Interim Results

Dunedin Enterprise Inv Trust PLC
11 December 2003

                                        For immediate release   11 December 2003



Dunedin Enterprise Investment Trust PLC

Interim Results for Six Months Ended 31 October 2003



Dunedin Enterprise Investment Trust PLC ('Dunedin Enterprise') specialises in
the provision of private equity for management buyouts, management buyins and
growing businesses. The Trust is managed by Dunedin Capital Partners Limited,
the independent UK mid-market private equity house which operates out of offices
in Edinburgh and London.



•  Net asset value per share increased by 1.7% to 314.7p per share

•  Interim dividend of 1.9p per share

•  New investment of £5.9 million in the half year

•  Realisations of £7.5 million in the half year

•  £15 million invested in four new companies in calendar 2003


Edward Dawnay, Chairman of Dunedin Enterprise, commented on the results:



'Dunedin Enterprise has performed well in line with expectations against the
background of uncertainty in the economy and in the stock market.  Our net asset
value per share has increased by 1.7% from 30 April 2003 and by 104.6% over the
past ten years.  As stated in June, we are well positioned to take advantage of
new investment opportunities and, during the half year, we have invested in the
chemicals manufacturer Hickson & Welch.  In addition, following the half year
end, we have supported the management buyout of Caledonian Building Systems and
are confident there will continue to be good buyout opportunities in 2004.'


For further information please contact:

Ross Marshall                 Dunedin Capital Partners Limited      0131 225 6699
Susan Wood                    Dunedin Capital Partners Limited      0131 718 2313 / 07711 955984


                                MANAGER'S REVIEW


Manager's Review


Overview



The unaudited net asset value attributable to ordinary shares at 31 October 2003
was £97.1 million compared to £95.5 million at 30 April 2003.  Net asset value
per share was 314.7p, an increase of 1.7% from 30 April 2003 and an increase of
10.4% over the 12 months since 31 October 2002.  The increase in net asset value
per share of 1.7% compares with an increase of 35.9% in the FTSE Small Cap Index
(excluding investment companies) over the same period.  During the six months
under review the share price of Dunedin Enterprise rose from 218.5p to 251.5p, a
15.1% increase.



The discount on your company's shares to the net asset value per share fell from
29.4% at 30 April 2003 to 20.1% at 31 October 2003.



Private equity is a long-term asset class as investments are sourced, matured
and exited over a number of years.  As a measure of longer-term performance,
over ten years, the net asset value per share of Dunedin Enterprise has
increased by 104.6% compared to a rise of 39.4% in the FTSE Small Cap Index
(excluding investment companies) over the same period.



Dunedin Enterprise invested £5.9 million in one new and seven follow-on
transactions during the half year.  Disposals by Dunedin Enterprise realised
£7.5 million and produced a gain of £1.1 million over valuations as at 30 April
2003.



Investments



In August 2003, Dunedin Enterprise supported the management buyout of Hickson &
Welch in a £21 million transaction.  Dunedin Enterprise invested £4.5 million in
this company in return for a 30% equity stake.  Hickson & Welch specialises in
the production of organic chemical intermediates for the agro-chemical,
pharmaceutical and pigment markets.  The company operates from a 175 acre site
in Castleford, Yorkshire where it carries out multi-stage synthesis of
molecules.  In the year to 31 December 2002, the company had sales of £40
million to a blue chip customer base of leading pharmaceutical and agro-chemical
companies.



A further £1.4 million was invested in various follow-on investments during the
period.



Following the half year end, in November 2003, Dunedin Enterprise supported the
£37 million management buyout of Caledonian Building Systems.  Dunedin
Enterprise invested £3.9 million in return for a 32% equity stake.  Caledonian
Building Systems is based in Newark, Nottinghamshire where it designs,
manufactures and constructs permanent buildings using pre-engineered, steel
framed modules.  This type of construction approach reduces construction time
and allows the final cost of the building to be calculated with more certainty.
Consequently, the market for this type of building is expected to increase
significantly.  The company is a market leader in this sector and supplies both
the public and private sectors.  In the year to 31 March 2003, the company had
sales of £44 million.



