Interim Results

Lindsell Train Investment Trust PLC
27 November 2006


The Lindsell Train Investment Trust plc

Objective of the Company

To maximise long-term total returns subject to the avoidance of loss of absolute
value and with a minimum objective to maintain the real purchasing power of
Sterling capital, as measured by the annual average yield on the 2.5%
Consolidated Loan Stock.

Financial highlights



Performance comparisons in the current performance period
(1 April 2006 - 30 September 2006)
Middle market share price per ordinary share#      +7.6%
Net Asset Value per ordinary share^                +5.2%
Benchmark*                                         +2.1%
MSCI World Index (Sterling)                        -4.4%
UK RPI Inflation (all items)                       +2.3%


^ Adjusted to include the £1.75 dividend paid on 26 July 2006.
* The index of the annual average yield on the 2.5% Consolidated 
  Loan Stock between the relevant dates.
# Calculated on a total return basis.




Chairman's Statement

I am pleased to report a continued rise in the net asset value ('NAV') of 5.2%
over the first half of the current financial year. The performance exceeded that
of the benchmark (+2.1%) and global markets as measured by the MSCI index in
Sterling (-4.4%). The negative performance of global markets was entirely due to
the weakness of the US Dollar versus Sterling, something that also restrained
the rise in the Company's NAV on account of its 30% exposure to US Dollar
denominated securities.

The share price performed better rising 7.6%, narrowing the discount to the NAV
to almost parity by the end of September.

The rise in the NAV was in a large part due to the strong performance of
Nintendo (+40% since March 2006) as well as an important contribution from the
Lindsell Train Japan Fund up (+14%), admittedly following a disappointing 2005.
It is encouraging to observe that assets such as these can help enhance the
upward momentum in the NAV at a time when some other parts of the portfolio,
notably the holdings in long-term fixed interest, have in aggregate, stagnated.
Other notable contributors to performance were the large holdings in AG Barr
(+17%) and Wolverhampton and Dudley Breweries (+13%) reflecting the continuing
strong dividend growth from these important drinks franchises.

It is interesting to reflect that over five years from its establishment, the
portfolio now has, at 13, an optimum number of investments in different
companies,, the Manager having originally characterised a range of 10-15 to
investors when the Company was launched in 2001. Still some positions remain
under-sized and may take more years to build. This long-term and cautious
approach to selecting securities is unusual in the investment management
industry these days and is a differentiating characteristic of your Company. In
addition, I believe it is an attribute that has contributed to the logic and
transparency behind the investment decisions and, ultimately, helped enhance
returns.

There was, disappointingly, a lack of growth in assets under management at
Lindsell Train Limited in the first half of the year. However Lindsell Train did
launch its new UK Equity Fund in July, specifically targeted at institutional
investors with a minimum subscription of £500,000 which had by early November
grown to a size of £42m. I remain confident that, with the growing history of
strong performance, the prospects for the management company to grow its funds
under management remain good.

This year not only are your Company's average borrowings higher than last year
but also their cost has increased following recent rises in short-term interest
rates. This extra financing cost exceeds the increase in revenues from growing
dividends. I believe the Company's potential in the short-term to grow dividends
at the annualised rate of 10% achieved in the last three years will be reduced.



R M Swire
Chairman
27 November 2006




Investment Manager's Report


This was another quiet six months for portfolio activity.  What there was 
consisted of three types.

First, we executed a switch between two preference shares.  Specifically, we
sold the HBOS 6.475% holding and invested the proceeds into HBOS 9.25% stock. 
We conducted this trade for two reasons.  By doing so we not only accessed a
marginally higher dividend yield at the terms offered, we also and much more
significant, switched out of an instrument with a fixed life into one which is
irredeemable.  The former preference share has a call option in 2024, at the
issuer's discretion.  This feature, in our view, puts a cap on the capital
upside, while providing no protection to the downside (because the issuer is not
obliged to redeem at par).  The irredeemable paper, by contrast, offers
theoretically unlimited upside - because it can carry on rising in price for as
long as long-term inflation expectations keep falling.  We still think that any
growth scare for the global, US or UK economies will be accompanied by a sharp
decline in inflation expectations, which will tend to push up the prices of both
the irredeemable preference shares and irredeemable gilts within the portfolio.

