RNS Number:3078K
M&G High Income Inv Tst PLC
23 April 2003


DIVIDEND ANNOUNCEMENT
Announcement Body Information:
    23 April 2003
M&G High Income Investment Trust P.L.C.

INTERIM ANNOUNCEMENT: DECLARATION OF INTERIM DIVIDEND

Dividend

M&G High Income Investment Trust P.L.C. announces that at a meeting of the Board of Directors held today, it was 
resolved to declare a third interim dividend of 1.025p (2002 - 1.025p) per Income Share, in respect of the year ending 
31 May 2003, to be paid on 28 May 2003 to Income Shareholders on the register at the close of business on 2 May 2003. 
The ex dividend date is 30 April 2003.

The dividend will also be payable to holders of Package Units and Income & Growth Units.

Statement of total return (unaudited)
(incorporating the revenue account)

Nine months to 28 February                                          2003                                2002
                                                    Revenue       Capital      Total      Revenue     Capital      Total
                                                      #000          #000        #000        #000        #000        #000
------------------------------------------------------------------------------------------------------------------------
Losses on investments                                      -    (12,861)    (12,861)           -     (3,407)     (3,407)
Income                                                 2,025           -       2,025       2,017           -       2,017
Investment management fee                              (160)       (326)       (486)       (181)       (368)       (549)
Other Expenses                                          (76)           -        (76)        (49)           -        (49)
------------------------------------------------------------------------------------------------------------------------
Return on ordinary activities before tax               1,789    (13,187)    (11,398)       1,787     (3,775)     (1,988)
Tax on ordinary activities                               (74)         74           -        (88)          88           -
------------------------------------------------------------------------------------------------------------------------
Return on ordinary activities after tax                1,715    (13,113)    (11,398)       1,699     (3,687)     (1,988)
Appropriations for premiums payable on redemption          -     (1,240)     (1,240)           -     (1,146)     (1,146)
Dividends (non-equity)                               (1,653)           -     (1,653)     (1,656)           -     (1,656)
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Transfer to/(from) reserves                               62    (14,353)    (14,291)          43     (4,833)     (4,790)
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Earnings per Income Share                              3.19p                               3.15p
------------------------------------------------------------------------------------------------------------------------
The revenue column of this statement is the profit and loss account of the company.
All the items dealt with in arriving at revenue on ordinary activities before tax
for 2003 relate to continuing activities.


Balance sheet (unaudited)
As at 28 February                                                             2003                                2002
                                                                              #000                                #000
------------------------------------------------------------------------------------------------------------------------
Employment of capital
Fixed assets
Investments                                                                  49,342                              60,593
Current assets
Debtors                                                                         436                                 694
Cash at bank                                                                    631                               1,243
------------------------------------------------------------------------------------------------------------------------
                                                                              1,067                               1,937
Creditors: Amounts falling due within one year                                (621)                             (1,096)
------------------------------------------------------------------------------------------------------------------------
Net current assets                                                              446                                 841
------------------------------------------------------------------------------------------------------------------------
Net assets                                                                   49,788                              61,434
------------------------------------------------------------------------------------------------------------------------
Capital and reserves
Called up share capital                                                       1,613                               1,616
Capital redemption reserve                                                   15,549                              15,546
Special reserve                                                              37,373                              37,460
Capital reserves  - realised                                                  2,640                               4,471
                  - unrealised                                              (7,624)                               2,145
Revenue reserve                                                                 237                                 196
------------------------------------------------------------------------------------------------------------------------
Shareholders' funds (all non-equity)                                         49,788                              61,434
------------------------------------------------------------------------------------------------------------------------
Asset value per Zero Dividend Preference Share                               34.36p                              31.38p
Asset value per Income Share                                                 59.29p                              71.39p
Asset value per Capital Share                                                 0.00p                              12.33p
Asset value per Income & Growth Unit                                         59.29p                              83.72p
Asset value per Package Unit                                                 93.65p                             115.10p


