Interim Results

Foreign & Colonial Eurotrust PLC
01 June 2004


Date:              1 June 2004



Contact:           Stephen White                       Lisa Stanley
                   F&C Management Limited              Lansons Communications
                   020 7628 8000                       020 7294 3692



                        FOREIGN & COLONIAL EUROTRUST PLC
                     Unaudited Interim Statement of Results
                     for the half-year ended 31 March 2004



HIGHLIGHTS



•    Between the year end at 30 September 2003 and 31 March 2004, the net assets
     per share rose from 433.7p to 474.7p, an increase of 9.5%.  This compares
     with a similar gain of 9.5% over the same period in the FTSE All-World 
     Europe Index.



•    Over the six months, the European equity markets recovered further from the 
     lows to which they had fallen in the run-up to the Iraq war.





SUMMARY OF RESULTS


                                            31 March 2004       30 September 2003               % change


Net assets                                       £335.46m                £319.83m                   +4.9

Net asset value per share                         474.71p                 433.71p                   +9.5

Ordinary shares in issue                       70,665,614              73,743,568                   -4.2

Share price                                       400.00p                 349.50p                  +14.4




                                             6 months to             6 months to
                                           31 March 2004           31 March 2003


Revenue loss per share                           (0.78)p                 (0.24)p



Chairman's Statement

Dear Shareholder

Between the year end at 30 September 2003 and 31 March 2004, the net assets per
share rose from 433.7p to 474.7p, an increase of 9.5%. This compares with a
similar gain of 9.5% over the same period in the FTSE All-World Europe Index,
which excludes the United Kingdom and is adjusted for the movement in sterling
against the European currencies.


Review of Markets

Over the six months, the European equity markets recovered further from the lows
to which they had fallen in the run-up to the Iraq war.  Investors were
encouraged by signs of growing business and consumer confidence.  At the same
time, interest rates remained at very low levels as the central banks on both
sides of the Atlantic made it clear that they were in no hurry to tighten
monetary policy.  Company results were largely as expected.  While the strength
of the euro weighed heavily, investors seemed happy to look through the currency
influence and to focus more on improving business trends and the upbeat
accompanying outlook statements.  As confidence in the equity markets grew, not
only did volumes on the exchanges recover, but there was a revival in merger and
acquisition activity, the largest being Sanofi's €49bn unexpected and hostile
bid for its French pharmaceutical rival, Aventis.  Towards the end of the
period, the markets saw some profit taking as a clutch of disappointing economic
data and news of the atrocious bombings in Madrid led some to question the
sustainability of the recovery.  Over the six month period, the better
performing sectors included technology, many industrials and the financials as
investors looked to the improving business and financial conditions, while the
poorer performers included many of the more defensive issues, such as the foods,
consumer goods and oils.



Portfolio Strategy

We made only a few changes to the portfolio over the period, seeing no reason to
alter our investment stance and its focus on companies likely to benefit from
improving economic and financial conditions.  We increased further our
weightings in telecoms and technology, encouraged by the healthy mobile
subscriber numbers, the improving financial situation of the operators and the
acceleration in the roll-out of the third generation mobile networks.  We also
added to the insurers on signs of an improvement in the underwriting cycle and
as their asset base strengthened with the recovery in the financial markets.  We
financed these moves through again reducing our exposure to some of the more
defensive sectors, such as the foods, utilities and pharmaceuticals, where we
felt the earnings outlook was dull by comparison and where valuations were
stretched.  We also cut our weighting in the oil sector despite a rise in the
oil price as we felt the sector looked fully valued.  The gearing of the Company
rose a little further over the period as we financed further buying-in of shares
on attractive discounts through increased borrowings.  The current level of
effective gearing is around 6%.  It is the policy of the Board that the level of
effective gearing should not exceed 20%.



Unaudited Figures

The revenue account for the period, as is usually the case at the interim stage,
shows a loss owing to the fact that most European companies declare 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 for the full year.
The loss this period is greater than at the interim stage last year owing to
lower dividend income with the appreciation of sterling against the euro and a
higher management fee with the rise in the value of the portfolio compared to a
year ago.


