Interim Results

Foreign & Colonial Eurotrust PLC
27 May 2003



EMBARGOED UNTIL 07.00AM ON TUESDAY 27 MAY 2003


Contact: Stephen White, F&C Management Limited, 020 7628 8000/Emma Chilvers,
Lansons Communications, 020 7294 3606


                        FOREIGN & COLONIAL EUROTRUST PLC
                     Unaudited Interim Statement of Results
                     for the half-year ended 31 March 2003

HIGHLIGHTS


•          Between the year end at 30 September 2002 and 31 March 2003, the net
assets per share rose from 351.8p to 359.0p, an increase of 2.0%. This compares
with a gain of 1.2% over the same period in the FTSE AWI - Europe ex UK Index.


•         Since the start of the war with Iraq the European markets have staged
a welcome recovery, and at 30 April the net asset value per share had risen to
414.8p.


SUMMARY OF RESULTS


                                            31 March 2003       30 September 2002               % change

Net assets                                       £266.20m                £264.56m                  +0.62


Net asset value per share                         358.99p                 351.82p                  +2.04

Share price                                       280.00p                 277.00p                  +1.08



                                          6 months to           6 months to
                                        31 March 2003         31 March 2002

Revenue loss per share                        (0.24)p               (0.59)p


Chairman's Statement


Dear Shareholder

Between the year end at 30 September 2002 and 31 March 2003, the net assets per
share rose from 351.8p to 359.0p, an increase of 2.0%.  This compares with a
gain of 1.2% over the same period in the FTSE AWI - Europe Index, which excludes
the United Kingdom and is adjusted for the movement in sterling against the
European currencies. Since the start of the war with Iraq the European markets
have staged a welcome recovery, and at 30 April the net asset value per share
had risen to 414.8p.



Review of Markets

The European equity markets remained volatile over the six months.  Having moved
ahead initially last autumn, they declined again thereafter, thereby showing a
net loss over the period. For UK investors, however, this was more than offset
by sterling's weakness against the euro, resulting in the small overall gain
mentioned above. War worries, mixed economic data and a decline in the dollar
all undermined sentiment despite successive cuts in interest rates by the
European Central Bank. The corporate sector also gave little encouragement. Few
companies reported results ahead of expectations, guidance for the year ahead
was cautious given the general uncertainties and the insurance sector in
particular continued to disappoint. Other than the bid by Credit Agricole for
Credit Lyonnais in France there was little corporate activity in the markets,
and volumes on the exchanges were generally low throughout. Although the markets
fell in local currency over the period and sentiment remained poor, it was
perhaps somewhat surprisingly not the more defensive sectors that performed
best, suggesting investors were nonetheless raising the risk profile of their
portfolios in the belief that the worst of the earnings decline had been seen.
The best performing sectors thus included the telecoms, media and technology
companies, which had suffered the most in the bear market, as well as the banks,
while the poorer performers included the pharmaceuticals, food and drinks
companies, utilities and insurers.



Portfolio Strategy

We made a couple of changes to the portfolio over the period in terms of
sectors. First, we trimmed our overweight position in telecoms. The sector had
performed well since we had gone overweight as the telecom operators
subsequently announced major cutbacks in capital investment and focussed with
success on generating cash flow in order to improve their balance sheets.
Secondly, we reduced again our exposure to insurance companies on concern over
the impact of the falls in markets on their solvency positions and the
likelihood that they would need to raise capital. With the proceeds, we added to
sectors more likely to benefit from the eventual pick-up in industrial activity
and where valuations seemed well supported, such as the automobiles, chemicals
and consumer durables. We kept a neutral weighting in oils throughout as
attractive valuations offset the likelihood of a fall in the price of crude in
the aftermath of any conflict with Iraq. The gearing of the trust rose over the
period as we financed our buying-in of shares on attractive discounts through
increased borrowings.



Unaudited Figures

The revenue account for the period, as is usually the case at the interim stage,
shows a loss due to the fact that most European companies pay their annual
dividend in the summer months, while costs are incurred throughout. The interim
figures should thus not be taken as indicative of the revenue return for the
full year. The loss this period is lower than at the interim stage last year,
due mainly to the lower management fee with the fall in the value of the
portfolio compared to a year ago.



