Final Results

Dunedin Income Growth Inv Tst PLC
17 March 2006

                   DUNEDIN INCOME GROWTH INVESTMENT TRUST PLC

             PRELIMINARY RESULTS FOR THE YEAR ENDED 31 JANUARY 2006


Highlights

•    NAV total return with debt at market value 18.4% compared to a total return
     for the FTSE All-Share Index of 24.0%.

•    £40m 11 1/2% debenture stock 2016 redeemed on 3 August 2005

•    Total dividend to increase by 8.6% from last year to 8.20p per share

•    Revenue return per share increased by 18.4% to 9.20p



- END -

For further information, please contact:-


Max Ward, Chairman
Dunedin Income Growth Investment Trust PLC         0131 220 4167

Chou Chong, Investment Manager
Aberdeen Asset Managers Limited                    0207 463 6000



Chairman's Statement

Year ended 31 January 2006

The year to 31 January 2006 has been an eventful one for our Company. Following
the retirement of David Binnie, we have a new investment manager, Chou Chong; we
have adopted a fresh investment strategy to release us from the tyranny of our
benchmark; and we have changed both the extent and the nature of our gearing.
Unfortunately, all this has happened in a year when our results have been
disappointing: DIGIT's NAV total return for the year (with debt valued at
market) was 18.4%, which is some way short of the notional total return of 24.0%
attributable to the FTSE All-Share Index for the period. The principal reasons
for the shortfall are covered in the Manager's Review, but the Board is
committed to achieving an improvement in performance in the current year.


Dividend

We are delighted to recommend a final dividend of 5.40p per share to give a
total dividend for the year of 8.20p, a rise of 8.6% on last year's 7.55p. For
comparison, the rise in the Consumer Price Index, the most widely used measure
of inflation, was 2.0% over the same period. Dividend growth across the market
has been strong and our revenue return per share rose 18.4% from 7.8p to 9.2p.
We have therefore been able to combine a substantial real increase in our
dividend with a significant addition to our revenue reserve.  A strong revenue
reserve is the key to consistent real dividend growth - an important objective
for us and one we have met every year since 1990.

We should again draw your attention to the benefit to our earnings deriving from
our policy of charging to capital 70% of the management fee and interest costs.
The Board reviews this policy regularly and is satisfied that it remains
appropriate.


Investment Management

We mentioned in last year's report our decision to encourage our Manager to
pursue an investment policy that attached more importance to the investment
attractions of individual companies and less importance to their weightings in
the FTSE All-Share Index. Our Manager has now made substantial progress in the
adoption of this policy and we look forward to seeing the benefits emerge in the
months ahead.

In keeping with contemporary governance practice, the Board has given careful
consideration to the issue of whether Aberdeen Asset Managers Limited should be
retained as the Company's Manager. Although performance has been disappointing
in the year under review, the Board considers that the Manager's investment
record over longer periods and their willingness to address recent
disappointments merits their retention. In keeping with best industry practice,
the Board has negotiated a phased reduction in the Manager's notice period from
one year to six months.


Debentures and Gearing

We explained the decision to redeem our 11 1/2% debenture stock 2016 in our
interim report. The benefits of this decision are evident in a simpler and more
flexible balance sheet structure. When we decided, in the second half of our
year, to reduce gearing we were able to do this by simply paying down the
relevant part of the variable rate loan facility arranged with ING Bank as a
partial replacement for the redeemed debenture. At 31 January 2006, our net
borrowings amounted to 10.6% of shareholders' funds, which compares with a
restated figure of 20.5% a year earlier.

We continue to believe that our returns can be enhanced through the judicious
use of gearing and the events of recent years have shown the importance of being
prepared to change both the nature and extent of our gearing as market
conditions change.


