Half-yearly report

The AIM Distribution Trust plc
Half Yearly Financial Report
for the six months ended 30 September 2007

SHAREHOLDER INFORMATION

Recent performance summary

                                   30 Sept   31 Mar   30 Sept
                                      2007     2007      2006
                                     pence    pence     pence

Net asset value per share             65.3     64.1      65.1
Cumulative distributions per share    53.8     53.8      51.8
Total return per share               119.1    117.9     116.9



CHAIRMAN'S STATEMENT
I present the Half Yearly Financial Statement of the Company for the
period ended 30 September 2007.

Net Asset Value
At 30 September 2007, the Company's Net Asset Value per share ("NAV")
stood at 65.3p, an increase of 1.2p or 1.9% compared to the NAV at
31 March 2007.

VCT Investment Portfolio
During the period your company invested £175,000 in one new
investment and £226,000 in follow-on investments, details of which
are shown below.

The Investment Manager took the opportunity to realise some profits
in the portfolio and raise funds for the purchase of new
investments.  The net profit against cost realised in the period was
£292,000.  Full details of the disposals made during the period are
shown below.

Despite significant fluctuations in the stock market indices during
the period, the Company's portfolio has fared comparatively well,
benefiting from good performances from Connaught and Aero Inventory,
and also from a takeover bid for Revenue Assurance Services by Spice
plc, which completed after the period end.  These three investments
rose in value by £542,000.

On a negative note, the share price in Huveaux was affected by a
profits warning resulting in a fall in value of the investment by
£182,000.

The net unrealised gain over the period on the portfolio was
£223,000.

Fixed interest securities and other investments
At the period end the Company's one remaining fixed interest security
was valued at £626,000 and showed a small loss over the period of
£35,000.

In order to improve the diversity of the non-VCT qualifying
portfolio, the Board has decided to allocate a small proportion of
the Company's funds for investment in a selection of low risk hedge
funds. Investments in three hedge funds were made in the period at a
cost of £1.1 million.  At the period end these investments showed a
small unrealised loss of £28,000.

Results and Dividend
The return on ordinary activities after taxation for the period was
£154,000 comprising a revenue return of £9,000 and a capital profit
of £145,000.

As the Company has made some further realised gains in the period,
the Board has decided to pay an interim dividend of 2.0p per share.
This will be paid on 28 March 2008 to Shareholders on the register at
29 February 2008.

Repurchase of shares
The Company operates a policy, subject to certain restrictions, of
buying shares that become available in the market.  During the period
the Company repurchased 201,581 Ordinary shares at an average price
of 59.5p per share, being approximately a 10% discount to the latest
published NAV at the time of purchase.   These shares were
subsequently cancelled.

Risk and uncertainties
The Board has reviewed the principal risks and uncertainties facing
the Company over the remainder of the financial period and concluded
that the key risks are:

investment risk associated with investing in small and immature
businesses; and
failure to maintain approval as a VCT.

In both cases the Board is satisfied with the Company's approach to
these risks.  The Board takes into consideration information
regarding the potential investment companies, the board of directors
and the related sector before taking the decision to invest.

The Company also continually monitors its compliance with the VCT
regulations and retains PricewaterhouseCoopers to provide regular
reviews and advice in this area.

Outlook
Until such time as the extent of the exposure to the US sub-prime
lending crisis becomes clear, markets are expected to remain
nervous.  However, the Company's investment portfolio remains
well-diversified and includes a number of investments with good
growth prospects.  This puts the Company in a good position to
weather more testing conditions should they arise.

Sir Aubrey Brocklebank
Chairman



INCOME STATEMENT
for the six months ended 30 September 2007



                                    Six months ended
                                   30 September 2007
                               Revenue   Capital    Total
                                 £'000     £'000    £'000

Income                             110         -      110

Gains/(losses) on investments        -       196      196

                                   110       196      306

Investment management fees        (18)      (51)     (69)
Other expenses                    (83)         -     (83)

Return on ordinary activities        9       145      154
before taxation

Taxation                             -         -        -

Return attributable to equity        9       145      154
shareholders

Return per share                  0.1p      1.0p     1.1p

                                    Six months ended      Year ended
                                   30 September 2006       31 March
                                                             2007
                               Revenue   Capital    Total       Total
                                 £'000     £'000    £'000       £'000

Income                              94         -       94         220

Gains/(losses) on investments        -     (772)    (772)       (686)

                                    94     (772)    (678)       (466)

Investment management fees        (21)      (64)     (85)       (157)
Other expenses                    (83)         -     (83)       (163)

Return on ordinary activities     (10)     (836)    (846)       (786)
before taxation

Taxation                             -         -        -           -

Return attributable to equity     (10)     (836)    (846)       (786)
shareholders

Return per share                (0.1p)    (5.2p)   (5.3p)      (5.2p)



A Statement of Total Recognised Gains and Losses has not been
prepared as all gains/losses are recognised in the Income Statement
as noted above.

