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TR European Growth (TRG)

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Tuesday 24 February, 2004

TR European Growth

Interim Results

TR European Growth Trust PLC
24 February 2004

24 February 2004

                         TR EUROPEAN GROWTH TRUST PLC
 
                         Unaudited Interim Results 

                    for the half year ended 31 December 2003 

 
     •Positive start to financial year 
     •Share price up 31.9% 
     •NAV rises by 26.4% 
     •Outperformance of relevant Indices

     HIGHLIGHTS 

                                                                                                         
                  Unaudited                                              Unaudited     Audited   % change
                31 December  Assets                                   31 December      30 June           
                       2002                                                   2003        2003           
                      £'000                                                  £'000       £'000           
                    217,834  Total net assets                              304,246     241,434      +26.0
                          %  Divided between:                                    %           %           
                       90.5  Quoted equities                                  88.9        91.7           
                        7.5  Unquoted equities                                 6.5         8.5           
                          -  Unquoted convertibles                             0.1           -           
                        2.0  Net current assets/(liabilities)                  4.5       (0.2)           
                    -------                                                -------     -------           
                      100.0                                                  100.0       100.0           
                       ====                                                  ====         ====           
                             Net asset value per:                                                        
                    137.42p  Ordinary share (undiluted)                    197.51p     156.22p      +26.4
                    107.00p  Ordinary share price                          166.25p     126.00p      +31.9
                     22.14%  Discount to NAV (undiluted)                    15.83%      19.34%           
                      2.00p  Warrant price*                                      -       0.25p           
                    199.56   FTSE World Europe (ex UK) Index - £            251.78      216.39      +16.4
                    217.63   - Local                                        257.36      223.98      +14.9
                    100.15   HSBC Smaller Europe (ex UK) Index - £          146.58      117.42      +24.8


* All outstanding warrants were exercised or lapsed unconverted by 14 November 2003. Therefore,
as at 31 December 2003, dilution is no longer applicable.
 
 
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                              TR EUROPEAN GROWTH TRUST PLC 

                               Unaudited Interim Results 

                       for the half year ended 31 December 2003 
 
Extracts from the Chairman's Statement 

The market and our results 

The combination of recovering economies with benign inflationary conditions has caused investor confidence to rise
around the world. Europe has participated in the ongoing rally since the lows of last March, with our benchmark Index
rising 14.9% in local terms and, helped by a strong Euro, 16.4% when translated into Sterling. Smaller companies did
even better with the relevant Index rising 24.8%. I am delighted to report that your Company's performance, both
absolute and relative, was very good with net assets rising 26.0%. As usual, we have recorded a loss on our Revenue
account. This is due to our dividend receipts predominately falling into our second half year.


Share price 

The share price did better than the assets, rising by 31.9%, as our discount narrowed from 19.3% to 15.8%. 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. During the half year we have bought back 525,000 shares. Subsequently, and up
to the date of this report, a further 625,000 shares have been repurchased. We allotted 19,711 new shares as a result
of the final opportunity to exercise our warrants.


Prospects  

Investors now anticipate good economic growth around the world. Many share prices now reflect some, if not all, of
this positive outlook. Our Managers now face the challenge of searching for the opportunities that allow more upside,
in what remains a world with many risks and pitfalls. We have the financial flexibility to pursue new ideas and I
look forward to updating you on our progress later in the year.

 
 
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                             TR EUROPEAN GROWTH TRUST PLC 

                              Unaudited Interim Results 

                        for the half year ended 31 December 2003 

Group Statement of Total Return (incorporating the revenue account)

for the half year ended 31 December 2003

                                                                                                                      
                       (Unaudited)                          (Unaudited)                          (Audited)            
               Half year ended 31 December         Half year ended 31 December              Year ended 30 June        
                          2003                                 2002                                2003 
              
                Revenue      Capital       Total         Revenue   Capital       Total     Revenue   Capital     Total 
                      £'000      £'000          £'000       £'000      £'000        £'000     £'000      £'000   £'000
                                                                                                                      
