Interim Results

SchroderJapan Growth Fund PLC
11 April 2007


                                                                   11 April 2007

                         SCHRODER JAPAN GROWTH FUND PLC

                           Unaudited Interim Results


The Directors of Schroder Japan Growth Fund plc (the 'Company') announce the
Company's unaudited interim results for the six months ended 31 January 2007.


                                                   For the six months ended         For the six months ended
                                                            31 January 2007                  31 January 2006

                                              Revenue    Capital      Total     Revenue    Capital     Total
                                               Return     Return     Return      Return     Return    Return
                                                £'000      £'000      £'000       £'000      £'000     £'000
(Losses)/gains on investments held at               -    (5,827)    (5,827)           -     37,541    37,541
fair value
Exchange gains                                      -      2,400      2,400           -      1,152     1,152
Income                                            920          -        920         844          -       844
Investment management fee                       (808)          -      (808)       (849)          -     (849)
Administrative expenses                         (200)          -      (200)       (170)          -     (170)
Net (losses)/return before finance costs         (88)    (3,427)    (3,515)       (175)     38,693    38,518
and taxation
Interest payable                                (125)          -      (125)        (56)          -      (56)
Net (losses)/return on ordinary                 (213)    (3,427)    (3,640)       (231)     38,693    38,462
activities before taxation
Taxation on ordinary activities                  (62)          -       (62)        (58)          -      (58)
Net (losses)/return on ordinary                 (275)    (3,427)    (3,702)       (289)     38,693    38,404
activities after taxation attributable
to equity shareholders
Net (losses)/return per ordinary share        (0.22)p    (2.74)p    (2.96)p     (0.23)p     30.95p    30.72p


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


The total column of this statement is the profit or loss account of the Company.



Reconciliation of Movements in Shareholders' Funds


                          Share       Share       Share     Warrant    Capital    Revenue       Total
                        capital     premium    purchase    exercise   reserves    reserve
                                    account     reserve     reserve
                          £'000       £'000       £'000       £'000      £'000      £'000       £'000
Balance at 31 July       12,501           7      97,205           3     17,108    (7,381)     119,443
2005                                                        
Net profit from               -           -           -           -     38,693      (289)      38,404
operating activities
Balance at 31 January    12,501           7      97,205           3     55,801    (7,670)     157,847
2006



                         Share       Share       Share     Warrant   Capital     Revenue       Total
                       capital     premium    purchase    exercise  reserves     reserve
                                   account     reserve     reserve
                         £'000       £'000       £'000       £'000     £'000       £'000       £'000
Balance at 31 July      12,501           7      97,205           3    17,108     (7,381)     119,443
2005
Net profit from              -           -           -           -    23,016       (295)      22,721
operating activities
Balance at 31 July      12,501           7      97,205           3    40,124     (7,676)     142,164
2006



                         Share       Share       Share     Warrant   Capital     Revenue       Total
                       capital     premium    purchase    exercise  reserves     reserve
                                   account     reserve     reserve
                         £'000       £'000       £'000       £'000     £'000       £'000       £'000
Balance at 31 July      12,501           7      97,205           3    40,124     (7,676)     142,164
2006
Net profit from              -           -           -           -   (3,427)       (275)     (3,702)
operating activities
Balance at 31           12,501           7      97,205           3    36,697     (7,951)     138,462
January 2007



Balance Sheet                                              At 31 January 2007 At 31 January 2006 At 31 July 2006
                                                                        £'000              £'000           £'000
Fixed Assets
Investments held at fair value through profit or loss                 159,838            180,581         167,409

Current Assets
Debtors                                                                   404                137           2,083
Cash at bank                                                            2,169              4,098           5,696
                                                                        2,573              4,235           7,779

Creditors: amounts falling due within one year                       (23,949)           (26,969)        (33,024)
Net current liabilities                                              (21,376)           (22,734)        (25,245)
Net assets attributable to shareholders                               138,462            157,847         142,164

Capital and Reserves
Called up share capital                                                12,501             12,501          12,501
Share premium account                                                       7                  7               7
Share purchase reserve                                                 97,205             97,205          97,205
Warrant exercise reserve                                                    3                  3               3
Capital reserves                                                       36,697             55,801          40,124
Revenue reserve                                                       (7,951)            (7,670)         (7,676)
Total equity shareholders' funds                                      138,462            157,847         142,164
Net asset value per ordinary share                                    110.76p            126.27p         113.72p



Abridged Cash Flow Statement                                     For the six        For the six     For the year
                                                               months ended       months ended             ended
                                                              31 January 2007    31 January 2006   31 July  2006
                                                                        £'000              £'000           £'000

Net cash outflow from operating activities                              (287)              (157)           (231)

Net cash inflow/(outflow) from investing activities                     1,342            (4,776)         (7,794)

Net cash inflow/(outflow) before financing                              1,055            (4,933)         (8,025)

Net cash  (outflow)/inflow from financing                             (3,980)              4,918           9,738

Net cash (outflow)/inflow in the year                                 (2,925)               (15)           1,713


Reconciliation of net cash inflow to movement in net debt

Movement in cash in the year                                          (2,925)               (15)           1,713
Movement in bank loan to finance investments                            3,980            (4,918)         (9,738)
Change in net debt arising from cash flows                              1,055            (4,933)         (8,025)
Exchange gains on revaluation currency loan and cash                    2,400              1,152           1,853
balances
Net debt brought forward                                             (24,727)           (18,555)        (18,555)
Net debt carried forward                                             (21,272)           (22,336)        (24,727)




Notes



1. Basis of preparation

The interim financial statements have been prepared under the historical cost
convention, modified to include the revaluation of investments and in accordance
with the Companies Act 1985 and Generally Accepted Accounting Principles (UK
GAAP) and the Statement of Recommended Practice 'Financial Statement of
Investment Trust Companies ('SORP') issued in January 2003 and revised in
December 2005. The same accounting policies used for the year ended 31 July 2006
have been applied.



