Interim Results

British Empire Sec & Gen Tst PLC
04 May 2005

BRITISH EMPIRE SECURITIES AND GENERAL TRUST plc
INTERIM ANNOUNCEMENT OF UNAUDITED HALF YEAR RESULTS
for the six months ended 31 March 2005

Chairman's Statement

I am pleased to report that your Company has continued to perform well in the
first half of the year with Net Asset Value up by 17.5% against a rise of 10.5%
in our benchmark index (total return basis).

Your Board considers that this continuing out-performance has contributed to the
elimination of the discount on our shares and indeed we have been trading at a
small premium over recent months. However, we believe that many of the assets in
which we are invested are themselves trading at a discount to their underlying
worth representing an unrealised (if somewhat reduced) store of value for our
shareholders. We would, however, caution shareholders that there will be times
when our investment style does not suit the mood of the market and that
continuing out-performance should not be assumed.

As you will see from our Manager's Report market volatility over the past few
months has made us more cautious, with significantly higher levels of liquidity
being held while we wait for new investment opportunities to emerge.

Over the past few years the disparity between our interim and final dividends
has become progressively wider. Consequently, the Board has decided that subject
to current trading conditions it will seek to pay interim dividends of around
35% of the previous year's total ordinary dividends. As a result we are
increasing the interim dividend this year from 0.4p per share to 0.6p per share.
We shall make our recommendation on the full year's dividend to shareholders in
the light of the annual results and trading conditions at the time.

Iain Samuel Robertson CBE

Chairman
4 May 2005



Investment Manager's Report

For the first six months of the financial year, the Company's net asset value
per share rose 17.5% compared with rises of 10.5% for the Datastream Global
Growth Investment Trust Index, 5.5% for the MSCI World Index (£) and 9.9% for
the FTSE All Share Index* (all figures on a total return basis).

Over the five year period to 31 March 2005, the Company is top of its peer group
of 28 global growth trusts, the net asset value per share rising 69% compared to
a decline of 5% for the weighted sector average*.

The largest contributors to our +17.5% NAV (total return) performance during the
reporting period were Hansa Trust 'A' and Ords +1.9%, Jardine Strategic Holdings
+1.8%, Eurazeo +1.3%, Wendel Investissement +1.0%, EnCana Corp +0.8%, CNP +0.8%,
Fording Canadian Coal Trust +0.6%, Macarthur Coal +0.5%, The European Asset
Value Fund +0.5% and Ackermans & van Haaren +0.5%.

There were no individual stocks contributing losses of more than 0.5% to the
NAV.

As at 31 March 2005, the geographical profile on a 'look-through' basis was as
follows: Continental Europe 27.9%, UK 18.5%, Japan 12.5%, Asia Pacific 12.2%,
Eastern Europe, Middle East and Africa 7.2%, North America 4.3% and liquidity
17.4%.

Accommodative monetary conditions helped the equity markets to another positive
six months performance. Policies designed by monetary authorities to promote
economic growth and full employment have a way of seeping into asset prices.
There have recently been signs of excessive risk taking in financial markets,
including the corporate bond market where spreads over Treasuries became
unreasonably tight. A profit warning by General Motors in March served as a
reminder of the risks and corporate bond markets suffered a subsequent sell-off.
A similar scenario could play out in the equity markets where stocks, and
valuations, have been rising since March 2003.

Over the years, we have found that discounts on holding companies and investment
trusts are a good indicator of the general level of risk aversion amongst
investors. On this basis, investors in the investment trust market appear to be
in bullish form. The average discount has fallen to an all-time low of 9%.
Improved corporate governance may explain part of the reduction in discount but
the result is a much less favourable risk/reward balance in the sector. As a
result, we have reduced our exposure to the investment trust sector.

Investment holding companies have also benefited from more transparency,
improving corporate governance and increased investor interest. Discounts there
tell a similar story to those of investment trusts. However, we believe there is
better upside in investment holding companies in comparison to investment
trusts, based on wider discounts and more scope for adding value through
re-organisations.