Discount and Buybacks

The discount to net asset value at which our shares trade narrowed slightly
during the year from 12.7% (restated) to 11.5%.  We have continued to buy back
DIGIT's shares when we have been able to do this on terms that provide a
tangible benefit to continuing shareholders.  During the period we have bought
in a total of 900,000 shares. Some of these were cancelled, but more recently we
have begun to hold shares in treasury with a view to re-issuing them, at a
future date and at a premium to our NAV, if market conditions permit.   Whether
the shares are cancelled or held in treasury, buying in shares at a discount
increases the NAV per share and we shall continue to look for opportunities to
do this.


Marketing

We continue to attach great importance to the marketing of DIGIT shares: we must
be in a position to attract new shareholders if our shares are to trade at a
fair valuation. Our Manager is in regular contact with financial advisors,
investors and potential investors to ensure that they are properly apprised of
the attractions of DIGIT shares.  We also support the Association of Investment
Trust Companies and their active campaigning to attract more retail investors to
the industry.

The Company's website, www.dunedinincomegrowth.co.uk, gives a great deal of
information about DIGIT. It also gives details on how to invest in the shares of
DIGIT in a low cost manner, either through regular savings or in a lump sum.


People

As mentioned above, Chou Chong, who is head of the Manager's Pan European equity
team and has 12 years' experience with the firm, has succeeded David Binnie as
DIGIT's investment manager. While welcoming Chou and looking forward to his
contribution to DIGIT's future success, we should like to thank David for his
efforts on behalf of the Company over the last five years, particularly in the
difficult markets in the early years of the millennium, and to wish him a long
and happy retirement.

We also welcome Rory Macnamara as a new director and are already benefiting from
his wide experience of the financial world.

Robert Douglas Miller, who will be seventy this year, has decided not to stand
for re-election. Robert has been a Director since 1989 and has made an enormous
contribution to DIGIT over a long period. We thank him for this and wish him
well in his retirement.

Finally, after five years as chairman, I have decided to step down from the
Board after this year's AGM. I am delighted to report that John Scott, who has
been a director of the Company since 2001 and Chairman of the Audit Committee
since 2004, has been chosen by the Nomination Committee to succeed me as
chairman.


Outlook

The calendar year 2005 saw the UK stock market produce its best annual
performance since 1999. Although economic conditions were not especially
favourable - domestic demand was slowing and the rise in commodity prices
created cost pressures - the corporate sector had a good year. Profits and
dividends grew strongly and balance sheets remained very healthy, permitting
many companies to buy back their own shares or to make cash acquisitions. The
attractiveness of UK equity valuations in an international context was
highlighted by a number of cash bids for UK companies from overseas acquirers, a
trend that has continued in the early months of 2006.

The prospect of further good growth in profits and dividends - albeit at a
slower pace than in 2005 - and the continuing enthusiasm of foreign predators
provides an encouraging background for UK equities. We should, however, remember
that most asset markets have been buoyed over the last year by easy global
monetary conditions and that these conditions are not indefinitely sustainable.
A move to a more restrictive monetary environment could have uncomfortable
implications for all asset markets. We shall be monitoring the situation
carefully, but in the meantime we are reassured that our investment manager
continues to find interesting opportunities at valuations he considers
attractive.

The Company's Annual General Meeting takes place in Dundee on 4 May 2006 and I
look forward to seeing as many of you there as possible.


Max Ward
Chairman
16 March 2006



INCOME STATEMENT (AUDITED)


                                          Year ended 31 January 2006          Year ended 31 January 2005
                                                                                      (restated)
                                          Revenue     Capital       Total     Revenue    Capital       Total
                                            £'000       £'000       £'000       £'000      £'000       £'000
Realised gains on investments                   -      32,278      32,278           -      9,806       9,806
Unrealised gains on investments                 -      24,835      24,835           -     39,756      39,756
Income                                     17,314           -      17,314      15,526          -      15,526
Investment management fee                   (513)     (1,197)     (1,710)       (483)    (1,127)     (1,610)
Administrative expenses                     (677)           -       (677)       (608)          -       (608)
                                        _________   _________   _________    ________   ________   _________
Net return before finance costs and        16,124      55,916      72,040      14,435     48,435      62,870
taxation

