Interim Results

Caledonian Trust PLC
23 March 2005

For immediate release                                             23 March 2005


                              CALEDONIAN TRUST PLC

             INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2004

                              CHAIRMAN'S STATEMENT

The Group made a pre-tax profit of £276,076 in the six months to 31 December
2004 compared to £239,000 for the same period last year. Earnings per share were
2.42p and NAV per share was 171.0p compared to 3.63p and 173.9p respectively at
30 June 2004 and 2.00p and 171.7p at 31 December 2003. Rental income rose by
£54,730 due primarily to income from two recent small investments. In both years
interest payable broadly equalled interest receivable but in the period to 31
December 2004 administration expenses fell by £137,081. Trading property sales
produced a £321,143 surplus compared to £475,000 last year. An unchanged interim
dividend of 1.0p will be paid.

Trading property sales comprised two flats bought wholesale in June 2003, two
flats created from unusable office space on the top three floors of 61 North
Castle Street and St Clements Wells, a 200 acre East Lothian farm acquired in
January 2004 and  sold in July for 47% above cost.

In December 2004 we acquired a steading near Bankfoot, Perthshire, where we hope
to obtain permission for 5-10 dwellings. In September we acquired a small
industrial/retail investment yielding about 9% in an improving residential area
in Kirkcaldy. In July we purchased a vacant warehouse for refurbishment and
letting with an expected yield of 9-10% in Rutherglen adjacent to the line of
the proposed M74 extension in South Glasgow. Since 31 December 2004 we have
bought an investment also likely to benefit from the M74 extension, a small
parade of shops in Scotland Street, Tradeston with a reversionary yield of
nearly 8.0%. Other property acquisitions are currently under consideration. In
January we sold the Old Pier public house for £300,000, about £100,000 above
book value.

Progress in our housing developments sites is encouraging but slow. At Wallyford
we expect to get planning permission for 8 houses when plans for the contiguous
site are agreed. At our sites near Dunbar, where we hope to build about 70
houses, problems with the sewerage services are gradually being resolved. At
Belford Road, Edinburgh, where we have existing office consent, we have recently
lodged an application for 20,000ft2 of residential property. At Tradeston,
Glasgow, adjacent to the site where sales of 360 flats are just completing, we
expect to lodge our application for 202 flats shortly. In Baylis Road, London,
we have instructed an architect to assess the possibility of developing a
residential scheme. We are currently considering options for our St Margarets
site on its own or possibly in conjunction with Meadowbank House, the
neighbouring 150,000ft2 Registers of Scotland office block with which it forms
an island site. The claim against the Scottish Ministers for dilapidations at St
Margarets House was settled on a favourable basis on 8 February 2005 at
£2,100,000.

In the UK GDP is rising at 5% and real GDP at 3%, above the 2.5% trend rate,
resulting in inflationary pressure. The Bank's latest inflation forecasts show
inflation above the 2% target in two years and interest rate expectations, which
were below 4.75% for the next two years, are now above 5.0%.

Weak recently reported consumer spending is likely to moderate inflation and
this weakness will be reinforced by any fall in the house market. National house
prices have hardly moved since last summer with some regions beginning to fall
in June. OPDM figures show a national 4% drop since July, the Halifax a drop of
0.5% in February and the ESPC a drop of 3.7% in the last quarter. Lehman
Brothers forecast a drop of 7% by 2007 joining other 'bears' such as Deutsche
Bank, Capital Economics and NIESR. A fall in the house market could reduce
spending rapidly and is a major threat to growth. The Bank's policy seems to be
a fine balancing act between gradual monetary tightening and a possible
precipitate house price fall.

Commercial property has not yet felt the impact of higher interest rates and
total returns over 12 months have been a spectacular 19.0%, the best performing
asset class over 1, 3, 5 and 10 years. On the CBRE Index yields dropped by 0.8%
points to 6.3% during 2004 although rents grew only 2.2%. With interest rates
now higher than 2004, and likely to rise further, and real rental growth
unlikely, there is no fundamental reason for yet lower yields: however in the
short term markets are not rational - property still has significant 'momentum'.

Prospects for profits and for asset growth over the next year are asymmetrical.
At present our interest position is neutral and rental income is less than
administrative expenses with profits determined by relatively volatile trading
margins. Asset growth will be largely determined by the outcome of our planning
applications for which the prospects are good.

I D Lowe        Chairman
                                                                23 March 2005



For further information please contact:

Douglas Lowe, Chairman and Chief Executive                   Tel: [phone]

Mike Baynham, Finance Director                               Tel: [phone]

Alasdair Robinson, Noble & Company Limited                   Tel: [phone]



                  Unaudited Consolidated Profit & Loss Account

                     for the six months to 31 December 2004


                                   6 Months to 6 Months to        Year to
                                   31 Dec 2004 31 Dec 2003   30 June 2004
                                  (unaudited)  (unaudited)       (audited)
                                         £'000       £'000           £'000
INCOME-continuing operations
Rental Income                              350            295          615
Trading property sales                   1,997            969         1,542
Other trading sales                        203            181           375
                                         2,550          1,445         2,532

Property rental outgoings                    -              -             -
Cost of trading property sales         (1,676)          (474)       (1,133)
Cost of other sales                      (174)          (183)         (363)
Administrative Expenses                  (415)          (552)       (1,129)

                                       (2,265)        (1,209)       (2,625)

OPERATING PROFIT/(LOSS)                    285            236          (93)
Profit on disposal of investment             -              -           584
property
Interest receivable                        141            117           230
Interest payable                         (150)          (114)         (286)