Notwithstanding this expression of our belief that long-dated, high calibre
fixed interest assets have a place in a portfolio targeting absolute returns,
our second activity over the period was to continue to reduce our holding in US
Treasury bonds.  We sold not because we are negative about the asset class -
which has indeed rallied strongly in recent weeks, but because we identified, to
our mind, more attractive equity assets.

Last, therefore, we bought some ordinary shares - adding modestly to the
longstanding positions in Cadbury Schweppes and Reed Elsevier.  In addition, we
initiated one new holding - in eBay.  This last is one of the most remarkable
and profitable companies we know and, moreover, has been on our 'watch-list' for
years.  For years, however, the valuation of eBay's stock has been too
challenging for us.  Between December 2004 and mid 2006 though, eBay's price
more than halved, as it became clear that the company's growth rate is,
inevitably, slowing.  We took advantage and bought two tranches of stock, the
second at, in hindsight, a multi-year low in the price, which has subsequently
rebounded strongly, making for a 30.0% gain in US Dollars in short order. 
Therein lies a frustration, because, similar to our newer holdings in Clarins
and Heineken, which also rallied almost immediately we began to buy, the eBay
position, at 1.6% of assets is well below targeted size.  As with the other two,
we must wait and hope that some dislocation in the markets offers us an
opportunity to resume accumulation.

Shareholders can correctly assume that the relatively modest activity of the
last six months signifies a lot of enthusiasm on our part about the constitution
and the constituents of the portfolio.  Some of those constituents have the
potential to rise materially over the next few years.  Nintendo, in particular,
is an important investment for your Company.  It is not only held directly in
the portfolio, but is the largest holding in both the Lindsell Train Global
Media and Japan Funds.  On this basis, the 'look through' exposure to Nintendo
amounts to over 8.5%.  Its shares hit a new high as this report is written, as
investors anticipate the impending launch of Nintendo's newest home gaming
console, the Wii.  These gains mean that Nintendo stock has now trebled since
its low in May 2003.  We hope this is just the beginning and use the performance
of Apple's share price over the same period as an inspiration.  Apple bottomed
at US$6.56 in April 2003.  Since then, as its iPod has become ubiquitous, the
price has gained nearly 13-fold to about US$85.00.  Remarkably, Nintendo's
ultimate opportunity may be even greater than Apple's, because in addition to
engineering two innovative pieces of hardware (the DS handheld and now the Wii),
Nintendo also creates game software, from which exceptional profits can be
earned.  By contrast, although Apple engineered iPod, it has no economic claim
on the content played over the device.

Nick Train
Investment Manager
Lindsell Train Limited
27 November 2006




Income Statement

                          Six months to                  Six months to                      Year ended
                        30 September 2006              30 September 2005                   31 March 2006
                            Unaudited                      Unaudited                          Audited
                     Revenue   Capital    Total      Revenue Capital     Total      Revenue   Capital     Total
                       £'000     £'000    £'000        £'000   £'000     £'000        £'000     £'000     £'000

Gains on            
investments                -     1,180    1,180            -   1,527     1,527            -     3,512     3,512
Exchange                
differences                -      (85)     (85)            -      53        53            -        61        61
Gains on forward      
currency contracts         -        71       71            -      10        10            -        43        43         
Income                   579         -      579          466       -       466          961         -       961
Investment           
management fee          (84)         -     (84)         (66)       -      (66)        (141)         -     (141)
Other expenses          (87)       (1)     (88)         (72)     (1)      (73)        (132)       (3)     (135)

Net return before        
finance costs and
tax                      408     1,165    1,573          328   1,589     1,917          688     3,613     4,301

Interest payable    
and similar
charges                (138)         -    (138)         (83)       -      (83)        (197)         -     (197)

Return on ordinary       
activities before
tax                      270     1,165    1,435          245   1,589     1,834          491     3,613     4,104
Tax on ordinary      
activities               (5)         -      (5)          (2)       -       (2)          (4)         -       (4)

Return on ordinary     
activities  after
tax for the period       265     1,165    1,430          243   1,589     1,832          487     3,613     4,100

Return per            
Ordinary Share         £1.33     £5.82    £7.15        £1.21   £7.95     £9.16        £2.43    £18.07    £20.50


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

The total columns of this statement represent the profit and loss accounts of
the Company. The supplementary revenue and capital columns are both prepared
under guidance published by the Association of Investment Companies.

