Interim Results

PICCADILLY GROWTH TRUST PLC

PRELIMINARY ANNOUNCEMENT OF UNAUDITED RESULTS

The Directors announce the unaudited statement of results for the period ended
31 October 2002 as follows:

CONSOLIDATED STATEMENT OF TOTAL RETURN

(*incorporating the revenue account)

                                    1 May 2002                    1 May 2001 
                                                                             
                            to 31 October 2002            to 31 October 2001 
                                                                             
                   Revenue   Capital     Total   Revenue  Capital     Total  
                                                                             
                     £'000     £'000     £'000     £'000    £'000     £'000  
                                                                             
                                                                             
                                                                             
Losses on                -    (3,757)   (3,757)        -    (3,694)   (3,694)
investments                                                                  
                                                                             
Exchange losses          -        (3)       (3)        -        (8)       (8)
on capital items                                                             
                                                                             
Dividends and          192         -       192       139         -       139 
interest                                                                     
                                                                             
Subsidiary             (19)        -       (19)       12         -        12 
dealing (losses)                                                             
/gains                                                                       
                                                                             
Other income             3         -         3         -         -         - 
                                                                             
Investment              (7)      (66)      (73)        -       (37)      (37)
management fee                                                               
                                                                             
Other expenses         (64)        -       (64)      (47)        -       (47)
                                                                             
                                                                             
                                                                             
Net return on          105    (3,826)   (3,721)      104    (3,739)   (3,635)
ordinary                                                                     
activities                                                                   
before finance                                                               
costs and                                                                    
taxation                                                                     
                                                                             
                                                                             
                                                                             
Interest payable        (5)      (38)      (43)        -       (37)      (37)
and similar                                                                  
charges                                                                      
                                                                             
                                                                             
                                                                             
Return on              100    (3,864)   (3,764)      104    (3,776)   (3,672)
ordinary                                                                     
activities                                                                   
before taxation                                                              
                                                                             
Taxation on             (8)        -        (8)       (5)        -        (5)
ordinary                                                                     
activities                                                                   
                                                                             
Return on               92    (3,864)   (3,772)       99    (3,776)   (3,677)
ordinary                                                                     
activities after                                                             
tax for the                                                                  
period                                                                       
                                                                             
Dividends in          (130)        -      (130)     (107)        -      (107)
respect of                                                                   
equity shares                                                                
                                                                             
Transfer from          (38)   (3,864)   (3,902)       (8)   (3,776)   (3,784)
reserves                                                                     
                                                                             
Return per           0.71p   (29.61)p  (28.90)p     0.95p  (36.04)p  (35.09)p
ordinary share                                                               

*The revenue column of this statement is the consolidated revenue account of
the Group.

These accounts have been prepared using the accounting standards and policies
adopted at the previous year-end. As stated in the Annual Report for the year
ended 30 April 2002, with effect from 1 May 2002 the Company has allocated its
management fees and finance costs in the ratio 90:10 to the capital reserve and
revenue account respectively in line with the Directors' expectations of the
ratio of relative returns in the form of capital gains and income. Previously,
such expenses were fully charged to capital reserve. All other expenses have
been charged in full to the revenue account. This is not considered a change in
accounting policy and therefore the comparative figures have not been restated.

The return per ordinary share has been based on 13,049,698 (2001: 10,477,192)
ordinary shares, being the weighted average number of shares in issue during
the period.

All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued during the period.

SUMMARISED CONSOLIDATED BALANCE SHEET

                                         As at          As at          As at 
                                                                             
                                    31 October       30 April     31 October 
                                                                             
                                          2002           2002           2001 
                                                                             
                                         £'000          £'000          £'000 
                                                                             
Fixed assets                                                                 
                                                                             
Investments                             10,974         14,813         11,497 
                                                                             
                                                                             
                                                                             
Net current liabilities                 (1,621)        (1,558)        (1,260)
                                                                             
Net assets attributable                  9,353         13,255         10,237 
to ordinary shareholders                                                     
                                                                             
                                                                             
                                                                             
Current period deficit                      38              -              8 
                                                                             
Total net assets for the                 9,391         13,255         10,245 
purpose of calculating                                                       
the net asset value per                                                      
ordinary share                                                               
                                                                             
