Interim Results

Temple Bar Investment Trust PLC
24 July 2001

Chairman's statement



Post tax revenues for the six months to 30 June were £7.385m representing an
increase of 10.0% on the equivalent period last year.  Although revenues have
remained robust, this increase does include some benefit from higher cash
holdings, and should therefore not be seen as an indication of the expected
outturn for the year.



Temple Bar has for the last five years sustained a dividend increase of 10%
per annum, well in excess of its peer group and indeed the equity market as a
whole.  The directors have reviewed carefully the Trust's ongoing dividend
policy taking into account its current strong revenues and reserves, but also
recognising the wider economic pressures that are emerging, and the need for
the managers to retain the ability to hold lower yielding shares when
appropriate.  Taking all these factors into account the board has determined
that the interim dividend should be raised by 6% to 7.98p per ordinary share.
This compares with a current rate of inflation of 1.9%.  The board fully
recognises the importance of income to shareholders and believes that this
move will enhance the capacity of the Trust to continue its long term record
of income growth  and in the absence of unforeseen circumstances it
anticipates that the final dividend will be increased by a similar percentage.
The interim dividend will be paid on 28 September 2001 to those shareholders
on the register on 17 September 2001.



Turning now to the asset performance, I am pleased to report a further most
satisfactory result for the first half of the year with total assets rising by
0.77% whereas the All Share Index produced a negative capital return of 8.57%.
It is also worth comparing performance against the FTSE Higher Yield Index
which rose by 1.65% reflecting the continued rehabilitation of the more value
orientated sectors of the market.



The lack of progress by equities so far this year can clearly be attributed to
the more widespread economic slowdown we are experiencing.  Whilst the telecom
and technology sectors have dominated the headlines in terms of trading
disappointments, it was always going to be a severe leap of faith to assume
that the rest of the economy would remain unscathed.  Not surprisingly a range
of other sectors are now starting to be affected, although the consumer
related industries provide a notable exception because of low unemployment and
falling interest rates.



Investor nervousness means that the safe haven status of defensive higher
yielding shares has had growing appeal, and the core of the Trust's portfolio
continues to benefit from this uncertainty.  We have, however, been willing to
reduce some defensive stocks which we believe have performed a little too
strongly - in the Retail sector for example.  New investment has been
concentrated in very specific situations where defensive earnings are not
being recognised, such as Gallaher, Lattice and Northern Foods.  We have found
it very difficult to justify a significant move into the more technology
orientated sectors even after their spectacular falls.



Outlook



That there are some disturbing features about the current economic environment
is not in doubt.  The sheer speed of the decline in business confidence, the
lack of visibility in earnings forecasts and the still high valuations across
many sectors invite concern, as does the over optimistic belief that monetary
easing is going to solve what has been, after all, a business rather than
consumer induced slowdown.  However, two points are worth considering.
Firstly, many of the uncertainties have at least been recognised, with the
prevailing wisdom now being noticeably more bearish.  Secondly, we believe
that a distinction should be drawn between the outlook for the market as a
whole, which is faced with some major international problems, and the Trust's
portfolio.



24 July 2001                                               Ronald Scott Brown

                                                        Twenty largest holdings
                                                               at 30 June 2001

Company                                            Valuation               % of
                                                       £'000          portfolio
BP                                                    25,094               5.98
Glaxo Smith Kline                                     21,187               5.05
Lloyds TSB                                            18,324               4.37
Shell Transport & Trading                             15,236               3.63
Boots                                                 13,746               3.27
Prudential                                            12,624               3.01
Cable & Wireless                                      11,581               2.76
Safeway                                               10,229               2.44
Rank                                                  10,017               2.39
Rio Tinto                                              9,553               2.28
Marks & Spencer                                        9,432               2.25
HSBC                                                   9,212               2.19
British Telecom                                        9,193               2.19
Lattice                                                9,084               2.16
Astra Zeneca                                           8,860               2.11
Halifax                                                8,613               2.05
Gallaher                                               7,945               1.89
Bass                                                   7,929               1.89
Rolls-Royce                                            7,804               1.86
Diageo                                                 7,528               1.79

                                                     233,191              55.56


           Statement of total return (incorporating the revenue account) 
                                of the group 
                   for the six months ended 30 June 2001 
 

                                                                              
                                   Six                     Six months         
                                months                         ended          
                              ended 30                        30 June         
                            June 2001                           2000          
                            (unaudited)                   (unaudited)         

                    Revenue   Capital    Total   Revenue     Capital    Total 
             Notes  £'000       £'000    £'000    £'000        £'000    £'000 

  Gains on      4       -       2,081    2,081        -           51       51 
  investments                                                                  
  Income        5   9,384           -    9,384    8,666            -    8,666 
  Investment        (452)       (452)    (904)    (337)        (337)    (674) 
  management                                                                  
  fee                                                                         
  Other             (195)           -    (195)    (280)            -    (280) 
  expenses                                                                    
                                                                              
  Net                                                                         
  return            8,737       1,629   10,366    8,049        (286)    7,763 
  before                                                                      
  finance                                                                     
  costs and                                                                   
  taxation                                                                    
  Interest         (1,140)    (1,140)   (2,280)  (1,140)     (1,140)   (2,280)
  payable     
                                                                              
  Return on                                                                   
  ordinary          7,597         489    8,086    6,909      (1,426)    5,483 
  activities                                                                  
  before                                                                      
  taxation                                                                    
  Taxation          (212)         212        -    (193)          193        - 
                                                                              
