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TR European Growth (TRG)

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Monday 19 February, 2007

TR European Growth

Interim Results

TR European Growth Trust PLC
19 February 2007

                                                                    Page 1 of 10

19 February 2007



                          TR EUROPEAN GROWTH TRUST PLC



                           Unaudited Interim Results

                    for the half year ended 31 December 2006



HIGHLIGHTS



•   Share price rise of 13.0%






      31 December                                                          31 December       30 June
             2005                                                                 2006          2006
      (unaudited)                                                          (unaudited)     (audited)
            £'000                                                                £'000         £'000    % change

          336,458 Total net assets                                             408,649       365,434      + 11.8

                % Divided between:                                                   %             %
            100.0 Quoted equities                                                104.2          98.5
              3.2 Unquoted equities                                                2.1           2.3
            (3.2) Net current liabilities                                        (6.3)         (0.8)
          -------                                                              -------       -------
            100.0                                                                100.0         100.0
             ====                                                                 ====          ====

          373.83p Net asset value per ordinary share                           471.74p       417.04p      + 13.1

          339.25p Ordinary share price                                         416.75p       368.75p      + 13.0
            9.25% Discount to NAV                                               11.66%        11.58%

                - Benchmark                                                          -             -       +16.6
           379.67 *HSBC Smaller Europe (ex UK) Index                            498.00        428.20      + 16.3
           427.01 *S&P/Citigroup EMI Europe (ex UK) Index                       561.31        480.20      + 16.9

           543.71 *FTSE World Europe (ex UK) Index                              653.16        578.23      + 13.0

                  * Indices expressed on a total return basis, source Datastream


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                                                                    Page 2 of 10

                          TR EUROPEAN GROWTH TRUST PLC


                           Unaudited Interim Results
                    for the half year ended 31 December 2006





Extracts from the Chairman's Statement



The Company's net asset value per share rose by 13.1%. This compared to a rise
of 16.6% for our benchmark index. This underperformance was due to a period of
disappointing stock selection coming after three years of strong returns. The
share price rose by 13.0% as the discount widened marginally from 11.6% to
11.7%.  The trend of smaller companies outperforming their larger brethren
continued once again, with the difference in returns being very marked.  The
strength of sterling blunted returns for UK based investors.



The majority of our dividend income usually falls due in the second half of our
financial year.  However, I am pleased to announce that, despite this, we are
able to report a positive revenue result of £14,000 for the income statement for
the first six months of our year.



The Company has continued to repurchase its shares for cancellation. These have
all been executed at discounts to net asset value per share and so have enhanced
the net asset value attributable to the remaining shareholders. During the six
months to 31 December 2006, one million shares were repurchased.



Prospects



The European economic environment should be quite benign, with reasonable levels
of growth and controlled inflationary pressures. There even appear to be signs
of domestic demand picking up in what have recently been fairly sluggish areas
such as Germany.  External issues, such as the likely effects of the shakeout
occurring in the US housing market, remain a concern.  However, for the moment,
the impact on the rest of the economy seems to have been fairly limited.



There is also the fact that markets have been extremely strong for quite some
time and it would not be surprising if there were to be a pullback in the not
too distant future.  But, given our cautiously optimistic view of the economic
outlook, any short term periods of market weakness should provide our manager
with some attractive opportunities for careful stockpicking.  I look forward to
updating you on our progress with our full year results.

                                    - MORE -


                                                                    Page 3 of 10



                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results

                    for the half year ended 31 December 2006





Consolidated Income Statement
for the half year ended 31 December 2006


                                Half year ended                  Half year ended                     Year ended
                               31 December 2006                 31 December 2005                   30 June 2006
                                  (unaudited)                      (unaudited)                       (audited)
                           Revenue    Capital               Revenue    Capital               Revenue    Capital
                            Return     Return      Total     Return     Return      Total     Return   Return     Total
                             £'000      £'000      £'000      £'000      £'000      £'000      £'000    £'000     £'000

Investment income              617          -        617        306          -        306      5,007        -     5,007
Other income                    26          -         26         42          -         42         95        -        95
Gains on investments held
at fair
value through profit or          -     54,026     54,026          -     66,689     66,689          -   101,951  101,951
loss
                        ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- --------
Total income                   643     54,026     54,669        348     66,689     67,037      5,102   101,951  107,053
                        ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- --------

