Interim Results

Dunedin Enterprise Inv Trust PLC
14 December 2004





For release                     07.00 am                        14 December 2004


 Dunedin Enterprise Investment Trust PLC ('Dunedin Enterprise' or ' the Trust')


              Interim Results for six months ended 31 October 2004


Dunedin Enterprise Investment Trust PLC, the private equity investment trust
which specialises in the provision of private equity for management buyouts,
management buyins and growing businesses throughout the UK, announces its
interim results for the six months ended 31 October 2004.


Financial Highlights:


  * Net asset value per share increased by 9.9% to 377.9p per share
  * Interim dividend of 1.9p per share (2003: 1.9p)


Comparative Performance

Periods to 31    Net asset value  Share price   FTSE Small Cap       FTSE All Share 
October 2004                                    (ex Inv Cos) Index    (ex Inv Cos)Index
                                                
                                           
Six months              +9.9%         +11.6%       -1.8%                   +2.7%
One year               +20.1%         +14.5%       +4.1%                   +8.2%
Three years            +16.2%          +1.4%      +13.0%                   -4.9%
Five years              -0.6%         -11.5%        0.0%                  -21.1%
Ten years              +96.8%         +89.5%      +48.3%                  +50.3%



Operating Highlights:


  * Realisations of £13.7 million in the half year
  * Flotation of Jessops and Goals Soccer Centres
  * New investment of £4.5 million in the half year



Edward Dawnay, Chairman of Dunedin Enterprise Investment Trust PLC, commented:


'The six months since reporting our final results in June has been a busy period
with nine portfolio company disposals and two new investments. The UK buyout
market is anticipated to show a second successive year of growth in 2004 after
suffering two years of decline. The market for divestments has also improved
with private equity firms realising record value from their investments.


Your Manager has generated a strong flow of investment opportunities for
consideration but continues to take new investments only in companies with good
growth prospects. The outlook for Dunedin Enterprise portfolio companies remains
positive, with the majority trading ahead of last year.'





For further information please contact


Ross Marshall                          Jacqui Graves / Victoria Stephens
Managing Director                      Binns & Co PR Ltd
Dunedin Capital Partners               0207 153 1486 / 0207 153 1482
0131 225 6699
07768 794 180
[e-mail]



Notes to Editors


Dunedin Enterprise Investment Trust PLC is managed by Dunedin Capital Partners
Limited. Dunedin Capital Partners Limited is an independent private equity
company owned by its directors. The company specialises in providing equity
finance for management buyouts, management buyins and growing businesses with a
transaction size of £10 - 50 million. It operates throughout the United Kingdom
from its offices in Edinburgh and London.


Dunedin Capital Partners is itself the result of a management buyout which took
place in 1996.


Dunedin Enterprise's primary objective is to achieve substantial long term
growth in its assets through capital gains from its investments.


For more information on Dunedin Enterprise, its portfolio and investment
approach, please visit the website www.dunedin.com.


Investors can buy shares in the company through regular savings, PEP/ISA and
pension plans. For further information, call the Edinburgh Fund Managers
helpline on 0800 028 6789 or visit the website at
www.dunedinenterprisetrust.co.uk.com.








Manager's Review


Overview


The unaudited net asset value attributable to ordinary shareholders at 31
October 2004 was £116.1 million compared to £105.7 million at 30 April 2004. Net
asset value per share increased by 9.9% in the six months to 31 October 2004
from 344.0p to 377.9p per ordinary share. The increase of 9.9% compares to a
decrease, over the same period, of 1.8% in the FTSE Small Cap Index (ex
investment companies). During the same six month period, the share price of
Dunedin Enterprise rose to 288p from 258p, an 11.6% increase.


Dunedin Enterprise invested £4.5 million in one new investment, five follow-on
investments and made a £5 million commitment to a new buyout fund during the
half year. Disposals by Dunedin Enterprise during the half year realised £13.7
million and produced a gain of £1.1 million over valuations at 30 April 2004.
Disposals by the Trust, following the half year end, realised a further £13.2
million on the flotation of Jessops and Goals Soccer Centres.


Investments


In August 2004, Dunedin Enterprise invested £3.5 million in the £92 million
management buyout of Total Fitness. Total Fitness operates health and fitness
facilities in the North of England and Ireland. The company operates 21 clubs
and has 157,000 members. Total Fitness clubs are large facilities with an
emphasis on exercise and rehabilitation.


