Interim Results

Caledonian Trust PLC
26 March 2004


CALEDONIAN TRUST PLC

INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2003

CHAIRMAN'S STATEMENT

The Group made a pre-tax profit of £239,000 in the six months to 31 December
2003 compared to £400,000 for the same period last year.   Earnings per share
were 2.08p and NAV per share was 171.7p compared to 4.41p and 170.6p
respectively at 30 June 2003 and 3.09p and 165.5p at 31 December 2002.   In the
period to 31 December 2003 rental income fell by £403,000, as the comparable
half year included five months rent at St Margaret's House, Edinburgh and
residual rents at Stoneywood only partially offset by the rent from West Street,
Glasgow.   Sales of three houses at Weir Court, Eskbank showed a surplus of
£475,000, but administration expenses rose £260,000, principally due to higher
property costs and professional fees incurred by the dilapidations claim at St
Margaret's.  An unchanged interim dividend of 1.0p will be paid.

In the summer we made an opportunistic wholesale purchase of three newly-built
Edinburgh flats, including a penthouse, and these are now on the market.  We
have created a 1200ft(2) Georgian flat and a 1600ft(2) modern penthouse from
unusable office space on the top three floors of 61 North Castle Street, and
these flats will be marketed at Easter.

Our dilapidations claim at St Margaret's for c£4.0m against the Scottish
Ministers was the subject of a four day hearing in the Court of Session in
mid-December when we were represented by the Dean of the Faculty, Colin Campbell
QC.   We await the outcome of that hearing.

In January 2004 we completed the purchase of two properties.   In Paisley we
have acquired a 133,000ft(2) warehouse on a 5.7 acre site 'off market'.    This
site, across the M8 from Glasgow Airport, is highly visible and easily
accessible from the motorway.   In East Lothian we have acquired from PPL
Therapeutics PLC, St Clements Wells, a 200 acre farm bordering the A1 just east
of the A1/City Bypass interchange.   The farm has two large modern sheds
totalling 28,000ft(2) and planning consent for an additional 32,000ft(2).
These two acquisitions offer excellent short-term trading and long-term
development prospects.   In addition we are currently negotiating the
acquisition of a small, high-yielding and very well located industrial
investment in the Aberdeen area.

Planning work has continued on our development sites and progress in Tradeston,
Glasgow, where we hope to develop up to 200 flats, has been encouraging.   At
our sites just east of Dunbar planning is delayed because of inadequate
drainage, rectification of which will cause extra development costs.   In order
to gain economies of scale we are negotiating to acquire a nearby site for a
further 20 houses.

UK economic conditions seem propitious.   The EIU says 'a global economic
recovery is well under way' and expects 2004 world economic growth of 4.2%, OECD
growth of 2.7% and EU growth of 2.0% with similar forecasts for 2005.   UK
growth has accelerated recently to 2.3% and the Economist's poll of forecasters
predicts 3.0% in 2004 and 2.5% in 2005.   The Bank of England expects almost
3.5% in 2004, the upper limit of the Chancellor's forecast.   Recent economic
growth in the western economies has resulted from expansionary monetary policy
and the average short-term interest rate in the big economies is at its lowest
recorded rate in history.   Until the Bank of England raised rates on 5 February
2004 UK interest rates were at a 48-year low.   The USA economy has received the
biggest fiscal and monetary stimulus in history, increasing spending and asset
prices, an economic bubble resulting in the value of households' total wealth
(financial assets and homes) now being well above the level in early 2000 before
the equity price falls.   Thus any correction implied by the equity bear market
has been more than compensated by asset gains and tax cuts:  a rebalancing of
the economy has been delayed.

The UK position is similar but less extreme with high consumer expenditure and
with a potential asset bubble forming in the housing market.   In February 2004
the Bank of England expected consumer spending to slow as house price inflation
abated to give 'a long overdue rebalancing of the economy'.  However since then
the ODPM has reported an increase in house prices (from 8.3% in December to 9.7%
in January 2004), rises reflected in both the Nationwide and Halifax indices.
The strength of consumer spending is indicated by the rise in the trade deficit
in January 2004 to a record £4.6bn.   The IMF states that the principal risk to
the economy was a 'hard landing in house prices and consumption'. It estimates
house prices to be overvalued by 30-35%.