Douglas McDougall

May 2004



Unaudited Balance Sheet
                                                             31 March 2004   31 March 2003  30 September 2003
                                                                    £'000s          £'000s            £'000s

Fixed assets
Investments                                                        354,455          277,237           330,054


Current assets
Debtors                                                                557              996             1,360
Taxation recoverable                                                   379              494               568
Short-term deposits                                                      -                -             7,010
Cash at bank                                                           899              212               677
                                                                     1,835            1,702             9,615

Current liabilities
Creditors: amounts falling due within one year
Foreign currency loans                                            (19,725)         (11,736)          (12,617)
Other                                                              (1,107)            (989)           (7,221)
                                                                  (20,832)         (12,725)          (19,838)



Net current liabilities                                           (18,997)         (11,023)          (10,223)

Net assets                                                         335,458          266,214           319,831

Capital and Reserves
Called up equity share capital                                      17,666           18,539            18,436
Capital redemption reserve                                           1,145              272               375
Share premium                                                      123,749          123,749           123,749
Capital reserves                                                   189,959          120,406           173,766
Revenue reserve                                                      2,939            3,248             3,505
Total equity shareholders' funds                                   335,458          266,214           319,831



Net asset value per ordinary share - pence                          474.71           358.99            433.71






The geographical distribution of investments at 31 March 2004 was:

France - 33.8%; Switzerland - 19.2%; Germany - 15.3%; Netherlands - 12.6%; Finland - 5.5%;

Italy - 4.5%; Spain - 4.2%; Sweden - 3.6%; United Kingdom - 1.0%; Denmark - 0.3%.





Unaudited Statement of Total Return (incorporating the Revenue Account*)
for the 6 months to 31 March
                                                                   2004                                  2003
                                      Revenue      Capital        Total      Revenue      Capital       Total
                                       £'000s       £'000s       £'000s       £'000s      £'000s       £'000s

Gains on investments                        -       28,195       28,195            -       5,892        5,892


Exchange (losses)/gains                  (36)          513          477           32       (852)        (820)


Income                                  1,201            -        1,201        1,355           -        1,355


Management fee                        (1,067)            -      (1,067)        (845)           -        (845)


Other expenses                          (389)         (13)        (402)        (419)        (12)        (431)


Net return before finance costs
and taxation                            (291)       28,695       28,404          123       5,028        5,151



Interest payable and similar
charges                                 (194)            -        (194)        (158)           -        (158)


Return on ordinary activities
before taxation                         (485)       28,695       28,210         (35)       5,028        4,993


Taxation on ordinary activities          (81)            -         (81)        (143)           -        (143)


Return attributable to equity
shareholders                            (566)       28,695       28,129        (178)       5,028        4,850




Dividend on ordinary shares                 -            -            -            -           -            -


Amount transferred
(from)/to reserves                      (566)       28,695       28,129        (178)       5,028        4,850


Return per ordinary share - pence      (0.78)        39.69        38.91       (0.24)        6.72         6.48





*   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


                                                               2004               2003               2002        2001
                                                             £'000s             £'000s             £'000s      £'000s


Net cash outflow from operating activities                     (594)              (309)              (374)     (1,622)
Interest paid                                                  (185)              (161)               (66)     (1,035)
Taxation paid                                                  (528)               (68)               (61)         167
Net cash inflow from financial investment                      3,921              3,269
Equity dividends paid                                        (4,721)            (3,526)            (1,731)     (1,279)
Net cash outflow before use of liquid
resources and financing
                                                             (2,107)              (795)              (596)      21,357
Decrease in short-term deposits                                6,944                  -           (11,156)    (10,693)
Net cash (outflow)/inflow from financing                     (4,540)                612              6,690     (8,598)
Increase/(decrease) in cash during the                           297              (183)            (5,062)       2,066
period



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 2003.


The Board recommends that no interim dividend payment be made.


The Interim Report and Accounts will be posted to shareholders in mid June 2004.
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

28 May 2004


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