Interim Results

Brunner Investment Trust PLC
15 July 2004

For immediate release                    15th July 2004


                        THE BRUNNER INVESTMENT TRUST PLC

                        ANNOUNCEMENT OF INTERIM RESULTS
                     For the six months ended 31st May 2004


Net Asset Value

A summary of the results for the six months ended 31st May 2004 is set out
below.  The Net Asset Value attributable to each Ordinary Share at 31st May 2004
was 343.2p. This compares with 343.1p at 30th November 2003. The capital return
on the benchmark index (60% FTSE All Share, 40% FTSE World Index- £) was 1.58%
over the period.



Earnings

Earnings in the six months to 31st May 2004 were 4.30p per Ordinary Share (2003:
4.43p).



Interim Dividend

The Board has declared an interim dividend of 3.50p net (2003: 3.40p) per
Ordinary Share payable on 27th August 2004 to holders on the Register of Members
at the close of business on 30th July 2004.



Forecast Final Dividend

It is the Board's intention to pay a final dividend of 4.55p per share (2003:
4.40p) which would make a total of 8.05p per share for the full year.



Investment Review

Markets have struggled to make headway in the six months to 31 May 2004.  Fears
that economic recovery in the United States would falter, given the initially
slow pick up in job creation, have given way to nervousness about higher
inflation and the pace at which interest rates will need to rise. A volatile
background for oil prices and fears of a hard landing for the Chinese economy
have also dampened sentiment despite generally encouraging company results in
major markets.



In the UK, government spending has kept the economy relatively buoyant, although
house price inflation remains a concern.  Elsewhere, in the United States higher
bond yields already seem to be having an impact on the housing market and bank
lending is contracting.  Moreover higher oil prices are already squeezing real
incomes so the Federal Reserve may not have to raise interest rates as much as
the market is currently discounting.  In Japan a better functioning financial
system and improving employment has helped boost investment and consumption. The
risk remains that a slowdown in the rest of Asia and waning business confidence
may undermine capital spending and hiring, and rising bond yields make monetary
conditions less helpful.  Nonetheless the current indications support the view
that a domestic Japanese recovery has finally emerged.  Elsewhere in the
Pacific, the Australian economy appears to be softening as the property-fuelled
consumer boom wanes and the currency weakens.



Although the volatility of oil prices is likely to be a concern for the European
Central Bank,  rates are unlikely to rise in the Euro bloc while German
employment and business confidence continue to weaken.  European margins still
have scope to expand, and given the relative valuations, a number of European
companies look attractive.



The Board has had discussions with the Managers as to how to improve the
performance of the underlying assets of the Trust bearing in mind the capital
structure and the outlook for equity markets.  It has been concluded that in the
current economic environment a more concentrated portfolio in the UK is
appropriate as this should allow the Managers greater scope to achieve superior
returns.  As a result the number of UK holdings has gone from 59 to 38, and the
total number of holdings has reduced from 156 to 128.  The Board considers that
the overall risk profile of the Trust, which has risen as a result of the
change, nevertheless remains consistent with the objective of the Trust.  There
is no change to the investment approach, which aims to focus on quality growth
shares.



Looking forward, we expect modestly positive returns from equity markets in 2004
as corporate profits growth in general remains strong.  However, concerns over
rising interest rates,  and the risk of further instability in the Middle East
are likely to constrain investor enthusiasm and add to volatility.  The pace of
last year's profits growth may also slow as labour costs rise and financials no
longer benefit from low interest rates.  This should make stocks with
sustainable growth more attractive and highly leveraged companies less so.  Key
investment themes for 2005 are likely to include a pick up in mergers and
acquisitions and corporate restructuring, further evidence of a strengthening in
the Japanese domestic economy and a recovery in European profit margins.



J F H Trott
Chairman



Enquiries:
For further information, please contact:

RCM (UK) Limited
Kirsten Salt
Tel: [phone]


                                     - 3 -


SUMMARY OF UNAUDITED RESULTS
STATEMENT OF TOTAL RETURN
for the six months ended 31st May 2004
                                                                           2004
                                                            (£'000s)       (£'000s)         (£'000s)
                                                             Revenue        Capital            Total
                                                            (Note 2)
Net gains on investments                                           -            601              601
Income from investments                                        3,313              -            3,313
Other income                                                     360              -              360
Investment management fee                                      (193)          (451)            (644)
Expenses of administration                                     (151)              -            (151)
Return before finance costs and taxation                       3,329            150            3,479

Finance costs of borrowings                                    (689)        (1,607)          (2,296)
Return on ordinary activities before taxation                  2,640        (1,457)            1,183

Overseas taxation                                               (92)              -             (92)
UK taxation                                                    (195)            195                -
                                                               (287)            195             (92)

