Interim Results

Close Brothers Dev VCT PLC
24 September 2002

                       CLOSE BROTHERS DEVELOPMENT VCT PLC

                                INTERIM RESULTS



                                                               24 September 2002



Close Brothers Development VCT PLC ('the Company'), which provides equity and
debt finance to growing unquoted companies across a variety of sectors, with
investments ranging from technology-orientated to service and asset-backed
businesses, today announces interim results for the six months to 30 June 2002.



Highlights:



•        Net Asset Value per Ordinary Share of 92.0 pence (2001: 90.4 pence)

•        Increased net interim dividend of 1.8 pence per share (2001:1.6 pence)

•        Projected total dividend for the full year of 4.5 pence per share
(2001: 4.0 pence)

•        Launch of new 'C' Share issue to raise up to £20 million



Commenting on the results, Roderick Davidson, Chairman of the Company, said: '
The period since 31 December 2001 has seen a number of developments in the
Company, and it is pleasing to see a 12.5 per cent. increase in the interim
dividend to 1.8 pence per share.  This underlines the Company's strategy of
providing a strong dividend yield to investors.'



Patrick Reeve, Managing Director of Close Venture Management, manager of the
Close Brothers Development VCT, added: 'This particular VCT is a good example of
our emphasis in investment strategy on lower investment risk and higher dividend
yield.  Due to the fact that Ordinary Shares are now over 80% invested in a
diversified portfolio, we have decided to launch a 'C' Share issue to raise up
to £20 million of new money for the Company.  This will have the advantage of
widening the spread of investments in the Company without diluting our existing
shareholders.  Looking forward, with our current investment strategy coupled
with new funds, we see significant opportunities to continue to maximise value
for our shareholders.'



For further information, please contact:


Patrick Reeve/ Ole Bettum                         Justin Griffiths/ John West
Close Venture Management                          Tavistock Communications
Tel: [phone]                                Tel: [phone]



Notes to Editors:



1)      Close Brothers Development VCT PLC is managed by Close Venture
Management.



2)      Close Venture Management is a subsidiary of Close Brothers Investment
Limited and is regulated by the FSA.



3)      Close Venture Management also manages Close Brothers Venture Capital
Trust, launched in 1996, Close Brothers Protected VCT, launched in 1997 and
Close Technology & General VCT, launched in 2000 which raised £39.7 million,
£27.9 million and £14.4 million respectively from private investors.  The Close
Brothers Development VCT was launched in 1999 and raised £14.8 million from
investors.



                              Chairman's Statement



Introduction



The investment strategy of the Company is to establish a diversified portfolio
of holdings in smaller, unquoted companies whilst at the same time selecting and
structuring investments in such a way as to reduce the risk normally associated
with investment in such companies.  This is achieved as follows:



•         Qualifying Investments represent in excess of 80 per cent. of net
funds raised and comprise investments in businesses across a broad spread of
industries.

•         Up to two thirds of Qualifying Investments comprise debt secured on '
bankable' assets.  This debt generates a significant proportion of the total
return from individual investments.

•         Up to 20 per cent. of net funds raised are invested in Non-Qualifying
Investments comprising fixed and floating interest rate securities, financial
instruments and short term money market deposits all issued by or with major
banks with a Moody's credit rating of at least A.



Investment Progress



The period since 31 December 2001 has seen a number of developments in the
Company, and it is pleasing to see a 12.5 per cent. increase in the interim
dividend to 1.8 pence per share.  This underlines the Company's strategy of
providing a strong dividend yield to investors.  We therefore anticipate, in the
absence of unforeseen circumstances, that the Company will be paying a total
dividend for the year of 4.5 pence per Ordinary share compared to 4.0 pence last
year though this should not be taken as a profit forecast.



During the six months to 30 June 2002 the Company made one new qualifying
investment in an existing investee company, totalling £400,000.  This was in
Leisure Links International, to enable it to purchase the 27 hole Chesfield
Downs Golf Club outside Stevenage.  Subsequent to the half year, £90,000 was
invested to provide further working capital to Fastrack Resources, the temporary
and permanent recruitment specialist, £480,000 was invested in Automotive
Technik, a manufacturer of military off road vehicles, and a further £200,000
was invested to provide additional resources to Odyssey Clubs Group.  Three of
these investments were syndicated with Close Technology & General VCT PLC.



