Interim Results

Schroder UK Growth Fund PLC
10 December 2001


Press Release


                                                   10 December 2001

For Immediate Release - Monday 10 December 2001



                         SCHRODER UK GROWTH FUND plc

                          Unaudited Interim Results


The Directors of Schroder UK Growth Fund plc announce the unaudited interim
results for the six months ended 31 October 2001


Statement of Total Return (Unaudited)

                               Six months ended 31        Six months ended 31
                                  October 2001                October 2000
                            Revenue  Capital    Total   Revenue Capital   Total
                              £'000    £'000    £'000     £'000   £'000   £'000

Realised (losses)/gains on        -  (1,981)  (1,981)         -   4,575   4,575
investments

Net unrealised losses on          - (54,936) (54,936)         - (8,771) (8,771)
investments

Discount/ (Premia) paid on        -      129      129         -   (106)   (106)
purchase of warrants for
cancellation

Income                        3,658        -    3,658     3,464       -   3,464

Investment management fee     (195)    (455)    (650)      (93)   (413)   (506)

Administrative expenses       (158)        -    (158)     (129)       -   (129)

Net return /(deficit)         3,305 (57,243) (53,938)     3,242 (4,715) (1,473)
before finance costs and
taxation

Interest payable              (432)  (1,007)  (1,439)     (327)   (762) (1,089)

Net return /(deficit) on      2,873 (58,250) (55,377)     2,915 (5,477) (2,562)
ordinary activities before
taxation

Tax on ordinary activities        -        -        -         -       -       -

Return /(deficit) on          2,873 (58,250) (55,377)     2,915 (5,477) (2,562)
ordinary activities after
tax attributable to equity
shareholders

Dividends:

First interim dividend      (2,700)        -  (2,700)   (3,714)       - (3,714)
(1.50 pence per share
payable on 31 January 2002)

Transfer to/(from) reserves     173 (58,250) (58,077)     (799) (5,477) (6,276)

Return/(deficit) per          1.54p (31.28)p (29.74)p     1.43p (2.68)p (1.25)p
ordinary share

Return/(deficit) per          1.52p (30.82)p (29.30)p     1.37p (2.57)p (1.20)p
ordinary share

- fully diluted
Dividends for the period      1.50p        -    1.50p     1.90p       -   1.90p
per ordinary share


Summary Balance Sheet                      At 31 October 2001  At 30 April 2001
Assets                                                   £'000            £'000

Listed investments at market value                     256,371          321,878

Net current liabilities                               (37,407)         (33,539)

Net Assets                                             218,964          288,339

Net asset value per share                              120.66p          150.75p

Net asset value per share - fully diluted              118.15p          144.63p



Abridged Cash Flow Statement             For the six months   For the six months
                                          ended 31 October     ended 31 October
                                                2001                 2000

                                                    £'000                £'000

Net cash inflow from operating                      4,102                3,920
activities

Net cash outflow from returns on                  (1,438)                (441)
investments and servicing of finance

UK tax paid                                             -                 (54)

Net cash inflow/(outflow) from                      8,144             (41,648)
financial investment

Equity dividends paid                             (5,474)              (4,308)

Net cash (outflow)/inflow from                   (11,277)               36,450
financing

Net cash outflow                                  (5,943)              (6,081)
                                                  



This announcement is prepared on the basis of the accounting policies as set
out in the most recently published set of annual financial statements.

The Board of Directors approved this statement on 10 December 2001.

Statement by the Chairman, Mr Peter Sedgwick

Performance

During the six months to 31 October 2001, the Company's net asset value
produced a negative total return of -19.3% whilst the FTSE All-Share Index,
the Company's benchmark Index, posted a negative total return of -14.8%.

Background

The period under review was dominated by the impact on global markets and the
world economy of the terrorist atrocities in the US on 11 September. Up to
this point, lead indicators of the US economy had been showing tentative signs
of stabilising, thus encouraging hopes that lower interest rates were starting
to take effect. However, any hopes for an early recovery were set back after
the attacks. It quickly became apparent that the US Federal Reserve would act
aggressively to try to restore confidence through further substantial cuts in
interest rates. Higher government spending, tax cuts and a surprise fall in
the oil price also helped to reinforce the view that whilst the recession
would, in the short term, be deeper than previously envisaged, recovery in
2002 looked more assured. Consequently, October witnessed a strong rebound in
share prices of cyclical and recovery stocks.


Gearing Policy

The Company maintained a £50 million loan facility with The Royal Bank of
Scotland plc, which was fully drawn throughout the period. The Company
cancelled its £3 million overdraft facility, which had previously been repaid
in April 2001 and not utilised since that time.

At the time of writing the Company has gearing in position, representing
around 13% of net assets, in order to take advantage of any upturn in the
market.

Dividend Policy

I reported in my last statement that the Board believes that the ordinary
dividends of 3.0p per share paid in respect of the year to 30 April 2001 would
provide a firm base for a progressive dividend policy going forward. The Board
still believes this to be the sustainable base and has declared the payment of
a first interim dividend for the year ending 30 April 2002 of 1.5p per share.

Purchase of Shares and Warrants for Cancellation

During the period, the Board continued to operate an active share buy-back
policy and a total of 9,938,000 shares were purchased for cancellation, equal
to 5.2 per cent of the shares in issue on 1 May 2001. During the period, the
Board also continued to look for opportunities to purchase warrants for
cancellation and a total of 1,025,000 warrants were purchased.


The Company's diluted net asset value per share was enhanced as a result of
these purchases.


Prospects

The Company retains an investment bias towards growth sectors and stocks with
relative value characteristics, from which it has benefited since 31 October
2001. The Company believes that it is well positioned to benefit from any
recovery in the UK stock market and the global economy in 2002. Although
confidence will be rebuilt only gradually the attractive valuation level of
the market relative to bonds and the existence of ample liquidity support the
Investment Manager's view that the market should continue to rally from the
lows in September.


Peter Sedgwick

Chairman


FIRST INTERIM DIVIDEND


The Directors of the Company have declared the payment of a first interim
dividend of 1.50p per share for the year ending 30 April 2002. The dividend
will be payable on Thursday 31 January 2002 to shareholders on the register on
21 December 2001.


Ex-Dividend Date                     : 19 December 2001

Transfers must be lodged by          : Close of business on 21 December 2001

Dividend Warrants                    : Despatched on 30 January 2002

Payment Date                         : 31 January 2002

Dividend per share                   : 1.50p




The Interim Report will be mailed to shareholders at their registered
addresses in December 2001 and from the date of release copies of the Interim
Report will be available to the public at the Company's registered office: 31
Gresham Street, London, EC2V 7QA.


Enquiries:                               Schroder Investment Management Limited

John Spedding                                                   (0207 658 3206)

10 December 2001