PROFIT ON ORDINARY ACTIVITIES BEFORE
TAXATION                                   276            239           435

Taxation                                     -              -             -

PROFIT ON ORDINARY ACTIVITIES AFTER
TAXATION                                   276            239           435

DIVIDENDS                                (119)          (115)         (264)
RETAINED PROFIT                            157            124           171

Earnings per ordinary share              2.42p          2.08p         3.78p

Diluted earnings per ordinary share      2.42p          2.00p         3.63p



                      Unaudited Consolidated Balance Sheet

                             as at 31 December 2004


                                                                      As at 31 Dec   As at 31 Dec 2003  As at 30 June
                                                                              2004                               2004
                                                                       (unaudited)         (unaudited)      (audited)
                                                                           £'000           £'000                £'000
                                   Fixed assets

                                   Investment Properties                  18,998            18,237             19,302
                                   Investments                                91                 -                 91
                                   Equipment & vehicles                        4                 6                  4
                                                                          19,093            18,243             19,397
                                   Current assets

                                   Debtors                                   142               352                122
                                   Cash at bank and in hand                6,233             6,253              6,313
                                                                           6,375             6,605              6,435
                                   Creditors: Amounts falling due 
                                   within one year                       (4,094)            (3,821)            (3,726)

                                   Net current assets                      2,281               2,784          2,709

                                   Total assets less current              21,374              21,027           22,106
                                   liabilities

                                   Creditors: Amounts falling due after 
                                   more than one year                    (1,056)            (1,265)            (2,253)

                                   Net assets                             20,318              19,762           19,853

                                   Capital and reserves
                                   Called up share capital                 2,377               2,302            2,283
                                   Share premium account                   2,745               2,531            2,531
                                   Capital redemption reserve                175                 155              175
                                   Revaluation reserve                       376                 564              376
                                   Profit and loss account                14,645              14,210           14,488

                                   Shareholders' funds equity             20,318              19,762           19,853



                   Unaudited Consolidated Cash Flow Statement

                     for the six months to 31 December 2004

                                             6 Months to       6 Months to          Year  to
                                             31 Dec 2004       31 Dec 2003      30 June 2004
                                              (unaudited)      (unaudited))         (audited)
                                                    £'000             £'000            £'000
Net cash inflow/(outflow) from operating
activities                                           (254)            (128)               71
Returns on investments and servicing of
finance                                               (36)             (13)              (18)
Equity dividends paid                                (148)            (126)             (241)
Capital expenditure and financial
investment                                             625             866               368
                                                __________      __________        __________

Cash inflow before management of liquid
resources and financing                                187             599               180
                                          
Financing                                             (261)            505               909
                                                __________      __________        __________


(Decrease)/increase in cash in period                  (74)          1,104             1,089
                                                __________      __________        __________
Reconciliation of net cash flow to
movement in net debt
(Decrease)/increase in cash in the period              (74)          1,104             1,089

Cash (outflow )/inflow from movement in                569            (505)           (1,026)
debt
                                                __________      __________        __________                            
             
Movement in net debt in the period                     495             599                63
                                          
Net cash at the start of the period                  1,816           1,753             1,753
                                                __________      __________        __________                            
Net cash at the end of the period                    2,311           2,352             1,816
                                                __________      __________        __________                            

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 2004     31 Dec 2003    30 June 2004
                                      (unaudited)     (unaudited)       (audited)
                                            £'000           £'000           £'000
                                                                            
Operating profit                              285             236             (93)
Profit on disposal of property               (321)           (495)           (409)
Depreciation charges                            -               2               4
(Increase)/decrease in debtors                (19)            174             184
Increase)/(decrease) in creditors            (199)           (45)             385
                                         ________        ________        ________
Net cash inflow/(outflow) from
operating activities                         (254)           (128)             71
                                         ________        ________        ________

(b)Analysis of cash flows


Returns on investment and
Servicing of Finance
Interest received                            141              117             230
Interest paid                               (177)            (130)           (248)
                                         ________        ________        ________
                                             (36)             (13)            (18)
                                         ________        ________        ________

Capital expenditure and
financial investment
Purchase of tangible fixed assets               -               -          (3,081)
Purchase of investment property           (1,316)            (104)             -
Sale of investment property                 1,941             970           3,540
Purchase of investments                         -               -             (91)
                                         ________        ________        ________ 
                                              625             866             368
                                         ________        ________        ________

Financing
Purchase of ordinary share capital              -               -            (117)
capital
Issue of ordinary share capital               308               -               -
Debt due within a year
Increase/(decrease) in short term           (373)             543           1,076
debt debt
Debt due beyond a year
(Decrease) in long-term debt                (196)             (38)            (50)
                                         ________        ________        ________
                                            (261)             505             909
                                         ________        ________        ________




Unaudited Statement of Total Recognised Gains and Losses
For the six months to 31 December 2004

                                    6 Months to       6 Months to          Year to
                                  31 Dec  2004      31 Dec  2003      30 June 2004
                                    (unaudited)       (unaudited)        (audited)
                                          £'000             £'000            £'000

Profit for period                           276               239              435

Unrealised surplus/ on
revaluation of properties                     -                 -              161
                                          
Total gains and losses recognised
relating to the period
                                            276               239              596

Notes

1              The figures for the six months to 31 December 2004 and 31
December 2003 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 2004 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 2004.



3                     The calculation of earnings per ordinary share is based on
the reported profit for the six months to 31 December 2004 and on the weighted
average number of ordinary shares in issue in the period being 11,412,921.



4                     An interim dividend of 1.0p per share will be paid on 29
April 2005 to shareholders on the register on 8 April 2005.



5              Copies of the Interim Results for the six months to 31 December
2004 will be posted to shareholders on or before 31st March 2005 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.




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