Interim Results

Brunner Investment Trust PLC
18 July 2002



For immediate release     18th July 2002



                        THE BRUNNER INVESTMENT TRUST PLC

                        ANNOUNCEMENT OF INTERIM RESULTS

                     For the six months ended 31st May 2002



Net Asset Value

A summary of the results for the six months ended 31st May 2002 is set out
below. The Net Asset Value attributable to each Ordinary Share at 31st May 2002
was 405.6p. This compares with 424.3p at 30th November 2001, a fall of 4.4%.
Taking into account the net ordinary dividend declared in respect of the period,
the Net Asset Value total return amounted to -3.6% compared with a return on the
benchmark index of -1.8%. The principal reason for the shortfall was
disappointing stock selection in the US.

Earnings

Earnings in the six months to 31st May 2002 of 4.01p per Ordinary Share have
decreased by 21.7% compared with the same period last year. This reflects a fall
in dividend income from UK equities following sales from that part of the
portfolio to reduce gearing prior to the main dividend season, lower interest
rates on cash on deposit and some dividend cuts.

Interim Dividend

The Board has declared an interim dividend of 3.30p net (2001 : 3.20p) per
Ordinary Share payable on 30th August 2002 to holders on the Register of Members
at the close of business on 2nd August 2002.

Forecast Final Dividend

It is the Board's intention to pay a final dividend of 4.10p per share (2001 :
4.10p) which would make a total of 7.40p per share for the full year.

Investment Review

Markets were highly volatile over the period. The significant cuts in interest
rates worldwide that had taken place at the end of our last financial year
provided some support, and consumer spending in the US remained buoyant despite
a high level of consumer indebtedness. Corporate earnings however showed little
signs of recovery and US companies, in particular, remained on relatively high
valuations which required strong earnings growth for their justification.





                                     - 2 -



Sector performances remained divergent. Weakness in technology, media and
telecoms ('TMT') shares resumed in 2002 after a brief period of good performance
in the last quarter of 2001. The better performing sectors have been those which
have stable cash flows and those which have seen strengthening demand for their
products, such as basic industries.

Currency markets were also volatile, with the Japanese Yen depreciating
significantly against the US dollar for the first half of the period. This gave
Japanese exporters an unexpected boost which was a most welcome source of
strength to an otherwise depressed economy. Towards the end of the period, the
emergence of US dollar weakness made the global environment more challenging for
Asian and European exporters. Against this background global investors have been
reallocating investments from the USA to other regions of the world,
particularly Asia, which have similar or better growth but are on more
attractive valuations.

Against the uncertain global economic environment, the portfolio remained
cautiously positioned, with a high cash position offsetting long-term debt. In
terms of sectors, exposure has been increased in areas with stable cashflows and
in consumer related stocks. The relatively highly valued areas of the market
with uncertain growth prospects (such as TMT) have been reduced further.

The divergence between some stronger economic numbers and deteriorating equity
markets continues. For this stage of the cycle, debt levels and oil prices are
high, and unemployment low. Against this background, achieving the sort of
recovery in stock markets that many analysts are forecasting will be difficult.
In addition the ongoing accounting issues, highlighted by Worldcom, are reducing
investor risk appetite. In the last Annual Report I mentioned the high level of
our cash reserves which offset our gearing and reflected our doubts on the
near-term outlook of the markets. Valuations have become more attractive as a
result of recent market weakness and there may be some attractive buying
opportunities. However further weakness in the USA could impact all global
markets and in general continued caution seems warranted.



J F H Trott

Chairman

Enquiries:

For further information, please contact:

Dresdner RCM Global Investors (UK) Ltd

Tessa Murray, Head of Corporate Communications

Tel: [phone]

or

Dresdner RCM Global Investors (UK) Ltd

Simon White

Tel: [phone]







                                     - 3 -

SUMMARY OF UNAUDITED RESULTS

STATEMENT OF TOTAL RETURN

for the six months ended 31st May 2002
                                                                                 2002
                                                               (£'000)             (£'000)             (£'000)
                                                               Revenue             Capital               Total
                                                              (Note 2)
Net losses on investments                                            -            (10,669)            (10,669)
Income from investments                                          3,119                   -               3,119
Other income                                                       671                   -                 671
Investment management fee                                        (230)               (536)               (766)
Expenses of administration                                       (128)                   -               (128)
Return before finance costs and taxation                         3,432            (11,205)             (7,773)

Finance costs of borrowings                                      (681)             (1,589)             (2,270)
Return on ordinary activities before taxation                    2,751            (12,794)            (10,043)

Overseas taxation                                                 (54)                   -                (54)
UK taxation                                                      (335)                 336                   1
                                                                 (389)                 336                (53)

Return on ordinary activities after taxation                     2,362            (12,458)            (10,096)
Dividends on Preference Stock                                     (11)                   -                (11)
Return attributable to Ordinary Shareholders                     2,351            (12,458)            (10,107)