In total, during the calendar year 2003, Dunedin Enterprise has invested over
£15 million in four new portfolio companies; Gardner Group, Jessops, Hickson &
Welch and Caledonian Building Systems.  This was in a year when buyout activity
in the UK fell by 11% compared to 2002 and by 36% compared to the peak year of
1999.



Portfolio



At 31 October 2003, Dunedin Enterprise's portfolio comprised investments in 38
unlisted companies (representing 88% of the portfolio value), 7 buyout funds
(9%) and 4 technology funds (3%).  There is increasing focus in the portfolio on
management buyouts and buyins with the top ten investments, accounting for 70%
of portfolio value, all being companies of this type.



Dunedin Enterprise is represented on the board of eight of the top ten
investments and your Manager is fully involved in developing the strategy for
these companies.  A key part of this role is to identify ways of realising value
through sale or refinancing and a number of such initiatives are currently
underway.



Realisations



Net realised gains over previous valuation achieved by Dunedin Enterprise in the
period amounted to £1.1 million.  In June 2003, the sale of Thomson Brothers to
Wolseley plc was completed.  The total consideration received was £5.4 million,
a gain of £0.5 million over the valuation at 30 April 2003.  This was a
successful outcome for Dunedin Enterprise which invested £3.5 million in this
company in 1999.  Dunedin Enterprise received over £6.5 million in capital
proceeds and income resulting in a money multiple of 1.9 times original
investment and a return of 17% per annum over four years.



In August 2003, Tally was sold to a US based private equity fund.  This
investment had previously been fully provided against and produced a gain of
£0.6 million over the 30 April 2003 valuation.  This is considered to be a
satisfactory outcome.



Other realisations and redemptions of loan stock amounted to £1.5 million.



Results for the six months to 31 October 2003



The movement in net asset value is summarised in the table below:


                                                                                   £'m


Net asset value at 30 April 2003                                                  95.5
Unrealised valuation increases                                                     4.8
Unrealised valuation decreases                                                    (3.5)
Realised profit over opening valuation                                             1.1
Other capital movements                                                           (0.8)
Net asset value at 31 October 2003                                                97.1



All investments have been valued in accordance with the revised British Venture
Capital Association ('BVCA') Valuation Guidelines issued in June 2003.



Unrealised valuation movements in the half year occurred due to a combination of
increases and decreases in price earnings ratios used to value portfolio
companies and the imminent sale of one investment.  The weighted average price
earnings ratio used to value portfolio companies fell from 8.6 at 30 April 2003
to 8.3 at 31 October 2003, a discount of 50.4% to quoted multiples.  Poor
trading performance at three portfolio companies accounted for £2.9 million of
the unrealised valuation decrease.



In line with BVCA guidelines recent investments are reported at fair value.
Recent investments are held at cost and portfolio companies valued on an
earnings basis are valued using historic audited accounts, unless current year
profitability is lower than previous year, in which case the valuation is
reduced to reflect lower current profitability.  Companies which are trading
more profitably in the current year than in the previous year are not revalued
until audited accounts have been received.  A number of portfolio companies,
with accounting year ends falling between October 2003 and April 2004, which are
trading more profitably in the current year than in the previous year, are
consequently only revalued at April 2004.



Income in the half year has remained broadly flat.  There has been a switch in
the nature of income from bank deposit interest to dividend income following the
transfer of funds into 'AAA' rated cash OEIC's.



Dividend



As highlighted in the 2003 annual report, low interest rates and the changing
structure of private equity deals mean that the yield on recent investments has
been lower than on investments made when interest rates were significantly
higher.  The Board does not wish to deplete revenue reserves to maintain a
dividend level which is not sustainable in the current low interest rate
environment and consequently has decided to reduce the interim dividend by one
third from 2.85p per share, paid last year, to 1.9p per share.



The interim dividend will be paid on 30 January 2004, to shareholders on the
register at close of business on 5 January 2004.  The ex-dividend date is 31
December 2003.



