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Welsh Indl.Inv.Tst (WII)

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Monday 18 December, 2006

Welsh Indl.Inv.Tst

Half-yearly report - interim results

WELSH INDUSTRIAL INVESTMENT TRUST PLC
INTERIM RESULTS
6 MONTHS ENDED 5 OCTOBER 2006

CHAIRMAN'S INTERIM STATEMENT

Dear Shareholder,

The revenue profit before taxation for the half year ended 5 October,  2006  was
£27,000 against £75,000 for the  comparable  period  last  year.  As  a  result,
revenue earnings per share were 2.0p against 5.6p last time.

The variance in revenue profit is virtually exclusively as  a  result  of  other
operating income falling to a loss of £11,000 this half-year from  a  profit  of
£48,000 in 2005, this latter amount including a non-recurring profit of £21,000.

There was a loss on the capital account of £228,000 for the six months  ended  5
October, 2006 against a profit of £177,000  in  the  corresponding  period  last
year. This was mainly due to falls in the prices of some of  our  AIM  holdings.
Since  5  October,  2006  however  all  of  these  have   now   recovered   with
SpaceandPeople plc hitting new highs and Transense Technologies  now  above  the
level at the start of the financial year.

The net asset value per share at 5 October, 2006 was 490.3p against  511.5p  six
months earlier. This represents a fall of 4.14% against a drop in the  FTSE  All
Share Index of 0.34%.

Details of the Company's ten largest investments  as  at  5  October,  2006  can
be found in note 6.

The Board has decided to increase cash and cash equivalents and thus reduce  the
size of the invested portfolio. The cash element has increased from £301,000  as
at 5 April, 2006 to £1.46 million as at 5 October, 2006 which represents 22%  of
the net asset value.

As in previous years the Board is proposing no interim dividend.

A P Stirling
Chairman

18 December, 2006











WELSH INDUSTRIAL INVESTMENT TRUST PLC
INTERIM RESULTS
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE HALF YEAR ENDED 5 OCTOBER 2006

                     Six months to          Six months to            Year ended
                    5 October 2006         5 October 2005          5 April 2006
             Revenue Capital Total Revenue Capital  Total Revenue Capital Total
               £'000   £'000 £'000   £'000   £'000  £'000   £'000  £'000  £'000
Income:
Dividend and
interest income   80       -    80      71       -     71     185      -    185
Other operating
income           (11)      -   (11      48       -     48      41      -     41
               -----   ----- -----   -----   -----  -----   -----  -----  -----
                  69       -    69     119       -    119     226      -    226
Gains on
investments
held at fair
value              -    (228) (228)      -     177    177       -    821    821
               -----   ----- -----   -----   -----  -----   -----  ----- ------
Total income
And gains on
investments       69    (228) (159)    119     177    296     226    821  1,047
               -----   ----- -----   -----   -----  -----   -----  ----- ------
Expenses
Other operating
Expenses         (40)      -   (40)    (42)      -    (42)    (85)     -    (85)
Finance costs     (2)      -    (2)     (2)      -     (2)     (4)     -     (4)
               -----   ----- -----   -----   -----  -----   -----  ----- ------
                 (42)      -   (42)    (44)      -    (44)    (89)     -    (89)
               -----   ----- -----   -----   -----  -----   -----  ----- ------
Profit/(loss)
before taxation   27    (228) (201)     75     177    252     137    821    958
Taxation           -       -     -       -       -      -       -      -      -
               -----   ----- -----   -----   -----  -----   -----  ----- ------
Profit/(loss)
For the period    27    (228) (201)     75     177    252     137    821    958
               =====   ===== =====   =====   =====  =====   =====  ===== ======

Earnings per
Ordinary share (note 2)      (14.9)p                 18.7p                 71.0p
                             =====                  =====                ======





















WELSH INDUSTRIAL INVESTMENT TRUST PLC
INTERIM RESULTS
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED 5 OCTOBER, 2006


