Interim Results

Highcroft Investment Trust PLC
24 August 2000


Highcroft Investment Trust P.L.C. and its subsidiary undertakings

Chairman's Statement                                                 
                                                        
for the six months ended 30 June 2000
                                   

Summary Results - Operating Activities

Operating profit for the first half of 2000 was £683,000, up by 6% on the 1999
equivalent figure of £644,000.  The Board believes that this increase is a
consequence of its policy, over the last three years, of investing in property
of a higher quality.

Total income, including interest on cash deposits was £786,000 in the first
half of 2000, slightly improved on 1999's figures, up by 2%.   However,
property income was significantly up on 1999, representing 79% of total income
compared with 67% in the first half of 1999.  This was a reflection of the
increased investment in property generating increased net income; and also it
was due to a relative fall in investment income as there were special
dividends received in the first half of 1999 and there was more cash on
deposit, earning interest at that time.

Property outgoings continued to benefit, on an ongoing basis, from a reduction
as a result of the strategy of improving the property portfolio.  However, we
are required to account for property repairs as they happen, rather than from
a provision for repairs, and the first half of 2000 saw a relatively high
level of repairs on residential properties.  It is expected that this will
lead to increased rental income in the future.  

Summary Results - Capital Activities

During the first half of the year there were no purchases of property assets. 
However, in August we completed the purchase of an office property at a
purchase price of £1,600,000.  It comprises two inter-linked, modern office
units in Solihull, West Midlands. The property is let to Siemens Properties
Limited, with a guarantee from Siemens Holdings Plc, on a lease that runs to
2015.  Net rental income is expected to be £122,000 p.a.

Purchases of listed investments in the first half of 2000 amounted to £798,000
(1999 £516,000).  The net proceeds from property disposals during the half
year amounted to £1,412,000 (1999 £986,000) while listed investment disposals
raised £664,000 (1999 £781,000).

Gains on disposals amounted to £164,000 (1999 £349,000).  Unusually, gains
before taxation became losses after taxation.  This circumstance is made
possible because the calculation of gains for accounts purposes is not the
basis for calculating capital gains for tax purposes.  The disposal of some
long held investments meant that there was a relatively high tax charge.   A
transfer from realised capital reserve was required to cover a net loss after
taxation of £122,000 (1999 £93,000 gain).

Summary

As the number of disposals out of the property portfolio has reduced, so have
the gains on disposals of assets, and consequently profit before tax has
reduced from £584,000 to £442,000.  However, the programme in recent years of
improving the property portfolio has borne further fruit in the increased
operating profit and increased earnings per share, excluding gains on
disposals, from 9.3p to 10.9p.  We are pleased to announce an interim dividend
of 3p per share (1999 2.75p), an increase of 9.1%.

Taking into account the updated valuations of assets at 30 June 2000, net
asset value per share has increased by 4.1% to 616p from 592p at 31 December
1999.

Appointment of advisers

The Board has appointed Charles Stanley as its brokers and corporate finance
advisers.

Robert Craig
Chairman
24 August 2000

Group Profit & Loss Account (Unaudited)                                       
                
                                                        
for the six months ended 30 June 2000                                         
              
                                                        
                                       First Half      First Half    Full Year
                                 Note        2000            1999         1999
                                                         Restated     Restated
                                            £'000           £'000        £'000
                       
                                          
                                          
Income from fixed asset investments 
and other interest receivable                                                 
From properties                                619            515        1,138
       
 From investments, including 
net interest receivable                        167            255          407
       
                                               786            770        1,545
       
Administrative expenses                                                       

Purchase of own shares                          0              34           34
Other                                          103             92          182
Operating profit                               683            644        1,329
       
                                                        
Gains on disposals of assets   2               164            349          868
Profit on ordinary activities
before taxation                                847            993        2,197
       
                                                        
Taxation   3                                   425            409          838
       
Profit for the financial period                422            584        1,359
       
                                                        
Losses/(gains) on disposals of assets 
after taxation taken from/(to) 
realised capital reserve                       122           (93)        (335)
Profits available for distribution             544            491        1,024
       
                                                        
Dividends   4                                  155            144          391
1998 dividend not paid                           0            (12)           -
Profit retained                                389            359          633
       
                                                        
Earnings per share   5                                           
Including gains on disposals of assets         8.2p          11.1p       26.1p
Excluding gains on disposals of assets        10.9p           9.3p       19.6p
                                                        
Statement of Total Recognised
Gains and Losses                                                        
                                          First Half    First Half   Full Year
                                                2000          1999        1999
                                               £'000         £'000       £'000
Profit for the financial period                  422           584       1,359
       
Unrealised surplus on revaluation of                                          
investment properties                              -             -       1,488
       
Unrealised surplus on revaluation of                                          
listed and unlisted investments                    -             -       1,505
       
Total recognised gains and 
losses for the period                            422           584       4,352
       
                                                        
Group Balance Sheet (Unaudited)                                               
as at 30 June 2000                                                        
                                                        
                                30 June              30 June       31 December
                                   2000                 1999              1999
                                  £'000                £'000             £'000

                 Note                        
Fixed assets                                                        
Tangible assets   6              18,363               16,505            19,637
Investments       7              11,512                9,779            11,333
                                 29,875               26,284            30,970
       
                                                        
Current assets                                                        
Debtors                           1,805                  560               386
Cash at bank and in hand            609                1,473               415
                                  2,414                2,033               801
       
Creditors                                                        
Amounts falling due
within one year                   1,420                1,225             1,170
Net current assets                  994                  808             (369)
                                                        