Finance costs                             (1,604)    (26,821)    (28,425)     (2,092)    (4,972)     (7,064)
                                        _________   _________   _________    ________   ________   _________
Return on ordinary activities before       14,520      29,095      43,615      12,343     43,463      55,806
taxation

Taxation                                        -           -           -           -          -           -
                                        _________   _________   _________    ________   ________   _________
Return on ordinary activities after        14,520      29,095      43,615      12,343     43,463      55,806
taxation
                                        _________   _________   _________    ________   ________   _________

Return per Ordinary share (pence):           9.20       18.43       27.63        7.77      27.38       35.15
                                        _________   _________   _________    ________   ________   _________



The column of this statement headed 'Total' represents the profit and loss
account of the Company.

The Company had no recognised gains or losses other than those recognised in the
income statement.

The financial statements for the year to 31 January 2005 have been restated to
reflect the changes to accounting practices as set out in the accompanying
notes.

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



BALANCE SHEET (AUDITED)


                                                                                    As at                 As at
                                                                          31 January 2006       31 January 2005
                                                                                                     (restated)
                                                                                    £'000                 £'000
Fixed assets
Investments at fair value through profit or loss                                  430,986               413,453
                                                                             ____________          ____________
Current assets
Debtors and prepayments                                                             7,249                 1,181
AAA Money Market funds                                                             11,150                23,200
Cash and short term deposits                                                        9,496                 1,086
                                                                             ____________          ____________
                                                                                   27,895                25,467
                                                                             ____________          ____________
Creditors: amounts falling due within one year
Bank loan                                                                        (25,000)                     -
Other creditors                                                                   (7,186)                 (671)
                                                                             ____________          ____________
                                                                                 (32,186)                 (671)
                                                                             ____________          ____________
Net current (liabilities)/assets                                                  (4,291)                24,796
                                                                             ____________          ____________
Total assets less current liabilities                                             426,695               438,249

Creditors
Amounts falling due after more than one year                                     (28,428)              (69,409)
                                                                             ____________          ____________
Net assets                                                                        398,267               368,840
                                                                             ____________          ____________

Capital and reserves
Called-up share capital                                                            39,300                39,525
Share premium account                                                               4,543                 4,543
Capital redemption reserve                                                            725                   500
Capital reserve - realised                                                        253,307               250,838
Capital reserve - unrealised                                                       82,767                57,932
Revenue reserve                                                                    17,625                15,502
                                                                             ____________          ____________
Equity Shareholders' funds                                                        398,267               368,840
                                                                             ____________          ____________

Net asset value per Ordinary share (pence):                                        253.24                233.17
                                                                             ____________          ____________



DUNEDIN INCOME GROWTH INVESTMENT TRUST PLC
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS (AUDITED)


For the year ended 31 January 2006                Share      Capital   Capital      Capital
                                        Share   premium   redemption reserve -    reserve -    Revenue
                                      capital   account      reserve  realised   unrealised    reserve      Total
                                        £'000     £'000        £'000     £'000        £'000      £'000      £'000
Balance at 31 January 2005 as          39,525     4,543          500   250,838       57,940      7,518    360,864
originally reported
Restatements                                -         -            -         -          (8)      7,984      7,976
                                      _______   _______      _______   _______      _______    _______    _______
Balance at 31 January 2005 as          39,525     4,543          500   250,838       57,932     15,502    368,840
restated
Return on ordinary activities after         -         -            -     4,260       24,835     14,520     43,615
taxation
Dividends paid                              -         -            -         -            -   (12,397)   (12,397)
Purchase of own shares                  (225)         -          225   (1,791)            -          -    (1,791)
                                      _______   _______      _______   _______      _______    _______    _______
Balance at 31 January 2006             39,300     4,543          725   253,307       82,767     17,625    398,267
                                      _______   _______      _______   _______      _______    _______    _______

