Interim Results

Dunedin Income Growth Inv Tst PLC
30 August 2001


30 August 2001


                  DUNEDIN INCOME GROWTH INVESTMENT TRUST PLC


               INTERIM RESULTS FOR THE 6 MONTHS TO 31 JULY 2001


The objective of Dunedin Income Growth Investment Trust is to achieve growth
of income from a portfolio invested in the United Kingdom.


Highlights


  * In difficult markets, NAV fell by 9% compared to a fall of 12.1% in the
    trust's benchmark, the FTSE All Share Index



  * Greater market enthusiasm for traditional stocks was a significant
    factor in the relative outperformance of the trust's portfolio



  * The interim dividend has been increased by 2.4% to 2.15p compared to
    last year's interim dividend of 2.10p



  * Low interest rates and sound economic conditions provide an attractive
    environment for equity investment



For further information, please contact:-



David Binnie, Fund Manager
Edinburgh Fund Managers plc           0131 313 1000


Chairman's Statement

This was an unrewarding period for stockmarket investment with the FTSE All
Share Index falling 12.1% in capital terms in the six months to 31 July 2001.
DIGIT outperformed the index with a fall in net asset value per share of 9.0%,
from 271.16p to 246.83p, although a slight widening in the discount meant that
the share price fell by 11.1% over the period.

We are declaring an interim dividend of 2.15p, which represents an increase of
2.4% on last year's figure of 2.10p.



Performance

The UK equity market weakened significantly during the period, in common with
other stockmarkets around the world, as the US led the world into an economic
slowdown.  Company profits were disappointing and both economic and corporate
forecasts were repeatedly reduced.  By far the worst hit areas were technology
related industries, which had enjoyed boom conditions a year earlier.  It
became increasingly clear that there had been massive over-investment in
telecommunications and the internet by these industries and their customers,
leading to a collapse in demand which would have serious implications for
profitability.

The shift in emphasis in the market away from technology and other low
yielding companies in favour of more traditional and high yielding stocks was
an important factor in the relative outperformance of the trust's portfolio.
For example, high yielding sectors like beverages, tobacco, utilities and
insurance - all areas in which the portfolio is well represented - did well.
On the other hand, the low yielding telecommunications sector, in which the
portfolio had underweight positions, was an underperformer.

Good stock selection at the sector level was also helpful: Rank Group,
Imperial Tobacco, Northern Rock and Scottish and Newcastle were all among the
best performers in their respective sectors.



Balance Sheet

One of the great advantages of the investment trust structure is the ability
to use borrowings to enhance the long term returns available from equities.
DIGIT has, in recent years, exploited this advantage through its two debenture
stocks.  In March, we decided to supplement these with a £40m facility from
the Bank of New York, which enables us to borrow for variable periods on
attractive terms.  We have been drawing on this facility during bouts of
market weakness and at 31 July some £25m of it had been invested.



Outlook

The falls in interest rates we have seen, particularly in the USA, should
benefit both stockmarkets and economies in due course, although there have
been few tangible signs of improvement to date.  The UK economy has fared
better than most with buoyant consumer spending helping to offset weakness in
manufacturing and exports.  Moreover, low inflation and sound public finances
give policymakers flexibility to react to unexpected problems.  Against this
background and with interest rates likely to remain low for some time to come,
we think equities provide good long term value at current prices.



Max Ward

Chairman



STATEMENT OF TOTAL RETURN

6 months to 31 July 2001 (unaudited)


                                               Revenue    Capital     Total
                                                  £000       £000      £000

Realised gains/(losses) on investments        -          (3,895)   (3,895)
Unrealised gains/(losses) on investments      -          (32,556)  (32,556)
Currency gains                                -          -         -

TOTAL CAPITAL (LOSSES)/GAINS ON INVESTMENTS   -          (36,451)  (36,451)
Income from investments                       8,017      -         8,017
Interest receivable on short term deposits    230        -         230
Other income                                  2          -         2
Investment management fee                     (315)      (735)     (1,050)
Administrative expenses                       (272)      -         (272)

NET RETURN BEFORE FINANCE                     7,662      (37,186)  (29,524)
     COSTS AND TAXATION
Interest payable and similar charges          (1,146)    (2,673)   (3,819)

RETURN ON ORDINARY                            6,516      (39,859)  (33,343)
  ACTIVITIES BEFORE TAXATION
Taxation                                      -          -         -

RETURN ATTRIBUTABLE TO                        6,516      (39,859)  (33,343)
   EQUITY SHAREHOLDERS
Dividends in respect of equity shares         (3,442)    -         (3,442)

                                              3,074      (39,859)  (36,785)

RETURN PER ORDINARY SHARE                     4.07p      (24.90p)  (20.83p)

INTERIM DIVIDEND PER ORDINARY SHARES          2.15p



STATEMENT OF TOTAL RETURN

6 months to 31 July 2000 (unaudited)


                                             Revenue  Capital    Total
                                                £000     £000     £000

Realised gains/(losses) on investments      -         21,190   21,190
Unrealised gains/(losses) on investments    -         20,923   20,923
Currency gains                              -         -       -

TOTAL CAPITAL GAINS ON INVESTMENTS          -         42,113   42,113
Income from investments                     6,820     -        6,820
Interest receivable on short term deposits  514       -        514
Other income                                10        -        10
Investment management fee                   (305)     (711)    (1,016)
Administrative expenses                     (327)     -        (327)

NET RETURN BEFORE FINANCE                   6,712     41,402   48,114
     COSTS AND TAXATION
Interest payable and similar charges        (1,046)   (2,442)  (3,488)

