Interim Results

Elderstreet Downing VCT PLC
28 September 2004


Elderstreet Downing VCT plc
Interim Statement for the six-months ended 30 June 2004

CHAIRMAN'S STATEMENT

The first half of 2004 has been a more stable period in terms of investor
sentiment than we have experienced at other times over the last few years.  As a
result of these conditions, we have seen welcome progress being made by some of
the Company's investments.

Net Asset Value

At 30 June 2004, the Company's Net Asset Value per share ('NAV') stood at 62.3p,
an increase of 5.8p or 10.3% compared to the NAV at 31 December 2003.

Venture capital investments

The Company made two follow-on investments in the period.  A further investment
of £150,000 was made in The National Solicitors' Network Limited, to fund
expansion, and another £150,000 was invested in Snacktime Limited, being a
drawdown of funds which were earmarked at the time of the original investment.
The Investment Manager has also been actively seeking new investments although
none were completed in the period.

In reviewing the valuations of the unquoted investments, the Board has made a
number of changes since the previous valuations at 31 December 2003.   Improved
trading performances have lead to increases in the valuations of Fords Packaging
Systems Limited, The National Solicitors' Network Limited and Wessex Advanced
Switching Products Limited of £450,000, £250,000 and £112,000 respectively.
Berkeley Scott Limited is also now starting to improve after a difficult period
and a provision previously made against the investment has been reduced by
£176,000.  Additionally the valuation of AIM-quoted Computer Software Group Plc
has increased by £322,000 as the company has made good progress which has been
reflected in its share price.

Although there have also been some smaller decreases in the valuations of other
investments, overall the venture capital portfolio has increased in value by
£987,000 over the period.

Dividend

An interim dividend of 1p per share will be paid on 29 October 2004 to
Shareholders on the register at 8 October 2004.  This will comprise 0.3p per
share revenue dividend and 0.7p per share capital dividend, being the
distribution of gains realised in early periods.  This will bring total
dividends paid to Shareholders since launch to 27.5p per share.

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 fact that investors
purchasing 'second-hand' shares do not benefit from income tax relief on their
investment.

The Directors continue to monitor the market in the Company's shares and will
make share purchases when appropriate.  During the period the Company
repurchased 110,100 shares, at an average price of 43p per share, for
cancellation.

Directorate

The Board undertook a review of running costs of the Company during the period
and concluded that, as the Company now has a well developed venture capital
portfolio and is less actively investing than in earlier years, some savings
could be achieved by reducing the size of the Board.

In addition to the resignation of Chris Kay, as announced in the last Annual
Report, Gareth Pearce and Richard Hargreaves also agreed to resign as Directors
with effect from 17 June 2004.  I would like to thank both of them for their
contribution since the Company's launch in 1998.

The Company now has a Board of four non-executive Directors, of which three are
independent of the Investment Manager.  The Board feels that this is an
appropriate number of Directors for a venture capital trust of this size and at
this stage in its life.

Publication of share price

The Company's share price continues to be quoted in the Financial Times on a
daily basis in the 'Investment Companies' sector, under the abbreviation '
EldDnVCT'.  The share price can also be found on various financial websites with
the TIDM/EPIC code 'EDV'.

Outlook

Generally, news from investee companies is a little more positive than it has
been for some time.  There, however, continues to be a number of investments
which face significant challenges.  These companies are demanding close
attention from the Investment Manager.

The Manager also continues to pursue potential new investments and to evaluate
exit opportunities on an ongoing basis.  I hope to report developments arising
from these activities in the second half of the year in my statement with the
Annual Report covering the full year to 31 December 2004.

David Brock
Chairman


UNAUDITED SUMMARISED BALANCE SHEET
as at 30 June 2004


                                                 30 June              30 June              31 Dec
                                                    2004                 2003                2003
                                                   £'000                £'000               £'000
Fixed assets
Venture capital investments                        7,419                5,862               6,203

Net current assets                                 1,783                2,356               2,205
                                             ___________          ___________         ___________ 
Net assets                                         9,202                8,218               8,408
                                             ===========          ===========         ===========
Capital and reserves

Called up share capital                              738                  746                 744
Capital redemption reserve                            19                   11                  13
Revaluation reserve                                2,076                 (545)              1,227
Special reserve                                    6,369                8,006               6,424

                                             ___________          ___________         ___________ 
Total equity shareholders' funds                   9,202                8,218               8,408
                                             ===========          ===========         ===========

Net asset value per share                          62.3p                55.1p               56.5p



UNAUDITED PROFIT AND LOSS ACCOUNT
for the six months ended 30 June 2004

                                                             Six          Six         
                                                          months       months         Year
                                                           ended        ended        ended
                                                         30 June      30 June       31 Dec
                                                            2004         2003         2003
                                                           £'000        £'000        £'000

Investment income                                            151          194         291
Investment management fees                                   (62)         (74)       (131)
Other expenses                                               (87)         (89)       (173)
Operating profit/(loss)                                        2           31         (13)
                                                     ___________  ___________ ___________ 