  Total capital           -     64,443         64,443           -   (52,210)     (52,210)         -   (24,289)  (24,289)
  gains/(losses)                                                                                                   
  from                                                                                                                
  investments                                                                                                         
  
  Income from           757          -            757         428          -          428     5,863          -   5,863
  fixed asset                                                                                                         
  investments                                                                                                         
  
  Other interest         79          -             79         648          -          648       940          -    940 
  receivable and                                                                                                      
  similar income                                                                                                      
                   ---------  ---------    ----------   ----------  ---------  ----------   --------  ---------  -----
                                                                                                                      
  Gross revenue         836     64,443         65,279       1,076   (52,210)     (51,134)     6,803   (24,289) (17,486)
  and capital                                                                                                      
  gains/(losses)                                                                                                      
  
  Management fee      (277)    (1,109)        (1,386)       (491)    (1,966)      (2,457)     (772)    (3,089) (3,861)  
                                                                                                                   
  Other               (303)          -          (303)       (256)          -        (256)     (525)          -   (525)
  administrative   ---------  ---------    ----------   ----------  ---------  ----------   --------  ---------       
  expenses             
                                                                                                                 
  Net                   256     63,334         63,590        329     (54,176)   (53,847)     5,506   (27,378) (21,872)
  return/(loss)                                                                                          
  on ordinary                                                                                                         
  activities                                                                                                          
  before                                                                                                              
  interest                                                                                                            
  payable and                                                                                                         
  taxation                                                                                                            
  
  Interest              (2)       (10)           (12)        (49)      (196)        (245)      (45)      (179)   (224)
  payable          ---------  ---------    ----------   ----------  ---------  ----------   --------  ---------  -----  
  
                   
                                                                                                                
                                                                                                                      
  Net                   254     63,324         63,578         280   (54,372)     (54,092)     5,461   (27,557) (22,096)
  return/(loss)                                                                                                   
  on ordinary                                                                                                         
  activities                                                                                                          
  before                                                                                                              
  taxation                                                                                                            
  
  Taxation            (567)        538           (29)       (498)        530           32   (1,497)        950   (547)
  (charge)/relief  ---------  ---------    ----------   ----------  ---------  ----------   --------  ---------  -----  
  on                    
  ordinary                                                                                                   
  activities                                                                                                          

  Net                 (313)     63,862         63,549       (218)   (53,842)     (54,060)    3,964   (26,607) (22,643)
  (loss)/return                                                                                                   
  on ordinary                                                                                                         
  activities                                                                                                          
  after taxation                                                                                                      
  Appropriations                                                                                                      
  - dividends                                                                                                         

  Final 2003:             -          -              -           -          -            -   (3,245)          -  (3,245)
  2.10p                                                                                                            

  Over accrual            3          -              3          34          -           34       34           -      34 
  prior year                                                                                                          
                   ---------  ---------    ----------   ----------  ---------  ----------   --------  ---------  -----
                         
                                                                                                                      
  Transfer            (310)     63,862         63,552       (184)   (53,842)     (54,026)       753   (26,607) (25,854)
  (from)/to          ======     ======         ======      ======     ======       ======     =====     ======   =====  
  reserves                                                                                                      
                                                                                                                    = 
  (Loss)/return     (0.20)p     41.38p         41.18p     (0.14)p   (33.69)p     (33.83)p     2.50p   (16.80)p (14.30)p
  per ordinary                                                                                                    
  share                                                                                                               
  - 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 2003 
 