For the year ended 31 January 2005                Share      Capital   Capital      Capital
                                        Share   premium   redemption reserve -    reserve -    Revenue
                                      capital   account      reserve  realised   unrealised    reserve      Total
                                        £'000     £'000        £'000     £'000        £'000      £'000      £'000
Balance at 31 January 2004 as          40,013     4,543           12   250,394       18,191      7,114    320,267
originally reported
Restatements                                -         -            -         -         (15)      8,003      7,988
                                      _______   _______      _______   _______      _______    _______    _______
Balance at 31 January 2004 as          40,013     4,543           12   250,394       18,176     15,117    328,255
restated
Return on ordinary activities after         -         -            -     3,707       39,756     12,343     55,806
taxation
Dividends paid                              -         -            -         -            -   (11,958)   (11,958)
Purchase of own shares                  (488)         -          488   (3,263)            -          -    (3,263)
                                      _______   _______      _______   _______      _______    _______    _______
Balance at 31 January 2005             39,525     4,543          500   250,838       57,932     15,502    368,840
(restated)



CASH FLOW STATEMENT (AUDITED)


                                                                      Year ended              Year ended
                                                                    31 January 2006         31 January 2005
                                                                     £'000        £'000       £'000       £'000
Net cash inflow from operating activities                                        14,825                  13,193

Servicing of finance
Interest paid                                                                   (5,342)                 (6,965)

Financial investment
Purchases of investments                                         (153,224)                 (45,346)
Sales of investments                                               193,369                   55,095
                                                                  ________     ________    ________    ________
Net cash inflow from financial investment                                        40,145                   9,749

Equity dividends paid                                                          (12,397)                (11,958)
                                                                  ________     ________    ________    ________
Net cash inflow before use of liquid resources and financing                     37,231                   4,019

Net cash inflow from management of liquid resources                              12,050                     400

Financing
Redemption/repurchase of Debenture Stock                          (64,080)                    (491)
Purchase of own shares                                             (1,791)                  (3,263)
Drawdown of loan                                                    25,000                        -
                                                                  ________     ________    ________    ________
Net cash outflow from financing                                                (40,871)                 (3,754)
                                                                               ________                ________
Increase in cash                                                                  8,410                     665
                                                                               ________                ________



NOTES



1.   Accounting policies

     (a)  Basis of accounting

          The financial statements have been prepared under the historical cost
          convention, as modified to include the revaluation of investments and 
          in accordance with the applicable UK Accounting Standards and with the 
          Statement of Recommended Practice 'Financial Statements of Investment 
          Trust Companies' (issued in 2003 and revised in December 2005). They 
          have also been prepared on the assumption that approval as an 
          investment trust will continue to be granted.

          The financial statements and the net asset value per share figures 
          have been prepared in accordance with UK Generally Accepted Accounting 
          Principles (UK GAAP). The new Financial Reporting Standards, issued as 
          part of the programme to converge UK GAAP with International Financial 
          Reporting Standards (IFRS), were applicable for the accounting period 
          ended 31 January 2006 and the financial statements for the twelve 
          months ended 31 January 2005 have also been restated. The main change 
          arising from these revisions to UK GAAP, in relation to the Company's 
          financial statements, is that dividends to Shareholders declared after
          the balance sheet date are now shown in the period of payment rather 
          than in the reporting period. Dividends were previously recognised in 
          the statement of total return (now income statement). These are now 
          dealt with as an appropriation of equity and are taken directly 
          through equity in the reconciliation of movements in shareholders' 
          funds.

     (b)  Revenue, expenses and interest payable

          Income from equity investments (other than special dividends), 
          including taxes deducted at source, is included in revenue by 
          reference to the date on which the investment is quoted ex-dividend. 
          Special dividends are credited to revenue or capital according to the 
          circumstances. Foreign income is converted at the exchange rate 
          applicable at the time of receipt. Interest receivable on short term 
          deposits and expenses are accounted for on an accruals basis. Interest
          payable is calculated on an effective yield basis.

          Expenses are charged to capital when they are incurred in connection 
          with the maintenance or enhancement of the value of investments.  In 
          this respect, the investment management fee and relevant finance costs 
          are allocated between revenue and capital in line with the Board's 
          expectation of returns from the Company's investments over the long 
          term in the form of revenue and capital respectively.