RETURN ON ORDINARY                          5,666     38,960   44,626
 ACTIVITIES BEFORE TAXATION
Taxation                                    -         -        -

RETURN ATTRIBUTABLE TO                      5,666     38,960   44,626
   EQUITY SHAREHOLDERS
Dividends in respect of equity shares       (3,362)   -        (3,362)

                                            2,304     38,960   41,264

RETURN PER ORDINARY SHARE                   3.54p     24.34p   27.88p

INTERIM DIVIDEND PER ORDINARY SHARE         2.10p




STATEMENT OF TOTAL RETURN

12 months to 31 January 2001


                                            Revenue       Capital     Total
                                            £000            £000      £000

Realised gains/(losses) on investments      -           48,282     48,282
Unrealised gains/(losses) on investments    -           1,257      1,257
Currency gains                              -           236        236

TOTAL CAPITAL GAINS ON INVESTMENTS          -           49,775     49,775


Income from investments                     13,416      -          13,416
Interest receivable on short term deposits  1,327       -          1,327
Other income                                26          -          26
Investment management fee                   (624)       (1,457)    (2,081)
Administrative expenses                     (563)       -          (563)

NET RETURN BEFORE FINANCE                   13,582      48,318     61,900
  COSTS AND TAXATION
Interest payable and similar charges        (2,093)     (4,883)    (6,976)

RETURN ON ORDINARY                          11,489      43,435     54,924
 ACTIVITIES BEFORE TAXATION
Taxation                                    -           -          -

RETURN ATTRIBUTABLE TO                      11,489      43,435     54,924
   EQUITY SHAREHOLDERS
Dividends in respect of equity shares       (10,484)    -          (10,484)

                                            1,005       43,435     44,440

RETURN PER ORDINARY SHARE                   7.18p       27.13p     34.31p


The revenue column of this statement represents the revenue account of the
company

All revenue and capital items in the above statement derive from continuing
operations



BALANCE SHEET


                                                 At 31 July  At 31   At 31 July
                                                            January
                                                    2001      2001      2000
                                                 (unaudited)         (unaudited)
                                                    £000      £000      £000

FIXED ASSETS
Investments                                      490,504    494,604  481,493

CURRENT ASSETS
Debtors                                          2,503      6,434    15,271
UK Treasury Bills                                -          9,899    9,865
Cash and short term deposits                     4,140      4,965    3,299

                                                 6,643      21,298   28,435
CREDITORS: Amounts falling due within one year
(excluding bank borrowings)                      (4,805)    (11,781) (8,990)
                                                 1,838      9,517    19,445

                                                 492,342    504,121  500,938
Short term bank borrowings                       (25,000)   -        -

TOTAL ASSETS LESS CURRENT LIABILITIES            467,342    504,121  500,938

CREDITORS: Amounts falling due after one year    (69,758)   (69,752) (69,745)

                                                 397,584    434,369  431,193


CAPITAL AND RESERVES
Called up share capital - equity                 40,025     40,025   40,025
Other reserves                                   357,559    394,344  391,168

TOTAL EQUITY SHAREHOLDERS' FUNDS                 397,584    434,369  431,193

Net asset value per 25p ordinary share           248.18p    271.16p  269.17p



CASHFLOW STATEMENT

                                              6 months   6 months   12 months
                                             to 31 July to 31 July to 31 January
                                                2001       2000        2001
                                             (unaudited) (unaudited)
                                                £000       £000        £000


Revenue before finance costs and taxation    7,662      6,712      13,582
Decrease/(increase) in accrued income        675        98         (607)
Decrease in debtors                          9          61         54
Increase in creditors                        2          6          3
Expenses charged to capital                  (735)      (711)      (1,457)

Net cash inflow from operating activities    7,613      6,166      11,575


Net cash outflow from servicing of finance    (3,481)   (3,481)    (6,963)


Total tax paid                               (411)      (52)       (47)


Net cash (outflow)/inflow from financial     (32,321)   9,876      12,768
investment


Equity dividends paid                        (7,124)    (6,884)    (10,244)


Net cash (outflow)/inflow before financing   (35,724)   5,625      7,089


Management of liquid resources               9,899      (9,865)    (9,899)


Net cash inflow from financing               25,000     -          -


Decrease in cash                             (825)      (4,240)    (2,810)



Notes:

1.        The directors have declared an interim dividend of 2.15p (2000 -
2.10p) per ordinary share for the year ended 31 January 2002. The interim
dividend, payable on 28 September 2001, will be paid to shareholders on the
register on 14 September 2001.  The ex dividend date is 12 September 2001.

2.        The accounts have been prepared under the same accounting policies
used for the year to 31 January 2001.  Franked investment income is reported
net of tax credits in accordance with FRS 16 'Current Tax'.

3.        The financial information for the year ended 31 January 2001 has
been extracted from the annual report and accounts of the company, which has
been filed, with the Registrar of Companies and on which the auditors' report
was unqualified.

4.        The statement of total return (incorporating the revenue account),
balance sheet and cashflow statement set out above do not represent full
accounts in accordance with Section 240 of the Companies Act 1985. The
accounts have been prepared in accordance with the Statement of Recommended
Practice 'Financial Statements of Investment Trust Companies'.

5.        The interim report will be posted to shareholders on 17 September
2001 and copies will be available at the head office of the Secretary -
Edinburgh Fund Managers plc, Donaldson House, 97 Haymarket Terrace, Edinburgh
EH12 5HD.


Please note that past performance is not necessarily a guide to the future and
that the value of investments and the income from them may fall as well as
rise.  Investors may not get back the amount they originally invested