Interim Results

Schroder UK Growth Fund PLC
22 December 2006


                                                                22 December 2006


                      Schroder UK Growth Fund plc

                       UNAUDITED INTERIM RESULTS

The Directors of Schroder UK Growth Fund plc announce the unaudited interim
results of the Company for the six months ended 31 October 2006:

Income Statement
                                            Six months ended                      Six months ended
                                            31 October  2006                      31 October  2005


                                       Revenue     Capital      Total       Revenue      Capital         Total
                                         £'000       £'000      £'000         £'000        £'000         £'000
     Gains on investments held at            -       3,372      3,372             -       18,209        18,209
     fair value
     Income                              4,187           -      4,187         2,705            -         2,705
     Investment management fee           (167)       (389)      (556)         (143)        (333)         (476)
     Administrative expenses             (167)        (21)      (188)         (159)            -         (159)
     Net return before finance           3,853       2,962      6,815         2,403       17,876        20,279
     costs and taxation
     Interest payable                    (227)       (530)      (757)         (190)        (443)         (633)
     Net return on ordinary              3,626       2,432      6,058         2,213       17,433        19,646
     activities before taxation
     Taxation on ordinary                    -           -          -             -            -             -
     activities
     Net return on ordinary              3,626       2,432      6,058         2,213       17,433        19,646
     activities after taxation
     attributable to equity
     shareholders
     Net return per ordinary share       2.22p       1.49p      3.71p         1.34p       10.59p        11.93p


The total column of this statement is the profit and loss account of the
Company. The revenue and capital return columns are both provided in accordance
with guidance issued by the Association of Investment 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      41,161        16,108         944      95,727         417    21,006       1,407   176,770
2005 - previously
reported
Valuation adjustment          -             -           -           -           -     (192)           -     (192)
Dividends - second            -             -           -           -           -         -       2,717     2,717
interim dividend
accrued 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
Net profit from               -             -           -           -           -    17,433       2,213    19,646
operating activities
Dividends - second            -             -           -           -           -         -     (2,717)   (2,717)
interim dividend
paid in respect of
the year ended 30
April 2005
Balance at 31            41,161        16,108         944      95,727         417    38,247       3,620   196,224
October 2005

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

Share buyback             (125)           125           -       (629)           -         -           -     (629)
Dividends - second            -             -           -           -           -         -     (2,717)   (2,717)
interim dividend
paid in respect of
year ended 30 April
2005
Dividends - first             -             -           -           -           -         -     (2,470)   (2,470)
interim dividend
paid in respect of
the  year ended 30
April 2006
Balance at 30 April      41,036        16,233         944      95,098         417    70,927       4,476   229,131
2006

Balance at 30 April      41,036        16,233         944      95,098         417    70,927       4,476   229,131
2006
Net profit from               -             -           -           -           -     2,432       3,626     6,058
operating activities
Share buy back            (243)           243           -     (1,133)           -         -           -   (1,133)
Dividends - second            -             -           -           -           -         -     (3,021)   (3,021)
interim paid  in
respect of  the year
ended 30 April 2006

Balance at 31            40,793        16,476         944      93,965         417    73,359       5,081   231,035
October 2006





                                                                      At 31 October 2006     At 30 April 2006
Balance Sheet

Fixed assets                                                                       £'000                £'000
Investments held at fair value through profit or loss                            251,814              255,929
Current assets
Debtors                                                                              669                1,729
Cash at bank                                                                      10,122                  199
                                                                                  10,791                1,928
Creditors: amounts falling due within one year                                  (31,570)             (28,726)
Net current liabilities                                                         (20,779)             (26,798)
Net assets attributable to shareholders                                          231,035              229,131

Capital and reserves
Called-up share capital                                                           40,793               41,036
Capital redemption reserve                                                        16,476               16,233
Share premium account                                                                944                  944
Share purchase reserve                                                            93,965               95,098
Warrant exercise reserve                                                             417                  417
Capital reserve                                                                   73,359               70,927
Revenue reserve                                                                    5,081                4,476
Total equity shareholders' funds                                                 231,035              229,131
Net asset value per ordinary share                                               141.59p              139.59p




Abridged Cash Flow Statement                                        For the six months  For the six months
                                                                      ended 31 October    ended 31 October
                                                                                  2006                2005
                                                                                 £'000               £'000

Net cash inflow from operating activities                                        4,861               3,964
Net cash outflow from returns on investments and servicing of                    (763)               (643)
finance
Net cash inflow/(outflow) from financial investment                              7,986               2,239
Equity dividends paid                                                          (3,021)             (2,717)
Net cash inflow from financing                                                     860                   -
Net cash inflow/(outflow) for the year                                           9,923               2,843

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 Practice (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 same accounting policies used for the
year ended 30 April 2006 have been applied.



