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TR European Growth (TRG)

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Tuesday 11 February, 2003

TR European Growth

Interim Results

TR European Growth Trust PLC
11 February 2003

11 February 2003

                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results

                    for the half year ended 31 December 2002


        *     3 consecutive quarters of outperformance during calendar year 2002

        *     Gearing reduced to zero


HIGHLIGHTS


         Unaudited                                                                  Unaudited        Audited   % change

       31 December Assets                                                         31 December        30 June

              2001                                                                       2002           2002
             £'000                                                                      £'000          £'000
           289,912 Total net assets                                                   217,834        274,946      -20.8

                 % Divided between:                                                         %              %
             104.7 Quoted equities                                                       90.5           97.5
               5.9 Unquoted equities                                                      7.5            5.7
               1.6 Convertibles                                                             -            0.9
            (12.2) Net current assets/(liabilities)                                       2.0           (4.1)
             -----                                                                      -----          -----
             100.0                                                                      100.0          100.0
              ====                                                                       ====           ====

                   Net asset value per:
           179.62p Ordinary share (undiluted)                                         137.42p        170.35p      -19.3
           178.20p Ordinary share (fully diluted)*                                          -        169.89p

           153.50p Ordinary share price                                               107.00p        144.00p      -25.7
            14.54% Discount to NAV (undiluted)                                         22.14%         15.47%
            13.86% Discount to NAV (fully diluted)                                          -         15.24%
            27.50p Warrant price                                                        2.00p         10.75p      -81.4

            279.86 FTSE World Europe (ex UK) Index - £                                 199.56         255.12      -21.8
            326.84 - Local                                                             217.63         280.44      -22.4

            123.62 HSBC Smaller Europe (ex UK) Index - £                               100.15         123.35      -18.8


        * Fully diluted assumes conversion of all outstanding warrants.





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                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results

                    for the half year ended 31 December 2002



     CHAIRMAN'S STATEMENT

     The market and our results


    Stock markets around the world and particularly in Europe have continued to
    fall sharply due to a combination of worries. The Middle East looms large
    and the underlying questions over the course of economies remain. Fears over
    the solvency of financial institutions have increased and the spiral of 'the
    more it falls the more we have to sell' is continuing to cause severe lack
    of confidence. TREG has not escaped this decline but we have managed to hold
    up a little better than the general market, as summarised above. On a
    broader note we continue to stabilise the Company's relative performance
    recording three outperforming quarters in calendar 2002, a pleasing trend
    after a torrid 2001. As usual we have recorded a loss on our revenue
    account. This is due to our dividend receipts predominantly falling into our
    second half year.

     Share price


    The share price performed less well than our assets bringing about a
    widening of our discount to underlying assets. The directors' authority to
    buy back stock for cancellation was refreshed at the AGM and we remain alert
    to appropriate opportunities to utilise these powers. Since the end of June
    to date we have bought back 3,435,128 shares. These buy-backs have enhanced
    the Company's NAV per share by 0.67p.

     Prospects


    At a time when uncertainty prevails and so much seems likely to happen in
    the next few months it is difficult to predict the future. We feel that TREG
    is now more conservatively positioned with no borrowings and that the
    current market disarray should present our Manager with occasional
    opportunities to select moneymaking ideas. We are encouraged by our
    stabilisation and improvement in relative performance and intend, markets
    willing, to make absolute progress again.

    Shareholder Question and Answer Session

    Following the suggestion put forward at the AGM, we will be holding an
    informal Question and Answer session for shareholders. This will be held on
    Monday 24 March 2003 at 4 Broadgate from 10.00 am to 11.00 am. Those
    shareholders who wish to attend are asked to contact the Company Secretary
    in order to allow appropriate arrangements to be made.



    Audley Twiston-Davies

    Chairman

    10 February 2003





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                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results

                    for the half year ended 31 December 2002



Group Statement of Total Return (incorporating the revenue account)

for the half year ended 31 December 2002

                                       (Unaudited)                        (Unaudited)                 (Audited)
                              Half year ended 31 December      Half year ended 31 December       Year ended 30 June
                                                                              
                                      2002                                   2001                          2002
                                                                             
                            Revenue    Capital      Total Revenue     Capital      Total   Revenue  Capital      Total
                              £'000      £'000      £'000   £'000       £'000      £'000     £'000    £'000      £'000

