Final Results

Schroder UK Growth Fund PLC
29 June 2006


                                                                    29 June 2006


                              SCHRODER UK GROWTH FUND PLC
               PRELIMINARY RESULTS FOR THE YEAR ENDED 30 APRIL 2006


The Directors of Schroder UK Growth Fund plc announce the unaudited preliminary
results of the Company for the year ended 30 April 2006:


Income Statement
                                               Year ended                            Year ended
                                             30 April  2006                        30 April  2005
                                                                                     (Restated)
                                       Revenue     Capital      Total       Revenue      Capital         Total
                                         £'000       £'000      £'000         £'000        £'000         £'000
     Gains on investments held at            -      51,717     51,717             -        8,141         8,141
     fair value
     Income                              6,581           -      6,581         6,283            -         6,283
     Investment management fee           (303)       (708)    (1,011)         (253)        (592)         (845)
     Performance fee accrual write           -           -          -             -          120           120
     back
     Administrative expenses             (355)           -      (355)         (363)            -         (363)
     Net return before finance           5,923      51,009     56,932         5,667        7,669        13,336
     costs and taxation
     Interest payable                    (384)       (896)    (1,280)         (357)        (832)       (1,189)
     Net return on ordinary              5,539      50,113     55,652         5,310        6,837        12,147
     activities before taxation
     Taxation on ordinary                    -           -          -             -            -             -
     activities
     Net return on ordinary              5,539      50,113     55,652         5,310        6,837        12,147
     activities after taxation
     attributable to equity
     shareholders
     Net return per ordinary share       3.36p      30.44p     33.80p         3.20p        4.12p         7.32p


The total column of this statement is the profit and loss account of the
Company. The revenue return and capital return columns are both provided in
accordance with guidance issued by the Association of Investment Trust
Companies. The Company has no recognised gains or losses other than those
disclosed in the Income Statement and Reconciliation of Movements in
Shareholders' Funds. Accordingly no Statement of Total Recognised Gains or
Losses is presented.

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



Reconciliation of Movements in Shareholders' Funds

                          Share       Capital       Share       Share     Warrant   Capital     Revenue     Total
                        capital    redemption     premium    purchase    exercise   reserve     reserve
                                      reserve     account     reserve     reserve
                          £'000         £'000       £'000       £'000       £'000     £'000       £'000     £'000
Balance at 30 April      42,011        15,258         944      98,869         417    14,158       1,288   172,945
2004 - previously
reported
Valuation adjustment          -             -           -           -           -     (181)           -     (181)
Dividends - second            -             -           -           -           -         -       2,521     2,521
interim dividend
accrued in respect
of  the year ended
30 April 2004
Balance at 30 April      42,011        15,258         944      98,869         417    13,977       3,809   175,285
2004 - restated

Balance at 30 April      42,011        15,258         944      98,869         417    13,977       3,809   175,285
2004 - restated
Net profit from               -             -           -           -           -     6,837       5,310    12,147
operating activities
after taxation

Share buyback             (850)           850           -     (3,142)           -         -           -   (3,142)
Dividends - second            -             -           -           -           -         -     (2,512)   (2,512)
interim dividend
paid in respect of
year ended 30 April
2004
Dividends - first             -             -           -           -           -         -     (2,483)   (2,483)
interim dividend
paid in respect of
the  year ended 30
April 2005
Balance at 30 April      41,161        16,108         944      95,727         417    20,814       4,124   179,295
2005 - restated

Balance at 30 April      41,161        16,108         944      95,727         417    20,814       4,124   179,295
2005 - restated
Net profit from               -             -           -           -           -    50,113       5,539    55,652
operating activities
after taxation
Share buy back            (125)           125           -       (629)           -         -           -     (629)
Dividends - second            -             -           -           -           -         -     (2,717)   (2,717)
interim paid  in
respect of  the year
ended 30 April 2005
Dividends - first             -             -           -           -           -         -     (2,470)   (2,470)
interim paid in
respect of year
ended 30 April 2006
Balance at 30 April      41,036        16,233         944      95,098         417    70,927       4,476   229,131
2006





                                                                        At 30 April 2006     At 30 April 2005
Balance Sheet                                                                                      (Restated)
Fixed assets                                                                       £'000                £'000
Investments held at fair value through profit or loss                            255,929              201,173
Current assets
Debtors                                                                            1,729                2,233
Cash at bank                                                                         199                1,480
                                                                                   1,928                3,713
Creditors: amounts falling due within one year                                  (28,726)             (25,591)
Net current liabilities                                                         (26,798)             (21,878)
Net assets attributable to shareholders                                          229,131              179,295

Capital and reserves
Called-up share capital                                                           41,036               41,161
Capital redemption reserve                                                        16,233               16,108
Share premium account                                                                944                  944
Share purchase reserve                                                            95,098               95,727
Warrant exercise reserve                                                             417                  417
Capital reserve                                                                   70,927               20,814
Revenue reserve                                                                    4,476                4,124
Total equity shareholders' funds                                                 229,131              179,295
Net asset value per ordinary share                                               139.59p              108.90p