The company is positioned at the value end of the sector, generally being the
lowest cost provider of a full facility club. All of the clubs have swimming
pools and a number have indoor running tracks. The company's plan is to continue
rolling out the Total Fitness model throughout the UK. With the current sites
being concentrated in the North of England there are plans to roll out the low
cost, large format clubs to other areas.


A further £1 million was invested in existing portfolio companies.


During the half year Dunedin Enterprise made a £5 million commitment to the LGV4
Private Equity Fund. This fund will focus on mid market buyouts primarily in the
UK with an enterprise value of between £60 million and £300 million. This offers
Dunedin Enterprise exposure to larger buyouts.


Realisations


A recapitalisation of C.G.I. Group, the manufacturer and supplier of fire
resistant glass, allowed Dunedin Enterprise to realise £5.3 million from this
investment and to retain a significant shareholding in the recapitalised
company. From an initial investment of £4.4 million, capital and income of £10.8
million has been received by the Trust together with a continuing investment
valued at £5.9 million. This represents a total multiple of 3.8 times and an
annual return of 41.7%.


Earls Court, the operator of exhibition centres, was sold during the half year
generating £2.2 million. This investment was acquired as part of the Group Trust
portfolio and Dunedin Enterprise has received capital and income of £2.4 million
in return for £1 million invested. This represents a multiple of 2.4 times money
invested and an annual return of 34.9%.


Two portfolio companies, Letts Filofax and ABI, repaid all of Dunedin
Enterprise's outstanding loan stock, returning £1.5 million and £3.0 million
respectively. This reflects strong trading conditions at each company,
particularly so at ABI, where your Company's initial investment of £3.2 million
was made in February 2004.


The remaining realisations totalled £1.7 million and were achieved through loan
stock repayments, preference share redemptions and other smaller disposals.


Following the half year end, in November 2004, Jessops, the specialist
photographic retailer, listed on the London Stock Exchange. Dunedin Enterprise
realised all its loan stock in Jessops and 36% of its ordinary shareholding. At
a listing price of 155p per share the Trust received capital, income and shares
totalling £6.1 million from an original investment of £3.1 million. This
represents a money multiple of 1.9 times, an annual return of 53.5% and an
uplift of £1.9 million from the valuation at 30 April 2004.


In December 2004, Goals Soccer Centres, the operator of five-a-side football
centres, successfully listed on the Alternative Investment Market. Dunedin
Enterprise realised its entire investment on listing. This was a successful
outcome for the Trust which invested £4.8 million in Goals Soccer Centres in
2000. Dunedin Enterprise received £10.5 million in capital and income proceeds
from this investment resulting in a money multiple of 2.2 times, a return of
22.2% per annum over four years and an uplift of £4.1 million from the valuation
at 30 April 2004.


Portfolio


There has been continued focus on actively managing the portfolio during the
half year with the disposal of a number of old investments with limited growth
potential. At 31 October 2004, Dunedin Enterprise's portfolio comprised
investments in 31 unlisted companies (representing 89% of the portfolio value),
eight buyout funds (7%) and four technology funds (4%).


Results for the six months to 31 October 2004


The movement in net asset value is summarised in the table below:

                                                                           £'m
Net asset value at 30 April 2004                                         105.7
Unrealised valuation increases                                            15.1
Unrealised valuation decreases                                            (5.6)
Realised profit over opening valuation                                     1.1
Other capital movements                                                   (0.2)
                                                                         ------
Net asset value at 31 October 2004                                       116.1
                                                                         ======



The Directors' valuation of the portfolio is in accordance with British Venture
Capital Association guidelines.


The weighted average price earnings multiple used to value the portfolio at 31
October 2004 was 8.1 (30 April 2004: 8.4), a discount of 47% to the FTSE All
Share price earnings multiple of 15.3 on that date (30 April 2004: 53% discount
to FTSE All Share multiple of 17.9).


Five portfolio companies account for the majority of the unrealised valuation
increases. Exit valuations placed on Goals Soccer Centres and Jessops account
for £4.1 million and £1.9 million of the uplift respectively. A discount of 10%
has been applied to the proceeds received post half year end from the sale of
ordinary shares in Goals Soccer Centres and a 20% discount has been applied to
the remaining quoted shareholding in Jessops. A combination of strong trading
and reduced gearing allow for increased valuations of £3.9 million at ABI, £1.9
million at Caledonian Building Systems and £1.5 million at Letts Filofax.


Poor trading at two portfolio companies has led to the value of these
investments being written down. Your Manager is taking active steps to achieve a
return of value to these investments in due course.