Return on ordinary activities after taxation                   2,353        (1,262)          (1,091)
Dividends on Preference Stock                                   (11)              -             (11)
Return attributable to Ordinary Shareholders                   2,342        (1,262)            1,080

Dividends on Ordinary Shares:
Prior year over accrual                                           34              -               34
Interim                  3.50p                               (1,892)              -          (1,892)
                                                             (1,858)              -          (1,858)

Transfer to (from) Reserves                                      484        (1,262)            (778)

Return per Ordinary Share (Note 1)                             4.31p        (2.32)p            1.99p


NET ASSET STATEMENT
as at 31st May 2004
                                                                                                       2004
                                                                                                   (£'000s)

Fixed asset investments                                                                             217,203
Net current assets                                                                                   21,522
Total assets less current liabilities                                                               238,725
Creditors: amounts falling due after more than one year                                            (52,708)
Total Net Assets                                                                                    186,017

Called up share capital -               Ordinary                                                     13,518
                                        Preference                                                      450
Capital redemption reserve                                                                            2,482
Capital reserves        -               Realised                                                    165,695
Unrealised                                                                                          (3,819)
Revenue reserve                                                                                       7,691
Shareholders' Funds                                                                                 186,017

Net asset value per Ordinary Share                                                       343.2p

The net asset value is based on 54,070,416 Ordinary Shares in issue.



                                     - 4 -



SUMMARY OF UNAUDITED RESULTS
STATEMENT OF TOTAL RETURN
for the six months ended 31st May 2003
                                                                               2003
                                                                (£'000s)        (£'000s)         (£'000s)
                                                                 Revenue         Capital            Total
                                                                (Note 2)
Net losses on investments                                                        (4,101)          (4,101)
Income from investments                                            3,411               -            3,411
Other income                                                         442               -              442
Investment management fee                                          (178)           (414)            (592)
Expenses of administration                                         (179)               -            (179)
Return before finance costs and taxation                           3,496         (4,515)          (1,019)

Finance costs of borrowings                                        (666)         (1,551)          (2,217)
Return on ordinary activities before taxation                      2,830         (6,066)          (3,236)

Overseas taxation                                                   (96)               -             (96)
UK taxation                                                        (188)             188                -
                                                                   (284)             188             (96)

Return on ordinary activities after taxation                       2,546         (5,878)          (3,332)
Dividends on Preference Stock                                       (11)               -             (11)
Return attributable to Ordinary Shareholders                       2,535         (5,878)          (3,343)

Dividends on Ordinary Shares:
Prior year over accrual                                                1               -                1
Interim                  3.40p                                   (1,929)               -          (1,929)
                                                                 (1,928)               -          (1,928)

Transfer to (from) Reserves                                          607         (5,878)          (5,271)

Return per Ordinary Share (Note 1)                                 4.43p        (10.27)p          (5.84)p



NET ASSET STATEMENT
as at 31st May 2003
                                                                                                       2003
                                                                                                   (£'000s)

Fixed asset investments                                                                             206,933
Net current assets                                                                                   27,312
Total assets less current liabilities                                                               234,245
Creditors: amounts falling due after more than one year                                            (51,862)
Total Net Assets                                                                                    182,383

Called up share capital -               Ordinary                                                     14,176
                                        Preference                                                      450
Capital redemption reserve                                                                            1,824
Capital reserves        -               Realised                                                    177,225
                                        Unrealised                                                 (18,562)
Revenue reserve                                                                                       7,270
Shareholders' Funds                                                                                 182,383

Net asset value per Ordinary Share                                                         320.8p
The net asset value is based on 56,705,416 Ordinary Shares in issue.




                                     - 5 -


RESULTS
STATEMENT OF TOTAL RETURN
for the year ended 30th November 2003
                                                                                2003
                                                             (£000s)          (£000s)           (£000s)
                                                             Revenue          Capital            Total
                                                             (Note 3)
Net gains on investments                                             -             9,141             9,141
Investment income                                                6,495                 -             6,495
Other income                                                       831                 -               831
Investment management fee                                        (369)             (860)           (1,229)
Expenses of administration                                       (171)                 -             (171)
Return before finance costs and taxation                         6,786             8,281            15,067

Finance costs of borrowings                                    (1,347)           (3,139)           (4,486)
Return on ordinary activities before taxation                    5,439             5,142            10,581

Taxation
Overseas taxation                                                (146)                 -             (146)
UK taxation                                                      (376)               376                 -
                                                                 (522)               376             (146)

Return on ordinary activities after taxation                     4,917             5,518            10,435

