Interim Results

Elderstreet Downing VCT PLC
21 August 2001




ELDERSTREET DOWNING VCT PLC



INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2001



CHAIRMAN'S STATEMENT



I am pleased to present the interim statement for Elderstreet Downing VCT plc
for the six months ended 30 June 2001.



Venture capital investments

During the period the Company made one partial disposal and one full disposal.
Following a successful fundraising by Interlink Foods plc in January 2001, the
Company took the opportunity of to dispose of approximately one third of its
holding giving rise to realised gains against original cost of £191,000, being
an uplift of 127%.



Since the period end the Investment Manager has successfully negotiated the
disposal of the Company's holding in Food Packaging Systems Limited, which
originally cost £800,000, for £1.4 million.  As a result of the agreement, the
Directors have valued the holding at £1.4 million at 30 June 2001.



The company has also made five follow on investments during the period
totalling £516,000.



Fixed interest investments

The balance of the portfolio is invested in shares and bonds and continues to
be managed by Cazenove Fund Management Limited.  Returns from these
investments have been broadly in line with our expectations with the portfolio
giving rise to unrealised capital losses of £13,000 during the period.



Format of accounts

As discussed in my year end statement, the Company has revoked investment
company status and, as a result, now includes a Profit and Loss account, and a
Statement of Total Recognised Gains within its financial statements.



Results and Dividend

The net asset value per share ('NAV') at the period end was 100.1p.  This
represents a small increase of 0.1p per share (before taking account of the
dividend described below) when compared to the NAV at 31 December 2000.  The
profit after taxation for the period was £100,000 (0.7p per share).



An interim dividend of 1.5p per share will be paid on 28 September 2001 to
shareholders on the register at 14 September 2001.  Following the payment of
this dividend shareholders will have received total dividends of 19.0p per
share (including tax credits where applicable) since the commencement of the
Company.



Repurchase of shares

The Directors are 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 at least five years in order to retain
their tax benefits.  The Directors are continuing to monitor the market in the
Company's shares and will make share purchases when appropriate. During the
period the Company purchased a total of 18,500 shares.



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

The Company continues to make satisfactory progress despite the difficult
market conditions which have persisted for the technology and
telecommunications sectors.  It should be noted that the Company does have
significant exposure to these sectors and, accordingly, the Investment Manager
is closely monitoring investee companies to ensure that their performance is
to target.  The Company is continuing to seek suitable opportunities to
realise gains on disposals of investments and, when appropriate, to pass those
gains on to shareholders by way of dividends.





David Brock

Chairman

                                                               21 August  2001


UNAUDITED PROFIT AND LOSS ACCOUNT

for the six months ended 30 June 2001
                                                Six months    Six months    Year
                                                     ended         ended   ended
                                                                          31 Dec
                                              30 June 2001       30 June    2000
                                                                    2000

                                                           (as restated)
                                                     £'000         £'000  £'000
Investment income                                      228           320    711
Investment management fees                           (131)         (137)  (288)
Other expenses                                       (117)         (110)  (248)
Operating (loss)/ profit                              (20)            73    175


Net movement on permanent diminution                  (59)             - (2,896)
provision
Profit/ (loss) on realisation of investments           180           566 (1,038)
Profit/ (loss) on ordinary activities before           101           639 (3,759)
taxation

Tax on ordinary activities                             (1)          (20)   (31)

Profit/ (loss) on ordinary activities after            100           619 (3,790)
taxation

Dividends                                            (227)       (1,514) (1,816)

Retained (loss) for the year                         (127)         (895) (5,606)

Earnings per share                                    0.7p          0.4p (25.0p)



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.



The comparative figures were in respect of the six months ended 30 June 2000
and the year ended 31 December 2000 respectively.





STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

for the six months ended 30 June 2001


                                                        £'000    £'000    £'000
Profit/ (loss) on ordinary activities after taxation      100      619  (3,790)
Unrealised (losses)/gains on revaluation of              (34)  (2,878)    2,035
investments
Total recognised gains and losses for the period           66  (2,259)  (1,755)
Recognised gains brought forward                        3,545    5,300    5,300
Recognised gains carried forward                        3,611    3,041    3,545



UNAUDITED SUMMARISED BALANCE SHEET
as at 30 June 2001


                                        30 June              30 June     31 Dec
                                           2001                 2000       2000
                                          £'000                £'000      £'000
                                                       (as restated)
Fixed assets
Venture capital investments              12,721               14,093     12,688
Listed fixed income investments           1,438                1,435      1,450
                                         14,159               15,528     14,138
Net current assets                          949                1,098      1,206

Net assets                               15,108               16,626     15,344

Capital and reserves
Called up share capital                     755                  756        755
Share premium account                         -               13,636          -
Capital redemption reserve                    3                    1          2
Revaluation reserve                       2,964                1,650      3,057
Special reserve                          11,386                    -     11,530
Profit and loss account                       -                  583          -
Total shareholders' funds                15,108               16,626     15,344

Net asset value per share                100.1p               109.8p     101.5p

UNAUDITED CASHFLOW STATEMENT

for the six months ended 30 June 2001
                                                        Six   Six months    Year
                                                      months       ended   ended
                                                       ended              31 Dec
                                                                 30 June   2000
                                                     30 June        2000
                                                        2001

                                                       £'000       £'000  £'000
Cash (outflow)/ inflow from operating activities
and returns on investments
                                                         (1)          60   (11)
(see note 1 below)

Equity dividends paid                                  (302)           - (1,665)

Taxation - corporation tax repayment                      89           -      -

Investing activities

Purchase of listed fixed income securities                 -           -  (598)
Purchase of venture capital investments                (516)     (3,203) (5,904)
                                                       (516)     (3,203) (6,502)
Proceeds on disposal of fixed income securities            -         940  1,538
Proceeds on disposal of venture capital investments      751       3,175  6,225

Net cash inflow from investing activities                235         912  1,261

Net cash inflow/ (outflow) before financing               21         972  (415)

Financing

Purchase of own shares                                  (17)           -   (20)
Net cash outflow from financing                         (17)           -   (20)

Increase/ (decrease) in cash (see note 2 below)            4         972  (435)

Notes to the cashflow statement:
1      Cash outflow from operating activities and
returns on investments
Operating (loss)/ profit                                (20)          73    175
Decrease/ (increase) in prepayments, accrued income
and other debtors
                                                          45        (63)  (218)
Increase/ (decrease) in accruals and other              (26)          50     32
creditors
                                                         (1)          60   (11)

2      Analysis of changes in cash during the
period
Beginning of period                                      814       1,249  1,249
Net cash inflow/(outflow)                                  4         972  (435)
End of period                                            818       2,221    814


NOTES


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


2.    The calculation of the earnings per share for the period is based upon
the net return after tax of  £100,000 divided by the weighted average number
of shares in issue during the period of 15,111,000.


3.    The unaudited financial statements set out above do not constitute
statutory accounts within the meaning of Section 240 of the Companies Act 1985
and have not been delivered to the Registrar of Companies.  The figures for
the year ended 31 December 2000 have been extracted from the financial
statements for that year, which have been delivered to the Registrar of
Companies; the auditors' report on those financial statements was unqualified.


4.    Copies of the unaudited interim results will be sent to shareholders
shortly. Further copies can be obtained from the Company's Registered Office.