Dividends on Ordinary Shares
Interim          3.30p                                         (1,897)                   -             (1,897)

Transfer to (from) Reserves                                        454            (12,458)            (12,004)

Return per Ordinary Share (Note 1)                               4.01p          (21.24p)              (17.23p)



NET ASSET STATEMENT

as at 31st May 2002
                                                                                                         2002

                                                                                                      (£'000)
Fixed asset investments                                                                               256,881
Net current assets                                                                                     31,478
Total assets less current liabilities                                                                 288,359
Creditors: amounts falling due after more than one year                                              (51,922)
Total Net Assets                                                                                      236,437

Called up share capital     -     Ordinary                                                             14,547
Preference                                                                                                450
Capital redemption reserve                                                                              1,453
Capital reserves          -     Realised                                                              217,612
Unrealised                                                                                            (4,264)
Revenue reserve                                                                                         6,639
Shareholders' Funds                                                                                   236,437

Net asset value per Ordinary Share  405.6p
The net asset value is based on 58,188,416 Ordinary Shares in issue.



                                     - 4 -

                          SUMMARY OF UNAUDITED RESULTS

STATEMENT OF TOTAL RETURN

for the six months ended 31st May 2001
                                                                                 2001
                                                               (£'000)             (£'000)             (£'000)
                                                               Revenue             Capital               Total
                                                              (Note 2)
Net losses on investments                                            -            (20,795)            (20,795)
Income from investments                                          3,924                   -               3,924
Other income                                                       641                   -                 641
Investment management fee                                        (281)               (655)               (936)
Expenses of administration                                       (247)                   -               (247)
Return before finance costs and taxation                         4,037            (21,450)            (17,413)

Finance costs of borrowings                                      (649)             (1,510)             (2,159)
Return on ordinary activities before taxation                    3,388            (22,960)            (19,572)

Overseas taxation                                                 (84)                   -                (84)
UK taxation                                                      (204)                 204                   -
                                                                 (288)                 204                (84)

Return on ordinary activities after taxation                     3,100            (22,756)            (19,656)
Dividends on Preference Stock                                     (11)                   -                (11)
Return attributable to Ordinary Shareholders                     3,089            (22,756)            (19,667)

Dividends on Ordinary Shares
Interim          3.2p                                          (1,929)                   -             (1,929)

Transfer to (from) Reserves                                      1,160            (22,756)            (21,596)

Return per Ordinary Share (Note 1)                               5.12p            (37.75p)            (32.63p)



NET ASSET STATEMENT

as at 31st May 2001
                                                                                                         2001

                                                                                                      (£'000)
Fixed asset investments                                                                               330,531
Net current assets                                                                                     25,960
Total assets less current liabilities                                                                 356,491
Creditors: amounts falling due after more than one year                                              (51,985)
Total Net Assets                                                                                      304,506

Called up share capital     -     Ordinary                                                             15,071
Preference                                                                                                450
Capital redemption reserve                                                                                929
Capital reserves          -     Realised                                                              268,878
Unrealised                                                                                             12,274
Revenue reserve                                                                                         6,904
Shareholders' Funds                                                                                   304,506

Net asset value per Ordinary Share  504.4p
The net asset value is based on 60,283,416 Ordinary Shares in issue.



                                     - 5 -

RESULTS

STATEMENT OF TOTAL RETURN

for the year ended 30th November 2001
                                                                                        2001
                                                                   (£000)              (£000)              (£000)
                                                                 Revenue              Capital               Total
                                                                 (Note 3)
Net losses on investments                                               -            (66,433)            (66,433)
Investment Income                                                   6,303                   -               6,303
Other Income                                                        1,192                   -               1,192
Investment management fee                                           (526)             (1,228)             (1,754)
Expenses of administration                                          (452)                   -               (452)

Return before finance costs and taxation                            6,517            (67,661)            (61,144)
Finance costs of borrowings                                       (1,250)             (2,906)             (4,156)

Return on ordinary activities before taxation                       5,267            (70,567)            (65,300)

Taxation
Overseas taxation                                                    (75)                   -                (75)
UK taxation                                                         (366)                 366                   -
                                                                    (441)                 366                (75)

Return on ordinary activities after taxation                        4,826            (70,201)            (65,375)
Dividends on Preference Stock                                        (22)                   -                (22)
Return attributable to Ordinary Shareholders                        4,804            (70,201)            (65,397)

Dividends on Ordinary Shares
First Interim               3.2p                                  (1,913)                   -             (1,913)
Second Interim              4.1p                                  (2,450)                   -             (2,450)
                            7.3p                                  (4,363)                   -             (4,363)

Transfer to (from) reserves                                           441            (70,201)            (69,760)

Return per Ordinary Share (Note 1)                                  8.00p           (116.90p)           (108.90p)


NET ASSET STATEMENT

as at 30th November 2001
                                                                                                             2001

                                                                                                           (£000)
Fixed asset investments                                                                                   273,744
Net Current Assets                                                                                         32,264
Total Assets less Current Liabilities                                                                     306,008
Amounts falling due after more than one year                                                             (51,953)
Total Net Assets                                                                                          254,055

Called up Share Capital          -     Ordinary                                                            14,941
-     Preference                                                                                              450
Capital Redemption Reserve                                                                                  1,059
Capital Reserves          -     Realised                                                                  237,221
-     Unrealised                                                                                          (5,801)
Revenue Reserve                                                                                             6,185
Shareholders' Funds                                                                                       254,055

Net asset value per Ordinary Share                                                                         424.3p
The net asset value is based on 59,763,416 Ordinary Shares in issue.




