Preliminary Interim Results

Taverners Trust PLC
22 December 2000


Announcement of Unaudited Interim Results
for the six months to 31 October 2000

During the half year between 1 May and 31 October 2000 the Net Asset Value of
Taverners Trust fell back by a further 7.5% to 99.4p during a period when the
All Share Index advanced by 2.4%.  This disappointing performance has to be
viewed against the background of a decline in our benchmark Restaurant,
Brewery and Pub Index over the same period of 21.6%.  We wrote in the
Manager's Review on 3 July that we were optimistic that the level of share
prices in the Brewery sector would eventually improve because it was an area
that produced profits, dividends and cash flow and we felt sure that investors
would in due course return to these old-fashioned attributes.  A number of
depressing factors affected the sector during the half-year and we ended by
saying that 'a measure of patience looks still to be in order until some of
these issues are resolved and the traditional trading strengths of the sector
regain favour'.  The position six months on remains broadly similar except
there are reasons for believing patience may soon be rewarded.

First let us enumerate the problems that have beset the sector.  Most
obviously pubs and breweries are part of the 'old economy' at a time when some
fund managers are concentrating on 'new economy' stocks.  Next the period has
been dominated by restructuring activity on the part of the major brewers in
response to the perception that both their brewing and pub businesses have
gone ex-growth.  In addition the government has been imposing a large number
of regulations which together with the effects of the Working Time Directive
and the Minimum Wage have raised the threshold at which it is better to manage
a house rather than let it to a tenant.  The regionals in particular have
therefore been moving significant numbers of managed houses to tenancy.  This
has been more difficult for the majors who hold a large number of unbranded
managed houses in areas which the younger generation are forsaking for the
town centre circuit.  In the larger companies the walls between the tenanted
and managed profit centres are so strong that they have difficulty in
transferring houses between the two; indeed Bass have no option but to sell
underperforming managed houses having disposed of their tenanted estate three
years ago.  The intended sale of the whole of the Whitbread pub estate as well
as that of a substantial proportion of the Bass and Scottish & Newcastle
estates has suggested to investors that pub values are likely to fall; but in
fact these large parcels may even achieve lotting premia as a result of the
prevailing venture capital interest in securitising pub revenues.

The result of the majors' difficulties has been to create a perception that
all companies running pubs are suffering from flat profitability.  This is far
from being the case and a number of the small companies in which your Trust is
invested are making excellent progress; indeed the stance adopted by Taverners
of investing in the industry's smaller companies and avoiding the nationals
has been vindicated during the past six months; we simply need to wait until
the rest of the market wakes up to this circumstance.

The sector has also been affected by other matters.  In July we expected the
Review of the Beer Orders to be published in early September; in fact although
the OFT delivered the Review to the DTI in July, the latter did not publish it
until late November when it proved as benign as we expected.  The shares of
Enterprise Inns rose from low levels in November on reporting good figures but
the removal of the Beer Order uncertainty will also have helped this rise.

Throughout the half-year the dialogue with the government over licensing has
been continuing and the immediate outlook for the pubs has not been improving.
 Rising crime figures have left the Home Secretary with little option but to
take some sort of radical action.  His response has been to cherry pick the
more negative measures from the Licensing White Paper and incorporate them in
an Act of Parliament foreshadowed in the recent Queen's Speech and directed
against the so called 'yob' culture; at the same time the Association of Chief
Police Officers have indicated their unhappiness with one of the central
principles of the government's reform - namely transfer of the jurisdiction
over licensing from the magistrates to the local authorities.  While this
action by the police has made further government review necessary, the pub
trade associations who thought the transfer to the local authorities was the
price they were paying for a relaxation of the regime on hours are now
concerned that they may get nothing in return.  Additionally, if the
government do not permit the longer hours which will enable phased closing to
be adopted they may not get the improvement in behaviour they seek.

In September the Yates Group produced a bombshell of a profit warning that
damaged the share prices of the other managed pubcos notably Wetherspoon and
SFI Group which is Taverners' largest holding and accounts for 8% of our
portfolio following their acquisition of Slug and Lettuce (which we also
held).  In fact there are strong reasons for thinking that the problems Yates
is suffering are specific to that company which had failed to keep the Wine
Lodge updated and had allowed service standards to slip.  There are no signs
that either Wetherspoon or SFI are facing these problems and SFI's prospects
are for 30% earnings growth in each of the next two years.

We have described above some of the influences which have led to the rather
dismal progress of the pub sector over the past half-year.  We believe however
that underlying trade is good and that investors who have endured misfortunes
with technology stocks may once again be watching the sector closely as a
number of companies such as Belhaven, Burtonwood and the restaurant group Ask
Central continue to produce good results.  Because of the poor sentiment
towards the sector, some of the reasons for which have been outlined above, it
is unlikely that the market will re-rate it until some really good news is
available.  It is possible that this will come with seasonal trading
statements in January as the festive days fall favourably this year and
comparisons should benefit from last year's flat Millennium New Year trading. 
We therefore hope our investors' patience will soon be rewarded.

