Final Results

CHELVERTON GROWTH TRUST PLC PRELIMINARY ANNOUNCEMENT OF RESULTS The Directors announce the unaudited statement of results for the year ended 31 August 2003 as follows:- SUMMARISED CONSOLIDATED STATEMENT OF TOTAL RETURN (*incorporating the revenue account) of the Group 1 September 2002 1 September 2001 to 31 August 2003 to 31 August 2002 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Gains/(losses) on - 1,315 1,315 - (1,017) (1,017) investments Income 65 - 65 85 - 85 Investment management (32) (95) (127) (32) (95) (127) fee Other expenses (211) (17) (228) (200) (4) (204) Net return before finance costs and taxation (178) 1,203 1,025 (147) (1,116) (1,263) Interest payable and (10) (30) (40) (19) (58) (77) similar charges Return on ordinary activities before taxation (188) 1,173 985 (166) (1,174) (1,340) Taxation on ordinary - - - - - - activities Return on ordinary activities after taxation (188) 1,173 985 (166) (1,174) (1,340) Dividends in respect - - - - - - of equity shares Transfer (from)/to (188) 1,173 985 (166) (1,174) (1,340) reserves Revenue Capital Total Revenue Capital Total Pence Pence Pence Pence Pence Pence Return per Ordinary (0.99) 6.21 5.22 (0.88) (6.24) (7.12) share * The revenue column of this statement is the revenue account of the Group. CONSOLIDATED BALANCE SHEET As at 31 August 2003 31 August 2003 31 August 2002 £'000 £'000 Fixed assets Investments 6,958 5,755 Current assets Debtors 14 14 Cash at bank 130 113 144 127 Creditors - Amounts falling due within one year Creditors 966 731 Net current liabilities (822) (604) Net assets 6,136 5,151 Share capital and reserves Called up share capital 189 189 Share premium account 2,674 2,674 Capital reserve (1,112) (2,285) Revenue reserve 4,385 4,573 Shareholders' funds 6,136 5,151 Pence Pence Net Asset Value per Ordinary 32.49 27.28 share SUMMARISED CONSOLIDATED STATEMENT OF CASHFLOWS For the year ended 31 August 2003 1 September 2002 1 September 2001 to 31 August 2003 to 31 August 2002 £'000 £'000 Operating activities Investment income received 65 76 Deposit interest received 2 5 Investment management fees paid (138) (117) Secretarial fees paid (44) (44) Other cash payments (183) (226) Net cash outflow from operating (298) (306) activities Servicing of finance Interest paid (40) (78) Net cash outflow from servicing (40) (78) of finance Capital expenditure and financial investment Purchases of investments (944) (768) Sales of investments 1,056 1,750 Acquisition costs - (274) Net cash inflow from capital expenditure and financial 112 708 investment Net cash (outflow) / inflow (226) 324 (Decrease) / increase in cash (226) 324 NOTE The above financial information for the year ended 31 August 2003 and the year ended 31 August 2002 does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The comparative financial information is based on the statutory financial statements for the year ended 31 August 2002. The auditors have reported on those accounts; their report was unqualified and did not contain a statement under section 237 (2) or (3) of the Companies Act 1985. The August 2002 accounts have been delivered to the Registrar of Companies. CHAIRMAN'S STATEMENT The year to 30 October 2003 has been a tumultuous year. During the first seven months to the end of March this year, the net asset value fell from an opening value of 27.28p to 20.45p, a decline of 25%. Over the following five months to the year-end of August 2003 it rose to 32.49p an increase of 58.9%. Over the twelve months to the year-end the net asset value rose 19.1% and over the same period the FTSE All-Share Index, your Company's benchmark, rose 0.9%. Since the year-end your Company's net asset value has risen to 33.68p at 30 September 2003, a further 3.7% rise as compared to a decline of 1.8% in the FTSE All-Share Index. Over the last five years the global equity markets have been exceptionally unsettled. As outlined above, this was clearly evidenced with the extreme volatility within the last year. The war in Afghanistan in 2002, the threat of a worldwide recession compounded in 2002/2003 both by the threat and then the actual war with Iraq caused considerable international uncertainty. This produced a downward spiral in investor confidence and resulted in falling equity markets, particularly in the USA and Europe. The FTSE 100 index stood at 6,930.2 on 30 December 1999 and by the end of March 2003 it had fallen to 3,613.3 with many 'experts' expecting the 3,000 level to be tested. This, however, proved to be the bottom of the trading range and with the positive news on the outcome of hostilities in Iraq, signalled a return of investors to equity markets. The recovery, encouragingly, has been most notable in the smaller companies sector. The high discount of the share price to the net asset value per share remains a concern to the Board and the Manager. The Company continues to seek opportunities to exercise its share buyback powers, and will renew this authority at the forthcoming AGM. The Company may cancel these shares or hold them in treasury when the appropriate legislation becomes effective. During the year the Directors purchased 20,000 shares in the Company and David Horner, the Manager, increased his holding to 681,368 (3.6%) with the purchase of an additional 40,000 shares. With the apparent recovery in the United States and the avoidance of world-wide deflation there is an expectation for a return to growth in the coming year. This will be of great benefit to quality small companies and, while we cannot rule out volatility, we look forward to another year of progress. Pratt Thompson Chairman 29 October 2003

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