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TR European Growth (TRG)

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Wednesday 14 September, 2005

TR European Growth

Final Results

TR European Growth Trust PLC
14 September 2005



                                                                     Page 1 of 7

14 September 2005

                          TR EUROPEAN GROWTH TRUST PLC

                      Unaudited Preliminary Group Results
                        for the year ended 30 June 2005


Highlights
     
*    Net asset value per ordinary share rises by 37.4%

*    Share price up 42.9%

*    Outperformance of benchmark by 7.3%

*    Final dividend increased by 4.2% to 2.50p

*    Special dividend of 1.50p


Extracts from the Chairman's Statement


Performance

I am pleased to report that the Company has had another excellent year. The
detailed results reveal that the net asset value per ordinary share out
performed the Company's benchmark index by 7.3%, rising 37.4% compared to a rise
of 30.1% in the benchmark.

The share price did even better, rising by 42.9%, as the discount narrowed over
the year. This arose due to the combination of increased demand for the
Company's shares in recognition of its continued outperformance, ongoing buying
back of stock and the significant cancellation of shares via a tender which
occurred in the Spring. The average discount over the year was below 10%.


Revenue and Dividend

Even though bank interest rose as a result of higher cash balances held through
the year, gross revenue fell by 13.3% and net revenue after tax fell 25.3% to
£4.1m, reflecting lower investment income from the smaller portfolio as the
principal dividend season followed the tender offer. The board is proposing an
increased final dividend per ordinary share of 2.50p. As revenue per ordinary
share is higher due to the significant reduction in share capital from the share
buyback programme and the tender offer, the board is also proposing a special
dividend of 1.50p per share. This makes total dividends per ordinary share of
4.00p for the year.


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                                                                     Page 2 of 7


                          TR EUROPEAN GROWTH TRUST PLC

                      Unaudited Preliminary Group Results
                        for the year ended 30 June 2005


Extracts from the Chairman's Statement (cont'd)


Share Capital

A total of 57,057,812 shares were purchased and cancelled during the year, which
represents 37.6% of the issued ordinary share capital at the beginning of the
year. Of these, 43,513,246 shares were purchased and cancelled pursuant to the
tender offer.  These shares were all bought back at a discount thereby enhancing
the NAV per ordinary share for remaining shareholders. Since year end, the
Company has bought back a further 1,600,293 shares.

At this year's AGM the board will be seeking to renew the powers to buy back
stock.


The Board

There has been no change in board composition during the year.  At this year's
AGM, the board is seeking approval for the re-election of Robert Jeens who is
retiring by rotation.  He is making a valuable contribution to the board and I
recommend that shareholders vote in favour of his re-election.


Performance Fee

In my statement last year, I reported that we had introduced new management fee
arrangements that would ensure that we paid less for poor performance and more
for good. We are pleased to report that the significant investment
outperformance of the benchmark has triggered a performance fee payment of £5.4m
to the Managers.


Outlook

European stockmarkets have enjoyed a strong rally since the early part of 2003.
Interest rates and bond yields remain low which has been a powerful background
for equities to prosper. Whilst parts of Europe continue to grapple with labour
and social issues, the stronger dollar has provided welcome relief to companies
with more export potential.

The board does have some concerns over consumer confidence and the impact of
higher commodity (especially energy) prices on corporate costs. Against this a
low interest rate environment is likely to persist. Equities themselves have
done well but do not in aggregate appear significantly over-priced.

After recording two strong years we intend to redouble efforts to focus the
portfolio on the best ideas available. If we can achieve this then there is
every prospect of further asset growth over the next year.


Audley Twiston-Davies

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                                                                     Page 3 of 7

                          TR EUROPEAN GROWTH TRUST PLC

                      Unaudited Preliminary Group Results
                        for the year ended 30 June 2005


Group Statement of Total Return (incorporating the consolidated revenue account)
for the year ended 30 June 2005

                                                    Year ended 30 June 2005          Year ended 30 June 2004
                                                  Revenue     Capital      Total    Revenue    Capital     Total
                                                    £'000       £'000      £'000      £'000      £'000     £'000

Total capital gains from investments                    -     105,020    105,020          -    103,832   103,832
Income from fixed asset investments                 6,161           -      6,161      7,858          -     7,858
Other interest receivable and similar income          771           -        771        139          -       139
                                                ---------   ---------  ---------  ---------  --------- ---------
Gross revenue and capital gains                     6,932     105,020    111,952      7,997    103,832   111,829