Dividends on Preference Stock                                     (23)                 -              (23)
Return attributable to Ordinary Shareholders                     4,894             5,518            10,412

Dividends on Ordinary Shares:
Prior year over accrual                                              1                 -                 1
First interim           3.40p                                  (1,925)                 -           (1,925)
Final                   4.40p                                  (2,426)                 -           (2,426)
                        7.80p                                  (4,350)                 -           (4,350)
          
Transfer to reserves                                               544             5,518             6,062

Return per Ordinary Share (Note 1)                               8.65p             9.75p            18.40p


 NET ASSET STATEMENT
 as at 30th November 2003
                                                                                                     2003
                                                                                                  (£000s)
Fixed asset investments                                                                           219,637
Net current assets                                                                                 21,844
Total assets less current liabilities                                                             241,481
Amounts falling due after more than one year                                                     (51,826)
Total Net Assets                                                                                  189,655

Called up share capital                 -               Ordinary                                   13,785
                                        -               Preference                                    450
Capital redemption reserve                                                                          2,215
Capital  reserves                       -               Realised                                  174,945
                                        -               Unrealised                                (8,946)
Revenue reserve                                                                                     7,206
Shareholders' Funds                                                                               189,655

Net asset value per Ordinary Share                                                                 343.1p
The net asset value is based on 55,140,416 Ordinary Shares in issue.




                                 -          6 -



Cash Flow Statement
for the six months ended 31st May 2004 and comparative periods

                                                   Six Months to May       Six Months to May    Year to November
                                                                2004                    2003                2003
                                                            (£'000s)                (£'000s)            (£'000s)
Net cash inflow from operating activities                      2,641                   2,845               5,741

Servicing of Finance
Interest paid                                                (2,329)                 (2,114)             (4,384)
Dividends paid on Preference Stock                              (11)                    (11)                (22)
Net cash outflow on servicing of finance                     (2,340)                 (2,125)             (4,406)


Financial Investment
Purchase of fixed asset investments                         (66,811)                (63,299)           (152,141)
Sale of fixed asset investments                               66,025                  71,383             160,387
Net cash (outflow) inflow from financial                       (786)                   8,084               8,246
investment

Equity dividends paid                                        (2,392)                 (2,411)             (4,336)

Net cash (outflow) inflow before financing                   (2,877)                   6,393               5,245


Financing
Purchase of Ordinary Shares for cancellation                 (2,860)                 (1,721)             (5,780)
Decrease in short term loan                                        -                   (787)               (907)
Net cash outflow from financing                              (2,860)                 (2,508)             (6,687)

(Decrease) increase in cash                                  (5,737)                   3,885             (1,442)




                                     - 7 -



Note 1

The returns per Ordinary Share are based on revenue or capital return to
Ordinary Shareholders, as appropriate, and on 54,406,208 Ordinary Shares being
the weighted average number of shares in issue throughout the period (31st May
2003 - 57,206,559 Shares; 30th November 2003 - 56,578,783 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 2003.

The non-statutory accounts for the year to 30th November 2003 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, 155 Bishopsgate, London,
EC2M 3AD.



                                     - 8 -




Twenty Largest Equity Holdings as at 31st May 2004


Security Name                 Market value % of Total Assets        Principal Activity
                                                   *
                                  (£'000s)
BP                                  12,299       5.15               Oil & Gas
Vodafone Group                       6,272       2.63               Telecommunications
HSBC Holdings                        6,172       2.59               Banking
Royal Bank of Scotland               6,081       2.55               Banking
Barclays                             4,585       1.92               Banking
GlaxoSmithKline                      4,296       1.80               Pharmaceuticals
WPP                                  3,204       1.34               Media & Entertainment
BHP Billiton                         3,180       1.33               Mining
Standard Chartered                   3,104       1.30               Banking
Cobham                               2,740       1.15               Aerospace & Defence
ICAP                                 2,667       1.12               Finance
Sage Group                           2,644       1.11               Information Technology
GUS PLC                              2,618       1.10               General Retail
United Business Media                2,617       1.10               Media & Entertainment
Man Group                            2,492       1.04               Finance
Diageo                               2,471       1.04               Beverages
AstraZeneca                          2,444       1.02               Pharmaceuticals
Intercontinental Hotels              2,345       0.98               Leisure & Hotels
Allied Domecq                        2,327       0.97               Beverages
Carnival                             2,205       0.92               Transport

                                    76,763      32.16


*  Total assets include current liabilities.


Equity Portfolio Analysis as at 31st May 2004
                                                                               %
United Kingdom                                                             53.59
North America                                                              25.30
Europe                                                                     11.62
Pacific Basin                                                               2.35
Japan                                                                       5.56
Other Countries                                                             1.58
                                                                          100.00



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