Cash flow statement (unaudited)
Nine months to 28 February                                          2003                                2002
                                                                    #000        #000                    #000        #000
------------------------------------------------------------------------------------------------------------------------
Net cash inflow from operating activities                                      1,576                               1,429
Servicing of finance
Dividends paid (non-equity)                                                  (1,950)                             (1,903)
Tax
Income tax recovered                                                               -                                 11
Investment activities
Purchase of investments                                            (7,058)                             (4,956)
Sale of investments                                                  7,736                               5,490
Net cash inflow from investing activities                                        678                                 534
Financing
Repurchase of Package Units (including legal costs)                             (87)                                 (2)
------------------------------------------------------------------------------------------------------------------------
--------------
Increase in cash                                                                 217                                  69
------------------------------------------------------------------------------------------------------------------------
--------------
Investment portfolio
As at 28 February 2003
Holding                                                                                      Value                % net
                                                                                              #000               assets
                  Mining                                                                                           2.95
          100,000 Lonmin                                                                       828                 1.66
           50,000 Rio Tinto (Regd.)                                                            642                 1.29

                  Oil & gas                                                                                        6.72
          425,000 BP                                                                         1,700                 3.41
          200,000 Hunting                                                                      176                 0.36
          400,000 Shell Transport & Trading (Regd.)                                          1,471                 2.95

                  Chemicals                                                                                        0.76
           50,000 BOC Group                                                                    376                 0.76

                  Construction & building materials                                                                6.78
          250,000 Barratt Developments                                                       1,025                 2.06
          150,000 BPB                                                                          394                 0.79
          750,000 Crest Nicholson 5.5% Cnv. Red. Prf.                                          709                 1.42
          200,000 Persimmon                                                                    881                 1.77
          350,000 Pilkington                                                                   184                 0.37
           50,000 RMC Group                                                                    184                 0.37

                  Aerospace & defence                                                                              0.77
          250,000 Meggitt                                                                      383                 0.77

                  Engineering & machinery                                                                          2.33
          100,000 IMI                                                                          232                 0.47
          120,000 Rotork                                                                       319                 0.64
          100,000 Tomkins                                                                      188                 0.38
          150,000 Vitec Group                                                                  420                 0.84

                  Beverages                                                                                        1.39
           30,000 Diageo                                                                       189                 0.38
          150,000 Scottish & Newcastle                                                         504                 1.01

                  Food producers & processors                                                                      1.02
           25,000 Dairy Crest Group                                                             85                 0.17
           75,000 Unilever                                                                     424                 0.85

                  Pharmaceuticals                                                                                  3.14
          140,000 GlaxoSmithKline                                                            1,562                 3.14

                  Tobacco                                                                                          3.68
          175,000 Gallaher                                                                   1,090                 2.19
           75,000 Imperial Tobacco                                                             743                 1.49

                  General retailers                                                                                3.95
           25,000 Boots Co.                                                                    135                 0.27
           40,000 Carpetright                                                                  252                 0.51
           63,049 Debenhams                                                                    170                 0.34
          325,000 Findel                                                                       699                 1.40
           75,000 GUS                                                                          381                 0.77
          125,000 Smith W.H                                                                    330                 0.66

                  Leisure & entertainment & hotels                                                                 4.84
           50,000 Rank Group                                                                   117                 0.23
          615,000 Rank Group Cnv. Cum. Red. Pref.                                              624                 1.25
          175,000 Six Continents                                                             1,083                 2.18
          125,000 William Hill                                                                 255                 0.51
           57,442 Wolverhampton & Dudley                                                       334                 0.67

                  Media & photography                                                                              1.25
          100,000 Carlton Communications 6.5p Cum. Cnv. Pref. 2010                              84                 0.17
          135,000 Trinity Mirror                                                               537                 1.08

                  Support services                                                                                 1.18
           68,231 Electrocomponents                                                            161                 0.32
          120,000 RAC                                                                          427                 0.86

                  Transport                                                                                        4.06
          250,000 Arriva                                                                       720                 1.45
          125,000 BBA Group                                                                    182                 0.37
          175,000 FirstGroup                                                                   403                 0.81
           80,000 Mersey Docks & Harbour                                                       365                 0.73
          225,000 Wincanton                                                                    349                 0.70

                  Food & drug retailers                                                                            1.17
          100,000 Safeway                                                                      296                 0.59
          125,000 Sainsbury (J)                                                                290                 0.58

