Interim Results

Schroder UK Growth Fund PLC
15 December 2005




Press Release                                          15 December 2005

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 2005.



Statement of Total Return (Unaudited)


                                        Six months ended 31 October 2005            Six months ended 31 October 2004
                                           Revenue      Capital        Total          Revenue       Capital        Total
                                                                                                 (Restated)   (Restated)
                                             £'000        £'000        £'000            £'000         £'000        £'000

Gains on investments                             -       18,209       18,209                -           765          765
Income                                       2,705            -        2,705            2,529             -        2,529
Investment management fee                    (143)        (333)        (476)            (123)         (286)        (409)
Administrative expenses                      (159)            -        (159)            (160)             -        (160)

Net return  before finance costs and         2,403       17,876       20,279            2,246           479        2,725
taxation
Interest payable                             (190)        (443)        (633)            (166)         (387)        (553)

Net return  on ordinary activities           2,213       17,433       19,646            2,080            92        2,172
before taxation
Tax on ordinary activities                       -            -            -                -             -            -
Return  on ordinary activities after         2,213       17,433       19,646            2,080            92        2,172
tax attributable to equity
shareholders
Return per ordinary share                                             11.93p                                       1.31p
Dividends for the period per                 1.50p            -       1.50p*            1.50p             -        1.50p
ordinary share

*The dividend is payable on 31
January 2006 to shareholders
registered on 30 December 2005.

Summary Balance Sheet                                          At 31 October 2005            At 30 April 2005
                                                                                                  (Restated)
Assets                                                                      £'000                       £'000

Listed investments at market value                                        218,007                     201,173

Loans                                                                    (25,000)                    (25,000)

Other net current assets                                                    3,217                       3,122

Net Assets                                                                196,224                     179,295

Net asset value per share                                                 119.18p                     108.90p




Abridged Cash Flow Statement                             For the six months ended    For the six months ended
                                                                  31 October 2005             31 October 2004
                                                                            £'000                       £'000


Net cash inflow from operating activities                                   3,964                       3,615


Net cash outflow from returns on investments and                            (643)                       (548)
servicing of  finance


Net cash inflow from financial investment                                   2,239                         347


Equity dividends paid                                                     (2,717)                     (2,512)


Net cash inflow from financing                                                  -                       2,725

Net cash inflow                                                             2,843                       3,627



Reconciliation of Movements in Shareholders' Funds


                 Share       Capital        Share        Share        Warrant      Capital     Revenue
                 capital     redemption     premium      purchase     exercise     reserve     reserve
                             reserve        account      reserve      reserve
                 £'000       £'000          £'000        £'000        £'000        £'000       £'000

Balance at 30    41,161      16,108         944          95,727       417          21,006      1,407
April  2005 (as
previously
reported)

Add back accrued -           -              -            -            -            -           2,717
dividend at 30
April 2005

Less investment  -           -              -            -            -            (192)       -
valuation
changes

Balance at 30    41,161      16,108         944          95,727       417          20,814      4,124
April 2005
(restated)

Dividends paid   -           -              -            -            -            -           (2,717)
in respect of
the year ended
30 April 2005

Gains on         -           -              -            -            -            18,209      -
investments

Other recognised -           -              -            -            -            (776)       2,213
gains/(losses)

Balance at 31    41,161      16,108         944          95,727       417          38,247      3,620
October 2005




1.Accounting policies

This announcement is prepared on the same basis of accounting policies as set
out in the most recently published set of annual financial statements with the
following exceptions, which have arisen from the adoption of new accounting
standards which apply for the year to 30 April 2006.



a) FRS21 (events after the Balance Sheet Date) - Dividends paid by the
Company are accounted for in the period in which the Company is liable to pay
them. Previously, the Company accrued dividends in the period in which the net
revenue, to which those dividends related, was accounted for.



b) Under FRS22 investment trusts can now only disclose one earnings per
share (EPS) figure. This is based on the total column of the Statement of Total
Return, with details of separate capital and revenue returns per share being
relegated to the notes to the accounts.



c) FRS26 (Financial instruments: Measurement) - The Company has
designated its assets and liabilities as being measured at 'fair value through
profit or loss'. The fair value of listed investments is deemed to be the bid
value of those investments at the close of business on the relevant date. .



The accounts for the period ended 31 October 2004 and for the year ended 30
April 2005 have been restated to reflect these changes.



The capital return for the year to 30 April 2005 was reduced by £192,000 (0.12
pence per share) reflecting the change in accounting policy on the valuation of
the investments. The capital return for six months to 31 October 2004 was
unaffected.



As a result of the implementation of FRS21 the interim dividend for October 2004
of £2,475,000 is not accrued in the interim results for the six months to 31
October 2004. Similarly the proposed second interim dividend of £2,717,000 for
the year ended 30 April 2005 is not accounted for in the re-stated results for
the year ended 30 April 2005.