  Return on                                                                   
  ordinary          7,385         701    8,086    6,716      (1,233)    5,483 
  activities                                                                  
  after                                                                       
  taxation                                                                    
  Ordinary         (4,612)          -   (4,612)  (4,352)           -   (4,352)
  dividends 
                                                                              
  Transfers         2,773         701    3,474    2,364      (1,233)    1,131 
  to                                                                          
  reserves                                                                    
                                                                              
  Return            12.78p      1.21p   13.99p   11.62p      (2.13)p    9.49p 
  per                                                                         
  ordinary                                                                    
  share                                                                       
  Dividend          7.98p                         7.53p                       
  per                                                                         
  ordinary                                                                    
  share                                                                       
 
                                                                              
                                                       Year ended             
                                                 31 December 2000             
                                                        (audited)             
                                      Revenue             Capital       Total 
                             Notes    £'000               £'000       £'000 
  Gains on investments         4            -              22,223      22,223 
  Income                       5       17,357                   -      17,357 
  Investment management fee             (687)               (687)     (1,374) 
  Other expenses                        (574)                   -       (574) 
                                                                              
  Net return before finance costs                                             
  and taxation                         16,096              21,536      37,632 
  Interest payable                    (2,279)             (2,280)     (4,559) 
                                                                              
  Return on ordinary activities                                               
  before taxation                      13,817              19,256      33,073 
  Taxation                              (389)                 383         (6) 
                                                                              
  Return on ordinary activities                                               
  after taxation                       13,428              19,639      33,067 
  Ordinary dividends                 (13,541)                   -    (13,541) 
                                                                              
  Transfers to reserves                 (113)              19,639      19,526 
                                                                              
  Return per ordinary share            23.24p              33.98p      57.22p 
  Dividend per ordinary share          23.43p                                 
 

Consolidated cash flow statement
for the six months ended 30 June 2001


                                               30 June     30 June       31
                                               2001          2000     December
                                                                        2000
                                                 £'000      £'000      £'000
                                            (unaudited) (unaudited)  (audited)
                                                                     
Cash flow from operating activities            8,727        7,301      14,279

Return on investments and servicing of finance

Interest paid                                  (2,280)     (2,280)    (4,559)



Taxation

UK tax (paid)/recovered                        (110)        (107)       268



Capital expenditure and financial
investment                                       6,155     (6,467)     17,737

Purchases of investments                       (105,810)   (59,875)  (123,048)

Sales of investments                           111,965      53,408    140,785



Equity dividends paid                          (9,189)     (8,351)    (12,703)



Cash inflow/(outflow) before management of
liquid resources and financing
                                                 3,303     (9,904)     15,022
Management of liquid resources

Money market deposits (placed)/withdrawn       (5,553)      9,830     (7,430)



(Decrease)/increase in cash                    (2,250)       (74)      7,592



Reconciliation of net cash flow to movement in
net debt

(Decrease)/increase in cash                    (2,250)       (74)      7,592

Cash used to increase/(decrease) liquid        5,553       (9,830)     7,430
resources



Change in net debt                             3,303       (9,904)     15,022

Net debt at 1 January                          (31,227)    (46,249)   (46,249)



Net debt at 30 June                            (27,924)    (56,153)   (31,227)


Consolidated summary balance sheet
at 30 June 2001

                                      30 June 2001 30 June 2000   31 December
                                                                     2000
                                         £'000        £'000          £'000
                                      (unaudited)  (unaudited)     (audited)
                                                                   
Investments                           419,752        428,757       424, 437

Net current assets                    35,639          4,765         27,480

Amounts falling due after one year    (63,000)       (63,000)      (63,000)



Net assets                            392,391        370,522        388,917

Attributable to ordinary shareholders 392,391        370,522        388,917



Net asset value per ordinary share:   678.96p        641.12p        672.95p


Notes to the interim results


1.       Principal activity

The principal activity of the Company remains that of an investment trust.
The principal activity of its trading subsidiary is investment dealing.



2.       Recharges to capital and accounting policies

One half of the management fee and interest payable on the debenture stocks is
charged to the revenue account and the other half is charged to capital
reserves, net of corporation tax relief, and inclusive of any related
irrecoverable value added tax.

The unaudited interim financial statements have been prepared on a basis
consistent with the statutory financial statements for the year ended 31
December 2000.

3.       Dividend

The interim dividend of 7.98p (2000, 7.53p) per ordinary share will absorb 
£4,611,898 and will be paid on 28 September 2001 to shareholders registered on
17 September 2001.


4.       Gains on investments
                                       30 June         30 June     31 December
                                          2001            2000            2000
                                         £'000           £'000           £'000

Net realised gains on sales            27,145            8,519          29,817

Net decrease in unrealised             (25,064)        (8,468)         (7,594)
appreciation

Gains on investments                   2,081                51          22,223

5.       Income
                                        30 June         30 June     31 December
                                        2001               2000            2000
                                       £'000              £'000           £'000

UK dividends net of tax credits         7,704             6,963          13,774

Income from UK fixed interest
securities                                903             1,087           2,003
                                                
Scrip dividends                            87               177             459

Bank interest                             690               331             955

Underwriting commission                 -                     -              15

Dealing profit                          -                   108             151


                                        9,384             8,666          17,357

6.       Comparative figures

The information for the year ended 31 December 2000 does not constitute
statutory accounts, but has been extracted from the latest published audited
accounts, which have been filed with the Registrar of Companies.  The report
of the auditors on those accounts contained no qualification or statement
under section 237(2) or (3) of the Companies Act 1985.

7.       Publication

This interim report is being sent to shareholders and copies will be made
available to the public at the registered office of the Company.