Interim Results

Dunedin Income Growth Inv Tst PLC
05 September 2003

NEWS RELEASE

5 September 2003


                    DUNEDIN INCOME GROWTH INVESTMENT TRUST PLC

              INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 JULY 2003

The objective of Dunedin Income Growth Investment Trust is to achieve growth of
income and capital from a portfolio invested in the United Kingdom.


                                   Highlights

•        Net Asset Value rose by 22.5%, which compares favourably to the 18.8%
rise in the FTSE All-Share Index over the same period.

•        DIGIT's share price rose by 25% as the discount narrowed.

•        The interim dividend has been increased by 2.3% to 2.25p, compared to
last year's interim dividend of 2.20p.

•        Second interim dividend to be paid in early April 2004 in lieu of
final.

For further information, please contact:-



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



CHAIRMAN'S STATEMENT



The six month period to 31 July marked a welcome return to buoyant stockmarket
conditions with the FTSE All-Share Index rising 18.8% in capital terms. Helped
at long last by our gearing, DIGIT's net asset value rose by 22.5% during the
period, from 155.21p to 190.07p. The share price did even better with a rise of
25% as the discount narrowed slightly.



We are declaring an interim dividend of 2.25p, which represents an increase of
2.3% on last year's figure of 2.20p.  Having regard to the fact that many of our
shares are held in PEP and ISA plans, we have decided to pay a second interim
dividend this year in lieu of a final dividend.  This will be declared with the
preliminary figures next March and paid in early April.



Performance



The period began inauspiciously with the UK equity market falling in March to
its lowest level since the mid 1990s on the back of weak economic data and a
looming war in Iraq. For a brief time, the yield on 10 year gilt edged stock was
lower than that on equities, a phenomenon last seen in 1959.



A successful campaign in Iraq and, probably more importantly, a considerable
easing in global monetary conditions provided the fuel for a sharp rally from a
deeply oversold position. This rally brought with it a dramatic change in market
leadership. Defensive sectors - such as food, drink, tobacco and utilities -
which had proved resilient in a declining market were left behind as the
market's attention switched to the sectors that had been savaged by the bears,
such as life assurance, media and technology. Financially weak industrial
companies also benefited from the change in sentiment.



Over the six months the performance of our underlying portfolio broadly matched
that of the market (the better performance of our net asset value being largely
attributable to the benefits of gearing in a rising market). Your board
considers this a notable achievement on the part of our manager, David Binnie,
given the history of his outperformance of falling markets and the changes in
leadership referred to above.



Management Fee



We have renegotiated the basis on which we pay fees to Edinburgh Fund Managers
to reflect the fact that the costs of management do not rise in line with the
value of our assets.  The new fee basis was designed to produce a similar fee to
the old basis when DIGIT's total assets were approximately £330 million.  Under
the new basis our marginal fee is currently 0.3% as opposed to the old flat rate
of 0.375%.



Manager



You will be aware that Edinburgh Fund Managers is the subject of an agreed
takeover by Aberdeen Asset Management plc.  I am pleased to report that we have
received satisfactory assurances as to the continuity of our management
arrangements in the event of the bid going through.



Outlook



There are always uncertainties in the economic outlook, but it appears that a
pattern of gentle improvement is emerging in many parts of the world, including
the UK. Together with the prospect of low interest rates for the foreseeable
future, this should present a more encouraging environment for equity investment
than we have been accustomed to in recent years. We consider the UK among the
more attractively valued markets at the moment and believe the companies in our
portfolio are well placed to produce good long term returns.