Group Balance Sheets
 
as at 31 December 2003

                                                                                                    
                                                            (Unaudited)    (Unaudited)     (Audited)
                                                            31 December    31 December       30 June
                                                                   2003           2002          2003
                                                                  £'000          £'000         £'000
                    Fixed assets                                                                    
                    Investments at valuation               290,686        213,447       241,837     
                                                           -----------    -----------   ----------- 
                    Current assets                                                                  
                    Debtors                                528            283           6,029       
                    Cash at bank                           13,195         4,309         720         
                                                           -----------    -----------   ----------- 
                                                           13,723         4,592         6,749       
                    Creditors: amounts falling due                                                  
                    within one year                        (163)          (205)         (7,152)     
                                                           -----------    -----------   ----------- 
                    Net current assets/(liabilities)       13,560         4,387         (403)       
                                                           -----------    -----------   ----------- 
                    Total net assets                       304,246        217,834       241,434     
                                                           =======        =======       =======     
                    Capital and reserves                                                            
                    Called up share capital                19,255         19,814        19,318      
                    Share premium                          115,451        115,421       115,421     
                    Other capital reserves                 159,317        73,003        96,162      
                    Revenue reserve                        10,223         9,596         10,533      
                                                           -----------    -----------   ----------- 
                                                           304,246        217,834       241,434     
                                                           =======        =======       =======     
                    Net asset value per ordinary share          197.51p        137.42p       156.22p



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                                TR EUROPEAN GROWTH TRUST PLC 

                                 Unaudited Interim Results 

                          for the half year ended 31 December 2003 


Group Cash Flow Statement 

for the half year ended 31 December 2003

                                                                                                                      
                                                                        (Unaudited)         (Unaudited)      (Audited)
                                                                    Half year ended     Half year ended     Year ended
                                                                   31 December 2003    31 December 2002   30 June 2003
                                                                  £'000               £'000                  £'000    
  Net cash (outflow)/inflow from operating activities             (789)               (1,640)            1,160        
  Net cash outflow from servicing of finance                      (13)                (179)              (190)        
  Net tax recovered                                               289                 211                427          
  Net cash inflow from financial investment                       17,426              18,690             15,472       
  Equity dividends paid                                           (3,242)             (2,306)            (2,306)      
  Net cash outflow from financing                                 (1,544)             (13,867)           (17,313)     
                                                                  -----------         -----------        -----------  
  Increase/(decrease) in cash                                     12,127              909                (2,750)      
                                                                  =======             =======            ======= 

     
  Reconciliation of operating revenue to net cash (outflow)/inflow from operating activities                          

  Net revenue before interest payable and taxation                256                 329                5,506        
  Decrease/(increase) in accrued income                           201                 67                 (153)        
  Decrease in other debtors                                       3                   2                  15           
  (Decrease)/increase in other creditors                          (43)                (31)               11           
  Management charge taken to other capital reserves               (1,109)             (1,966)            (3,089)      
  Overseas withholding tax suffered                               (97)                (41)               (1,006)      
  Scrip dividends included in investment income                   -                   -                  (124)        
                                                                  -----------         -----------        -----------  
                                                                  (789)               (1,640)            1,160        
                                                                  =======             =======            =======      
  Reconciliation of net cash flow to movement in net funds/(debt)                                                     
  Increase/(decrease) in cash                                     12,127              909                (2,750)      
  Net repayment of loans                                          -                   10,781             10,459       
                                                                  -----------         -----------        -----------  
                                                                  12,127              11,690             7,709        
  Exchange differences                                            348                 312                712          
                                                                  -----------         -----------        -----------  
  Movement in net funds in period                                 12,475              12,002             8,421        
  Net funds/(debt) at beginning of period                         720                 (7,701)            (7,701)      
                                                                  -----------         -----------        -----------  
  Net funds at period end                                         13,195              4,301              720          
                                                                  =======             =======            =======      
  Represented by:                                                                                                     
  Cash at bank                                                    13,195              4,309              720          
  Bank loans and overdrafts                                       -                   (8)                -            
                                                                  -----------         -----------        -----------  
                                                                  13,195              4,301              720          
                                                                  =======             =======            =======      
 
 
 
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                             TR EUROPEAN GROWTH TRUST PLC 

                             Unaudited Interim Results 

                      for the half year ended 31 December 2003 


Notes: 

1.     (Loss)/return per ordinary share 

     Revenue loss per ordinary share is based on the net loss attributable to the ordinary shares of £313,000 (half
year ended 31 December 2002: loss £218,000; year ended 30 June 2003: gain £3,964,000) and on the weighted average
number of shares in issue during the half year ended 31 December 2003 of 154,306,120 (half year ended 31 December
2002: 159,782,840; year ended 30 June 2003: 158,394,041).


