Interim Results

ELDERSTREET DOWNING VCT PLC
28 September 1999
                                      

CHAIRMAN'S STATEMENT

I  am pleased to present the interim statement for Elderstreet Downing VCT plc
for  the  six months ended 30 June 1999.  As detailed below, your Company  has
made good progress to date.  A total of £8.5 million has now been invested  in
24  smaller  UK businesses.  There has been little movement in your  Company's
net  assets  since  all  unquoted investments are still  valued  at  cost.   A
detailed  review  of  the  Company's  investments  will  be  provided  in  the
forthcoming Annual Report.

Results and dividend
The  revenue return after taxation was £226,000 (1.5p per share).   The  Board
has  proposed payment of an interim dividend of 1.5p per share in  respect  of
the  half  year  to  30 June 1999, which will be paid on 15  October  1999  to
shareholders on the register on 8 October 1999.  The final  dividend will  be 
determined  in the light of the results of  the  full  year,  but  a reduction
in yield is to be expected in the short-term as the venture  capital
portfolio is built.

Investments
During  the  half  year, £4.6 million has been invested  in  ten companies, 
resulting in total funds invested of £6.7 million in 15 companies.

Since  30  June  1999  a  further  £1.8 million  has  been  invested  in  nine
companies. Therefore approximately 60% of net funds raised  has  been invested
within  18 months and a  number of other investment  opportunities are 
currently  the  subject  of detailed review  by  Elderstreet  Investments
Limited. 

The  balance of the portfolio, which continues to be managed by Cazenove  Fund
Management  Limited, is invested in shares, bonds and bank deposits.   Revenue
returns  to  date  from  these  investments are  in  line  with  our  original
expectations.  

Balance sheet
Venture  capital investments have been valued in accordance with  the  British
Venture  Capital Association guidelines, under which unquoted investments  are
not  normally  revalued above cost for at least 12 months after  the  date  of
investment.

The  net asset value at 30 June 1999 was 94.2p per share compared to 94.7p  at
31 December 1998 and 94.4p at this time last year.

Share repurchase and share premium account cancellation
Your Board is conscious that the Company's share price, is affected by the
illiquidity of its shares in the market, resulting from the requirement that
shareholders must retain their shares for at least five years in order to
retain their tax benefits.  The Company therefore has a policy of purchasing
its own shares and during the period has repurchased 5,000 Ordinary shares at
90p per share, which have subsequently been cancelled.

In  order to facilitate share buy-backs, your Board will shortly be submitting
proposals  to shareholders, which will be subject to an Extraordinary  General
Meeting.   These proposals would, if accepted, re-designate the share  premium
account as a reserve which would be available to fund share purchases, without
affecting the Company's ability to pay dividends.

Publication of share price
Elderstreet  Downing  VCT plc's share price continues  to  be  quoted  in  the
Financial Times on a daily basis in the 'Investment Companies' section.

Outlook
Your  Board is generally satisfied with the progress of the companies in which
it has invested and with the overall composition and balance of the portfolio,
with  its  emphasis  on business with high growth potential.   The  Board  has
enjoyed  the  benefit  of  good  deal  flow  and  anticipates  continuing  its
investment  programme  so  that the Company will achieve  its  VCT  qualifying
target of 70% funds invested, well ahead of schedule.

D.Brock
Chairman                                    28 September 1999


UNAUDITED STATEMENT OF TOTAL RETURNS (incorporating the revenue account)
for the six months ended 30 June 1999

                Six months ended         Period   ended         Period
                   30 June 1999           30 June 1998          31 Dec
                                                                1998
               Revenue Capital Total  Revenue  Capital  Total   Total
                 £000   £000   £000   £000      £000    £000    £000
(Losses)/gains   -      (13)   (13)   -         (55)    (55)     18
on investments
Income          436      -     436    234        -      234     761
Management      (29)   (89)   (118)   (18)      (42)    (60)   (174)
fees
Other expenses (101)     -    (101)   (47)        -     (47)   (177)
Return on 
ordinary
activities
before 
taxation        306   (102)    204    169       (97)     72     428
Tax on  
ordinary
activities      (80)    23     (57)   (44)       11     (33)   (108)

Return  
attributable
to equity
shareholders     226   (79)    147    125       (86)     39     320

Net dividends   (227)   -     (227)  (121)       -     (121)   (364)
Transfer (from)/
to reserves       (1)  (79)    (80)     4       (86)    (82)    (44)
Return per
share            1.5p  (0.5)p  1.0p   1.2p     (0.8)p   0.4p    2.4p

                                                          
The  revenue  column of this statement is the profit and loss account  of  the
Company.

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

The  Company  has  only  one class of business and  derives  its  income  from
investments made in shares, securities and bank deposits.

No operations were acquired or discontinued in the period.

The  comparative figures were in respect of the period from incorporation   on
26 August 1997 to 30 June 1998 and 31 December 1998 respectively.
The Company commenced trading on 27 February 1998.


UNAUDITED SUMMARISED BALANCE SHEET
as at 30 June 1999

                           30 June      30 June    31 December
                            1999          1998        1998
                            £000          £000        £000
Fixed assets                                       
Venture capital
investments                 6,789          608        2,090

Listed fixed income  
investment                  6,928        7,680        7,685
                           13,717        8,288        9,775
                                                   
Cash at bank                  492        6,755        4,529
Debtors                       353          701          419
                                                   
Creditors amounts due
within one year              (292)      (1,999)        (373)

Net assets                 14,270       13,745       14,350
                                                   
Capital and reserves                               
Called up share capital       758          728          758
Share premium account      13,636       13,099       13,636
                           14,394       13,827       14,394
                                                   
Capital reserve              (158)        (86)          (81)
Revenue reserve                34           4            37
                             (124)        (82)          (44)
                                                   
Total shareholders'  
funds                      14,270       13,745       14,350
                                                   
Net asset value  
per share                    94.2p        94.4p        94.7p
                   

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS

1.   The above financial information has been prepared on the basis of the
 accounting policies set out in the Annual Report.

2.   The unaudited financial statements set out above do not constitute
 statutory accounts within the meaning of Section 240 of the Companies Act
 1985.

3.   The calculation of the revenue and capital returns per share for the
 period is based upon the net revenue earnings and net capital losses after
 tax of £226,000 and £79,000 respectively, divided by the weighted average
 number  of shares in issue during the period.

4.   Copies of the unaudited interim results are being sent to shareholders by
 15 October 1999.  Further copies can be obtained from the Company's
 Registered Office.