Emerging Markets and Commodities both have good long-term fundamentals. In the
near term, however, valuations have increased and so have the risks of a
correction.

Our strategy has always been to try to tilt the odds in our favour by buying
stocks that seemed to us unjustifiably cheap and then to have the patience to
wait until the value is recognised. This is becoming harder to do as there is
less value on offer in equity markets. Furthermore, rising interest rates and
higher commodity prices may put corporate profit margins and global GDP growth
under pressure. Our response has been to take profits where stocks have reached
levels that we consider to be fully valued. Cash and liquidity levels have been
allowed to rise as there is currently a lack of compelling opportunities for new
investments. We may now have to exercise some patience in waiting for values to
re-appear.

John Pennink
Asset Value Investors Limited
4 May 2005

* Sources: Fundamental Data, Thompson Financial Datastream, Cazenove, Bloomberg



Group Statement of Total Return (incorporating the revenue account)

                                       For the six months to         For the six months to               For the year to
                                               31 March 2005                 31 March 2004             30 September 2004
                                                 (unaudited)                   (unaudited)                     (audited)
                               Revenue    Capital      Total   Revenue   Capital     Total   Revenue   Capital     Total
                                 £'000      £'000      £'000     £'000     £'000     £'000     £'000     £'000     £'000

Gains on investments                 -     76,076     76,076         -    59,209    59,209         -    86,347    86,347
Realised exchange gains/             -         86         86         -     (535)     (535)         -     (630)     (630)
(losses)
Realised loss on buyback             -          -          -         -         -         -         -     (792)     (792)
103/8% Debenture Stock 2011
Losses on Index Stock                -      (542)      (542)               (452)     (452)         -     (767)     (767)
Income                           4,607          -      4,607     3,582         -     3,582     9,168         -     9,168
Investment management fee        (716)    (2,379)    (3,095)     (562)   (1,517)   (2,079)   (1,146)   (2,667)   (3,813)
(incl. irrecoverable VAT)
Other expenses                   (569)          -      (569)     (432)         -     (432)   (1,107)         -   (1,107)
(incl. irrecoverable VAT)

Net return before finance        3,322     73,241     76,563     2,588    56,705    59,293     6,915    81,491    88,406
costs and taxation
Finance costs                  (1,180)        (4)    (1,184)   (1,353)       (4)   (1,357)   (2,682)       (7)   (2,689)

Return on ordinary               2,142     73,237     75,379     1,235    56,701    57,936     4,233    81,484    85,717
activities before taxation
Taxation on ordinary             (363)        251      (112)        22         -        22     (582)       361     (221)
activities

Return attributable to           1,779     73,488     75,267     1,257    56,701    57,958     3,651    81,845    85,496
equity shareholders
Dividend in respect of           (961)          -      (961)     (640)         -     (640)   (2,721)         -   (2,721)
equity shares
Transfer to reserves               818     73,488     74,306       617    56,701    57,318       930    81,845    82,775

Return per Ordinary Share        1.11p     45.91p     47.02p     0.79p    35.42p    36.21p     2.28p    51.13p    53.41p

Basic



Group Balance Sheet
                                                                          As at               As at                As at
                                                                  31 March 2005       31 March 2004    30 September 2004
                                                                    (unaudited)         (unaudited)            (audited)
                                                                          £'000               £'000                £'000
Fixed assets
Investments - securities                                                529,292             432,296              461,541

Current assets
Investments held by dealing subsidiary                                        5                   7                    5
Debtors                                                                   6,632               9,636                4,651
Cash at bank and on deposit                                               5,063               4,537                   58
                                                                         11,700              14,180                4,714

Creditors: amounts falling due within one year                          (4,875)             (7,140)              (4,820)
Net current assets/(liabilities)                                          6,825               7,040                (106)

Total assets less current liabilities                                   536,117             439,336              461,435