Total capital losses from         -    (52,210)   (52,210)      -    (114,696)  (114,696)        - (128,265)  (128,265)
investments
Income from fixed asset 
investments                     428          -        428   1,176           -      1,176     5,513        -      5,513
Other interest receivable 
and similar income              648          -        648      73           -         73       141        -        141

                             -------   --------   -------- -------   ---------  ---------   ------- --------   --------
Gross revenue and capital 
losses                        1,076    (52,210)   (51,134)  1,249    (114,696)  (113,447)    5,654 (128,265)  (122,611)
Management fee                 (491)    (1,966)    (2,457)   (523)     (2,092)    (2,615)   (1,016)  (4,064)    (5,080)
Other administrative 
expenses                       (256)         -       (256)   (423)          -       (423)     (602)       -      (602)
                             -------   --------   -------- -------   ---------  ---------   ------- --------   --------

Net return/(loss) on 
ordinary activities before      
 interest payable
and taxation                    329    (54,176)   (53,847)    303    (116,788)  (116,485)    4,036 (132,329)  (128,293)
Interest payable                (49)      (196)      (245)   (332)     (1,329)    (1,661)     (416)  (1,666)    (2,082)
                             -------   --------   -------- -------   ---------  ---------   ------- --------   --------
                                   
Net return/(loss) on 
ordinary activities before      
taxation                        280    (54,372)   (54,092)    (29)   (118,117)  (118,146)    3,620 (133,995)  (130,375)
Taxation (charge)/relief on    
ordinary activities            (498)       530         32    (185)        238         53    (1,109)     765       (344) 
                             -------   --------   -------- -------   ---------  ---------   ------- --------   --------

Net (loss)/return on 
ordinary activities            
 after taxation                (218)   (53,842)   (54,060)   (214)   (117,879)  (118,093)    2,511 (133,230)  (130,719)

Appropriations - dividends
Final 2002: 1.45p                 -          -          -       -           -          -    (2,340)       -     (2,340)
Over accrual prior year 
(note 4)                         34          -         34       -           -          -         -        -          -
                             -------   --------   -------- -------   ---------  ---------   ------- --------   --------

Transfer (from)/to 
reserves                       (184)   (53,842)   (54,026)   (214)   (117,879)  (118,093)      171 (133,230)  (133,059)

                             =======   ========   ======== =======   =========  =========   ======= ========   ========
                                                                                                                     
(Loss)/return per ordinary
share (note 1)               (0.14)p   (33.69)p   (33.83)p (0.13)p    (73.04)p   (73.17)p    1.56p   (82.55)p  (80.99)p
                                                                                                                       
- Basic
- Diluted                          -          -          -       -           -          -        -          -         -
                             =======   ========   ======== =======   =========  =========   ======= ========   ========


The revenue columns of this statement represent the revenue accounts of the
Group.





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                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results

                    for the half year ended 31 December 2002



Group Balance Sheets

as at 31 December 2002
                                                        (Unaudited)          (Unaudited)            (Audited)
                                                        31 December          31 December              30 June

                                                               2002                 2001                 2002
                                                              £'000                £'000                £'000
Fixed assets
Investments at valuation                                    213,447              325,403              286,119
                                                        -----------          -----------          -----------

Current assets
Debtors                                                         283                  955                2,373
Cash at bank                                                  4,309                    2                2,839
                                                        -----------          -----------          -----------
                                                              4,592                  957                5,212

Creditors - amounts falling due
within one year                                               (205)             (36,448)             (16,385)
                                                        -----------          -----------          -----------
Net current assets/(liabilities)                              4,387             (35,491)             (11,173)
                                                        -----------          -----------          -----------
Total net assets                                            217,834              289,912              274,946
                                                        ===========          ===========          ===========

Capital and reserves
Called up share capital                                      19,814               20,175               20,175
Share premium                                               115,421              115,421              115,421
Other capital reserves                                       73,003              144,921              129,570
Revenue reserve                                               9,596                9,395                9,780
                                                        -----------          -----------          -----------
                                                            217,834              289,912              274,946
                                                        ===========          ===========          ===========

Net asset value per share (note 2)                          137.42p              179.62p              170.35p

- undiluted

Net asset value per share (note 2)                                -              178.20p              169.89p

- fully diluted





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                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results

                    for the half year ended 31 December 2002



Group Cash Flow Statement

for the half year ended 31 December 2002
                                                                  (Unaudited)           (Unaudited)         (Audited)
                                                              Half year ended       Half year ended        Year ended
                                                             31 December 2002      31 December 2001      30 June 2002
                                                                        £'000                 £'000             £'000