Dividend


The interim dividend has been maintained at 1.9p per ordinary share at a cost of
£583,717. The interim dividend will be paid on 28 January 2005 to shareholders
on the register at close of business on 7 January 2005. The ex-dividend date is
5 January 2005.


Prospects


Economic conditions in the UK remain benign with historically low levels of
interest rates and inflation.


The UK buyout market is anticipated to show a second successive year of growth
in 2004 after suffering two years of decline. The market for divestments has
also improved in 2004 with private equity firms having already realised a record
value from their investments.


In the three years to 2003, UK private equity firms have raised £30 billion,
whilst over the same period only £18 billion has been invested. This has created
a competitive market place for new investments. Your Manager has generated a
strong flow of investment opportunities for consideration but continues to take
new investments only in companies with good growth prospects.


The outlook for Dunedin Enterprise portfolio companies remains positive, with
the majority trading ahead of last year.


Dunedin Capital Partners Limited

13 December 2004


Ten Largest Investments

by value at 31 October 2004

                    Approx.             Cost of    Directors'    Percentage of
Company name     Percentage          investment     valuation       net assets
                  of equity
                         %*               £'000         £'000                %

Letts Filofax          41.1                 345        13,130             11.3
Group Limited
Davenham Group         34.4               4,960        11,516              9.9
Holdings
Limited
Goals Soccer           39.7    **         4,807         8,780              7.6
Centres
Limited
C.G.I. Group           37.9               5,941         5,941              5.1
Limited
Caledonian             32.4               3,808         5,745              4.9
Building
Systems
Limited                
Jessops                 4.0    **         3,142         5,050              4.4
Limited
ABI (UK)               18.5                 185         4,046              3.5
Limited
Dunedin Buyout         13.0               2,356         3,796              3.3
Fund LP
Portman                16.8               2,516         3,749              3.2
Holdings
Limited
Gardner Group          15.0               3,610         3,610              3.1
Limited                                  ------        ------             ----
                                         31,670        65,363             56.3
                                         ======        ======             ====



* 'Approx. percentage of equity' relates to ordinary share capital of the
relevant company and assumes full exercise of outstanding options, warrants and
conversion rights.


** Equity percentage prior to listing.



Overview of Portfolio


Analysed by valuation basis

                                        31 October             30 April
                                           2004                  2004


Price of recent investment                 25%                   33%

Earnings Multiple                          55%                   42%

Imminent sale price                        17%                    5%

Net assets                                  3%                   10%



Analysed by industry sector

                                        31 October             30 April
                                           2004                  2004


Aerospace & defence                        5%                     5%

Chemicals                                  -%                     6%

Construction & building materials         15%                    18%

General retailers                          6%                     4%

Household goods & textiles                18%                    18%

Insurance                                  2%                     3%

Leisure & hotels                          21%                   11%

Software & computer services               6%                    6%

Speciality & other finance                15%                   14%

Support services                          12%                   15%



Analysed by deal type

                                       31 October             30 April
                                          2004                  2004


Management buyouts/buyins                  86%                  86%

Buyout funds                                7%                   7%

Technology funds                            4%                   3%

Other                                       3%                   4%



Analysed by age of investment

                                        31 October             30 April
                                           2004                  2004


Less than 1 year                            16%                   14%

1-3 years                                   12%                   17%

3-5 years                                   57%                   48%

More than 5 years                           15%                   21%







Group Statement of Total Return (incorporating the Revenue Account)


(unaudited) for the six months ended 31 October 2004

                    Six months ended                Six months ended                   Year ended
                     31 October 2004                 31 October 2003                  30 April 2004
               Revenue    Capital     Total    Revenue    Capital     Total    Revenue    Capital     Total
                 £'000      £'000     £'000      £'000      £'000     £'000      £'000      £'000     £'000

Gains on             -     10,609    10,609          -      2,428     2,428          -     13,191    13,191
investments

Income from      1,837          -     1,837      1,868          -     1,868      4,391          -     4,391
investments

Deposit            116          -       116        117          -       117        233          -       233
Interest

Investment        (304)      (912)   (1,216)      (335)    (1,006)   (1,341)      (671)    (2,014)   (2,685)
management
fee

Other             (211)         -      (211)      (209)         -      (209)      (459)         -      (459)
expenses

Net return       1,438      9,697    11,135      1,441      1,422     2,863      3,494     11,177    14,671
before
finance costs
and tax

Interest           (31)       (95)     (126)      (156)      (468)     (624)      (251)    (1,201)   (1,452)
payable and
similar
charges            
                   
