Interim Results

CHELVERTON GROWTH TRUST PLC PRELIMINARY ANNOUNCEMENT OF RESULTS The Directors announce the unaudited statement of results for the period 1 September 2004 to 28 February 2005 as follows:- SUMMARISED STATEMENT OF TOTAL RETURN (*incorporating the revenue account) of the Company Six months to Six months to 28 February 2005 29 February 2004 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Gains on investments - 1,066 1,066 - 1,343 1,343 Dividends and interest 16 - 16 17 - 17 Investment management fee (23) (69) (92) (21) (64) (85) Other expenses (106) - (106) (108) - (108) Net return on ordinary activities before finance costs and (113) 997 884 (112) 1,279 1,167 taxation Interest payable and (6) (18) (24) (5) (14) (19) similar charges Transfer (from)/to (119) 979 860 (117) 1,265 1,148 reserves Revenue Capital Total Revenue Capital Total Pence Pence Pence Pence Pence Pence Return per Ordinary share (0.66) 5.40 4.74 (0.64) 6.87 6.23 *The revenue column of this statement is the revenue account of the Company. All revenue and capital items in the above statement derive from continuing operations. BALANCE SHEET As at 28 February 2005 As at As at As at 28 February 2005 31 August 29 February 2004 2004 (unaudited) (audited) (unaudited) £'000 £'000 £'000 Fixed assets Investments 8,453 7,711 7,337 Current assets Debtors 108 33 11 Cash at bank 23 - 28 131 33 39 Creditors - amounts falling due within one year Bank overdraft 851 865 181 Creditors 52 58 44 903 923 225 Net current liabilities (772) (890) (186) Net assets 7,681 6,821 7,151 Share capital and reserves Share capital 182 182 182 Share premium account 2,674 2,674 2,674 Capital reserve 720 (259) 53 Capital redemption reserve 7 7 7 Revenue reserve 4,098 4,217 4,235 Total shareholders' funds 7,681 6,821 7,151 Pence Pence Pence Net Asset Value per Ordinary 42.29 37.55 39.37 Share (including current period revenue) Ordinary shares in issue at 18,163,814 18,163,814 18,163,814 period end Weighted average number of 18,163,814 18,280,414 18,398,294 Ordinary shares in issue during the period SUMMARISED STATEMENT OF CASHFLOWS For the six months to 28 February 2005 Six months to Six months to 28 February 2005 29 February 2004 £'000 £'000 Net cash outflow from operating activities (166) (185) Servicing of finance Interest paid (23) (17) Final distribution from subsidiary - 27 undertaking Net cash (outflow)/inflow from (23) 10 servicing of finance Capital expenditure and financial investment Purchases of investments (612) (742) Sales of investments 838 1,706 Net cash inflow from capital expenditure and financial investment 226 964 Financing share repurchase - (133) Net cash inflow 37 656 Increase in cash 37 656 NOTE The above financial information does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The statutory financial statements for the Company for the year to 31 August 2004, which contained an unqualified auditors' report, have been lodged with the Registrar of Companies and did not contain a statement required under Section 237(2) or (3) of the Companies Act 1985. These financial statements have been prepared and are consistent with the accounting standards and policies as stated at the previous year end with the exception of the valuation of listed investments, which are valued at mid-market value except where other factors necessitate further provisions. Chairman's Statement I am pleased to say that further progress has been made in the past six months with the Company's net asset value increasing to 42.29p per share as at 28 February representing an increase of 12.62% on the year-end position of 37.55p. This compares with a rise of 12.70% in the FTSE All-Share index, the Company's benchmark index. For interest, this also compares with a rise of 11.42% over the same period for the FTSE 100. As at 28 February 2005 your Company held 35 investment positions, up from 33 at the year-end. Whilst it is pleasing to record that a number of our investments are making good progress, the most important development for Chelverton was the agreed cash offer for our largest holding, Merrydown. Merrydown is a producer of Merrydown Vintage Cider and Schloer, a popular soft drink. Chelverton participated in a refinancing of the company simultaneously with a new management team taking over in 1998. The refinancing was at 45p and the shares then declined over the next two years as the business was turned around, and Chelverton continued buying shares down to 25p per share. The work by this management team only started to be recognised two years ago when the share price finally moved above the original refinancing price of 45p. The cash offer is at 170p per share; because it is being achieved by a scheme of arrangement, the proceeds are not to be paid until June. With the recent share price rise I am pleased to inform you that the discount has narrowed further and at the 31 March 2005 was some 12.37%. With the interim report we are sending a letter to shareholders offering them a free share dealing service enabling all shareholders to sell up to 3,000 shares. Whilst this facility is available to all shareholders, it could be of particular interest to those with smaller holdings. As and when opportunities arise the Board will consider additional buy-backs with the view of further reducing the discount. David Horner, the Investment Manager, has increased his holding to 1,221,368 shares (6.72%) with the purchase of an additional 215,000 shares in the first six months. Notwithstanding the recent rise in the overall Stock Market and the sustained rise over the past two years in small companies, your Investment Manager continues to come across interesting and undervalued situations. Whilst the focus of attention may, in the next few months, be more political than economic, the general economy is currently proving to be helpful to most of our companies, and we expect a continuing improvement in our investments. Pratt Thompson Chairman Enquiries: William van Heesewijk Chelverton Asset Management Ltd Tel: 020 7222 8989

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