Interim Results

AIM Distribution Trust PLC
27 November 2001


AIM Distribution Trust PLC

Preliminary announcement of results


The Directors announce the unaudited statement of results for the period ended
30 September 2001 as follows:-


                             FINANCIAL HIGHLIGHTS


                              Six months to       Six months to      Year to  
                               30 September        30 September     31 March  
                                       2001                2000         2001  
                                 (unaudited)         (unaudited)    (audited) 

Net asset value per share            78.98p             162.95p       117.23p
(NAV)*

Total net assets               £13,197,239         £27,227,526    £19,588,352


Dividends - revenue                    Nil                0.75p         1.75p
Dividends - capital                    Nil                 Nil          9.00p

Share price                          73.50p             150.00p       110.00p


* After payment of dividends



CHAIRMAN'S STATEMENT

(for the six months ended 30th September 2001)

I present the Interim Report of the Trust for the six months ended 30
September 2001.

In the 31 March 2001 annual report which was sent to shareholders on 5 June
2001 we commented on the turbulent global markets, the result of the Internet
bubble deflating and the slowing of the economy of the USA.  This bear market
continued throughout the current period, culminating in significant market
falls following events in the US on 11 September.



Balance sheet and net assets


At 30 September 2001, the net asset value ('NAV') per share of the Trust was
78.98p, a fall of 32.6% compared to 31 March 2001.  The FTSE AIM index fell
30.0%, although this index is not directly comparable by virtue of a portion
of the Trust being invested in fixed interest securities and OFEX companies
(9.8% and 6.4% respectively as at 30 September 2001).

The fall in the value of the NAV is, in general, in line with market
conditions over the period.  Smaller companies, including AIM companies, were
hit particularly hard, as investors favoured large company stocks and bonds.
In September alone, the NAV of the Trust fell by 21.3% and the FTSE AIM index
by 20.1% following the events in the USA.

Deal flow for VCT qualifying securities was strong for the first half of the
period, which enabled the Investment Adviser to thoroughly review the existing
portfolio.  As a result, a number of VCT holdings were disposed of and £1.80
million was invested in seven new AIM traded securities.  Investments in VCT
qualifying securities remain comfortably in excess of the required 70% level.



Results and dividend


Revenue from investments during the period amounted to £175,911 (2000: £
299,762).  The shift in emphasis towards capital growth has meant that revenue
yields have fallen.

The fall in the value of investments during the period has meant that the
Trust has net capital losses.  As discussed above, this is in line with
markets in general.  Accordingly, the Directors do not recommend the payment
of an interim dividend.



Change of name


Your Board is conscious of the need to promote a healthy market for its shares
and works closely with its manager to promote the Trust.  Recently a number of
other trusts have been formed with a similar name to ours starting with the
word AIM which we feel causes confusion.  The Trust is now managed by Legg
Mason Investors, part of the Legg Mason Inc. group, one of America's largest
financial services companies with $157.4 billion under management.  We believe
that we would benefit from adding the Legg Mason name to our own.  Accordingly
we propose to change the name of the Trust to Legg Mason Investors AIM
Distribution Trust plc and a notice of EGM to effect this is enclosed.



Future prospects


Since the period end, markets have recouped some of the September falls.
However, there remains a degree of caution.  At 31 October, the NAV per share
of the Trust had recovered to 88.00p, a rise of 11.4% since 30 September,
compared with an increase in the FTSE AIM index of 3.7%.  From September to
date the value of the Trust has increased significantly, assisted by timely
purchases of stocks in the non-qualifying portion of the portfolio such as
Turbo Genset and Transense Technologies.

The Investment Adviser employs an investment process which places emphasis on
the underlying business and long-term potential for growth.  We continue to
believe that, whilst those values may not currently be reflected in share
prices, the Trust's investments are well positioned once the current period of
market volatility and uncertainty has passed.




Sir Aubrey Brocklebank
Chairman
27 November 2001




INVESTMENT ADVISER'S REPORT
for the six months ended 30 September 2001



Market background


The six month period ended 30 September 2001 has been a turbulent one in world
markets.  The bear market that started in mid 2000 continued, accelerated by
the terrible events in the USA on 11 September.  All major UK markets
suffered.  Smaller companies were worse hit as there was a flight to perceived
quality in the form of bonds and large blue chip companies.  As a result the
AIM index fell 30% in the period.



