Annual Report and 
Accounts 2003
Continued growth and
development
> >
Tenanted 
Residential 
>
This year, the growth
of our business
combined with the skill
base of our employees
has given us positive
differentiation in the
marketplace.
Our core business lies in the tenanted residential market 
and, in particular, in the regulated and life tenancy sectors. 
As owners/managers of over 12,000 tenanted properties, 
we are the UK’s largest quoted residential landlord.
12,030
Number of properties
82%
Proportion of group
operating contribution
£63.3m
Operating contribution*
Grainger Trust plus 50%
share of Bromley Joint
Venture
£1 .2bn
Property valuation
*Profit on ordinary activities before
interest and taxation Development 
and Trading
The Development and Trading Division focuses on high return,
cash-generative projects. This includes the identification and
purchase of land and investment property for residential and
mixed-use development.
£130m
Property valuation
57
Number of properties/
development sites
18%
Proportion of group
operating contribution
£1 3.6m
Operating contribution* Contents
01 Highlights of the year
02 Chairman’s statement
04 Chief executive’s statement
06 Operating and financial
review
Our business in action
12 Local market knowledge –
nationwide
14 Professional asset
management skills
16 A growing reputation 
in equity release
18 Creating value through
regeneration and
partnerships
20 Corporate Social
Responsibility 
22 Board of directors
23 Corporate governance report
25 Directors’ report
28 Remuneration committee
report
33 Independent auditors’ report
34 Financial statements 
and accounts
60 Notice of the annual 
general meeting
62 Five year record
63 Shareholders’ information
64 Glossary of terms
>
Financial highlights 
2003
£48.5m
Profit before tax
2002: £44.9m**
+8%
1 18.5p
Earnings per share
2002: 95.3p**
+24%
£21 .94
Net asset value per share*
2002: £17.24
+27%
>
16.3 1 p
Dividends per share
2002: 14.18p
+15%
*After adjusting for the market value of
trading properties and investments
**Excluding exceptional item 01
Grainger Trust plc 
Highlights of the year
> Acquisition of outstanding share of the Bromley Joint
Venture has doubled our property asset base to £1.3bn.
> With the acquisition we have confirmed our position 
as the largest quoted investor in residential property 
in the UK.
> Significant increase in exposure to life tenancies now
totalling 2,300 units.
> Development and Trading Division continues to make
progress with our appointment as preferred developer
for a major mixed-use scheme and an increased
contribution from our house building operation.
Highlights of the year
>
Grainger Trust plc 
2003
During 2003, Grainger Trust more than doubled the size of its
asset base by completing an acquisition that began in 2001. 
It has enabled us to extend our specialist capabilities in
managing a large-scale tenanted residential portfolio and
opened up opportunities to develop our life tenancy business.
In parallel, we have continued to make progress in our
development and trading activities. 
Capable 
page 14
Trusted
page 16
Specialist
page 12
£1 .3bn
Total value of property assets
2002: £0.5bn
Developing
page 18
>> 02
Grainger Trust plc 
Chairman’s statement
Profit before tax and exceptional items has increased by 8% to
£48.5m (2002: pre exceptional item £44.9m). Grainger’s own 
profit before tax and exceptional items rose 20% to £37.7m from
£31.4m, driven by a rise in profits from trading sales in our Tenanted
Residential Division. We did not acquire the outstanding interest in
Bromley until our year end and so have only included a 50% share
of its results. As expected Bromley’s pre tax profits were lower at
£10.8m from £13.5m last year because of the very significant
£330m asset disposal programme in 2002. The post tax
contribution has, however, remained relatively constant because 
the disposal programme produced a disproportionately high tax
charge. The increase in group post tax profitability has produced 
a rise of 24% in earnings per share before exceptional items to
118.5p from 95.3p. Statutory earnings per share increased by 
40% to 118.5p from 84.6p. 
Net asset value per share (‘NAV’) after adjusting for the market 
value of our trading properties and investments has risen by 27% 
to £21.94 from £17.24. NNNAV , which takes account of all deferred
tax liabilities and adjustments for the market value of our long-term
debt and financial instruments, has advanced by 16% to £13.91
from £12.03. Net asset value on a statutory balance sheet basis is
£6.01 (2002: £4.89).
For the first time we are disclosing an alternative measure of NNNAV
to take into account the potential value of the reversionary surplus in
our regulated and life tenancy portfolios. This is the difference
between the vacant possession value of our properties and the
investment or market value, and currently stands at £455m. We
have calculated the anticipated timing of the realisation of that
surplus, discounted it back to present value and then deducted 
tax. This produces a discounted post tax reversionary surplus
amounting to £111.2m or £4.49 per share. When added to NNNAV
we obtain a ‘Grainger NAV’ of £18.40 per share. Full details of the
calculation are given in the operating and financial review. 
Your directors are recommending a final dividend of 12.80p per
share (2002: 11.13p), payable on 5 March 2004 to shareholders on
the register at close of business on 13 February 2004. This together
with the interim dividend of 3.51p per share (2002: 3.05p) amounts
to a total of 16.31p per share (2002: 14.18p), an increase of 15%
for the fifth consecutive year.
During the year we successfully refinanced our Bromley Joint
Venture, comprising the BPT portfolio, lowering borrowing costs 
and enabling a dividend of £52.0m to be paid to each of the Joint
Venture partners. BPT was further rationalised during the year and
now comprises a portfolio principally of core regulated assets.
Towards the year end we acquired Deutsche Bank’s interest, to take
full control of the business. This is the major factor in the doubling 
of the group’s asset base (market value at 30 September 2003
£1,388m, 2002: £691m) and has been achieved without recourse
to shareholder funding.
Our tenanted residential business has prospered during the year
and we continued to buy additional stock. In the year Grainger
purchased a total of 1,736 units for £112.2m, and at the year end
our portfolio, including the BPT assets, stood at 12,030 units with a
market value of £1,164m and vacant possession value of £1,648m.
These acquisitions included 918 life tenancy units bought from NPI
for £40.5m, taking our total life tenancy portfolio to 2,291 units with
a market value of £134.3m.
Robert Dickinson 
Chairman
We will continue to develop our key themes;
focusing on tenanted residential activities,
particularly the regulated sector but with the
new challenge of developing the life tenancy
business, applying our property and asset
management skills to produce additional
returns for the group and maintaining the
momentum in our Development and 
Trading Division.
>
Chairman’s statement 03
Grainger Trust plc 
Chairman’s statement
Our development and trading business has generated operating
contributions of £13.6m and we have several exciting opportunities
in the pipeline. In particular, we announced in June 2003 that we
had been selected by Islington Council to develop two key mixed-
use sites in the Borough. 
The acquisition of Bromley not only brings us complete ownership
of a high quality portfolio of residential assets but also provides us
with a core of experienced and efficient staff. This, combined with
our longstanding network of external managing agents, enables us
to achieve high quality national coverage, able to supply both asset
and property management services. 
John Ward will be leaving the board at the annual general meeting.
John was appointed as a non-executive director on 24 February
1994 and has been chairman of the audit committee since 18 June
2002. He brought a high level of general commercial and detailed
banking knowledge to the group. We thank him for his very
significant contribution.
We are pleased with the progress made on the business’s
objectives in the year. In particular, the acquisition of Bromley
provides us with both the asset base and core of skilled, experienced
staff that enables us to deliver effective residential asset and
property management services on a national basis, not only for 
our own activities, but also to third parties. 
We will continue to develop our key themes; focusing on tenanted
residential activities, particularly the regulated sector but with the
new challenge of developing the life tenancy business, applying 
our property and asset management skills to produce additional
returns for the group and maintaining the momentum in our
Development and Trading Division.
The future looks both exciting and rewarding. 
Robert Dickinson
Chairman
16 January 2004
Activity profile
The Pimlico development is due
for completion in 2004.
Activity profile
Following the acquisition of the
balance of the Bromley Joint
Venture, our staff have been
actively involved in the integration
of the two companies.
99
12.4
00
16.4
01
21.1
02
44.9
Profit before 
tax* (£m)
03
48.5
99
149.3 
00
220.3 
01
295.0 
02
391.9
Share price
performance
1999-2003 (p)
03
547.0
99
35.7
00
44.1
01
52.5
02
95.3
Earnings per
share* (p)
03
118.5
99
7.13
00
9.79
01
13.56
02
17.24
Net asset
value per
share** (£)
03
21.94
99
9.32
00
10.72
01
12.33
02
14.18
Dividends per
share (p)
03
16.31
Performance of our share price
compared to the FTSE Mid 250
companies.
FTSE 250 Index
Grainger Trust
*Excluding exceptional items
**After adjusting for the market value of
trading properties and investments 04
Grainger Trust plc 
Chief executive’s statement
Rupert Dickinson 
Chief executive
The major event of the year has been the
acquisition of Bromley. This confirms our
position as the largest quoted residential
investor in the UK.
Average sale value
Sales of Grainger’s properties on
vacant possession have achieved
an average amount of £110,000,
an increase of 26% in the year
2002-03.
+
26%
>
Chief executive’s statement 05
Grainger Trust plc 
Chief executive’s statement
We started the year with four key objectives:
– to maximise the benefits from Bromley, our Joint Venture company 
– to continue to focus on our core tenanted residential business
and, in particular, to develop our life tenancy activities
– to progress our development and trading business, realising profits
where appropriate and creating effective relationships with partners
– to develop our asset and property management capabilities so
that we can offer a high quality, national service 
We are delighted to have made significant progress in all of these
areas, whilst delivering record profitability and net asset value.
Our operating divisions have performed well this year with both
Tenanted Residential and Development and Trading delivering
improved contributions. 
Once again trading profits on residential sales have been very
strong. The housing market has remained robust throughout the
year, particularly for our core properties. Typically these are slightly
below the average UK house price value and may require some
refurbishment by the purchaser. In London, where we have
approximately 43% of our tenanted residential portfolio by value, 
we noticed some weakening of the market in the early part of the
year, particularly at the higher end, but it has strengthened recently.
In the regions we have seen consistent growth. Overall Grainger’s
properties have achieved an average vacant possession sale value
of £110,000, an increase of 26% from 2002. 
We have continued to strengthen our position in the life tenancy
market. We see this sector as being an increasingly important
component of the Grainger business in the future, providing
excellent reversionary opportunities and good synergies with the
existing core regulated activities. Given the appetite shown by home
owners to realise some or all of the equity in their properties, we
believe this market has potential for significant growth.
The Development and Trading Division continues to make a
significant contribution, with good profits being made on sales of
residential land at Kennel Farm and Townsend House in Victoria.
Since the year end we have sold a further 10.9 acres for £12m at
Kennel Farm completing the major residential land sales on that site.
Future revenue is expected to arise from overage payments, the
development of the B1 site and from the sale of some minor
residential areas. Over the last five years, total revenues from Kennel
Farm have amounted to £62m. 
Our key strengths lie in our knowledge and experience of all sectors
of the residential market, including mixed-use developments, and
our ability to trade in those sectors. We will therefore concentrate on
residential or mixed-use opportunities or on projects which have a
residential bias. We are moving away from pure commercial
property investment, although we shall continue to be involved in
commercial property where we perceive residential opportunities. 
Disposals from the commercial portfolio will reduce gearing and free
up resources for our core businesses. Since the year end we have
exchanged contracts on the sale of over £20m of commercial
property. Over the next year we will continue to purchase regulated
assets and to maximise the returns that we can obtain by selling on
vacancy. We will grow our life tenancy portfolio and look for structures
enabling us to do this without putting undue strain on gearing. 
The major event of the year, however, has been the acquisition of
Bromley. This confirms our position as the largest quoted residential
investor in the UK and enables a move from a Joint Venture
business plan focused on cash generation to a platform from which
we can take a long-term view.
Following the acquisition we are restructuring the property
management division which will strengthen our ability to provide high
quality asset and property management services nationally. We
believe that this ability will be of paramount importance in raising
equity funding should a REIT (Real Estate Investment Trust) structure
for tax transparent investment vehicles be introduced in the UK.
Grainger has a valuable pool of talented and committed staff – with
the enlarged asset base now available to them we are confident of
our ability to continue to deliver excellent returns for our
shareholders.
Rupert Dickinson
Chief executive
16 January 2004
Activity profile
Major projects within our Development and Trading
Division included the profitable sales of Townsend
House in Victoria and further residential land sales
at Kennel Farm, near Basingstoke.
An effective management structure
The mix of skills within our
management teams enables
decisions to be acted upon quickly
and efficiently throughout the
business. Pictured is our London
based management team. 06
Grainger Trust plc 
Operating and financial review
Andrew Cunningham
Deputy chief executive 
and finance director
Another successful year with record levels
being achieved in our key performance
indicators – profit before tax, earnings per
share and net asset value.
Operational management 
Our North East based
management team.
>
Operating and financial review 07
Grainger Trust plc 
Operating and financial review
Performance
Tenanted Residential
During the year 655 properties were sold for a gross consideration
of £64.0m (2002: 785 for £51.0m) and trading profits rose by 25%
to £29.2m from £23.3m. Gross rents fell slightly by 1% to £16.6m
from £16.8m, reflecting the higher proportion of life tenancy
properties, which are non rent producing. This was more than
compensated for by savings in property expenses of £0.4m.
Tenanted Residential portfolio
Vacant Current Estimated
No. of possession % of Investment gross market
residential value Vacant value rent rent 
properties £m possession £m £m £m
Regulated 8,212 1,162 72 843 31 37
Assured tenancies 1,087 134 85 114 6 6
Vacant properties 440 59 86 51 ––
Life tenancies 2,291 263 51 134 ––
Other interests – 30 73 22 1 1
Total  
30 Sept 2003 12,030 1,648 71 1,164 38 44
Total  
30 Sept 2002 4,928 524 74 394 17 21
The increase in portfolio size comes from the Bromley acquisition
and from our life tenancy acquisitions – these now represent 19%
by unit number of properties owned (2002: 4%). 
Assuming sale on vacancy, the reversion on our tenanted 
residential portfolio (the difference between the vacant possession
and investment values) now amounts to £484m, or £19.55 per
share, before contingent tax. 
The average vacant possession value of our properties at 
30 September 2003 rose by 40% to £144,000 (2002: £103,000) 
as a result both of house price rises and of consolidating the higher
average value BPT portfolio. 
Bromley Joint Venture
The group acquired the balance of the Bromley Joint Venture at 
the end of its financial year and so the group profit and loss account
includes our 50% share of the Joint Venture’s results. In future years,
all of Bromley’s results will be consolidated with those of the
Grainger group. 
The cash consideration for the acquisition was £24.3m, with up to a
maximum additional amount of £10.0m payable in December 2004
if the Nationwide UK House Price Index rises by more than 10% in
the two year period to August 2004. Since the year end we have
also purchased Deutsche Bank’s outstanding loan stock and
accrued interest amounting to £15.7m.
The rationalisation of the portfolio continued with the sale of 
1,519 units raising gross revenues of £150.9m. The Joint Venture
contributed trading profits of £18.9m (2002: £26.6m) and net rents
of £8.3m (2002: £13.6m). These decreases were anticipated
because of the very significant disposal programme in 2002. 
Our share of administrative expenses fell from £7.3m to £3.9m,
reflecting the controlled scaling down of the business in line with 
the portfolio rationalisation and cost saving measures put in place. 
Development and Trading
Including profits on sales of fixed assets and writebacks of valuation
provisions this division contributed £14.6m (2002: £13.6m). 
We sold a total of 16.4 acres of development land at Kennel Farm
and adjacent sites, generating revenue of £15.5m and profits of
£8.5m. Other major revenue generators in the year have been
Townsend House (19,000 sq.ft. office block in Victoria sold for
£8.2m, profit £2.7m) and Grainger Homes, our housebuilding
division, which sold 68 units for a total of £6.0m, generating profit 
of £0.8m. Contracts have been exchanged on 62 flats out of the
total of 79 at the Pimlico development site. We anticipate these to
complete early in 2004 at a total sales value in excess of £30m. 
Administrative expenses
These have increased by 7% from £4.4m to £4.7m but at less 
than 4% of turnover are lower proportionally than last year. The
movement has arisen because of inflation and an increase in 
staff numbers. 
Regional distribution of residential
portfolio by capital value:
Geographical region value
1 Greater London 43%
2 South East 19%
3 South West 6%
4 East 7%
5 East Midlands 3%
6 West Midlands 10%
7 Wales 0%
8 Yorkshire 3%
9 North West 7%
10 North East 1%
11 Scotland 1%
Geographical region value
12 Central London 11%
13 Inner London 17%
14 Outer London 15%
1
4
2
3
6
5
7
9
8
10
United Kingdom Greater London
11
14
13
12 08
Grainger Trust plc 
Operating and financial review
Operating and
financial review 
continued
Net interest payable
Net interest payable, including our share of the Joint Venture charge
and after having taken account of last year’s exceptional charge of
£3.8m, has decreased to £28.4m from £37.6m. The group has
carried a lower average level of debt in the year, the cash generated
by the Bromley rationalisation being a major factor, and our average
rate of interest payable has been lower at 5.6% (2002: 6.5%). The
average cost of the debt in Bromley fell to 6.2% from 7.6%. Group
interest cost is covered 2.7 times by profit before exceptional items,
interest and taxation (2002: 2.2 times).