No operations were acquired or discontinued in the year.

A statement of total recognised gains and losses is not required as all gains
and losses of the Company have been reflected in the above statement.



Reconciliation of Movements in
Shareholders' Funds
                                                                   Capital      Capital
                                              Share     Special    reserve      reserve    Revenue
                                            capital     reserve   realised   unrealised    reserve       Total
                                              £'000       £'000      £'000        £'000      £'000      £'000           

For the six months ended 30 September 2006
Net assets at 31 March 2006                     150      19,850      1,226        5,496        881     27,603
Net profit from operating activities              -           -       (57)        1,222        265      1,430
Dividends paid                                    -           -          -            -      (350)      (350)
Net assets at 30 September 2006                 150      19,850      1,169        6,718        796     28,683

For the six months ended 30 September 2005
Net assets at 31 March 2005                     150      19,850      1,124        1,985        704     23,813
Net profit from operating activities              -           -         47        1,542        243      1,832
Dividends paid                                    -           -          -            -      (310)      (310)
Net assets at 30 September 2005                 150      19,850      1,171        3,527        637     25,335

For the year ended 31 March 2006
Net assets at 31 March 2005                     150      19,850      1,124        1,985        704     23,813
Net profit from operating activities              -           -        102        3,511        487      4,100
Dividends paid                                    -           -          -            -      (310)      (310)
Net assets at 31 March 2006                     150      19,850      1,226        5,496        881     27,603




Balance Sheet
                                                           30 September     30 September           31 March
                                                                   2006             2005               2006
                                                              Unaudited        Unaudited            Audited
                                                                  £'000            £'000              £'000
Fixed assets
Investments held at fair value through profit or loss            32,662           27,834             31,442
Current assets                                                      960            1,004              1,032
Debtors                                                           1,471              937              1,467
Cash at bank                                                      2,431            1,941              2,499

Creditors: amounts falling due within one year                  (6,410)          (4,440)            (6,338)

Net current liabilities                                         (3,979)          (2,499)            (3,839)
Total assets less current liabilities                            28,683           25,335             27,603

Capital and reserves
Called up share capital                                             150              150                150
Special reserve                                                  19,850           19,850             19,850
                                                                 20,000           20,000             20,000
Capital reserve - realised                                        1,169            1,171              1,226
Capital reserve - unrealised                                      6,718            3,527              5,496
Revenue reserve                                                     796              637                881
Equity shareholders' funds                                       28,683           25,335             27,603

Net asset value per Ordinary Share                              £143.41          £126.67            £138.01





Cash Flow Statement
                                                          Six months to    Six months to         Year ended
                                                           30 September     30 September           31 March
                                                                   2006             2005               2006
                                                              Unaudited        Unaudited            Audited
                                                                  £'000            £'000              £'000

Net cash inflow from operating activities                           488              349                710
Returns on investments and servicing of finance                   (136)             (78)              (185)
Taxation                                                           (10)              (3)                (4)
Financial investment                                               (65)          (1,118)            (2,716)
                                                                    277            (850)            (2,195)

Equity dividends paid                                             (350)            (310)              (310)
Decrease in cash                                                   (73)          (1,160)            (2,505)

Reconciliation of net cash flow to movement in net debt
Decrease in cash in the period                                     (73)          (1,160)            (2,505)
Exchange movements                                                 (85)               53                 61
Opening net debt                                                (4,037)          (1,593)            (1,593)
Closing net debt                                                (4,195)          (2,700)            (4,037)

Represented by
Cash at bank                                                      1,471              937              1,467
Overdrafts                                                      (5,666)          (3,637)            (5,504)
                                                                (4,195)          (2,700)            (4,037)

Reconciliation of operating profit to net cash
inflow from operating activities
Profit before finance costs and taxation                          1,573            1,917              4,301
Gains on investments held at fair value                         (1,180)          (1,527)            (3,512)
Losses/(gains) on exchange movements                                 85             (53)               (61)
Decrease in other debtors                                            23                8                23)
Decrease/(increase) in accrued income                                53               10               (34)
Decrease in creditors                                              (66)              (6)                (7)
Net cash inflow from operating activities                           488              349                710




Notes

1.  The financial information for the year ended 31 March 2006 included in this
    half-year report has been based upon the Company's full accounts, which for 
    the year to 31 March 2006 carry an unqualified audit report and did not 
    include statements under Section 237(2) or (3) of the Companies Act
    1985 and which have been filed with the Registrar of Companies.