Creditors: amounts falling due after more than one year                (30,710)            (33,628)             (30,334)
Provision for liabilities and charges                                         -                (64)                    -
Net assets                                                              505,407             405,644              431,101

Capital and reserve
Called-up share capital
Ordinary Shares                                                          16,008              16,008               16,008
Reserves
Capital redemption reserve                                                2,927               2,927                2,927
Share premium account                                                    28,078              28,078               28,078
Capital reserve - realised                                              297,980             236,287              246,363
- unrealised                                                            107,793              69,003               85,922
Merger reserve                                                           41,406              41,406               41,406
Revenue reserve                                                          11,215              11,935               10,397
Equity shareholders' funds                                              505,407             405,644              431,101
Net asset value per Share                                               315.72p             253.40p              269.30p
Number of Shares in issue                                           160,080,089         160,080,089          160,080,089



Summarised Group Statement of Cash Flows
                                                                 Six months to       Six months to               Year to
                                                                 31 March 2005       31 March 2004     30 September 2004
                                                                   (unaudited)         (unaudited)             (audited)
                                                                         £'000               £'000                 £'000

Net cash inflow from operating activities                                  268               1,149                 4,548
Servicing of finance                                                   (1,161)             (1,337)               (2,774)
Taxation                                                                    85                 176                   368
Capital expenditure and financial investment                             7,978               4,710                 4,346
Equity dividends paid                                                  (2,081)             (1,841)               (2,481)
Net cash inflow before financing                                         5,089               2,857                 4,007
Financing                                                                (169)               (165)               (4,478)
Increase/(decrease) in cash                                              4,920               2,692                 (471)

Reconciliation of net cash flow to movement in net debt
Increase/(decrease) in cash                                              4,920               2,692                 (471)
Buyback of Index Stock                                                     169                 165                   318
Buyback of 103/8% Debenture Stock 2011                                       -                   -                 4,160
Changes in net debt resulting from cash flows                            5,089               2,857                 4,007
Currency gains/(losses)                                                     86               (534)                 (630)
Other                                                                    (546)               (547)               (1,566)
Movement in net debt                                                     4,629               1,776                 1,811
Opening net debt                                                      (30,276)            (32,087)              (32,087)
Closing net debt                                                      (25,647)            (30,311)              (30,276)

Reconciliation of operating profit to net cash flow
from operating activities
Net return before finance costs and taxation                             3,322               2,588                 6,915
Performance fee charged to capital                                     (1,555)               (331)                 (337)
Management fee charged to capital                                        (692)               (466)                 (955)
Changes in working capital and other non-cash items                      (807)               (642)               (1,075)
Net cash inflow from operating activities                                  268               1,149                 4,548

Notes



 1. The unaudited results have been prepared on the basis of the accounting
    policies set out in the statutory accounts of the Group for the year ended
    30 September 2004.
 2. The results for the first six months should not be taken as a guide to the
    full year's results.
 3. Income from revenue sources comprises:
                                                            Six months to       Six months to               Year to
                                                            31 March 2005       31 March 2004     30 September 2004
                                                               (unaudited)         (unaudited)             (audited)
                                                                    £'000               £'000                 £'000
    Dividends                                                       2,105               2,666                 6,583
    Interest                                                        2,502                 915                 2,586
    Other income                                                        -                   1                   (1)
    Total                                                           4,607               3,582                 9,168


 4. During the period the Company bought back 80,000 units of Equities Index
    Unsecured Loan Stock 2013 for cancellation at a cost of £168,800.
 5. At 31 March 2005 the Company had 160,080,099 Ordinary Shares and 2,981,267
    units of Equities Index Unsecured Loan Stock 2013 in issue.
 6. The interim dividend of 0.60p per Ordinary Share will be paid on 10 June 2005
    to Ordinary Shareholders on the register at 20 May 2005 (ex-dividend 18 May
    2005).
 7. These are not full statutory accounts in terms of section 240 of the
    Companies Act 1985. The full audited accounts for the year to 30 September
    2004, which were unqualified, have been lodged with the Registrar of
    Companies.



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