Sadly we have to report the death of one of our Directors, Neil Scourse, who
was not only a person of great charm but an expert deriving his knowledge from
his years as a senior analyst of the brewery industry, first at Fielding
Newson Smith and latterly at BZW. We are fortunate indeed that Dr Martin
Hawkins has accepted our invitation to join the Board.  Martin has recently
retired from the post of drinks industry analyst at stockbroker Greig
Middleton and we are delighted to have been able once again to attract as a 
non executive director someone with a deep knowledge and wide experience of
our sector.

Lionel Ross
Chairman
22 December 2000

The unaudited results were:

Statement of total return (incorporating the revenue account*)
For the six months to 31 October 2000

                                                   Six months ended
                                                    31 October 2000
                                                       (unaudited)
                                            Revenue      Capital        Total
                                              £'000        £'000        £'000

Losses on investments                             -       (1,268)      (1,268)
                     
Income                                          310            -          310
Investment management fee                       (70)         (70)        (140)
Other expenses                                  (94)           -          (94)
                                             ______        ______      ______
Net return before
finance costs and taxation                      146        (1,338)     (1,192)
Interest payable and similar charges            (52)          (51)       (103)
                                             ______        ______      ______
Return/(loss) on
ordinary activities before tax                   94        (1,389)     (1,295)
Tax on ordinary activities                       (2)            1          (1)
                                             ______        ______      ______
Transfer to/(from) reserves                      92        (1,388)     (1,296)
                                             ======        ======      ======
Return per Ordinary share (pence):                     
- Basic                                        0.58         (8.71)      (8.13)
                                             ======        ======      ======




                                                   Six months ended
                                                    31 October 1999
                                                       (unaudited)
                                                        (restated)
                                            Revenue      Capital        Total
                                              £'000        £'000        £'000

Gains on investments                              -        2,390        2,390
                     
Income                                          285            -          285
Investment management fee                       (82)         (82)        (164)
Other expenses                                  (90)           -          (90)
                                             ______        ______      ______
Net return before 
finance costs and taxation                      113        2,308        2,421
Interest payable and similar charges            (52)         (52)        (104)
                                             ______        ______      ______
Return on ordinary activities before tax         61        2,256        2,317
Tax on ordinary activities                       (6)           3           (3)
                                             ______        ______      ______
Return attributable to Ordinary
shareholders transferred to reserves             55        2,259        2,314
                                             ======        ======      ======
Return per Ordinary share (pence):  
- Basic                                        0.35        14.23        14.58
                                             ======        ======      ======
                     

* The Statements of Total Return presented above are in accordance with the
Statement of Recommended Practice for Financial Statements of Investment Trust
Companies.  The revenue column of this statement represents the profit and
loss account of the Company.

Balance Sheet of the Company as at 31 October 2000

                                         31 October   31 October     30 April 
                                               2000         1999         2000
                                         (unaudited)  (unaudited)    (audited)
                                              £'000        £'000        £'000
Fixed assets                     
Investments                                  18,785       23,593       19,308
Current assets
Debtors                                         180          167           56
Cash at bank and in hand                         15          249        1,540
                                             ______       ______       ______
                                                195          416        1,596
Creditors:
amounts falling due within one year            (144)        (328)        (772)
                                             ______       ______       ______
Net current assets                               51           88          824
                                             ______       ______       ______
Total assets less current liabilities        18,836       23,681       20,132
Creditors:
Amounts falling due after one year           (3,000)      (3,000)      (3,000)
                                             ______       ______       ______
Total net assets                             15,836       20,681       17,132
                                             ======       ======       ======
Capital and reserves                     
Called-up share capital                       3,984        3,984        3,984
Share premium account                        10,536       10,536       10,536
Other reserves                     
    Warrant reserve                             981          981          981
    Capital reserve - realised                1,830        1,856        2,064
    Capital reserve - unrealised             (1,749)       3,161         (595)
Revenue reserve                                 254          163          162
                                             ______       ______       ______
Total shareholders' funds                    15,836       20,681       17,132
                                             ======       ======       ======
Net asset value per Ordinary share (pence):                     
Basic                                         99.37       129.78       107.51
                                             ======       ======       ======
Diluted                                         N/A       124.95       106.29
                                             ======       ======       ======

Cash Flow Statement
For the six months to 31 October 2000

                                         Six months ended   Six months ended
                                               31 October         31 October
                                                     2000               1999
                                               (unaudited)        (unaudited)
                                                    £'000              £'000
                            
Net cash inflow from operating activities              29                 32

Net cash outflow from servicing of finance           (101)              (115)

Net tax (paid)/recovered                               (1)                 5

Net cash outflow from financial investment         (1,437)              (363)

Equity dividends paid                                 (64)               (48)
                                                   ______             ______
Net cash outflow before financing                  (1,574)              (489)

Net cash inflow from financing                          -                 88
                                                   ______             ______
Decrease in cash                                    1,574)              (401)

