Interim Results

Acorn Income Fund Ld
11 September 2000


ACORN INCOME FUND LIMITED (the 'Company')

INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2000

CHAIRMAN'S STATEMENT

I am pleased to report that the Company has continued to meet its investment
objectives.

The successful implementation of the Company's investment policy has resulted
in an increase of 2.3 per cent. in the net asset value per share of the
Company during the period under review, thus outperforming our benchmarks.  In
addition, first and second interim dividends of 2.5p per share were paid to
shareholders on 5 April and 28 June respectively.  Further dividends are
expected to be declared and paid in September and December this year, and the
Board has no reason to doubt that the Company will be able to meet the
forecast total dividend of 11p per share for the current year, made at the
time of the latest share placing in September 1999.

With effect from 1 July 2000 the Company's smaller company investment adviser
changed from Granville Investment and Pensions Limited to Unicorn Asset
Management Limited. This followed the buyout of the smaller company fund
management business of Granville Investment and Pensions Limited by Peter Webb
and his team through a newly established company, Unicorn Asset Management
Limited.

The Company has not raised additional loan or share capital during the period
under review.

At the time of writing, our most recent published net asset value, as at 31
August 2000, has grown to 134.49p per share.  It is pleasing to note that our
share price has consistently traded at a premium to its underlying net asset
value.  The Board remains confident that, subject market conditions, the
Company will continue to meet its investment objectives.


Martin Bralsford

11 September 2000


BALANCE SHEET
as at 30 June 2000 (unaudited)

                                                30 June 2000     30 June 1999
                                                       £'000            £'000

Fixed assets
  Investments listed at market value                  57,372           22,146

Current assets
  Debtors                                                936              925
  Cash at bank                                           655              547
                                                      ------           ------
                                                       1,591            1,472
Creditors - amounts falling due within one year
  Creditors                                             (634)          (1,411)
                                                      ------           ------
Net current assets                                       957               61

Creditors - amounts falling due after more than
  one year
  Long term bank loan                                (23,337)          (8,000)
                                                      ------           ------
Net asset value                                       34,992           14,207
                                                      ------           ------
Share capital reserves
  Share capital                                        6,750            3,000
  Share premium                                       24,317            8,680
  Profit & loss account                                  638              210
  Capital reserve                                      3,287            2,317
                                                      ------           ------
                                                      34,992           14,207
                                                      ------           ------
NET ASSETS PER 25P ORDINARY SHARE                     129.6p           118.4p

These accounts are unaudited and are not the Company's statutory accounts.


STATEMENT OF TOTAL RETURN
for the six months to 30 June 2000 (unaudited)

                               Six months to              For the Period
                               30 June 2000        11 February to 30 June 1999
                        Revenue   Capital   Total   Revenue   Capital   Total
                          £'000    £'000    £'000     £'000     £'000   £'000

Gains on investments               1,260    1,260               2,831   2,831
Income                    2,105             2,105       547               547
Investment management
  fee                       (70)    (211)    (281)      (18)      (53)    (71)
Other expenses              (62)     (14)     (76)      (29)     (313)   (342)
                        --------------------------    ------------------------
Net return on ordinary
  activities before 
  finance costs           1,973    1,035    3,008       500     2,465   2,965

Interest payable           (222)    (665)    (887)      (50)     (148)   (198)
                        --------------------------    ------------------------
Return on ordinary
  activities for the
  period                  1,751      370    2,121       450     2,317   2,767

Interim dividend         (1,350)           (1,350)     (240)             (240)
                        --------------------------    ------------------------
                            401      370      771       210     2,317   2,527
                        --------------------------    ------------------------
Return per Ordinary
  Share (retained)        1.49p    1.37p    2.86p     3.97p    20.45p  24.42p
                        --------------------------    ------------------------

Dividend per Ordinary
  Share (distributed)      5.0p        -     5.0p      2.0p         -    2.0p
                        --------------------------    ------------------------

Total Return              6.49p    1.37p    7.86p     5.97p    20.45p  26.42p
                        --------------------------    ------------------------

These accounts have been prepared in accordance with UK generally accepted
accounting practice and using the accounting policies adopted for the
Company's statutory annual accounts.

These accounts are unaudited and are not the Company's statutory accounts.