     Capital return per ordinary share is based on net capital gains for the half year ended 31 December 2003 of
£63,862,000 (half year ended 31 December 2002: losses £53,842,000; year ended 30 June 2003: losses £26,607,000) 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
2003 and 31 December 2002, or for the year ended 30 June 2003.


2.   Net asset value per ordinary share 

     Undiluted net asset value per ordinary share is based on the 154,040,957 ordinary shares in issue at 31 December
2003 (31 December 2002: 158,515,246; 30 June 2003: 154,546,246).
 
3.     Issued share capital

On 30 October 2003, 19,711 warrants were exercised at a price of 166p resulting in the issue of 19,711 new ordinary
shares. All remaining warrants lapsed unconverted on 14 November 2003. During the period, the Company repurchased for
cancellation 525,000 of its own issued shares. At 31 December 2003 there were 154,040,957 ordinary shares in issue.
Since the end of the period the Company has repurchased for cancellation a further 625,000 of its own issued shares.
Therefore, as at the date of approval of the interim accounts, there are 153,415,957 ordinary shares in issue.
 
4     Dividends

No interim dividend has been declared (2002: nil). The dividend payable in respect of the year ended 30 June 2003, at
2.10p per ordinary share, amounted to £3,245,000. The buy-backs of the Company's ordinary shares, after 30 June 2003
but before the record date of the final dividend for the year ended on that date, resulted in a write-back of £3,000
for dividends accrued in the year ended 30 June 2003 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 2003
 
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 2002 and 31
December 2003 have not been audited. The figures and financial information for the year ended 30 June 2003 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 23 February 2004.



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                         TR EUROPEAN GROWTH TRUST PLC 

                          Unaudited Interim Results 

                    for the half year ended 31 December 2003 


Thirty Largest Investments 

Market Value at 31 December 2003

                                                                                                             
            Stock                         Activity                                                     £'000 

            Sjaelso Gruppen               Property developer                                           13,860

            *BrainLAB                     Medical technology company                                   12,511

            Rapala VMC                    Manufacturer and distributor of fishing-related products     11,629

            Heijmans                      Broadly based construction company                           11,439

            Puma                          Sporting goods and apparel                                   10,376

            National Bank of Greece       Retail and corporate bank                                    10,283

            Depfa Bank                    Public sector and infrastructure financing                    8,083

            NDS                           Conditional access software                                   7,569

            New Skies Satellites          Global satellite communications                               7,495

            Eniro                         Leading yellow pages company                                  7,465

            Koninklijke Wessanen          Producer and wholesaler of health foods                       6,616

            Red Electrica                 Operator of Spain's national electric grid                    6,422

            Fortum                        Widely diversified energy concern                             6,355

            iTouch                        Provider of information/services to mobile customers          6,300

            Baloise                       General insurance company                                     6,226

            Buhrmann                      Leading distributor of office products to businesses          6,086

            Andritz                       Manfacturer of industrial process equipment                   6,016

            Altadis                       Tobacco products                                              5,864

            VP Bank                       Private bank                                                  5,864

            Lindt & Spruengli             Manufacturer of chocolate and confectionary products          5,532

            Zapf Creation                 Marketer of baby dolls                                        5,376

            Folli Follie                  Designer and retailer of jewellery products                   4,870

            Public Power                  Electric utility                                              4,823

            Aalberts Industries           Specialist engineering products and services                  4,674

            Coca-Cola Hellenic Bottling   Soft drinks bottler                                           4,650

            United Services Group         Temporary employment services                                 4,630

            Swedish Match                 Tobacco products                                              4,581

            Bilfinger & Berger            Construction and engineering services                         4,353

            Mobilcom                      Telecommunications services                                   4,071

            Sampo Insurance               Investment and banking services                               4,047


These investments total £208,066,000 or 71.6% 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

Vicki Staveacre

Henderson Press Office

Telephone: 020 7818 4222
 




END  



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