Final Results

Foreign & Colonial Eurotrust PLC
03 November 2006

Date:       3 November 2006



Contact:    Peter Jarvis
            F&C Management Limited
            020 7628 8000


                        FOREIGN & COLONIAL EUROTRUST PLC
                   Unaudited Preliminary Statement of Results
                      for the year ended 30 September 2006

HIGHLIGHTS

• Net asset value per share rose by 17.0% from 624.9p to 731.2p, compared with 
  a rise of 16.0% in the FTSE World Europe ex UK Index (sterling adjusted).

• Share price rose by 18.7% from 560.0p to 664.5p.

• The Board is recommending an unchanged final dividend of 1.7p per share and 
  will pay a special dividend of 7.3p, to give a combined dividend of
  9.0p.  This compares with last year's combined dividend of 7.5p.




SUMMARY OF RESULTS

                                                             30 September 2006         30 September 2005       % Change

Net assets                                                              £406.69m               *£391.35m           +3.9

Net asset value per share                                                731.20p                *624.89p          +17.0

Earnings per share                                                         8.73p                   6.97p          +25.3

Dividends per share                                                        9.00p                   7.50p          +20.0

Share price                                                              664.50p                 560.00p          +18.7



* Restated to reflect changes in accounting policies (see note 1).


Extracts from the Chairman's Statement

Capital Performance | Over the year to 30 September 2006, Continental European
markets made good progress despite a background of moderating global growth,
rising interest rates and all time high commodities prices.  Your Company's net
asset value per share rose by 17.0% from 624.9p to 731.2p compared with a rise
of 16.0% in the FTSE World Europe ex UK Index (sterling adjusted).  The
Company's share price rose by 18.7% from 560.0p to 664.5p.  The discount
narrowed during the year with the strong performance of markets and further
repurchases of shares. The results incorporate the impact of new accounting
standards.


Revenue | Our gross income for the year increased, reflecting the higher income
generated from the portfolio of stocks, in turn reflecting the significant
increase in corporate earnings over the year.  Expenses have also increased as
the management fee has risen in line with the increased value of the portfolio.
The net revenue return attributable to shareholders has increased by 7.8% from
£4.7m to £5.0m.


Dividend | As in previous years, the Board is declaring a special dividend and
is proposing a final dividend. The Board is recommending an unchanged final
dividend of 1.7p per share and will pay a special dividend of 7.3p, to give a
combined dividend of 9.0p.  This compares with last year's combined dividend of
7.5p and reflects the increased net revenue available for distribution.  The
combined dividend appears higher than earnings per share as it is based on the
number of shares in issue today rather than the average outstanding during the
year, which is the case for earnings per share. The total amount distributed is
slightly less than the Company's net earnings for the year.


Gearing | The effective gearing of the Company was 6.5% at 30 September 2006,
reflecting our positive stance on the market taken during 2006. It is the policy
of the Board that the level of gearing should not exceed 20%.


Share Buy-Backs | The Company bought back and cancelled 7,007,702 shares during
the financial year, and a further 235,587 shares have been bought back and
cancelled since the year end.  The Board will again propose to the Annual
General Meeting that the Company be granted powers to make further repurchases
as appropriate.  We continue to monitor the level of discount to net asset value
at which your shares trade and believe that share buy-backs are an important
factor in addressing supply/demand imbalances while at the same time increasing
the net asset value per share.





Douglas McDougall
November 2006


INCOME STATEMENT




for the year ended 30 September                                                2006                                2005
                                                        Revenue   Capital    Total*       Revenue     Capital    Total*
                                                                                                    Restated+ Restated+
                                                         £'000s    £'000s    £'000s        £'000s      £'000s    £'000s

Gains on investments                                          -    56,792    56,792             -      87,270    87,270
Exchange gains/(losses)                                     (9)        55        46           (1)       (484)     (485)
Income                                                   11,621         -    11,621        10,011           -    10,011
Management fee                                          (2,498)         -   (2,498)       (2,330)           -   (2,330)
Other expenses                                            (655)      (45)     (700)         (739)        (27)     (766)
Net return before finance costs and taxation              8,459    56,802    65,261         6,941      86,759    93,700
Finance costs                                           (1,216)         -   (1,216)         (347)           -     (347)
Return on ordinary activities before taxation             7,243    56,802    64,045         6,594      86,759    93,353
Taxation on ordinary activities                         (2,200)         -   (2,200)       (1,914)        (36)   (1,950)
Return attributable to equity shareholders                5,043    56,802    61,845         4,680      86,723    91,403

Return per ordinary share - pence                          8.73     98.28    107.01          6.97      129.10    136.07



* The total column of this statement is the profit and loss account of the
Company.

+ Restated to reflect changes in accounting policies (see note 1).

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

A statement of total recognised gains and losses is not required as all gains
and losses of the Company have been reflected in the above statement.



RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

                                          Called up      Share       Capital                            Total equity
                                              share    premium    redemption       Capital    Revenue  shareholders'
                                            capital    account       reserve      reserves    reserve          funds
                                             £'000s     £'000s        £'000s        £'000s     £'000s         £'000s
Balance at 30 September 2004
as previously reported                       16,998    123,749         1,813       183,271      3,529        329,360
Add: accrued dividends at
    30 September 2004                             -          -             -             -      3,672          3,672
Less: investment valuation restatement            -          -             -         (220)          -          (220)

Balance at 30 September 2004 restated        16,998    123,749         1,813       183,051      7,201        332,812
Movements during the year ended
    30 September 2005
Dividends paid                                    -          -             -             -    (3,646)        (3,646)
Shares purchased by the Company             (1,341)          -         1,341      (29,215)          -       (29,215)
Return attributable to equity
shareholders as previously reported               -          -             -        86,848      4,680         91,528
Less: investment valuation restatement            -          -             -         (125)          -          (125)

Balance at 30 September 2005 restated        15,657    123,749         3,154       240,559      8,235        391,354
Movements during the year ended
    30 September 2006
Dividends paid                                    -          -             -             -    (4,417)        (4,417)
Shares purchased by the Company             (1,752)          -         1,752      (42,092)          -       (42,092)
Return attributable to equity                     
shareholders                                      -          -             -        56,802      5,043         61,845

Balance at 30 September 2006                 13,905    123,749         4,906       255,269      8,861        406,690


BALANCE SHEET


At 30 September                                                                    2006                            2005
                                                                                                              Restated*
                                                               £'000s            £'000s        £'000s            £'000s
Fixed assets
Listed investments                                                              437,827                         403,303
Current assets
Debtors                                                           306                          24,083
Taxation recoverable                                              360                             416
Cash at bank and short-term deposits                            3,923                          14,907
                                                                4,589                          39,406

Creditors: amounts falling due within one year
Foreign currency loans                                       (30,517)                        (23,853)
Other                                                         (5,209)                        (27,502)
                                                             (35,726)                        (51,355)
Net current liabilities                                                        (31,137)                        (11,949)
Net assets                                                                      406,690                         391,354
Capital and reserves
Called-up share capital                                                          13,905                          15,657
Share premium account                                         123,749                         123,749
Capital redemption reserve                                      4,906                           3,154
Capital reserves                                              255,269                         240,559
Revenue reserve                                                 8,861                           8,235
                                                                                392,785                         375,697
Total equity shareholders' funds                                                406,690                         391,354
Net asset value per ordinary share - pence                                       731.20                          624.89



* Restated to reflect changes in accounting policies (see note 1).



The geographical distribution of investments at 30 September 2006 was:

Switzerland - 20.1%, France - 18.3%, Germany - 11.4%, Italy - 8.8%, Spain - 7.3%, Sweden - 6.7%,
Netherlands - 5.9%, Greece - 5.5%, Finland - 4.9%, Norway - 4.8%, Belgium - 2.4%, Ireland - 2.4%,
Austria - 0.9%, Denmark - 0.6%.


SUMMARY CASH FLOW STATEMENT

for the year ended 30 September                                                          2006                      2005
                                                                                       £'000s                    £'000s
Net cash inflow from operating activities                                               8,307                     7,144
Cash outflow from servicing of finance                                                (1,225)                     (436)
Total tax paid                                                                        (2,161)                   (1,904)
Net cash inflow from financial investment                                              47,754                    15,144
Equity dividends paid                                                                 (4,417)                   (3,646)
Net cash inflow before use of liquid resources and financing                           48,258                    16,302
Decrease/(increase) in short-term deposits                                             13,884                  (13,992)
Net cash outflow from financing                                                      (59,199)                   (2,736)
Increase/(decrease) in cash                                                             2,943                     (426)

Reconciliation of net cash flow movement to movement in net debt
Increase/(decrease) in cash                                                             2,943                     (426)
(Decrease)/increase in short-term deposits                                           (13,884)                    13,992
Increase in short-term loans                                                          (6,782)                   (2,590)
Movement in net debt resulting from cash flows                                       (17,723)                    10,976
Exchange movement                                                                          75                     (475)
Movement in net debt                                                                 (17,648)                    10,501
Net debt brought forward                                                              (8,946)                  (19,447)
Net debt carried forward                                                             (26,594)                   (8,946)


Notes

1    ACCOUNTING POLICIES

Changes in accounting policies

With effect from 1 October 2005, the Company has adopted the following Financial
Reporting Standards (FRS):

FRS 21 (Events after the Balance Sheet date)

Dividends paid by the Company are accounted for in the period in which the
Company is liable to pay them.  Previously, the Company accrued dividends in the
period in which the net revenue, to which those dividends related, was accounted
for.

FRS 25 (Financial Instruments: Disclosure and Presentation) and FRS 26
(Financial Instruments: Measurement)

The Company has designated its assets as being measured at 'fair value through
profit and loss'. The fair value of fixed asset listed investments is deemed to
be the bid value of those investments at the close of business on the relevant
date. Previously, all listed investments were valued at mid value.

There have been no other changes to significant accounting policies during the
year.