     (c)  Investments

          Investments have been designated upon initial recognition as 'fair 
          value through profit or loss'. Investments are recognised and 
          de-recognised at trade date where a purchase or sale is under a 
          contract whose terms require delivery within the timeframe established 
          by the market concerned, and are measured initially at fair value.  
          Subsequent to initial recognition, investments are recognised at fair 
          value through profit or loss. For listed investments, this is deemed 
          to be bid market prices or closing prices for SETS stocks sourced from 
          the London Stock Exchange. SETS is the London Stock Exchange 
          electronic trading service covering most of the market including all 
          FTSE 100 constituents and most liquid FTSE 250 constituents along with 
          some other securities. Gains or losses arising from changes in fair 
          value are included in net profit or loss for the period as a capital 
          item in the income statement and are ultimately recognised in the
          unrealised capital reserve.

     (d)  Dividends payable

          Interim and final dividends are recognised in the period in which they 
          are paid.

     (e)  Realised capital reserve

          Realised gains and losses on realisation of investments held at fair 
          value are recognised in the income statement and are ultimately 
          transferred to the realised capital reserve. In addition, any prior 
          unrealised gains or losses on such investments are transferred from 
          the unrealised capital reserve to the realised capital reserve on 
          disposal of the investment. The capital element of the management fee 
          along with the associated irrecoverable VAT and relevant finance costs 
          are charged to this reserve. Any associated tax relief is credited to 
          this reserve.

     (f)  Unrealised capital reserve

          Increases and decreases in the valuation of investments held at fair 
          value are recognised in the income statement and are ultimately 
          transferred to the unrealised capital reserve.

     (g)  Deferred taxation

          Deferred taxation is recognised in respect of all temporary 
          differences that have originated but not reversed at the balance sheet 
          date where transactions or events that result in an obligation to pay 
          more or a right to pay less tax in future have occurred at the balance 
          sheet date measured on an undiscounted basis and based on enacted tax 
          rates. This is subject to deferred tax assets only being recognised if 
          it is considered more likely than not that there will be suitable 
          profits from which the future reversal of the underlying temporary
          differences can be deducted. Temporary differences are differences 
          arising between the Company's taxable profits and its results as 
          stated in the accounts which are capable of reversal in one or more 
          subsequent periods.

          Owing to the Company's status as an investment trust company, and the 
          intention to continue meeting the conditions required to obtain 
          approval in the foreseeable future, the Company has not provided 
          deferred tax on any capital gains and losses arising on the 
          revaluation or disposal of investments.

2.   The Directors recommend that a final dividend of 5.40p per Ordinary share 
     be paid, making a total of 8.20p for the year ended 31 January 2006 (2005
     - 7.55p).  The final dividend will be paid on 8 May 2006 to Shareholders on
     the register at 7 April 2006.  The ex-dividend date is 5 April 2006.

3.   The income statement, balance sheet, reconciliation of movements in 
     shareholders' funds and the cashflow statement set out above do not 
     represent full accounts in accordance with Section 240 of the Companies Act 
     1985.  The financial information for the year ended 31 January 2005 has 
     been extracted from the Annual Report and Accounts of the Company which 
     have been filed with the Registrar of Companies and restated where required 
     as a result of the implementation of the new Financial Reporting Standards.  
     The auditors' report on those accounts as originally filed was unqualified.  
     The statutory accounts for 2006 are unqualified and will be delivered to 
     the Registrar of Companies following the Company's Annual General Meeting 
     which will be held at Discovery Point, Dundee on Thursday 4 May 2006 at 12 
     noon.

4.   The management fee includes irrecoverable VAT calculated at 17.5 per cent.

5.   The Annual Report and Accounts will be posted to shareholders at the end of 
     March 2006 and copies will be available from the registered office of the
     investment manager.


Please note that past performance is not necessarily a guide to the future and
that the value of investments and the income from them may fall as well as rise.
  Investors may not get back the amount they originally invested.


                      This information is provided by RNS
            The company news service from the London Stock Exchange