Net movement on permanent diminution provision               679         (298)       (621)
Loss on realisation of investments                             -            -        (212)
                                                     ___________  ___________ ___________ 
Profit/(loss) on ordinary activities before taxation         681         (267)       (846)

Tax on ordinary activities                                     -            -           -
                                                     ___________  ___________ ___________ 
Loss on ordinary activities after taxation                   681         (267)       (846)

Dividends                                                   (147)        (149)       (297)
                                                     ___________  ___________ ___________ 
Retained profit/(loss) for period                            534         (416)     (1,143)
                                                     ===========  =========== ===========

Return/(loss) per share                                     4.6p        (1.8p)       (5.6p)



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.


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the six months ended 30 June 2004
                                                         £'000         £'000          £'000

Profit/(loss) on ordinary activities after taxation        681          (267)          (846)
Revaluations - non permanent diminutions                   308          (336)           597
                                                   ___________   ___________    ___________ 
Total recognised gains/(losses) for the period             989          (603)          (249)
                                                   ===========   ===========    ===========

Recognised losses brought forward                       (1,931)       (1,682)        (1,682)
                                                   ===========   ===========    ===========

Recognised losses carried forward                         (942)       (2,285)        (1,931)
                                                   ===========   ===========    ===========



UNAUDITED CASHFLOW STATEMENT
for the six months ended 30 June 2004

                                                                  Six           Six    
                                                               months        months          Year    
                                                                ended         ended         ended
                                                              30 June       30 June        31 Dec 
                                                                 2004          2003          2003
                                                      Note      £'000         £'000         £'000
Cash inflow from operating activities and returns on
investments
                                                        1           -            66           113
                                                          ___________   ___________   ___________ 
Taxation                                                            -             -             -
                                                          ___________   ___________   ___________ 

Capital expenditure

Purchase of venture capital investments                          (300)         (418)         (846)

Proceeds on disposal of listed fixed income                         -           800           800
securities

Proceeds on disposal of venture capital investments                72           621         1,116
                                                          ___________   ___________   ___________ 
Net cash (outflow)/inflow from capital expenditure               (228)        1,003         1,070
                                                          ___________   ___________   ___________ 


Equity dividends paid                                            (149)         (302)         (450)
                                                          ___________   ___________   ___________ 

Net cash (outflow)/inflow before financing                       (377)          767           733
                                                          ___________   ___________   ___________ 

Financing

Purchase of own shares                                            (56)          (57)          (79)
                                                          ___________   ___________   ___________ 
Net cash outflow from financing                                   (56)          (57)          (79)
                                                          ___________   ___________   ___________ 
(Decrease)/increase in cash                             2        (433)          710           654
                                                          ===========   ===========   ===========


Notes to the cashflow statement:


1  Cash outflow from operating activities and returns
on investments
Operating profit/(loss)                                             2            31           (13)
Decrease in other debtors                                           2            44           127
Decrease in other creditors                                        (4)           (9)           (1)
                                                          ___________   ___________   ___________ 
Net cash inflow from operating activities                           -            66           113
                                                          ===========   ===========   ===========


2  Analysis of net funds
Beginning of period                                             2,356         1,702         1,702
Net cash (outflow)/inflow                                        (433)          710           654
                                                          ___________   ___________   ___________ 
End of period                                                   1,923         2,412         2,356
                                                          ===========   ===========   ===========



SUMMARY OF INVESTMENT PORTFOLIO                                                             
as at 30 June 2004                                                                          % of
                                                                  Cost    Valuation    portfolio
                                                                 £'000        £'000     by value
Top ten venture capital investments
Computer Software Group plc *                                    1,462        1,724        23.2%
Ford Packaging Systems Limited                                      83        1,200        16.2%
Berkeley Scott Group plc                                           900          683         9.2%
The National Solicitors Network Limited                            856          650         8.8%
Wessex Advanced Switching Products Limited                          51          573         7.7%
European Telecommunications & Technology plc                       450          558         7.5%
Snacktime Limited                                                  550          550         7.4%
U M (Holdings) plc                                                 150          311         4.2%
Milkround Online Limited                                           250          295         4.0%
Henry J Bean's Group plc                                           587          250         3.4%
                                                           ___________  ___________ ___________ 
                                                                 5,339        6,794        91.6%
                                                           ===========  =========== ===========

Other venture capital investments                                2,728          625         8.4%
                                                           ===========  =========== ===========
Total investments                                                8,067        7,419       100.0%
                                                           ===========  =========== ===========


All venture capital investments are unquoted unless otherwise stated.
          
*    Quoted on the Alternative Investment Market ('AIM')


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 calculation of the earnings per share for the period is based upon the
     net profit after tax of £681,000 divided by the weighted average number of
     shares in issue during the period of 14,861,469.

3.   The unaudited financial statements set out herein 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 2003 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.


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