Net cash outflow from operating activities                            (1,640)               (1,423)           (1,029)
Net cash outflow from servicing of finance                              (179)               (1,683)           (2,150)
Net tax recovered                                                         211                   158               524
Net cash inflow from financial investment                              18,690               108,536           137,454
Equity dividends paid                                                 (2,306)               (2,340)           (2,340)
Net cash outflow from financing                                      (13,867)             (102,446)         (132,381)
                                                                  -----------           -----------       -----------
Increase in cash                                                          909                   802                78
                                                                  ===========           ===========       ===========

Reconciliation of operating revenue to net cash outflow from operating activities
Net revenue before interest payable and taxation                          329                   303             4,036
Decrease in accrued income                                                 67                   512               600
Decrease in other debtors                                                   2                    41                 -
Decrease in other creditors                                              (31)                  (86)             (149)
Management charge taken to other capital reserves                     (1,966)               (2,092)           (4,064)
Overseas withholding tax suffered                                        (41)                 (101)             (689)
Scrip dividends included in investment income                               -                     -             (763)
                                                                  -----------           -----------       -----------
                                                                      (1,640)               (1,423)           (1,029)
                                                                  ===========           ===========       ===========

Reconciliation of net cash flow to movement in net funds/(debt)
Increase in cash                                                          909                   802                78
Net repayment of loans                                                 10,781               102,454           132,389
                                                                  -----------           -----------       -----------
                                                                       11,690               103,256           132,467
Exchange differences                                                      312               (2,966)           (3,703)
                                                                  -----------           -----------       -----------
Movement in net funds/(debt) in period                                 12,002               100,290           128,764
Net debt at beginning of period                                       (7,701)             (136,465)         (136,465)
                                                                  -----------           -----------       -----------
Net funds/(debt) at period end                                          4,301              (36,175)           (7,701)
                                                                  ===========           ===========       ===========
Represented by:
Cash at bank                                                            4,309                     2             2,839
Bank loans and overdrafts                                                 (8)              (36,177)          (10,540)
                                                                  -----------           -----------       -----------
                                                                        4,301              (36,175)           (7,701)
                                                                  ===========           ===========       ===========




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                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results

                    for the half year ended 31 December 2002

Notes:


        1.     (Loss)/return per ordinary share

             Revenue loss per ordinary share is based on the net loss
        attributable to the ordinary shares of £218,000 (half year ended 31
        December 2001: loss £214,000; year ended 30 June 2002: gain £2,511,000)
        and on the weighted average number of shares in issue during the half
        year ended 31 December 2002 of 159,782,840 (half year ended 31 December
        2001: 161,397,156; year ended 30 June 2002: 161,398,674).

             Capital return per ordinary share is based on net capital losses
        for the half year ended 31 December 2002 of £53,842,000 (half year ended
        31 December 2001: £117,879,000; year ended 30 June 2002: £133,230,000)
        and on the weighted average number of shares in issue as shown above.



             The calculation of the fully diluted revenue and capital returns
        per ordinary share are carried out in accordance with Financial
        Reporting Standard 14, Earnings per Share ('FRS 14'). For the purposes
        of calculating diluted revenue and capital returns per share, the number
        of shares is the weighted average used in the calculation plus the
        number of shares deemed to be issued for no consideration on exercise of
        all warrants, by reference to the average price of the ordinary shares
        during the year. No dilution is applicable for the half years ended 31
        December 2002 and 31 December 2001.

        2.     Net asset value per ordinary share

             Undiluted net asset value per ordinary share is based on the
        158,515,246 ordinary shares in issue at 31 December 2002 (31 December
        2001: 161,400,217; 30 June 2002: 161,400,217).

             The diluted net asset value per ordinary share, as disclosed on the
        balance sheet, is calculated in accordance with the SORP, based on the
        assumption that 18,890,205 warrants in issue at 31 December 2002 (31
        December 2001: 18,890,362; 30 June 2002: 18,890,362) were converted into
        ordinary shares. Dilution is assumed to occur only if the diluted net
        asset value is greater than the subscription price of 166p.