Max Ward
Chairman


STATEMENT OF TOTAL RETURN
6 months ended 31 July 2003


                                                                        Revenue         Capital           Total
                                                                           £000            £000            £000

Realised losses on investments                                               -          (2,747)         (2,747)
Unrealised gains on investments                                              -          58,507          58,507
                                                                        _______         _______         _______

TOTAL CAPITAL GAINS ON INVESTMENTS                                           -          55,760          55,760
Income from investments                                                  7,667               -           7,667
Interest receivable on short term deposits                                 485               -             485
Other income                                                                 -               -               -
Investment management fee                                                 (210)           (490)           (700)
Administrative expenses                                                   (306)              -            (306)
                                                                        _______         _______         _______

NET RETURN BEFORE FINANCE                                                7,636          55,270          62,906
COSTS AND TAXATION
Interest payable and similar charges                                    (1,046)         (2,442)         (3,488)
                                                                        _______         _______         _______

RETURN ON ORDINARY                                                       6,590          52,828          59,418
ACTIVITIES BEFORE TAXATION
Taxation                                                                     -               -               -
                                                                        _______         _______         _______

RETURN ATTRIBUTABLE TO EQUITY SHAREHOLDERS                               6,590          52,828          59,418
Dividends in respect of equity shares                                   (3,602)              -          (3,602)
                                                                        _______         _______         _______
                                                                         2,988          52,828          55,816
                                                                        _______         _______         _______
RETURN PER ORDINARY SHARE                                                 4.12p          32.99p          37.11p
                                                                        _______         _______         _______
INTERIM DIVIDEND PER ORDINARY SHARE                                       2.25p
                                                                        _______



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.


STATEMENT OF TOTAL RETURN
6 months ended 31 July 2002


                                                                        Revenue         Capital           Total
                                                                           £000            £000            £000

Realised losses on investments                                               -            (375)           (375)
Unrealised losses on investments                                             -         (62,071)        (62,071)
                                                                        _______         _______         _______

TOTAL CAPITAL LOSSES ON INVESTMENTS                                          -         (62,446)        (62,446)
Income from investments                                                  7,981               -           7,981
Interest receivable on short term deposits                                 323               -             323
Other income                                                                 8               -               8
Investment management fee                                                 (280)           (654)           (934)
Administrative expenses                                                   (259)              -            (259)
                                                                        _______         _______         _______

NET RETURN BEFORE FINANCE                                                7,773         (63,100)        (55,327)
COSTS AND TAXATION
Interest payable and similar charges                                    (1,046)         (2,442)         (3,488)
                                                                        _______         _______         _______

RETURN ON ORDINARY                                                       6,727         (65,542)        (58,815)
ACTIVITIES BEFORE TAXATION
Taxation                                                                     -               -               -
                                                                        _______         _______         _______

RETURN ATTRIBUTABLE TO                                                   6,727         (65,542)        (58,815)

EQUITY SHAREHOLDERS
Dividends in respect of equity shares                                   (3,522)              -          (3,522)
                                                                        _______         _______         _______
                                                                         3,205         (65,542)        (62,337)
                                                                        _______         _______         _______
RETURN PER ORDINARY SHARE                                                 4.20p        (40.94p)        (36.74p)
                                                                        _______         _______         _______
INTERIM DIVIDEND PER ORDINARY SHARE                                       2.20p
                                                                        _______



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.


STATEMENT OF TOTAL RETURN
12 months ended 31 January 2003


                                                                        Revenue         Capital           Total
                                                                           £000            £000            £000

Realised losses on investments                                               -         (26,949)        (26,949)
Unrealised losses on investments                                             -         (89,300)        (89,300)
                                                                        _______         _______         _______

TOTAL CAPITAL LOSSES ON INVESTMENTS                                          -        (116,249)       (116,249)
Income from investments                                                 13,698               -          13,698
Interest receivable on short term deposits                                 773               -             773
Other income                                                                14               -              14
Investment management fee                                                 (506)         (1,181)         (1,687)
Administrative expenses                                                   (546)              -            (546)
                                                                        _______         _______         _______

NET RETURN BEFORE FINANCE                                               13,433        (117,430)       (103,997)
COSTS AND TAXATION
Interest payable and similar charges                                    (2,092)         (4,883)         (6,975)
                                                                        _______         _______         _______

RETURN ON ORDINARY                                                      11,341        (122,313)       (110,972)
ACTIVITIES BEFORE TAXATION
Taxation                                                                     -               -               -
                                                                        _______         _______         _______