Strong progress at Careforce Staffing and Peakdale Molecular, in both cases
supported by third party investments at an increased valuation, has led to a
higher holding values, which go some way to counterbalancing partial provisions
made on our investments in Fastrack Resources and Odyssey Clubs Group.



Results and Dividend



As at 30 June 2002 the net asset value of the company was £13.5 million, (2001:
£13.2 million), equivalent to 92.0 pence per share (2001: 90.4 pence).  Net
income after taxation was £339,000 for the six months, (2001: £296,000) enabling
the board to declare an increased net interim dividend of 1.8 pence per share
(2001: 1.6 pence per share), payable on 22 October 2002 to those shareholders
registered on 4 October 2002.


R M Davidson
Chairman                                                                                    24 September 2002







                               Portfolio Summary


Company                                                % owned     Invested to         Unrealised          Total
                                                    and voting            date       Appreciation
                                                        rights                    /(depreciation)
                                                                         £'000              £'000          £'000
Careforce Staffing Ltd

Careforce Staffing was established in 1999

to build, both organically and through

acquisition, a group providing home care

services to the elderly, principally on behalf

of local authorities.  Careforce currently

operates nine branches around the UK.                      37%          1,500                581          2,081



Swetenhams Marketing Services Ltd

Swetenhams provides data-related

marketing services to the direct marketing

industry, comprising list broking and

management services, hosting and market

automation systems.                                        16%          1,500                134          1,634



Odyssey Clubs Group Ltd

Odyssey owns a 30,000 sq.ft. health and

fitness club on an 11 acre site outside

Stevenage, a 20,000 sq.ft.club in Henley

and has a 50% stake in a company which

owns a 30,000 sq.ft. club on a 6 acre site

outside Beaconsfield in Buckinghamshire.                   18%          1,500               (190)         1,310




Dolphin Nurseries Ltd


Dolphin aims at building a group of private

children's day nurseries in and around

Greater London.  The Company currently

operates three nurseries at Upminster,

Chigwell, and Bracknell, and is developing

a fourth in Tooting.                                       20%          1,300                  -          1,300



Leisure Links International Ltd


Leisure Links was formed to own and

operate golf courses with two courses now

acquired at Test Valley in Hampshire and

Chesfield Downs outside Stevenage.                         26%           1,100                 40          1,140



Consolidated Communications Management Ltd


Consolidated Communications is a

management buy-out of an established

public relations company, formed in 1991,

with a broad range of 'blue chip' clients.  In

2001 the Company was named 'PR

Company of the Year' at the PR Week

Consultancy of the Year Awards.                             7%          1,000                 40          1,040



Peakdale Molecular Ltd


Peakdale is principally engaged in research,

processing and the supply of organic

chemicals, to the major pharmaceutical

companies.  It operates from a substantial

freehold site in Chapel en-le-frith, High

Peak.                                                       7%          1,000             150          1,150



Fastrack Resources Group Ltd


Fastrack provides recruitment services in

respect of both temporary and permanent

staff, with a particular specialisation in the

rail sector.                                               33%          1,000            (146)           854



The Q Gardens Company Ltd


The Company was formed to own and

operate garden centres, and now has four

sites in Fareham, Chinnor, Stow-on-the

Wold and Nazeing in Essex                                  15%            500               6            506




Total Qualifying investments made at 30 June 2002                      10,400             615         11,015




Investments made subsequently



Automotive Technik Ltd


The company holds the licence the

manufacture of the Pinzgauer cross-country

vehicle, which it sells principally to the

armed forces in the UK and the Middle East                  9%            480


Odyssey Clubs Group Ltd


Further refinancing                                                       200


Fastrack Resources Group Ltd


Further refinancing                                                        90




Non Qualifying at 30 June 2002


Royal Bank of Scotland

Floating rate note due

25 January 2003                                                         1,499              (6)         1,493





                      Unaudited Statement of Total Return

                  (incorporating the profit and loss account)

                       for the six months to 30 June 2002


                                 Six months to                Six months to                   Year to
                                  30 June 2002                 30 June 2001              31 December 2001
                           Revenue   Capital     Total   Revenue   Capital    Total    Revenue  Capital   Total