Portfolio review


The past six months have been difficult and over the period the NAV has fallen
by 32.6%.

Notwithstanding this, significant progress has been made in the fundamentals
of some of the underlying businesses in the portfolio.  In June, Transense
Technologies announced a licensing agreement with Michelin for its tyre
pressure monitoring system.  In September, OMG issued a trading statement
indicating strong demand for their motion capture products in the UK, Europe
and Far East, although some deferrals in orders had been seen in the USA.
Connaught announced their interim results in May, showing an order book of £
125m with all divisions resilient and improving visibility of earnings.

There have been some disappointments over the course of the last six months.
Access Plus saw some weakness in direct mail and marketing activity.  Coffee
Republic's results showed continued progress, but investors' concerns over
market saturation led to a weak share price falling 68% in the six months.

Deal flow for VCT qualifying securities started the period strongly although
this slowed in the last quarter.  Quality was mixed but there have been
sufficient good quality companies and, given the market background, valuations
have been markedly more attractive than they have been over the last couple of
years.  This has enabled us to continue the disposal of investments that we
consider no longer add value to the portfolio, whilst maintaining the high
proportion of VCT qualifying investments which, at the end of September, was
comfortably in excess of the required 70% level.  We have entirely disposed of
positions in Knowledge Management Software, Topnotch Health Clubs, Xpertise
Group, Pennant and Getmapping.


New VCT qualifying investments added over the last six months were:


  * Aero Inventory: provides customised procurement and inventory management
    solutions to companies in the aerospace industry;
  * Atlantic Global: has developed timesheet and resource management
    software enabling companies to control their project costs;
  * British Photovoltaics (previously Inter Solar): the UK's only solar cell
    producer and the seventh largest thin film producer in the world. Thin
    film technology is gaining penetration because of its lower cost;
  * Collins & Hayes: manufactures and supplies upholstered furniture and
    fabrics for the household furniture market;
  * Jacques Vert: designs and sells ladies fashionwear.  The company has
    refocused on their retail outlets with the potential for 200 stores in the
    UK;
  * Overnet Data: develops wireless data and mobile commerce solutions for
    the next generation of devices with their first GPRS application already
    launched; and
  * Tepnel Life Sciences: has developed technology to purify DNA.  This is
    important because impurities such as DNA binding proteins and enzymes may
    result in test failures.  Current techniques use manual kits but these are
    time-consuming and prone to high error rates due to their laborious nature
    although still requiring highly qualified staff.



Market outlook


The stockmarket consequences of the terrorist attacks in the USA are, in our
view, likely to bring forward a short, sharp recession in the USA.  However,
the stimulus to the economy from lower interest rates and the increased
Government spending should not be underestimated.  As a result, we expect a
recovery to start in 2002. At the same time the UK economy is expected to
remain more robust.

Recent events are likely to focus investors' minds on the long term
implications to the economy, a time horizon that has been noticeably lacking
in the market recently.

The level of interest from companies seeking VCT qualifying equity backing has
started to increase once again and we expect more opportunities to arise over
the coming months.  The market conditions for our existing investments which
are able to see through the short-term will also be positive and should enable
them to also make continued progress.



LeggMason Investors Asset Managers plc
27 November 2001



                   STATEMENT OF REVENUE AND CAPITAL RETURNS
                                 (unaudited)


                     Six months ended                 Six months ended
                    30 September 2001                 30 September 2000
             Revenue     Capital       Total   Revenue     Capital       Total

                   £           £           £         £           £           £

Losses on          -  (6,634,997) (6,634,997)        -  (4,986,408) (4,986,408)
investments
Dividend and 175,911           -     175,911   299,762           -     299,762
interest
income
Investment   (34,778)   (104,333)   (139,111)  (54,879)   (164,638)   (219,517)
management
fees
Movement in        -     318,984     318,984         -  (1,293,896) (1,293,896)
provision
for
incentive
fee (note 5)
Other        (68,838)          -     (68,838) (112,830)          -    (112,830)
expenses