Taxation
As noted in previous years our annual tax charge is significantly
affected by FRS19, the accounting standard that prevents the
provision of deferred tax on revaluation gains when companies are
acquired. This serves to increase our effective tax rate, which this
year stands at 39.4% (2002: 49.2%); the equivalent figure for
Grainger alone is 31.5% (2002: 34.2%). Major items affecting the 
tax charge, most of which relate to Bromley, are:
£m
Group profit before tax 48.5
Tax at 30% 14.5
Adjusted for:
Additional tax on the difference between book value 
and tax value of trading properties sales 4.4
Negative goodwill released (not taxable) (1.5)
Tax on capital gains 1.7
Actual tax charge 19.1
Earnings per share and dividends
Earnings per share before exceptional items have increased by 24%
from 95.3p to 118.5p and we have increased our dividends by
15%. Dividends are covered 7.3 times by profit after taxation and
minority interest (2002: 6.7 times on a like for like basis).
Financial position
General
The group balance sheet has changed significantly since 2002 as
the acquisition of the Bromley Joint Venture has resulted in its
assets and liabilities being consolidated for the first time.
Most of our properties are held as trading stock and are therefore
shown in the balance sheet at cost. This does not reflect the true
worth of Grainger’s assets and we set out below a statement of 
our net assets with the properties restated to market value.
Proforma net asset statement
30 Sept 30 Sept
2003 2002
£m £m
Properties at market value:
Tenanted Residential 1,163.9 393.6
Development and Trading 130.0 132.1
1,293.9 525.7
Investments 10.9 153.9
Other assets 1.0 0.7
Cash 81.7 10.5
Total assets 1,387.5 690.8
Borrowings (761.2) (233.7)
Net current liabilities (68.9) (26.7)
Deferred tax/other liabilities (14.0) (3.7)
Total liabilities (844.1) (264.1)
Net assets 543.4 426.7
Fixed assets
Fixed assets in the statutory balance sheet have increased from
£21.7m to £109.1m, the major movements being the effect of 
the Bromley acquisition, £84.7m, and surpluses on revaluation of
£3.1m. Of the year end property value of £108.1m, £84.4m relates
to tenanted residential properties and £23.7m to commercial
investment properties. 
Activity profile
Grainger Homes’ residential
development in Seahouses 
will provide 77 units, all of which
are now exchanged or under offer.
Activity profile
Staff development and training
are essential aspects of our
business.
Total market value of assets
Our asset base has more than
doubled by the acquisition of
Bromley.
£1 ,388m 09
Grainger Trust plc 
Operating and financial review
Investments and intangible assets
Investment balances have decreased significantly because of 
the reclassification of the investment in the Bromley Joint Venture 
on consolidation. Other investments, being shares held in 
Grainger Trust plc for employee benefit purposes and our
investment in Schroders ResPUT, have increased in market value 
by £1.1m to £10.9m. Book value of these investments is £9.2m
(2002: £8.9m). 
The negative intangible asset of £97.2m shown in the statutory
balance sheet principally reflects negative goodwill arising on the
acquisition of Bromley. It will be released to the profit and loss
account in line with sales from the Bromley portfolio. 
Trading properties
Our trading properties can be analysed as follows:
Statutory balance sheet Market value balance sheet
30 Sept 30 Sept 30 Sept 30 Sept
2003 2002 2003 2002
£m £m £m £m
Tenanted Residential 807.2 224.4 1,079.5 393.6
Development and Trading 81.1 80.7 106.3 111.1
Total 888.3 305.1 1,185.8 504.7
The cost of our tenanted residential stock as shown in our statutory
balance sheet has increased from £224.4m to £807.2m. We acquired
£112.2m of properties in the year, had sales or write offs of £33.1m,
improvement costs of £3.2m and the balance of the movement,
£500.5m, came from the consolidation of the Bromley assets. 
The market value figures also show a significant increase from
£393.6m to £1,079.5m, of which £572.9m arises from the Bromley
consolidation. The remaining movement is due to valuation
surpluses of £48.3m and the net effect of sales, acquisitions and
transfers of £64.7m. The overall valuation increase in this portfolio
over the course of the year amounts to 9.4%. The total market
value of all our tenanted residential properties, including those
classified as fixed assets, is £1,163.9m (2002: £393.6m).
The overall value of the group’s development and trading assets
remained relatively constant over the year. The decrease in market
value from £111.1m to £106.3m is the result of the net effect of
sales at Kennel Farm and Townsend House and expenditure, 
mostly at Grainger Homes and our development in Slough. 
Other assets and liabilities
Other net liabilities, excluding current instalments due on borrowings
and cash balances, have increased from £26.7m to £68.9m. This is
largely due to the loan stock and accrued interest due to Deutsche
Bank at the year end of £15.7m and increases in sundry creditors
and taxation payable as a result of consolidating our Joint Venture
interest. 
Net assets
Net assets at market value have increased from £426.7m to
£543.4m. The major movements are:
Not
Reflected reflected
in the in the
accounts accounts Total
£m £m £m
Net assets at 1 October 2002 121.1 305.6 426.7
Retained profits 25.3 – 25.3
Revaluation surpluses:
Grainger Tenanted Residential – 30.7 30.7
Development and Trading 6.2 (5.3) 0.9
Investments – 0.8 0.8
Negative goodwill movements – (4.7) (4.7)
Effect of acquisition of Bromley (2.9) 69.3 66.4
Other share capital and reserve movements (0.8) (1.9) (2.7)
Total for the year 27.8 88.9 116.7
Net assets at 30 September 2003 148.9 394.5 543.4
Net assets per share £ 6.01 15.93 21.94
Net assets per share have increased by £4.70 from £17.24 to
£21.94, the increase coming from retained earnings less negative
goodwill of 83p, revaluation surpluses of £1.31, a one-off increase
coming from the acquisition of Bromley of £2.68 and a decrease
from sundry movements of 12p. 
To obtain the figure of NNNAV per share, adjustments to the market
value of long-term debt and derivatives and for contingent tax are
made. These amount to 31p and £7.72 per share respectively 
(2002: 48p and £4.73).
The analysis of our NAV and NNNAV is set out in figure 1 above.
Figure 1.
Analysis of our NAV and NNNAV
Market
Statutory Market value NNNAV
balance valuebalance Contingentbalance
sheet adjustments sheet FRS13 tax sheet
£m £m £m £m £m £m
Properties 996.4 297.5 1,293.9 –– 1,293.9
Investments/other assets 10.2 1.7 11.9 –– 11.9
Negative goodwill (97.2) 97.2 –– – –
Cash 81.7 – 81.7 –– 81.7
Total assets 991.1 396.4 1,387.5 –– 1,387.5
Borrowings (761.2) – (761.2) (11.0) – (772.2)
Net current liabilities (68.1) (0.8) (68.9) –– (68.9)
Provisions/contingent tax (12.8) – (12.8) 3.3 (191.3) (200.8)
Minority interest (0.1) (1.1) (1.2) –– (1.2)
Total liabilities (842.2) (1.9) (844.1) (7.7) (191.3) (1,043.1)
Net assets 148.9 394.5 543.4 (7.7) (191.3) 344.4
2003 Net assets per share £ 6.01 15.93 21.94 (0.31) (7.72) 13.91
2002 Net assets per share £ 4.89 12.35 17.24 (0.48) (4.73) 12.03 10
Grainger Trust plc 
Operating and financial review
Gearing on a revalued balance sheet basis has moved to 125% 
from 52%.
Cash flow
The significant elements in Grainger’s cash flow were:
£m
Receipts
Net rents and other income 13
Property sales 95
Net new loans 34
Cash acquired on acquisition of subsidiaries 75
Dividends from Joint Venture 52
269
Payments
Interest, tax and dividends 26
Acquisition of subsidiaries 26
Property acquisitions 139
Working capital movements/other costs 7
198
Increase in cash in the year 71
The Grainger business is by its nature strongly cash generative. 
Net income from rents and property sales amounted to £108m 
(2002: £96m). 
Turnover
Turnover increased 14% to
£118.0m from £103.5m.
£1 18m
Activity profile
The increase in the size of the
Tenanted Residential portfolio 
is a result of our Bromley 
and life tenancy acquisitions –
these now represent 19% 
by unit number of properties
owned (2002: 4%). 
Operating and
financial review 
continued
Tenanted Residential 
trading profits
Trading profits rose by 25% from
£23.3m to £29.2m.
+
25%
We have also calculated a ‘Grainger NAV’. This reflects our estimate
of the present value of the reversionary surplus in our regulated and
life tenancy portfolios, being the difference between vacant
possession value and market value after tax. Using our knowledge
of the age profile of these tenants we have estimated the expected
average timing of future vacancies (based on standard current
mortality rates, which may change in the future) and the subsequent
realisation of the reversionary surpluses. We have calculated the
present value of those surpluses net of tax using 8.9% (our weighted
average cost of capital plus a risk premium of three percentage
points) as a discount rate. This adjustment increases NNNAV by
£4.49 per share to £18.40 per share (2002: £14.43). Our calculation
is based upon current house prices, i.e. no future house price
movement is assumed. 
Cash and debt
Cash balances at the year end amounted to £81.7m (2002: £10.5m),
of which £53.8m (2002: £6.6m) is held by lenders awaiting
substitution of alternative security, represents deposits received 
or acts as security for cash backed loan notes.
Group borrowings have increased from £233.7m to £761.2m, 
as the Bromley debt is now consolidated into the Grainger balance
sheet. This debt, amounting to £493.7m, remains non-recourse 
to the rest of the Grainger group. New borrowings in the year
amounted to £64.0m (2002: £47.1m); these were used to finance
the acquisition of the Joint Venture and the NPI life tenancy portfolio.
Loan repayments were £30.2m (2002: £38.4m).  11
Grainger Trust plc 
Operating and financial review
Capital management
The group finances its operations through a combination of
shareholders’ funds and borrowings and seeks to optimise its
weighted average cost of capital (‘WACC’). The estimated WACC 
of the group at 30 September 2003 was 5.89% (2002: 6.34%).
The main source of borrowings are banks and building societies 
but the group also has fixed rate institutional debt of £19.9m 
(2002: £20.5m). The group protects its underlying profitability 
from treasury risk by managing both its level and cost of debt. 
The group does not take trading positions in financial instruments
but holds them to minimise the risk of exposure to fluctuating interest
rates. The majority of our debt is maintained at fixed rates of interest
or is subject to protective caps or collars. At 30 September 2003,
£611.7m (80%) of the group debt was either fixed to termination, 
or for over one year, or was protected by financial instruments
(2002: £185.5m, 79%). 
A combination of interest rate swaps and financial caps is used to
provide a degree of certainty over future interest rate costs whilst
enabling the group to take advantage of any favourable short term
rates. At 30 September 2003 the group held £298.4m of swap
contracts at an average rate of 5.4% maturing between June 2006
and September 2013 (2002: £87.5m at an average rate of 5.3%).
There were also financial caps in place of £235.1m at an average
pre margin rate of 6.1%, expiring between February 2004 and
December 2009 (2002: £102.5m at an average rate of 6.5%).
A summary of our borrowings is:
Principal Interest
£m payable % Repayable
Permanently fixed 78.2 8.1 2004-32
Hedged by swap contracts 298.4 6.6 2006-12
Hedged by financial caps 235.1 5.0 2004-09
Variable/fixed under one year 149.5 4.7 2004-22
Total debt 761.2 5.9
Less: cash (81.7)
Net debt 679.5
The notional effect of the fair value adjustment of marking the
group’s fixed rate debt and derivatives to current market rates
(‘FRS13 adjustments’) would be to produce an additional ‘liability’
after tax of £7.7m or 31p per share (2002: 48p). This adjustment
represents approximately 1% of group gross borrowings at 
30 September 2003 and will not be recognised in the accounts 
until the position matures or is terminated.
The group also maintains a range of borrowing maturities to enable 
it to balance continuity of funding with flexibility. At 30 September
2003 the average duration of the group’s debt was 6.0 years 
(2002: 6.9 years).
Since the year end we have announced the repayment of the
outstanding £2.5m balance of our 2024 quoted debenture stock 
at an early redemption cost of £1.8m. The administrative burden
associated with this relatively small level of debt exceeded the
benefit we obtained from it.
Andrew Cunningham
Deputy chief executive 
and finance director
16 January 2004
Activity profile
During the year we completed the
refurbishment and sale of Evelyn
Gardens, London SW7. Specialist
On our way to becoming the largest quoted residential
investor in the UK, we have acquired an unrivalled specialist
knowledge of the tenanted residential sector.
Local market 
knowledge – 
nationwide
12
Grainger Trust plc 
Our business in action
>
Trading profit in our core business is derived
from the buying and selling of residential
property.
During the year, Grainger bought 1,736
properties with a value of over £112m and
sold 655 with a total value of £64m; in
addition BPT sold 1,519 properties for £151m.
This volume of transactions within the
residential sector demands a high degree 
of commercial, legal and administrative
capability in addition to an in-depth
knowledge of local market forces and trends. 
Our highly experienced acquisition teams
have developed a network of contacts who
provide a steady stream of opportunities, 
from individual properties to sizeable
portfolios. As property specialists in their own
right, the acquisition teams are able to assess
the potential of each opportunity, in the light
of local and national market criteria. 
Similarly, our sales teams are highly skilled 
in assessing values and making measured
judgements as to the level of refurbishment
that may be required to optimise the return 
on our investment. We believe that through
these processes we are able to achieve out-
performance. All refurbishments are carried out to
the highest quality based on a clear
understanding of current market
demands.
13
Grainger Trust plc 
Our business in action
In 2003, we purchased tenanted
residential properties with a total
value of £112m compared with
£85.8m in 2002.
£1 12m
Our acquisition teams work alongside
agency contacts to identify investment
opportunities. Capable
The management of a portfolio of over 12,000 tenanted residential
properties with an investment value of £1.2bn demands a 
co-ordinated and consistent professional management approach.
Professional asset
management skills
14
Grainger Trust plc 
Our business in action
>
In 2003, the size of our tenanted residential
portfolio rose from 4,928 properties to 12,030,
mainly as a result of full acquisition of BPT 
via the Bromley Joint Venture. This high level
of growth has been challenging, but the
experience and knowledge within the
management and administrative teams at
Grainger Trust and the former BPT have
ensured that the integration and rationalisation
process is being achieved efficiently and
effectively. 
Our nationwide business now operates through
six offices, each of which is responsible for
understanding the dynamics of its local
market and maintaining firm control of
management issues. Good communication
between the senior management team and
the regional network ensures rapid feedback
from local markets. 
We have continued to invest in new IT systems
to enhance management control of the
portfolio and provide quick access to the
most relevant information.
Our proven asset management capability is
now being successfully deployed on behalf 
of Schroders Residential Property Unit Trust,
for whom we manage over 1,000 properties,
most of which have recently been constructed
and are let on assured shorthold tenancies. Our property managers undertake
regular inspections of properties and
provide a proactive and entrepreneurial
approach.
15
Grainger Trust plc 
Our business in action
1,000
+
We now manage over 1,000 properties
for Schroders Residential Property 
Unit Trust.
Our residential portfolio is managed 
by a network of six offices, giving us
a nationwide presence:
Altrincham – Cheshire
Epsom – Surrey
Harborne – Birmingham
Knightsbridge – London
Martlesham – Suffolk
Newcastle upon Tyne – Tyne & Wear
We continue to invest in developing
strong management tools such as a
‘best practice’ intranet guide. Trusted
Our experience, reputation and scale in the property sector
have enabled us to build an opportunity for growth in home
reversion plans.
A growing
reputation in
equity release
16
Grainger Trust plc 
Our business in action
As pension income becomes less assured,
many homeowners are looking to release
capital tied up in their homes in order to fund
a better lifestyle in retirement.
Through our Bridgewater brand, we offer
homeowners the opportunity to receive a cash
lump sum and rent free occupation for life in
return for ownership or part-ownership of the
customer’s home. On vacancy, the property is
sold and a trading profit is realised.
Bridgewater is one of the main players in this
sector and is a long-standing member of Safe
Home Income Plans (SHIP), a body set up to
promote fair equity release plans and protect
the interests of planholders by ensuring
adherence to a code of practice. 
With the acquisition of BPT in 2003, our
portfolio now comprises almost 2,300 homes,
valued at £134m, and we foresee further
significant growth in this sector.  
> £134m
Our life tenancy portfolio has
increased in size from £10m in
2002 to £134m in 2003.
17
Grainger Trust plc 
Our business in action
Our Bridgewater brand offers customers
the opportunity to sell their property
ownership in return for a rent free
occupation for the rest of their life.  Developing
Successful development of land or property is a collaborative
exercise in which our skills and assets can generate benefits
for customers, communities and shareholders.
Creating 
value through 
regeneration 
and partnerships
18
Grainger Trust plc 
Our business in action
>
Covering land development, house building
and mixed-use development, our development
and trading activities are becoming increasingly
focused on the residential sector.
We can now offer a total development solution,
from the initial promotion of greenfield/
brownfield sites by our land development team
to the physical construction of buildings by
Grainger Homes, our housebuilding subsidiary. 
We are actively seeking investment
opportunities where we can promote higher
density or mixed-use development through 
the planning process. 
Affordable housing is becoming an increasingly
important consideration in relation to
regeneration proposals, and we have developed
closer links with affordable housing providers.
We have established a number of joint venture
agreements with both individuals and corporates
aimed at generating revenues through
development or trading. With our entrepreneurial
approach, decisive management style, access
to funding and experience in residential and
commercial sectors, we are well placed to add
significant value. We will continue to build links
with key business partners. 19
Grainger Trust plc 
Our business in action
£62m
Over the last five years, total revenues
from Kennel Farm (opposite) near
Basingstoke, have amounted to £62m. 
