Interim Results

Foreign & Colonial Eurotrust PLC
16 May 2007

Date:         16 May 2007



Contact:      Peter Jarvis
              F&C Management Limited
              020 7628 8000




                        FOREIGN & COLONIAL EUROTRUST PLC
                         Unaudited Statement of Results
                     for the half-year ended 31 March 2007





HIGHLIGHTS


• Between the year end at 30 September 2006 and 31 March 2007, your
  Company's net asset value per share rose by 15.1% from 731.20p to 841.76p
  compared with a rise of 10.8% in the FTSE All-World Europe ex UK Index.


• The Company's share price rose by 15.9% from 664.50p to 770.00p and
  the discount narrowed from 9.1% to 8.5%.



SUMMARY OF UNAUDITED RESULTS FOR THE HALF-YEAR ENDED 31 MARCH 2007


                                                                 31 March 2007         30 September 2006       % Change

Net assets                                                              £451.41m                £406.69m          +11.0

Net asset value per share                                                841.76p                 731.20p          +15.1

Share price                                                              770.00p                 664.50p          +15.9

                                                                 Half-year ended         Half-year ended
                                                                   31 March 2007           31 March 2006

Revenue return per share                                                   0.05p                   1.05p




Managers' Review


Capital Performance

Between the year end at 30 September 2006 and 31 March 2007, your Company's net
asset value per share rose by 15.1% from 731.20p to 841.76p compared with a rise
of 10.8% in the FTSE All-World Europe ex UK Index, which is adjusted for the
movement in sterling against the European currencies. The Company's share price
rose by 15.9% from 664.50p to 770.00p and the discount narrowed from 9.1% to
8.5%.


Revenue

The revenue surplus for the period is less than at the interim stage last year,
mainly because income has fallen from the high level of last year. Management
fees have risen in line with the increased value of the portfolio and finance
costs have increased as interest rates rise.  The figures are not indicative of
the full year results because European companies tend to pay their dividends
between April and September, whereas expenses are incurred throughout the year.


Gearing

The effective gearing of the Company was 5.5% at 31 March 2007.  It is the
policy of the Board that the level of gearing should not exceed 20%.


Review of Markets

Despite a pull back towards the end of February, investors in European equities
enjoyed strong gains during the period under review. The equity market was
supported by strong corporate earnings growth, a relatively buoyant global
economy and high levels of merger and acquisition (M&A) activity.


Europe's domestic economies proved to be in good shape - a fact highlighted by
strong confidence levels among the business community and consumers. In March,
the European Central Bank (ECB) raised interest rates by 0.25% to 3.75% in a
widely expected move reflecting the region's robust growth and a desire to keep
inflation in check. The one economic sore spot remained the US where fears of a
consumer slowdown were heightened as the housing market continued to weaken and
defaults in the sub-prime mortgage market caused concern for investors.


Against this supportive backdrop corporate Europe performed well with announced
results bettering expectations at a rate of three to one by the period's close.
In terms of sector performance industrial stocks were amongst the better
performers and technology stocks lagged.


M&A activity provided further impetus which was driven by both low interest
rates and the strength of corporate balance sheets.



Portfolio Strategy

Oil prices have remained high over the period and we believe this will continue
to benefit the specialist equipment and service stocks. The oil majors have
rapidly increased capital expenditure as they look to maintain and increase
their output. We added to the Company's holding of Vallourec, the niche seamless
oil pipe manufacturer.  We have further exposure to the sector through Awilco
Offshore, Saipem and Prosafe.


We increased the Company's exposure to the German market over the period as we
believe the recent momentum in corporate restructuring will gather pace. EU
accession countries continue to present some good investment opportunities,
particularly in areas of under penetration such as banking and financial
services. We bought shares in Bank of Cyprus, which as well as being attractive
in its own right looks a potential target amid consolidation in the industry.


Following strong performance, we have switched our holdings within the capital
goods sector as they are now trading at less attractive valuations. We have sold
out of our holding in Wartsila and reduced the position in KCI Konecranes. We
established a new holding in German railway engineer Vossloh as we believe it
looks well placed to benefit from infrastructure spending increases in the
emerging markets and US.


In the mid-cap arena we initiated positions in Datalex, Axis and Balda. Datalex
provides e-business infrastructure and solutions to airlines, Axis is the global
leader in digital CCTV and Balda is a key component supplier to the new Apple
i-Phone.


