INVESTEC HIGH INCOME TRUST PLC

Chairman's Statement

Interim Results and Performance

Total assets (excluding current year revenue reserves) increased by 15.6% over
the six months to 30 September 2003. This compares with an increase in the FTSE
All Share Index of 16.8% and in the FTSE 350 Higher Yield Index of 15.6%. The
effect of the gearing provided by your Company's Zero Dividend Preference
shares and bank debt was that the net asset value attributable to the Ordinary
shareholders increased by 100.7% (including current year revenue reserves) over
the same period.

A second interim dividend of 1.625p has been declared by the Directors, payable
on 21 November 2003 to Shareholders on the register as at 31 October 2003. This
follows a first interim dividend of 1.625p; both these dividends are below the
equivalent dividends for last year for the reasons set out in my statement in
the Annual Report.

The recovery in equity markets since 12 March 2003 has continued, albeit not
without some alarms. With hindsight, equity valuations, particularly relative
to gilts, had become too cheap; the successful end of the war in Iraq, the end
of forced selling by life companies and some signs of an economic revival in
the US provided a more optimistic backdrop for the subsequent rally.

Those shares which performed best in this rally were typically those cyclicals
which had been most battered by a triple "whammy" of economic downturn,
relatively high gearing and concern about pension fund deficits. Thus, while
these shares included some which might once have been regarded as "blue chip",
it was the mid cap rather than the larger FTSE 100 constituents which led the
market up.

Given we started the period with 32.5% of total assets in cash and bonds, as
well as a protective put position, we have captured a relatively large
proportion of the equity market recovery in our total asset performance. Given
doubts as to the sustainability of the economic recovery, we have maintained a
relatively cautious stance to ensure that your Company did not risk breaching
its bank covenants.

The total asset performance which matched the rise in the FTSE 350 Higher Yield
Index and was only 1.2% behind the FTSE All Share Index is estimated by the
Managers as follows -:

Six months to 30 September        Performance       Contribution to total   
2003                                                 asset performance %    
                                       %                                    
                                                                            
Bonds                                 4.2                    0.6            
                                                                            
UK Equities                          24.8                    11.7           
                                                                            
Investment trusts                    33.3                    6.9            
                                                                            
Option                                                      (2.1)           
                                                                            
Expenses charged to capital                                 (1.5)           
                                                                            
Total                                                        15.6           
                                                                            
FTSE All Share Index                 16.8                                   

It is worth noting in this analysis that the opening option position, which
protected the Trust in the sharp first quarter fall in markets, had already
generated a profit of �573,674 at 31 March 2003 and hence the net cost of
having taken out this insurance has so far amounted to only �169,337, equating
to 0.4% of gross assets at the beginning of December 2002 when the option
position was taken out.

It can be seen that the performance of the equity portfolio was strongly
positive relative to the FTSE All Share Index. We benefited from holding a
number of mid cap stocks which experienced good recoveries; RMC, Millennium &
Copthorne, Carphone Warehouse and SSL were prominent amongst these, as
investors chased more economically sensitive shares or those vulnerable to
corporate activity. An even greater contribution came from some former "blue
chip" stocks whose market positions had become very undervalued by the market.
Dixons, Reuters, GKN and EMI fall into this latter category.

As regards larger capitalisation stocks, Barclays performed well in a generally
stronger banking sector. The two oil majors, BP and Shell, underperformed
significantly as investors focused on the potential for Iraq to pump oil
although, relative to the market, we benefited from being underweight in this
sector. GlaxoSmithKline lagged the market slightly as patent expiry fears
remained to the fore.

After a difficult period for the split capital sector it is pleasing to see
such a good contribution from our investment trust holdings. We believe that
the ability to invest a reasonable proportion of your assets in the split
sector, whether that be in annuity shares, income shares, ordinary shares or
zeros, is in keeping with the spirit in which your Company was originally
launched. We therefore do not intend to reduce your holdings in other
investment trusts below 15%. The Company will therefore not be able to comply
with the requirement of investing no more than 15% of its gross assets in other
listed investment companies. We do, however, recognise that such an investment
policy places even greater importance on managing the gearing in our own
structure effectively and economically. We continue to work with the Managers
to this effect.

Revenue

Whilst we cannot forecast future profits, we would like to stress that the
Managers have undertaken a thorough review of future revenue and, in the
absence of an unforeseen decline in UK dividends, expect the current
distribution level to be sustainable over the next few years. We would remind
shareholders, however, of the provisions of Sections 263-265 of the Companies
Act which may prevent us from being able to pay a dividend, notwithstanding our
having sufficient reserves to do so.

