Final Results

Dunedin Income Growth Inv Tst PLC
14 March 2002



14 March 2002


                   DUNEDIN INCOME GROWTH INVESTMENT TRUST PLC

              PRELIMINARY RESULTS FOR THE YEAR TO 31 JANUARY 2002



Highlights

  • The trust's NAV total return outperformed its benchmark by 4%, having
    declined by 12% in comparison to a decline in the FTSE All-Share Index of
    16%

  • Total dividend for the year increased by 3.1% to 6.75p

  • Gearing at year end 15.7%

  • Discount narrowed from 12.2% to 11.2%

  • Among the main contributors to the outperformance were overweight
    positions in building, beverages and general retail stocks as well as an
    underweight position in telecommunications.


                                    - END -


For further information, please contact:-

Max Ward, Chairman
Dunedin Income Growth Investment Trust PLC              0131 220 4167

David Binnie, Investment Manager
Edinburgh Fund Managers plc                             0131 313 1000


Chairman's Review

This is my first statement as chairman of DIGIT and I should like to start by
paying tribute to my predecessor, Ewan Brown, who in his five years as chairman
guided our company most successfully through some very turbulent waters.

Nowadays, there is a most confusing array of statistics one can use to describe
the performance of an investment trust, but I shall confine my comments to the
NAV total return for the year, while the manager has concentrated on the capital
performance of the company's assets.

The year under review has been a difficult one for equity markets and we have
not been able to preserve the value of the company's assets during it, which is
disappointing. Our benchmark, the FTSE All-Share Index, recorded a negative
total return of 15.6% during the year; given the presence in DIGIT of a
significant level of gearing, which has the effect of exacerbating gains or
losses, we consider our own negative total return of 12.2% to be a fair result.


Dividend

The proposed final dividend of 4.6p per share will give a total dividend for the
year of 6.75p, some 3.1% higher than last year's 6.55p. For comparison, headline
inflation for the period was 1.3% and core inflation, which excludes the impact
of changes in mortgage interest rates, 2.6%. The revenue per share within the
trust fell from 7.18p to 6.87p, reflecting a modest shift to lower yielding
shares in the portfolio. The proposed dividend is comfortably covered by our
earnings and we continue to have a substantial revenue reserve to draw upon
should we need to.


Gearing

Over the years, your board has taken the view that the long term returns from
equities would be such as to justify the use of borrowings to finance a
significant part of the portfolio, a strategy to which the investment trust
structure is ideally suited. However, even within a favourable long term trend
there are inevitably periods, such as the year under review, when borrowing can
be painful. During such periods, it is one of the most important duties of your
directors to ensure that the overall level of borrowing remains prudent in the
context of both the prevailing environment and DIGIT's investment objectives.
Following the terrorist attacks on 11 September, we took the view that there had
been a significant increase in the levels of risk associated with the outlook
for both economies and stockmarkets and that it would be appropriate to raise
cash in order to reduce the trust's borrowings. We therefore made sufficient
sales from the portfolio to repay the £25m drawn on the facility we had arranged
with the Bank of New York, returning the company to the position where its only
borrowings were its long term debentures and its overall gearing was 15.7%, a
level with which we feel comfortable in the current environment.


Change of Portfolio Manager

David Binnie took over as portfolio manager in April 2001. He is an experienced
fund manager and is working closely with the rest of the UK equity team at
Edinburgh Fund Managers. We should be careful not to allow the decline in net
asset value to obscure the fact that he added considerable value during the
year. Your board considers that he has made an excellent start as portfolio
manager.


Discount

The discount to net asset value at which the company's share price stands is a
statistic we monitor closely. I am pleased to note a modest narrowing - from
12.2% to 11.2% - in the year under review. Perhaps as important is the fact that
the discount was remarkably stable in the second half of the year. Our objective
is a low and stable discount. Our marketing efforts (described below) and the
renewal of our authority to buy in our own shares should both be a help to us in
achieving this objective.


Marketing

The level of the discount depends on supply and demand for the company's shares
and we work actively to stimulate demand. We continue to support the Association
of Investment Trust Companies and their marketing campaign, which has been
successful in attracting more retail investors to investment trusts. Our
managers have a regular programme of visits to financial advisors and potential
investors round the country aimed at promoting the company as an attractive
investment.

We also contribute to the promotion of the manager's investment trust savings
products, which include ways of purchasing shares in DIGIT at low cost either
with a lump sum or through regular savings.



Outlook

As ever, the outlook is beset with conflicting forces. The legacy of the boom
years is excess capacity, sluggish demand and depressed profitability in a
number of important industries. However, low interest rates have helped consumer
spending and, in the UK at least, government spending is set to provide a
significant stimulus. It is not clear that stockmarket valuations in general are
cheap, but we believe that there is sound value to be found in many individual
shares and we retain a bullish view of the long term prospects for our
portfolio.

The company's Annual General Meeting takes place in Dundee this year, on 23
April and I look forward to seeing as many of you there as possible.



