Interim Results - 6 Months to 30 September 1999

Close Brothers Venture Cap Tst PLC
2 December 1999



                    CLOSE BROTHERS VENTURE CAPITAL TRUST PLC
                                       
                     Interim Report for the six months to
                              30 September, 1999
 
                                                                             
Chairman's Statement                                                          
                                       
Introduction

Close Brothers Venture Capital Trust PLC was launched in 1996 to invest in
asset-backed companies alongside partners with proven experience in the sector
concerned.  Investments are typically a mixture of equity and loan stock
secured on the assets of the investee company.    Investee companies do not
normally have external borrowings. Including the 'C' Share issue in 1997, a
total of £39.7 million was raised from private investors.


Investment progress

Your Board is pleased to announce that the company's investment strategy
continues to be implemented according to plan.  A total of £4.13 million was
invested in qualifying unquoted companies in the first six months of the year.
This brings the total invested or scheduled for investment for Close Brothers
Venture Capital Trust to £30.50 million (before revaluations) in 16 separate
investee companies.  Of this amount £20.00 million has been allocated to the
Ordinary Share pool and £10.50 million to the 'C' Share pool.  This represents
some 82 per cent. and 70 per cent. of the Ordinary Shares' and the 'C' Shares'
respective cash and investments (again, before revaluations).  A portion of
these sums will not be invested until the next financial year.  Nevertheless,
the Ordinary Share pool is now comfortably over the key 70 per cent.
threshold, while, in view of investments currently in progress, the 'C' Share
pool will also be well over 70 per cent. level by 31 March 2000, being the
third anniversary of its launch.

Key areas for investment continue to be the hotel, residential property
development and nursing home sectors, although with our new investment in City
Screen (Cambridge) Ltd we have broadened our portfolio into the cinema sector,
and are currently also reviewing opportunities in the health and fitness
sector.

In the period since 1 April and in line with our policy of concentrating on
more specialised areas of nursing care, we have invested in a third operation
providing care for those with learning difficulties, also in East Anglia.
Our investment in Fryers Walk VCT Limited, whose home is currently under
construction, will comprise a 34 bed 'core and cluster' residential care unit
in the centre of Thetford, Norfolk.  Trading in the two non-specialist care
homes, however, continues below budget, in line with the general problems seen
in the market.

Our activity in the residential development sector, which is restricted to 20
per cent. of the portfolio, is through six companies established with separate
developers, and is continuing to benefit from the strong housing market.  Our
stake in Badminton Homes Limited is likely to be sold shortly at a small
profit and the proceeds distributed to your VCT following the completion of
its development.  A replacement investment in the residential sector is
therefore now in the process of being identified.

Our budget hotels continue to perform above initial expectations and we are
currently in the process of investing in a third hotel, under the Days Inn
brand.  Meanwhile, negotiations are at an advanced stage for the disposal of
our investment in the Rose & Crown Hotel in Tring, at a price in excess of our
current carrying value.

As already mentioned, the investment in City Screen (Cambridge) brings us into
a new sector with this specialist, three screen cinema, in the centre of
Cambridge.  The cinema opened in August and trading levels are above initial
expectations.

Other than where further sums reserved for investment have been subscribed,
there have been no increase in valuations for the first half of the year,
although, given the strong performance and cash generation of many of our
investments, your board would hope for further uplifts in values by the year
end, based as usual upon third party professional valuations.

The following is a summary of qualifying investments made to date, comprising
amounts invested and scheduled for investment, and after including the
revaluations referred to above:




Investee Company             Ordinary Shares        'C' Shares          Total
                           Inv.   Reval.  Res.    Inv.  Reval. Res.         
                           at             for     at           for 
                           Cost           inv.    Cost         inv.

Care Homes                                                    

Churchcroft VCT Ltd        760    123     183     490    79     117     1,752
Downing Harnham Croft    
 Nursing Home Ltd          580      -       -     370     -       -       950
Drummond Court VCT Ltd     915      -       -     585     -       -     1,500
Hornchurch VCT Ltd       2,850   (500)      -       -     -       -     2,350
Fryers Walk VCT Ltd        760      -     155     240     -     345     1,500
                                                              
Hotels                                                        

Hawkwell VCT Ltd         1,610     -     300    1,390     -       -     3,300
Premier VCT              
 (Bristol) Ltd           1,610   159     650    1,390   137      50     3,996 
Premier VCT              
 (Dartford) Ltd          3,000   553       -        -     -   1,500     5,053
Rose & Crown VCT Ltd       915  (183)      -      585  (117)      -     1,200
                                                              
Residential Development                                                   

Badminton Homes Ltd        200     -       -      800     -       -     1,000
Cathedral Homes   
 VCT Ltd                     -     -       -    1,150     -       -     1,150 
Chase Midland VCT Ltd    1,600     -       -        -     -       -     1,600
Country &                                                     
Metropolitan VCT Ltd     1,500     -       -        -     -       -     1,500
Portland Homes 
(Woodside Green) Ltd       300     -       -      700     -     200     1,200
Tower Gate VCT Ltd       1,200     -       -        -     -       -     1,200
                                                              
Other                                                         

City Screen       
(Cambridge) Ltd            415     -     500      585     -       -     1,500
                                                              
Total                   18,215   152   1,788    8,285    99   2,212    30,751

Results and Dividend

As at 30 September, 1999 the net asset value applicable to the Ordinary Shares
was £23.98 million or 99.5 pence per share, which compares with a net asset
value at 31 March, 1999 of £24.06 million or 99.6 pence per share.  Net income
before taxation was £866,000 enabling the board to declare a net interim
dividend of 2.5 pence per Ordinary Share, compared to 2.2 pence for the
comparable period of the previous year.