                            £'000     £'000     £'000      £'000     £'000    £'000      £'000    £'000   £'000


(Losses)/gains on               -      (232)     (232)        -      (897)    (897)         -     (321)   (321)
investments


Income                        563         -       563       497         -      497      1,045        -   1,045


Investment management         (40)     (119)     (159)      (40)     (121)    (161)       (80)    (239)   (319)
fees


Other expenses                (53)      (15)      (68)      (53)      (15)     (68)      (107)     (30)   (137)


Return/(loss) on ordinary
activities before tax         470      (366)      104       404    (1,033)    (629)       858     (590)    268


Tax (charge)/credit on
ordinary activities          (131)       37       (94)     (108)       36      (72)      (223)      70    (153)




Return/(deficit)
attributable to
shareholders                  339      (329)       10       296      (997)    (701)       635     (520)    115


Dividends                    (264)        -      (264)     (232)        -     (232)      (581)       -    (581)


Transfer to/(from)             75      (329)     (254)       64      (997)    (933)        54     (520)   (466)
reserves




Return per share             2.3 p   (2.2) p     0.1 p     2.0 p   (6.8) p  (4.8) p      4.3 p  (3.6) p   0.7 p



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



                            Unaudited Balance Sheet

                                at 30 June 2002




                                             30 June 2002          30 June 2001           31 December 2001
                                                   £'000                 £'000                      £'000
Fixed asset investments
Qualifying                                        11,015                 6,094                     10,630


Non-Qualifying                                     1,493                 4,498                      3,001
                                                  12,508                10,592                     13,631

Current assets
Debtors                                              174                    64                         86
Short term money market deposits                   1,411                 2,958                        448
                                                   1,585                 3,022                        534

Creditors: due within one year                      (595)                 (391)                      (514)

Net current assets                                   990                 2,631                         20


Net assets                                        13,498                13,223                     13,651



Represented by:
  Called up share capital                          7,333                 7,308                      7,280
  Share premium                                       48                     -                          -
  Special reserve                                  6,513                 6,552                      6,513
  Capital redemption reserve                          51                    23                         51
  Capital reserve
  Realised                                          (684)                 (492)                      (589)
  Unrealised                                          81                  (259)                       315
  Profit and loss account                            156                    91                         81


Total equity shareholders funds                   13,498                13,223                     13,651


Net asset value per share                      92.0 pence            90.4 pence                 93.8 pence





This interim report was approved by the Board of Directors on 24 September 2002.



J G T Thornton





                         Unaudited Cash Flow Statement

                       for the six months to 30 June 2002




                                                       Six months       Six months         Year ended
                                                            ended            ended        31 December
                                                     30 June 2002     30 June 2001               2001
                                                            £'000            £'000              £'000


Operating activities
Investment income received                                   362              337                668
Deposit interest received                                     11               53                 86
Investment management fees paid                              (91)            (167)              (391)
Other cash payments                                          (65)             (64)              (150)


Net cash inflow from operating
activities                                                   217              159                213


Taxation
UK corporation tax repaid                                      6                -                  -


Capital expenditure and financial
investments

Purchase of investments                                      (410)          (3,350)            (7,140)
Disposals of investments                                    1,500            4,495             5,994
Net cash inflow/(outflow) from investing
activities                                                  1,090            1,145            (1,146)


Equity dividends paid
Dividends paid on ordinary shares                           (350)            (342)              (576)



Net cash inflow/(outflow) before financing                   963              962             (1,509)


Financing
Purchase of own shares                                         -              (41)               (80)


Net cash outflow from financing                                -              (41)               (80)


Increase/(decrease) in cash and cash
equivalents                                                  963              921             (1,589)




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