Prospects



The UK is the core market for many of the companies in the Dunedin Enterprise
portfolio.  Some economists are forecasting that the UK economy will grow by 2%
in 2003, by 2.6% in 2004 and by 2.7% in 2005.  Interest rates are expected to
rise over the same period while inflation is expected to remain subdued.
Against this backdrop, we believe the prospects for the Dunedin Enterprise
portfolio companies are very positive.



There has also been some anecdotal evidence that there is increasing activity in
the mergers and acquisitions market although trade buyers remain elusive.
Consequently, there will continue to be opportunities to support the buyouts of
good businesses from both private and corporate vendors.



For more information on Dunedin Enterprise, its portfolio and investment
approach, please visit the website www.dunedin.com.



Dunedin Capital Partners Limited

10 December 2003


DUNEDIN ENTERPRISE INVESTMENT TRUST PLC

INTERIM RESULTS FOR SIX MONTHS ENDED 31 OCTOBER 2003



GROUP STATEMENT OF TOTAL RETURN

(Unaudited and incorporating the revenue account)


                                    6 months to                    6 months to                       12 months to
                                      31-Oct-03                      31-Oct-02                       30-Apr-03
                  Revenue   Capital       Total  Revenue   Capital       Total   Revenue   Capital       Total
                    £'000     £'000       £'000    £'000     £'000       £'000     £'000     £'000       £'000

Gains/(losses)          -     2,428       2,428        -  (11,500)    (11,500)         -   (2,694)     (2,694)
on investments

Income from         1,868         -       1,868    1,360         -       1,360     4,261         -       4,261
investments

Deposit interest      117         -         117      615         -         615     1,026         -       1,026

Investment          (335)   (1,006)     (1,341)    (343)   (1,030)     (1,373)     (651)   (1,952)     (2,603)
management fee

Other expenses      (209)         -       (209)    (189)      (36)       (225)     (432)      (36)       (468)

Net return          1,441     1,422       2,863    1,443  (12,566)    (11,123)     4,204   (4,682)       (478)
before finance
costs and
taxation

Interest payable    (156)     (468)       (624)    (164)     (492)       (656)     (314)     (941)     (1,255)
and similar
charges

Return on           1,285       954       2,239    1,279  (13,058)    (11,779)     3,890   (5,623)     (1,733)
ordinary
activities
before taxation

Tax on ordinary     (210)       210           -    (112)       112           -     (415)       415           -
activities                                                     

Return              1,075     1,164       2,239    1,167  (12,946)    (11,779)     3,475   (5,208)     (1,733)
attributable to
equity
shareholders
Interim dividend    (587)         -       (587)    (888)         -       (888)   (3,975)         -     (3,975)
at 1.9p per                                                      
share (2002:
2.85p)

Transfer to           488     1,164       1,652      279  (12,946)    (12,667)     (500)   (5,208)     (5,708)
reserves

Basic return per     3.5p      3.8p        7.3p     3.7p   (41.5p)     (37.8p)     11.1p   (16.7p)      (5.6p)
ordinary share


DUNEDIN ENTERPRISE INVESTMENT TRUST PLC

INTERIM RESULTS FOR SIX MONTHS ENDED 31 OCTOBER 2003



Group Balance Sheet



                                                               31-Oct       31-Oct        30-Apr
                                                                 2003         2002          2003
                                                                £'000        £'000         £'000

Fixed asset investments                                       107,250       76,774       112,468

Current assets

Debtors                                                         1,321        1,476         1,092

Cash at bank                                                    9,513       35,563         5,587

                                                               10,834       37,039         6,679

Creditors: amounts falling due within one year                  (671)      (1,471)       (3,278)
                                                               ______       ______        ______
Net current assets                                             10,163       35,568         3,401
                                                              _______      _______       _______
Total assets less current liabilities                         117,413      112,342       115,869

Creditors: amounts falling due after more than               (20,269)     (23,552)      (20,377)
one year

                                                               97,144       88,790        95,492

Capital and reserves

Called up share capital                                         7,718        7,785         7,718

Share premium account                                          47,600       47,600        47,600

Capital redemption reserve                                        208          141           208

Capital reserve - realised                                     35,598       40,352        39,281

Capital reserve - unrealised                                    3,467      (9,653)       (1,380)

Revenue reserve                                                 2,553        2,565         2,065