The net asset value applicable to the 'C' Shares was £14.91 million, or 96.2
pence per share compared with a net asset value at 31 March, 1999 of £14.80
million, or 95.5 pence per share.  Net income before taxation was £451,000 in
the period enabling the board to declare a net interim dividend of 2.2 pence
per 'C' Share, compared to 2.0 pence for the comparable period of the previous
year.

The interim dividends will be paid on 14 January, 2000 to shareholders
registered on 17 December, 1999.

Cancellation of share premium account

The board is pleased to announce that the court order confirming the
cancellation of the share premium account was duly made and this will
facilitate the company's ability to purchase its own shares, as and when the
Board deems it appropriate to do so.  50,000 Ordinary Shares were purchased
for cancellation at 88p per share during the period.

Shareholder value created in respect of each class of share since launch:

                                               Ordinary Shares      'C' Shares
                                               pence per share pence per share
                                          (launched Mar. 96)(launched Mar. 97)
                                                               
Gross dividend for the year to 31 March, 1997            5.0                -
Gross dividend for the year to 31 March, 1998            6.0              5.0
Gross first and second interim dividends and                                  
 net final dividend for the year to 31 March, 1999       7.8              6.3
Net dividend for the six months to 30 September, 1999    2.5              2.2
Net asset value per share at 30 September, 1999         99.5             96.2
                                                       _____            _____ 
Total                                                  120.8            109.7
                                                       =====            ===== 

Note: following the cessation of tax credits on 5 April 1999, dividends paid
by VCTs no longer benefit from tax-free tax credits for qualifying UK
shareholders.                                                             

Year 2000 Compliance

The Directors have assessed the impact of the year 2000 in relation to the
computer systems used by the Manager.  The possible adverse effect relating to
such systems on the Company is considered to be insignificant.


David Watkins                                                  
Chairman                                            1 December, 1999




                      Unaudited Statement of Total Return
                      (incorporating the revenue account)
                   for the six months to 30 September, 1999
                                       
                                 Current Year

                     Ordinary Shares      'C' Shares             Total
                    Six months to 30   Six months to 30     Six months to 30
                     September, 1999    September, 1999      September, 1999
                                                                    
                    Rev    Cap   Tot    Rev    Cap   Tot    Rev    Cap    Tot
                  £'000  £'000 £'000  £'000  £'000 £'000  £'000  £'000  £'000 
                                              
Gains on                                                                
investments          -      60    60     -    185    185      -    245    245
                                                                        
Income             998       -   998   515      -    515  1,513      -  1,513
                                                               
Investment           
management fees   (104)   (104) (208)  (47)   (47)   (94)  (151)  (151)  (302)
                                                                        
Other expenses     (28)    (28)  (56)  (17)   (17)  (34)    (45)   (45)   (90)
                  ____    ____  ____   ___    ___   ___   _____   ____  _____ 

Return on ordinary                                                      
activities before   
tax                866     (72)  794   451    121   572   1,317     49  1,366 
                                             
Tax on ordinary 
activities        (260)     39  (221) (135)    19  (116)   (395)    58   (337)
                  ____     ___  ____   ___    ___  ____   _____    ___  _____ 
                           
Return                                                                  
attributable to    
shareholders       606     (33)  573   316    140   456     922    107  1,029 
                                                                         
Dividends         (603)      -  (603) (341)     -  (341)   (944)     -   (944)
                  ____     ___   ___  ____    ___   ___    ____    ___  _____ 

Transfer to (from)           
reserves             3     (33)  (30)  (25)   140   115     (22)   107     85
                  ====     ====  ===  ====   ====  ====    ====    ===   ==== 
                                                                            

Return per share   2.5p   (0.1)p 2.4p  2.0p  0.9p   2.9p                     


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


                      Unaudited Statement of Total Return
                      (incorporating the revenue account)
                   for the six months to 30 September, 1998

                        Previous Year - for comparison

                     Ordinary Shares     'C' Shares               Total     
                    Six months to 30   Six months to 30     Six months to 30
                     September, 1998    September, 1998      September, 1998
                                                                        
                    Rev    Cap   Tot    Rev    Cap   Tot    Rev    Cap    Tot
                  £'000  £'000 £'000  £'000  £'000 £'000  £'000  £'000  £'000 
                                              
Gains(losses)on                                                               
investments          -     218   218     -   (127)  (127)     -     91     91 
                                                                        
Income           1,015       - 1,015   678      -    678  1,693      -  1,693
                                                               
Investment           
management fees    (83)    (83) (166)  (37)   (37)   (74)  (120)  (120)  (240)
                                                                        