Expenses
Management fees (note 2)     (222)    (4,237)    (4,459)      (196)    (6,366)    (6,562)      (422)    (7,215) (7,637)
Other expenses               (299)          -      (299)      (315)          -      (315)      (604)          -   (604)
                            ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----
Profit/(loss) before
finance costs
and taxation                   122     49,789     49,911      (163)     60,323     60,160      4,076     94,736  98,812

Finance costs                 (43)      (172)      (215)       (16)       (65)       (81)       (46)      (184)   (230)
                            ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----
Profit/(loss) before            79     49,617     49,696      (179)     60,258     60,079      4,030     94,552  98,582
taxation

Taxation                      (65)      (146)      (211)       (39)          -       (39)    (1,218)        646   (572)
                            ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----
Profit/(loss) for the           14     49,471     49,485      (218)     60,258     60,040      2,812     95,198  98,010
period
                            =========  =======    =======    =======    =======    =======    =======    ======= =======

Earnings per ordinary share
(note 3)                     0.02p     56.64p     56.66p    (0.24)p     65.32p     65.08p      3.10p    104.82p  107.92p
                            =========  =======    =======    =======    =======    =======    =======    ======= =======


The total column of this statement represents the Consolidated Income Statement,
prepared in accordance with IFRS. The revenue return and capital return columns
are supplementary to this and are prepared under guidance published by the
Association of Investment Companies.



All items in the above statement derive from continuing operations.



All income is attributable to the equity holders of TR European Growth Trust
PLC, the parent company. There are no minority interests.


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                                                                    Page 4 of 10

                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results
                    for the half year ended 31 December 2006





Statement of Changes in Equity

for the half year ended 31 December 2006




                                 Called up                    Capital          Other
                                     Share                 Redemption
Half year ended                                   Share       Reserve        Capital       Revenue
                                   Capital                                                 Reserve
31 December 2006                                Premium                     Reserves                        Total
(unaudited)                          £'000        £'000         £'000          £'000         £'000          £'000

Balance at 30 June 2006             10,953      115,451         9,225        214,903        14,902        365,434
Buy-backs of
ordinary shares                      (125)            -           125        (3,995)             -        (3,995)
Net profit for the period                -            -             -         49,471            14         49,485
Ordinary dividend paid                   -            -             -              -       (2,275)        (2,275)
                                ----------   ----------    ----------    -----------     ---------    -----------
Balance at 31
December 2006                      10,828      115,451          9,350        260,379        12,641        408,649
                                =========    ==========    ===========    ===========    ==========   ===========


                                 Called up                    Capital          Other
                                     Share                 Redemption
Half year ended                                   Share       Reserve        Capital       Revenue
                                   Capital                                                 Reserve
31 December 2005                                Premium                     Reserves                        Total
(unaudited)                          £'000        £'000         £'000          £'000         £'000          £'000

Balance at 30 June 2005             11,847      115,451         8,331        143,445        15,791        294,865
Buy-backs of
ordinary shares                      (596)            -           596       (14,737)             -       (14,737)
Net profit/(loss) for
the period                               -            -             -         60,258         (218)         60,040
Tender offer costs                       -            -             -            (9)             -            (9)
Ordinary dividend paid                   -            -             -              -       (3,701)        (3,701)
                              ------------ ------------  ------------   ------------  ------------  -------------
Balance at 31
December 2005                       11,251      115,451         8,927        188,957        11,872        336,458
                                   =======      =======       =======        =======       =======        =======



                                 Called up                    Capital          Other
                                     Share                 Redemption
Year ended                                        Share       Reserve        Capital       Revenue
                                   Capital                                                 Reserve
30 June 2006                                    Premium                     Reserves                        Total
(audited)                            £'000        £'000         £'000          £'000         £'000          £'000

Balance at 30 June 2005             11,847      115,451         8,331        143,445        15,791        294,865
Buy-backs of
ordinary shares                      (894)            -           894       (23,731)             -       (23,731)
Net profit for the year                  -            -             -         95,198         2,812         98,010
Tender offer costs                       -            -             -            (9)             -            (9)
Ordinary dividend paid                   -            -             -              -       (3,701)        (3,701)
                              ------------ ------------  ------------  -------------  ------------   ------------
Balance at 30 June 2006             10,953      115,451         9,225        214,903        14,902        365,434
                                   =======      =======       =======        =======       =======        =======