                               Half year ended 5 October, 2006
                                 Ordinary
                                    share     Capital    Retained
                                  capital     reserve    Earnings       Total
                                    £'000       £'000       £'000       £'000
Balance at 5 April, 2006               67       6,546         292       6,905
Profit for the period                   -        (228)         27        (201)
Ordinary dividend paid (Note 3)         -           -         (85)        (85)
Transfer on inter-company movement      -          12         (12)          -
                                  -------     -------     -------     -------
Balance at 5 October, 2006             67       6,330         222       6,619
                                  =======     =======     =======     =======


                               Half year ended 5 October, 2005
                                 Ordinary
                                    share     Capital    Retained
                                  capital     reserve    Earnings       Total
                                    £'000       £'000       £'000       £'000
Balance at 5 April, 2005               67       5,725         240       6,032
Profit for the period                   -         177          75         252
Ordinary dividend paid (Note 3)         -           -         (85)        (85)
                                  -------     -------     -------     -------
Balance at 5 October, 2005             67       5,902         230       6,199
                                  =======     =======     =======     =======


                                    Year ended 5 April, 2006
                                 Ordinary
                                    share     Capital    Retained
                                  capital     reserve    Earnings       Total
                                    £'000       £'000       £'000       £'000
Balance at 5 April, 2005               67       5,725         240       6,032
Profit for the period                   -         821         137         958
Ordinary dividend paid (Note 3)         -           -         (85)        (85)
                                  -------     -------     -------     -------
Balance at 5 April, 2006               67       6,546         292       6,905
                                  =======     =======     =======     =======




















WELSH INDUSTRIAL INVESTMENT TRUST PLC
INTERIM RESULTS
UNAUDITED BALANCE SHEET
AS AT 5 OCTOBER, 2006

                                        5 October      5 October        5 April
                                             2006           2005           2006
Assets                                      £'000          £'000          £'000
Non current assets
  Investments held at fair value            5,190          5,953          6,596
                                          -------        -------        -------
Total non current assets                    5,190          5,953          6,596
                                          -------        -------        -------
Current assets
  Accrued income and prepaid expenses           7              7             19
  Other current assets                         44             54             73
  Cash and cash equivalents                 1,456            263            301
                                          -------        -------        -------
  Total current assets                      1,507            324            393
                                          -------        -------        -------
Total assets                                6,697          6,277          6,989
                                          -------        -------        -------
Current liabilities
  Trade and other payables                    (33)           (33)           (39)
  Current tax payable                           -              -              -
                                          -------        -------        -------
Total current liabilities                     (33)           (33)           (39)
                                          -------        -------        -------

Total assets less current liabilities       6,664          6,244          6,950

Non current liabilities
  8.75% Cumulative Preference shares          (45)           (45)           (45)
                                          -------        -------        -------
Net assets                                  6,619          6,199          6,905
                                          =======        =======        =======
Capital and reserves
  Ordinary share capital (note 4)              67             67             67
  Capital reserve                           6,330          5,902          6,546
  Retained earnings                           222            230            292
                                          -------        -------        -------
Total equity                                6,619          6,199          6,905
                                          =======        =======        =======


Basic net asset value per ordinary share    490.3p         459.2p         511.5p
(Note 5)                                  =======        =======        =======

















WELSH INDUSTRIAL INVESTMENT TRUST PLC
INTERIM RESULTS
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE HALF YEAR ENDED 5 OCTOBER 2006
                                               Half          Half
                                         year ended    year ended    Year ended
                                          5 October     5 October       5 April
                                               2006          2005          2006
                                              £'000         £'000         £'000
Cashflow from operating activities
Investment income received                       70           104           177
Deposit interest received                        10             3             8
Share dealing (loss) / fit                       (2)            1             -
Other income                                      -             2             2
Other cash payments                             (39)          (47)          (94)
                                            -------       -------       -------
Net cash flows from operating activities         39            63            93
                                            =======       =======       =======

Cash flows from investing activities
Purchase of investments                        (299)         (440)         (923)
Sale of investments                           1,498           355           852
                                            -------       -------       -------
                                              1,199           (85)          (71)
                                            =======       =======       =======

Cash flows from financing activities
Preference dividends paid                         -             -            (4)
Equity dividends paid                           (83)          (83)          (85)
                                            -------       -------       -------
                                                (83)          (83)          (89)
                                            =======       =======       =======
Increase/(decrease) in cash and
cash equivalents                              1,155          (105)          (67)