Net asset value per                     71.96p        101.57p         95.31p 
ordinary share:                                                              

 

                                                                             
                                                                             
SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS                              
                                                                             
                                     1 May 2002 to             1 May 2001 to 
                                                                             
                                        31 October                31 October 
                                              2002                           
                                                                        2001 
                                                                             
                                             £'000                     £'000 
                                                                             
                                                                             
                                                                             
Net cash inflow from operating                  12                        80 
activities                                                                   
                                                                             
Servicing of finance                                                         
                                                                             
Loan interest paid                             (42)                      (40)
                                                                             
Net cash outflow from servicing                (42)                      (40)
                                                                             
of finance                                                                   
                                                                             
Taxation recovered                               9                        17 
                                                                             
                                                                             
                                                                             
Capital expenditure and financial                                            
investment                                                                   
                                                                             
Purchases of listed investments             (2,291)                   (4,389)
                                                                             
Sales of listed investments                  2,399                     2,230 
                                                                             
                                                                             
                                                                             
Net cash inflow/(outflow) from                 108                    (2,159)
capital expenditure and financial                                            
investment                                                                   
                                                                             
                                                                             
                                                                             
Equity dividends paid                         (107)                      (82)
                                                                             
Net cash outflow before financing              (20)                   (2,184)
                                                                             
                                                                             
                                                                             
Financing                                                                    
                                                                             
Amounts drawn/(repaid) under                   175                    (1,050)
revolving credit facility                                                    
                                                                             
Issue of ordinary shares                       385                     3,154 
                                                                             
Expenses of share issue                        (38)                        - 
                                                                             
Net cash inflow from financing                 522                     2,104 
                                                                             
Increase/(decrease) in cash                    502                       (80)
                                                                             

The above financial information does not constitute statutory financial
statements as defined in Section 240 of the Companies Act 1985. The comparative
financial information is based on the statutory financial statements for the
period ended 30 April 2002. Those financial statements, upon which the auditors
issued an unqualified opinion, have been delivered to the Registrar of
Companies.

CHAIRMAN'S STATEMENT

The six-month period to 31 October 2002 has been disappointing with the
Piccadilly portfolio under-performing the benchmark. The asset value of your
trust declined by 29.15% compared to a decrease of 24.82% in the benchmark FTSE
World-Europe Index.

Your directors are pleased to declare an interim dividend of 1.0p net and in
the absence of unforeseen circumstances expect to recommend a final dividend,
to be paid at the end of August 2003, of 1.0p net. The interim dividend will be
paid on 28 February 2003 to shareholders on the register at 14 February 2003.
The ex-dividend date will be 12 February 2003. The payment of the interim
dividend requires the partial use of our revenue reserves as it is not fully
covered by earnings, our investment manager is adjusting the portfolio to
ensure the final dividend has better cover.

Stockmarkets generally have had a disastrous performance over the last six
months. In the main this has been led by the USA where the accounting scandal
at Enron and others resulted in loss of confidence about corporate earnings. In
the UK we have had Marconi as our own bête noir. Because of the severe fall in
markets, life companies have downgraded their growth expectations and switched
a proportion of funds from equities to fixed interest and property, creating
significant selling pressure. As a result we now have stockmarkets that are
lower than they were 5 years ago.

Our portfolio has suffered. Although we had reduced gearing at the start of the
period we did put money in as the market was falling. As a result this
exacerbated the fall in net assets and resulted in us underperforming the
benchmark. More details of the trust portfolio and changes made over the period
were given in the manager's quarterly reports, which were circulated soon after
the end of each quarter. The reports contain details of the largest investments
together with country and sector analyses. If you have not received this and
would like a copy, please contact our manager, JO Hambro Capital Management on
020 7747 5678 or access through the manager's web site www.johcm.co.uk

Gearing hinders in falling markets and helps in rising markets. Since the end
of October, the net asset value has risen by 7.5%, outperforming the benchmark
FTSE World-Europe Index which was up 5.6%. We do tend to outperform in rising
markets and, given a return to more stable markets, hope that this will
continue through the rest of the year.

Peter Metcalfe

Chairman

11 December 2002