Interim Report
30 June 2003
Registered number : 433137
Directors
Jonathan C Woolf (Chairman and Managing Director)
Dominic G Dreyfus (Non-executive)
J Anthony V Townsend (Non-executive)
Ronald G Paterson (Non-executive)
Registered office
Wessex House
1 Chesham Street
London SW1X 8ND
Telephone: 020 7201 3100
Chairman's Statement
I report our results for the 6 months to 30 June 2003.
The return on revenue account before tax amounted to �0.7million (�0.8 million). This decline was largely due to a
fall in film revenues over the period as a result of a periodic upgrading of film materials by distributors to meet new
transmission standards.
Total return before taxation, which includes both realised and unrealised capital appreciation, recorded an increase of
�1.9million (�2.9 million deficit), reflecting the recovery in equity valuations over the period, noted below.
The revenue return per ordinary share was 2.1 pence on an undiluted basis (2.5 pence) and 2.0 pence on a fully diluted
basis (2.3 pence).
Group net assets were �30.0 million (�28.7 million at 31 December 2002), an increase of 4.4 percent. This compares to
an increase over the same six month period of 2.3 percent in the FTSE 100 share index and 4.1 percent in the FTSE All
Share index. The net asset value per �1 ordinary share on a fully diluted basis was 86 pence, equivalent to 80 pence
(prior charges deducted at par).
We intend to pay an interim dividend of 2.0 pence per ordinary share on 13 November 2003 to shareholders on the
register at 17 October 2003. This represents an increase of 5.3 percent from last year's interim dividend. A
preference dividend of 1.75 pence will be paid to preference shareholders on the same date.
In the six months to 30 June 2003, the UK equity market experienced two distinct phases, falling by 10 percent in the
first quarter to a 5 year low and recovering in the second quarter to record a small increase over the period. As
already reported to you, the decline in the early part of 2003, coming after a sustained period of decline in previous
years, could be primarily attributed to the hostilities in the Middle East. Following the conclusion of hostilities in
the second quarter and an improvement in sentiment for growth in the USA, markets in the US and UK reversed their first
quarter declines. In the UK, this improvement was particularly evident in the valuations of cyclical and second line
stocks as can be seen from the relative out-performance of the FTSE All Share index compared to the FTSE 100 index
noted above. Sectors which particularly benefited from this turnaround were communications, technology and retailing.
Financials also recovered in anticipation of firmer markets following a general acknowledgement that the multi-year
declines in equity prices had been halted. However, prices of service sector companies with exposure to the travel and
hospitality industries as well as industrials and utilities remained weak.
The recovery has continued strongly since the end of the second quarter with the same sectors mentioned above
continuing to outperform. The improvement has been further underpinned in the USA by confirmation of the growth
expectations in a number of improved profit reports and forecasts from US companies in recent weeks. The recovery is
expected to be sustained in the absence of any unexpected shocks against the current background of generally favourable
economic and political circumstances.
As at 23 September, group net assets, after deducting the interim dividend declared today, were �32.8 million, an
increase of 9.2 percent since 30 June. This compares with an increase of 4.7 percent in the FTSE 100 index and 6.1
percent in the All Share index over the same period, and is equivalent to 91 pence per share (prior charges deducted at
par) and 94 pence per share on a fully diluted basis.
Jonathan C Woolf
26 September 2003
6 months to 30 6 months to Year
June 30 ended 31
2003 December
June 2002
�'000
2002 �'000
�'000
Return before taxation 713 831 1,476
Earnings per �1 ordinary shares 2.14p
- basic 2.50p 3.54p
Earnings per �1 ordinary shares 2.03p
- fully diluted 2.29p 3.52p
Investments at valuation and 30,526 36,249 29,848
cash at bank
Interim dividend per ordinary 2.0p 1.9p
share 1.9p
Net assets per ordinary share
- Basic �0.80
�1.01 �0.75
- Fully diluted �0.86
�1.01 �0.82
Fully diluted net assets per
ordinary share at 23 September
2003 �0.94
BRITISH & AMERICAN INVESTMENT TRUST PLC
INDEPENDENT REVIEW REPORT
Introduction
We have been instructed by the company to review the financial information for the six months ended 30 June 2003 which
comprises the consolidated statement of total return, group investment portfolio, the group balance sheet, the group
cash flow statement and related notes 1 to 7. We have read the other information contained in the interim report and
considered whether it contains any apparent misstatements or material inconsistencies with the financial information.