Our reputation and straightforward
approach have enabled us to
establish strong joint venture
relationships with key partners. 20
Grainger Trust plc 
Corporate Social Responsibility 
Corporate Social Responsibility – Policy
Grainger Trust plc is a property trading and development business.
We manage residential and commercial space as well as
undertaking commercial and residential developments. We
understand that our activities can have an impact on the
surrounding environment through the consumption of resources
and generation of waste and pollution. We also have an impact on
society, local communities and our employees. Grainger Trust plc
seeks to address these impacts by:
– identifying areas where we have an impact on the environment
and society, either positive or negative, and ensuring that these
impacts are managed effectively; 
– integrating environmental and social issues into business
strategies and developing objectives and targets to continually
improve our environmental and social performance;
– ensuring that we treat our tenants in a fair and responsible
manner;
– encouraging and supporting our employees in developing 
their careers within Grainger Trust and continuing to share 
our success with them;
– complying with relevant environmental and social legislation
and standards of relevance to the industry sectors in which 
we operate;
– preventing pollution where feasible and minimising the use 
of resources and the generation of waste where practical;
– working with all stakeholders who have an interest in our
business to improve our CSR performance;
– reporting on our CSR strategy and objectives with the aim 
of being transparent and providing relevant factual information
to our stakeholders.
These social and environmental goals will be implemented 
through the formation and achievement of objectives and targets
in the Grainger Trust Corporate Social Responsibility Strategy. 
This policy is fully endorsed and supported by:
Rupert Dickinson
Chief executive
Grainger Trust plc
Three year objectives
1 To identify CSR issues and develop a strategic
response to stakeholder information requests.
2 To formalise Human Resources systems to provide
support and appropriate CSR training for all staff.
3 To structure our approach to charitable giving 
and community support. 
4 To ensure compliance with all applicable social 
and environmental legislation as a minimum.
Highlights
Human Resources – providing employee support
We have an enlightened attitude towards our employees and a
proactive employee reward scheme that encourages participation
and provides staff with a clear path to reward and recognition for
success. Training schemes are being introduced for all staff to
support their continuing professional development. This has led to
excellent retention rates. Staff are also asked to invest in the future
of the company through SIPS and Save as You Earn Schemes.
These schemes ensure that staff are involved and rewarded for the
success of Grainger Trust. Employees are encouraged to put
forward ideas and initiatives to support local community activities
and charitable enterprises. We have a policy of matching any money
raised by staff for local charities and allowing staff to promote these
activities in the workplace.
BALTIC exhibition – sponsoring the Arts
By our stated objective of reinvestment in the community through
the arts, we have recently part-sponsored Antony Gormley’s Domain
Field at the BALTIC Centre for Contemporary Art in Newcastle 
upon Tyne. 
From February to May 2003, BALTIC's largest art space became 
the site of the creation of a new and ambitious work by the
internationally recognised artist. 
As part of the exhibition, volunteers aged from two to eighty-five
years old from Gateshead and Newcastle were moulded in plaster
by teams of specially trained staff. These moulds were then used 
to construct the individual 'Domain' sculptures by a process of
welding steel elements together inside each mould. An individual
Domain is constructed of stainless steel bars of various lengths, 
with the finished installation including a collection of more than 
250 sculptures. 
We also have artists in residence at two of our housing
developments in the region.
Widdrington – regenerating a community
In the late 1990s we took the decision to increase the investment 
of our Land Development Division in the North East. A significant
addition to this investment and our North East landholding in 2001
was the purchase of 600 acres at Widdrington and Hadston. This
made us the first major private investor in the area for many years.
At Widdrington, we were encouraged by the local community forum
Generating local interest
A Shields Gazette article featuring
football legend Pele, Grainger
Trust and pupils from Brinkburn
Comprehensive School.
Corporate Social Responsibility 
> 21
Grainger Trust plc 
Corporate Social Responsibility 
to become involved in several projects promoted by the East
Northumberland Regeneration Initiative. Liaison with the local
community and public sector led to the delivery of a new Primary
Health Care Centre and refurbished shopping centre. Following
community concerns about its future on the edge of the proposed
housing development we also bought the semi-natural ancient
woodland known as Grange Wood. The new development at
Widdrington will revitalise local services and be consistent with the
Regional Planning Guidance objective of regenerating the coalfield
area. Following our success at Widdrington, we were chosen by
Castle Morpeth Borough Council to re-develop the Park View
Estate, Hadston.
Eco-homes – sustainable developments
As part of the Northumberland Regeneration Project we agreed to
purchase an area of land designated for 20 Scandinavian timberclad
homes which are built to include a number of sustainable design
features. We are the co-ordinator of this self-build project. Members
of the local community have priority and can opt to complete the
projects themselves under our supervision or pay a fee to the house
production company to have them erected. As a result of this
experience in sustainable building and design, we have developed 
a Method Statement for recycling building materials. We are also
considering building in a requirement to use water-recycling systems
in managed housing estates.
Sponsored visit – Pele
We sponsored a recent visit to the North East by Pele, the
internationally renowned Brazilian footballer. The main reason for
Pele’s trip was to launch a photographic exhibition at Northumbria
University featuring images of him created by some of the world’s
most celebrated artists and photographers. 
Pupils from Brinkburn Comprehensive in South Shields also met 
the footballer. A Brazil football shirt was donated to the school and
signed by Pele, who offered words of encouragement to pupils
involved in the school football teams.
External Commentary
Casella Stanger are pleased to be invited to comment on Grainger
Trust’s publication of their first Corporate Social Responsibility (CSR)
Policy. We undertook CSR Gap Analysis in August 2003 to identify
the environmental, social and community issues associated with
Grainger Trust’s activities, to assess current performance and to
develop a CSR strategy.
The CSR Gap Analysis was carried out through analysis of existing
business systems, document review and a series of interviews with
key Grainger employees against best practice. Best practice
guidance used for reference included the Global Reporting Initiative,
Environmental Management System Standard ISO 14001 and the
Business in the Community Corporate Responsibility Index.
In our opinion, some of the CSR activities undertaken by Grainger
Trust are considered to be extremely innovative and forward
thinking. Grainger Trust has an enlightened attitude towards human
resources and an extremely proactive employee reward scheme.
Staff are also encouraged to put forward ideas and initiatives to
support local community activities and charitable enterprises are
actively supported by Grainger Trust.
Grainger Trust has a high level of interest and enthusiasm in
implementing CSR issues, particularly those related to community
issues. There is however a need to formalise existing systems and
develop systems where these are currently lacking to cover the full
CSR agenda and to report on progress. It is anticipated that the 
CSR Policy and Strategy will achieve this.
We look forward to working with Grainger Trust as it develops its
CSR reporting in future years.
Emma Griffiths Ken Smith
Principal Consultant Director, Environmental Management
Casella Stanger Sustainability & Risk
Casella Stanger
Antony Gormley and 
Grainger Trust
The Domain Field exhibition 
at the BALTIC Centre in Newcastle
upon Tyne, which was partly
sponsored by Grainger Trust.
Eco-homes
A sustainable house development
built on regenerated land
incorporating recycled materials.
Creating a community
Doctor’s surgery and playground
site at Widdrington – part of a
local community investment
project in association with East
Northumberland Regeneration
Initiative. 22
Grainger Trust plc 
Board of directors
123
4 567
8910
1. Robert Dickinson 
C.B.E., D.L.*
Chairman, chairman of
nomination committee
Aged 69, Solicitor. Appointed 
a director of the company in
1961, and chairman in 1992.
Chairman of Northern Investors
Company PLC, chairman of
University of Newcastle upon
Tyne Development Trust.
2. Stephen Dickinson F .C.A.*
Deputy chairman, member of
nomination committee
Aged 69, Chartered Accountant.
In practice in British Virgin Islands
1963-1974. Appointed managing
director of the company in 1974.
Upon retiring as managing
director in October 2002, became
deputy chairman. British Virgin
Islands representative on United
Kingdom Overseas T erritories
Association since 1993.
3. Rupert Dickinson M.R.I.C.S.
Chief executive
Aged 44, Chartered Surveyor.
Joined the company in 1992 from
Richard Ellis (now C.B. Richard
Ellis). Appointed a director of the
company in 1994. Appointed
chief executive in October 2002.
4. John Barnsley F .C.A.*
Member of audit and
remuneration committees
Aged 55, Chartered Accountant.
Appointed a director of the
company in 2002. Non-
executive director of Syltone
PLC and Northern Investors
Company PLC. Until December
2001 was a Senior Partner at
PricewaterhouseCoopers.
5. John Ward O.B.E., D.L.*
Chairman of audit committee 
and member of remuneration
committee
Aged 70. Appointed a 
director of the company in
1994. Director of Northern
Investors Company PLC.
6. Robin Herbert C.B.E.*
Senior independent non-
executive director, member 
of audit and nomination
committees
Aged 69. Appointed a director
of the company in 1994.
Appointed senior independent
non-executive director in June
2002. Chairman of Leopold
Joseph Holdings PLC, Investors
Capital Trust plc and F&C
Income Growth Investment 
Trust PLC.
7. Andrew Cunningham F .C.A.
Deputy chief executive and
finance director
Aged 47, Chartered Accountant.
Joined Deloitte Haskins and
Sells in London in 1978 and
worked in their Nairobi and
Bristol offices before being
made a partner in Newcastle in
1989. Appointed a director of
the company in December
1996. Appointed deputy chief
executive in December 2002.
8. Nichola Pease B.A.*
Chairman of remuneration
committee
Aged 42. Appointed a director
of the company in June 2001.
Chief executive of J.O. Hambro
Capital Group Limited and a
director of Northern Rock plc.
9. Robert R.S. Hiscox M.A.,
A.C.I.I.*
Member of remuneration
committee
Aged 61. Appointed a director
of the company in March 2002.
Chairman of Hiscox plc. Deputy
chairman of Lloyd’s 1993 to
1995.
10. Sean Slade M.R.I.C.S.
Director of development
Aged 39, Chartered Surveyor.
Joined the company in 1996
and appointed director in June
2002. He is the main board
director responsible for the
group’s commercial and mixed-
use development and trading
activities. Previously at Richard
Ellis (now C.B. Richard Ellis) and
Hill Samuel Asset Management.
*Non-executive
Board of directors
> > 23
Grainger Trust plc 
Corporate governance report
Corporate governance report
Grainger Trust plc is fully committed to the principles of good
corporate governance. This report sets out how the group has
applied the principles set out in section 1 of the Combined Code.
The Joint Venture fell outside the scope of the group’s corporate
governance during the year, but will now be included following the
acquisition of the remaining 50% on 26 September 2003.
The board
At the year end the board comprised three executive directors and
seven non-executive directors, including the chairman. The non-
executive directors bring to bear a wide variety of experience and
skills. Robin Herbert is the senior independent non-executive
director.
The board meets four times a year and at such meetings receives 
a full pack of information covering current trading performance,
budgets, forecasts and details of business opportunities and risks.
These packs also contain those matters which require full board
discussion and approval.
Procedures are in place to enable the directors to take independent
external advice when necessary, at the company’s expense, and 
to have direct access to the company secretary if required. Where
necessary, appropriate training is provided to new appointees to 
the board. On 14 October 2002, Stephen Dickinson resigned as
managing director and became non-executive deputy chairman. 
At the annual general meeting on 27 February 2003, Robin Oldfield
resigned as a non-executive director. John Barnsley was appointed
by the board as a non-executive director on the same date. Given
his experience, training was not considered necessary. All directors
are subject to formal re-election every three years at the annual
general meeting and are appointed for one or two years under
specific contracts. Directors appointed during the year are 
subject to formal re-election at the next annual general meeting.
Board committees
The board has established three committees: audit, nomination and
remuneration. Membership of these committees is shown on the list
of directors on page 22 and the remuneration committee report is
set out on pages 28 to 32.
The audit committee meets four times a year, has written terms 
of reference and consists solely of non-executive directors. The
committee monitors the effectiveness of internal controls and
receives external and internal audit reports. The committee is also
responsible for ensuring that the external audit function remains
cost effective, independent and objective.
The nomination committee consists of two non-executive directors
and one executive director. It meets to consider the need for and
suitability of all potential new board members.
Shareholder relations
The company meets regularly with institutional shareholders 
and analysts and uses the annual general meeting to encourage
communication with private investors. The chairmen of the three
board committees attend the annual general meeting and are
available to answer any questions. The notice of the meeting 
and related papers are sent to shareholders at least 20 working
days before the meeting. Shareholders vote separately on each
proposal and a proxy count is available after each resolution. 
A separate resolution to approve the remuneration committee 
report is proposed at the annual general meeting.
Internal control
The group’s systems of internal control are the ultimate responsibility
of the board of directors. Such systems are designed to manage
rather than eliminate the risk of failure to achieve business
objectives and can provide only reasonable and not absolute
assurance against material misstatement or loss. Each year, on
behalf of the board, the audit committee reviews the effectiveness
of these systems, which are aimed at maintaining full and effective
control over appropriate strategic, financial, operational and
compliance issues. This is achieved primarily by consideration of 
the risks appertaining to the group and the monitoring of these
risks, together with a review of the half year and annual financial
statements and by discussion with the external auditors. In addition,
the group has an internal audit programme, under which specific
areas of its activities are reviewed and reported upon on a regular
basis. The committee considers any issues or risks arising
therefrom in order that appropriate action can be undertaken 
for their satisfactory resolution.
The group has an appropriate organisational structure which is
designed to allow the board to retain full control of the business. 
The group produces an annual budget together with longer term
projections, which are presented to and approved by the board 
of directors. At each meeting, the board discusses performance
against the budget and, where applicable, any revisions made to
the profit and loss and cash flow budgets.
The board also discusses in detail, the projected financial impact of
major proposed acquisitions and disposals, including their financing.
All such proposed substantial investments are considered by all
directors and decisions are made either by the board of directors 
or, where required between board meetings, by an executive
committee of directors. The board is also responsible for the
discussion and approval of the group’s treasury strategy, including
mitigation against changes in interest rates.
Going concern
After making enquiries, including the review of future anticipated
cash flows and banking covenants, the directors have a reasonable
expectation that the group and company have adequate resources
to continue in existence for the foreseeable future. For this reason,
they continue to adopt the going concern basis in preparing the
accounts. 24
Grainger Trust plc 
Corporate governance report
Compliance statement
With the exception of the provisions listed below, the company has,
throughout the year ended 30 September 2003, been in compliance
with the Code.
Code provision
A3.2, B2.2, D3.1 Independence
The board considers that all non-executive directors are able to
bring independent judgement to bear on key issues. It feels that
longevity of service is an important attribute in a long-term business
as it provides both continuity and understanding. It also feels that
material shareholdings and cross directorships do not represent a
materially conflicting business relationship. Consequently, the board
does not view any of longevity of service, cross directorships or
material shareholdings in isolation as representing an impairment 
to independence.
Given this statement, the board believes that all non-executive
directors with the exception of Robert Dickinson and Stephen
Dickinson, are independent. Under the terms of the Code, 
however, only Nichola Pease is considered independent.
B1.7 to B1.10 Length of contracts
Two of the executive directors have contracts of over one year with
no specific provisions for compensation for loss of office. The board
feels that this is necessary to ensure commitment and long-term
continuity in achieving the group’s objectives, which by virtue of the
group’s activities are also long-term in nature. However, their original
two year contracts are being reduced to one year over a period of
five years from 1 October 2002.
By order of the board
Marie Glanville
Company secretary
16 January 2004 25
Grainger Trust plc 
Directors’ report
Directors’ report
For the year ended 30 September 2003. 
The directors present their report and the audited financial
statements for the year ended 30 September 2003.
Principal activities
During the year the group has continued its activities of property
trading and development.
Review of business development and prospects
Development of the group’s activities and its prospects are reviewed
in the chairman’s statement on pages 2 and 3 and the chief
executive’s statement on pages 4 and 5.
Results for the year
The results of the group are set out in the consolidated profit and
loss account on page 36 which shows a profit on ordinary activities
after taxation for the financial year of £29.4m (2002: £20.9m).
An interim dividend of 3.51p per share (2002: 3.05p) was paid on 
25 July 2003 amounting to £0.8m (2002: £0.7m) and the directors
recommend the payment of a final dividend of 12.80p per share
(2002: 11.13p), to be paid on 5 March 2004, amounting to £3.2m 
(2002: £2.8m). The profit, after dividend, of £25.3m (2002: £17.4m)
will be transferred to reserves.
Directors
The directors of the company at 30 September 2003 are listed on
page 22. 