Return on        1,407      9,602    11,009      1,285        954     2,239      3,243      9,976    13,219
ordinary
activities
before tax       
                 
Tax on            (362)       362         -       (210)       210         -       (397)       397         -
ordinary
activities

Return on        1,045      9,964    11,009      1,075      1,164     2,239      2,846     10,373    13,219
ordinary
activities
after tax

Dividends         (584)         -      (584)      (587)         -      (587)    (2,645)         -    (2,645)

Transfer to        461      9,964    10,425        488      1,164     1,652        201     10,373    10,574
reserves

Basic return       3.4p      32.4p     35.8p       3.5p       3.8p      7.3p       9.2p      33.6p     42.8p
per ordinary
share

Dividends per      1.9p                            1.9p                           8.57p
share




Group Balance Sheet

(unaudited) as at 31 October 2004

                                           31 October   31 October    30 April
                                                 2004         2003        2004
                                                £'000        £'000       £'000

Fixed asset investments                       112,804      107,250     103,733

Current assets
Debtors                                           185        1,321         429
Cash at bank                                    5,165        9,513       5,050
                                                5,350       10,834       5,479

Creditors: amounts falling due within one        (623)        (671)     (2,144)
year

Net current assets                              4,727       10,163       3,335

Total assets less current liabilities         117,531      117,413     107,068

Creditors: amounts falling due after more      (1,419)     (20,269)     (1,381)
than one year
                                              116,112       97,144     105,687
Capital and reserves
Called up share capital                         7,680        7,718       7,680
Share premium                                  47,600       47,600      47,600
Capital redemption reserve                        246          208         246
Capital reserve - realised                     46,113       35,598      42,123
Capital reserve - unrealised                   11,746        3,467       5,772
Revenue reserve                                 2,727        2,553       2,266

Total equity shareholders' funds              116,112       97,144     105,687

Net asset value per share                       377.9p       314.7p      344.0p







Group Cash Flow Statement

(unaudited) for the six months ended 31 October 2004

                 Six months              Six months                       Year 
                      ended                   ended                      ended
                 31 October              31 October                   30 April 
                       2004                    2003                       2004
                      £'000     £'000         £'000     £'000            £'000      £'000
                                                                          
Net cash                          715                      81                       1,590
inflow from
operating
activities                        
                                  

Servicing of
finance
Interest                         (126)                   (624)                     (1,003)
paid                             

Financial
investment
Purchase of          (4,507)                 (5,943)                   (14,869)
investments
Purchase of          (9,587)                 (6,496)                   (22,888)
'AAA' rated
money market         
funds
Sale of              13,669                   7,495                     27,746
investments
Sale of 'AAA'         2,000                  12,500                     31,750
rated money
market
funds                 
                      
Net cash                        1,575                   7,556                      21,739
inflow from
financial
investment                      
                                

Equity                         (2,049)                 (3,087)                     (3,674)
dividends
paid

Net cash                          115                   3,926                      18,652
inflow before
financing

Financing
Purchase of                         -                       -                        (379)
ordinary
shares
Currency loan                       -                       -                      (3,810)
reduction
Term loan                           -                       -                     (15,000)
reduction

Increase/                         115                   3,926                        (537)                              
(decrease) in
cash at
bank                              
                                  










Notes to the Financial Statements

(unaudited) for the six months ended 31 October 2004

1.   The calculation of the revenue and capital return per share is based on the 
     return on ordinary activities after tax for the period and on 30,721,941 
     (2003: 30,871,941) ordinary shares, being the weighted average number
     of ordinary shares in issue during the half year.


2.   The calculation of net asset value per share is based on the net assets at 
     the end of the period divided by 30,721,941 (2003: 30,871,941) ordinary 
     shares, being the number of shares in issue at that date.


3.   The unaudited financial statements for the six months ended 31 October 2004 
     and 31 October 2003 do not constitute statutory accounts within the meaning 
     of Section 240 of the Companies Act 1985 and have not been delivered to
     the Registrar of Companies. The financial information for the year ended 30
     April 2004 has been extracted from audited financial statements for that 
     year, which have been delivered to the Registrar of Companies; the 
     independent auditors' report on those financial statements under Section 
     235 of the Companies Act 1985 was unqualified.


4.   Copies of this interim report have been mailed to shareholders and are 
     available from the registered office of the company, 10 George Street,
     Edinburgh, EH2 2DW.



                      This information is provided by RNS
            The company news service from the London Stock Exchange