                                    - MORE -


                                                                    Page 5 of 10

                          TR EUROPEAN GROWTH TRUST PLC



                           Unaudited Interim Results

                    for the half year ended 31 December 2006



Consolidated Balance Sheets
at 31 December 2006


                                                    31 December 2006      31 December 2005        30 June 2006
                                                          (unaudited)           (unaudited)           (audited)
                                                               £'000                 £'000
                                                                                                         £'000

Non-current assets
Investments held at fair value
   through profit or loss                                    434,245               347,254             368,226
                                                         -----------           -----------         -----------
Current assets
Sales for future settlement                                      333                   452                 563
Taxation recoverable                                             225                    88                 314
Prepayments and accrued income                                   378                   122                 101
Cash and cash equivalents                                        292                 4,383               6,945
                                                         -----------           -----------         -----------
                                                               1,228                 5,045               7,923
                                                         -----------           -----------         -----------

Total assets                                                 435,473               352,299             376,149
                                                         -----------           -----------         -----------
Current liabilities
Purchases for future settlement                                   74                   116               3,418
Accruals                                                       4,766                 6,400               6,348
Amounts due on repurchase of shares                               84                     -                 901
Bank loans and overdrafts                                     21,900                 9,325                  48
                                                         -----------           -----------         -----------
                                                              26,824                15,841              10,715
                                                         -----------           -----------         -----------

Net assets                                                   408,649               336,458             365,434
                                                             =======               =======             =======

Equity attributable to equity shareholders
Called up share capital                                       10,828                11,251              10,953
Share premium                                                115,451               115,451             115,451
Capital redemption reserve                                     9,350                 8,927               9,225
Retained earnings:
   Other capital reserves                                    260,379               188,957             214,903
   Revenue reserve                                            12,641                11,872              14,902
                                                         -----------           -----------         -----------
Total equity                                                 408,649               336,458             365,434
                                                             =======               =======             =======

Net asset value per ordinary
share (note 5)                                               471.74p               373.83p             417.04p
                                                             =======               =======             =======


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                                                                    Page 6 of 10

                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results
                    for the half year ended 31 December 2006



Consolidated Cash Flow Statement
for the half year ended 31 December 2006


                                                    Half year ended     Half year ended
                                                   31 December 2006    31 December 2005         Year ended
                                                        (unaudited)         (unaudited)       30 June 2006
                                                                                                 (audited)
                                                              £'000               £'000              £'000
Net cash (outflow)/inflow from
   operating activities (note 6)                           (21,754)              17,600             37,576
                                                         ----------          ----------          ---------
Net cash (outflow)/inflow before
   use of financing                                        (21,754)              17,600             37,576
Net cash inflow/(outflow) from
   financing activities                                      14,823            (14,629)           (32,182)
                                                         ----------         -----------        -----------
Net (decrease)/increase in cash
   and cash equivalents                                     (6,931)               2,971              5,394
Cash and cash equivalents at the
   start of the period                                        6,897               1,689              1,689
Realised profit/(loss) on foreign currency                      326               (277)              (186)
                                                       ------------        ------------        -----------
Cash and cash equivalents at the
   period end                                                   292               4,383              6,897
                                                            =======             =======             ======

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                                                                    Page 7 of 10

                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results
                    for the half year ended 31 December 2006



Notes



1.    Accounting policies



(a)        Basis of preparation

The consolidated financial information for the half year ended 31 December 2006
has been prepared in accordance with International Financial Reporting Standards
('IFRS').  These comprise standards and interpretations approved by the
International Accounting Standards Board ('IASB'), together with interpretations
of the International Accounting Standards and Standing Interpretations Committee
approved by the International Accounting Standards Committee ('IASC') that
remain in effect, to the extent that IFRS have been adopted by the European
Union.



   The accounts have been prepared on the historical cost basis, except
for the revaluation of certain financial instruments.  Where presentational
guidance set out in the Statement of Recommended Practice ('the revised SORP')
for investment trusts issued by the Association of Investment Companies ('the
AIC') in December 2005 is consistent with the requirements of IFRS, the
directors have sought to prepare the financial statements on a basis consistent
with the recommendations of the SORP.