Outlook

The UK stock market has recovered strongly from its low in March 2003. However,
while it does not appear expensive on fundamental grounds, we are concerned at
the extent to which the USA appears to be discounting a strong economic
recovery. Many of the economic problems which lay behind previous investor
unease remain: the large budget and current account deficits in the USA, the
high level of household debt in both the USA and the UK and the potentially
destabilising effect of the congruence of these imbalances. Given this
background the Managers have maintained a defensive posture. Stock selection is
focusing on two areas: first, those companies which are in a position to
benefit from self-help and are not overly reliant on a strong economic
recovery; secondly, those with reasonably predictable earnings but which have
been oversold by investors concerned to switch into stocks or sectors appearing
to exhibit greater momentum.

James Dawnay

21 October 2003

Consolidated Statement of Total Return

(incorporating the Revenue Account) of the Group

for the six months to 30 September 2003 (unaudited)

                          Six months ended        Six months ended             Year ended        
                                                                                                 
                         30 September 2003        30 September 2002      31 March 2003 (audited) 
                            (unaudited)              (unaudited)                                 
                                                                                                 
                 Notes Revenue Capital  Total Revenue  Capital    Total Revenue  Capital    Total
                                                                                                 
                         �'000   �'000  �'000   �'000    �'000    �'000   �'000    �'000    �'000
                                                                                                 
Gains/(losses)     5         -   5,965  5,965       - (13,668) (13,668)       - (15,392) (15,392)
on Investments                                                                                   
                                                                                                 
Income             6     1,492       -  1,492   1,710        -    1,710   3,280        -    3,280
                                                                                                 
Investment                (52)   (121)  (173)    (58)    (136)    (194)   (109)    (255)    (364)
management fee                                                                                   
                                                                                                 
Other expenses           (107)       -  (107)   (168)        -    (168)   (280)        -    (280)
                                                                                                 
Net return               1,333   5,844  7,177   1,484 (13,804) (12,320)   2,891 (15,647) (12,756)
before finance                                                                                   
costs and                                                                                        
taxation                                                                                         
                                                                                                 
Interest payable         (187)   (436)  (623)   (187)    (436)    (623)   (373)    (870)  (1,243)
and similar                                                                                      
charges                                                                                          
                                                                                                 
Return on                1,146   5,408  6,554   1,297 (14,240) (12,943)   2,518 (16,517) (13,999)
ordinary                                                                                         
activities                                                                                       
before taxation                                                                                  
                                                                                                 
Taxation                     -       -      -       -        -        -       -        -        -
                                                                                                 
Return on                1,146   5,408  6,554   1,297 (14,240) (12,943)   2,518 (16,517) (13,999)
ordinary                                                                                         
activities after                                                                                 
taxation                                                                                         
                                                                                                 
Appropriation to   3         -   (428)  (428)       -    (393)    (393)       -    (801)    (801)
redemption                                                                                       
reserve                                                                                          
                                                                                                 
                         1,146   4,980  6,126   1,297 (14,633) (13,336)   2,518 (17,318) (14,800)
                                                                                                 
Dividends to             (910)       -  (910) (1,260)        -  (1,260) (2,590)        -  (2,590)
equity                                                                                           
shareholders                                                                                     
                                                                                                 
Transfer to/               236   4,980  5,216      37 (14,633) (14,596)    (72) (17,318) (17,390)
(from) reserves                                                                                  
                                                                                                 
Return per               4.09p  17.79p 21.88p   4.63p (52.26)p (47.63)p   8.99p (61.85)p (52.86)p
Ordinary Share                                                                                   
                                                                                                 
Dividends per            3.25p       -  3.25p   4.50p        -    4.50p   9.25p        -    9.25p
Ordinary Share                                                                                   
                                                                                                 
Return per Zero              -   5.09p  5.09p       -    4.68p    4.68p       -    9.54p    9.54p
Dividend                                                                                         
Preference Share                                                                                 

Consolidated Balance Sheet

as at 30 September 2003 (unaudited)

                                         30 September 2003      31 March 2003  
                                            (unaudited)                        
                                                                  (audited)    
                                            �'000     �'000                              
                                                                 �'000     �'000      
                                                                               
Investments                                          34,920               27,414
                                                                               
Current assets                                                                 
                                                                               
Debtors                                       309                  391         
                                                                               
Cash and short term deposits                5,730                7,975         
                                                                               
                                            6,039                8,366         
                                                                               
Creditors: amounts falling due within         580                1,045         
one year                                                                       
                                                                               
Net current assets                                    5,459               7,321
                                                                               
                                                     40,379              34,735
                                                                               
Creditors: amounts falling due after               (19,600)            (19,600)
more than one year                                                             
                                                                               
Net assets                                           20,779              15,135
                                                                               
Capital and reserves                                                           
                                                                               
Called up share capital                               7,000               7,000
                                                                               
Special reserve                                      19,740              19,740
                                                                               
Capital reserve - realised                          (8,878)             (7,737)
                                                                               
Capital reserve - unrealised                        (7,768)            (13,889)
                                                                               
Revenue reserve                                         302                  66
                                                                                
Total equity shareholders' funds                     10,396               5,180
                                                                               
Minority interests                                                             
                                                                               
Investec High Income Securities plc                                            
                                                                               
Zero dividend preference shares                      10,383               9,955
                                                                               
                                                     20,779              15,135
                                                                               
Net asset value per share:                                                     
                                                                               