Abridged Cash Flow Statement                                                Year ended          Year ended
                                                                         30 April 2006       30 April 2005
                                                                                 £'000               £'000

Net cash inflow from operating activities                                        5,775               5,005
Net cash outflow from returns on investments and servicing of                  (1,288)             (1,171)
finance
Net cash outflow from financial investment                                     (2,955)             (2,430)
Equity dividends paid                                                          (5,187)             (4,995)
Net cash inflow from financing                                                   2,374               1,722
Net cash outflow for the year                                                  (1,281)             (1,869)



Reconciliation of net cash flow to movement on net debt

                                                                            Year ended          Year ended
                                                                         30 April 2006       30 April 2005
                                                                                 £'000               £'000

Decrease in cash in the year                                                   (1,281)             (1,869)
Movement in bank loan to finance investments                                   (3,000)             (5,000)
Change in net debt resulting from cash flows                                   (4,281)             (6,869)
Net debt brought forward                                                      (23,520)            (16,651)
Net debt carried forward                                                      (27,801)            (23,520)

Notes

a)       Basis of  preparation

These accounts have been prepared under the historical cost convention, modified
to include the revaluation of investments and in accordance with the Companies
Act 1985 and Generally Accepted Accounting Principles (UK GAAP) issued by the
Accounting Standards Board (ASB) and the Statement of Recommended Practice '
Financial Statement of Investment Trust Companies ('SORP') issued in January
2003 and revised in December 2005.  The ASB has implemented a convergence
programme with International Financial  Reporting Standards and as part of this
project has introduced a number of new and revised Accounting Standards which
have been adopted in these accounts and for which details are given below:-



Changes in presentation



The Statement of Total Return is now called the Income Statement. Dividends
payable to equity shareholders are no longer reflected in the Income statement,
although they continue to be shown in the Reconciliation of Movements in
Shareholders' Funds (as required by FRS25 (Financial Instruments: Disclosure and
Presentation)) which is now presented as a primary statement.



Changes in accounting policy



The Company has changed its accounting policy for the valuation of listed
investments and the recognition of dividends payable to equity shareholders.



FRS 26 (Financial instruments: Measurement) - The Company has designated its
assets and liabilities as being measured at 'fair value through profit or loss'
The fair value of listed investments is deemed to be the bid value of those
investments at the close of business on the relevant date. Previously, listed
investments were valued at mid value. Unlisted investments are included at fair
value.



Changes in the fair value of investments held at fair value through profit or
loss and gains and losses on disposal are recognised in the Income Statement as
'Gains or losses on investments held at fair value through profit or loss.'
Transaction costs in relation to the purchase or sale of investments, including
the difference between the purchase price of an investment and its bid price at
the date of purchase are also included here.

FRS 23 (The effects of changes in Foreign Exchange Rates) - This is a UK
domiciled company with a predominantly UK shareholder base. The company's
assets, liabilities, income and expenditure are mainly denominated in sterling
and therefore the functional and presentational currency of this Company is
deemed to be sterling and the accounts presented accordingly.

FRS 21 (Events after the Balance Sheet Date) - Dividends paid by the Company are
recognised in the Reconciliation of Movements in Shareholders' Funds in the
period in which the Company is liable to pay them. Previously the Company
accrued dividends in the period in which the net revenue, to which those
dividends related was accounted for.



The accounts for year ended 30 April 2005 have been restated to reflect these
changes and had the following effects:-

The change in valuing the listed portfolio from using mid-market prices to bid
prices reduced opening net assets at 30 April 2005 by £181,000.

The opening revenue reserve for 30 April 2005 increased by £2,521,000 - the
second interim dividend paid in respect of the year ended 30 April 2004.

Other than the matters noted above the same accounting policies used for the
year ended 30 April 2005 have been applied in preparing the accounts for the
year ended 30 April 2006.

b)       Return per ordinary share

The basic revenue return per ordinary share is based on the net return on
ordinary activities after interest payable and taxation of £5,539,000 (2005:
£5,310,000) and on 164,640,421 (2005: 166,000,147) ordinary shares, being the
weighted average number of shares in issue in the year.

The basic capital return per ordinary share is based on the net return on
ordinary activities after interest payable and taxation of £50,113,000 (2005:
£6,837,000) and on 164,640,421 (2005: 166,000,147) ordinary shares, being the
weighted average number of shares in issue in the year.

The basic total return per ordinary share is based on the net return on ordinary
activities after interest payable and taxation of £55,652,000 (2005:
£12,147,000) and on 164,640,421 (2005: 166,000,147) ordinary shares, being the
weighted average number of shares in issue in the year.

c)       Net asset value per ordinary share

Net asset value per ordinary share is based on 164,145,900 (2005: 164,645,900)
ordinary shares in issue.

