Interim Results

Caledonian Trust PLC
19 March 2003

CALEDONIAN TRUST PLC



INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2002



CHAIRMAN'S STATEMENT



The Group made a pre-tax profit of £400,000 in the 6 months to 31 December 2002.
  In the comparable period last year profits were £2,607,000 of which £2,052,000
arose from the sale of Stoneywood Business Centre.   Earnings per share were
3.09p and NAV per share is 165.5p compared to 27.56p and 163.5p respectively at
30 June 2002 and 17.40p and 148.4p at 31 December 2001.  In the period to 31
December 2002 rental income fell by £848,000, due primarily to the sale of our
Aberdeen properties but net interest costs fell by about £500,000 and
administrative expenses by £145,000. An interim dividend of 1.0p will be paid.



We have completed an elegant development of five four bedroom houses at Eskbank
near the Edinburgh City Bypass and are now conducting a spring marketing
campaign.  Recent interest has been high and the two largest houses sold.  At 61
North Castle Street we expect to start work shortly on the conversion of the
second, third and attic floors to two residential flats.    We have assessed
many opportunities and in central north Edinburgh we are the preferred offeror
for a development of over 20 flats.   At our site near Dunbar we have just
completed the conditional acquisition of an additional 2.5 acres of building
land and have a further larger area under negotiation.



Our commercial property portfolio has been increased by an investment in south
central Glasgow in a rapidly improving area where there are reversionary and
development prospects.  Commercial refurbishment proposals are being considered
for St Margaret's House, Edinburgh, a 92,845ft2 open plan office, near to the
Scottish Parliament and to the rapidly improving east centre of the city.  We
expect the necessary work to be undertaken largely from funds from the
dilapidations claim for over £4m, this to be determined during 2003.



In 2002 the UK economy grew by 1.6% the lowest growth since 1992.  Forecasts for
2003 have been progressively downgraded from the 2.7% reported in the Economist
in November 2002.   The current forecast is 2.2%, but the Economist Intelligence
Unit ('EIU') predicts 1.9% and there are many forecasts for around 1.5%.  There
are three major risks to the UK economy.   In the UK gross fixed investment fell
by 5.2% in 2002 including a fall of 15% in manufacturing investment, the largest
recorded.  Private consumption has increased rapidly each year since 1996
supported by rising levels of debt and the EIU forecast for 2003 is predicated
on consumption rising a further 1.8% in real terms.  The ratio of debt to income
is now at the level prior to the recession of the late 1980s and a rise in
interest rates or unemployment, or a collapse in house prices could trigger a
sharp reduction in consumption which the Bank of England estimates to be 7% of
the fall in housing wealth within two years.  The second and third risks are
external.   In Iraq the most likely outcome appears to be a brief successful war
the economic effects of which would be neutral or even positive, but a long war,
a 'Vietnam' or an Israeli involvement would be damaging.   The US economy has
two major imbalances: a high level of private sector debt and a large current
account deficit.   If the dollar or equity markets weaken further, confidence
could collapse increasing saving and reducing consumption.  Lower US growth
would damage all exporters and a lower dollar would increase imports delaying
the expected UK business recovery.  Modest UK economic growth is the most likely
outcome but the probability of a significantly worse outcome is very much higher
than the probability of a significantly better outcome.



The December 2002 CB Hillier Parker rent index fell 0.3% in the quarter and 0.5%
in the year as steep falls in office rental values, particularly in the City,
15.8%, outweighed small gains in all other sectors.  The All Property yield was
unchanged at 7.2% as rising office yields were offset by falls in retail
warehouses and stands at a record 2.5% points higher than Gilts.   Growth of
consumer spending is predicted to slow, or possibly fall if trends in house
prices are reversed, so affecting retail rents and falls in business investment
and current spare capacity, especially for offices, will adversely affect other
sectors.  Low rental growth is likely to maintain the historically large margin
over gilts.



House prices appear to be rising less rapidly.    Nationwide report that in
February 2003 prices rose only 0.4%  and Rightmove, who monitor asking prices in
England and Wales, report an overall rise of 2% over the last four months but
widespread falls in central London boroughs.  ESPC show Edinburgh area prices
rose 1% in the last quarter of 2002.