Reconciliation of operating revenue
to net cash inflow from operating activities                            
Net revenue before finance costs and taxation         146                113
Increase in accrued income                             (9)               (14)
Increase in other debtors                              (1)                (4)
(Decrease)/increase in other creditors                (35)                19
Capitalised expenses taken
to non distributable reserves                         (72)               (82)
                                                   ______             ______
Net cash inflow from operating activities              29                 32
                                                   ======             ======

Reconciliation of net cash
inflow to movements in net debt                            
Decrease in cash as above                          (1,574)              (401)
Net debt at 1 May                                  (1,460)            (2,350)
                                                   ______             ______
Net debt at 31 October                             (3,034)            (2,751)
                                                   ======             ======

Represented by:                            
Cash at bank                                           15                249
Bank overdraft                                        (49)                 -
Debt falling due after more than one year          (3,000)            (3,000)
                                                   ______             ______
                                                   (3,034)            (2,751)
                                                   ======             ======
Notes:

1  The interim financial statements have been prepared in accordance with
applicable accounting standards and under the historic cost convention as
modified to include the revaluation of fixed asset investments.

2  The breakdown of income for the periods to 31 October 2000 and 31 October
1999 was as follows:

                                          31 October 2000     31 October 1999 
                                                                    (restated)
                                                    £'000               £'000
Income from investments
Franked investment income (net)                       299                 252
Unfranked investment income (gross)                     5                  23
                                                   ______              ______
                                                      304                 275
                                                   ______              ______
Other income                            
Deposit income                                          6                  10
                                                   ______              ______
Total income                                          310                 285
                                                   ======              ====== 
                          

With effect from 1 May 2000 franked investment income is presented excluding
attributable tax credits.  Previously, franked investment income was presented
including attributable tax credits, which were then also included within the
charge for taxation.  The change, which has no effect on the net income after
taxation for the period, has been made to comply with FRS 16 'Current Tax';
comparative figures have been restated.  The effect of this change in
presentation is to decrease franked investment income and the tax charge in
2000 by equal amounts of £33,000 (1999 - £29,000) resulting in no net change
in the net income after taxation for the period for either 2000 or 1999.

3  The interim financial statements for the period ended 31 October 2000 are
unaudited and do not constitute statutory accounts.   The financial
information for the year ended 30 April 2000 has been abridged from published
accounts that have been delivered to the Registrar of Companies and on which
the report of the auditors was unqualified.

4  In accordance with stated policy, no interim dividend has been declared
(1999 - nil).

5  The basic revenue return per Ordinary share is based on net revenue on
ordinary activities after taxation of £92,000 (1999 - £55,000) and on
15,936,000 Ordinary shares, being the weighted average number of Ordinary
shares in issue for the period (1999 - 15,877,174).

6  The basic capital return per share is based on net capital losses of
£1,388,000 (1999 - gains of £2,259,000 loss) and on 15,936,000 Ordinary
shares, being the weighted average number of Ordinary shares in issue for the
period (1999 - 15,877,174).

7  The fully-diluted returns per Ordinary share have not been shown for the
periods to 31 October 2000 and 1999 in accordance with FRS14 'Earnings per
Share' as there is no dilution in earnings resulting from the Warrants in
issue as the average share prices for the periods are less than the exercise
price of the Warrants.

8  The fully-diluted net asset values per Ordinary share have been calculated
by reference to the total number of shares in issue at the period end and on
the assumption that those Warrants which are not exercised at the period end,
amounting to 3,081,600 Warrants (31 October 1999 and 30 April 2000 -
3,081,600), were fully exercised on the first day of the financial period at
100p per share, giving a total of 19,017,600 Ordinary shares.  No calculation
has been shown as at 31 October 2000 as the exercise price of the Warrants,
being 100p, exceeded the value of the basic net asset value.

9  Copies of the Interim Report will be posted to all shareholders and warrant
holders in due course. Copies may be obtained from One Bow Churchyard,
Cheapside, London EC4M  9HH.


Aberdeen Asset Management PLC
- Secretaries
22 December 2000

Review report by Ernst & Young to The Taverners Trust PLC

Introduction
We have been instructed by the Company to review the financial information set
out above and we have read the other information contained in the Interim
Report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.

Directors 'responsibilities
The Interim Report, including the financial information contained therein, is
the responsibility of, and has been approved by, the Directors. The Listing
Rules of the Financial Services Authority require that the accounting policies
and presentation applied to the interim figures should be consistent with
those applied in preparing the preceding annual accounts except where they are
to be changed in the next annual accounts in which case any changes, and the
reasons for them, are to be disclosed.

Review work performed
We conducted our review in accordance with guidance contained in Bulletin
1999/4: 'Review of Interim financial information' issued by the Auditing
Practices Board. A review consists principally of making enquiries of
management and applying analytical procedures to the financial information and
underlying financial data and, based thereon, assessing whether the accounting
policies and presentation have been consistently applied unless otherwise
disclosed. A review excludes audit procedures such as tests of controls and
verification of assets, liabilities and transactions.  It is substantially
less in scope than an audit performed in accordance with Auditing Standards
and therefore provides a lower level of assurance than an audit. Accordingly
we do not express an audit opinion on the financial information.

Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 October 2000.

Ernst & Young
London
22 December 2000