Interim Results

Capital Gearing Trust PLC
23 November 2000


CAPITAL GEARING TRUST PLC

INTERIM REPORT FOR THE SIX MONTHS ENDED 5 OCTOBER 2000


        CHAIRMAN'S INTERIM STATEMENT

The figures for the half year to 5th October, 2000 show an increase in NAV per
share of 7.4% to 1072p on an AITC basis - 1076p per share including
undistributed income. The NAV figure reflects shares bought in at a discount
for cancellation. The increase may be compared with a rise in the FT
Investment Trust Index of 12.0%, a rise in the FTSE All Share Index of 1.3%,
and a fall in the FTSE All Stocks Gilt Index of 1.4%. The out-turn is
respectable given the defensive asset allocation pursued. Markets have
displayed unusual volatility over the period and we expect this to continue.

In my last Statement I informed shareholders that we had reached agreement
with Capel Cure Sharp (Holdings) Ltd. that they would provide the Trust with
full secretarial services following the conclusion of the AGM. I am pleased to
report that these arrangements are settling down well.


        23 November, 2000

        DISTRIBUTION OF INVESTED FUNDS

        Percentage of underlying assets

                                                                    As at As at

                                                                 5/10/00 5/4/00
      
                                      North                Emerging
                                UK    America Europe Asia  Markets  Total Total
                                %     %       %      %     %        %     %

Investment Trust Ordinary       10.0  2.0     2.0    2.0   3.0      19.0  16.8
Shares

Investment Trust Capital/Growth 13.0  -       -      -     -        13.0  12.4
Shares

Investment Trust Stepped and    43.0  -       -      -     -        43.0  49.5

Zero Dividend Preference Shares

Fixed interest stocks           3.0   10.0    9.0    -     -        22.0  21.3

Cash                            3.0   -       -      -     -        3.0   -

                                72.0  12.0    11.0   2.0   3.0      100.0 100.0


        MAJOR INVESTMENTS OF THE COMPANY AT 5 OCTOBER 2000

INVESTMENT TRUST PREFERENCE SHARES                                            £

Fleming Income and Capital Investment Trust - Zero Dividend           1,313,250
M&G Income Investment Trust - Zero Dividend                           1,137,000
Leggmason Investment International Utilities - Zero Dividend          1,107,652
Jos Holdings - Zero Dividend                                          1,030,750
Leggmason Investment International European Utilities                   801,000

Gartmore Shared Equity Trust - Zero Dividend                            797,625
Jupiter Split Trust - Zero Dividend                                     792,800

INVESTMENT TRUST ORDINARY SHARES                                              £

Investors Capital Trust                                               1,024,100
Aberforth Split Level Trust                                             683,050
London & St Lawrence                                                    636,960
Murray Emerging Economies                                               467,488




INVESTMENT TRUST CAPITAL SHARES                                               £

Tor Investment Trust                                                  1,415,250
INDEX LINKED SECURITIES AND FIXED INTEREST                                    £

USA Treasury Notes 3.625% inflation indexed 15 April 2028             1,131,123
Germany (Federal Republic) 5.625% Bonds 2028                            840,145

STATEMENT OF TOTAL RETURN (UNAUDITED)

FOR THE SIX MONTHS ENDED 5 OCTOBER 2000
                                           5 October 2000        5 October 1999
                                    Revenue Capital Total Revenue Capital Total

                                      £'000   £'000 £'000   £'000   £'000 £'000

Gains on investments                      -     969   969       -     859   859
Income from investments                 182       -   182     201       -   201
Other income - interest                  22       -    22      14       -    14

GROSS RETURN                            204     969 1,173     215     859 1,074

Management expenses                    (16)    (64)  (80)    (18)    (73)  (91)
Other administrative expenses          (85)       -  (85)    (52)       -  (52)


                                      (101)    (64) (165)    (70)    (73) (143)
RETURN ON ORDINARY ACTIVITIES           103     905 1,008     145     786   931
BEFORE TAX

Tax on return on ordinary               (4)       -   (4)     (3)       -   (3)
activities

RETURN ON ORDINARY ACTIVITIES

AFTER TAX                                99     905 1,004     142     786   928

TOTAL ATTRIBUTABLE TO ORDINARY           99     905 1,004     142     786   928
SHAREHOLDERS

RETURN PER ORDINARY SHARE             4.25p  38.90p 43.15p  6.09p 33.72p 39.81p


BALANCE SHEET (UNAUDITED) AS AT 5 OCTOBER 2000
                                                5 October  5 October   5 April

                                                     2000       1999      2000
                                                    £'000      £'000     £'000
FIXED ASSETS

Investments                                        24,156     21,976   23,2323

CURRENT ASSETS

Debtors                                               801        603       606
Bank                                                   96         56       105

                                                      897        659       711

CREDITORS: amounts falling due within one year      (582)      (476)      750)

NET CURRENT ASSETS (LIABILITIES)                      315        183      (38)

NET ASSETS                                         24,471     22,159    23,284

CAPITAL EMPLOYED

Called up share capital                               568        583       583
Share premium account                                 991        991       991
Capital reserve                                    22,687     20,354    21,583
Revenue reserve                                       225        231       127

TOTAL EQUITY SHAREHOLDERS' FUNDS                   24,471     22,159    23,284

NET ASSETS PER ORDINARY SHARE                      1,076p       951p      998p

CASH FLOW (UNAUDITED) FOR THE SIX MONTHS ENDED 5 OCTOBER 2000
                                                        5 October     5 October

                                                             2000          1999
                                                            £'000         £'000

Cash in/outflow from operating activities                  (114)            358

Taxation received                                             13             12

Capital expenditure and financial investment:

Purchase of investments                                  (5,278)        (5,363)
Sales of investments                                       6,139          4,217

Equity dividends paid                                      (161)          (116)

Financing - purchase of own shares                         (607)              -

                                                             (8)          (892)

Cash and cash equivalents:

Balance 6 April                                              105            948
Net cash                                                     (8)          (892)

Balance 5 October                                             96             56

Operating cash flows:

Profit before tax                                            103            145
Increase in accrued income and sundry debtors              (207)            264
Increase in sundry creditors                                 (9)           (48)
Tax on investment income                                       -            (3)

                                                           (114)            358


NOTES

1.     Status of financial statements

The financial information for the six months to 5 October 2000 and 5 October
1999, which is unaudited and does not constitute statutory accounts, has been
prepared using accounting policies consistent with those set out in the
Company's 5 April 2000 statutory accounts.

The abridged financial information for the year ended 5 April 2000 has been
extracted from the Company's statutory accounts for that year, which have been
filed with the Registrar of Companies. The report of the auditors on those
accounts was unqualified.

2.      Earnings per share

The calculations of earnings per share is based on results after tax divided
by the weighted average number of shares in issue during the period of
2,326,512 (1999: 2,330,596).