Interim Results

Govett Asian Recovery Trust PLC
20 December 2002

GOVETT ASIAN RECOVERY TRUST PLC

Preliminary announcement of Unaudited Results for the half year ended 
30th September 2002



Chairman's Statement


This has been a disappointing six months for the Company and for shareholders.
Hopes that the rally which followed the events of September 11th last year would
lead to a sustainable recovery in the world's economies and equity markets have
been dashed. In the period since the last annual report, the MSCI World Index
fell by 33.4%. Over the same period, the MSCI AC Asia cum-Japan Index fell by
19.8%. Your company's Net Asset Value fell by 23.9%, while the share price fell
by 26.0%. At the end of the period, the discount of the share price to the
underlying net asset value widened from 17.7% to 20.1%.


The sharp reversal in optimism in the early months of the year can be explained
in large part by developments outside the Asia Pacific region. Despite very
aggressive monetary easing in the U.S. since the beginning of 2001, the U.S.
economy continues to hover between sustained recovery and a relapse into
recession. Revelations of corporate fraud were the initial catalyst for
profit-taking in global equity markets but these soon gave way to renewed fears
of rising corporate failures, weak capital spending, the prospect of faltering
personal consumption and, ultimately, a financial sector credit crunch. In
Europe too, economic growth rates have faltered and markets have been weak.

Given these problems and the continued geopolitical risks, it is unlikely that
Asia's equity markets will make much real progress in the near term. For this
reason, the Manager has positioned the portfolio in the expectation of continued
volatility, with significant derivative option protection where appropriate. The
bias of the portfolio remains tilted towards non- Japanese markets as hopes of
real restructuring in Japan have again been disappointed. However, it is likely
that the next six to twelve months will begin to see some recovery in markets.
Despite current difficulties, your Board continues to believe that the
Asia-Pacific region offers good prospects in the medium to long term.


The level of gearing was reduced significantly during the period. Your Board
renewed its discretionary powers to buy back shares in the Company at the Annual
General Meeting in August. There were no buy backs during the period under
review, but 250,000 shares have been bought back since 30 September 2002.





David Price, Chairman

20 December 2002

Unaudited Consolidated Statement of Total Return (incorporating the revenue
account)

                            Half year ended                Half year ended                      Year ended
                          30th September 2002            30th September 2001                  31st March 2002

                       Revenue   Capital      Total  Revenue     Capital      Total      Revenue     Capital       Total
                         £000s     £000s      £000s    £000s       £000s      £000s        £000s       £000s       £000s

Realised &                   -  (12,974)   (12,974)        -    (10,704)   (10,704)            -       4,646       4,646
unrealised losses on
investments

Net foreign currency         -   (1,194)    (1,194)        -       (429)      (429)            -
exchange differences                                                                                   (159)       (159)

Income from                354         -        354      579           -        579          886           -         886
investments

Deposit interest            44         -         44       36           -         36           47           -          47

Investment               (204)         -      (204)    (201)           -      (201)        (428)           -       (428)
management fee

Other (expenses) /       (131)        35       (96)    (172)           7      (165)        (322)          24       (298)
income

Net return/(loss)           63  (14,133)   (14,070)      242    (11,126)   (10,884)          183       4,511       4,694
before finance costs
and taxation

Interest payable          (57)         -       (57)     (26)           -       (26)         (63)           -        (63)

Return on ordinary           6  (14,133)   (14,127)      216    (11,126)   (10,910)          120       4,511       4,631
activities before
taxation

Tax on ordinary           (33)         -       (33)     (36)           -       (36)         (48)         (5)        (53)
activities

(Loss)/Return on          (27)  (14,133)   (14,160)      180    (11,126)   (10,946)           72       4,506       4,578
ordinary activities
after taxation

(Loss)/Return per      (0.07)p  (39.04)p   (39.11)p    0.50p    (30.73)p  (30.23)p         0.20p      12.45p      12.65p
Ordinary share
(pence)

Weighted number of            36,202,077                     36,202,077                         36,202,077
shares in issue



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

Return per ordinary share is based on the weighted average number of ordinary
shares in issue during each period.





Unaudited Balance Sheet
                                As at 30th September 2002    As at 30th September 2001        As at 31st March 2002
                                                     £000                         £000                         £000
Fixed asset investments
                                                        -                          708                            -
Quoted - UK

Quoted - Overseas                                  48,241                       43,992                       68,863

                                                   48,241                       44,700                       68,863
Current Assets
                                                      709                          362                          256
Debtors

Cash at bank                                          686                        3,574                          520

                                                    1,395                        3,936                          776
Creditors: amounts falling
due within one year                               (4,558)                      (5,032)                     (10,401)

Net current liabilities                           (3,163)                      (1,096)                      (9,625)

Provisions for liabilities                          (110)                            -                        (110)
and charges

Total assets less current
liabilities                                        44,968                       43,604                       59,128

Financed by:

Capital and reserves

Called-up share capital                             3,620                        3,620                        3,620

Other reserves

Capital redemption reserve                            112                          112                          112

Special capital reserve                            31,881                       31,881                       31,881

Capital reserve - realised                         13,010                       14,655                       15,255

Capital reserve - unrealised                      (3,361)                      (6,505)                        8,527

Total other reserves                               41,642                       40,143                       55,775

Revenue reserve                                     (294)                        (159)                        (267)

Equity shareholders' funds                         44,968                       43,604                       59,128
                                                   
Net asset value per share                         124.21p                      120.45p                      163.33p

Shares in issue                                36,202,077                   36,202,077                   36,202,077


The net asset value per ordinary share is based on the Company's net assets and
on the number of ordinary shares in issue at the period end.






Cash flow Statement

                                                    Half year ended       Half year ended               Year ended
                                                  30th September 2002   30th September 2001         31st March 2002

                                                                                                           £000
Operating activities

Investment income received                                         394                   677                   963

Deposit interest received                                           45                    36                    66

Management fees paid                                             (240)                 (237)                 (424)

Directors' fees paid                                              (24)                  (24)                  (49)

Other cash payments                                              (163)                 (182)                 (272)

Net cash inflow from operating activities                           12                   270                   284

Return on investments and servicing of finance                    (57)                  (25)                  (63)

Interest paid

Taxation
                                                                     8                    18                   (5)
Taxation received/(paid)

Capital expenditure and financial investment

Purchases of investments                                      (83,034)              (31,054)             (103,043)

Sale of investments                                             88,692                38,120               102,317

Loss on closure of hedging transactions                              -                     -                  (75)

Capital income                                                      56                     7                    29

Net cash inflow/(outflow) from investing                         5,714                 7,073                 (772)
activities

Financing

Decrease in loans                                              (5,511)               (7,280)               (2,524)

Increase/(decrease) in cash                                        166                    56               (3,080)






The Company's interim report and accounts will be sent to shareholders in
December 2002. Copies will be made available to the public at the registered
office of the Company, Shackleton House, 4 Battle Bridge Lane, London SE1 2HR.


The Summarised Balance Sheet at 31st March 2002, Statement of Total Return and
Cashflow Statement for the period then ended are an abridged version of the
Company's full statutory accounts for the year ended 31st March 2002, which have
been filed with the Registrar of Companies; the auditors' opinion on those
accounts was unqualified.


By order of the Board

Shackleton House                 Govett Secretaries Limited

4 Battle Bridge Lane             Secretary

London                           20 December 2002

SE1 2HR                          Registered in England no: 3582911


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