Interim Results - 6 Months to 31 October 1999

Schroder UK Growth Fund PLC
13 December 1999


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 1999.


                   Six months ended 31 Oct 1999   Six months ended 31 Oct 1998
                      Revenue  Capital   Total       Revenue   Capital   Total
                        £'000  £'000     £'000         £'000   £'000     £'000
                                   
Realised gains 
on investments             -   19,654   19,654          -     26,190     26,190

Net unrealised losses 
on investments             -  (44,260) (44,260)         -   (113,565) (113,565)

Premia paid on purchase
of warrants for
cancellation               -     (180)    (180)         -       (757)     (757)

Income                 5,592        -    5,592        6,855       -      6,855

Investment management 
fee                     (555)    (555)  (1,110)        (645)    (645)   (1,290)

Administrative 
expenses                (118)       -     (118)        (134)      -       (134)

Net return /(deficit) 
before finance costs 
and taxation           4,919  (25,311) (20,392)       6,076  (88,777)  (82,701)

Interest payable           -        -        -        (446)     (446)     (892)

Net return /(deficit) 
on ordinary activities 
before taxation        4,919  (25,311) (20,392)       5,630  (89,223)  (83,593)

Tax on ordinary 
activities              (532)       -     (532)        (867)      -       (867)

Return /(deficit) on 
ordinary activities 
after tax 
attributable to equity 
shareholders           4,387  (25,311) (20,924)       4,763  (89,223)  (84,460)

Dividends:

First interim dividend  
of 1.90 pence per share 
payable 
31 January 2000 
(1998:1.80 pence 
per share)            (4,213)       -   (4,213)      (4,100)      -    (4,100)

Transfer to/(from)
 reserves                174  (25,311) (25,137)         663  (89,223) (88,560)

Return/(deficit) 
per ordinary share     1.96p  (11.28)p  (9.32)p        2.10p (39.28p) (37.18p)

Dividends for the 
period per 
ordinary share         1.90p        -     1.90p        1.80p      -     1.80p
 

Summary Balance Sheet 
                                   At 31 October 1999     At 30 April 1999
Assets                                          £'000                £'000
          
Listed investments at market value            370,994              395,564
          
Net Current assets                                606                7,161
          
Net Assets                                    371,600              402,725
          
Net asset value per ordinary 
share (undiluted)                              167.6p               178.6p
          
Net asset value per share
 (diluted - assuming full
 conversion of the warrants)                   159.7p               169.1p



Abridged Cash Flow Statement     For the six months      For the six months 
                                 ended 31 October 1999   ended 31 October 1998

                                              £'000                    £'000
Net cash inflow from 
operating activities                          6,424                    8,140

Net cash outflow from returns 
on investments and servicing 
of  finance                                       -                   (1,763)

UK tax paid                                    (782)                  (1,265)

Net cash inflow from financial 
investment                                   10,814                   42,646

Equity dividends paid                        (4,736)                  (4,424)

Net cash outflow from financing              (8,751)                 (46,309)

Net cash inflow/(outflow)                     2,969                   (2,975)


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

This statement was approved by the Board of Directors on 13 December 1999.


STATEMENT BY THE CHAIRMAN, MR PETER SEDGWICK

Performance

During the six months to 31 October 1999, the overall performance was
disappointing. The total return on the Company's portfolio, based on the diluted
net asset value was -4.9% while the comparable performance of the Company's
benchmark index, the FTSE All-Share, was -3.0%. The longer term record is shown
in the following table.

                                       Total Return to 31 October 1999
                                       6 Months     1 Year     5 Years
                                          %             %          %
FTSE All-Share Index                     -3.0          +18.7     +117.1
Schroder UK Growth Fund plc              -4.9          +18.4     +115.7
Diluted Net Asset Value             

Source: Association of Investment Trust Companies

Background

In the early part of the period, the market was assisted by improving prospects
for the UK economy, helping corporate profit and dividend growth.  A background
of low UK interest rates and subdued inflation also helped the equity market. 
In September and October, however, the UK's Monetary Policy Committee raised UK
interest rates due to concerns that the pace of growth in the UK economy, and in
particular the increase in house prices, could lead to a build-up in
inflationary pressures.  This action caused the UK equity market to fall back in
the short term as investors became concerned that interest rates might have to
rise more than previously anticipated.

Assets

A better performance trend in the portfolio during the early part of the period
was more than reversed in September and October following the rise in UK
interest rates, as share prices in economically sensitive companies performed
poorly relative to defensive growth companies. 

The Company's portfolio continues to hold overweight positions in cyclical
companies due to a prospect of better economic growth in the UK economy but the
portfolio's exposure towards new sectors, including the Information Technology
sector, has been increased.

Dividends

Earnings for the period ended 31 October 1999 were 1.96p per share. Your Board
has declared a first interim divided of 1.90p per share, which compares with the
first interim dividend paid in respect of the year ended 30 April 1999 of 1.80p
per share.


Appointment of a New Director

I am pleased to announce the appointment of Ian M. Trotter to the Board, who,
aged 61, is a former executive director of Sun Alliance Group plc and managing
director of Sun Alliance Investment Management Limited. He is a director of
Lowland Investment Company Limited plc and M&G High Income Investment Trust plc.


Investment Management Fees

As part of the Board's continued commitment to shareholder value, the Board
undertakes each year a review of fees charged by the investment managers.
Following the latest review, the investment managers have agreed to a further
reduction in their fees. With effect from 1 May 1999, the investment management
fees were reduced from 0.60% on assets up to £250 million, and 0.50% on any
assets above this amount, to 0.50% on all assets. At the same time, the managers
also became entitled to receive a performance fee, capped at £500,000, provided
that the total return generated by the Company's net asset value out-performs
the benchmark index by at least 0.50% per annum. The performance fee will be
calculated annually but averaged and accumulated over a rolling three-year
period. 

Investment Manager

Chris Rodgers, who joined Schroders in 1982, has assumed responsibility for the
management of the Company's investment portfolio. He is a Director of Schroder
Investment Management Limited, where he is Chairman of the UK Strategy Team. 

Purchases of Own Shares for Cancellation

During the period, the Board has initiated a buy-back programme of the Company's
stock, to help address the discount of the Company's share price. Your Board
will continue to look for opportunities to purchase shares in the market for
cancellation after the close period has ended.

Prospects

The UK economy is expected to grow more strongly during 2000.  However
inflationary pressures are expected to remain relatively subdued, and therefore
interest rates should not need to rise much beyond current levels.  Although the
UK equity market has recently established a new high, there is considerable
divergence between sectors, giving opportunities for selective investment. 


Peter Sedgwick
Chairman



FIRST INTERIM  DIVIDEND

The Directors of the Company have declared the payment of a first interim
dividend of 1.90p per share for the year ending 30 April 2000.  The dividend
will be payable on Monday 31 January 2000 to shareholders on the register on 24
December 1999. 

Ex-Dividend Date               : 20 December 1999

Transfers must be lodged by    : 2.30 p.m. on 24 December 1999

Dividend Warrants              : Despatched on 28 January 1999 

Payment Date                   : 31 January 2000     

Dividend per share             : 1.90p


The Interim Report will be mailed to shareholders at their registered addresses
in January 2000 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     (0171 658 3206)
13 December 1999