Interim Results

Schroder UK Growth Fund PLC
10 December 2002


Press Release
                                                                10 December 2002

For Immediate Release

                          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 2002.

Statement of Total Return (Unaudited)

                                          Six months ended 31 October 2002              Six months ended 31 October 2001
                                          Revenue      Capital        Total          Revenue      Capital          Total
                                            £'000        £'000        £'000            £'000        £'000          £'000

Realised losses on investments                  -     (60,159)     (60,159)                -      (1,981)        (1,981)
Net unrealised losses on                        -        (100)        (100)                -     (54,936)       (54,936)
investments
Discount on purchase of warrants                -            -            -                -          129            129
for cancellation
Realised gain on expiry of                      -        7,748        7,748                -            -              -
warrants
Income                                      2,957            -        2,957            3,658            -          3,658
Investment management fee                   (121)        (282)        (403)            (195)        (455)          (650)
Administrative expenses                     (177)            -        (177)            (158)            -          (158)
Net return /(deficit) before                2,659     (52,793)     (50,134)            3,305     (57,243)       (53,938)
finance costs and taxation
Interest payable                            (197)        (460)        (657)            (432)      (1,007)        (1,439)
Net return /(deficit) on ordinary           2,462     (53,253)     (50,791)            2,873     (58,250)       (55,377)
activities before taxation
Tax on ordinary activities                      -            -            -                -            -              -
Return /(deficit) on ordinary               2,462     (53,253)     (50,791)            2,873     (58,250)       (55,377)
activities after tax attributable
to equity shareholders
Dividends:

First interim dividend (1.50 pence        (2,530)            -      (2,530)          (2,700)            -        (2,700)
per share payable on 31 January
2003)
Transfer (from)/to reserves                  (68)     (53,253)     (53,321)              173     (58,250)       (58,077)
Return/(deficit) per ordinary               1.45p     (31.34)p     (29.89)p            1.54p     (31.28)p       (29.74)p
share
Return/(deficit) per ordinary               1.45p     (31.34)p     (29.89)p            1.52p     (30.82)p       (29.30)p
share

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


Summary Balance Sheet                                               At 31 October 2002              At 30 April 2002
Assets                                                                            £'000                          £'000

Listed investments at market value                                              156,102                        236,778

Net current liabilities                                                        (13,239)                       (26,773)

Net Assets                                                                      142,863                        210,005

Net asset value per share                                                        84.70p                        119.73p

Net asset value per share - fully diluted                                           N/A                        117.41p


Abridged Cash Flow Statement                                For the six months ended 31   For the six months ended 31
                                                                          October 2002                  October 2001
                                                                                   £'000                         £'000

Net cash inflow from operating activities                                          3,601                         4,102
Net cash outflow from returns on investments and servicing                         (657)                       (1,438)
of finance
UK tax recovered                                                                     187                             -
Net cash inflow from financial investment                                         26,951                         8,144
Equity dividends paid                                                            (3,439)                       (5,474)
Net cash outflow from financing                                                 (17,601)                      (11,277)
Net cash inflow/(outflow)                                                          9,042                       (5,943)

                                                                                   



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 9 December 2002.

Statement by the Chairman, Mr Alan clifton

Performance and Background

This is my first opportunity to report to shareholders as Chairman and I regret
that, for the moment, I do not have more encouraging news to deliver. During the
six-month period to 31 October 2002, the Company's net asset value produced a
negative total return of 27.8%, whilst the FTSE All-Share Index, the Company's
benchmark Index, posted a negative total return of 21.7% over the same period.

The Company's performance when measured against its benchmark Index was largely
the consequence of the use of gearing in a falling market and the continued
focus on growth sectors, which under-performed relative to defensive sectors.
The Company's £30 million borrowing facility was fully drawn down at the
beginning of the period but borrowings were reduced to £20 million in October
2002. This level of borrowing has been maintained since that time.

During the period under review the FTSE All-Share has declined to levels not
seen since 1996, with sentiment affected by subdued global demand, severe
external shocks and extreme levels of volatility. While the UK economy has
remained fairly robust in comparison to many others, it has been exposed to many
of the same difficulties. Mixed messages on the strength and pace of the global
recovery, increased uncertainty in the Middle East and a lack of capital
investment by many companies have continued to subdue equity returns.

Investment Management Company Changes

Following the resignation of Mr Chris Rodgers from Schroders in October 2002 and
after subsequent discussions with the Board, Mr Richard Buxton took
responsibility within Schroder Investment Management Limited for the investment
management of the Company's equity portfolio. Mr Buxton joined Schroders in 2001
and is Head of their Specialist UK Equity team. Previously, he was a UK Equity
manager at Baring Asset Management where he managed the Baring UK Growth Trust
Unit Trust.

The Company remains focussed on investing in UK equities for long-term capital
growth, blending growth and value characteristics in the portfolio.

Dividend

The Board has declared the payment of a first interim dividend for the year
ending 30 April 2003 of 1.5 pence per share. This first interim dividend will be
payable on 31 January 2003.

Purchase of Shares for Cancellation

During the six-month period ended 31 October 2002, the Board continued to
operate an active share buy-back policy and a total of 6,737,846 ordinary shares
were purchased for cancellation, equal to 3.84% of the total shares in issue on
1 May 2002. The Directors will continue to consider purchases of shares for
cancellation when suitable opportunities to enhance shareholder value arise.

Warrants

The final opportunity to exercise warrants passed on 2 September 2002. A total
of 154 warrants were exercised. Warrants previously in issue have now lapsed and
have no value.

Outlook

Uncertainty surrounding the pace and strength of global economic growth, as well
as the US/Iraq situation, is weighing heavily on world equity markets. However,
notwithstanding these uncertainties, the Board believes there is reason to be
positive about UK equities. On traditional valuation methods, the UK equity
market offers good value. Many companies with sound balance sheets and
reasonable earnings prospects are trading at attractive price/earnings ratios.
Furthermore, the falls in share prices this year mean that many companies are
now offering an attractive and sustainable dividend yield in excess of bank base
rates.

Alan Clifton

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 2003. The dividend will
be payable on Friday 31 January 2003 to shareholders on the register on 20
December 2002.

Ex-Dividend Date               : 18 December 2002

Transfers must be lodged by    : Close of business on 20 December 2002

Dividend Warrants              : Despatched on 30 January 2003

Payment Date                   : 31 January 2003


Dividend per share             : 1.50p



The Interim Report will be mailed to shareholders at their registered addresses
in December 2002 and from that date 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 2002



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