RETURN ATTRIBUTABLE TO EQUITY SHAREHOLDERS                              11,341        (122,313)       (110,972)
Dividends in respect of equity shares                                  (11,204)              -         (11,204)
                                                                        _______         _______         _______
                                                                           137        (122,313)       (122,176)
                                                                        _______         _______         _______
RETURN PER ORDINARY SHARE                                                 7.08p        (76.40p)        (69.32p)
                                                                        _______         _______         _______





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


                                                                 At 31 July      At 31 January         At 31 July
                                                                       2003               2003               2002
                                                                       £000               £000               £000
FIXED ASSETS
Investments                                                        347,959            296,469            357,800
                                                                    _______            _______            _______

CURRENT ASSETS
Debtors                                                              5,010              2,183              6,206
UK Treasury Bills                                                    1,986              2,979                  -
AAA Money Market Funds                                              21,800             20,000             13,000
Cash and short term deposits                                         4,249              5,196              9,373
                                                                    _______            _______            _______

                                                                    33,045             30,358             28,579
CREDITORS: Amounts falling due within one year                      (6,694)            (8,340)            (8,060)
                                                                    _______            _______            _______

NET CURRENT ASSETS                                                  26,351             22,018             20,519
                                                                    _______            _______            _______

TOTAL ASSETS LESS CURRENT LIABILITIES                              374,310            318,487            378,319

CREDITORS: Amounts falling due after one year                      (69,786)           (69,779)           (69,772)
                                                                    _______            _______            _______

                                                                   304,524            248,708            308,547
                                                                    _______            _______            _______

CAPITAL AND RESERVES
Called up share capital - equity                                    40,025             40,025             40,025
Other reserves                                                     264,499            208,683            268,522
                                                                    _______            _______            _______

TOTAL EQUITY SHAREHOLDERS' FUNDS                                   304,524            248,708            308,547
                                                                    _______            _______            _______
Net asset value per 25p ordinary share                              190.07p            155.21p            192.58p
                                                                    _______            _______             ______






CASHFLOW STATEMENT


                                                                     6 months         6 months         12 months
                                                                        ended            ended             ended
                                                                      31 July          31 July        31 January
                                                                         2003             2002              2003

                                                                         £000             £000              £000

Revenue before finance costs and taxation                              7,636            7,773            13,433
Increase in accrued income                                              (492)            (409)             (155)
(Increase)/decrease in other debtors                                      (6)             165               179
Decrease in creditors                                                     (8)            (182)             (208)
Expenses charged to capital                                             (490)            (654)           (1,181)
                                                                      _______          _______           _______
Net cash inflow from operating activities                              6,640            6,693            12,068

Net cash outflow from servicing of finance                            (3,481)          (3,481)           (6,962)

Total tax paid                                                             -                -                 -

Net cash inflow from financial investment                              4,386            5,207            12,634

Equity dividends paid                                                 (7,685)          (7,365)          (10,884)
                                                                      _______          _______           _______

Net cash (outflow)/inflow before financing                              (140)           1,054             6,856

Management of liquid resources                                          (807)           4,960            (5,019)
                                                                      _______          _______           _______
(Decrease)/increase in cash                                             (947)            6,014            1,837
                                                                      _______          _______           _______



Notes:

1.      The directors have declared an interim dividend of 2.25p (2002 - 2.20p)
per ordinary share for the year ended 31 January 2004. The interim dividend,
payable on 26 September 2003, will be paid to shareholders on the register on 19
September 2003.  The ex dividend date is 17 September 2003.

2.      The accounts have been prepared under the same accounting policies used
for the year ended 31 January 2003.

3.      The financial information for the year ended 31 January 2003 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 cashflow statement set out above 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 interim report will be posted to shareholders on 9 September 2003
and copies will be available at the head office of the Secretary - Edinburgh
Fund Managers plc, Donaldson House, 97 Haymarket Terrace, Edinburgh EH12 5HD.

6.      The financial information set out above for the periods ended 31 July
2003 and 31 July 2002 is unaudited but has been reviewed by the auditors.







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
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