Max Ward
Chairman                                                           14 March 2002


STATEMENT OF TOTAL RETURN (AUDITED)
For the year ended 31 January




                                                2002                                 2001
                                                Revenue    Capital       Total       Revenue    Capital       Total
                                                   £000       £000        £000          £000       £000        £000

Realised (losses)/gains on investments                -    (8,647)     (8,647)             -     48,282      48,282
Unrealised (losses)/gains on investments              -   (48,319)    (48,319)             -      1,257       1,257
Currency gains                                        -          -           -             -        236         236

TOTAL CAPITAL (LOSSES)/GAINS ON INVESTMENTS           -   (56,966)    (56,966)             -     49,775      49,775

Income from investments                          13,956          -      13,956        13,416          -      13,416
Interest receivable on short term deposits          497          -         497         1,327          -       1,327
Other income                                          2          -           2            26          -          26
Investment management fee                         (601)    (1,402)     (2,003)         (624)    (1,457)     (2,081)
Administrative expenses                           (579)          -       (579)         (563)          -       (563)

NET RETURN BEFORE FINANCE COSTS AND TAXATION     13,275   (58,368)    (45,093)        13,582     48,318      61,900

Interest payable and similar charges            (2,276)    (5,310)     (7,586)       (2,093)    (4,883)     (6,976)

RETURN ON ORDINARY ACTIVITIES BEFORE             10,999   (63,678)    (52,679)        11,489     43,435      54,924
TAXATION

Taxation                                              -          -           -             -          -           -


RETURN ON ORDINARY ACTIVITIES AFTER TAXATION     10,999   (63,678)    (52,679)        11,489     43,435      54,924

Dividends in respect of equity shares          (10,806)          -    (10,806)      (10,484)          -    (10,484)

                                                    193   (63,678)    (63,485)         1,005     43,435      44,440

RETURN PER ORDINARY SHARE                         6.87p   (39.77p)    (32.90p)         7.18p     27.13p      34.31p


The revenue column of this statement represents the revenue account of the
company

All revenue and capital items in the above statement derive from continuing
operations




BALANCE SHEET (AUDITED)
As at 31 January
                                                                            2002                      2001
                                                                            £000                      £000
FIXED ASSETS
Investments                                                              428,890                   494,604

CURRENT ASSETS
Debtors                                                                    1,284                     6,434
UK Treasury Bills                                                          4,960                     9,899
AAA Money Market Funds                                                    13,000                         -
Cash and short term deposits                                               3,359                     4,965
                                                                          22,603                    21,298

CREDITORS: Amounts falling due within one year                            10,843                    11,781

NET CURRENT ASSETS                                                        11,760                     9,517

TOTAL ASSETS LESS CURRENT LIABILITIES                                    440,650                   504,121

CREDITORS: Amounts falling due after one year                             69,766                    69,752

                                                                         370,884                   434,369


CAPITAL AND RESERVES
Called up share capital - equity                                          40,025                    40,025
Share premium                                                              4,543                     4,543
Capital reserve - realised                                               291,818                   307,177
Capital reserve - unrealised                                              27,552                    75,871
Revenue reserve                                                            6,946                     6,753


TOTAL EQUITY SHAREHOLDERS' FUNDS                                         370,884                   434,369

Net asset value per ordinary 25p share                                   231.51p                   271.16p



CASHFLOW STATEMENT (AUDITED)
For the year ended 31 January

                                                                2002       2002                 2001         2001
                                                                £000       £000                 £000         £000

Net cash inflow from operating activities                                12,705                            11,575

Servicing of finance
Interest paid                                                (7,572)                         (6,963)

Net cash outflow from servicing of finance                              (7,572)                           (6,963)

Taxation
UK tax paid                                                    (412)                            (47)

Total tax paid                                                            (412)                              (47)

Financial investment
Purchase of investments                                    (199,101)                       (319,895)
Sales of investments                                         211,400                         332,663

Net cash inflow from financial investment                                12,299                            12,768

Equity dividends paid                                                  (10,565)                          (10,244)

Net cash inflow before use of liquid resources and
financing                                                                 6,455                             7,089
                                                                        
Net cash outflow from management of liquid resources                    (8,061)                           (9,899)


Financing
Loan drawn down                                               25,000                               -
Loan repaid                                                 (25,000)                               -

Net cash inflow from financing                                                -                                 -

Decrease in cash                                                        (1,606)                           (2,810)


Notes:

1.   The directors recommend that a final dividend of 4.60p per ordinary share
     be paid, making a total of 6.75p for the year ended 31 January 2002 (2001 -
     6.55p).  The final dividend will be paid on 26 April 2002 to shareholders 
     on the register at 5 April 2002.  The ex-dividend  date is 3 April 2002.

2.   The accounts have been prepared under the same accounting policies used for
     the year to 31 January 2001.  The statutory accounts for 2002 contain an
     unqualified audit report and will be delivered to the Registrar of Companies
     following the company's Annual General Meeting which will be held at
     Discovery Point, Dundee, on Tuesday 23 April 2002 at 12 noon.

3.   The financial information for the year ended 31 January 2001 has been
     extracted from the annual report and accounts of the company which has been
     filed with the Registrar of Companies and on which the auditors' report was
     unqualified.

4    The statement of total return  (incorporating the revenue account), balance
     sheet and cash flow statement do not represent full accounts in accordance 
     with Section 240 of the Companies Act 1985. The accounts have been prepared 
     in accordance with the Statement of Recommended Practice 'Financial 
     Statements of Investment Trust Companies'.

5.   The annual report will be posted to shareholders on 19 March 2002 and
     copies will be available at the head office of the Secretary - Edinburgh 
     Fund Managers plc, Donaldson House, 97 Haymarket Terrace, Edinburgh EH12 
     5HD.



Please note that past performance is not necessarily a guide to the future and
that the value of investments and the income from them may fall as well as rise.
Investors may not get back the amount they originally invested.



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