Cash and cash equivalents at start of period    301           368           368
                                            -------       -------       -------
Cash and cash equivalents at end of period    1,456           263           301
                                            =======       =======       =======

























WELSH INDUSTRIAL INVESTMENT TRUST PLC
INTERIM RESULTS
PRINCIPAL ACCOUNTING POLICIES

The Group's principal accounting policies are as follows:

(a) Basis of accounting
 The  financial  statements of the Group and the Company have been  prepared  in
 accordance  with  International  Financial  Reporting  Standards  ("IFRS")   as
 adopted  by  the  European Union.  These comprise standards and interpretations
 approved  by  the  International Accounting Standards Board ("IASB"),  together
 with  interpretations  of the International Accounting Standards  and  Standing
 Interpretations  Committee approved by the International  Accounting  Standards
 Committee  ("IASC") that remain in effect, to the extent that  IFRS  have  been
 adopted by the European Union.

(b)   Basis of preparation
 The   financial  statements  have  been  prepared  under  the  historical  cost
 convention,  exceptfor the revaluation of certain  financial  instruments.  The
 principal accounting policies adopted are set out below.  Where  presentational
 guidance  set  out  in  the Statement of Recommended Practice ("the SORP")  for
 investment trusts issued by the Association of Investment Trust Companies ("the
 AITC") in April 2006 is consistent with the requirements of IFRS, the directors
 have sought to  prepare the  financial statements on a basis compliant with the
 recommendations of the SORP.

(c)   Basis of consolidation
 The  consolidated financial statements incorporate the financial statements  of
 the  Company  and its subsidiary undertakings made up to 5 October  2006.   All
 intra-group  transactions,  balances, income and  expenses  are  eliminated  on
 consolidation.

(d)   Presentation of Income Statement
 In  order  to better reflect the activities of an investment trust company  and
 in  accordance  with  guidance  issued by the AITC,  supplementary  information
 which  analyses  the  Income Statement between items of a revenue  and  capital
 nature  has been presented alongside the Income Statement. Net capital  returns
 may  not  be distributed by way of a dividend.  The net revenue is the  measure
 the  directors  believe  appropriate in assessing the Group's  compliance  with
 certain  requirements  set  out in section 842 of the  Income  and  Corporation
 Taxes  Act  1988. As permitted by section 230 of the Companies  Act  1985,  the
 Company has not presented its own income statement.

(e)   Segmental reporting
 A  business  segment is a group of assets and operations that  are  subject  to
 risks  and  returns  that are different from those of other business  segments.
 The  group  comprises  of  one  business segment only -  the  Investment  Trust
 This  is  consistent  with  internal  reporting.    All  revenues  are  derived
 from  operations  within  the  United   Kingdom   and consequently no  separate
 geographical segment information is provided.

(f)   Dividend and interest income
 Income  from  listed securities, treasury stocks  and  interest  receivable  on
 bank  deposits  is accounted for on a receivable basis.

(g)   Expenses
 All  expenses  and  interest payable are accounted for on  an  accruals  basis.
 All expenses are charged through the income Statement except the expenses which
 are incidental to the disposal of an investment are deducted from the  disposal
 proceeds of the investment.