This report is made solely to the company in accordance with Bulletin 1999/4 issued by the Auditing Practices Board.
Our work has been undertaken so that we might state to the company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we have
formed.
Directors' responsibilities
The interim report, including the financial information contained therein, is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the interim report in accordance with the
Listing Rules of the Financial Services Authority which requires that the accounting policies and presentation applied
to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where
any changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with the guidance contained in Bulletin 1999/4 issued by the Auditing Practices
Board for use in the United Kingdom. A review consists principally of making enquiries of group management and
applying analytical procedures to the financial information and underlying financial data and, based thereon, assessing
whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review
excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is
substantially less in scope than an audit performed in accordance with United Kingdom auditing standards and therefore
provides a lower level of assurance than an audit. Accordingly, we do not express an audit opinion on the financial
information.
Review conclusion
On the basis of our review we are not aware of any material modifications that should be made to the financial
information as presented for the six months ended 30 June 2003.
Deloitte & Touche LLP
Chartered Accountants
and Registered Auditors
London
26 September 2003
6 months to 30 June 2003 6 months to 30 June 2002 Year ended 31 December 2002
Note Revenue Capital Total Revenue Capital Total Revenue Capital Total
�'000 �'000 �'000 �'000 �'000 �'000
�'000 �'000 �'000
Income 2 903 - 903 1,055 - 1,055 1,819 - 1,819
Realised gains on investments - 145 145 - 80 80 - 726 726
Increase in unrealised depreciation - 1,093 1,093 - (3,799) (3,799) - (10,445) (10,445)
Other expenses (160) - (160) (215) - (215) (331) - (331)
Net return before finance costs and 743 1,238 1,981 840 (3,719) (2,879) 1,488 (9,719) (8,231)
taxation
Interest payable and similar (30) - (30) (9) - (9) (12) - (12)
charges
Return before taxation 713 1,238 1,951 831 (3,719) (2,888) 1,476 (9,719) (8,243)
Taxation (2) - (2) (30) - (30) (242) - (242)
Return on ordinary activities after 711 1,238 1,949 801 (3,719) (2,918) 1,234 (9,719) (8,485)
tax
Dividend and other appropriations
in respect of preference shares
(175) - (175) (175) - (175) (350) - (350)
Return attributable to ordinary 536 1,238 1,774 626 (3,719) (3,093) 884 (9,719) (8,835)
shareholders
Dividend in respect of ordinary 3 (500) - (500) (475) - (475) (1,225) - (1,225)
shares
Transfer to reserves after
dividends paid and proposed
36 1,238 1,274 151 (3,719) (3,568) (341) (9,719) (10,060)
Return per ordinary share
Basic 5.0p 7.1p (14.8)p (12.3)p (38.9)p (35.4)p
2.1p 2.5p 3.5p
Fully diluted 4 3.6p 5.6p (10.6)p (8.3)p (27.8)p (24.3)p
2.0p 2.3p 3.5p
Company Nature of Business Percentage
of
Valuation portfolio
�'000 %
Liberty International plc Property 3,903 13.19
Prudential plc Life Assurance 2,937 9.93
The Alliance Trust plc Investment Trust 2,034 6.87
Securities Trust of Scotland plc Investment Trust 1,832 6.19
Dunedin Income Growth Investment Investment Trust 1,640 5.54
Trust plc
RIT Capital Partners plc Investment Trust 1,573 5.32
British Assets Trust plc Investment Trust 1,500 5.07
Electra Investment Trust plc Investment Trust 1,353 4.57
Matrix Chatham Maritime Trust Enterprise Zone Trust 1,250 4.22
St. James Place Capital - Unit Trust Unit Trust 860 2.91
Atrium Underwriting plc Insurance 763 2.58
Great Portland Estates plc Property 749 2.53
Murray International Trust plc Investment Trust 688 2.33
The Scottish American Investment Investment Trust 541 1.83
Company plc
Rothschilds Continuation Finance - Financial 462 1.56
Notes
The Rank Group Plc - Preference Leisure 439 1.48
Invesco Convertible Trust plc Investment Trust 417 1.41
Shires Income plc Investment Trust 413 1.40
The Throgmorton Trust plc Investment Trust 350 1.18
Abbey National plc - Non Cumulative Banks Retail 349 1.18
Preference
20 Largest investments 24,053 81.29
Other investments (number of 5,535 18.71
holdings : 75)
Total investments 29,588 100.00