Directors’ and other interests
The interests of the directors in the shares of the company at 
30 September 2003 and 5 January 2004, with comparative 
figures as at 1 October 2002 (*or date of appointment, if later), 
are as follows:
Ordinary shares of 25p each (thousands)
Beneficial Non-beneficial
1 Oct* 30 Sept 5 Jan 1 Oct* 30 Sept 5 Jan
2002 2003 2004 2002 2003 2004
Robert Dickinson 233 222 202 526 494 481
Stephen Dickinson 800 780 771 594 576 541
Rupert Dickinson 135 182 249 51 46 46
Robin Herbert 50 50 50 –– –
Andrew Cunningham 38 73 74 –– –
John Ward ––– –– –
Nichola Pease 71 71 71 175 37 37
Robert Hiscox ––– 2,650 2,500 2,500
Sean Slade 23 40 32 –– –
John Barnsley 1 2 2 –– –
1,351 1,420 1,451 3,996 3,653 3,605
Shares held in trust of which Robert Dickinson is a trustee, included in the above beneficially owned by:
Stephen Dickinson 4 2 1 –– –
Rupert Dickinson 4 2 1 –– –
Andrew Cunningham 2 2 1 –– –
Sean Slade 3 2 1 –– –
Shares held in trust of which Robert Dickinson and Stephen Dickinson are both trustees, included in the above non-beneficial holdings:
––– 32 14 14
Details of directors’ share options are given on page 32. Save as disclosed above, as at 5 January 2004, the company is
aware of the following interests amounting to 3% or more in the
company’s shares:
Holding Holding
(thousands) %
Schroder Investment Management Limited* 1,965 7.94
Aberforth Partners* 1,261 5.09
Henderson Global Investors* 1,144 4.62
ISIS Asset Management* 1,021 4.12
Barclays Global Investors* 826 3.34
*Shares held by funds managed or advised by the company
indicated and/or its subsidiaries. The company is not aware of 
any other substantial interests amounting to 3% or more.
Retirement and rotation of directors
John Ward is retiring from the board of directors at the annual
general meeting being held in February 2004. John Barnsley was
appointed a director on 27 February 2003, and in accordance with
the Articles of Association, will offer himself for re-election at the
annual general meeting. Robert Dickinson and Robin Herbert retire
by rotation and, being eligible, offer themselves for re-election at the
annual general meeting.
Directors’ interests in significant contracts
No directors were materially interested in any contract of significance.
Insurance of directors
The group maintains insurance for Grainger Trust plc’s directors in
respect of their duties as directors.
Statement of directors’ responsibilities
The directors are required by UK company law to prepare financial
statements for each financial year that give a true and fair view of the
affairs of the company and the group as at the end of the financial
year and of the profit or loss of the group for that period.
The directors confirm that suitable accounting policies have been
used and applied consistently and reasonable and prudent
judgements and estimates have been made in the preparation of 
the financial statements for the year ended 30 September 2003. 
The directors also confirm that applicable accounting standards
have been followed and that the financial statements have been
prepared on the going concern basis.
The directors are responsible for keeping proper accounting records
that disclose with reasonable accuracy at any time the financial
position of the company and the group and enable them to ensure
that the financial statements comply with the Companies Act 1985.
They are also responsible for safeguarding the assets of the
company and of the group, and hence for taking reasonable steps
for the prevention and detection of fraud and other irregularities.
The annual report and accounts will be published on the group’s
website. The maintenance and integrity of the group’s website is the
responsibility of the directors. The work carried out by the auditors
does not include consideration of these matters. Legislation in the
United Kingdom governing the preparation and dissemination of
financial statements may differ from legislation in other jurisdictions.
Special business
Resolution 8, which will be proposed as a special resolution,
supplements the directors’ authority to allot shares in the company
given to them by resolution 7 passed at the annual general meeting
of the company held on 29 February 2000. This authority has been
conferred at successive annual general meetings of the company.
Section 89 of the Companies Act 1985 requires a company
proposing to allot equity securities for cash to offer them first to
existing shareholders in proportion to their existing shareholdings. 
If resolution 8 is passed, the requirement imposed by section 89 will
not apply to allotments by the directors in two cases:
1 in connection with a rights (or similar) issue; and
2 allotments of shares for cash up to a total nominal value of
£310,033 (representing 5% of the company’s issued ordinary
share capital at the date of the notice).
The board also confirms its intention that equity securities equivalent
to no more that 7.5% of the issued ordinary share capital of the
company will be allotted for cash on a non pre-emptive basis during
a rolling three-year period, in line with institutional investor guidelines.
This authority will lapse not later than next year’s annual general
meeting except in so far as commitments to allot shares have been
entered into before that date.
Resolution 9, which will be proposed as a special resolution, seeks
to give authority for the company to purchase its own shares in the
market. The proposed resolution sets out the maximum number of
shares which may be purchased (15% of the company’s issued
ordinary share capital), the maximum and minimum prices which the
company may pay for its shares and the date of expiry of the
authority conferred by this resolution. This authority gives the
company greater flexibility in managing its capital resources.
Your directors would only intend to exercise the authority sought at
the annual general meeting to ensure that the company maintains an
efficient capital structure. The authority will only be exercised when,
in the light of market conditions, your directors believe that the effect
of such purchases would be to increase shareholder value, having
taken into consideration the impact of such purchases on both
earnings and net asset values per share, and that the purchases
would be in the best interests of the company’s shareholders
generally. Any shares purchased under the authority may be
cancelled (and the number of Grainger Trust shares in issue will be
reduced accordingly) or may be held in treasury so as to be available
to be sold at a later date, subject to the restrictions set out in
resolution 8 or its equivalent in force at the time. 
26
Grainger Trust plc 
Directors’ report 27
Grainger Trust plc 
Directors’ report 
The total number of ordinary shares covered by options or warrants
as at 5 January 2004, the latest practicable date prior to publication
of this document, is 273,325, representing 1.1% of the issued
ordinary share capital of the company (1.3% of the issued ordinary
share capital of the company assuming full exercise of the power to
purchase shares contained in resolution 9).
Acquisitions
On 2 December 2002, the company acquired a 100% interest 
in Upminster Holdings Ltd. On 13 December 2002 the company
acquired 100% interests in BPT Peachey Limited, BPT (Peachey 
No 2) Limited, Hamsard 2492 Limited, BPT Bridgewater (Home
Reversions No 1) Limited, BPT Bridgewater (Home Reversions 
No 2) Limited and Hamsard 2342 Limited from its Bromley Property
Holdings Limited Joint Venture. Finally, on 26 September 2003, 
the company acquired the remaining 50% of Bromley Property
Holdings Limited from its Joint Venture partner. Full details of 
these acquisitions are shown in notes 26 and 27 to the financial
statements. 
Creditor payment policy
It is the group’s policy to pay suppliers in accordance with their
normal terms and conditions of trading. Payment in respect of the
purchase of property is subject to and will comply with contractual
terms. Trade creditors existing at 30 September 2003 relating to
purchases of property stock generally complete 28 days after
exchange of contracts. Trade creditor days relating to other trade
creditors of the company and group were calculated as 38 days
(2002: 39 days).
Charitable donations
During the year charitable donations were made by the group to 
a number of charitable organisations for a variety of charitable
purposes, amounting to £4,480 (2002: £3,942).
Health and safety
The company seeks to achieve the highest standards in respect 
of health and safety of employees, and the safety of tenants.
Consultants are employed to ensure that the company complies
with health and safety regulations and each year the gas supply and
appliances within all of the group’s relevant residential properties are
independently inspected under the Gas Safety (Installation and Use)
Amended Regulations 1996 and certificates of compliance issued.
A formal Health and Safety policy for employees was introduced
during the year.
Employment of disabled persons
The company gives full and fair consideration to applications for
employment made by disabled persons, having regard to their
particular aptitudes and abilities. In the event of an employee
becoming disabled every effort is made to ensure that their
employment within the company continues and that appropriate
training is arranged where necessary. It is the policy of the company
that the training, career development and promotion of disabled
persons should, as far as possible, be identical to that of other
employees.
Auditors
PricewaterhouseCoopers LLP have expressed their willingness 
to continue in office as auditors to the company. A resolution to
reappoint them as auditors to the company will be proposed at 
the next annual general meeting. 
Issue of own shares
As disclosed in note 20 to the financial statements, the company
issued 18,151 25p ordinary shares during the year for an aggregate
consideration of £71,754.
Post balance sheet event
On 21 November 2003, the company announced the early
redemption of its 2024 quoted debenture stock, of £2.5m. 
There was an associated early redemption cost of £1.8m.
By order of the board
Marie Glanville
Company secretary
16 January 2004 Remuneration committee report
The remuneration committee is responsible for detailed consideration
of the directors’ remuneration packages and makes its
recommendations to the whole board.
The committee comprises Nichola Pease (chairman), John Ward,
John Barnsley and Robert Hiscox all of whom are non-executive
directors. Meetings are held at least twice a year and advice on
various matters has been received from Stern Stewart & Co. The
remuneration of the non-executive directors is determined by the
board as a whole. No director participates in setting his/her own
remuneration. 
The committee is directly accountable to shareholders. As chairman
of the committee, Nichola Pease will be available at the annual
general meeting to answer questions on all aspects of directors’
remuneration. This report will be put forward for approval and
adoption at that meeting.
Remuneration policy 
The overall objective of the remuneration policy is to attract, retain
and motivate high calibre individuals. Remuneration packages are
designed to be competitive with respect to comparable organisations
and to reward executives for superior performance. Executives
receive salary, benefits, pension contributions and annual and 
long-term incentive awards.
Salaries and benefits
Executive salaries are reviewed annually by the committee to take
account of the experience, responsibilities and performance of
individual directors as well as competitive market practice. Executive
directors and the deputy chairman, Stephen Dickinson, who has
part time executive responsibility for land development, receive the
benefits of a fully expensed company car or car allowance and life
and health insurances.
Service contracts
Rupert Dickinson and Andrew Cunningham have service contracts
with a 24 months’ notice period. Sean Slade’s contract is for 
12 months. The board feels that such contracts are an important
element of the overall employment packages of the executives and
are appropriate to the nature of the group’s business. They provide
both the group and the individual with the security to commit to the
group’s long-term objectives. However, the 24 months’ contracts are
being reduced to 12 months over a period of five years from 
1 October 2002.
Pensions
Executive directors receive defined contributions to money purchase
schemes. These contributions are based solely on a percentage of
salary; benefits in kind and bonus awards are not pensionable.
Contributions paid in the year were:
Pension contributions
2003 2002
£’000 £’000
Rupert Dickinson 30 25
Andrew Cunningham 33 27
Sean Slade (2002: from 20 June 2002) 13 2
76 54
Performance incentives 
The group operates annual and long-term incentive schemes for
directors and senior executives. These schemes are designed so
that a large percentage of overall remuneration is performance-
based and that the interests of executives and shareholders in
promoting the group’s progress are aligned. 
Annual discretionary bonus
The executive directors receive an annual discretionary bonus which
is at the discretion of the remuneration committee. This bonus is
performance related and takes into account the performance of
Grainger and how Grainger has performed relative to the UK
housing market. 
Deferred bonus
As noted in last year’s annual report and accounts, Rupert Dickinson
and Andrew Cunningham became entitled to a deferred bonus in
recognition of their contributions with respect to the investment in
BPT Limited and to the subsequent performance of the company’s
interest in the Joint Venture. Approval for the deferred bonus
scheme was obtained at the extraordinary general meeting of the
company held on 5 March 2002. 
The deferred bonus represents total monetary payments of
£600,000 and £300,000 to Rupert Dickinson and Andrew
Cunningham respectively. The payments are made in the form of
shares, calculated at the rate of 713.19 pence per share being the
average share price from 1 October 2000 to 30 September 2001.
Thus, the total number of shares that may be vested are 84,130 
and 42,064.
28
Grainger Trust plc 
Remuneration committee report 29
Grainger Trust plc 
Remuneration committee report
The awards are divided into two equal tranches, the first of which
vested on 11 December 2003 at which date the mid-market price
per share was £15.75. The second will vest in December 2005 
after the preliminary results announcement for the year ending 
30 September 2005.
The vesting of the remaining awards is dependent upon the
individuals being in the service of the company and not being 
under notice to leave at the relevant vesting date. 
Long-term incentive scheme
The long-term incentive scheme was originally approved by
shareholders in February 1997 and was subsequently amended 
in February 2000 and March 2002. The main objectives of the 
long-term incentive scheme are to link the rewards of the scheme
participants to overall group performance over a sustained period of
time and to facilitate the acquisition of shareholdings in the company
by executives. 
Under the latest scheme (‘2002 scheme’), executives receive
conditional awards of shares and share options up to a maximum 
of 50% and 125% of salary respectively. The awards may be made
annually and will become unconditional provided certain
performance criteria over a three year period are achieved. For the
full award to be made, the Total Shareholder Return (‘TSR’) must 
be greater than or equal to the upper quartile TSR of a number of
comparator companies. If the TSR equals the median TSR of the
comparators then 40% of the awards will be made; between
median and upper quartile levels, the level will be pro-rated. 
No awards will be made if the TSR is below the median of the
comparators. The comparator companies are determined by the
remuneration committee and the initial selection consists of 14
property companies, chosen on the basis of their market
capitalisation. The comparator companies are currently Benchmark
Group plc, Brixton plc, Capital and Regional plc, CLS Holdings plc,
Daejan Holdings plc, Derwent Valley Holdings plc, Freeport plc,
Great Portland Estates plc, London Merchant Securities plc, Minerva
plc, Pillar Property plc, Quintain Estates and Development plc,
Shaftesbury plc and The Unite Group plc. The executives are also
entitled to matching awards in respect of previous versions of the
long-term incentive scheme. Under these rules, a 1 for 4 matching
award of shares awarded in 2002 under the 1999 scheme will be
made if those shares are held for a three year period. The directors
therefore have the following maximum potential entitlements under
the long-term incentive schemes.
Ordinary shares of 25p each
Matching awards Awards Options
under 1999 under 2002 under 2002
scheme scheme scheme
Rupert Dickinson 10,389 15,641 39,103
Andrew Cunningham 9,091 11,470 28,675
Sean Slade 4,156 7,820 19,551
23,636 34,931 87,329
Price per share of awards/options £3.85 £9.59 £9.59 30
Grainger Trust plc 
Remuneration committee report
Other schemes
Executive directors also participate in other schemes which are
open to all members of staff, subject to the rules of each individual
scheme. These are as follows:
Save As You Earn (‘SAYE’) scheme. Under this scheme participants
enter into a save as you earn contract with the group’s clearing
bankers to provide them with the finance to exercise SAYE options.
The option price is calculated at 80% of the market value of the
shares at the date of issue of invitations to participate. The scheme
rules have received Inland Revenue clearance. SAYE options held
by executive directors are shown in the share option table on 
page 32.
Share Incentive Plan (‘SIP’). The principal features of the plan are:
– partnership shares. From October 2002, all employees are able
to buy shares from pre-tax monthly earnings up to the lower of
£125 per month and 10% of earnings. 
– matching shares. The company is able to give employees up to
two matching shares for each partnership share the employee
buys. Thus the maximum value of matching shares per employee
will amount to £3,000 per annum. 
– free shares. In addition to the above, the company is able to give
up to £3,000 worth of free shares each year to each employee.
Amounts awarded to the executive directors in respect of the
year ended 30 September 2003 are shown in the directors’
remuneration table.
The plan rules have received Inland Revenue clearance and were
approved by the members at an extraordinary general meeting on 
5 March 2002.
Executive Share Option Scheme
Under this scheme, established in 1987, certain executives were
granted share options, exercise of which is conditional upon a
growth in earnings per share in excess of the retail price index over
a period of three consecutive years during the period of the option.
This scheme is now closed and has been replaced by the long-term
incentive scheme.
Non-executive directors
The remuneration of the non-executive directors is reviewed on a
biennial basis by the whole board. Non-executive directors are not
eligible for any annual or long-term incentives, are not members of
any group pension arrangements and with the exception of Stephen
Dickinson as previously noted, receive no benefits in kind. Each
non-executive director has specific terms of reference.
The graph below shows Total Shareholder Return (based upon
share price growth and with dividends reinvested) for Grainger Trust
plc in comparison with the group of companies shown as a
comparator on page 29, the FTSE 250, and the real estate index.
The remainder of this report has been audited in accordance with
Part 3 of Schedule 7A to the Companies Act 1985.
0
100
200
300
400
500
600
1999 2000 2001 2002 2003
Grainger Trust
Net Total
Comparator Index 
Total
FTSE Real Estate
Total Return
FTSE Mid 250
Total Return 31
Grainger Trust plc 
Remuneration committee report
Directors’ remuneration
2002 2003
Salary Annual Share
Total anddiscretionary Incentive Taxable Total
remuneration fees bonus Plan benefits remuneration 
£’000 £’000 £’000 £’000 £’000 £’000
Chairman, deputy chairman 
and executive directors
Robert Dickinson 75 90 ––– 90
Stephen Dickinson 508 127 85 6 21 239
Rupert Dickinson 1,374 300 263 6 33 602
Andrew Cunningham 776 220 193 6 18 437
Sean Slade 273 150 60 6 15 231
3,006 887 601 24 87 1,599
Non-executive directors
The Earl of Portsmouth 8 –––––
Robin Herbert 22 30 ––– 30
Robin Oldfield 20 10 ––– 10
John Ward 22 30 ––– 30
Emanuel Davidson 8 –––––
Nichola Pease 21 30 ––– 30
Robert Hiscox 11 25 ––– 25
John Barnsley – 12 ––– 12
Total 112 137 ––– 137
Total – all directors 3,118 1,024 601 24 87 1,736
Directors’ appointments/resignations in the last two financial years have been:
Appointed Resigned
Sean Slade 20 June 2002
The Earl of Portsmouth 5 March 2002
Robin Oldfield 27 February 2003
Emanuel Davidson 5 March 2002
Robert Hiscox 5 March 2002
John Barnsley 27 February 2003
The remuneration figures shown above represent the proportion of emoluments from the date of appointment or to the date of resignation.  32
Grainger Trust plc 
Remuneration committee report
Directors’ share options
Ordinary shares of 25p each (thousands)
Stephen Rupert Andrew Sean
Dickinson Dickinson Cunningham Slade Total
30 Sept 1 Oct 30 Sept 1 Oct 30 Sept 1 Oct 30 Sept 1 Oct 30 Sept 1 Oct
Exercise price Date exercisable 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002
Inland Revenue Approved Executive Share Option Scheme
231.2p 6 Jan 97 to 6 Jan 04 – – 40 40 – – – – 40 40
292.0p 19 Jul 99 to 19 Jul 06 – – – – – – 10 10 10 10
342.5p 23 Dec 99 to 23 Dec 06 – – – – 9 9 – – 9 9
SAYE Scheme
818.0p 8 Aug 07 to 8 Feb 08 – – 2 2 2 2 2 2 6 6
932.3p 1 Sept 08 to 1 March 09 2 – – – – – – – 2 –
LTIP
267.1p 9 Jul 00 to 9 Jul 07 – – 13 13 7 7 8 8 28 28
959.0p 24 Jan 06 to 24 Jan 13 – – 39 – 29 – 20 – 88 –
2 – 94 55 47 18 40 20 183 93
The above options were granted at nil cost to the directors. There have been no variations in the terms and conditions of the options during
the year.