Ordinary shares                                      37.13p              18.50p
                                                                               
Investec High Income Securities plc                                            
                                                                               
Zero dividend preference shares                     123.60p             118.51p

Consolidated Cash Flow       
Statement                    
                             
for the period to 30         
September 2003               

                                         Six months to  Six months   Year ended
                                                                to             
                                                                               
                                          30 September          30     31 March
                                                  2003   September             
                                                              2002         2003
                                           (unaudited)                         
                                                       (unaudited)    (audited)
                                                 �'000                         
                                                             �'000        �'000
                                                                               
Cash inflow from operating activities            1,173       1,609        2,902
                                                                               
Taxation                                                                       
                                                                               
UK taxation paid                                     -           -            2
                                                                               
Return on investments and servicing of                                         
finance                                                                        
                                                                               
Interest paid                                    (634)       (626)      (1,243)
                                                                               
Capital expenditure and financial                                              
investment                                                                     
                                                                               
Purchases of investments                       (6,242)    (14,423)     (24,538)
                                                                               
Sales of investments                             4,713      15,646       29,955
                                                                               
                                               (1,529)       1,223        5,417
                                                                               
Dividends paid                                 (1,253)     (1,330)      (2,492)
                                                                               
Cash (outflow)/inflow before management        (2,243)         876        4,586
of liquid resources and financing                                              
                                                                               
Management of liquid resources                                                 
                                                                               
Money market deposits withdrawn/(placed)           800       1,100      (4,500)
                                                                               
(Decrease)/increase in cash                    (1,443)       1,976           86
                                                                               
Reconciliation of net cash flow to                                             
movement in net debt                                                           
                                                                               
(Decrease)/increase in cash                    (1,443)       1,976           86
                                                                               
Cash used to (decrease)/increase liquid          (800)     (1,100)        4,500
resources                                                                      
                                                                               
Exchange movements                                 (2)        (30)        (104)
                                                                               
Change in net debt                             (2,245)         846        4,482
                                                                               
Net debt at beginning of period               (11,625)    (16,107)     (16,107)
                                                                               
Net debt at end of period                     (13,870)    (15,261)     (11,625)

Notes

1. Principal activity

The principal activity of the Company is that of an investment trust.

2. Recharge to capital and accounting policies

30% of the management fee and interest payable on the bank loan is charged to
the revenue account and the remaining 70% is charged to capital reserves, net
of corporation tax relief, and inclusive of any related irrecoverable value
added tax.

3. Appropriations in respect of non-equity shares

The appropriation to capital redemption reserve for �428,000 has been made to
cover the pre-determined entitlement of the zero dividend preference shares
issued by Investec High Income Securities PLC.

4. Dividends

The First Interim dividend in respect of the period to 31 March 2004 will
amount to 1.625p per Ordinary share and was paid on 26 August 2003.

The Second Interim dividend in respect of the period to 31 March 2004 will
amount to 1.625p per Ordinary share and will be paid on 21 November 2003 to
shareholders on the register on 31 October 2003.

5. Gains/(losses) on investments

                                  Six months ended      Six months   Year ended
                                                             ended             
                                      30 September                     31 March
                                                      30 September             
                                              2003                         2003
                                                              2002             
                                                                               
                                             �'000           �'000        �'000
                                                                               
Net realised (losses)/gains on               (154)             985      (3,850)
investments                                                                    
                                                                               
Currency losses                                (2)            (30)        (104)
                                                                               
Net decrease/(increase) in                   6,121        (14,623)     (11,438)
unrealised depreciation                                                        
                                                                               
Gains/(losses) on investments                5,965        (13,668)     (15,392)

6. Income

                                  Six months ended      Six months   Year ended
                                                             ended             
                                      30 September                     31 March
                                                      30 September             
                                              2003                         2003
                                                              2002             
                                                                               
                                             �'000           �'000        �'000
                                                                               
UK dividends                                 1,197           1,455        2,674
                                                                               
Overseas dividends                               6              10           31
                                                                               
Income from UK fixed interest                  159             215          389
securities                                                                     
                                                                               
Scrip dividends                                 10              15           19
                                                                               
Dealing gain/(loss) in subsidiary                2            (17)         (10)
                                                                               
Interest income                                118              32          175
                                                                               
Underwriting commission                          -               -            2
                                                                               
                                             1,492           1,710        3,280

7. Comparative figures

The information for the year ended 31 March 2003 does not constitute statutory
accounts, but has been extracted from the latest published audited accounts,
which have been filed with the Registrar of Companies. The report of the
auditors on those accounts contained no qualification or statement under
section 237(2) or (3) of the Companies Act 1985.

8. Publication

The interim Report is being sent to shareholders and copies will be made
available to the public at the Registered Office of the Company.

For further information, please contact:

Heather Williams

Investec Investment Management Limited 020 7597 2000



END