Due to development profits, trading until June 2003 should continue to be
satisfactory although, because of our current small investment portfolio,
reductions in net rental income will not be wholly offset by interest on cash
deposits.  Investment policy will continue to be very selective and future
trading results will depend on the timing of the realization of the very
significant development opportunities in the whole portfolio.



I D Lowe        Chairman                            19 March 2003









                                       Unaudited Consolidated Profit & Loss Account

                                         for the six months to 31 December 2002


                                          6 Months to 31  6 Months to 31           Year to
                                                Dec 2002        Dec 2001        30 June 2002
                                            (unaudited)     (unaudited)           (audited)
                                                 £'000             £'000          £'000
INCOME-continuing operations
Rental Income                                      698             1,546         2,731
Other trading sales                                176               163           340
                                                   874             1,709         3,071

Property rental outgoings                          (2)              (23)         (100)
Cost of other sales                              (178)             (197)         (396)
Administrative Expenses                          (292)             (437)         (816)

                                                 (472)             (657)       (1,312)

OPERATING PROFIT                                   402             1,052        1,759
Profit on disposal of investment property            -             2,052        2,589
Interest receivable                                185                33          159
Interest payable                                 (187)             (530)         (885)

PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE
TAXATION                                          400             2,607         3,622
                                                   

Taxation                                          (44)             (516)         (384)

PROFIT/(LOSS) ON ORDINARY ACTIVITIES AFTER
TAXATION                                          356             2,091         3,238
                                                   

DIVIDENDS                                        (115)              (60)         (173)
PROFIT/(LOSS) RETAINED                             241             2,031         3,065

Earnings per ordinary share                      3.09p            17.40p        27.56p

Diluted earnings per ordinary share              3.14p            14.47p        24.96p





                                                 Unaudited Consolidated Balance Sheet

                                                        As at 31 December 2002


                                           As at 31 Dec 2002      As at 31 Dec 2001     As at 30
                                                                                       June 2002
                                                 (unaudited)            (unaudited)    (audited)
                                                     £'000          £'000                  £'000
Fixed assets

 Investment Properties                              17,459           26,188               14,405
Equipment & vehicles                                     8                6                   10
                                                    17,467           26,194               14,415
Current assets

Debtors                                                532            9,803                2,532
Cash at bank and in hand                             8,019              934                8,762
                                                     8,551           10,737               11,294
        Creditors: Amounts falling due
        within one year                             (3,936)          (7,626)              (3,830)

                                                 
Net current assets/                                  4,615            3,111                7,464


Total assets less current liabilities               22,082             29,305             21,879

          Creditors: Amounts falling due
          after more than one year                  (3,027)           (11,477)             (3,064)
                                                 

Net assets                                          19,055             17,828             18,815




Capital and reserves

Called up share capital                              2,302              2,404              2,302
Share premium account                                2,531              2,531              2,531
Capital redemption reserve                             155                 54                155
Revaluation reserve                                      7              3,809                  7
Profit and loss account                             14,060              9,030             13,820

Shareholders' funds equity                          19,055             17,828             16,659









Notes



1              The figures for the six months to 31 December 2002 and 31
December 2001 do not constitute the company's statutory accounts within the
meaning of Section 240 of the Companies Act 1985 (as amended) and are unaudited.
  The figures for the year to 30 June 2002 do not constitute full accounts. The
audited accounts for that year were unqualified and have been delivered to the
Registrar of Companies.



2              The interim statement has been prepared in accordance with the
accounting policies set out in the group's statutory accounts for the year ended
30 June 2002.



3              The calculation of earnings per ordinary share is based on the
reported profit for the six months to 31 December 2002 and on the weighted
average number of ordinary shares in issue in the period being 11,510,270. The
calculation of diluted earnings per ordinary share is calculated adjusting the
profit for the six months to 31 December 2002 in respect of interest on loan
stock deemed to have been converted. The weighted average number of shares has
been adjusted for deemed conversion of loan stock and deemed exercise of share
options outstanding.



4                      An interim dividend of  1.0p per share will be paid on 8
April 2003 to shareholders on the register on 28 March 2003.



5              Copies of the Interim Results for the six months to 31 December
2002 will be posted to shareholders as soon as practicable; and will be
available, free of charge, for a period of one month from the company's
Nominated Adviser, Noble & Company Limited, 1 Frederick's Place, London EC2R
8AB.






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