                  Telecommunication services                                                                       3.24
          200,000 BT Group                                                                     326                 0.66
          $22,500 Vodafone Group ADR Cnv.                                                      257                 0.52
          900,000 Vodafone Group                                                             1,024                 2.06

                  Electricity                                                                                      2.37
          100,000 Scottish & Southern Energy                                                   630                 1.27
          150,000 Scottish Power                                                               547                 1.10

                  Utilities/ other                                                                                 5.97
          300,000 Kelda Group                                                                1,230                 2.47
           75,000 National Grid Transco                                                        307                 0.62 
        114,430 Pennon Group                                                                   764                 1.53
           70,000 Severn Trent                                                                 493                 0.99
           30,000 United Utilities                                                             177                 0.36

                  Banks                                                                                           10.57
           70,000 Alliance & Leicester                                                         542                 1.09
          360,000 Barclays                                                                   1,319                 2.65
          200,000 Bradford & Bingley                                                           568                 1.14
          259,000 HSBC Hldgs.                                                                1,772                 3.56
          300,000 Lloyds TSB Group                                                           1,062                 2.13

                  Life assurance                                                                                   0.98
           75,000 Britannic Group                                                              102                 0.20
          250,000 Friends Provident                                                            221                 0.44
           50,000 Prudential                                                                   169                 0.34

                  Real estate                                                                                      3.56
          230,000 Brixton                                                                      503                 1.01
            8,798 Land Securities                                                               65                 0.13
           93,620 Liberty International                                                        529                 1.06
          500,000 Slough Estates 8.25p Cum. Cnv. Red. Pref.                                    677                 1.36

                  Speciality & other finance                                                                       2.19
           60,000 Close Brothers Group                                                         258                 0.52
           92,038 Provident Financial                                                          529                 1.06
          250,000 Singer & Friedlander Group                                                   306                 0.61

                  Information technology hardware                                                                  0.05
          200,000 Spirent                                                                       24                 0.05

                  Software & computer services                                                                     0.24
           90,000 Sage Group                                                                   120                 0.24

                  Non-convertible preference shares                                                               11.21
        1,500,000 Aviva 8.75% Cum. Irrd. Pref.                                               1,571                 3.16
          750,000 General Accident 8.875% Cum. Irrd. Pref.                                     812                 1.63
          623,457 Halifax 6.125% Non-cum. Pref.                                                588                 1.18
          550,000 HBOS 9.75% Non-cum Irrd. Pref.                                               811                 1.63
          400,000 National Westminster 9% Series A Non-cum Pref.                               549                 1.10
        1,250,000 Royal & Sun Alliance 7.375% Cum. Irrd. Pref.                                 706                 1.42
          500,000 Standard Chartered 7.375% Non-cum. Irrd. Pref.                               544                 1.09

                  Sterling corporate bonds                                                                        12.73
         #300,000 Alliance & Leicester 8.75% Bds. 2006                                         345                 0.69
         #400,000 Assoc British Ports 6.625% Bds. 2008                                         429                 0.86
         #285,000 Austria (Republic of) 9% Bds. 2004                                           306                 0.61
         #698,000 Capital Shopping 6.875% Bds. 2013                                            691                 1.39
         #655,000 Carlsberg Finance 7% Bds. 2013                                               717                 1.44
         #700,000 DWR Cymru Financing 8.174% Bds. 2036                                         792                 1.59
       #1,500,000 HSBC 9.25% Var. Perp. Bds.                                                 1,746                 3.51
         #255,000 London Merchant Sec. 6.5% Bds. 2026                                          267                 0.54
         #211,000 National Westminster Bank Step-up 7.625% Bds. 2049                           244                 0.49
         #499,000 Shaftesbury 8.5% 1st Mort. Deb. 2024                                         625                 1.26
         #170,000 United Utilities Water 5.25% Bds. 2010                                       175                 0.35
------------------------------------------------------------------------------------------------------------------------
                  Total investments                                                         49,342                99.10
                  Net current assets                                                           446                 0.90
------------------------------------------------------------------------------------------------------------------------
                  Net assets                                                                49,788               100.00
------------------------------------------------------------------------------------------------------------------------
J. P. McClelland
Secretary


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            The company news service from the London Stock Exchange
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