UNAUDITED SUMMARISED BALANCE SHEET
as at 30 September 2007



                             30 Sept   30 Sept    31 Mar
                                2007      2006      2007
                               £'000     £'000     £'000

Fixed assets
Investments                    9,006     9,496     7,848

Net current assets               135        71     1,260

Net assets                     9,141     9,567     9,108


Capital and reserves
Called up share capital        3,500     3,650     3,551
Capital redemption reserve       911       761       860
Share premium                    348       348       348
Capital reserve - unrealised (1,676)   (2,463)   (1,730)
Capital reserve - realised     6,019     7,269     6,049
Revenue reserve                   39         2        30

Equity Shareholder's funds     9,141     9,567     9,108

Net asset value per share      65.3p     65.5p     64.1p



RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS


                                30 Sept   30 Sept    31 Mar
                                   2007      2006      2007
                                  £'000     £'000     £'000

Opening shareholders' funds       9,108    11,602    11,602
Repurchase of own shares          (121)   (1,189)   (1,421)
Total recognised gains/(losses)
 for the period                     154     (846)     (786)
Distributions paid in period          -         -     (287)

Closing shareholders' funds       9,141     9,567     9,108


UNAUDITED CASH FLOW STATEMENT
for the six months ended 30 September 2007



                                              Six       Six
                                           months    months      Year
                                            ended     ended     ended
                                          30 Sept   30 Sept    31 Mar
                                             2007      2006      2007
                                     Note   £'000     £'000     £'000
Cash outflow from operating
activities                           1
and returns on investments                   (52)      (99)     (150)

Capital expenditure
Purchase of investments                   (1,509)      (80)     (231)
Proceeds on disposal of investments           727     1,399     3,106
Net cash inflow/(outflow) from capital      (782)   (1,319)     2,875
expenditure

Equity dividends paid                           -         1     (287)

Net cash (outflow)/inflow before            (834)     1,221     2,438
financing

Financing
Purchase of own shares                      (210)   (1,176)   (1,332)
Net cash outflow from financing             (210)   (1,176)   (1,332)

(Decrease)/ increase/in cash         2    (1,044)        45     1,106

Notes to the cash flow statement:

1. Cash outflow from operating
activities and
returns on investments
Net revenue return/(loss) before                9       (9)        18
taxation
Expenses charged to capital                  (51)      (64)     (118)
(Increase)/decrease in other debtors            8      (14)      (45)
(Decrease)/increase in other                 (18)      (12)       (5)
creditors
Net cash outflow from operating              (52)      (99)     (150)
activities

2. Analysis of net funds
Beginning of period                         1,153        47        47
Net cash (outflow)/inflow                 (1,044)        45     1,106
End of period                                 109        92     1,153


SUMMARY OF INVESTMENT PORTFOLIO
as at 30 September 2007


                                                Unrealised
                                               gain/(loss)       % of
                              Cost   Valuation   in period  portfolio
                             £'000       £'000       £'000   by value
Twenty largest VCT
investments (by value)
Connaught plc *                 54         746         103       8.2%
Revenue Assurance Services     440         712         264       7.9%
plc
ANS Group plc **               251         526          90       5.7%
Aero Inventory plc             196         487         174       5.4%
Printing.com plc               184         365        (95)       4.0%
Hill Station plc               484         353          36       3.9%
Cadbury House Hotel &          225         372          66       3.6%
Country Club Ltd ***
Supporta plc                   250         316        (33)       3.5%
Huveaux plc                    283         263       (181)       2.9%
Glisten plc                    155         241        (28)       2.7%
Keycom plc **                  352         228         (1)       2.5%
Deltex Medical Group plc       258         209          23       2.3%
Neutrahealth plc               173         197          49       2.2%
Gourmet Holdings plc           250         187           -       2.1%
Clerkenwell Ventures plc       175         187          12       2.1%
Atlantic Global plc            310         186          12       2.0%
Waterline plc                  244         183        (48)       2.0%
AT Communications plc          178         174          30       1.9%
Cardpoint plc                  105         168           5       1.9%
Coffee Republic plc            713         135        (24)       1.5%
                             5,280       6,235         454      68.3%

Other VCT investments        3,886       1,065       (245)      11.7%

Listed fixed income
securities                     558         626        (35)       6.9%
Other investments            1,108       1,080        (28)      11.9%

                            10,832       9,006         146      98.8%

Cash at bank and in hand                   109                   1.2%

Total investments                        9,115                 100.0%


All VCT investments are quoted on AIM unless otherwise stated.