The combined effect of these changes in accounting policies is an increase of
1.50p in the NAV as at 31 October 2004 and 1.54p as at 30 April 2005.



2.Return per Ordinary share


                                          Six months ended 31   Six months ended 31   Year ended 30 April
                                          October 2005          October 2004          2005
                                                                (Restated)            (Restated)

Revenue return       -pence               1.34p                 1.25p                 3.20p

Capital return       -pence               10.59p                0.06p                 4.01p

Total return         -pence               11.93p                1.31p                 7.21p



The Board of Directors approved this statement on 14 December 2005.



Statement by the Chairman, Mr Alan clifton



Performance



For the six-month period ended 31 October 2005, the Company's net asset value
produced a total return of 11.6%, whilst the share price produced a total return
of 12.2% (source: Fundamental Data). The total return on the FTSE All-Share
Index was 12.9% over the same period.



The Investment Manager's Review, which follows, describes the market background
and performance of the Company during this period together with the investment
outlook.



Dividends



The Board has declared a first interim dividend of 1.50p per share for the year
ending 30 April 2006. This interim dividend will be payable on 31 January 2006.



Accounting Standards



UK accounting standards have changed in anticipation of many UK companies moving
to International Financial Reporting Standards. There are two main financial
impacts in our interim accounts, detailed in the notes. The first is to change
the basis of valuing the listed portfolio from using mid-market prices to bid
prices. This has had a minimal impact on our NAV, reducing assets by £0.19
million at 30 April 2005 and by £nil in these accounts at 31 October 2005. The
second is to recognise the dividend payable only after it has been declared and
paid. The interim dividend cost of £2.47 million, payable in January 2006, is
therefore not deducted from net assets until after 31 October 2005.



Finally, the adoption of FRS22 has brought about a presentational change with
earnings per share only being shown at the 'total' level in the statement of
total return.



Purchase of Shares for Cancellation



During the period ended 31 October 2005, the Board continued to operate its
share buy-back facility, following the renewal of authority at the Annual
General Meeting. No shares were purchased for cancellation during that period
but the Directors will continue to consider purchasing shares for cancellation
in circumstances where such purchases would enhance net asset value.



Alan Clifton
Chairman
14 December 2005



Investment Manager's Review



Background



The UK equity market performed strongly during the period supported by a
resilient profits picture, favourable valuations and an interest rate cut.
Despite the shock to the market surrounding the 7th July attacks in London the
FTSE All-Share Index continued to rally reaching a four year high at the end of
September. Strong performance by resource stocks were a key contributor, in
particular mining shares, which have risen sharply as underlying commodity
prices and earnings forecasts have increased.  However, the market fell during
October as fears of higher inflation and slowing economic growth impacted
markets. The latest UK inflation figures showed an increase in the headline
consumer price inflation to 2.5% p.a, well above the government's target of 2%.
This has led investors to begin to question what impact this is likely to have
on the UK equity market particularly if higher inflation results in a tightening
of monetary policy. The market also suffered as profit taking in the year to
date winners took hold, with the Mining and Oil & Gas sectors amongst the main
losers. Merger and acquisition activity seen in the first half of the year
continued, with greater participation by corporate as well as private equity
buyers and looks set to continue into next year.



The performance of the Company lagged the benchmark index during the period with
short term sentiment weighing on some of the companies owned. We expect these
stocks to benefit in the longer term as the market looks beyond their near term
earnings and recognises their growth prospects. Our underweight position in
mining stocks also detracted from performance as this sector has dominated the
benchmark return. This has been offset by positive contributions from several of
our preferred stocks.



In particular the Company has benefited from the merger and acquisition activity
that has been a key driver of markets this year.



Outlook



The combination of bid activity - in part funded by low interest rates - and
strong corporate cashflows being reflected in rising dividends and share
buybacks provides good support to the market.  The scale of potential cash
returns from the oil majors alone underpins equities to a considerable extent.
Valuations are reasonable in relation to the likely profits growth anticipated
next year and appear good in relation to other asset classes.  That said, the
market has risen fairly consistently without a major setback through most of the
year and it would be surprising if there were not some pause for breath and
reduction in risk appetite at some point in the coming months.  Much uncertainty
surrounds the timing of the end of the US Federal Reserves' interest rate
tightening cycle and the prospects for US growth next year. In the UK, the
outlook for interest rates is more uncertain than at any time in recent years,
so whilst the market outlook remains positive longer term it would not be
surprising to see an increase in volatility into next year.



Schroder Investment Management Limited
14 December 2005



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 2006. The dividend will
be payable on Monday 31 January 2006 to shareholders on the register on 30
December 2005.



Ex-Dividend Date                : 28 December 2005

Transfers must be lodged by     : Close of business on 30 December 2005

Dividend Warrants               : Despatched on 30 January 2006

Payment Date                    : 31 January 2006

Dividend per share              : 1.50p


The Interim Report will be mailed to shareholders at their registered addresses
in January 2006 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)
15 December 2005




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