(h)   Taxation
 The  tax  expense represents the sum of the tax currently payable and  deferred
 tax.
 The  tax  currently  payable is based on taxable profit for the  year.  Taxable
 profit  differs  from  profit before tax as reported in  the  income  statement
 because  it  excludes items of income or expense that are taxable or deductible
 in  other  years  and  it  further excludes items that  are  never  taxable  or
 deductible.  The  Group's  liability for current tax is  calculated  using  tax
 rates  that  have  been enacted or substantively enacted by the  balance  sheet
 date.
 In  line  with the recommendations of the SORP, the allocation method  used  to
 calculate  tax  relief  on expenses presented against capital  returns  in  the
 supplementary  information in the income statement  is  the  "marginal  basis".
 Under  this  basis,  if taxable income is capable of being offset  entirely  by
 expenses presented in the revenue column of the income statement, then  no  tax
 relief is transferred to the capital return column.
 Deferred  tax  is the tax expected to be payable or recoverable on  differences
 between  the  carrying  amounts  of assets and  liabilities  in  the  financial
 statements  and the corresponding tax bases used in the computation of  taxable
 profit,  and  is  accounted  for  using the  balance  sheet  liability  method.
 Deferred  tax liabilities are recognised for all taxable temporary  differences
 and  deferred tax assets are recognised to the extent that it is probable  that
 taxable   profits   will  be  available  against  which  deductible   temporary
 differences can be utilised.
 Investment  trusts  which  have  approval  under  section  842  of  the  Income
 Corporation Taxes Act 1988 are not liable for taxation on capital gains.
 The  carrying  amount of deferred tax assets is reviewed at each balance  sheet
 date  and  reduced to the extent that it is no longer probable that  sufficient
 taxable  profits  will be available to allow all or part of the  assets  to  be
 recovered.
 Deferred  tax  is  calculated at the rates that are expected to  apply  in  the
 period  when  the liability is settled or the asset realised. Deferred  tax  is
 charged  or credited in the income statement, except when it relates  to  items
 charged or credited directly to equity, in which case the deferred tax is  also
 dealt with in equity.

(i)   Investments
 Purchases and sales of listed investments are recognised on the trade date, the
 date on which the  Group  commit  to  purchase  or  sell  the  investment.  All
 investments  are designated upon initial recognition as held at fair value, and
 are  measured  at subsequent reporting dates at fair value, which is either the
 bid price or the last traded price, depending on the convention of the exchange
 on  which  the investment is quoted. Fair values for unquoted  investments,  or
 for investments for which there is only an inactive market, are established  by
 taking into account the  guidelines  issued  by  the  British  Venture  Capital
 Association as follows:
 (i)    Investments which have been made in the last 12  months  are  valued  at
   cost in the absence of overriding factors;
 (ii)   Investments  in companies at an early  stage  of  development  are  also
   valued at cost in the absence of overriding factors;
 (iii)  Where investments have gone beyond the stage in their development in the
   guidelines above, the shares may be  valued  by  having regard to a  suitable
   price - earnings ratio to that company's historic post-tax  earnings  or  the
   net asset value of the investment; and
 (iv)   Where  a  value  is  indicated  by  a  material  arm's   length   market
   transaction  by a third party in the shares of a company, that value  may  be
 used.
 Gains and losses on the disposal of investments and  permanent  impairments  in
 the value of investments are dealt with in capital  reserves -  realised,   and
 unrealised gains and losses on the revaluation of investments are dealt with in
 capital reserves - unrealised.
 Year end exchange rates are used to translate the value  of  investments  which
 are denominated in foreign currencies.
 Fixed  income  and  equity  investments  together  with  interests   in   Group
 undertakings are regarded as financial fixed assets as they are held for long -
 term investment purposes.

(j)   Cash and cash equivalents
 Cash  comprises cash on hand and demand deposits.  Cash equivalents  are  short
 term,  highly liquid investments that are readily convertible to known  amounts
 of cash and which are subject to an insignificant risk of changes in value.

(k)   Dividends payable
 All  dividends  are  recognised in the period in which  they  are  approved  by
 shareholders.

(l)   Trade and other payables
 Other payables are not interest-bearing and are stated at their nominal value.

(m)   Capital reserves
 The capital reserve comprises of both realised and unrealised elements.
 Capital Reserve - Realised.
 The following are accounted for in this reserve:
 - gains and losses on the realisation of investments.
 - realised exchange differences of a capital nature.
 - expenses  and  finance  costs, together with the  related  taxation  effect,
 charged to this reserve in accordance with the above policies.

 Capital Reserve - Unrealised.
 The following are accounted for in this reserve:
 -  increases  and decreases in the valuation of investments held at the period-
 end.
 -  unrealised exchange differences of a capital nature.
 -  provisions charged against carrying value of investments held at the  period
 end.

(n)   Revenue reserve
 All other income  and  expenses  not  recognised  in the  capital  reserve  are
 recognised in this reserve.  Distributions can only be made  from  the  revenue
 reserve.































