Interim Results

Schroder Income Growth Fund PLC
19 March 2003

Press Release

19 March 2003

                           Unaudited Interim Results

The Directors of Schroder Income Growth Fund plc announce the unaudited interim
results for the six months ended 28 February 2003:

Unaudited Preliminary Statement of Results


                                                           Six months ended                   Six months ended

                                                           28 February 2003                   28 February 2002
Statement of total return                            Revenue      Capital       Total    Revenue    Capital      Total
                                                       £'000        £'000       £'000      £'000      £'000      £'000
Realised losses on sales of investments                    -      (5,872)     (5,872)          -    (4,467)    (4,467)
Unrealised losses on investments                           -      (5,521)     (5,521)          -        161        161
Net losses on investments                                  -     (11,393)    (11,393)          -    (4,306)    (4,306)
Premia paid on purchase of warrants for                    -            -           -          -       (40)       (40)
cancellation
Income                                                 2,004            -       2,004      1,865          -      1,865
Investment management fees                             (230)        (230)       (460)      (244)      (244)      (488)
Performance fee                                            -        (105)       (105)          -      (126)      (126)
Administrative expenses                                 (96)            -        (96)       (93)          -       (93)
Return before finance costs and taxation return        1,678     (11,728)    (10,050)      1,528    (4,716)    (3,188)
on ordinary activities before taxation
Interest payable                                         (3)          (3)         (6)          -          -          -
Net return on ordinary activities before               1,675     (11,731)    (10,056)      1,528    (4,716)    (3,188)
taxation
Tax on ordinary activities                                 -            -           -          -          -          -
Return on ordinary activities after tax for the        1,675     (11,731)    (10,056)      1,528    (4,716)    (3,188)
period attributable to equity shareholders
Dividends:
1st interim dividend of 1.27p (2002:1.25p)per          (895)            -       (895)      (866)          -      (866)
share paid 31 January 2003
2nd interim dividend of 1.27p (2002:1.25p) per         (899)            -       (899)      (875)          -      (875)
share payable 30 April 2003
Transfer from reserves                                 (119)     (11,731)    (11,850)      (213)    (4,716)    (4,929)
Return per ordinary share                              2.39p     (16.70)p    (14.31)p      2.20p    (6.79)p    (4.59)p
Return per ordinary share diluted                      2.32p     (16.23)p    (13.91)p      2.11p    (6.52)p    (4.41)p
Dividends for the period per ordinary share            2.54p            -       2.54p      2.50p          -      2.50p





Unaudited Preliminary Statement of Results
                                                                         Six months ended              Six months ended

                                                                         28 February 2003              28 February 2002
Abridged Cash Flow Statement                                                        £'000                          £'000

Net cash inflow from operating activities                                           1,557                          1,357

Return on invetments and servicing of finance                                         (6)                              -

UK tax recovered                                                                        -                             29

Dividends paid                                                                    (2,364)                        (2,280)

Net cash (outflow)/inflow from investing activities                                  (95)                          4,419

Net cash inflow from financing                                                      1,032                            586


Net cash inflow                                                                       124                          4,111



                                                                      At 28 February 2003            At 31 August 2002
Assets                                                                              £'000                          £'000

Listed investments at market value                                                 89,616                        100,647

Net current assets                                                                  4,758                          4,545

Net Assets                                                                         94,374                        105,192


Net asset value per share (undiluted)                                             133.32p                        150.33p


Net asset value per share (diluted)                                               130.07p                        145.24p




Investment Manager's Review

Performance

The Company's diluted net asset value per share fell by 10.4% during the
six-month period ended 28 February 2003, compared to a fall in the FTSE
All-Share Index of 14.0%.

The Company's earnings per share for the six months ended 28 February 2003
increased by 8.6% at 2.39 pence per share, compared to 2.20 pence per share for
the corresponding six months ended 28 February 2002.









Market Background and Explanation of Performance

The market fell once again. Investors are concerned that the US economy may not
recover at the speed and strength that they once thought was possible. Indeed
some commentators are concerned that the high levels of indebtedness may cause
further problems in a world of limited nominal growth.

The Company's approach to investing has been relatively straightforward. We have
concentrated on companies with low valuations, good market positions and
relatively strong balance sheets. This approach has served the Company
relatively well during the period under review, notwithstanding the
disappointing absolute returns.

Portfolio Changes

The Company sold its entire holdings in EMI, Morgan Crucible, Wincanton,
Pilkington, Prudential and Rolls Royce. The Company took some profits in
Wellington Underwriting, James Smith Estates and ICAP. These proceeds have been
reinvested in Allied Domecq, Hanson, HSBC, BAT and Shell.

Outlook

Following a period when many companies have surprised the market by cutting
their dividends we need to be particularly diligent in assessing the
sustainability of a company's profit stream. In particular, companies need to
have strong franchises to enable them to grow their revenues during periods of
low nominal growth rather than relying on underlying inflation. In addition many
companies will find their debt burdens far harder to pay down in these
conditions.

The recovery in global growth will be weaker than in the past as it is reliant
on a recovery in corporate expenditure rather than the consumer. It is not clear
yet as to whether investors' expectations have fully adjusted to this, but
recent falls in stockmarkets suggest we may be getting closer. The main risks to
the speed and extent of any recovery are the imbalances that remain within the
US economy, namely the current account deficit and the heavily indebted US
consumer. Shareholders will be aware that this view has not changed
substantially since the last report.





Interim Report

The Interim Report will be sent by mail to shareholders and warrantholders at
their registered addresses in April 2003 and from the date of release, copies of
the Interim Report will be made available to the public at the Company's
registered office: 31 Gresham Street, London, EC2V 7QA.







                            Second Interim Dividend

                       For The Year Ending 31 August 2003

The Directors of the Company have declared the payment of a second interim
dividend of 1.27p net per share for the year ending 31 August 2003. This
represents an increase of 1.6% over the second interim dividend for the previous
financial year.






Ex-Dividend Date:                              2 April 2003
Transfers must be lodged by:                   2.30 p.m. on 4 April 2003
Dividend Warrants:                             Despatched on 29 April 2003
Payment Date:                                  30 April 2003
Dividend per share:                            1.27p net







Enquiries:        Schroder Investment Management Limited

John Spedding     (020 7658 3206)

19 March 2003     (e-mail [e-mail])










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