The market price of the company’s shares at the end of the financial year was 1365.0p and the range during the year was 926.5p 
to 1460.0p. 
No options were exercised by any of the above directors during the year.
Since the year end Rupert Dickinson has exercised options of 40,000 shares under the company’s Inland Revenue Approved Executive
Share Option Scheme at an option price of 231.2p. At the date of exercise the mid-market price per share was 1,615.0p.
Nichola Pease 
Chairman of the remuneration committee
16 January 2004 33
Grainger Trust plc 
Independent auditors’ report to the members of Grainger Trust plc
Independent auditors’ report to the
members of Grainger Trust plc
We have audited the financial statements which comprise the
statement of accounting policies, the consolidated profit and loss
account, balance sheets, the consolidated cash flow statement, the
statement of group total recognised gains and losses, note of group
historical cost profits and losses and the related notes. We have
also audited the disclosures required by Part 3 of Schedule 7A to
the Companies Act 1985 contained in the remuneration committee
report (‘the auditable part’).
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the annual report and the
financial statements in accordance with applicable United Kingdom
law and accounting standards are set out in the statement of
directors’ responsibilities. The directors are also responsible for
preparing the remuneration committee report.
Our responsibility is to audit the financial statements and the
auditable part of the remuneration committee report in accordance
with relevant legal and regulatory requirements and United Kingdom
Auditing Standards issued by the Auditing Practices Board. This
report, including the opinion, has been prepared for and only for the
company’s members as a body in accordance with Section 235 of
the Companies Act 1985 and for no other purpose. We do not, in
giving this opinion, accept or assume responsibility for any other
purpose or to any other person to whom this report is shown or into
whose hands it may come save where expressly agreed by our prior
consent in writing. 
We report to you our opinion as to whether the financial statements
give a true and fair view and whether the financial statements and
the auditable part of the remuneration committee report have been
properly prepared in accordance with the Companies Act 1985. 
We also report to you if, in our opinion, the directors’ report is not
consistent with the financial statements, if the company has not
kept proper accounting records, if we have not received all the
information and explanations we require for our audit, or if
information specified by law regarding directors’ remuneration 
and transactions is not disclosed.
We read the other information contained in the annual report and
consider the implications for our report if we become aware of any
apparent misstatements or material inconsistencies with the financial
statements. The other information comprises only the chairman’s
statement, the chief executive’s statement, the operating and
financial review, the corporate governance report, the directors’
report and the unaudited part of the remuneration committee report. 
We review whether the corporate governance statement reflects the
company’s compliance with the seven provisions of the Combined
Code specified for our review by the Listing Rules of the Financial
Services Authority, and we report if it does not. We are not required
to consider whether the board’s statements on internal control cover
all risks and controls, or to form an opinion on the effectiveness of
the company’s or group’s corporate governance procedures or its
risk and control procedures. 
Basis of audit opinion
We conducted our audit in accordance with auditing standards
issued by the Auditing Practices Board. An audit includes
examination, on a test basis, of evidence relevant to the amounts
and disclosures in the financial statements and the auditable part of
the remuneration committee report. It also includes an assessment
of the significant estimates and judgements made by the directors 
in the preparation of the financial statements, and of whether the
accounting policies are appropriate to the company’s
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the
information and explanations which we considered necessary in
order to provide us with sufficient evidence to give reasonable
assurance that the financial statements and the auditable part of the
remuneration committee report are free from material misstatement,
whether caused by fraud or other irregularity or error. In forming our
opinion we also evaluated the overall adequacy of the presentation
of information in the financial statements.
Opinion
In our opinion:
• the financial statements give a true and fair view of the state of
affairs of the company and the group at 30 September 2003 and
of the profit and cash flows of the group for the year then ended;
• the financial statements have been properly prepared in
accordance with the Companies Act 1985; and
• those parts of the remuneration committee report required by Part
3 of Schedule 7A to the Companies Act 1985 have been properly
prepared in accordance with the Companies Act 1985.
PricewaterhouseCoopers LLP
Chartered accountants and registered auditors
Newcastle upon Tyne
16 January 2004 34
Grainger Trust plc 
Statement of accounting policies
Statement of accounting policies
A summary of the principal accounting policies is set out below. 
The policies have been applied consistently in all material respects
throughout the current and the previous year.
Accounting convention 
The group prepares its annual financial statements on the historical
cost basis of accounting, as modified by the revaluation of investment
properties in accordance with the Companies Act 1985 and
applicable accounting standards.
Basis of consolidation 
The group financial statements comprise the consolidated financial
statements of the company and its subsidiaries. The financial
statements of subsidiary companies are made up to 30 September.
The results of subsidiaries sold or acquired are included in the
consolidated profit and loss account up to, or from, the date control
passes. Intra-group sales and profits are eliminated fully on
consolidation. On acquisition of a subsidiary, all of the subsidiary’s
assets and liabilities that exist at the date of acquisition are recorded
at their provisional fair values reflecting their condition at that date.
Goodwill arising on consolidation represents the difference between
the fair value of the consideration paid and the fair value of the
identifiable assets acquired. Goodwill arising on the acquisition of
subsidiaries prior to 30 September 1998 was written off or credited
immediately against reserves and would be transferred to the profit
and loss account on subsequent disposal of the business to which
it relates. Goodwill arising subsequent to that date is shown in the
balance sheet under fixed assets. Positive goodwill is amortised
through the profit and loss account over its estimated useful
economic life. Negative goodwill is amortised through the Profit and
Loss Account over the period in which the non-monetary assets are
realised either through depreciation or sale.
The acquisition of the Bromley Joint Venture has been accounted
for in accordance with FRS2 which, in the circumstances of a joint
venture becoming a subsidiary, is inconsistent with the requirements
of paragraph 9 to Schedule 4 of the Companies Act 1985. This
requires that goodwill arising on the acquisition of a subsidiary 
be calculated at the date the undertaking becomes a subsidiary. 
FRS2 paragraph 89 notes that this may result in accounting that is
inconsistent with the way in which the joint venture was previously
treated in the group consolidated financial statements.
FRS2 requires that fair values should be ascribed to earlier
investments, and that goodwill on the joint venture becoming a
subsidiary should be calculated as the sum of the goodwill arising
from each separate investment. For the purposes of establishing
goodwill on the purchase of the first 50% investment in Bromley, 
the fair value of the identifiable assets and liabilities have been taken
from the financial statements of Bromley Property Holdings Limited
following that company’s acquisition of BPT plc. This reflects the
commercial reality of the fair value of the assets and liabilities
acquired by Grainger Trust plc at the time of this investment. Details
of the fair values ascribed to the identifiable assets and liabilities at
the date of Bromley becoming a subsidiary and the impact of
adopting FRS2 over the Companies Act 1985 are included in 
note 27. 
Turnover
Turnover comprises gross sale proceeds of trading properties and
developments, gross rentals and sundry other income, and is
exclusive of VAT. Sales of land and properties are only accounted 
for when the cash proceeds are received in full or the group has
entered into a legally binding undertaking. Gross rentals are
recognised as they fall due.
Joint Venture 
In compliance with FRS9, the group accounts for joint ventures
under the gross equity method. Under this method, the group’s
share of the Joint Venture’s turnover and profits and losses are
separately disclosed in the group’s profit and loss account. The
group’s share of the gross assets and gross liabilities, together with
goodwill, is shown on the face of the balance sheet. The group’s
statement of total recognised gains and losses includes its share 
of the Joint Venture’s total recognised gains and losses.
Repairs and improvements
Repairs are charged in the year they are incurred. Improvement
costs are capitalised. 
Pensions
The company makes contributions to defined contribution schemes
only for all employees. Pension costs are charged in the year to
which they relate.
The Bromley Property Holdings Limited group currently contributes
to two pension schemes. The first is a defined contribution scheme,
implemented during the year and open to all employees. The
contributions are charged to the profit and loss account during the
year. The second is a defined benefit scheme, which was closed to
new members and employee contributions during the year. The
group will continue to contribute so as to spread the cost over the
expected remaining life of the relevant employees. The transitional
disclosure requirements of FRS17, ‘Retirement Benefits’, are given
in note 28 to the financial statements. 35
Grainger Trust plc 
Statement of accounting policies
Tangible fixed assets
The cost of fixed assets is their purchase cost, together with any
incremental costs of acquisition. In accordance with SSAP 19, 
(i) investment properties are revalued annually and the aggregate
surplus or temporary deficit is transferred to a revaluation reserve,
and (ii) no depreciation or amortisation is provided in respect of
freehold investment properties and leasehold investment properties
with over 20 years to run. Permanent diminutions in value below
cost are charged in the profit and loss account. The requirement 
of the Companies Act 1985 is to depreciate all properties, but that
requirement conflicts with the generally accepted accounting
principle set out in SSAP 19. The directors consider that to
depreciate such properties would not give a true and fair view, 
as the properties are not held for consumption but for investment,
and that a true and fair view is given by following SSAP 19 as
described above. The effect of depreciation and amortisation on
value is already reflected annually in the valuation of properties, and
the amount attributed to this factor by the valuers cannot reasonably
be separately identified or quantified. Had the provisions of the Act
been followed, net assets would not have been affected but revenue
and profits would have been reduced for this and earlier years.
Full valuations are made by independent professionally qualified
valuers every year. The basis of valuation is explained in note 10. 
Depreciation is calculated so as to write off the cost of tangible fixed
assets (excluding investment properties), less their estimated residual
values, over the expected useful economic lives of the assets
concerned. The principal annual rates used for this purpose are:
% Method
Fixtures, fittings and equipment 20 Straight line
Investments
Investments in subsidiaries and other investments are included in the
financial statements at cost less provisions for permanent diminution 
of value.
Stocks
Tenanted residential properties are shown in the financial statements
at the lower of cost to the group and net realisable value. Cost to
the group includes legal and surveying charges incurred during
acquisition together with improvement costs. Net realisable value is
the net sale proceeds which the group expects on sale of a property
with vacant possession. 
Development and trading properties are shown in the financial
statements at the lower of cost to the group and net realisable value.
Cost represents the acquisition price together with subsequent
development costs net of amounts transferred to cost of sales. 
Net realisable value is the current market value as advised by the
group’s professional valuers. 
Derivative financial instruments
The group uses derivative financial instruments to reduce exposure
to interest rate movements. The group does not hold or issue
derivative financial instruments for speculative purposes.
For an interest rate swap to be treated as a hedge the instrument
must be related to actual assets or liabilities or a probable
commitment and must change the nature of the interest rate by
converting a fixed rate to a variable rate or vice versa. Interest
differentials under these swaps are recognised by adjusting net
interest payable over the periods of the contracts.
If an instrument ceases to be accounted for as a hedge, for example
because the underlying hedged position is eliminated, the instrument
is marked to market and any resulting profit or loss recognised at
that time.
Deferred taxation
Deferred tax is measured at the rate expected to apply in the
periods in which the timing differences are expected to reverse,
based on tax rates and laws that have been enacted by the balance
sheet date. Deferred tax is measured on a non-discounted basis.
A net deferred tax asset is regarded as recoverable and therefore
recognised only when, on the basis of all evidence available, it can
be regarded as more likely than not that there will be suitable taxable
profits from which the future reversal of the underlying timing
differences can be deducted.
Deferred taxation is not recognised when fixed assets are revalued
unless by the balance sheet date there is a binding agreement to sell
the revalued assets and the gain or loss expected to arise on the
sale has been recognised in the financial statements.
Share schemes
The group operates a long-term incentive plan and a deferred bonus
scheme. Shares in the company are held for these purposes by 
The Grainger Trust Employee Trustee Limited, the assets, income
and costs of which have been included in these financial statements. 36
Grainger Trust plc 
Consolidated profit and loss account
Consolidated profit and 
loss account
Year ended Year ended
30 September 30 September
2003 2002
For the year ended 30 September 2003 Notes £m £m
Turnover (including share of Joint Venture) 173.6 213.8
Less: share of turnover of Joint Venture (55.6) (110.3)
Group turnover 1 118.0 103.5
Gross rentals 21.4 22.0
Trading profits 38.8 33.7
Other income 0.9 0.4
61.1 56.1
Less:
Property expenses (9.1) (9.7)
Administration expenses (4.7) (4.4)
Group operating profit 47.3 42.0
Share of operating profit of Joint Venture
(after amortisation of goodwill of £35,000 (2002: £97,000)) 23.6 33.0
Total operating profit: Group and share of Joint Venture 70.9 75.0
Net profit on disposal of and provisions against fixed assets
– Group 1.9 0.1
– Joint Venture 4.1 7.4
2 6.0 7.5
Profit on ordinary activities before interest 76.9 82.5
Net interest payable and similar charges
– Group (11.5) (10.7)
– Group exceptional 3, 4 – (3.8)
– Joint Venture (16.9) (26.9)
3 (28.4) (41.4)
Profit on ordinary activities before taxation 1, 5 48.5 41.1
Tax on profit on ordinary activities 7 (19.1) (20.2)
Profit on ordinary activities after taxation 29.4 20.9
Minority interest – equity 25 (0.1) –
Profit attributable to shareholders 29.3 20.9
Dividends 8 (4.0) (3.5)
Retained profit for the year 21 25.3 17.4
Basic earnings per share 9 118.5p 84.6p
Diluted earnings per share 9 118.0p 84.2p
Basic earnings per share before exceptional item 9 118.5p 95.3p
All results relate to continuing operations. 37
Grainger Trust plc 
Statement of group total recognised gains and losses
Statement of group total 
recognised gains and losses
2003 2002
For the year ended 30 September 2003 Notes £m £m
Profit on ordinary activities attributable to shareholders 29.3 20.9
Taxation on realisation of property revaluation gains of previous years 7 – (0.4)
Unrealised surplus on revaluation of properties 10, 21 3.1 0.4
Surplus recognised in the profit and loss account in the year 21 (1.3) 0.1
Adjustment to reserves arising from the consolidation of the Joint Venture 21 (2.9) –
Total gains and losses recognised – group 28.2 21.0
Share of Joint Venture tax on realisation of revaluation surpluses 21 (0.9) –
Unrealised surplus on revaluation of Joint Venture properties 21 4.4 7.8
Total gains and losses recognised since the last annual report – group and Joint Venture 31.7 28.8
Note of group historical cost profits and losses
2003 2002
£m £m
Reported profit on ordinary activities before taxation 48.5 41.1
Realisation of property revaluation gains of previous years 21 3.1 6.8
Historical cost profit on ordinary activities before taxation 51.6 47.9
Taxation (20.0) (20.6)
Minority interest (0.1) –
Dividends (4.0) (3.5)
Retained historical cost profit for the year 27.5 23.8 38
Grainger Trust plc 
Balance sheets
Balance sheets
Group Company
2003 2002 2003 2002
At 30 September 2003 Notes £m £m £m £m
Fixed assets
Intangible assets 12 (97.2) (0.9) – –
Tangible assets 10 109.1 21.7 0.4 0.3
Investments:
Investment in Joint Venture:
Share of gross assets – 307.0
Share of gross liabilities – (281.1)
– 25.9
Goodwill arising on acquisition – 0.3
11 – 26.2 – 15.8
Loan to Joint Venture 11 – 13.7 – 13.7
Total investment in Joint Venture – 39.9 – 29.5
Other investments 11 9.2 8.9 97.3 45.3
11 9.2 48.8 97.3 74.8
21.1 69.6 97.7 75.1
Current assets
Stocks 14 888.3 305.1 – –
Debtors 15 10.0 3.5 114.6 84.0
Cash at bank and in hand 16 81.7 10.5 0.3 2.2
980.0 319.1 114.9 86.2
Creditors: amounts falling due within one year 17 (154.5) (52.4) (46.6) (42.3)
Net current assets 825.5 266.7 68.3 43.9
Total assets less current liabilities 846.6 336.3 166.0 119.0
Creditors: amounts falling due after more than one year 17 (684.8) (211.5) (2.5) (5.6)
Provision for liabilities and charges 19 (12.8) (3.7) – –
Net assets 149.0 121.1 163.5 113.4
Capital and reserves
Called up share capital 20 6.2 6.2 6.2 6.2
Share premium account 21 21.4 21.3 21.4 21.3
Revaluation reserve 21 14.7 11.6 – –
Capital redemption reserve 21 0.2 0.2 0.2 0.2
Profit and loss account 21 106.4 81.8 135.7 85.7
Equity shareholders’ funds 22 148.9 121.1 163.5 113.4
Minority interests – equity 25 0.1 – – –
Total capital employed 149.0 121.1 163.5 113.4
The financial statements on pages 34 to 59 were approved by the board of directors on 16 January 2004 and were signed on their 
behalf by:
Rupert Dickinson Andrew Cunningham
Director Director 39
Grainger Trust plc 
Consolidated cash flow statement
Consolidated cash flow statement
2003 2002
For the year ended 30 September 2003 Notes £m £m
Net cash outflow from operating activities (see below) (37.3) (18.3)
Dividends from Joint Venture 52.0 –
Returns on investments and servicing of finance
Interest received 2.9 7.6
Interest paid – normal (14.0) (18.6)
– exceptional – (3.8)
Dividends received 0.2 –
(10.9) (14.8)
Taxation
UK Corporation tax paid (11.8) (8.1)
Capital expenditure and financial investment
Purchase of fixed asset investments (1.4) (8.1)
Purchase of tangible fixed assets (0.5) (0.8)
Sale of fixed asset investments – 0.1
Sale of tangible fixed assets 2.1 7.1
Repayment of loan stock – 26.3
0.2 24.6
Acquisitions and disposals
Purchase of subsidiaries 26 (25.9) (0.2)
Costs on purchase of subsidiaries (0.3) (0.1)
Cash acquired on purchase of subsidiaries 27 74.9 –
Sale of subsidiaries – 0.2
Investment in Joint Venture – (1.6)
48.7 (1.7)
Equity dividends paid (3.6) (3.1)
Cash inflow/(outflow) before financing 37.3 (21.4)
Financing
New loans raised 24 64.0 47.1
Repayment of loans 24 (30.2) (38.4)
Issue of shares 20 0.1 0.1
Net cash inflow from financing 33.9 8.8
Increase/(decrease) in cash in the period 23 71.2 (12.6)
Reconciliation of group operating profit to net cash outflow from operating activities
2003 2002
£m £m
Group operating profit 47.3 42.0
Depreciation 0.2 0.2
Amortisation of goodwill (0.2) (0.4)
(Increase)/decrease in debtors (1.6) 1.0
(Decrease)/increase in creditors (13.6) 7.9
Increase in stocks (69.4) (69.0)
Net cash outflow from operating activities (37.3) (18.3) 40
Grainger Trust plc 
Notes to the financial statements
Notes to the financial statements
For the year ended 30 September 2003
1 Segmental analysis by class of business
The analysis by class of business of the group’s turnover, profit before interest and taxation, and net assets is set out below:
Turnover and profit before taxation
2003 2002
2003 Profit before 2002 Profit before
Turnover taxation Turnover taxation
£m £m £m £m
Class of business
Continuing operations
Tenanted Residential 81.0 35.6 68.0 30.0
Development and Trading 37.0 13.6 35.5 12.1
118.0 49.2 103.5 42.1
Joint Venture 55.6 27.7 110.3 40.4
173.6 76.9 213.8 82.5
Net interest payable – group – (11.5) – (14.5)
Net interest payable – Joint Venture – (16.9) – (26.9)
173.6 48.5 213.8 41.1
The Joint Venture operated its activities as one class of business encompassing both Tenanted Residential and Development and Trading.