(b)       Basis of consolidation

   The Group accounts consolidate the accounts of the Company and of
its wholly owned subsidiary undertaking, TREG Finance Limited.



2.   Management fee and performance fee


                           Half year ended                 Half year ended                   Year ended
                           31 December 2006                31 December 2005                 30 June 2006
                             (unaudited)                     (unaudited)                      (audited)
                        Revenue   Capital     Total     Revenue   Capital    Total     Revenue   Capital     Total
                          £'000     £'000     £'000       £'000     £'000    £'000       £'000     £'000     £'000

Performance fee
provision/paid                -     2,970     2,970           -     4,830    4,830           -     4,866     4,866
Management fee              195       781       976         169       678      847         368     1,468     1,836
Irrecoverable
VAT thereon                  27       486       513          27       858      885          54       881       935
                        -------   -------   -------     -------   -------  -------     -------   -------  --------
                            222     4,237     4,459         196     6,366    6,562         422     7,215     7,637
                           ====      ====      ====        ====      ====     ====        ====      ====     =====



For the half year ended 31 December 2006 and half year ended 31 December 2005 a
performance fee has been accrued on a full year effect of rewarding the Manager,
under the terms of the Management Agreement, for outperformance achieved so far
during the respective performance fee period.  The actual fee payable to the
Manager for the year ended 30 June 2007 will depend on the outperformance over
the three years to 30 June 2007.  The performance fee is set at 15% of the
outperformance, subject to the total management fee and performance fee not
exceeding 2.4% of the income inclusive net asset value of the Company as at
close of business on the last day of the accounting period ending 30 June 2007.



                                    - MORE -


                                                                    Page 8 of 10

                          TR EUROPEAN GROWTH TRUST PLC



                           Unaudited Interim Results
                    for the half year ended 31 December 2006



Notes (continued)



3.   Earnings per ordinary share

The earnings per ordinary share figure is based on the profit for the half year
of £49,485,000 (half year ended 31 December 2005: £60,040,000; year ended 30
June 2006: £98,010,000) and on 87,339,154 (half year ended 31 December 2005:
92,252,478; year ended 30 June 2006: 90,818,115) ordinary shares, being the
weighted average number of ordinary shares in issue during the period.



The return per ordinary share detailed above can be further analysed between
revenue and capital, as below.


                                          31 December 2006            31 December                30 June
                                                                             2005                   2006
                                               (unaudited)             (unaudited)              (audited)
                                                     £'000                  £'000                  £'000
Net revenue profit/(loss)                               14                  (218)                  2,812
Net capital profit                                  49,471                 60,258                 95,198
                                                ----------             ----------             ----------
Net total profit                                    49,485                 60,040                 98,010
                                                    ======                 ======                 ======
Weighted average number of ordinary
shares in issue during the period               87,339,154             92,252,478             90,818,115

                                                     Pence                  Pence                  Pence
Revenue return per ordinary share                     0.02                 (0.24)                   3.10
Capital return per ordinary share                    56.64                  65.32                 104.82
                                                ----------             ----------             ----------
Total earnings per ordinary share                    56.66                  65.08                 107.92
                                                    ======                 ======                 ======



4.         Ordinary share capital

At 31 December 2006 there were 86,625,355 ordinary shares in issue (31 December
2005: 90,002,555; 30 June 2006: 87,625,355).  During the half year ended 31
December 2006 the Company bought 1,000,000 of its own issued ordinary shares in
the market for cancellation (31 December 2005: 4,770,590; 30 June 2006:
7,147,790).  The cost of the share buy-backs, including stamp duty, amounted to
£3,995,000 (31 December 2005: £14,737,000; 30 June 2006: £23,731,000).



5.         Net asset value per ordinary share

The net asset value per ordinary share is based on the net assets attributable
to equity shareholders of £408,649,000 (31 December 2005: £336,458,000; 30 June
2006: £365,434,000) and on 86,625,355 (31 December 2005: 90,002,555; 30 June
2006: 87,625,355) ordinary shares, being the number of ordinary shares in issue
at the period end.