Trading for the remainder of this year will depend on development and trading
profits as investment income continues at a low level.   The results will also
be greatly influenced by the outcome and the timing of the litigation at St
Margaret's House.   Investment policy will continue to be very selective and
future results depend on the realisation of the significant development
opportunities in the existing portfolio.

I D Lowe        Chairman                                26 March 2004

For further information please contact:

Douglas Lowe, Chairman and Chief Executive                    0131 220 0416
Mike Baynham, Finance Director                                0131 220 0416
Alasdair Robinson, Noble & Company Limited                    0131 225 9677


Unaudited Consolidated Profit & Loss Account
for the six months to 31 December 2003

                                       6 Months to 6 Months to 31        Year to
                                       31 Dec 2003       Dec 2002   30 June 2003
                                       (unaudited)    (unaudited)      (audited)
                                             £'000         £'000           £'000
INCOME-continuing operations
Rental Income                                  295           698             963
Trading property sales                         969             -             360
Other trading sales                            181           176             367
                                             1 445           874           1 690
                                        ___________   ___________     ___________
Property rental outgoings                        -            (2)              -
Cost of trading property sales                (474)                         (160)
Cost of other sales                           (183)         (178)           (347)
Administrative Expenses                       (552)         (292)           (669)
                                              ____          ____            ____

                                            (1,209)         (472)         (1,176)
                                            ______          ____          ______
                                        
OPERATING PROFIT                               236           402             514
Gain on sale of fixed assets                     -             -              10
Interest receivable                            117           185             344
Interest payable                              (114)         (187)           (365)
                                        ___________   ___________     ___________

PROFIT ON ORDINARY ACTIVITIES BEFORE
TAXATION                                       239           400             503

Taxation                                         -          (44)               5
                                        ___________   ___________     ___________

PROFIT ON ORDINARY ACTIVITIES AFTER
TAXATION                                       239           356             508
                                        ___________   ___________     ___________

DIVIDENDS                                     (115)         (115)           (242)
PROFIT RETAINED                                124           241             266
                                        ===========   ===========     ===========
Earnings per ordinary share                  2.08p         3.09p           4.41p
                                        ___________   ___________     ___________

Diluted earnings per ordinary share          2.00p         3.14p           4.24p
                                        ___________   ___________     ___________


Unaudited Consolidated Balance Sheet
As at 31 December 2003


                               As at 31 Dec 2003    As at 31 Dec 2002    As at 30 June 2003
                                     (unaudited)          (unaudited)             (audited)
                                           £'000                £'000                 £'000
Fixed assets
Investment Properties                     18,237               17,459                18,608
Equipment & vehicles                           6                    8                     9
                                      ___________          ___________           ___________
                                          18,243               17,467                18,617
Current assets

Debtors                                      352                  532                   307
Cash at bank and in hand                   6,253                8,019                 5,233
                                      ___________          ___________           ___________
                                           6,605                8,551                 5,540

Creditors: Amounts falling due 
within one year                           (3,821)              (3,936)               (2,216)
                                      ___________          ___________           ___________

Net current assets                         2,784                4,615                 3,324
                                      ___________          ___________           ___________


Total assets less current liabilities     21,027               22,082                21,941

Creditors: Amounts falling due 
after more than one year                  (1,265)              (3,027)               (2,303)
                                      ___________          ___________           ___________

Net assets                                19,762               19,055                19,638
                                      ___________          ___________           ___________


Capital and reserves

Called up share capital                    2,302                2,302                 2,302
Share premium account                      2,531                2,531                 2,531
Capital redemption reserve                   155                  155                   155
Revaluation reserve                          564                    7                   564
Profit and loss account                   14,210               14,060                14,086
                                      ___________          ___________           ___________

Shareholders' funds equity                19,762               19,055                19,638
                                      ___________          ___________           ___________



Unaudited Consolidated Cash Flow Statement
for the six months to 31 December 2003