WELSH INDUSTRIAL INVESTMENT TRUST PLC
INTERIM RESULTS
NOTES TO THE ACCOUNTS

1 COMPARATIVE INFORMATION

The financial information contained in this interim report does  not  constitute
statutory accounts as defined in section 240 of  the  Companies  Act  1985.  The
financial information for the half years ended 5 October 2006 and 5 October 2005
has not been audited. The information for the year ended 5 April 2006  has  been
extracted from the latest published audited financial  statements.  The  audited
financial statements for the year ended 5 April 2006 have been  filed  with  the
Registrar  of  Companies.  The  report  of  the  auditors  on  those   financial
statements contained no qualification or statement under section 237(2)  or  (3)
of the Companies Act 1985.


2 EARNINGS PER ORDINARY SHARE

Basic return
Basic earnings per ordinary share is based on the net loss for the half year  of
£201,000  (half  year  ended 5 October, 2005: gain £252,000; year ended 5 April,
2006: gain £958,000)  and  on 1,350,000 ordinary shares.

The  earnings per ordinary share figures detailed above can be further  analysed
between revenue and capital as follows:-

                                                Half          Half
                                          year ended    year ended    Year ended
                                           5 October     5 October       5 April
                                                2006          2005          2006
                                               £'000         £'000         £'000
Net revenue profit attributable to equity
holders of the parent                             27            75           137
Net capital (loss)/profit attributable to
equity holders of the parent                    (228)          177           821
                                             -------       -------       -------
Net total (loss)/profit                         (201)          252           958
                                             =======       =======       =======

The weighted average number of ordinary shares in issue during  the  period  was
1,350,000

Earnings per share                             Pence         Pence         Pence
Revenue                                          2.0           5.6          10.2
Capital                                        (16.9)         13.1          60.8
                                             -------       -------       -------
Total earnings per share                       (14.9)         18.7          71.0
                                             =======       =======       =======

There are no potentially dilutive shares in issue













3 DIVIDENDS

                                                Half          Half
                                          year ended    year ended    Year ended
                                           5 October     5 October       5 April
                                                2006          2005          2006
                                               £'000         £'000         £'000
Amounts recognised as distributions to
equity holders in the period:

Final dividend for the year ended 5 April,
2006 of 6.3p (2005: 6.3p) per share               85            85            85
                                             -------       -------       -------
                                                  85            85            85
                                             =======       =======       =======


4 SHARE CAPITAL

(i) Ordinary
1,350,000 ordinary shares were in issue throughout the periods covered  in  this
statement.

(ii) Preference
In addition there were in issue 225,000 8.75% cumulative  preference  shares  of
20p each. The preference dividend is cumulative and payable in one instalment on
5th April every year, and is deemed to accrue evenly from day to day. The
voting
rights of the preference shareholders are restricted to resolutions  to  winding
up the company, or to vary the special rights attached to the preference shares,
in which event each shareholder is entitled to one vote. Upon the winding up  of
the company the preference shareholders rank first in  the  return  of  capital,
being however restricted to the  nominal  amount  paid  up,  together  with  any
arrears of the preference dividend.


5 NET ASSET VALUE PER ORDINARY SHARE
Net asset value per ordinary share is based on  Equity  attributable  to  equity
shareholders of £6,619,000 (half year ended 5  October,  2005:  6,199,000;  year
ended 5 April, 2006: £6,905,000) and on  1,350,000  ordinary  shares  being  the
number of ordinary shares in issue at each period end.


6 TEN LARGEST INVESTMENTS

As at 5 October, 2006 the Company's ten largest investments were:-

                                      Market Value       % of invested
                                            £'000s           portfolio
Treasury Stock 6.25% 2010                      196                3.24
British American Tobacco plc                   428                8.12
London & Associated Properties plc             352                6.68
National Grid plc                              207                3.92
Scottish Power plc                             162                3.08
United Utilities plc                           166                3.14
Image Scan Holdings plc                        360                6.84
Investinmedia plc                              164                3.11
SpaceandPeople plc                             837               15.88
Transense Technologies plc                     231                4.37
                                             -----               -----
                                             3,103               58.38
                                             =====               =====                                                                                                                                                                                                                                            

a d v e r t i s e m e n t