RNS Number:2059R
RIT Capital Partners PLC
23 October 2003



                                                                 23 October 2003


               PRELIMINARY ANNOUNCEMENT FOR THE SIX MONTHS ENDED
                               30 SEPTEMBER 2003


The following is derived from the Chairman's Statement which will appear in the
interim report.


During the half year to 30 September, your Company's net asset value per share
increased by 17.5%, from 430.2p to 505.6p. Over the same period, the Morgan
Stanley Capital International Index (in Sterling), the FTSE All-Share Index and
the Investment Trust Net Assets Index rose by 15.6%, 16.8% and 20.9%
respectively.


During the difficult market conditions of the previous three years, we
outperformed these indices by some margin, as a result of the liquidity we
maintained during this period and the diversified nature of the portfolio,
particularly into asset classes which are less directly correlated to stock
markets. Since the beginning of the year, we have increased our stock market
exposure significantly, particularly in the Far East and, as a result,
shareholders have participated in the recent rise in stock markets.

The increase in net asset value was attributable largely to the performance of
the "quoted investments" section of the portfolio, which contributed #92 million
towards the total increase in value of #118 million generated for shareholders
over the period. A significant element of the portfolio - some 25% - is held in
unquoted investments where values are likely to mature over a longer cycle.

RITCP's net asset value per share at 20 October was 523.2p - an increase of
21.6% since 31 March.


INVESTMENT PORTFOLIO


During the period under review, we were presented with a relatively brief
opportunity to benefit from historically low interest rates. In July, we
borrowed $150 million at a rate of 3.93% fixed for five years, thereby
increasing the resources available to your Company at a reasonable cost. We
believe that this will allow shareholders to benefit from the increased
opportunities available at this stage in the economic cycle.


During the half year we increased the market exposure of the portfolio,
particularly to Japan and other Far Eastern markets, with a corresponding
reduction in our liquidity. We have realigned our currency exposure, continuing
to hedge against the majority of our US$ exposure, while seeking to diversify
the currency profile of the portfolio. This has contributed to the positive
returns achieved.


We aim to identify investment managers with outstanding expertise in different
asset classes or geographical areas. Shareholders should be aware that some #295
million, or more than two thirds of the quoted portfolio of #418 million, is
managed by fourteen external managers. The spread of investments made by each
manager contributes significantly to the underlying diversity of the portfolio.


At 30 September, #418 million, or 47% of the portfolio, was held directly in
quoted investments, compared with 40% at 31 March. A further #161 million, or
18% of the portfolio was held in funds (including hedge funds) which invest
mainly in quoted securities. Taking these two categories together, some 65% of
the portfolio was invested in quoted or other marketable securities, compared
with 55% at 31 March. The total amount invested in this area has increased by
some #200 million during the period under review.


The overall exposure of your Company to unquoted investments arises either from
investments made directly by RITCP's own management, or from investments in
externally managed partnerships which make private equity investments. In total,
some #224 million, or 25% of the portfolio, was invested in this sector: #170
million, or 19%, by our own management and #54 million, or 6%, through our
investments in limited partnerships managed by third parties. The amounts
invested in this area have increased by some #36 million as a result of new
investments made by our own management during the six month period.


RESULTS


The increase in your Company's net assets over the six months to 30 September
amounted to #118 million, of which #112 was attributable to capital and #6
million to revenue.


In line with our established policy, RITCP will not be paying an interim
dividend.


For further information please contact:


Duncan Budge      020-7514 1928




CONSOLIDATED STATEMENT OF TOTAL RETURN
For the six months ended 30 September 2003

                                           Revenue       Capital         Total
                                             #'000         #'000         #'000

Gains on investments                             -       107,143       107,143

Dealing profits                              3,438             -         3,438

Investment income:

Dividends and interest                      10,055             -        10,055

Income from investment properties              491             -           491

Other income                                   238             -           238

Administrative expenses                     (3,302)            -        (3,302)

Investment management fees                  (1,720)         (962)       (2,682)

Other capital items                              -         6,943         6,943
                                          ----------    ----------    ----------

Net return before finance costs
and taxation                                 9,200       113,124       122,324

Interest payable and similar charges          (790)            -          (790)
                                          ----------    ----------    ----------

Return on ordinary activities
before taxation                              8,410       113,124       121,534

Taxation on ordinary activities             (2,587)         (961)       (3,548)
                                          ----------    ----------    ----------

Return on ordinary activities
after taxation attributable to
equity shareholders                          5,823       112,163       117,986
                                         -----------    ----------    ----------

Transfer to reserves                         5,823       112,163       117,986
                                          ==========    ==========    ==========

Return per ordinary share                      3.7p         71.5p         75.2p




The revenue column of this statement is the consolidated profit and loss account
of the Group.