Net assets
Net assets Adjusted net assets*
2003 2002 2003 2002
£m £m £m £m
Class of business
Continuing operations
Tenanted Residential 96.0 73.6 464.8 244.1
Development and Trading 53.0 37.1 78.6 68.1
149.0 110.7 543.4 312.2
Joint Venture – 10.4 – 114.5
149.0 121.1 543.4 426.7
*Adjusted net assets represent balance sheet net assets plus the excess of market value over book cost of trading stock, net of minority
interest. Adjusted net assets exclude any provision for contingent taxation. Turnover between segments is immaterial.
Analysis by geographical area
The group operates solely within the United Kingdom. 41
Grainger Trust plc 
Notes to the financial statements
2 Net profit on disposal of and provisions against fixed assets
2003 2002
£m £m
Group
Profit on disposal of investment properties 0.6 0.2
Write back of impairment/(impairment) of investment properties 1.3 (0.1)
1.9 0.1
Joint Venture
Profit on disposal of investment properties 4.1 7.4
Group and Joint Venture 6.0 7.5
The write back of impairment of investment properties resulted from a change in the economic circumstances affecting the valuation of
certain investment properties.
3 Net interest payable and similar charges
2003 2002
£m £m
Group
Bank loans and overdrafts 9.7 11.7
Debentures and other loans 3.2 4.5
Other interest costs 1.7 1.5
14.6 17.7
Less:
Income from listed fixed asset investments (0.2) –
Interest receivable (2.9) (7.0)
11.5 10.7
Exceptional item:
Cost of redemption of debenture stock (note 4) – 3.8
11.5 14.5
Joint Venture
Bank loans and overdrafts 12.8 16.5
Debentures and other loans 0.9 7.6
Other interest costs 4.4 4.5
18.1 28.6
Less:
Interest receivable (1.2) (1.7)
16.9 26.9
Group and Joint Venture 28.4 41.4
All interest payable is charged to the profit and loss account. No interest has been capitalised in this or prior periods.
4 Exceptional item
2003 2002
£m £m
Cost of redemption of debenture stock – (3.8)
The prior year exceptional item was paid in cash during the course of that year and represented the premium paid upon early redemption of
quoted debentures. 42
Grainger Trust plc 
Notes to the financial statements
5 Profit on ordinary activities before taxation
2003 2002
£m £m
Profit on ordinary activities before taxation is stated after charging:
Depreciation of tangible owned fixed assets 0.2 0.2
Auditors’ remuneration (including expenses)
(Company £6,000 (2002: £6,000)) 0.1 0.1
And after crediting:
Amortisation of goodwill 0.2 0.4
Remuneration of the company’s auditors for the provision of non-audit services to the company and its UK subsidiary undertakings was
£81,000 (2002: £91,000). Of this £62,000 (2002: £81,000) related to tax compliance and advisory services.
6 Directors and employees
2003 2002
£m £m
Staff costs (including executive directors) during the year:
Wages and salaries 5.3 5.9
Social security costs 1.0 0.7
Other pension costs (see note 28) 0.3 0.2
6.6 6.8
Less: recharged to Joint Venture (0.7) (1.1)
5.9 5.7
The average weekly number of persons employed by the group during the year (including executive directors) was 94 (2002: 76). All
employees were involved in the management and/or administration of the group. Details of directors’ remuneration (including pensions),
directors’ share options and interests in the long-term incentive plan are provided in the remuneration committee report on pages 28 to 32.
7 Taxation
2003 2002
£m £m
Analysis of charge in year
Current tax:
Group
UK Corporation tax on profits for the period 12.3 11.1
Adjustments in respect of prior periods 0.2 –
Transferred to appropriate reserve (see below) – (0.4)
Joint Venture
UK corporation tax on profits for the period 6.3 8.3
Adjustments in respect of prior periods 1.9 –
Total current tax 20.7 19.0
Deferred tax:
Origination and reversal of timing differences
Group (0.6) (1.2)
Joint Venture (1.0) 2.4
Total deferred tax (1.6) 1.2
Group and Joint Venture 19.1 20.2
The group allocates the tax arising on the sale of investment properties between the profit and loss account and the appropriate reserve to
match the accounting treatment of the gain arising. 43
Grainger Trust plc 
Notes to the financial statements
7 Taxation (continued)
Factors affecting the tax charge for the year
The tax assessed for the period is higher than the standard rate of corporation tax in the UK (30%).
The differences are explained below:
2003 2002
£m £m
Profit on ordinary activities before tax 48.5 41.1
Profit on ordinary activities before tax at a rate of 30% 14.6 12.3
Expenses not deductible for tax purposes 0.7 0.5
Effect of negative goodwill written back (1.5) (4.5)
Tax on fair values released on sales 4.4 13.9
Effect of timing differences 0.6 (1.5)
Difference between tax and accounting profit on disposals (0.2) (1.7)
Adjustments in respect of prior periods 2.1 –
Total current tax 20.7 19.0
Factors that may affect future tax charges
No provisions for deferred tax have been made on gains which would become payable if the group’s investment properties were sold at their
year end values. The estimate of unprovided deferred tax is £16.5m (2002: £1.5m).
FRS19 prohibits the making of provisions for contingent tax liabilities on the fair value of properties on the acquisition of companies. It had
previously been industry practice to make partial provision for such liabilities as part of our fair value exercise on acquisition. Thus there is a
greater tax charge on property sales where there is no brought forward contingent tax provision available to be utilised in its reduction. 
The total contingent tax to the group on the difference between original cost and carrying value of trading properties not provided at 
30 September 2003 is £91.8m (2002: £42.0m).
8 Dividends
2003 2002
£m £m
Dividends on equity shares:
Ordinary – interim paid of 3.51p per share (2002: 3.05p per share) 0.8 0.7
Ordinary – final proposed of 12.80p per share (2002: 11.13p per share) 3.2 2.8
4.0 3.5
9 Earnings per share
The calculation of basic, diluted and adjusted earnings per share is based on the following earnings and number of shares:
Year ended 30 September 2003 Year ended 30 September 2002
Weighted Weighted
Profit average Profit average
for the number Earnings for the number Earnings
year of shares per share year of shares per share
£m      (thousands) pence £m     (thousands) pence
Basic earnings per share 
Profit attributable to shareholders 29.3 24,745 118.5 20.9 24,682 84.6
Exceptional item (note 3) less tax –– 2.7 10.7
Adjusted earnings 29.3 118.5 23.6 95.3
Effect of dilutive securities 
Options – 117 – – 126 –
Diluted earnings per share
Profit attributable to shareholders 29.3 24,862 118.0 20.9 24,808 84.2
Exceptional item (note 3) less tax –– 2.7 10.6
Adjusted earnings 29.3 118.0 23.6 94.8
The adjusted earnings per share is presented as it gives a better picture of the underlying performance of the business. 44
Grainger Trust plc 
Notes to the financial statements
10 Tangible fixed assets
Group Company
fixtures, fixtures,
Investment fittings and fittings and
properties equipment Total equipment
£m £m £m £m
Cost or valuation
At 1 October 2002 21.1 1.4 22.5 0.8
Surplus on revaluation 3.1 – 3.1 –
Additions 0.3 0.2 0.5 0.2
Disposals (1.5) – (1.5) –
Acquisitions 85.1 0.4 85.5 –
At 30 September 2003 108.1 2.0 110.1 1.0
Depreciation
At 1 October 2002 – 0.8 0.8 0.5
Charge for year – 0.2 0.2 0.1
At 30 September 2003 – 1.0 1.0 0.6
Net book value
At 30 September 2003 108.1 1.0 109.1 0.4
At 30 September 2002 21.1 0.6 21.7 0.3
Group investment properties were revalued at their market value at 30 September 2003 by Jones Lang LaSalle, Chartered Surveyors,
independent of the company, and by in-house valuations. A structured sample of the in-house valuations has been independently reviewed
by Allsop & Co., Chartered Surveyors. Based on the results of that review, Allsop & Co. have concluded that they have a high degree of
confidence in those valuations. These represent estimates of the open market value of the properties subject to the tenancies then existing. 
The net book value of investment properties comprises:
Group
2003 2002
£m £m
Freehold 99.8 21.1
Long leasehold 8.3 _
Net book value 108.1 21.1
If investment properties had not been revalued, they would have been included at the following amounts:
Group
2003 2002
£m £m
Net book value 104.9 20.8 45
Grainger Trust plc 
Notes to the financial statements
11 Fixed asset investments
Group
Equity Own shares
investment in Loan to and other
Joint Venture Joint Venture investments Total
£m £m £m £m
Cost
At 1 October 2002
Goodwill 0.4 –– 0.4
Other 25.9 13.7 8.9 48.5
26.3 13.7 8.9 48.9
Additions –– 1.4 1.4
Share of retained loss for year (47.9) –– (47.9)
Share of surplus on revaluation of investment properties 4.4 –– 4.4
Share of tax on realisation of revaluation surpluses (0.9) –– (0.9)
Disposals –– (1.1) (1.1)
Adjustment upon consolidation of Joint Venture 18.1 (13.7) – 4.4
–– 9.2 9.2
At 30 September 2003
Goodwill ––––
Other –– 9.2 9.2
–– 9.2 9.2
Amortisation of goodwill
At 1 October 2002 0.1 –– 0.1
Adjustment upon consolidation of Joint Venture (0.1) –– (0.1)
At 30 September 2003 ––––
Net book value at 30 September 2003 –– 9.2 9.2
Net book value at 30 September 2002 26.2 13.7 8.9 48.8
The goodwill was released in line with the disposal of acquired properties. 46
Grainger Trust plc 
Notes to the financial statements
11 Fixed asset investments (continued)
Company
Investment Loan to Investment in Other
in Joint Venture Joint Venture subsidiaries investments Total
£m £m £m £m £m
Cost
At 1 October 2002 15.8 13.7 38.3 7.0 74.8
Additions –– 36.2 – 36.2
Adjustment on consolidation of Joint Venture (15.8) (13.7) 15.8 – (13.7)
At 30 September 2003 –– 90.3 7.0 97.3
Group
Own shares and
other investments
2003 2002
£m £m
Investments at net book value include:
Investments listed on a recognised stock exchange 9.2 8.9
Aggregate market value of listed investments 12.4 11.2
Listed investments include 263,639 (2002: 323,768) 25p ordinary shares in Grainger Trust plc held by a subsidiary trustee company at a
cost of £2.2m (2002: £1.9m), which had a market value at 30 September 2003 of £3.6m (2002: £3.2m). These are held for the purpose of
awarding shares to certain senior executives under the company’s employee share benefits schemes. The administrative costs of running
this company have been included in these financial statements.
The directors consider that providing details of all subsidiaries as at 30 September 2003 would result in disclosure of excessive length. 
The following information relates to those subsidiary undertakings whose results or financial position, in the opinion of the directors,
principally affected the figures of the group:
Proportion of nominal value of
ordinary issued shares held by:
Name of undertaking Group % Company % Activity
Northumberland & Durham Property Trust Limited 100 – Property trading
GIP Limited 100 – Property trading and investment
N & D London Limited 100 – Property management
Derwent Developments Limited 100 – Land development
BPT (Bradford Property Trust) Limited 100 – Property trading
BPT (Assured Homes) Limited 100 – Property investment
BPT (Residential Investments) Limited 100 – Property investment
Bromley Property Investments Limited 100 – Finance company
Home Properties Limited 100 – Property trading
All subsidiaries are consolidated in the group accounts, are incorporated in England and Wales and operate within the United Kingdom.
On 26 September 2003, the company acquired the remaining 50% interest in the ordinary share capital of Bromley Property Holdings
Limited (‘Bromley’), a company incorporated in England and Wales. Prior to that date, the company held a 50% interest in Bromley and the
company’s share of its results for the year are disclosed separately within the profit and loss account. The assets and liabilities of Bromley at 
30 September 2003 are consolidated within the group’s balance sheet. At 30 September 2002 these were shown separately as an
investment in Joint Venture. Further details of the acquisition are shown in note 27. 47
Grainger Trust plc
Notes to the financial statements
12 Intangible assets
Group
Negative
goodwill
£m
Cost
At 1 October 2002 2.0
Additions 96.5
At 30 September 2003 98.5
Amortisation
At 1 October 2002 1.1
Release for year 0.2
At 30 September 2003 1.3
Net book value
At 30 September 2003 97.2
At 30 September 2002 0.9
The negative goodwill arising on acquisitions is being amortised in line with the disposal of acquired assets.
13 Capital commitments
The group had capital commitments contracted but not provided for of £nil at 30 September 2003 (2002: £nil).
14 Stocks
Group
2003 2002
£m £m
Trading and development properties 888.3 305.1
The market value of the group’s trading and development properties is £1,185.8m (2002: £504.7m), as valued on the same basis as
disclosed in note 10.
15 Debtors
Group Company
2003 2002 2003 2002
£m £m £m £m
Trade debtors 2.6 1.7 – –
Amounts owed by group undertakings – – 112.6 82.8
Other debtors 0.6 0.6 0.3 0.4
Prepayments and accrued income 4.0 1.2 1.7 0.8
Deferred tax asset (see note 19) 2.8 – – –
10.0 3.5 114.6 84.0 48
Grainger Trust plc 
Notes to the financial statements
16 Cash at bank and in hand
At 30 September 2003, bank balances included £53.8m (2002: £6.6m) which is held by lenders awaiting substitution of alternative security,
represents deposits received or is held as a guarantee for loan note obligations.
17 Creditors 
Group Company
2003 2002 2003 2002
£m £m £m £m
Amounts falling due within one year:
Mortgages and other loans 11.7 0.4 – –
Loan notes 41.2 1.9 1.9 1.9
Bank loans 23.5 19.9 2.0 2.0
Deposits received 1.0 0.6 – –
Trade creditors 8.1 7.5 – –
Amounts owed to group undertakings – – 25.6 33.1
Corporation tax payable 24.9 8.3 2.8 1.9
Other taxation and social security 2.0 1.6 0.1 –
Accruals and deferred income 38.9 9.4 11.0 0.6
Dividends payable 3.2 2.8 3.2 2.8
154.5 52.4 46.6 42.3
Group Company
2003 2002 2003 2002
£m £m £m £m
Amounts falling due after more than one year:
10
1
/2% debenture stock 1.9 1.9 1.9 1.9
11
3
/ 4% debenture stock 0.6 0.9 0.6 0.9
Mortgages and other loans 427.6 28.6 – –
Loan notes – 0.8 – 0.8
Bank loans 254.7 179.3 – 2.0
684.8 211.5 2.5 5.6
Maturity of finance debt (net of issue costs) is as follows:
In one year or less 76.4 22.2 3.9 3.9
Between one and two years 46.8 32.5 – 2.8
Between two and five years 210.6 56.4 – –
Between five and ten years 358.7 95.7 – –
Over ten years 68.7 26.9 2.5 2.8
761.2 233.7 6.4 9.5
The 10
1
/2% and 11
3
/ 4% debenture stock is repayable on 31 March 2024 and is secured by way of fixed and floating charges over certain of
the group’s properties. 
