Interim Results - NAV Rises 3.8%

Capital Gearing Trust PLC
19 November 1999


CHAIRMAN'S INTERIM STATEMENT

The figures for the half year to 5 October 1999 show an increase in NAV per
share of 3.8% to 945p (951p including income) compared to a rise of 8.1% in
the FT Investment Trust index and a fall of 2.0% in the FTSE All Share Index.
Higher short-term interest rates together with an increased supply of split
capital investment trust paper have deferred rather than altered the growth
anticipated from this important section of the portfolio. Earnings are ahead of
budget due to timing differences. An expected dividend of 6.5p for the year
ending 5 April 2000 should be covered by earnings.

I am pleased to report that decisions have now been taken on future
administrative arrangements and these are expected to be in place for the
year-end.

Mark Cornwall-Jones
17 November 1999


DISTRIBUTION OF INVESTED FUNDS

Percentage of underlying assets

                                                                 As at   As at
                                                               5/10/99  5/4/99
                          North                Other Elsewhere
                     UK  America Europe  Japan Asia  Overseas   Total   Total
                      %     %       %      %     %      %         %       %     
          
Investment Trust
 Ordinary Shares     10.0    1.3   2.6    0.3   1.9    12.0    28.1      25.9

Investment Trust
 Capital Shares       7.1      -     -      -     -       -     7.1       8.6

Investment Trust 
 Stepped and Zero 
 Dividend Preference
 Shares              41.8      -   10.5     -     -       -    52.3      51.1
Fixed interest
 stocks                 -    4.4    5.5     -     -      2.6   12.5      14.4

                     58.9    5.7   18.6   0.3   1.9     14.6  100.0     100.0


MAJOR INVESTMENTS OF THE COMPANY AT 5 OCTOBER 1999

INVESTMENT TRUST PREFERENCE SHARES                                        £
                                                                          
Fleming Income and Growth Trust - Stepped                         1,509,750
Fleming Income and Capital Investment Trust - Zero Dividend       1,241,000
M&G Income Investment Trust - Zero Dividend                       1,071,000
Johnson Fry Utilities Investment Trust - Zero Dividend            1,039,123
Jos Holdings - Zero Dividend                                        974,938
Gartmore Shared Equity Trust - Zero Dividend                        751,500
Jupiter Split Trust - Zero Dividend                                 746,966
Johnson Fry European Utilities - Zero Dividend                      741,000

INVESTMENT TRUST ORDINARY SHARES

Value Realisation                                                 1,448,016
Scottish Value Trust                                                815,000
London & St Lawrence                                                708,975
Murray Emerging Economies                                           447,500

INVESTMENT TRUST CAPITAL SHARES

Tor Investment Trust                                                936,000

INDEX LINKED SECURITIES AND FIXED INTEREST

USA Treasury Notes 3.625% inflation indexed                         970,544
Germany (Federal Republic) 5.625% Bonds 2028                        866,823


CONSOLIDATED STATEMENT OF TOTAL RETURN (UNAUDITED)
FOR THE SIX MONTHS ENDED 5 OCTOBER 1999

                                         5 October 99         5 October 98
                              Revenue  Capital  Total Revenue Capital  Total
                                £'000    £'000  £'000   £'000   £'000  £'000

Gains(losses) on investments        -      859    859       -  (1,229) (1,229)
Released gains on life 
 assurance policies                 -        -      -       -      11      11
Income from investments           201        -    201      88       -      88
Other income - interest            14        -     14      37       -      37

GROSS RETURN                      215      859  1,074     125  (1,218) (1,093)

Reconstruction expenses             -        -      -       -     (85)    (85)
Management expenses               (18)     (73)   (91)    (24)    (35)    (59)
Other administrative expenses     (52)       -    (52)    (19)      -     (19)

                                  (70)     (73)  (143)    (43)   (120)   (163)

RETURN ON ORDINARY ACTIVITIES
BEFORE TAX                        145      786    931      82  (1,338) (1,256)

Tax on return on ordinary
 activities                        (3)       -     (3)    (18)      -     (18)

RETURN ON ORDINARY ACTIVITIES
AFTER TAX                         142      786    928      64  (1,338) (1,274)
Transfer to capital reserve         -        -      -       2      (2)      -

TOTAL ATTRIBUTABLE TO ORDINARY
SHAREHOLDERS                      142      786    928      66  (1,340) (1,274)

RETURN PER ORDINARY SHARE       6.09p   33.72p  39.81p  2.96p (60.06)p (57.10)p


CONSOLIDATED BALANCE SHEET (UNAUDITED)
AS AT 5 OCTOBER 1999
                                          5 October   5 October   5 April
                                               1999        1998      1999

                                              £'000       £'000     £'000

FIXED ASSETS

Investments                                  21,976      17,843    20,044

CURRENT ASSETS

Debtors                                         603         532       880
Bank                                             56          48       948

                                                659         580     1,828
CREDITORS: amounts falling due
 within one year                               (476)       (175)     (641)

NET CURRENT ASSETS                              183         405     1,187

NET ASSETS                                   22,159      18,248    21,231
 
                                                               
CAPITAL EMPLOYED

Called up share capital                         583         558       583
Share premium account                           991          96       991
Capital reserve                              20,354      17,419    19,568
Revenue reserve                                 231         175        89

TOTAL EQUITY SHAREHOLDERS' FUNDS             22,159      18,248    21,231

NET ASSETS PER ORDINARY SHARE                   951p        815p      911p