2 Deficit per ordinary share

The basic revenue deficit per ordinary share is based on the net revenue deficit
on ordinary activities after interest payable and taxation of £275,000 (31
January 2006: deficit of £289,000) and on 125,008,200 (31 January 2006:
125,008,200) ordinary shares, being the weighted average number of shares in
issue in the year.

The basic capital return per ordinary share is based on the net losses on
ordinary activities after interest payable and taxation of £3,427,000 (31
January 2006: return of £38,693,000) and on 125,008,200 (31 January 2006:
125,008,200) ordinary shares, being the weighted average number of shares in
issue in the year.

The basic total return per ordinary share is based on the net deficit on
ordinary activities after interest payable and taxation of £3,702,000 (31
January 2006: return of £38,404,000) and on 125,008,200 (31 January 2006:
125,008,200) ordinary shares, being the weighted average number of shares in
issue in the year.

3 Net asset value per ordinary share

Net asset value per ordinary share is based on 125,008,200 (31 January 2006:
125,008,200 and 31 July 2006: 125,008,200) ordinary shares in issue.

4 Results

The above financial information is unaudited and does not constitute statutory
accounts under Section 240 of the Companies Act 1985 (as amended). Statutory
accounts for the financial year ended 31 July 2006 have been reported on by the
Company's auditors and delivered to the Registrar of Companies.  The report of
the auditors was unqualified and did not contain a statement under Section 237
(2) or (3) of the Companies Act 1985.



This statement was approved by the Board of Directors on 11 April 2007.




INVESTMENT MANAGER'S REVIEW



Performance



The Company's net asset value rose by 7.9% in yen terms during the six month
period to 31 January 2007, slightly underperforming the benchmark index, which
rose by 10.1% over the same period. The Company's net asset value fell 2.6% in
sterling terms during the six months to 31 January 2007 whilst the benchmark
declined by 0.7% in sterling.



The dominant features of the period under review were the strength of the
Japanese stock market and the weakness of the yen relative to other major
currencies, in particular sterling. The yen/sterling exchange rate on 31 January
2007 stood close to its lowest level seen over the last 15 years.



The market was extremely polarised, particularly latterly, with steel, shipping,
real estate and utility sectors performing strongly buoyed by a favourable
regional backdrop and market preoccupation with strong free cash flow. Banks and
Retail were among the worst performing sectors. As has been witnessed on a
number of occasions in the recent past, the market was very liquidity and
sentiment driven. Whilst a more fundamental, value-driven approach did not work
well under such conditions, it has provided us again with numerous opportunities
at a stock level, which have been ignored by the market.



Outlook



The outlook for this year remains mixed. Exports may be weaker if overseas
demand weakens or the yen appreciates.  In the domestic economy, consumption
growth is likely to improve as a tight labour market forces Japanese companies
to raise wages. However, negative impacts from a squeeze in consumer credit and
the end of special income tax reductions may offset this to some extent.
Overall, company profit forecasts are likely to be beaten at year end results in
May-June. Companies can still expect to generate 10%+ earnings growth next
fiscal year if global demand remains steady and domestic consumption improves.



Investment Policy



Corporate earnings newsflow continues to support a market which in our view is
no longer compellingly undervalued. Though profit forecasts seem conservative
for this year, we expect earnings momentum to slow next fiscal year and the
market to struggle to re-rate much further. That said, a number of segments of
the market look good value and we have added to retail stocks, such as apparel
clothing retailer, Shimamura, and to auto-parts makers, such as Calsonic Kansei.
Smaller companies look selectively better value, having significantly de-rated
over the course of last year. Whilst still cautious on bank shares, prolonged
underperformance and the prospect of widening lending spreads make them more
interesting from a near-term valuation standpoint. Our stock selection is
focused on some regional banks with good growth prospects, like Chiba Bank, and
undervalued city banks, like Mizuho Financial.



The period saw an increase in corporate activity, with two of the Company's
holdings subject to management buyouts and one to a takeover. Whilst it is
encouraging to see more such activity taking place, often the premium to the
share price is less than we would wish. The interest of private equity funds and
a very gradual shift toward greater shareholder awareness are becoming
increasingly important market themes and a supporting reason for investment in a
number of the smaller, more deeply undervalued stocks, such as Chubu Nippon
Broadcasting, T&K Toka and Inabata.



Given the still large number of attractive investment opportunities,
notwithstanding quite demanding market valuations, the Company has retained a
net gearing level of 15.4%.



Schroder Investment Management Limited

11 April 2007





INTERIM REPORT

The Interim Report will be mailed to registered shareholders at their registered
addresses. Copies of the Interim Report will be made available from the date of
release at the Company's registered office, 31 Gresham Street, London, EC2V 7QA.



Enquiries:                          Schroder Investment Management Limited

John Spedding                                              (020 7658 3206)

11 April 2007


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