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 £3,626,000 (2005:
£2,213,000) and on 163,396,987 (2005: 164,645,900) ordinary shares, being the
weighted average number of shares in issue in the period.

The basic capital return per ordinary share is based on the net return on
ordinary activities after interest payable and taxation of £2,432,000 (2005:
£17,433,000) and on 163,396,987 (2005: 164,645,900) ordinary shares, being the
weighted average number of shares in issue in the period.

The basic total return per ordinary share is based on the net return on ordinary
activities after interest payable and taxation of £6,058,000 (2005: £19,646,000)
and on 163,396,987 (2005: 164,645,900) ordinary shares, being the weighted
average number of shares in issue in the period.



c)        Net asset value per ordinary share

Net asset value per ordinary share is based on 163,175,900 (30 April 2006:
164,145,900) ordinary shares in issue.  The half yearly figures are
non-statutory accounts. The balance sheet and income statement for the year
ended 30 April 2006 are extracts from the latest published accounts. A copy of
the published accounts for that year has been delivered to the Registrar of
Companies. The report of the auditors on those accounts was unqualified and did
not contain a statement under section 237 (2) or (3) of the Companies Act 1985.



This statement was approved by the Board of Directors on 22 December 2006.



Chairman's Statement



Performance and Background



During the six-month period ended 31 October 2006, the Company's net asset value
produced a total return of 2.6%, and the share price produced a total return of
8.2%, compared with the FTSE All-Share Index, which recorded an equivalent
return of 3.7% over the same period. The share price total return during the
period was assisted by the re-rating of the Company's shares following the
announcement of the proposed change in investment policy and introduction of a
discount protection mechanism.







Change in Investment Policy



As laid out in the Circular to shareholders dated 23 October 2006 ('the Circular
'), an Extraordinary General Meeting was held on 17 November 2006 to consider
proposals for a change in investment policy. I am pleased to report that
shareholders voted overwhelmingly in favour of the change in investment policy
and the Manager has completed his initial restructuring of the portfolio
following approval from shareholders. Further details of the changes to the
portfolio may be found in the Investment Manager's Report.



Discount Protection Mechanism



In the Circular, I indicated that the Board intended to introduce a formal
discount management policy, to take effect once the change in investment policy
had been approved, under which the Company will seek to maintain the discount to
the net asset value at which shares are quoted on the London Stock Exchange at
no greater than 5 per cent over the long-term, subject to adverse market
conditions.



The Directors also sought authority to allow them to hold shares in treasury for
re-issue at or above the prevailing net asset value per share to assist with the
implementation of the discount protection mechanism. To date, the Directors have
utilised this authority on one occasion to purchase 3,250,000 shares, which are
now being held in treasury.



Dividends



The Directors have declared a first interim dividend of 1.50p per share for the
year ending 30 April 2007. This interim dividend will be payable on 31 January
2007 to shareholders on the register on 5 January 2007.



As indicated in the Circular income from investee companies may be somewhat more
volatile in future. Whilst shareholders should not make any assumptions about
the level of the second interim dividend, the Directors would be disappointed if
total dividends in respect of the current year did not at least match those paid
in respect of last year.



Alan Clifton

Chairman



Investment Manager's Review



Performance



During the six months to 31 October 2006 the Company's share price produced a
total return of +8.2%  and  the Company's net asset value produced a total
return of +2.6%, compared to a return of +3.7% by the FTSE All Share Index. The
share price total return was assisted by a re-rating of the shares after the
proposal to change the investment strategy of the Company to a more index
unaware approach as followed by the Schroder UK Alpha Plus Fund, was announced
to the market.