30 30 31
June December
2003 June 2002
�'000 2002 �'000
�'000
FIXED ASSETS
Investments 29,588 35,922 28,404
CURRENT ASSETS
Debtors 554 324 323
Cash at bank and in hand 722 327 1,794
1,276 651 2,117
CREDITORS: amounts falling due
within one year
(849) (1,339) (1,779)
NET CURRENT ASSETS/(LIABILITIES) 427 (688) 338
CREDITORS: Amounts falling due
after more than one year
- - -
Net assets 30,015 35,234 28,742
30,015 35,234 28,742
CAPITAL AND RESERVES
Called up share capital
- ordinary 25,000 25,000 25,000
- preference 10,000 10,000 10,000
Capital reserve - realised 14,595 12,842 14,309
Capital reserve - unrealised (21,388) (14,872) (22,339)
Profit and loss account 1,808 2,264 1,772
30,015 35,234 28,742
6 months 6 months Year
to 30 to 30 ended 31
June December
2003 June 2002
�'000 2002 �'000
�'000
Net cash inflow from operating 473 726 1,444
activities
Servicing of finance
- interest paid (30) (9) (13)
- preference dividends paid (175) (175) (350)
Taxation (paid)/recovered (246) 34 21
Investment purchases (1,635) (316) (2,438)
Investment sales 1,291 767 4,665
Equity dividends paid (750) (1,375) (1,850)
Financing - - -
(Decrease)/increase in cash (1,072) (348) 1,479
1. ACCOUNTING POLICIES
The results are based on unaudited Group consolidated accounts prepared under the historical cost convention as
modified by the revaluation of investments. The results have been prepared in accordance with applicable Accounting
Standards, with the Statement of Recommended Practice, "Financial Statements of Investment Trust Companies" and
accounting policies consistent with preceding annual accounts.
2. TOTAL INCOME
6 months 6 months Year
to 30 to 30 ended 31
June December
2003 June 2002
�'000 2002 �'000
�'000
Turnover - film revenue 69 140 243
Income from investments 765 859 1,437
Interest receivable 18 5 38
Other income 51 51 101
903 1,055 1,819
3. DIVIDENDS
6 months to 30 June 6 months to 30 June
2003 2002
Pence per Pence per
share share
� �
Ordinary shares - interim 2.0 500,000 1.9 475,000
Preference shares - fixed 1.75 175,000 1.75 175,000
675,000 650,000
The dividends on ordinary shares are based on 25,000,000 ordinary �1 shares. Dividends on preference shares are based
on 10,000,000 non-voting 3.5% convertible preference shares of �1.
The holders of the 3.5% convertible preference shares will be paid a dividend of �175,000 being 1.75p per share. The
payment will be made on the same date as the dividend to the ordinary shareholders.
4. RETURN PER ORDINARY SHARE
6 months 6 months Year
to 30 to 30 ended 31
June December
2003 June 2002
�'000 2002 �'000
�'000
Standard earnings per share
Calculated on the basis of:
Return after taxation and preference 536 626 884
dividends
Ordinary shares in issue 25,000 25,000 25,000
Fully diluted earnings per share
Calculated on the basis of:
Return after taxation 711 801 1,234
Ordinary and preference shares in issue 35,000 35,000 35,000
Diluted earnings per share is calculated taking into account the preference shares which are convertible, under certain
conditions, at any time during the period 1 January 2006 to 31 December 2025 (both dates inclusive).
5. NET ASSET VALUE ATTRIBUTABLE TO EACH SHARE
Basic net asset value attributable to each share has been calculated by reference to 25,000,000 ordinary shares, and
group net assets attributable to shareholders as follows:
30 30 31
June December
2003 June 2002
�'000 2002 �'000
�'000
Total net assets 30,015 35,234 28,742
Less preference shares (10,000) (10,000) (10,000)
Net assets attributable to ordinary 20,015 25,234 18,742
shareholders
In both cases the effective net assets of the group have been calculated taking investments at their market value.
Diluted net asset value is calculated taking into account the preference shares which are convertible, under certain
conditions, at any time during the period 1 January 2006 to 31 December 2025 (both dates inclusive).
6. The financial information set out above is unaudited and does not constitute statutory accounts within the
meaning of section 240 of the Companies Act 1985. Statutory accounts for the year ended 31 December 2002, which
received an unqualified auditors' report, have been filed with the Registrar of Companies.
7. A copy of this statement has been sent today to the company's shareholders, and members of the public may
obtain a copy on application to the company's registered office.