004       2004           2003
                                                                             
                                              £'000      £'000         £'000

                                                                             
Investments                                 26,734     26,214         26,769 
                                                                             
Net current liabilities                     (4,138)    (4,148)        (4,883)
                                                                             
Total assets less current                   22,596     22,066         21,886 
liabilities*                                                                 
                                                                             
Net asset value per share:                                                   
                                                                             
Ordinary                                      4.20p      1.94p          5.83p
                                                                             
Zero Dividend Preference                    153.51p    147.67p        142.11p
                                                                             
*Total assets less current liabilities at 31 December 2004 and 30 June 2004  
include retained revenue of £88,000.                                         

SUMMARISED STATEMENT OF CASHFLOWS                                            
                                                                             
for the six months ended 31 December 2004                                    
                                                                             
                                              Six months to     Six months to
                                                                             
                                           31 December 2004  31 December 2003
                                                                             
                                                     £'000             £'000 
                                                                             
Net cash inflow from operating activities              356               418 
                                                                             
Servicing of finance                                                         
                                                                             
Interest paid                                         (162)             (125)
                                                                             
Net cash outflow from servicing of                    (162)             (125)
finance                                                                      
                                                                             
Capital expenditure and financial                                            
investment                                                                   
                                                                             
Purchases of investments                            (9,090)           (8,664)
                                                                             
Sales of investments                                10,209             9,269 
                                                                             
Exchange gains on settlement                             -                 2 
                                                                             
Exchange losses on forward currency                   (192)              (26)
contracts                                                                    
                                                                             
Net cash inflow from capital                                                 
                                                                             
expenditure and financial investment                   927               581 
                                                                             
Equity dividends paid                                 (555)             (584)
                                                                             
Net cash inflow before financing                       566               290 
                                                                             
Financing                                                                    
                                                                             
Repurchase of Zero Dividend Preference                (707)              (81)
shares for cancellation                                                      
                                                                             
Net cash outflow from financing                       (707)              (81)
                                                                             
(Decrease)/ increase in cash                          (141)              209 
                                                                             

NOTE

1. The above financial information does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985. The accounts are prepared
under the historical cost convention as modified by the revaluation of fixed
asset investments and in accordance with applicable accounting standards and
with the Statement of Recommended Practice 2003 regarding the Financial
Statements of Investment Trust Companies ("SORP").

The Company has a planned termination date of 30 June 2005.

The accounts have been prepared on a going concern basis as, notwithstanding
the requirement to propose a winding-up resolution, the Board believes the
Company has adequate resources to continue in operation for the foreseeable
future.

Accordingly the investments have been valued at mid-market prices and no
provision has been made for liquidation costs. As at 31 December 2004 if the
investment portfolio had been valued on a bid-price basis rather than a
mid-price basis, the value of the portfolio would have been approximately £
21,000 (equivalent to 0.11p per Ordinary share) less than that shown in the
balance sheet as at this date. The actual proceeds of any future portfolio
liquidation would however be dependent on the constituents of the portfolio at
the time, the price of those shares and the extent of the dealing spread, which
will be affected by market conditions, the mechanism of disposal and
availability of willing purchasers. For these reasons the approximation of £
21,000 should not be regarded as an indication of the likely reduction in net
assets resulting from a disposal of the portfolio at a future date. The costs
of winding up the Company (excluding realisation costs) have been estimated at
£80,000.

2. The Directors have declared a second interim dividend of 0.85p (2003: 1.50p)
net per Ordinary share, payable on 28 February 2005 to the holders of Ordinary
shares on the Register at 11 February 2005.

3. The revenue return per Ordinary share is based on earnings of £428,000
(2003: £463,000) and on 19,455,570 (2003: 19,455,570) Ordinary shares in issue
throughout the period.

4. The capital return per Ordinary share is based on net capital gains of £
334,000 (2003: £540,000) and on 19,455,570 (2003: 19,455,570) Ordinary shares
in issue throughout the period.

5. An amount of £216,000 (2003: £188,000) has been charged to capital in
respect of management fees, other expenses and interest in accordance with
accounting policy.

6. It is the intention of the Directors to conduct the affairs of the Company
so that it satisfies the conditions for approval as an investment trust company
set out on Section 842 of the Income and Corporation Taxes Act 1988.

7. The Company purchased for cancellation 150,000 Zero Dividend Preference
shares at 128.00p per share on 6 August 2004 and a further 350,000 Zero
Dividend Preference shares at 146.00p per share on 22 December 2004. The total
cost of the shares purchased was £707,000 including expenses.

There are now 14,187,326 (30 June 2004: 14,687,326 and 31 December 2003:
14,687,326) Zero Dividend Preference shares in issue. The Zero Dividend
Preference shareholders are entitled to receive 159.44p per share on 30 June
2005. In accordance with Financial Reporting Standard No: 4, the accrued
compound growth entitlement of £903,000 (2003: £842,000) which takes into
account the allocation of share issue expenses to the Zero Dividend Preference
shareholders, has been charged against the capital reserve.

The net asset value per Zero Dividend Preference share of 153.51p (30 June
2004: 147.67p and 31 December 2003: 142.11p) at 31 December 2004 has been
calculated in accordance with the Articles of Association.

7 February 2005

For further information please contact:

Mike O'Shea, Premier Fund Managers Ltd - 01483 306090



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