Shareholders' funds                                            97,144       88,790        95,492

Net asset value per share                                      314.7p       285.1p        309.3p



DUNEDIN ENTERPRISE INVESTMENT TRUST PLC

INTERIM RESULTS FOR SIX MONTHS ENDED 31 OCTOBER 2003


GROUP CASH FLOW STATEMENT


                                         6 months to                  6 months to            12 months to 30
                                     31 October 2003              31 October 2002                 April 2003
                             £'000             £'000     £'000              £'000      £'000           £'000

Net cash inflow from                              81                          504                      2,541
operating activities

Servicing of finance
Interest paid                                  (624)                        (656)                    (1,255)

Taxation

UK corporation tax paid          -                       (168)                         (203)

UK corporation tax               -                        54                           55
recovered

Net cash outflow from                              -                        (114)                      (148)
taxation

Financial investment

Purchase of investments    (5,943)                     (1,260)                      (10,109)

Purchase of 'AAA' rated    (6,496)                           -                      (28,899)
money market funds

Sale of investments          7,495                      16,907                        28,483

Sale of 'AAA' rated         12,500                           -                             -
money market funds                                  

Net cash inflow                                7,556                       15,647                    (10,525)
(outflow) from financial
investment

Equity dividends paid                        (3,087)                      (3,119)                     (4,007)

Net cash inflow                                3,926                       12,262                    (13,394)
(outflow) before
financing

Financing

Share buy back                                     -                        (104)                      (640)

Currency loan reduction                            -                          501                    (3,283)

Increase/ (decrease) in                        3,926                       12,659                   (17,317)
cash


Notes



1. The interim statement is the responsibility of, and has been approved by, the
directors.

2. The financial information for the six months ended 31 October 2003 and 31
October 2002 comprises non-statutory accounts within the meaning of Section 240
of the Companies Act 1985. The financial information for the year ended 30 April
2003 has been abridged from published accounts that have been delivered to the
Registrar of Companies on which the report of the auditors was unqualified. The
Interim Report has been prepared on the same basis as the Annual Accounts.

3. A copy of this statement is being sent to all shareholders and further copies
can be obtained from the registered office of the company, 10 George Street,
Edinburgh, EH2 2DW.

TEN LARGEST INVESTMENTS


The ten largest investments account for 60.5% of the net assets of Dunedin
Enterprise as listed below:




                                                Approx.
                                             percentage       Cost of    Directors'  Percentage of
                                              of equity    investment     valuation     net assets
Company name                                         %*         £'000         £'000              %

Letts Filofax Group Limited                        41.1         3,961        10,686           11.0
Davenham Group Holdings Limited                    34.4         4,960        10,238           10.6
Portman Holdings Limited                           16.8         2,516         6,099            6.3
C.G.I. International Limited                       46.5           581         5,971            6.1
Financiere MGE                                      1.4         3,897         5,451            5.6
Goals Soccer Centres Limited                       39.7         4,807         4,807            4.9
Hickson & Welch Group Limited                      30.1         4,388         4,475            4.6
Accantia Limited                                    2.9         1,949         3,963            4.1
Gardner Group Limited                              15.0         3,610         3,610            3.7
Blaze Signs International Limited                  40.8         3,814         3,513            3.6
                                                               ______        ______           ____
                                                               34,483        58,813           60.5


* Approx. percentage of equity' relates to ordinary share capital of the
relevant company and assumes full exercise of outstanding options, warrants and
conversion rights.


-ENDS-


Notes to Editors



1. Dunedin Enterprise Investment Trust PLC floated in 1987 as Melville Street
Investments.


2. Dunedin Enterprise Investment Trust PLC is managed by Dunedin Capital
Partners Limited. Dunedin Capital Partners Limited is an independent mid-market
private equity company owned by its directors.  The company specialises in
providing private equity for management buyouts, management buyins and growing
businesses with a transaction size of £10 - 50 million. It operates throughout
the United Kingdom from its headquarters in Edinburgh and offices in London.


Dunedin Capital Partners is itself the result of a management buyout which took
place in 1996.


                      This information is provided by RNS
            The company news service from the London Stock Exchange