Total assets less 
current liabilities              30,869               27,092            30,601
       
                                                        
Capital and reserves                                                        
Called up share capital           1,292                1,292             1,292
Revaluation reserve -property     4,650                4,733             5,219
                    -other        6,551                5,492             6,959
Capital redemption reserve           95                   95                95
Realised capital reserve         12,130                9,992            11,274
Profit and loss account           6,151                5,488             5,762
Shareholders' funds              30,869               27,092            30,601
       
                                                        
                                                        
Group Cash Flow Statement                                                     
  
                                                        
for the six months ended 30 June 2000                                         
              
                                                        
                            First Half              First Half       Full Year
                                  2000                    1999            1999
                                 £'000                   £'000           £'000
      
                                                        
Net cash (outflow)/inflow
from operating activities        (723)                     947           2,044
       
                                                        
Taxation                                                         
Taxation paid                    (100)                   (185)         (1,026)
      
                                                        
Capital expenditure and 
financial investment                                                        

Purchase of fixed assets
- properties                        0                  (2,075)         (5,550)
- listed investments             (798)                   (516)         (1,058)
      
Sale of fixed assets
- properties                    1,412                     986            3,341
- listed investments              664                     781            1,271
       
Net cash inflow/(outflow)
from capital expenditure         
and financial investment        1,278                   (824)          (1,996)
                                               

Financing                                                        
Purchase of own shares              0                   (871)            (871)
                                                        
Net cash outflow from servicing of finance                                    
Dividends paid                   (261)                  (238)            (380)
                                                          
Increase/(decrease) in cash       194                  (1,171)         (2,229)
      
                                                        
Reconciliation of operating profit to net                                     
cash flow from operating activities                                           
            
Operating profit                   683                   666             1,364
(Increase)/decrease in debtors    (1,419)                422               653
Increase/(decrease) in creditors    13                  (141)               27
                                  (723)                  947             2,044
       
                                                        
Notes                                                        
                                                        
for the six months ended 30 June 2000                                         
              
                                                        
                                                        
1.  Interim report                                                        
                                                        
This interim report will not appear as an advertisement in any newspaper but
copies are being sent to all shareholders and are available at the company's
registered office.  The results for the six months ended 30 June 2000 are
unaudited but have been prepared on the basis of accounting policies
consistent with those set out in the audited report and financial statements
for the year ended 31 December 1999 with one exception.  The Group's
accounting policy in respect of income from fixed asset investments has been
modified to take into account the requirements of FRS16.  This accounting
standard requires that dividend income from investments be shown as received
and not grossed up for the related tax credit, which was the previous
practice.  The results for 1999 have been restated to comply with FRS16.      
The interim report does not constitute full accounts as defined by the
Companies Act 1985 but should be read in conjunction with the most recent
financial statements.  Full accounts for 1999 have been delivered to the
Registrar of Companies, bearing an unqualified audit opinion.                 
                                      
                                                        
2.  Gains on disposals of assets                                              
         
                     First Half              First Half              Full Year
                           2000                    1999                   1999
                          £'000                   £'000                  £'000
      
Gains on disposals of assets arising on sales of:                             
                          
Properties                  136                    126                     648
Investments                  28                    223                     220
                            164                    349                     868
       
                                                        
3.  Taxation                                                        
                                                        
                     First Half              First Half              Full Year
                           2000                    1999                   1999
                          £'000                   £'000                  £'000
      
                                                        
Corporation tax             139                     153                    305
       
Corporation tax on
disposals of assets         286                     256                    533
       
                            425                     409                    838
       
                                                        
The taxation charge has been based on the estimated effective tax rate for the
full year.                                                          
                                                        
4.  Dividends                                                        
                                                        
The Board has declared an ordinary interim dividend of 3.00p per share (1999
2.75p) payable on                                                        
31 October 2000 to shareholders registered on 6 October 2000.                 
                                      
                                                        
Notes                                                        
                                                        
for the six months ended 30 June 2000                                         
              
                                                        
                                                        
5.  Earnings per share                                                        
                                                        
The earnings per share calculation for the first half has been made on the
basis of 5,167,240                                                        
shares (1999 5,266,356) which is the weighted average of shares in issue
during the                                                        
period ended 30 June 2000.                                                    
    
In view of the uneven nature of capital disposals, an adjusted earnings per
share has also been                                                        
presented, based on the profit available for distribution of £544,000 (1999
£491,000).                                                        
                                                        
6.  Tangible assets                                                        
Land & buildings (Investment properties)                      Total           
                                                              £'000           
Valuation at 1 January 2000                                  19,637           
Disposals                                                    (1,274)          
Book value at 30 June 2000                                   18,363           
          
                                                        
The valuation of investment properties at 30 June 2000 was £19,342,800. 
Investment properties                                                        
have been valued by Alan Frederick Conning, FRICS, Joint Senior Partner of
Andrews &                                                        
Robertson, Chartered Surveyors.  The valuation has been conducted by him as an
external valuer.                                                        
The valuation has been prepared as at 30 June 2000, in accordance with the
Appraisal &                                                        
Valuation Manual of the Royal Institution of Chartered Surveyors, on the basis
of the properties'                                                        
open market existing use value.  This value has not been incorporated into the
financial statements.                                                        
                                                        
7.  Investments     
Listed and unlisted                                           Total           
                                                              £'000           
Valuation at 1 January 2000                                  11,333           
Additions                                                       798           
Disposals                                                      (619)          
Book value at 30 June 2000                                   11,512           
          
                                                        
The valuation of listed and unlisted investments at 30 June 2000 was
£11,571,000 (1999 £10,556,000).