Return on     72,295  (6,420,346) (6,348,051)  132,053  (6,444,942) (6,312,889)
ordinary
activities
before
finance
costs and
tax
Interest         (14)          -         (14)     (577)          -        (577)
payable and
similar
charges

Return on     72,281  (6,420,346) (6,348,065)  131,476  (6,444,942) (6,313,466)
ordinary
activities
before tax
Taxation on        -     (43,048)    (43,048)        -           -           -
ordinary
activities

Return        72,281  (6,463,394) (6,391,113)  131,476  (6,444,942) (6,313,466)
attributable
to equity
shareholders
Dividends in       -           -           -  (125,315)          -    (125,315)
respect of
equity
shares


Transfer to/  72,281  (6,463,394) (6,391,113)    6,161  (6,444,942) (6,438,781)
(from)
reserves
Reserves at   82,735   2,976,331   3,059,066    57,605  17,079,416  17,137,021
31 March
2001/31
March 2000

             155,016  (3,487,063) (3,332,047)   63,766  10,634,474  10,698,240

               pence       pence       pence     pence       pence       pence

Return/         0.43      (38.68)     (38.25)     0.79      (38.50)     (37.71)
(loss) per
ordinary
share



The revenue column of this statement is the revenue account of the Trust.

The results of the Trust have been prepared in accordance with the
requirements of Schedule IV of the Companies Act.  This statement of revenue
and capital returns has been included to allow investors to compare the
results of the Trust against those of other Venture Capital Trusts and
Investment Trusts and also to show the taxation basis of returns.  This
statement does not form part of the financial statements.




                           PROFIT AND LOSS ACCOUNT
                                 (unaudited)




                                       Six months ended        Six months ended 
                                      30 September 2001       30 September 2000
                                            £         £           £           £

Revenue received on investments                175,911                 299,762
Administrative expenses
-  Investment management fees       (139,111)             (219,517)

-  Movement in provision for         318,984            (1,293,896)
incentive fee

   (note 5)
-  Other expenses                    (68,838)             (112,830)
                                                                    (1,626,243)
Net revenue/(loss)                             286,946              (1,326,481)

Income from fixed asset investments
(Losses)/gains on investments                 (461,514)                 94,310
Loss before interest and tax                  (174,568)             (1,232,171)

Interest payable and similar                       (14)                   (577)
charges

Loss before tax                               (174,582)             (1,232,748)
Tax on ordinary activities                     (43,048)                      -

Loss on ordinary activities after             (217,630)             (1,232,748)
taxation

Dividends
Revenue                                    -              (125,315)
                                                     -                (125,315)
Retained loss                                 (217,630)             (1,358,063)
Transfer from capital reserve                  289,911               1,364,224

Retained revenue profit                         72,281                   6,161

Loss per share                                  (1.30p)                 (7.36p)



                STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
                                 (unaudited)


                                         Six months ended    Six months ended
                                        30 September 2001   30 September 2000
                                                        £                   £

Loss for the year                                (217,630)         (1,232,748)
Unrecognised losses for the period             (6,173,483)         (5,080,718)

Total recognised losses during the             (6,391,113)         (6,313,466)
period

Total recognised loss per share                   (38.25p)            (37.71p)




                                BALANCE SHEET

                                              
                                    30 September   30 September      31 March 
                                            2001           2000          2001 
                                      (unaudited)    (unaudited)     (audited)
                                               £              £             £  
Fixed assets
Investments                           12,017,710     26,793,212     20,246,939
Cash                                     765,542      1,607,034      1,905,710
Net current assets/(liabilities)         413,987        121,176     (2,245,313)

Total assets less current             13,197,239     28,521,422     19,907,336
liabilities
Provision for liabilities and                  -     (1,293,896)      (318,984)
charges

Net assets                            13,197,239     27,227,526     19,588,352


Capital and reserves
Called up share capital                4,177,174      4,177,174      4,177,174
Special reserve                       12,328,362     12,328,362     12,328,362
Capital reserve - realised             2,615,187      3,078,471      2,784,212
Capital reserve - unrealised          (6,102,250)     7,556,003        192,119
Capital redemption reserve                23,750         23,750         23,750
Revenue reserve                          155,016         63,766         82,735