 3. Issued share capital

    On 30 October 2002, 157 warrants were exercised at a price of 166p resulting
    in the issue of 157 new ordinary shares. During the period, the Company
    repurchased for cancellation 2,885,128 of its own issued shares. At 31
    December 2002 there were 158,515,246 ordinary shares in issue. Since the end
    of the period the Company has repurchased for cancellation a further 550,000
    of its own issued shares. Therefore there are to date 157,965,246 ordinary
    shares in issue.

 4. Dividends


        No interim dividend has been declared (2001: nil). The dividend payable
        in respect of the year ended 30 June 2002, at 1.45p per ordinary share,
        amounted to £2,340,000. The buy-backs of the Company's ordinary shares,
        after 30 June 2002 but before the record date of the final dividend for
        the year ended on that date, resulted in a write-back of £34,000 for
        dividends accrued in the year ended 30 June 2002 but not in the event
        payable.





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                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results

                    for the half year ended 31 December 2002

Notes (cont'd):


        5.     Comparative information

             The financial information contained in this interim statement does
        not constitute statutory accounts as defined in section 240 of the
        Companies Act 1985. The financial information for the six months ended
        31 December 2001 and 31 December 2002 have not been audited. The figures
        and financial information for the year ended 30 June 2002 are an extract
        from the latest published accounts and do not constitute statutory
        accounts for that year. Those accounts have been delivered to the
        Registrar of Companies and included the report of the auditors, which
        was unqualified and did not contain a statement under either section 237
        (2) or 237(3) of the Companies Act 1985.

        6.     Interim statement

             The interim accounts were approved by the directors on 10 February
        2003.





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                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results

                    for the half year ended 31 December 2002

Thirty Largest Investments

Market Value at 31 December 2002

Stock                                     Activity                                                                 £'000
Naspers (other)                           Media company with pay tv and interactive products                      14,204
Heijmans (NL)                             Broadly based construction company                                       9,110
*BrainLAB (D)                             Medical technology company                                               8,782
Rapala VMC (SF)                           Manufacturer and distributor of fishing-related products                 8,721
Sjaelso Gruppen (DK)                      Property developer                                                       7,574
Zapf Creation (D)                         Marketer of baby dolls                                                   6,909
CEPSA (E)                                 Oil refining & exploration                                               6,636
Obrascon Huarte Lain (E)                  Construction and infrastructure projects                                 6,624
Fortum (SF)                               Widely diversified energy concern                                        5,626
Eniro (S)                                 Directory (Yellow pages) business                                        5,469
Riverdeep (IRL)                           Educational software provider                                            4,773
Folli Follie (GR)                         Jewellery retailer                                                       4,690
Kaba (CH)                                 Access controls and security systems                                     4,381
Pliva (Cr)                                Manufacturer of pharmaceuticals and fine chemicals                       4,377
Telekom Austria (A)                       Former state-controlled telecom concern                                  3,774
Kone (SF)                                 Leading elevator company                                                 3,745
*21 Developpement (other)                 Private equity fund specialising in France                               3,744
Van der Moolen (NL)                       A trader of securities and derivatives                                   3,608
Eiffage (F)                               Construction company with exposure to concessions                        3,264
iTouch (IRL)                              Provider of information/services to mobile customers                     3,250
Xstrata (CH)                              International resources group                                            3,245
*Doughty Hanson Fund III (other)          Private equity fund                                                      3,214
Aalberts Industries (NL)                  Industrial services and flow control systems                             3,145
Swisslog (CH)                             Logistic solutions provider                                              2,967
Rocla (SF)                                Manufacturer of warehouse trucks                                         2,893
Fugro (NL)                                Leading onshore and offshore surveyor                                    2,811
Vinci (F)                                 Construction company with exposure to concessions                        2,795
Wegener (NL)                              Regional newspaper company                                               2,792
Vedior (NL)                               Temporary employment company                                             2,737
Buhrmann (NL)                             Leading distributor of office products to businesses                     2,712

These investments total £148,572,000 or 69.6% of the portfolio.

(All classes of equity in any one company are treated as one investment.)

*Unquoted investments

                                    - ENDS -



For further information please contact:

Stephen Peak

Director

TR European Growth Trust PLC

Telephone: 020 7818 4334

Stephen Westwood

Head of Investment Trusts

Henderson Global Investors

Telephone: 020 7818 5517

Stephen Phillips

Investor Relations Manager

Henderson Global Investors

Telephone: 020 7818 6417

Vicki Staveacre

Henderson Press Office

Telephone: 020 7818 4222


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