The accompanying notes are an integral part of this statement.

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

No operations were acquired or discontinued in the period.






CONSOLIDATED STATEMENT OF TOTAL RETURN
For the six months ended 30 September 2002



                                            Revenue        Capital       Total
                                              #'000          #'000       #'000

Losses on investments                             -       (121,720)   (121,720)

Dealing profits                                 165              -         165

Investment income:

Dividends and interest                        7,876              -       7,876

Income from investment properties               443              -         443

Other income                                    160              -         160

Administrative expenses                      (3,101)             -      (3,101)

Investment management fees                   (1,665)             3      (1,662)

Other capital items                               -         26,942      26,942
                                            ---------      ---------   ---------

Net return/(loss) before finance costs
and taxation                                  3,878        (94,775)    (90,897)

Interest payable and similar charges           (103)             -        (103)
                                            ---------   ------------   ---------

Return/(loss) on ordinary activities
before taxation                               3,775        (94,775)    (91,000)

Taxation on ordinary activities              (1,137)         1,583         446
                                            ---------      ---------   ---------

Return/(loss) on ordinary activities
after taxation attributable to
equity shareholders                           2,638        (93,192)    (90,554)
                                            ---------      -------     -------

Transfer to/(from) reserves                   2,638        (93,192)    (90,554)
                                            =========      =======     =======

Return/(loss) per ordinary share                1.7p         (59.4)p     (57.7)p




The revenue column of this statement is the consolidated profit and loss account
of the Group.

The accompanying notes are an integral part of this statement.

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

No operations were acquired or discontinued in the period.





CONSOLIDATED BALANCE SHEET


                                      30 September    31 March    30 September
                                              2003        2003            2002
                                             #'000       #'000           #'000
Fixed assets

Investments                                889,593     684,472         638,915

Tangible fixed assets                          270         151             202
                                          ----------  ----------      ----------

                                           889,863     684,623         639,117
                                          ----------  ----------      ----------

Current assets                              49,657      29,217          58,989

Creditors: amounts falling due
within one year                            (47,597)    (32,859)         (3,056)
                                          ----------  ----------      ----------

Net current assets/(liabilities)             2,060      (3,642)         55,933
                                          ----------  ----------      ----------

Total assets less current
liabilities                                891,923     680,981         695,050

Creditors: amounts falling due
after more than one year
Bank loan                                  (90,173)          -         (20,866)

Provisions for liabilities and
charges                                     (8,709)     (6,276)         (6,430)
                                          ----------  ----------      ----------

                                           793,041     674,705         667,754
                                          ==========  ==========      ==========

Capital and reserves

Called up share capital                    156,848     156,848         156,848

Capital redemption reserve                  33,308      33,308          33,308

Capital reserve - realised                 581,606     554,625         530,855

Capital reserve - unrealised                (9,663)    (94,845)        (80,852)

Revenue reserve                             30,894      24,769          27,595
                                          ----------  ----------      ----------

Total shareholders' funds                  792,993     674,705         667,754

Equity minority interests                       48           -               -
                                          ----------  ----------      ----------

Capital employed                           793,041     674,705         667,754
                                          ==========  ==========      ==========

Net asset value per
ordinary share                               505.6p      430.2p          425.7p




CONSOLIDATED CASH FLOW STATEMENT



                                    Period Ended    Year Ended    Period Ended
                                    30 September      31 March    30 September
                                            2003          2003            2002
                                           #'000         #'000           #'000

Cash inflow/(outflow) from
operating activities                      19,975        30,152          (1,389)
                                        ----------    ----------      ----------

Servicing of finance
Bank and loan interest paid                  (89)         (171)           (109)
                                        ----------    ----------      ----------
Net cash outflow from
servicing of finance                         (89)         (171)           (109)
                                        ----------    ----------      ----------

Taxation
UK tax paid                                    -           (75)            (82)
UK tax received                            1,229             -               -
Overseas tax paid                           (582)         (458)           (528)
                                        ----------    ----------      ----------
Net cash inflow/(outflow) from
taxation                                     647          (533)           (610)
                                        ----------    ----------      ----------