2.  The financial statements for the period to 30 September 2006 have been 
    prepared on a basis consistent with the accounting policies adopted by the 
    Company in its statutory accounts for the year ended 31 March 2006.

3.  The Income Statement for the six months ended 30 September 2006, six months 
    to 30 September 2005 and year to 31 March 2006 have been prepared in 
    accordance with the Statement of Recommended Practice issued in January 2003
    revised December 2005, 'Financial Statement of Investment Trust Companies' 
    which have been adopted by the Company.

4.  The Income Statement includes the results of the Company and together with 
    the Reconciliation of Movements in Shareholders' Funds, Balance Sheet, and 
    Cash Flow Statement at 30 September 2006, are unaudited and do not 
    constitute full statutory accounts within the meaning of Section 240 of the
    Companies Act 1985.

5.  The net asset value per Ordinary Share is based on net assets at 
    30 September 2006 of £28,683,000 (31 March 2006: £27,603,000 and 
    30 September 2005: £25,335,000) and on 200,000 Ordinary Shares in 
    issue at 30 September 2006 (31 March 2006 and 30 September 2005: 200,000).

6.  Returns per Ordinary Share: The total return per Ordinary Share is based 
    on net gain on ordinary activities after taxation of £1,430,000 for the 
    six months to 30 September 2006 (31 March 2006: £4,100,000 and 30 September
    2005: £1,832,000) divided by 200,000 (31 March 2006 and 30 September 2005:
    200,000) Ordinary Shares being the weighted average number of Ordinary 
    Shares in issue during the period.

    The total return per Ordinary Share figure detailed above can be further 
    analysed between revenue and capital, as below:

    Revenue return:

    The revenue return per Ordinary Share is based on net gain on ordinary 
    activities after taxation of £265,000 for the six months to 30 September 
    2006 (31 March 2006: £487,000 and 30 September 2005: £243,000) divided by 
    200,000 (31 March 2006 and 30 September 2005: 200,000) Ordinary Shares 
    being the weighted average number of Ordinary Shares in issue during the 
    period.

    Capital return:

    The capital return per Ordinary Share is based on net gain on ordinary 
    activities after taxation of £1,165,000 for the six months to 30 September 
    2006 (31 March 2006: £3,613,000 and 30 September 2005: £1,589,000) divided 
    by 200,000 (31 March 2006 and 30 September 2005: 200,000) Ordinary Shares 
    being the weighted average number of Ordinary Shares in issue during the 
    period.

7.  The investment in Lindsell Train Limited (representing 25% of the Manager) 
    is held as part of the investment portfolio. Accordingly, the shares are 
    accounted for and disclosed in the same way as other investments in the 
    portfolio. The valuation of the Company's investment in the Manager, 
    Lindsell Train Limited, is calculated at the end of each quarter on the 
    basis of fair value as determined by the Directors of the Company. The 
    valuation process is formula based and takes into account inter alia, the
    net assets of Lindsell Train Limited, the value of the funds under 
    management and the moving average of its monthly earnings.

8.  Following the publication of the Investment Entities (Listing Rules and 
    Conduct of Business) Instrument 2003, on 29 October 2003 the Company 
    announced that it is the Company's policy to invest no more than 15% of 
    its gross assets in other UK listed investment companies (including UK 
    listed investment trusts) as defined in Listing Rule 15.

9.  It is the intention of the Directors to conduct the affairs of the Company 
    so that it satisfies the conditions for approval as an Investment Trust 
    Company set out in section 842 of the Income and Corporation Taxes Act 1988.

10. The Interim Report will be sent to shareholders shortly.



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