The UK market suffered a set back at the beginning of the period as investors
grew concerned over levels of inflation and that interest rates might rise
further than anticipated.  Areas of the market that had risen fastest initially
fell most, but this weakness spread to all sectors.  Any weakness was short
lived, however, as merger and acquisition activity continued to provide support
to the market.  Companies across a diverse group of industries were bid targets
and speculation about future activity kept investor spirits high.  In this
environment, mid and small cap companies outperformed the FTSE 100.  Equity
markets continued their strong performance into the latter part of the year
helped by a strong start to the US earnings season, with over two thirds of S&P
500 companies reporting results beating expectations, a trend companies in
Europe followed.



Outlook



Despite some prominent headlines, for example the first official increase in UK
interest rates for two years, there has been very little change in the sentiment
or preoccupations of UK equity investors in the last few months.  During the
market downturn in May there were some signs of doubt about how long the good
times could last for companies which had been in favour for some time.  However,
these concerns were short-lived and there has been no significant change in risk
appetite or in relative valuations within the market.



We continue to feel that, after very benign conditions in recent years,
companies now face more obstacles and that, for some, the risk of
disappointments has increased.  We do not anticipate any material downturn in
growth, especially as US interest rates look to have peaked.  However, there is
little pent-up demand and many costs are rising, making both revenue growth and
margin improvement harder to come by.  In the UK it seems likely that interest
rates will edge higher as the Bank of England adopts a hawkish tone, anxious to
contain consumer borrowing at a time when inflation is ticking up.  We therefore
question for how long the signs of stronger consumer spending which were
apparent over the summer months will last and we believe that for many companies
the rate of earnings growth will slow.



Policy



The portfolio was repositioned to follow an investment strategy similar to that
run by the Schroder UK Alpha Plus Fund, following the vote in favour at the EGM.
  The main effect was a reduction in the number of holdings from 39 to 31, with
proceeds reinvested to increase weights in favoured holdings (via a programme
trade at minimal cost).



Our policy is not based on an expectation that the stock market or profits will
fall; indeed, we can identify pockets of exceptional value and the withdrawal of
equity from the market, either through mergers and acquisitions or share
repurchases, should continue to provide much support.  However we do believe
that more discrimination is necessary in this environment and that investment in
companies whose valuations are justified only on optimistic scenarios is
particularly risky.  We anticipate a change in the type of companies that will
provide the best investment returns as sustainable earnings growth,
well-established franchises and strong finances become increasingly desirable
characteristics. To date business quality or earnings resilience has received
scant attention and as a result many companies with these attributes are
extremely lowly valued in comparison to other parts of the market. Many of these
are larger companies which have been overlooked in a period of high risk
tolerance and bid speculation, and we are more heavily invested in FTSE 100
stocks than for many years.



Much of the recent underperformance stems from stocks we have not owned for the
reasons of relative value outlined above rather than as a result of fundamental
disappointments within the portfolio.  Turning points in market conditions are
always hard to pinpoint.  However any pick-up in the numbers of companies
missing earnings expectations or failures of highly leveraged private equity
transactions, the early signs of which we have seen recently, could lead
investors to re-examine their view of reward and risk and prompt more focus on
the merits of the companies we hold and we are very confident in the fundamental
appeal and underlying value of the portfolio as a whole.



Schroder Investment Management Limited

22 December 2006



FIRST Interim Dividend



The Directors of the Company have declared the payment of a first interim
dividend for the year ending 30 April 2007.  The first interim dividend will be
payable on 31 January 2007 to shareholders on the register on 5 January 2007.



Ex-Dividend Date:                     3 January 2007



Record Date:                          5 January 2007



Dividend Warrants:                    30 January 2007



Payment Date:                         31 January 2007



Dividend per Share:                   1.50p net









INTERIM Report

The Interim Report will be mailed to registered shareholders at their registered
addresses in January 2007. Copies of the Interim Report will be made available
from the date of release at the Company's registered office, 31 Gresham Street,
London, EC2V 7QA.







Enquiries:
           Schroder Investment Management Limited

John Spedding
                                              (020 7658 3206)

22 December 2006




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