Financial investment
Purchase of investments                 (264,480)     (355,406)       (192,847)
Sale of investments                      120,192       308,243         197,740
                                        ----------    ----------      ----------
Net cash (outflow)/inflow
from financial investment               (144,288)      (47,163)          4,893
                                        ----------    ----------      ----------

Capital expenditure
Purchase of fixed assets                    (218)          (49)            (49)
Sale of fixed assets                          53             6               6
                                        ----------    ----------      ----------
Net cash outflow from
capital expenditure                         (165)          (43)            (43)
                                        ----------    ----------      ----------

Equity dividends paid                     (4,862)       (4,862)         (4,862)
                                        ----------    ----------      ----------

Net cash outflow
before management of liquid
resources and financing                 (128,782)      (22,620)         (2,120)
                                        ---------     ----------      ----------

Management of liquid resources
Purchase of government
securities                              (133,125)     (216,978)        (77,986)
Sale of government securities            182,728       228,812          81,162
                                        ----------    ----------      ----------

Net cash inflow from
management of liquid resources            49,603        11,834           3,176
                                        ----------    ----------      ----------

Financing
Increase in term loan                     90,168             -               -
Minority interests                            48             -               -
                                        ----------    ----------      ----------
Net cash inflow from financing            90,216             -               -
                                        ----------    ----------      ----------

Increase/(decrease) in cash
in the period                             11,037       (10,786)          1,056
                                        ==========    ==========      ==========


NOTES

1    ACCOUNTING POLICIES


The accounting policies used by the Group in the preparation of this interim
report are consistent with those applied in preparing statutory accounts for the
year ended 31 March 2003.


2    MOVEMENTS IN FIXED ASSET INVESTMENTS

                                 Unquoted
                                      and       Funds and    Government
                       Quoted    Property    Partnerships    Securities       Total
                        #'000       #'000           #'000         #'000       #'000

At 31 March 2003      271,533     142,639         152,970       117,330     684,472

Reclassifications      (5,751)      5,751               -             -           -

Additions             179,972      35,715          56,376       132,619     404,682

Disposals            (103,333)         (2)         (2,102)     (186,447)   (291,884)

Revaluation            75,476       8,675           8,313          (141)     92,323
                      -------     -------         -------       -------     -------
At 30 September       417,897     192,778         215,557        63,361     889,593
2003
                      =======     =======         =======       =======     =======



3    MOVEMENTS IN RESERVES

                                        Capital
                                     Redemption         Capital        Revenue
                                        Reserve         Reserve        Reserve
                                          #'000           #'000          #'000

At 31 March 2003                         33,308         459,780         24,769

Profit for the period                         -               -          5,823

Capital return for the period                 -         112,163              -

Other movements                               -               -            302
                                        ---------      ----------      ---------

At 30 September 2003                     33,308         571,943         30,894
                                        =========      ==========      =========


4    LITIGATION

In November 1997 proceedings were issued in the New York Courts against a total
of ten defendants, including the Company, by Richbell Information Services Inc.
("RIS") and certain connected entities. The proceedings relate to the Company's
investment in H-G Holdings Inc. and a loan made to RIS by the Company's
wholly-owned subsidiary, Atlantic and General Investment Trust Limited ("AGIT").
The claim against all of the defendants was for approximately US$240 million. On
15 March 2002 the New York Court dismissed the proceedings in their entirety at
their initial stage for failure to state a claim upon which relief could be
granted. On 1 April 2002 the plaintiffs filed an appeal against that dismissal.
On 23 September 2003 the New York Appellate Court affirmed the dismissal of the
proceedings as to thirty causes of action included in the claim and as to AGIT.
The New York Appellate Court reinstated three of the causes of action as to
seven of the defendants, including the Company, and referred the matter back to
the New York Court for further proceedings with respect to those three causes of
action.


Based upon legal advice received, the Directors do not believe that the
proceedings will have a material effect on the financial position of the
Company.


5    STATUTORY ACCOUNTS


The financial information in this publication is unaudited and does not
constitute statutory accounts. The statutory accounts for the year ended 31
March 2003 have been delivered to the Registrar of Companies in England and
Wales and the report of the auditors on those accounts was unqualified.


6    INTERIM REPORT


The Company's Interim Report for the six months ended 30 September 2003 will be
posted to shareholders on Wednesday, 29 October 2003. Copies of this
announcement and the Interim Report will be available to the public at the
Company's registered office at 27 St James's Place, London SW1A 1NR.







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