The Company's performance benefited from M&A activity as the bid for Altadis by
Imperial Tobacco drove the share price of the former up considerably. Whilst we
believe there is a possibility of a higher bid or counter-offer by a private
equity consortium, we halved our position and locked in some profits. In the
banking sector our recent purchase of ABN AMRO performed strongly on speculation
of an imminent bid.


Elsewhere, we further cut our weighting in the investment banking sector as
investors continue to be wary of both the fallout from the US sub-prime mortgage
market and the effects of recent interest rate moves.



Outlook

Whilst economic growth is expected to slow as a result of higher interest rates,
we remain fundamentally positive on the outlook for European shares.  Europe's
corporate environment remains encouraging with recent earnings results generally
meeting or bettering expectations.  Healthy balance sheets, solid M&A activity
and higher dividends should continue to generate support.




Davina Curling


Peter Jarvis


May 2007



UNAUDITED INCOME STATEMENT

                                                     Half-year ended 31 March 2007        Half-year ended 31 March 2006
                                                       Revenue   Capital    Total*       Revenue     Capital     Total*
                                                        £'000s    £'000s    £'000s        £'000s      £'000s     £'000s

Gains on investments                                         -    64,369    64,369             -      72,766     72,766
Exchange losses                                            (6)     (124)     (130)          (10)       (901)      (911)
Income                                                   2,567         -     2,567         3,082           -      3,082
Management fee                                         (1,366)         -   (1,366)       (1,297)           -    (1,297)
Other expenses                                           (348)      (22)     (370)         (354)        (27)      (381)
Return before finance costs and taxation                   847    64,223    65,070         1,421      71,838     73,259
Finance costs                                            (781)         -     (781)         (524)           -      (524)
Return on ordinary activities before taxation               66    64,223    64,289           897      71,838     72,735
Taxation on ordinary activities                           (39)         -      (39)         (277)           -      (277)
Return attributable to equity shareholders                  27    64,223    64,250           620      71,838     72,458

Return per share - pence                                  0.05    116.89    116.94          1.05      122.13     123.18



*The total column is the profit and loss account of the Company.

All revenue and capital items in the above statement derive from continuing
operations.

A statement of total recognised gains and losses is not required as all gains
and losses of the Company have been reflected in the above statement.




UNAUDITED RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS


Half-year ended 31 March 2007                 Called up      Share       Capital                           Total equity
                                                  share    premium    redemption     Capital    Revenue   shareholders'
                                                capital    account       reserve    reserves    reserve           funds
                                                 £'000s     £'000s        £'000s      £'000s     £'000s          £'000s

Balance brought forward at 30 September 2006     13,905    123,749         4,906     255,269      8,861         406,690
Movements during the half-year ended
    31 March 2007
Dividends paid                                        -          -             -           -    (4,977)         (4,977)
Shares purchased by the Company                   (498)          -           498    (14,552)          -        (14,552)
Return attributable to equity shareholders            -          -             -      64,223         27          64,250
Balance carried forward at 31 March 2007         13,407    123,749         5,404     304,940      3,911         451,411




Half-year ended 31 March 2006                   Called up      Share       Capital                                Total
                                                    share    premium    redemption    Capital    Revenue  shareholders'
                                                  capital    account       reserve   reserves    reserve          funds
                                                   £'000s     £'000s        £'000s     £'000s     £'000s         £'000s

Balance brought forward at 30 September 2005       15,657    123,749         3,154    240,559      8,235        391,354
Movements during the half-year ended
    31 March 2006
Dividends paid                                          -          -             -          -    (4,417)        (4,417)
Shares purchased by the Company                   (1,122)          -         1,122   (25,841)          -       (25,841)
Return attributable to equity shareholders              -          -             -     71,838        620         72,458
Balance carried forward at 31 March 2006           14,535    123,749         4,276    286,556      4,438        433,554



Year ended 30 September 2006                    Called up      Share       Capital                                Total
                                                    share    premium    redemption    Capital    Revenue  shareholders'
                                                  capital    account       reserve   reserves    reserve          funds
                                                   £'000s     £'000s        £'000s     £'000s     £'000s         £'000s

Balance brought forward at 30 September 2005       15,657    123,749         3,154    240,559      8,235        391,354
Movements during the year ended
    30 September 2006
Dividends paid                                          -          -             -          -    (4,417)        (4,417)
Shares purchased by the Company                   (1,752)          -         1,752   (42,092)          -       (42,092)
Return attributable to equity shareholders              -          -             -     56,802      5,043         61,845
Balance carried forward at 30 September 2006       13,905    123,749         4,906    255,269      8,861        406,690