Other expenses     (27)    (27)  (54)  (18)   (18)   (36)   (45)   (45)   (90)
                  ____    ____  ____   ___    ___    ___   _____   ____  _____
 
Return on ordinary                                                      
activities before   
tax                905     108 1,013   623   (182)   441  1,528    (74) 1,454 
                                             
Tax on ordinary 
activities        (260)     32  (228) (189)    17   (172)  (449)    49   (400)
                  ____     ___  ____   ___    ___    ____  _____    ___  _____
                            
Return                                                                  
attributable to    
shareholders       645     140   785   434   (165)   269   1,079   (25) 1,054 
                                                                         
Dividends         (532)      -  (532) (310)     -   (310)   (842)    -   (842)
                  ____     ___   ___  ____    ___   _____   ____    ___  _____


Transfer to (from)           
reserves           113     140   253   124   (165)   (41)    237   (25)   212
                  ====     ====  ===  ====   ====    ====   ====    ===   ====
                                                                             

Return per share   2.6p    0.6p 3.2p  2.8p   (1.1)   1.7p                     


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


                                Unaudited summary balance sheet
                                      at 30 September, 1999

                30 September, 1999    30 September, 1998  31 March, 1999
                 Ord.   'C'   Total   Ord.  'C'    Total   Ord     'C'  Total
                Shares Shares        Shares Shares       Shares  Shares
                £'000  £'000  £'000  £'000  £'000  £'000  £'000  £'000  £'000 
                                                                        
Fixed asset inv.                                                            
Qualifying:                                                             
Sched. for inv.20,155 10,596 30,751 17,529  7,979 25,508 18,967  9,764 28,731 
less:uninvested(1,788)(2,212)(4,000)(3,650)(3,200)(6,850)(1,283)(4,967)(6,250)
               ______ ______ ______ ______  _____ ______ ______ ______ ______
Net inv.            
to date        18,367  8,384 26,751 13,879  4,779 18,658 17,684  4,797 22,481
Non-qual:       2,056  6,498  8,554  7,002  7,981 14,983  5,003  8,441 13,444
               ______  _____ ______ ______  _____ ______ ______  _____ ______
Total fixed 
asset inv.     20,423 14,882 35,305 20,881 12,760 33,641 22,687 13,238 35,925 
                ______  ______ ______ ______ ______ ______ ______ _____ ______
Current assets                                                     
Debtors           513    229    742    452    190    642    500    277    777
Short term money       
market depos.   4,035    200  4,235  3,954  2,628  6,582  1,150  1,423  2,573
                _____  _____  _____  _____  _____  _____  _____  _____  _____
                4,548    429  4,977  4,406  2,818  7,224  1,650  1,700  3,350
Creditors: due                                                     
within 1 year    (994)  (402)(1,396)(1,070)  (705)(1,775)  (282)  (141)  (423)
                _____   ____  _____  _____  _____  _____   ____   ____   ____
Net current     
assets          3,554     27  3,581  3,336  2,113  5,449  1,368  1,559  2,927
               _____   _____ ______ ______ ______  _____  _____  _____ _____
Net assets     23,977 14,909 38,886 24,217 14,873 39,090 24,055 14,797 38,852
               ====== ====== ====== ====== ====== ====== ====== ====== ======
Represented by:                                                    
Called up      
share capital  12,055  7,749 19,804 12,080  7,751 19,831 12,080  7,749 19,829
Share premium  
account             -      -      - 10,866  6,976 17,842 10,866  6,974 17,840
Special res.   10,862  6,971 17,833      -      -      -      -      -      -
Cap red. res.      45      4     49     20      -     20     20      4     24
Capital res.      891    133  1,024  1,014    (53)   961    924     (7)   917
Profit and                                     
loss account      124     52    176    237    199    436    165     77    242
                  ___    ___  _____  _____    ____   ___    ___    ___    ___ 
Total          
shareholders'   
funds          23,977 14,909 38,886 24,217 14,873 39,090 24,055 14,797 38,852
               ====== ====== ====== ====== ====== ====== ====== ====== ======
Net asset value  
per share       99.5p  96.2p        100.2p   95.9p        99.6p  95.5p 
Review report by the auditors on the interim information
To the members of Close Brothers Venture Capital Trust PLC

Introduction

We have been instructed by the company to review the financial information and
we have read the other information contained in the interim report and
considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors.  The Listing
Rules of the London Stock Exchange require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes,
and the reason for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board.  A review consists principally
of making enquiries of group management and applying analytical procedures to
the financial information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed.  A review excludes audit
procedures such as tests of controls and verification of assets, liabilities
and transactions.  It is substantially less in scope than an audit performed
in accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit.  Accordingly, we do not express an audit opinion on
the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September, 1999.

Deloitte & Touche
Chartered Accountants
Stonecutter Court
1 Stonecutter Street
London  EC4A 4TR                                      1 December, 1999

This interim report is being sent to shareholders and copies will be made
available at the registered office of the Company.

For further information:

Patrick Reeve - Close VCT Management Telephone: [phone]