Interim Results - 11 Months to 30 September 1999

Guinness Flight Geared Inc&Gwth Tst
16 December 1999


PRELIMINARY ANNOUNCEMENT OF RESULTS FOR ELEVEN MONTHS TO 30 SEPTEMBER 1999


Chairman's Statement

This second interim report for the Company represents my first opportunity to
write to shareholders following its merger with The City of Oxford Investment
Trust.  The merger and successful fund raising which accompanied it has
brought in a number of new shareholders to the Company.  I am delighted to
welcome them.

In this report we are covering the Company's accounting period since flotation
to 30 September 1999.  Post tax revenues were £2.29m which has allowed a
transfer to reserves of £166,618 after dividend payments to ordinary and
income shareholders.  The dividends paid are in line with the assumptions of
the initial prospectus, being 10p per geared ordinary share and 7.17p per
income share.

Since the Company's structure includes a level of debt there are a number of
ways to view the asset performance.  We believe under normal circumstances it
is most correct to look at the return on total assets including debt, and in
future we will report returns in this way.  However because of the
reorganisation taking place over the balance sheet date of 30 September strict
comparison on this basis during this specific period would be misleading.

If we then turn to the net asset performance of the geared ordinary shares,
this showed a rise of 29.51% to 98.61p from an initial asset value of 76.14p,
after launch expenses.  This represents a good start in a period more
memorable for its volatility than for its economic or corporate news.  For
much of the time higher yielding companies, the core portion of the equity
portfolio, have had to face a competitive trading environment together with
weak support from institutional investors.  The offsetting benefit has been
that at crucial investment periods we have been able to acquire stocks
cheaply.  Hence the Company was fully invested when value orientated stocks
rebounded strongly in the first half of 1999.  The subsequent setback, while
disappointing in itself, has again allowed the new funds raised on the merger
to be invested at good prices.

The split capital portfolio which makes up 30% of the Company's total assets
is now largely in place.  This has been achieved in the main by building
holdings in some of the many undervalued instruments that predominate in the
sector.  We have also participated in some of the more attractive new issues
that have led the split capital sector to expand so rapidly in the last year.

The combined portfolio is now 95% invested.  Its current positioning is skewed
away from the more speculative areas of the market where ratings have reached
very demanding levels, in favour of certain consumer and manufacturing
sectors.  Here lack of buying interest from many institutional investors has
resulted in company valuations being well below their underlying worth. 
Continued steady economic growth next year, with possibly less pressure on
interest rates, should enable these companies to return to favour.


 
Fred Carr                                                  
16 December 1999

                                                       
STATEMENT OF TOTAL RETURN (incorporating the Revenue Account)
for the period 29 October 1998 to 30 September 1999
(Unaudited)

                                       Period Ended
                                      30 September 1999

                            Revenue        Capital        Total
                              £               £             £
Gains on 
investments                        -      2,448,077      2,448,077
   
Income                     3,260,824              -      3,260,824

Investment management
fee                         (123,557)      (288,299)      (411,856)


Other expenses               (90,955)             -        (90,955)
                            --------      ---------       ---------

Net return before
finance costs and
taxation                   3,046,312       2,159,778      5,206,090

Interest payable            (331,820)       (774,246)    (1,106,066)
                           ---------       ---------      --------- 

Return on
ordinary activities
before taxation            2,714,492       1,385,532      4,100,024

Tax on ordinary
activities                  (425,580)         94,986       (330,594)          
      
                            --------       ---------      ---------

Return on ordinary
activities after
taxation                   2,288,912       1,480,518      3,769,430

Dividends and other 
appropriations 
in respect of non-equity
shares                    (1,636,426)     (1,151,999)    (2,788,425) 
                            --------         -------      ---------

Return attributable to 
Geared Ordinary 
shareholders                 652,486         328,519        981,005

Interim dividends paid 
to Geared Ordinary 
shareholders                (605,000)              -       (605,000)
 
                             --------       ---------      ---------          
Transfer to
Reserves                      47,486         328,519        376,005
                             ========       =========      =========

Return per Geared
Ordinary share                  10.78p         5.43p         16.21p

Return per   
Income share                     7.73p            -           7.73p
                         
Interim dividends paid
per Geared Ordinary
share                                                        10.00p

Interim dividends paid
per Income share                                          7.165257p  




CONSOLIDATED BALANCE SHEET
(UNAUDITED)
AS AT 30 SEPTEMBER 1999         

                                                              Proforma
                                                              Balance Sheet
                                                              at 8.10.99

Listed Investments                          100,599,422       119,554,862     
 
                           
Current Assets:
Debtors                        40,387,486 
Cash at bank                    2,009,762
                               ----------
                               42,397,248                 
                            

Creditors: amounts
falling due within
one year                       19,072,334
                               ----------        
                           

Net Current Assets                            23,324,914       34,415,643
                                             -----------      -----------
                                             123,924,336      153,970,505

Creditors: amounts falling
due after more than one
year - Bank Loan                             (18,150,000)     (47,550,000)
                                             -----------      -----------
Net assets                                   105,774,336      106,420,505
                                             -----------      ----------- 
                    
                                     
CAPITAL AND RESERVES

Called up share
capital                                        5,152,182        5,152,182     

Share premium                                 98,975,018       98,975,018  

Redemption reserve                             1,151,999        1,191,155

 Capital reserve
    -realised                                   (428,767)        (234,700) 
 Capital reserve
    -unrealised                                  757,286        1,170,232

Revenue reserve                                  166,618          166,618
                                             -----------      -----------     
Total shareholders'                          105,774,336      106,420,505     
Funds                                        ===========      ===========     
                       
Net asset value per
Income Share (excluding
income)                                          100.00p        100.00p

Net asset value per
Zero Dividend 
Preference Share                                 107.62p        107.81p

Net asset value per
Geared Ordinary Share  
(excluding income)                                98.61p        102.11p