The comparatives for the year ended 30 September 2005 have been restated to give
effect to the above changes.  Notes 3 and 4 further explain these restatements.


2    DIVIDENDS

The Directors recommend a final dividend in respect of the year ended 30
September 2006 of 1.7p (2005 - 1.7p) and have declared a special dividend of
7.3p (2005 - 5.8p), both payable on 21 December 2006 to all shareholders on the
register at close of business on 17 November 2006.


3    RETURN PER ORDINARY SHARE

Revenue return

The revenue return per share is based on the revenue return attributable to
equity shareholders of £5,043,000 profit (2005: £4,680,000 profit).

Capital return

The capital return per share is based on the capital return attributable to
equity shareholders of £56,802,000 profit (2005: £86,723,000 profit, restated).

The capital return per share for the year ended 30 September 2005 has been
decreased by £125,000 (0.19 pence per share). This reflects the effect of the
reduction in valuation of investments at 30 September 2004 by £220,000 and 30
September 2005 by £345,000.

Both the revenue and capital returns per share as based on a weighted average of
57,792,436 ordinary shares in issue during the year (2005: 67,173,257).


4    RESTATEMENT OF OPENING BALANCES


Balance Sheet                                   Previously reported                                            Restated
                                                  30 September 2005               Adjustment          30 September 2005
                                                             £'000s                   £'000s                     £'000s
Fixed assets
Listed investments*                                         403,648                    (345)                    403,303
Current assets
Debtors                                                      24,083                        -                     24,083
Taxation recoverable                                            416                        -                        416
Cash at bank and short-term deposits                         14,907                        -                     14,907
                                                             39,406                        -                     39,406
Creditors: amounts falling due within one year
Foreign currency loans                                     (23,853)                        -                   (23,853)
Other+                                                     (32,199)                    4,697                   (27,502)
                                                           (56,052)                    4,697                   (51,355)
Net current liabilities                                    (16,646)                    4,697                   (11,949)
Net assets                                                  387,002                    4,352                    391,354
Capital and reserves
Called up share capital                                      15,657                        -                     15,657
Share premium account                                       123,749                        -                    123,749
Capital redemption reserve                                    3,154                        -                      3,154
Capital reserves*                                           240,904                    (345)                    240,559
Revenue reserve+                                              3,538                    4,697                      8,235
Total equity shareholders' funds                            387,002                    4,352                    391,354
Net asset value per share
- pence                                                      617.94                     6.95                     624.89



Notes to the restatement of opening balances

*  Effect of revaluation of fixed asset investments from middle market to bid
value.

+ Effect of not recognising the recommended final dividend and the declared
special dividend until after the balance sheet date.


4    RESTATEMENT OF OPENING BALANCES (continued)


Balance Sheet                                   Previously reported                                            Restated
                                                  30 September 2004               Adjustment          30 September 2004
                                                             £'000s                   £'000s                     £'000s
Fixed assets
Listed investments*                                         353,186                    (220)                    352,966
Current assets
Debtors                                                       2,065                        -                      2,065
Taxation recoverable                                            304                        -                        304
Cash at bank and short-term deposits                          1,281                        -                      1,281
                                                              3,650                        -                      3,650
Creditors: amounts falling due within one year
Foreign currency loans                                     (20,728)                        -                   (20,728)
Other+                                                      (6,748)                    3,672                    (3,076)
                                                           (27,476)                    3,672                   (23,804)
Net current liabilities                                    (23,826)                    3,672                   (20,154)
Net assets                                                  329,360                    3,452                    332,812
Capital and reserves
Called up share capital                                      16,998                        -                     16,998
Share premium account                                       123,749                        -                    123,749
Capital redemption reserve                                    1,813                        -                      1,813
Capital reserves*                                           183,271                    (220)                    183,051
Revenue reserve+                                              3,529                    3,672                      7,201
Total equity shareholders' funds                            329,360                    3,452                    332,812
Net asset value per share
- pence                                                      484.41                     5.08                     489.49


Notes to the restatement of opening balances

* Effect of revaluation of fixed asset investments from mid to bid value.

+ Effect of not recognising the recommended final dividend and the declared
special dividend until after the balance sheet date.


5    FINANCIAL INFORMATION

The above financial information comprises non-statutory accounts within the
meaning of section 240 of the Companies Act 1985.  The financial information for
the year ended 30 September 2005 has been extracted from published accounts
(except as restated) for the year ended 30 September 2005 that have been
delivered to the Registrar of Companies and on which the report of the auditors
was unqualified.


6    ANNUAL GENERAL MEETING

The Annual General Meeting will be held on Thursday 14 December at 10:30 am at
the offices of F&C Management at Exchange House, Primrose Street, London EC2A 
2NY.


7    REPORT AND ACCOUNTS

The Report and Accounts will be posted to shareholders in mid November 2006.
Copies may be obtained thereafter during normal business hours from the
Company's Registered Office, Exchange House, Primrose Street, London EC2A 2NY.





By order of the Board
F&C Management Limited, Secretary
3 November 2006


                      This information is provided by RNS
            The company news service from the London Stock Exchange