Mortgages and other loans bear interest rates of between 5% and 13% and are secured by fixed charges over certain of the group’s
properties. Repayments are over terms of 1 to 19 years. Bank loans bear interest rates between 0.75% and 1.40% above LIBOR and are
secured by fixed and floating charges over the assets of the group. Repayments are over terms of 1 to 29 years.
Loan notes carry interest at 0.75% and 1.00% below LIBOR and are payable half-yearly/quarterly on demand. Final redemption is at par on
30 September 2009 and 30 April 2011. 49
Grainger Trust plc 
Notes to the financial statements
18 Financial instruments
The group’s policies relative to financial instruments are set out in the operating and financial review on page 11. All amounts are held in
pounds sterling. Short-term debtors and creditors have been excluded from these disclosures as they do not have a significant impact 
on the financial risk profile of the group.
Interest rate risk profile of financial liabilities
2003
Fixed rate Capped rate Floating rate
liabilities liabilities liabilities Total
£m £m £m £m
Quoted debentures 2.5 –– 2.5
Institutional debt 17.4 –– 17.4
Loan notes –– 41.3 41.3
Bank debt 60.9 533.4 111.1 705.4
Total 80.8 533.4 152.4 766.6
2002
Fixed rate Capped rate Floating rate
liabilities liabilities liabilities Total
£m £m £m £m
Quoted debentures 2.8 –– 2.8
Institutional debt 17.6 –– 17.6
Loan notes –– 2.7 2.7
Bank debt 15.0 150.0 45.6 210.6
Total 35.4 150.0 48.3 233.7
The interest rate profile shown above takes into account the various derivative instruments used to manage interest rate fluctuations and is
gross of issue costs.
Borrowings subject to caps, collars and swaps are included in capped rate liabilities. 
2003
Fixed rate Capped rate
Weighted Weighted Weighted Weighted
average average average average 
rate period rate period
% years % years
Hedge profile
Quoted debentures 10.8 21 ––
Institutional debt 11.8 2 ––
Bank debt 6.9 20 5.8 4
Total 8.1 17 5.8 4
2002
Fixed rate Capped rate
Weighted Weighted Weighted Weighted
average rate average period average rate average period
% years % years
Hedge profile
Quoted debentures 10.9 22 ––
Institutional debt 11.9 3 ––
Bank debt 7.3 23 6.9 4
Total 9.9 13 6.9 4
The fixed and capped rates are inclusive of loan margins and reflect the effective cost of finance after taking account of the effect of interest
rate swaps. 50
Grainger Trust plc 
Notes to the financial statements
18 Financial instruments (continued)
Financial assets
The group’s financial assets at the year end consist of cash at bank and in hand of £81.7m (2002: £10.5m). The interest rate on this 
is floating.
Borrowing facilities
The group had various unutilised borrowing facilities at the year end. The undrawn facilities available to the group amount to £41.0m 
(2002: £20.0m), of which £25.0m expires on 30 September 2004 and £16.0m expires on 9 January 2004 (2002: £20.0m expired on 
30 September 2003).
Fair values of financial liabilities
The following fair values represent the amounts at which the financial instruments could be exchanged on an arm’s length transaction
between informed and willing parties, and exclude accrued interest.
2003 2002
Fair Fair
Book Fair value Book Fair value
value value adjustment value value adjustment
£m £m £m £m £m £m
Financial instruments:
Quoted debentures 2.5 3.4 (0.9) 2.8 3.9 (1.1)
Institutional debt 17.4 19.1 (1.7) 17.6 20.4 (2.8)
Short-term fixed rate bank debt 58.3 60.4 (2.1) 15.0 17.1 (2.1)
Total fixed rate debt 78.2 82.9 (4.7) 35.4 41.4 (6.0)
Debt fixed under one year 683.0 683.0 – 198.3 198.3 –
Derivative financial instruments:
Interest rate swaps – 1.6 (1.6) – 2.7 (2.7)
Interest rate caps – (0.1) 0.1 – (0.2) 0.2
Interest rate collars ––– –––
Total current derivatives – 1.5 (1.5) – 2.5 (2.5)
Future interest rate swaps – 4.9 (4.9) – 3.2 (3.2)
Total derivatives – 6.4 (6.4) – 5.7 (5.7)
761.2 772.3 (11.1) 233.7 245.4 (11.7)
Financial assets:
Cash (81.7) (81.7) – (10.5) (10.5) –
679.5 690.6 (11.1) 223.2 234.9 (11.7)
The fair values were calculated at 30 September 2003 using interest rates and market prices prevailing at that date and reflect the
replacement values of the respective financial instruments. This has an after tax effect on NAV of 31p (2002: 33p).
In addition, the group made full provision of £6.8m for the fair value of the financial instruments of Bromley at the date of acquisition 
(see note 19).
Changes in the fair value of derivative instruments are only recognised when the position matures or terminates.
An analysis of the unrecognised gains and losses arising on financial instruments used as hedges is as follows:
Gains Losses Net total
£m £m £m
Gains/(losses) on hedges at 1 October 2002 0.4 (6.1) (5.7)
Losses arising in previous periods that were recognised during the year – 1.1 1.1
Gains/(losses) not recognised in the year to 30 September 2003
Arising before 1 October 2002 0.4 (5.0) (4.6)
Arising during the year to 30 September 2003 (0.2) (1.6) (1.8)
Unrecognised gains/(losses) on hedges at 30 September 2003 0.2 (6.6) (6.4)
Of which:
Losses expected to be recognised in the year to 30 September 2004 – (0.8) (0.8)
Gains/(losses) expected to be recognised in the year to 30 September 2005 or later 0.2 (5.8) (5.6) 51
Grainger Trust plc 
Notes to the financial statements
19 Provisions for liabilities and charges
Group
2003 2002
£m £m
Deferred taxation – 3.7
Provision for retirement liabilities 6.0 –
Provision for fair value of financial instruments 6.8 –
12.8 3.7
The provision for retirement liabilities reflects an estimate for the amount required to meet a shortfall in retirement liabilities within Bromley at
the date of acquisition and is to be amortised over the expected remaining service lives of relevant employees.
The provision for fair value of financial instruments reflects the mark to market adjustment calculated on the financial instruments of Bromley
at the date of acquisition and will be amortised over the maturity periods of those financial instruments.
Deferred taxation
Amount provided Amount unprovided
2003 2002 2003 2002
£m £m £m £m
Group
Tax effect of timing differences due to:
Accelerated capital allowances 0.2 0.5 – –
Net short-term timing differences (6.3) (0.1) – –
Held over gains in stock arising from transfers from fixed assets 3.3 3.3 – –
Revalued investment properties – – 16.5 1.5
Transferred to debtors 2.8 – – –
Balance at 30 September 2003 – 3.7 16.5 1.5
£m
Group
The movements on the provisions for deferred taxation are as follows:
1 October 2002 3.7
Amount credited to profit and loss account (1.6)
Balance acquired on acquisitions (4.9)
Transferred to debtors 2.8
Balance at 30 September 2003 –
The company has no liability, potential or otherwise, to deferred taxation.
The group does not provide deferred tax on revalued investment properties, in line with FRS19 ‘Deferred taxation’, as there is no binding
agreement to sell the revalued investment properties as at the balance sheet date. 52
Grainger Trust plc 
Notes to the financial statements
20 Called-up share capital
2003 2002
£m £m
Company and group
Authorised:
32,000,000 (2002: 32,000,000) ordinary shares of 25p each 8.0 8.0
Allotted, called-up and fully paid:
24,762,697 (2002: 24,744,546) ordinary shares of 25p each 6.2 6.2
Nominal value Consideration
Number £’000 £’000
Shares issued during the year:
SAYE scheme at £2.58 6,282 2 16
SAYE scheme at £4.68 11,869 3 56
18,151 5 72
Potential issues of ordinary shares
Certain senior executives hold options to subscribe for shares in the company under executive share option schemes at prices ranging from
231.2p to 959.0p. In addition, the company operates a SAYE share option scheme for employees. Under this scheme, employees hold
options to subscribe for shares in the company at prices ranging from 258.0p to 932.3p. Under these various schemes, options on 18,151
shares were exercised in the year and options on 2,939 shares lapsed. The number of shares subject to options, the periods in which they
were granted and the periods in which they may be exercised are given below: 
Exercise price Exercise 2003 2002
Year of grant (pence) period Number Number
Executive share options
1994 231.2 1997-04 40,000 40,000
1996 292.0 – 342.5 1999-06 19,032 19,032
1997 267.1 2000-07 27,856 27,856
2003 959.0 2006-13 169,506 –
256,394 86,888
Exercise price Exercise 2003 2002
Year of grant (pence) period Number Number
SAYE share options
1998 258.0 2001-04 – 6,282
1999 308.0 2002-05 4,382 4,382
2000 466.0 2003-06 1,153 13,022
2001 690.0 2004-07 9,388 11,492
2002 818.0 2005-08 22,706 23,541
2003 932.3 2006-09 19,302 –
56,931 58,719
Total share options 313,325 145,607 53
Grainger Trust plc 
Notes to the financial statements
21 Reserves
Capital
Share premium Revaluation redemption Profit and
account reserve reserve loss account
£m £m £m £m
Group
At 1 October 2002 21.3 11.6 0.2 81.8
Issue of shares 0.1 –––
Investment properties:
Surplus on revaluation
Group – 3.1 ––
Joint Venture – 4.4 ––
Less: Recognised in the profit and loss account in the year – (1.3) ––
Realisation on disposals – (3.1) – 3.1
Tax on realisation of revaluation surpluses of Joint Venture ––– (0.9)
Arising upon consolidation of Joint Venture ––– (2.9)
Retained profit for the year ––– 25.3
At 30 September 2003 21.4 14.7 0.2 106.4
Capital
Share premium redemption Profit and
account reserve loss account
£m £m £m
Company
At 1 October 2002 21.3 0.2 85.7
Issue of shares 0.1 ––
Retained profit for the year –– 50.0
At 30 September 2003 21.4 0.2 135.7
The group financial statements do not include a separate profit and loss account for the company as permitted under section 230 of the
Companies Act 1985. The amount of group profit after taxation dealt with in the financial statements of the parent company is £54.0m
(2002: £4.6m). Included within the company’s profit and loss account balance of £135.7m is a total of £60.5m which is non-distributable 
as the profit arose on a transfer of assets between group companies (2002: £60.5m).  54
Grainger Trust plc 
Notes to the financial statements
22 Reconciliation of movements in equity shareholders’ funds 
2003 2002
£m £m
Profit for the financial year 29.3 20.9
Dividends (4.0) (3.5)
25.3 17.4
Other recognised gains and losses for the year 2.4 7.4
New share capital issued 0.1 0.6
Net additions to equity shareholders’ funds 27.8 25.4
Opening equity shareholders’ funds 121.1 95.7
Closing equity shareholders’ funds 148.9 121.1
23 Reconciliation of net cash flow to movement in net debt
2003 2002
£m £m
Increase/(decrease) in cash 71.2 (12.6)
Cash inflow from increase in debt (33.8) (8.7)
Change in net debt resulting from cash flows 37.4 (21.3)
Other non-cash items:
Loans acquired with subsidiary (493.7) (1.1)
Movement in net debt for the year (456.3) (22.4)
Net debt at 1 October 2002 (223.2) (200.8)
Net debt at 30 September 2003 (679.5) (223.2)
24 Analysis of net debt
At 1 Oct On purchase Other non At 30 Sept
2002 Cash flow of subsidiary cash changes 2003
£m £m £m £m £m
Cash at bank and in hand 10.5 71.2 –– 81.7
Debt due within one year (22.2) 30.2 (39.5) (44.9) (76.4)
Debt due after one year (211.5) (64.0) (454.2) 44.9 (684.8)
Total (223.2) 37.4 (493.7) – (679.5)
25 Minority interest – equity
2003 2002
£m £m
At 1 October 2002 – –
Minority share of profit for the year 0.1 –
At 30 September 2003 0.1 – 55
Grainger Trust plc 
Notes to the financial statements
26 Acquisitions
The following acquisitions were made during the year:
Contingent
Satisfied by deferred Acquisition Total
Percentage Date of Cash consideration expenses consideration
Company purchased acquisition £m £m £m £m
Bromley Property Holdings Limited 50% 26 September 2003 24.3 10.0 0.6 34.9
Upminster Holdings Limited 100% 2 December 2002 1.2 –– 1.2
BPT Peachey Limited 100% 13 December 2002 ––––
BPT (Peachey No2) Limited 100% 13 December 2002 ––––
Hamsard 2492 Limited 100% 13 December 2002 ––––
Hamsard 2342 Limited 100% 13 December 2002 0.4 – 0.1 0.5
BPT Bridgewater (Home Reversions No1) Limited 100% 13 December 2002 ––––
BPT Bridgewater (Home Reversions No2) Limited 100% 13 December 2002 ––––
25.9 10.0 0.7 36.6
These purchases have been accounted for using the acquisition method of accounting.
Details of the acquisition of Bromley Property Holdings Limited are shown separately in note 27. 
The contingent deferred consideration of £10.0m has been recognised because the directors believe the relevant criteria will be met. 
The £10.0m is calculated by reference to the percentage increase in the non-seasonally adjusted Nationwide House Price Index which the
figure published in respect of August 2004 represents over the figure representing August 2002. If the increase amounts to 10%, the sum 
of £5.0m will be payable, rising by £0.1m for every 0.1% additional increase to a maximum of £10.0m when the increase amounts to 15% 
or more. This consideration is payable on or before 17 December 2004.
The aggregate assets and liabilities acquired, and their provisional fair values, of the other acquisitions were:
Fair value Provisional 
Book value adjustments fair value
£m £m £m
Tangible fixed assets 0.7 – 0.7
Current assets
Trading properties 13.5 1.2 14.7
Total assets 14.2 1.2 15.4
Liabilities
Creditors (13.4) – (13.4)
Net assets acquired 0.8 1.2 2.0
Negative goodwill (0.3)
Total consideration 1.7
The fair value of the trading properties at the dates of acquisition were prepared internally on a market value basis.
The post acquisition cash flows and results of the above companies are not considered material by the directors and therefore have not
been disclosed separately in the profit and loss account or cash flow statement.
The subsidiaries acquired on 13 December 2002 were purchased from the Bromley Joint Venture. As part of this transaction, the group also
purchased properties valued at £4.5m. 56
Grainger Trust plc 
Notes to the financial statements
27 Bromley Property Holdings Limited
The company purchased the remaining 50% interest in the ordinary share capital of Bromley Property Holdings Limited (‘Bromley’) on 
26 September 2003. Prior to that, Bromley was treated as a Joint Venture in the group’s financial statements. 
The aggregate assets and liabilities acquired and their provisional fair values for the purpose of calculating negative goodwill of the 
Bromley acquisition were:
Fair value Provisional 
Book value adjustments fair value
£m £m £m
Fixed assets
Intangible assets (80.3) 80.3 –
Tangible assets 84.8 – 84.8
Current assets
Trading properties 428.0 144.9 572.9
Debtors 7.3 2.4 9.7
Cash at bank and in hand 74.9 – 74.9
Total assets 514.7 227.6 742.3
Liabilities
Creditors: amounts falling due within one year (92.7) – (92.7)
Creditors: amounts falling due after more than one year (454.2) – (454.2)
Provisions for liabilities and charges (4.7) (8.1) (12.8)
Net (liabilities)/assets acquired (36.9) 219.5 182.6
50% thereof 91.3
Consideration 34.9
Negative goodwill on acquisition (56.4)
50% share of Bromley’s negative goodwill (40.1)
Unamortised goodwill on initial acquisition of Joint Venture 0.3
Total negative goodwill (96.2)
The fair value of the properties at the date of acquisition was prepared internally on a market value basis and reviewed by Allsop & Co., as
stated in note 10. The other fair value adjustments reflect provisions for deficits on retirement schemes and the mark to market adjustment
for Bromley’s debt, together with associated provisions for deferred taxation.
The aggregate assets and liabilities acquired and their provisional fair values for the purpose of the group accounts were:
£m
Net assets as reported above 182.6
Less 50% of the fair value uplift of trading properties (72.5)
Net assets acquired on consolidation 110.1
A 50% adjustment has been made to the fair value of net assets used in the goodwill analysis above to reflect the proportion of ownership 
of these assets as part of the Joint Venture prior to Bromley becoming a subsidiary.
The post acquisition cash flows and results of Bromley are not considered material by the directors and therefore have not been disclosed
separately in the profit and loss account or cash flow statement.