                                    - MORE -


                                                                    Page 9 of 10

                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results
                    for the half year ended 31 December 2006



Notes (continued)



6.   Reconciliation of profit before taxation to net cash (outflow)/inflow from
operating activities


                                                    Half year ended       Half year ended          Year ended
                                                        31 December           31 December             30 June
                                                               2006                  2005                2006
                                                        (unaudited)           (unaudited)           (audited)
                                                              £'000                 £'000               £'000

Profit before taxation                                       49,696                60,079              98,582
Gains on investments held at fair value                    (54,026)              (66,689)           (101,951)
(Increase)/decrease in accrued income                         (152)                    47                  62
Increase in other debtors                                     (124)                     -                   -
Decrease in accruals                                        (1,582)                 (676)               (614)
Taxation on overseas investment income                          114                   124               (635)
Decrease/(increase) in sales settlement debtor                  230                 (299)               (410)
Decrease in purchases settlement creditor                   (3,344)               (5,881)             (2,579)
Net sales of investments                                   (12,566)                30,895              45,121
                                                        -----------            ----------          ----------
                                                           (21,754)                17,600              37,576
                                                             ======                ======              ======



7.   Interim dividend

The Company has not declared an interim dividend (2005: nil).



8.   Transaction costs

Purchase transaction costs for the half year ended 31 December 2006 were £63,000
(half year ended 31 December 2005: £164,000; year ended 30 June 2006: £211,000).
  These comprise mainly stamp duty and commission. Sales transaction costs for
the half year ended 31 December 2006 were £143,000 (half year ended 31 December
2005: £294,000; year ended 30 June 2006: £541,000).



9.   Comparative information

The financial information contained in this interim report does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985. The
financial information for the half year ended 31 December 2006 and 2005 has not
been audited. The information for the year ended 30 June 2006 has been extracted
from the latest published audited financial statements. The audited financial
statements for the year ended 30 June 2006 have been filed with the Registrar of
Companies. The report of the auditors on those accounts contained no
qualification or statement under section 237(2) or (3) of the Companies Act
1985.


                                   -  MORE  -






                                                                   Page 10 of 10

                          TR EUROPEAN GROWTH TRUST PLC



                           Unaudited Interim Results
                    for the half year ended 31 December 2006



Thirty Largest Investments

Market Value at 31 December 2006


Stock                            Activity                                                                 £'000
Azimut                           Investment manager                                                      17,176
Lundin Mining                    Base metals mining                                                      13,145
Pfleiderer                       Engineered wood products                                                11,403
Seadrill                         Offshore drilling and well services                                     11,201
Wavin                            Europe's leading supplier of plastic piping                             10,969
TradeDoubler                     Online marketing and sales                                              10,662
Rhodia                           Speciality chemicals                                                    10,632
Parmalat                         Dairy products                                                           9,728
OMV                              Oil and gas                                                              9,570
Tanganyika Oil                   Oil and gas                                                              7,583
Heijmans                         Broadly based construction company                                       7,579
Thielert                         Diesel aircraft engines and engineering services                         7,277
auFeminin.com                    Europe's number 1 women's internet portal                                7,234
Bauer                            Construction                                                             7,214
Coca-Cola Hellenic Bottling      Soft drinks bottler                                                      6,980
NDS                              Conditional access software                                              6,758
Sjaelso Gruppen                  Property developer                                                       6,670
Selcuk Ecza Deposu               Pharmaceutical wholesaler                                                6,547
Babis Vovos International        Property developer                                                       6,359
Fugro                            Geological services                                                      6,341
Urals Energy                     Oil and gas exploration and production in Russia                         6,198
Regal Petroleum                  Oil and gas                                                              6,085
Hi-Media                         The French leader in interactive marketing                               5,915
Poweo                            Electricity supplier                                                     5,679
Andritz                          Industrial process solutions                                             5,646
Ballast Nedam                    Construction and civil engineering                                       5,560
Schoeller-Bleckmann              Seamless stainless steel tubes                                           5,492
Uniross                          Rechargeable batteries and chargers                                      5,488
Geberit                          Plumbing and plastics technologies                                       5,482
Washtec                          Car washing equipment                                                    5,414



These investments total £237,987,000 or 54.8% of the portfolio.

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



                                    - ENDS -



For further information please contact:



Stephen Peak, Fund Manager

TR European Growth Trust PLC, Telephone: 020 7818 4334



James de Sausmarez, Head of Investment Trusts

Henderson Global Investors, Telephone: 020 7818 3349



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