Management fee (including performance fee)          (416)     (8,000)    (8,416)      (512)    (2,046)   (2,558)
Other administrative expenses                       (722)           -      (722)      (635)          -     (635)
                                                ---------   ---------  ---------  ---------  --------- ---------
Net return on ordinary activities before
   interest payable and taxation                    5,794      97,020    102,814      6,850    101,786   108,636

Interest payable                                     (17)        (67)       (84)       (30)      (118)     (148)
                                                ---------  ---------   ---------  --------- ---------  ---------

Net return on ordinary activities before
  Taxation                                          5,777      96,953    102,730      6,820    101,668   108,488

Taxation on net return on ordinary activities     (1,687)       1,099      (588)    (1,345)        567     (778)
                                                ---------   ---------  ---------  ---------  --------- ---------
Net return on ordinary activities
   after taxation                                   4,090      98,052    102,142      5,475    102,235   107,710

Appropriations - dividends
Final proposed 2.50p (2004: Interim 2.40p)        (2,276)           -    (2,276)    (3,641)          -   (3,641)
Special proposed 1.50p (2004: 0.50p)              (1,422)           -    (1,422)      (759)          -     (759)
                                                ---------   ---------  ---------  ---------  --------- ---------
Total dividends payable                           (3,698)           -    (3,698)    (4,400)          -   (4,400)
                                                ---------   ---------  ---------  ---------  --------- ---------

Transfer to reserves                                  392      98,052     98,444      1,075    102,235   103,310
                                                    =====      ======     ======      =====     ======    ======

Return per ordinary share (note 1)                  2.92p      69.93p     72.85p      3.57p     66.68p    70.25p
                                                    =====      ======     ======      =====     ======    ======



The revenue column of this statement represents the consolidated profit and loss
account of the Group.

All revenue and capital items in the above statement derive from continuing
operations.


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                                                                     Page 4 of 7


                          TR EUROPEAN GROWTH TRUST PLC

                      Unaudited Preliminary Group Results
                        for the year ended 30 June 2005


Group and Company Balance Sheets
at 30 June 2005
                                                              Group         Group       Company       Company
                                                               2005          2004          2005          2004
                                                              £'000         £'000         £'000         £'000
Fixed asset investments
Listed at market valuation                                  297,377       320,985       297,377       320,985
Unquoted - at directors' valuation                           14,309        20,133        15,803        21,628
                                                       ------------  ------------  ------------  ------------
Total fixed assets                                          311,686       341,118       313,180       342,613
                                                       ------------  ------------  ------------  ------------

Current assets
Debtors                                                         566           831           566           831
Cash at bank                                                  2,315         3,097         2,311         3,094
                                                       ------------  ------------  ------------  ------------
                                                              2,881         3,928         2,877         3,925

Creditors: amounts falling due within one year             (22,991)       (5,056)      (24,481)       (6,548)
                                                       ------------  ------------  ------------  ------------
Net current liabilities                                    (20,110)       (1,128)      (21,604)       (2,623)
                                                       ------------  ------------  ------------  ------------
Total net assets                                            291,576       339,990       291,576       339,990
                                                            =======       =======        ======        ======

Capital and reserves
Called up share capital                                      11,847        18,979        11,847        18,979
Share premium                                               115,451       115,451       115,451       115,451
Capital redemption reserve                                    8,331         1,199         8,331         1,199
Other capital reserves                                      143,947       192,753       145,510       194,317
Revenue reserve                                              12,000        11,608        10,437        10,044
                                                        -----------   -----------  ------------  ------------
Equity shareholders' funds (note 2)                         291,576       339,990       291,576       339,990
                                                            =======       =======       =======       =======

Net asset value per ordinary share                          307.66p       223.93p       307.66p       223.93p



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                                                                     Page 5 of 7

                          TR EUROPEAN GROWTH TRUST PLC

                      Unaudited Preliminary Group Results
                       for the year ended 30 June 2005


Group Cash Flow Statement
for the year ended 30 June 2005
                                                                 2005          2005          2004          2004
                                                                £'000         £'000         £'000         £'000

Net cash inflow from operating activities                                     3,378                       3,727

Servicing of finance
Interest paid                                                    (82)                       (149)
                                                         ------------                ------------
Net cash outflow from servicing of finance                                     (82)                       (149)

Taxation
Withholding tax recovered                                         692                         407
                                                         ------------                ------------
Net tax recovered                                                               692                         407

Financial investment
Purchase of investments                                     (135,542)                   (167,680)
Sale of investments                                           276,433                     175,224
                                                         ------------                ------------
Net cash inflow from financial investment                                   140,891                       7,544

Equity dividends paid                                                       (4,310)                     (3,242)