                                       6 Months to     6 Months to       Year  to
                                       31 Dec 2003     31 Dec 2002   30 June 2003
                                       (unaudited)     (unaudited)      (audited)
                                             £'000           £'000          £'000
Net cash inflow/(outflow) from
operating activities                         (128)            935             692
Returns on investments and
servicing of finance                          (13)             (2)            (63)
Corporation tax                                 -            (613)           (770)
Equity dividends paid                        (126)              -            (230)
Capital expenditure and financial
investment                                    866          (1,005)         (1,388)
                                        __________      __________      __________

Cash (outflow)/inflow before
management of liquid resources
and financing                                 599            (685)         (1,759)

Financing                                     505             (33)         (1,760)
                                        __________      __________      __________


(Decrease)/increase in cash in              1,104            (718)         (3,519)
period

Reconciliation of net cash flow
to movement in net debt
(Decrease)/increase in cash in
the period                                 1,104            (718)         (3,519)

Cash (outflow )/inflow from
movement in debt                             (505)            (33)          1,760
                                        __________      __________      __________
Movement in net debt in the
period
                                              599            (685)         (1,759)
Net cash/(debt) at the start of
the period                                  1,753           3,512           3,512
                                        __________      __________      __________

Net cash/(debt)  at the end of              2,352          (2,827)          1,753
the period
                                        __________      __________      __________


Notes to the unaudited consolidated cash flow statement

(a)  Reconciliation of operating profit to net cash outflow from operating
     activities
                                       6 Months to     6 Months to          Year to
                                       31 Dec 2003     31 Dec 2002     30 June 2003
                                       (unaudited)     (unaudited)        (audited)
                                             £'000           £'000            £'000

Operating profit                               236             401             513
Profit on disposal of property                (495)              -            (200)
Depreciation charges                             2               2               4
(Increase)/decrease in debtors                 174             (50)            175
Increase)/(decrease) in creditors              (45)            582             200
                                        __________      __________      __________
Net cash inflow/(outflow) from
operating                                     (128)            935             692

Activities


(b)Analysis of cash flows


Returns on investment and

Servicing of Finance
Interest received                             117             185             344
Interest paid                                (130)           (187)           (407)
                                        __________      __________      __________

                                              (13)             (2)            (63)
Capital expenditure and

financial investment
Purchase of tangible fixed assets               -               -          (3,809)
Purchase of investment property              (104)         (3,056)              -
Sale of investments                             -               -           2,411
Sale of fixed assets                            -               -              10
Sale of investment property                   970           2,051               -
                                        __________      __________      __________

                                              866          (1,005)          1,388

Financing
Purchase of ordinary share capital              -               -               -
capital
Debt due within a year
Increase/(decrease) in short term debt        543               4            (999)
Debt due beyond a year
(Decrease/increase in long-term debt          (38)            (37)           (761)
                                        __________      __________      __________

                                              505             (33)         (1,760)
                                        __________      __________      __________



Unaudited Statement of Total Recognised Gains and Losses
For the six months to 31 December 2003


                                       6 Months to     6 Months to         Year to
                                       31 Dec 2003     31 Dec 2002    30 June 2003
                                       (unaudited)     (unaudited)       (audited)
                                             £'000           £'000          £'000

Profit for period                              239             400            503

Taxation                                         -             (44)             5

Unrealised surplus/ on
revaluation of properties                        -               -
Total gains and losses recognised       __________      __________      __________
relating to the period                         239             356          1,065
                                        __________      __________      __________

Notes
     
1    The figures for the six months to 31 December 2003 and 31 December 2002 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 2003 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 2003.
     
3    The calculation of earnings per ordinary share is based on the reported 
     profit for the six months to 31 December 2003 and on the weighted average 
     number of ordinary shares in issue in the period being 11,510,267. The
     weighted average number of shares has been adjusted for deemed exercise of 
     share options outstanding.
     
4    An interim dividend of 1.0p per share will be paid on 27 April 2004 to 
     shareholders on the register on 13 April 2004.
     
5    Copies of the Interim Results for the six months to 31 December 2003 will 
     be posted to shareholders on or before 31st March 2004 and will be 
     available, free of charge,  from the company's Nominated Adviser, Noble & 
     Company Limited, 76 George Street, Edinburgh, EH2 3BU, for a period of one 
     month from the date thereof.

END


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