The trading and profitability of Bromley, which is a ‘substantial acquisition’ as defined in FRS6, for the period to acquisition are summarised 
as follows:
1 October 2002 to
26 September 2003
£m
Turnover 114.1
Operating profit 48.3
Profit before taxation 24.4
Taxation (16.1)
Profit for the period 8.3
The profit after tax for the year ended 30 September 2002 was £8.0m. 57
Grainger Trust plc 
Notes to the financial statements
27 Bromley Property Holdings Limited (continued)
The statement of total recognised gains and losses for Bromley for the period to acquisition is as follows:
1 October 2002 to
26 September 2003
£m
Profit on ordinary activities after taxation 8.3
Unrealised surplus on revaluation of properties 8.8
Tax on realisation of revaluation surpluses (1.8)
Total recognised gains and losses 15.3
28 Pension schemes
Grainger Trust plc operates defined contribution pension schemes for its employees. The assets of the schemes are held separately from
those of the group in independently administered funds. Pension arrangements for executive directors are disclosed in the remuneration
committee report. The pension cost charge in these financial statements represents contributions payable by the group (see note 6).
BPT Limited, a wholly owned subsidiary of Bromley, currently contributes to two pension schemes. The first is a defined contribution
scheme, implemented during the year and open to all employees. The contributions are charged to the profit and loss account during the
year. The second is a defined benefit scheme, which was closed to new members and employee contributions during the year. The group
will continue to contribute so as to spread the cost over the expected remaining lives of the relevant employees.
Defined benefit scheme
The assets of the defined benefit scheme are held separately from those of the group in funds administered by trustees and are invested
with an independent investment manager. Costs and funding are assessed with the advice of an independent qualified actuary using the
projected unit method.
Actuarial valuations are carried out every three years and the last full actuarial valuation using the projected unit method was undertaken as
at 1 July 2001. Based on actuarial assumptions of an investment return of 7.5% per annum and salary increases of 6% per annum, the
assets were valued at £9.0m. These were held in a relevant insurance contract. These assets represented 85% of the value of the scheme’s
accrued liabilities. The deficiency is being met over the expected working lifetimes of the members. The pension cost in the Joint Venture for
the year ended 30 September 2003 was £0.4m (2002: £0.6m).
The actuary also undertook a Minimum Funding Requirement valuation as at 1 July 2001 in accordance with the Pensions Act 1995. The
value of the assets of the scheme was determined at 95% of the liabilities of the scheme.
FRS17 transitional disclosures
The FRS17 calculations for disclosure purposes have been based on a valuation at 1 August 2003 adjusted to 30 September 2003 by a
qualified independent actuary. The major assumptions used by the actuary were:
Discount rate 5.30% pa
Rate of increase in salaries 3.70% pa
Rate of increase in pensions in payment 5.00% pa
Inflation assumption 2.70% pa
The assets are invested in a with-profits deposit administration insurance policy with AXA Sun Life. The fund value of the assets of the
scheme was £10.5m as at 30 September 2003.
The expected rate of return on the assets was 6.3% as at 30 September 2003.
The following approximate amounts were measured in accordance with the requirements of FRS17:
30 September
2003
£m
Total market value of assets 10.5
Present value of scheme liabilities (14.2)
Deficit in the scheme (3.7)
Related deferred tax assets 1.1
Net pension liability (2.6) 58
Grainger Trust plc 
Notes to the financial statements
28 Pension schemes (continued)
If these amounts had been recognised as part of the net assets of Bromley, the adjustment to the pension liability of £2.6m would have been
reflected in the net assets acquired as at 26 September 2003. The adjustment to pensions balances to reflect the adoption of FRS17 would
be to goodwill, with nil net impact on net assets and the profit and loss reserve. Consequently, the disclosure requirements of FRS17 with
respect to the impact of the above net pension liability measured in accordance with FRS17 have not been presented.
The following amounts would have been recognised in the performance statements of the Joint Venture in the year to 30 September 2003
under the requirements of FRS17:
£m
Operating profit
Current service cost 0.3
Past service cost –
Total operating charge 0.3
Other finance income
Interest on pension scheme liabilities (0.7)
Expected return on pension scheme assets 0.6
Net return (0.1)
Statement of total recognised gains and losses
Actual return less expected return on pension scheme assets (0.3)
Experience gains and losses arising on the scheme liabilities 0.1
Changes in assumptions underlying the present value of the scheme liabilities (1.1)
Actuarial loss recognised (1.3)
Movements in deficit for the year ended 30 September 2003
£m
Deficit in scheme at 1 October 2002 (3.1)
Movement in year:
Current service cost (0.3)
Past service cost –
Contributions 1.1
Other finance income (0.1)
Actuarial loss (1.3)
Deficit in scheme at year end (3.7) 59
Grainger Trust plc 
Notes to the financial statements
28 Pension schemes (continued)
Details of experience gains and losses for the year ended 30 September 2003.
1. Difference between the expected and actual return on scheme assets
Amount £(0.3m)
Percentage of scheme assets (2.9%)
2. Experience gains and losses on scheme liabilities
Amount £0.1m
Percentage of the present value of the scheme liabilities 0.1%
3. Total amount recognised in statement of total recognised gains and losses
Amount £(1.3m)
Percentage of the present value of the scheme liabilities (9.2%)
29 Contingent liabilities
The company, in conjunction with certain other group companies, has guaranteed bank loans and other loans of subsidiary companies
amounting at 30 September 2003 to £243.8m (2002: £208.3m).
30 Post balance sheet events
On 21 November 2003, the company announced the early redemption of its 2024 quoted debenture stock, of £2.5m, with an early
redemption cost of £1.8m.
31 Related party transactions
In accordance with the provisions of FRS8 ‘Related Party Disclosures’, details of transactions with subsidiary undertakings are not disclosed.
There are no other related party transactions in addition to those already disclosed in the financial statements. 60
Grainger Trust plc 
Notice of the annual general meeting
Notice of the annual general meeting
For the year ended 30 September 2003.
Notice is hereby given that the ninety-first annual general meeting of the company will be held at Citygate, St James’ Boulevard, Newcastle
upon Tyne NE1 4JE on 26 February 2004 at 12.15 pm for the following purposes:
As routine business, to consider and, if thought fit, pass the following resolutions as ordinary resolutions of the company:
1. That the directors’ report and the audited financial statements for the year ended 30 September 2003 be approved and adopted.
2. That the remuneration committee report for the year ended 30 September 2003 be approved.
3. That a dividend of 12.80p per share be paid on 5 March 2004 to all holders of ordinary shares on the register of members of the
company at the close of business on 13 February 2004, in respect of all ordinary shares then registered in their names.
4. That Robert Dickinson be re-elected as a director.
5. That Robin Herbert be re-elected as a director.
6. That John Barnsley (having been appointed since the last annual general meeting) be re-elected as a director.
7. That PricewaterhouseCoopers LLP be re-appointed auditors of the company to hold office until the conclusion of the next general
meeting at which accounts are laid before the company and that their remuneration be fixed by the directors.
As special business, to consider and, if thought fit, pass the following resolutions 8 and 9 which will be proposed as special resolutions of
the company.
8. That the directors be empowered pursuant to section 95 of the Companies Act 1985 (the ‘Act’) to allot equity securities (as defined in
section 94(2) of the Act) (including as described in section 94(3A) of the Act) for cash pursuant to the authority conferred by resolution 
7 passed at the annual general meeting of the company on 29 February 2000 as if section 89(1) of the Act did not apply to any such
allotment, provided that this power shall be limited to:
(a) the allotment of equity securities in connection with any rights issue, open offer or other pre-emptive offer to holders of equity securities in
proportion (as nearly as may be practicable) to their respective holdings of such equity securities, but subject to such exclusions or other
arrangements as the directors may deem necessary or expedient in relation to fractional entitlements or any legal or practical problems
under the laws of any territory or the requirements of any regulatory body or stock exchange in any territory or any other matter
whatsoever; and
(b) otherwise than pursuant to paragraph (a) above, the allotment of equity securities up to an aggregate nominal amount of £310,033.
and shall expire on the conclusion of the next annual general meeting of the company after the passing of this resolution or 15 months from
the date of this resolution (whichever is earlier) except that the company may before such expiry make an offer or agreement which would
or might require equity securities to be allotted after such expiry and the directors may allot equity securities in pursuance of any such offer
or agreement notwithstanding that the power conferred by this resolution has expired.
All powers previously conferred under section 95 of the Act are revoked, but such revocation shall not have retrospective effect. 61
Grainger Trust plc 
Notice of the annual general meeting
9. That the company be generally and unconditionally authorised for the purposes of section 166 of the Companies Act 1985 (the ‘Act’) to
make one or more market purchases (within the meaning of section 163(3) of the Act) on the London Stock Exchange of ordinary shares
of 25p each in the capital of the company provided that:
(a) the maximum aggregate number of ordinary shares hereby authorised to be purchased is 3,720,404;
(b) the minimum price which may be paid for such shares is 25p per ordinary share;
(c) the maximum price which may be paid for such ordinary shares shall not be more than 5% above the average of the market values for
an ordinary share as derived from the London Stock Exchange’s Daily Official List for the five business days immediately preceding the
date on which the ordinary shares are purchased;
(d) unless previously renewed, varied or revoked, the authority hereby conferred shall expire at the conclusion of the company’s next annual
general meeting or 15 months from the date of this resolution (whichever is earlier); and
(e) the company may make a contract or contracts to purchase ordinary shares under the authority conferred by this resolution prior to the
expiry of such authority which will or may be executed wholly or partly after the expiry of such authority and may make a purchase of
ordinary shares in pursuance of any such contract or contracts.
By order of the board
Marie Glanville
Company secretary
16 January 2004
Citygate
St James’ Boulevard
Newcastle upon Tyne
NE1 4JE 62
Grainger Trust plc 
Five year record
Five year record
For the year ended 30 September 2003
1999 2000 2001 2002 2003
£m
Turnover** 60.1 68.2 124.7 213.8 173.6
Gross rentals 22.8 24.7 23.2 22.0 21.4
Sales of investment properties 13.3 19.9 40.0 7.1 2.1
Trading profits 12.6 19.7 26.5 33.7 38.8
Profit before taxation** 12.4 16.4 21.1 44.9 48.5
Profit after taxation and minority interests** 9.0 11.1 12.9 23.5 29.3
Dividends paid 2.4 2.7 3.0 3.5 4.0
pence per share
Earnings** 35.7 44.1 52.5 95.3 118.5
Dividends 9.32 10.72 12.33 14.18 16.31
£m
Fixed assets and stocks on a financial statement basis 250.4 284.6 316.0 374.7 909.4
Fixed assets and stocks at market value*** 335.0 439.3 554.9 680.3 1,305.8
Share capital and reserves 95.1 86.8 95.7 121.1 148.9
£ per share
Net asset value on financial statements basis 3.77 3.52 3.88 4.89 6.01
Net asset value including fixed assets and stocks
at replacement value* 7.13 9.79 13.56*** 17.24*** 21.94
Dividend cover** 3.8x 4.2x 4.3x 6.7x 7.3x
Gearing 76% 74% 60% 52% 125%
Share price at 30 September 397.5p 575.0p 757.5p 992.5p 1,365.0p
Figures for 1999 to 2001 are restated, where relevant, to take account of FRS19. In addition:
*Corporation tax has not been provided on valuation surpluses relating to stocks.
**Excluding exceptional items and including share of Joint Venture
***2001 and 2002 includes share of the market value of Joint Venture properties and negative goodwill write back. 63
Grainger Trust plc 
Shareholders’ information
Shareholders’ information
Financial calendar
Annual general meeting
26 February 2004
Payment of 2003 final dividend
5 March 2004
Announcement of 2004 interim results 
June 2004
Payment of 2004 interim dividend
July 2004
Announcement of 2004 final results
December 2004
Share price
During the year ended 30 September 2003,
the range of mid market prices of the
company’s ordinary shares were:
Price at 30 September 2003 1,365.0p
Lowest price during the year 926.5p
Highest price during the year 1,460.0p
Daily information on the company’s share
price can be obtained on our website or by
telephoning:
The Financial Times Cityline Service 
on 09068 432 750.
Capital gains tax
The market value of the company’s 
shares for capital gains tax purposes 
at 31 March 1982 was 30.4p.
Website
Website address www.graingertrust.co.uk
Shareholders’ enquiries
All administrative enquiries relating to
shareholdings (for example, notification 
of change of address, loss of share
certificates, dividend payments) should be
addressed to the company’s registrar at:
Capita IRG plc, The Registry, 
34 Beckenham Road, Beckenham, Kent
Secretary and registered office
Marie Glanville
Citygate
St James’ Boulevard
Newcastle upon Tyne
NE1 4JE
Solicitors
Dickinson Dees, St Ann’s Wharf,
112 Quayside, Newcastle upon Tyne
Denton Wilde Sapte, 5 Chancery Lane,
Cliffords Inn, London
Hammonds,
2 Park Lane, Leeds
Financial public relations
Baron Philips Associates,
131 Finsbury Pavement, London
NP Public Relations and Marketing
8 Mosley Street,
Newcastle upon Tyne
Bankers
Barclays Bank PLC, Regent Centre,
Gosforth, Newcastle upon Tyne
Bank of Scotland, 41/51 Grey Street,
Newcastle upon Tyne
Nationwide Building Society, 
Kings Park Road, Moulton Park,
Northampton
Royal Bank of Scotland, Keel Row House,
Quayside, Newcastle upon Tyne
Lloyds TSB Bank plc,
6/7 Park Row, Leeds
Auditors
PricewaterhouseCoopers LLP ,
89 Sandyford Road, 
Newcastle upon Tyne
Stockbrokers
Cazenove & Company Ltd,
20 Moorgate, London
Brewin Dolphin Securities,
Commercial Union House, 
39 Pilgrim Street, Newcastle upon Tyne
Registrars and transfer office
Capita IRG plc, The Registry, 
34 Beckenham Road, Beckenham, Kent
Advisers 64
Grainger Trust plc 
Glossary of terms
Glossary of terms
Property 
Assured periodic tenancy (‘APT’) Market rented tenancy arising from succession from regulated. Tenant has security of tenure. 
Assured shorthold tenancy (‘AST’) Market rented tenancy where landlord may obtain possession if appropriate notice served.
Assured tenancy (‘AT)’ Market rented tenancy where tenant has right to renew.
Investment value (‘IV’) Open market value of a property subject to relevant tenancies in place.
Life tenancy Rent free tenancy where tenant has right of occupation until possession is forfeited (usually
on death). If tenant retains an equity interest in the property this is a partial life tenancy. 
Regulated tenancy Tenancy regulated under 1977 Rent Act, rent (usually sub market) set by rent officer and
tenant has security of tenure.
Tenanted Residential (‘TR’) Activity covering the acquisition, renting out and subsequent sale (usually on vacancy) of
residential units subject to a tenancy agreement.
Vacant possession value (‘VP’) Open market value of a property free from any tenancies.
Financial 
Cap Financial instrument which, in return for a fee, guarantees an upper limit for the interest 
rate on a loan.
Contingent tax The amount of tax that would be payable should assets be sold at the market value shown
in the accounts.
Dividend cover Earnings per share divided by dividends per share.
Earnings per share (‘EPS’) Profit attributable to shareholders divided by the weighted average number of shares in
issue in the year.
FRS13 Accounting standard requiring the disclosure of the market value of long-term debt and
financial instruments.
FRS19 Accounting standard prohibiting the provision of deferred tax on stock revaluation 
surpluses when companies are acquired. 
Gearing The ratio of borrowings net of cash to net asset value.
Hedging The use of financial instruments to protect against interest rate movements.
Interest cover Profit on ordinary activities before interest and tax divided by net interest payable. 
Negative goodwill On acquisition of a company, the surplus of the value of the statutory net assets acquired
over the purchase price paid.
Net asset value (‘NAV’) Shareholders’ funds adjusted for the market value of property assets held as stock.
Net net asset value (triple net or ‘NNNAV’) NAV adjusted for contingent tax liabilities which would accrue if assets sold at market 
value and for the market value of long-term debt and derivatives. 
Swap Financial instrument to protect against interest rate movements.
Total Shareholder Return (‘TSR’) Return attributable to shareholders on basis of share price growth with dividends reinvested.
Weighted average cost of capital (‘WACC’) The weighted average cost of funding the group’s activities through a combination of
shareholders’ funds and debt.
Corporate 
BPT plc Formerly Bradford Property Trust plc. Major residential investor acquired by Bromley in 
May 2001.
Bromley Joint Venture (‘Bromley JV’) The Joint Venture between Grainger and Deutsche Bank which acquired BPT plc.
Bromley Property Holdings Limited (‘Bromley’) Holding company of the vehicle used to acquire BPT plc.
Deutsche Bank (‘DB’) Joint venture partners in acquisition of BPT plc. Corporate addresses
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Newcastle office
Citygate
St James’ Boulevard
Newcastle upon Tyne
NE1 4JE
London office
203 Brompton Road
London
SW3 1LA
Harborne office
The Circle
Harborne
Birmingham
B17 9DY
Martlesham office
42a Barrach Square
Martlesham Heath
Ipswich 
Suffolk
IP5 3RF
Epsom office
Kings Lodge
28 Church Street
Epsom 
Surrey
KT17 4QB
Altrincham office
St John’s House
Barrington Road
Altrincham 
Cheshire
WA14 1TJ Grainger Trust plc
Newcastle office:
Citygate
St James’ Boulevard
Newcastle upon Tyne
NE1 4JE
London office:
203 Brompton Road
London
SW3 1LA
Email
info
@
graingertrust.co.uk
Website
www.graingertrust.co.uk
Company Registration No.
125575
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