Shareholders' funds                   13,197,239     27,227,526     19,588,352


Net asset value per share                  78.98p        162.95p        117.23p




                             CASH FLOW STATEMENT

                                       Six months      Six months   
                                           ended           ended    Year ended
                                    30 September    30 September      31 March
                                            2001            2000          2001
                                      (unaudited)     (unaudited)     (audited)
                                               £               £             £

Operating activities
Investment income received               109,886         295,846       583,450
Deposit interest received                 69,299          65,730        93,008
Underwriting commission received             193               -             -
Investment management fees paid         (162,940)       (243,773)     (453,168)
Incentive fees paid (note 5)            (187,973)       (994,779)     (994,779)
Other expenses paid                      (90,005)       (121,066)     (157,341)

Net cash outflow from operating         (261,540)       (998,042)     (928,830)
activities

Servicing of finance
Interest paid                                  -             (70)         (669)

Income tax recovered                     237,414               -             -

Capital expenditure and financial        555,147       2,257,942     2,613,320
investment

Dividends
Equity dividends paid                 (1,671,189)     (3,629,279)   (3,754,594)

Net cash outflow before financing     (1,140,168)     (2,369,449)   (2,070,773)

Finance
Expenses of share issue/                       -        (121,516)     (121,516)
repurchase

Decrease in cash                      (1,140,168)     (2,490,965)   (2,192,289)




NOTES


1. Principal activity


The principal activity of the Trust is that of investing in shares and
securities with a view to becoming and maintaining the status of a venture
capital trust ('VCT').



2. Investments


Investments are treated as fixed assets and are shown in the balance sheet at
Directors' valuation on the following basis: Listed investments, including
those traded on the Alternative Investment Market ('AIM') and off-exchange
('OFEX'), are valued at mid-market price as at the balance sheet date.  The
Directors are conscious of the fact that because shares are traded on AIM and
OFEX this does not guarantee their liquidity.  The nature of AIM and OFEX
investments is such that the prices can be volatile and realisation may not
achieve current book value, especially when such sale represents a significant
proportion of that company's market capitalisation.  Nevertheless, on the
grounds that the investments are not intended for immediate realisation, they
regard mid-market price as the most objective and appropriate method of
valuation.

Fixed interest securities are at Directors' valuation based on the assumption
that they will be held to maturity.  To the extent that such securities are
purchased at a premium to nominal value, the premium is amortised to revenue
over the remaining life of the security in such a way as to maintain a
consistent return for the Trust over the period the securities are held.  If
there is no fixed period of investment for a security no adjustment is made in
respect of any premium paid.



3. Loss per share


Basic loss per ordinary share is based on the retained loss on ordinary
activities after taxation of £217,630 (30 September 2000:  £1,232,748) divided
by 16,708,698 (30 September 2000:  16,739,931) being the weighted average
number of ordinary shares in issue during the period.



4. Dividend


No interim dividend has been declared (30 September 2000:  0.75p).



5. Provision for incentive fee


The Directors provide for management incentive fees payable in relation to
future distributions.  The incentive fee, calculated in respect of each year
ending on 31 March, is equal to 25% of the aggregate amount of cash
distributions which are in excess of a cumulative annual hurdle rate of 4.5p
per share.  The provision for the incentive fee is based on net gains achieved
to date, both realised and unrealised.

The provision was first made in the six months ended 30 September 2000,
following approval of the change in the management fee structure on 2 June
2000.  The provision for this period (£1,293,896) represented a one-off
adjustment, incorporating net gains for the period since inception.  In
subsequent periods the provision is adjusted, both upwards and downwards, to
reflect the incentive fee that would be payable at any one point in time were
the net gains of the Trust to be distributed.



6. Comparative figures


The information for the year ended 31 March 2001 has been extracted from the
latest published audited accounts which have been filed with the Registrar of
Companies. The report of the Auditors on these accounts was unqualified and
did not contain a statement required under Section 237 (2) or (3) of the
Companies Act 1985.



7. Interim accounts


The information for the period ended 30 September 2001 does not constitute
statutory accounts within the meaning of Section 240 of the Companies Act
1985.