Financing
Purchase of ordinary shares                                 (146,134)                     (5,591)
Tender offer costs paid                                         (489)                           -
Issue of ordinary shares                                            -                          33
Drawdown of loans                                               5,327                           -
                                                         ------------                ------------
Net cash outflow from financing                                           (141,296)                     (5,558)
                                                                       ------------                ------------
(Decrease)/increase in cash                                                   (727)                       2,729
                                                                            =======                     =======
Reconciliation of net cash flow to movement in

net (debt)/cash
(Decrease)/increase in cash as above                                          (727)                       2,729
Cash inflow from loans drawn down                                           (5,327)                           -
                                                                       ------------                ------------
Change in net cash resulting from cash flows                                (6,054)                       2,729
Exchange difference                                                           (687)                       (422)
                                                                       ------------                ------------
Movement in net cash in the year                                            (6,741)                       2,307
Net cash at 1 July                                                            3,027                         720
                                                                        -----------                 -----------
Net (debt)/cash at 30 June                                                  (3,714)                       3,027
                                                                            =======                     =======


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                                                                     Page 6 of 7


                          TR EUROPEAN GROWTH TRUST PLC

                      Unaudited Preliminary Group Results
                        for the year ended 30 June 2005

Notes:

     
1.   Return per ordinary share

     Revenue return per ordinary share is based on earnings attributable to 
     ordinary shares of £4,090,000 (2004: £5,475,000) and on the weighted 
     average number of ordinary shares in issue during the year of 140,219,591
     (2004: 153,321,883).

     Capital return per ordinary share is based on the net capital gain for the 
     year of £98,052,000 (2004: £102,235,000) and on the weighted average number 
     of ordinary shares in issue during the year of 140,219,591 
     (2004: 153,321,883).


2.    Reconciliation of movement in shareholders' funds          Group         Group       Company       Company
                                                                  2005          2004          2005          2004
                                                                 £'000         £'000         £'000         £'000

      Net revenue on ordinary activities after taxation
      for the year
                                                                 4,090         5,475         4,091         5,476
      Dividends                                                (3,698)       (4,400)       (3,698)       (4,400)
                                                             ---------   -----------   -----------   -----------
                                                                   392         1,075           393         1,076
      Increase in other capital reserves                        98,052       102,235        98,051       102,234
                                                             ---------   -----------   -----------   -----------
                                                                98,444       103,310        98,444       103,310
      Purchase of own shares                                 (146,346)       (4,787)     (146,346)       (4,787)
      Tender offer costs                                         (512)             -         (512)             -
      Gross proceeds from issue of ordinary shares

                                                                     -            33             -            33
                                                             ---------   -----------   -----------   -----------
      Net (decrease)/ increase to shareholders' funds

                                                              (48,414)        98,556      (48,414)        98,556
      Shareholders' funds at 1 July                            339,990       241,434       339,990       241,434
                                                             ---------   -----------   -----------   -----------
      Shareholders' funds at 30 June                           291,576       339,990       291,576       339,990
                                                                ======        ======        ======        ======
     
3.   Dividend

     A final dividend of 2.50p (2004: 2.40p) per ordinary share and a special 
     dividend of 1.50p (2004: 0.50p) per ordinary share have been declared 
     payable on 4 November 2005 to shareholders on the register on 23 September 
     2005.  The shares will be quoted ex-dividend on 21 September 2005.

4.   2004 Accounts

     The figures and financial information for the year ended 30 June 2004 are 
     an extract of the latest published accounts of the Group 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 either under 
     section 237(2) or 237(3) of the Companies Act 1985.


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                                                                     Page 7 of 7


                          TR EUROPEAN GROWTH TRUST PLC

                      Unaudited Preliminary Group Results
                        for the year ended 30 June 2005


Notes:
     
5.   2005 Accounts

     The preliminary figures for the year ended 30 June 2005, which do not 
     constitute statutory accounts, are an extract from the group's draft 
     accounts for the year. These accounts have not yet been delivered to the
     Registrar of Companies nor have the auditors yet reported on them.

6.   Annual General Meeting

     Copies of the Annual Report will be posted to shareholders in September.  
     Further copies will be available from the Secretary at 4 Broadgate, London 
     EC2M 2DA thereafter.  The Annual General Meeting will be held on 31 
     October 2005.


                                    - ENDS -


For further information please contact:

Stephen Peak
Fund Manager
TR European Growth Trust PLC

Telephone: 020 7818 4334



Audley Twiston-Davies

Chairman

TR European Growth Trust PLC

Telephone: 020 7818 6816



Sarah Gibbons-Cook

Investor Relations and PR Manager

Henderson Global Investors

Telephone: 020 7818 3198


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