UNAUDITED BALANCE SHEET
                                                                    31 March             31 March     30 September 2006
                                                                        2007                 2006
                                                                      £'000s               £'000s                £'000s
Fixed assets
Listed Investments                                                   482,326              465,335               437,827
Current assets
Debtors                                                                2,519                5,264                   306
Taxation recoverable                                                     582                   81                   360
Cash at bank and short-term deposits                                   5,540                4,585                 3,923
                                                                       8,641                9,930                 4,589

Creditors: amounts falling due within one year
Foreign currency loans                                              (30,541)             (40,465)              (30,517)
Other                                                                (9,015)              (1,246)               (5,209)
                                                                    (39,556)             (41,711)              (35,726)
Net current liabilities                                             (30,915)             (31,781)              (31,137)
Net assets                                                           451,411              433,554               406,690
Capital and Reserves
Called-up share capital                                               13,407               14,535                13,905
Share premium account                                                123,749              123,749               123,749
Capital redemption reserve                                             5,404                4,276                 4,906
Capital reserves                                                     304,940              286,556               255,269
Revenue reserve                                                        3,911                4,438                 8,861
Total equity shareholders' funds                                     451,411              433,554               406,690

Net asset value per share - pence                                     841.76               745.71                731.20





The geographical distribution of investments at 31 March 2007 was:

Germany - 20.9%, France - 14.4%, Switzerland - 11.6%, Italy - 8.2%, Norway -
8.0%, Spain - 7.1%,  Netherlands - 6.8%, Sweden 5.1%, Greece 4.8%, Finland 3.2%,
Austria 2.5%, Denmark 2.0%, Belgium 1.9%, Ireland 1.7%, Cyprus 1.0%, Portugal
0.8%.


UNAUDITED SUMMARY CASH FLOW STATEMENT
                                                                              Half-year ended           Half-year ended
                                                                                31 March 2007             31 March 2006
                                                                                       £'000s                    £'000s
Net cash inflow from operating activities                                                 844                       746
Cash outflow from servicing of finance                                                  (763)                     (511)
Net tax paid                                                                            (756)                     (400)
Net cash inflow from financial investment                                              21,928                    28,309
Equity dividends paid                                                                 (4,977)                   (4,417)
Net cash inflow before use of liquid resources and financing                           16,276                    23,727
(Increase)/decrease in short-term deposits                                               (79)                    13,897
Net cash outflow from financing                                                      (14,668)                  (34,121)
Increase in cash                                                                        1,529                     3,503

Reconciliation of net cash flow to movement in net debt
Increase in cash                                                                        1,529                     3,503
Increase/(decrease) in short-term deposits                                                 79                  (13,897)
Decrease/(increase) in short-term loans                                                   116                  (15,609)
Movement in net debt resulting from cash flows                                          1,724                  (26,003)
Exchange movement                                                                       (131)                     (931)
Movement in net debt                                                                    1,593                  (26,934)
Net debt brought forward                                                             (26,594)                   (8,946)
Net debt carried forward                                                             (25,001)                  (35,880)

Represented by:
Cash at bank and short-term deposits                                                    5,540                     4,585
Short-term loans                                                                     (30,541)                  (40,465)
                                                                                     (25,001)                  (35,880)


Notes


1    RETURN PER SHARE


                                                     Half-year ended           Half-year ended
                                                       31 March 2007             31 March 2006
                                                              £'000s                    £'000s
Revenue return                                                    27                       620
Capital return                                                64,223                    71,838
Total return                                                  64,250                    72,458

                                                              Number                    Number
Weighted average ordinary shares in issue                 54,937,829                58,823,382


2    DIVIDENDS

The Directors have not declared an interim dividend.


3    RESULTS

The results for the six months to 31 March 2007 and 31 March 2006, which are
unaudited, constitute non-statutory accounts within the meaning of Section 240
of the Companies Act 1985. The latest published accounts which have been
delivered to the Registrar of Companies are for the year ended 30 September
2006; the report of the auditors thereon was unqualified and did not contain a
statement under Section 237 of the Companies Act 1985. The abridged financial
statements shown above for the year ended 30 September 2006 are an extract from
those accounts.


4    REPORT AND ACCOUNTS

The Report and Accounts for the half-year ended 31 March 2007 will be posted to
shareholders in late May 2007. Copies may be obtained during normal business
hours from the Company's Registered Office, Exchange House, Primrose Street,
London EC2A 2NY.







By order of the Board
F&C Management Limited, Secretary
Exchange House, Primrose Street, London EC2A 2NY
16 May 2007




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