  • 6 -



Cash Flow Statement

for the six months ended 31st May 2002 and comparative periods
                                                        Six Months to May        Six Months to May      Year to November
                                                                     2002                     2001                  2001
                                                                  (£'000)                  (£'000)               (£'000)
Net cash inflow from operating activities                           2,001                    3,100                 5,495

Servicing of Finance
Interest paid                                                     (2,117)                  (2,107)               (4,218)
Dividends paid on Preference Stock                                   (11)                     (11)                  (23)
Net cash outflow on servicing of finance                          (2,128)                  (2,118)               (4,241)

Taxation
UK income tax repaid (paid)                                             2                    (250)                 (251)

Financial Investment
Purchase of fixed asset investments                             (110,959)                (130,571)             (227,858)
Sale of fixed asset investments                                   111,771                  139,010               249,284
Net cash inflow from financial activities                             812                    8,439                21,426

Equity dividends paid                                             (2,427)                  (2,411)               (4,324)

Net cash inflow (outflow) before financing                        (1,740)                    6,760                18,105

Financing
Purchase of Ordinary Shares for cancellation                      (5,614)                        -               (2,287)
Decrease in short term loan                                         (220)                    (209)                 (417)
Net cash outflow from financing                                   (5,834)                    (209)               (2,704)

Increase (decrease) in cash                                       (7,574)                    6,551                15,401



                                     - 7 -

Note 1

The returns per Ordinary Share are based on revenue or capital return to
Ordinary Shareholders, as appropriate, and on 58,656,553 Ordinary Shares being
the weighted average number of shares in issue throughout the period (31st May
2001 - 60,283,416 Shares; 30th November 2001 - 60,052,238 Shares).

Note 2

The revenue column of this statement is the profit and loss account of the
Company. All revenue and capital items derive from continuing operations. No
operations were acquired or discontinued in the period.

Note 3

This interim statement has been neither audited nor reviewed by the Company's
auditors. The interim statement has been prepared using the same accounting
policies as those adopted in the annual accounts for the year ended 30th
November 2001.

The non-statutory accounts for the year to 30th November 2001 are an extract
from the latest published accounts of the Company which have been delivered to
the Registrar of Companies. The auditors' opinion on those accounts was
unqualified and did not contain a statement under Section 237(2) or (3) of the
Companies Act 1985.

The Interim Report will be sent to Shareholders shortly and made available to
the public at the Registered Office of the Company, 10 Fenchurch Street, London,
EC3M 3LB.









                                     - 8 -







Twenty Largest Equity Holdings as at 31st May 2002


                                       Market value     % of Total      Principle Activity
                                                        Assets *
Security Name                               (£'000)
BP                                           13,748          4.77       Integrated oil and gas
GlaxoSmithKline                               8,768          3.04       Pharmaceuticals
Royal Bank of Scotland                        7,215          2.50       Banking and Financial Services
HSBC Holdings                                 6,803          2.36       Banking and Financial Services
Vodafone Group                                6,383          2.21       Telecommunications
Shell Transport & Trading                     5,353          1.86       Integrated oil and gas
Barclays                                      5,274          1.83       Banking and Financial Services
HBOS                                          4,929          1.71       Banking and Financial Services
Abbey National                                4,349          1.51       Banking and Financial Services
AstraZeneca                                   3,908          1.36       Pharmaceuticals
Canary Wharf Group                            3,287          1.14       Real Estate
Tesco                                         2,838          0.98       Food and drug retail
Rank Group                                    2,699          0.94       Leisure entertainment and hotels
United Utilities                              2,669          0.93       Utilities
Severn Trent                                  2,560          0.89       Utilities
Compass Group                                 2,527          0.88       Leisure entertainment and hotels
Allied Domecq                                 2,143          0.74       Beverages
Hanson                                        2,105          0.73       Construction and building maintenance
Hilton                                        2,087          0.72       Leisure entertainment and hotels
BPB                                           2,080          0.72       Construction and building maintenance
                                             91,725         31.82

* Total assets include current liabilities.





Portfolio Analysis as at 31st May 2002
                                                             %
United Kingdom                                            65.9
North America                                             19.8
Europe                                                     7.6
Japan                                                      3.1
Other Countries                                            0.6
Pacific Basin                                              3.0
                                                         100.0





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