*             Listed on the Main Market of the London Stock Exchange
**           Quoted on the PLUS Market
***         Unquoted

SUMMARY OF INVESTMENT MOVEMENTS
for the period ended 30 September 2007

Additions


                                        £'000
Venture Capital investments
Clerkenwell Ventures plc                175
Hill Station plc                        148
Keycom plc                              75
Sundry investments                      3
                                        401

Other investments
Hedge Funds
Barclays GAM Diversity Fund             663
Close Allblue Fund Limited              222
Goldman Sachs Dynamic Opportunities Ltd 223
                                        1,108

                                        1,509



Disposals

                                 Market
                               value at                         Total
                                1 March Disposal Gain/(loss) realised
                          Cost     2007 proceeds   in period     gain
                         £'000    £'000    £'000       £'000    £'000
Part disposals
Cardpoint plc               22       47       47          25        -
Connaught plc               16      180      204         188       24
Glisten plc                 23       40       37          14      (3)
Huveaux plc                 16       25       15         (1)     (10)
Media Square plc            45       24       16        (29)      (8)
Printing.com plc            15       44       33          18     (11)
Revenue Assurance
  Group plc                 53       82      130          77       48
                           190      442      482         292       40
Liquidations
Collins & Hayes Group
plc                        150        4        -       (150)      (4)

                           340      446      482         142       36


NOTES TO THE UNAUDITED FINANCIAL STATEMENTS

1. The unaudited half yearly financial results cover the six months
to 30 September 2007 and have been prepared in accordance with the
accounting policies set out in the statutory accounts for the year
ended 31 March 2007 which were prepared under UK Generally Accepted
Accounting Practice ("UK GAAP") and in accordance with the Statement
of Recommended Practice "Financial Statements of Investment Trust
Companies" revised December 2005 ("SORP").

2. All revenue and capital items in the Income Statement derive from
continuing operations.

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

4. The comparative figures were in respect of the year ended 31 March
2007 and the period ended 30 September 2006 respectively.

5. Return per share for the period has been calculated on 14,159,415
shares, being the weighted average number of shares in issue during
the period.

6. Net Asset Value per share for the period has been calculated on
14,002,294 shares, being the number of shares in issue at the period
end.

7. Dividends

                                30 Sept            31 Mar
                                 2007               2007
                       Revenue   Capital   Total    Total
                         £'000     £'000   £'000    £'000
Paid in period/year
2007 interim                 -         -       -      287


8. Reserves

                                  Capital    Capital  Capital
                 Share Special redemption    reserve  reserve Revenue
               premium reserve    reserve          -        - reserve
                                          unrealised realised
                 £'000   £'000      £'000      £'000    £'000   £'000

At 1 April         348       -        860    (1,730)    6,049      30
2007
Repurchase of        -   (121)         51          -        -       -
shares
Expenses             -       -          -          -     (51)       -
capitalised
Gains on             -       -          -        160       36       -
investments
Transfer             -     121          -      (106)     (15)       -
between
reserves
Retained net         -       -          -          -        -       9
revenue
At 30              348       -        911    (1,676)    6,019      39
September 2007


The Special Reserve, Capital Reserve - realised and Revenue Reserve
are all distributable reserves.

10. 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 March 2007 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.

11. The Directors confirm that, to the best of their knowledge, the
half yearly financial statement has been prepared in accordance with
the "Statement: Half Yearly Financial Reports" issued by the UK
Accounting Standards Board and the half yearly financial report
includes a fair review of the information required by:

a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first
six months of the financial year and their impact on the condensed
set of financial statements, and a description of the principal risks
and uncertainties for the remaining six months of the year; and

b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related
party transactions that have taken place during the first six months
of the current financial year and that have materially affected the
financial position or performance of the entity during that period,
and any changes in the related party transactions described in the
last annual report that could do so.

12. Copies of the unaudited half yearly financial reports for the
period ended 30 September 2007 will be printed and posted to
shareholders.   Copies will also be available to the public at the
registered office of the Company at Kings  Scholars House, 230
Vauxhall Bridge Road, London SW1V 1AU and available for download from
www.downing.co.uk.

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