Interim Results

Elderstreet Downing VCT PLC
27 September 2000




INTERIM RESULTS

CHAIRMAN'S STATEMENT

I am pleased to present the interim statement for Elderstreet Downing VCT plc
for the six months ended 30 June 2000.

VENTURE CAPITAL INVESTMENTS

During the period under review the company disposed of holdings in six
investee companies realising some substantial gains. A significant proportion
of the Company's original £238,000 investment in Freecom.net Plc (subsequently
renamed Systems Union Group Plc) was sold for £1.2 million.  Although
Freecom.net's share price is now significantly below its peak, the remaining
holding is still valued at £457,000 at the period end. The Company's holding
in Honeysuckle Plc, which originally cost £150,000, was sold for £624,000.  In
addition, the company disposed of its £500,000 investment in Visua Limited. 
Visua had not been performing to target, however the investment manager was
actively involved in negotiating a trade sale resulting in disposal proceeds
of £785,000.  

One of the Company's investments, Topnotch Healthclubs Plc, floated on AIM
during the period, which resulted in unrealised gains of £1.2 million.

The company has continued to make further investments.  During the period
twelve new venture capital investments were made totalling £2.4 million in
addition to four follow-on investments totalling £0.5 million.   

The Directors have reviewed the portfolio at the period end and decided that
it was appropriate to make provisions totalling £634,000 against three of the
company's investments which have not been performing to plan.

FIXED INTEREST INVESTMENTS

The balance of the portfolio is invested in shares and bonds and continues to
be managed by Cazenove Fund Management Limited.  Returns from these
investments have been broadly in line with our expectations with the portfolio
giving rise to capital losses of £19,000 during the period. 

RESULTS AND DIVIDEND

As a result of the significant levels of gains realised during the period the
Directors have decided to revoke the Company's investment company status in
order to pay a tax-free capital distribution to shareholders.  This
distribution of 10p per share will be paid on 3 November 2000 to shareholders
on the register at 13 October 2000.

The revenue return after taxation for the period was £128,000 (0.8p per
share). The net asset value per share ('NAV') at the period end was 119.8p
before the distribution described above and 109.8p afterwards. This represents
a small decline of 5.3p per share when compared to the NAV at 31 December 1999
of 125.1p.  The decline is mainly due to the general reduction in the
valuations of technology stocks.

REPURCHASE OF SHARES

The Directors are conscious that the Company's share price is affected by the
illiquidity of its shares in the market resulting from the requirement that
shareholders must retain their shares at least five years in order to retain
their tax benefits.  The Directors are continuing to monitor the market in the
Company's shares and will make share purchases when appropriate. 

PUBLICATION OF SHARE PRICES

Elderstreet Downing VCT plc's share price continues to be quoted in the
Financial Times on a daily basis in the 'Investment Companies' section.

OUTLOOK

Your Board is very pleased with the progress made by the Company to date and
that, after less than three years, it is in a position to pass on capital
profits to shareholders.  The Board believes that the Company's portfolio has
good potential for growth.  Since the period end another of the company's
investments, Software for Sport Plc (formerly Computer Software Limited),
floated on AIM at a price substantially in excess of the original cost.  Your
Company continues to be over 80% invested in VCT qualifying companies and thus
the focus in the future will be on managing the existing portfolio in order to
maximise returns for shareholders.  

David Brock
Chairman
27 September 2000


UNAUDITED STATEMENT OF TOTAL RETURNS
(Incorporating the revenue account)
for six months ended 30 June 2000

                                          Six months ended 30 June 2000

                                    Revenue          Capital            Total
                                      £'000            £'000            £'000

Income                                  320            -                  320

Gains/(losses) on investments:
- Realised                                _            2,029            2,029
- Unrealised                              _           (2,878)          (2,878)

Management fees                         (34)            (103)            (137)


Other expenses                         (110)                -            (110)
                                     _________       _________       _________
Return on ordinary 
activities before taxation              176              (952)           (776)

Tax on ordinary activities              (48)               28             (20)
                                     _________       _________       _________

Return attributable to
equity shareholders                      128             (924)           (796)

Net dividends                               -          (1,514)         (1,514)
                                     _________       _________       _________

Transfer to/(from) reserves               128          (2,438)         (2,310)
                                     _________       _________       _________

Return per share                       0.8p           (6.1p)          (5.3p)
            

                                          Six months ended 30 June 1999

                                    Revenue          Capital            Total
                                     £'000            £'000            £'000

Income                                 436                -               436

Gains/(losses) on investments:
- Realised                               -              (79)              (79)
- Unrealised                             -               66                66

Management fees                       (29)             (89)              (118)

Other expenses                       (101)                -              (101)
                                  _________        _________         _________
Return on ordinary 
activities before taxation            306              (102)               204