This announcement is prepared on the basis of the accounting policies as set out
in the most recent published set of annual financial statements as amended   for
the adoption of new Accounting Standards.

The above financial information is unaudited and does not constitute statutory
accounts under Section 240 of the Companies Act 1985 (as amended). Statutory
accounts for the financial year ended 30 April 2005 have been reported on by the
Company's auditors and delivered to the Registrar of Companies.  The report of
the auditors was unqualified and did not contain a statement under Section 237
(2) or (3) of the Companies Act 1985.

The statutory accounts for the year ended 30 April 2006 will be finalised on the
basis of the financial information presented by the Directors in this
preliminary announcement and will be delivered to the Registrar of Companies
following the Company's Annual General Meeting.

This statement was approved by the Board of Directors on 28 June 2006.



CHAIRMAN'S STATEMENT



Performance



I am pleased to report a strong rise in net assets over the course of the past
year. It has been a particularly good period for all world stock markets, and
during it the UK market reached its highest level in five years. For the year
ended 30 April 2006, the Company's net asset value produced a total return of
31.7% while the share price posted a total return of 34.8%. These compare with a
return of 32.4% for the FTSE All-Share Index calculated on the same basis.



Earnings and Dividends



Earnings per share increased in the current year from 3.20p per share to 3.36p
per share. The Directors are pleased to declare a second interim dividend of
1.85p per share, making a total of 3.35p per share for the year as a whole - an
increase of 6.4% on the previous year.



Gearing Policy



Of the Company's £30m borrowing facility, £25m was drawn down at the start of
the year and this rose to £28m at the end, as additional borrowings were drawn
down in line with the rise in the Company's assets. The facility is now fully
drawn. The net gearing level (which takes account not only of the borrowings but
any cash held by the investment manager) at the beginning of the year was 13.1%
and had decreased to 12.1% by the end of the year as the net assets of the
Company increased.



The Company's gearing continues to operate within pre-agreed limits so that
actual gearing does not represent more than 20% of shareholders' funds.



Discount Protection



During the year ended 30 April 2006, the Board continued to operate its share
buy-back facility and a total of 500,000 ordinary shares were purchased for
cancellation, equal to 0.3 per cent. of the shares in issue on 1 May 2005. These
purchases had the effect of enhancing net asset value at the time of the various
purchases by approximately £67,000.



Your Directors are proposing at the Annual General Meeting that the Company
renew and expand its existing authorities and be granted the authority to hold
repurchased shares in treasury for subsequent reissue.  The proposed authority
would permit up to 10 per cent. of the share capital (including shares held in
treasury) to be issued without being first offered to existing shareholders, an
increase from the 5 per cent. limit that has been granted until now.  A number
of minor technical changes to the Articles, designed to facilitate the proposed
use of treasury shares, will also be proposed.



The Board's intention is that shares to be held in treasury may be re-issued at
any time and at whatever discount the prevailing market price represents to the
prevailing net asset value per share. However, no share held in treasury will be
issued at a discount that is wider than the discount prevailing at the time of
its acquisition and any shares held in treasury for 12 months will be cancelled
and so not reissued.



We believe that this proposal, if approved by shareholders, would enable the
Company to better control the volatility of the discount of the share price to
net asset value and would provide additional liquidity in the market.



Outlook



In the weeks following the close of our financial year, we have seen a setback
in all world stock markets, and this uncertainty may persist for some time.
Nevertheless, our Manager remains optimistic on the prospects for the market,
encouraged by continuing economic growth and on-going profits improvements in
the companies in which we are invested.



Annual General Meeting



The Annual General Meeting will be held at 12.00 noon on Wednesday 2 August
2006, and shareholders are encouraged to attend. I hope as many of you as
possible will be able to come along. The meeting, as in previous years, will
include a presentation by the Investment Manager on the prospects for the UK
market and the Company's investment strategy.



Alan Clifton

Chairman





Second Interim Dividend



The Directors of the Company have declared the payment of a second interim
dividend, in lieu of a final dividend, of 1.85p net per share, making a total
distribution of 3.35p for the year ended 30 April 2006.  The second interim
dividend will be payable on 31 July 2006 to shareholders on the register on 7
July 2006.


Ex-Dividend Date            : 5 July 2006

Record Date                 : 5.00 p.m. on 7 July 2006

Dividend Warrants           : Despatched on 28 July 2006

Payment Date                : 31 July 2006

Dividend per share          : 1.85p net



The Annual Report and Accounts will be mailed to shareholders at their
registered addresses in July 2006 and copies of the Annual Report and Accounts
will be available to the public at the Company's registered office: 31 Gresham
Street, London, EC2V 7QA.



Enquiries:

John Spedding
Schroder Investment Management Limited
(020 7658 3206)
29 June 2006


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