Douglas McDougall
23 May 2003



Unaudited Balance Sheet
                                                             31 March 2003         31 March 30 September 2002
                                                                    £'000s             2002            £'000s
                                                                                     £'000s
Fixed assets
Investments                                                        277,237          412,657           274,890


Current assets
Debtors                                                                996            4,020             1,429
Taxation recoverable                                                   494              421               537
Cash at bank and short-term deposits                                   212           12,070               382
                                                                     1,702           16,511             2,348

Current liabilities
Creditors: amounts falling due within one year
Foreign currency loans                                            (11,736)          (6,739)           (6,913)
Other                                                                (989)          (8,037)           (5,770)
                                                                  (12,725)         (14,776)          (12,683)



Net current (liabilities)/assets                                  (11,023)            1,735          (10,335)

Net assets                                                         266,214          414,392           264,555

Capital and Reserves
Called up equity share capital                                      18,539           18,811            18,799
Capital redemption reserve                                             272                -                12
Share premium                                                      123,749          123,749           123,749
Capital reserves                                                   120,406          268,977           118,569
Revenue reserve                                                      3,248            2,855             3,426
Total equity shareholders' funds                                   266,214          414,392           264,555



Net asset value per ordinary share - pence                          358.99           550.72            351.82



The geographical distribution of investments at 31 March 2003 was: France -
39.0%; Switzerland - 12.3%; Netherlands - 10.6%; Germany - 8.1%; Italy - 7.1%;
Sweden - 6.5%; Spain - 5.9%; Denmark - 4.8%; Finland - 4.3%; United Kingdom -
1.4%.


Unaudited Statement of Total Return (incorporating the Revenue Account*)
for the 6 months to 31 March
                                                                   2003                                   2002

                                      Revenue      Capital       Total        Revenue      Capital     Total
                                       £'000s       £'000s       £'000s       £'000s       £'000s      £'000s
Gains on
Investments                                 -        5,892        5,892            -       55,039       55,039


Exchange gains/(losses)                    32        (852)        (820)          (5)         (84)         (89)

Income                                  1,355            -        1,355        1,384            -        1,384

Management fee                          (845)            -        (845)      (1,149)            -      (1,149)

Other expenses                          (419)         (12)        (431)        (458)         (13)        (471)

Net return before finance costs
and taxation                             123        5,028        5,151        (228)       54,942       54,714

Interest payable and similar
charges                                 (158)            -        (158)         (70)            -         (70)


Return on ordinary activities
before taxation                          (35)        5,028        4,993        (298)       54,942       54,644


Taxation on ordinary activities         (143)            -        (143)        (147)            -        (147)


Return attributable to equity
shareholders                            (178)        5,028        4,850        (445)       54,942       54,497

Dividend on ordinary shares                 -            -            -            -            -            -

Amount transferred
(from)/to reserves                      (178)        5,028        4,850        (445)       54,942       54,497

Return per ordinary share -
pence                                  (0.24)         6.72         6.48       (0.59)        73.02        72.43



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

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


Unaudited Summarised Cash Flow Statement for the 6 months to 31 March

                                                                         2003                 2002                 2001
                                                                       £'000s               £'000s               £'000s


Net cash outflow from operating activities                              (309)                (374)              (1,622)
Interest paid                                                           (161)                 (66)              (1,035)
Taxation paid                                                            (68)                 (61)                  167
Net cash inflow from purchases and sales of                                                                      25,126
investments
                                                                        3,269                1,636
Equity dividends paid                                                 (3,526)              (1,731)              (1,279)
Net cash outflow before use of liquid resources
and financing
                                                                        (795)                (596)               21,357
Increase in short-term deposits                                             -             (11,156)             (10,693)
Net cash inflow from financing                                            612                6,690              (8,598)
Decrease in cash during the period                                      (183)              (5,062)                2,066


Notes


The Interim financial statements have been prepared on the basis of the
accounting policies set out in the Company's financial statements at 30
September 2002.


The Board recommends that no interim dividend payment be made.


The Report and Accounts will be posted to shareholders in early June 2003.
Copies may be obtained 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

23 May 2003


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