Tax on ordinary activities            (80)               23               (57)
                                  _________        _________         _________

Return attributable to
equity shareholders                    226              (79)               147

Net dividends                         (227)                -             (227)
                                  _________       _________          _________
     
Transfer to/(from) reserves             (1)              (79)             (80)
                                  _________       _________          _________
     
Return per share                    1.5p           (0.5p)               1.0p
            

                                           Year 31 December 1999

                                                    Total
                                                    £'000
                              
Income                                                837                   

Gains/(losses) on investments:                
- Realised                                            185            
- Unrealised                                        4,512                     
         
Management fees                                      (236)               

Other expenses                                       (217)
                             
Return on ordinary                               _________
activities before taxation                           5,081

Tax on ordinary activities                           (101)
                                                 _________
                             
Return attributable to
equity shareholders                                  4,980

Net dividends                                         (379)           
                                                 _________

Transfer to/(from) reserves                          4,601          
                                                 _________       
     
Return per share                                    32.9p


The revenue column of this statement is the profit and loss account of the
Company.

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

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

The comparative figures were in respect of the six months ended 30 June 1999
and the year ended 31 December 1999 respectively.


UNAUDITED SUMMARISED BALANCE SHEET
as at 30 June 2000
                                     30 June          30 June           31 Dec
                                        2000             1999             1999
                                       £'000            £'000            £'000

Fixed assets

Venture capital                       14,093            6,789           15,185
investments

Listed fixed income 
investments                            1,435            6,928            2,355
                                     _________        _________      _________
                
                                      15,528           13,717           17,540

Net current assets                     1,098              553            1,395
                                     _________        _________      _________
Net assets                            16,626           14,270           18,935
                                     _________        _________      _________

Capital and Reserves

Called up share capital                   756              758             756
Share premium account                  13,636           13,636          13,636
Capital redemption reserve                  1                -               1
Capital reserve-realised                  405             (223)           (34)
Capital reserve-unrealised              1,650               65           4,527
Revenue reserve                           178               34              49
                                    _________        _________       _________
 
Total shareholders' funds              16,626           14,270          18,935
                                    _________        _________       _________
 

Net asset value per share              109.8p            94.2p          125.1p
 


NOTES TO THE UNAUDITED FINANCIAL STATEMENTS

1. The above financial information has been prepared on the basis of the
accounting policies set out in the Annual Report.

2. The calculation of the revenue and capital return per share for the period
is based upon the net revenue and capital return after tax of £128,000 and
(£924,000) respectively, divided by the weighted average number of shares in
issue during the period of 15,136,000.

3. The unaudited financial statements set out above 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 December 1999 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.

4. Copies of the unaudited interim results will be sent to shareholders
shortly. Further copies can be obtained from the Company's Registered Office. 


UNAUDITED CASHFLOW STATEMENT
For the six months ended 30 June 2000

                                  Six months       Six months             Year
                                       ended            ended            ended
                                     30 June          30 June           31 Dec
                                        2000             1999             1999
                                       £'000            £'000            £'000

Cash inflow from operating
activities and returns on
investments (see note
1 below)                                   60            225              335 
                                  
Servicing of finance - 
Dividends paid on ordinary shares           -           (243)            (470)

Taxation - advance corporation 
tax paid                                    -            (63)             (63)

Investing activities
Purchase of listed fixed income
securities                                  -           (1,354)        (1,354)
Proceeds on disposal of fixed 
income securities                         940            2,005          6,499
Purchase of venture capital 
investments                            (3,203)          (4,607)        (8,685)
Proceeds on disposal of venture 
capital investments                     3,175                -             472
                                     _________       _________       _________
                                          912           (3,956)        (3,068)
                                     _________       _________       _________

Financing
Purchase of own shares                       -               -            (14)
                                     _________       _________       _________
Net each inflow from financing               -               -            (14)
                                     _________       _________       _________

Increase/(decrease) in cash 
(see note 2 below)                         972          (4,037)        (3,280)
                                     _________       _________       _________

Notes to the cashflow statement:

1. Cash inflow from operating activities and returns on investments

Net revenue before taxation                176             306            561
Management fees charged to capital        (102)            (89)          (177)
Increase/(decrease) in accrued income/
other debtors                              (64)             66            (40)
Increase/(decrease) in other creditors      50             (58)            (9)
                                      _________       _________      _________
                                             60             225           335
                                      _________       _________      _________

2. Analysis of changes in cash during the period

Beginning of period                       1,249           4,529          4,529
Net cash inflow/(outflow)                   972          (4,037)       (3,280)
                                      _________       _________      _________
End of period                             2,221             492          1,249
                                      _________       _________      _________