Interim Results

Aurora Investment Trust PLC
21 October 2002

Aurora Investment Trust plc

Preliminary announcement of half-yearly results




CHAIRMAN'S REVIEW


It is with very great sadness that shareholders will receive the news of Roger Adams' sudden illness.  As a consequence
he has decided to retire as a director and Chairman and I have been invited by the other members of the Board to take
on his roles.  I am honoured to do so.

Gross revenues for the six month period under review have increased from £462,000 to £542,000, partly due to some
increase in dividends but partly as a result of greater exposure to fixed interest securities.  Net Assets per Share
during the period to 31 August 2002 fell from 138.76p to 132.59p (including current revenue reserves) or to 130.07p
(excluding current revenue reserves) representing falls of 4.4% or 6.3% respectively.  This compares favourably to a
fall in the FTSE All-Share Index of 17.1%.

The Share price fell from 120p to 107.5p, due to a widening of the discount as well as the fall in Net Assets described
above.

During the period under review the UK stock-market suffered a sharp decline which commenced at the end of May and
continued until late July.  A combination of disappointing corporate earnings and of growing evidence of a slow-down in
the US economy led to worries over a possible 'double dip' US recession and a loss of investor confidence.  Thereafter,
albeit from a very oversold position, the UK stock-market enjoyed a short and swift rally.

The portfolio has performed well relative to the Benchmark during the period as a result of its generally defensive
nature and particularly its high exposure to interest rate sensitive areas of the market such as banks, construction
and house-building.  A major change has recently occurred in the market's perception of the next move in interest rates
from upwards to downwards in the light of the continuing weakness of the global economy; this perception has now come
into line with the Manager's view expressed at length in the Annual Accounts.

OUTLOOK
Economics statistics emanating from the USA in recent months have provided evidence of a deceleration in the rate of
growth.  Nevertheless, owing to historically low interest rates, the economy is still growing; furthermore unemployment
is now starting to fall.  It is, however, those areas of consumer expenditure, such as housing and automobiles, which
continue to show strength; there are no signs yet of recovery in corporate capital expenditure.

Meanwhile, the UK economy continues to grow at a steady pace, albeit more slowly than predicted by the Chancellor, but
faster than the major economies in the Eurozone.  As in the USA, it is the consumer (rather than corporate expenditure)
who is supporting the economy, buoyed by low interest rates and increasing house prices.

Although the UK stock-market has suffered a roller coaster ride over the past few months as a result of disappointing
earnings and balance sheet worries about under-funded pension funds, there still remains scope for optimism for a
market rally towards the end of the year.  In the light of the weakness of the global economy and in the absence of
inflationary pressures, the probability of a reduction in the level of UK Base Rate is mounting as each month passes;
real interest rates are currently excessive at 2 per cent.

The Board considers that the portfolio is currently well positioned to benefit from any such rally but fully
appreciates that problems in the Middle East may continue to cast a long shadow over the market.
ALEX HAMMOND-CHAMBERS
CHAIRMAN

21 October 2002





CONSOLIDATED STATEMENT OF TOTAL RETURN


                                        6 months to  6 months to 6 months to      6 months   6 months   6 months
                                        31 Aug.        31 Aug.     31 Aug.       to 31 Aug. to 31 Aug. to 31 Aug.
                                            2002        2002        2002              2001       2001       2001



                                          Revenue      Capital      Total         Revenue    Capital     Total
                                           £'000        £'000       £'000          £'000      £'000      £'000
Gains/(losses) on investments
               Realised                      -          (72)        (72)             -       (2,617)    (2,617)
                Unrealised                   -         (1,107)     (1,107)           -        (932)      (932)

Realised gains/(losses) of trading           7            -           7            (147)        -        (147)
subsidiary
Unrealised gains/(losses) of trading         51           -          51             (22)        -         (22)
subsidiary

Income                                      542           -          542            462         -         462

Investment management fees                  (57)        (57)        (114)           (68)       (68)      (136)
Other expenses                              (75)          -         (75)            (77)        -         (77)

Return on ordinary activities before
finance costs and taxation                  468        (1,236)      (768)           148      (3,617)    (3,469)
                                           

Interest payable and similar charges        (77)        (77)        (154)          (100)      (100)      (200)

Return on ordinary activities
Before taxation                             391        (1,313)      (922)            48      (3,717)    (3,669)

Taxation                                    (11)          -         (11)             -          -          -

Return on ordinary activities after
taxation                                    380        (1,313)      (933)            48      (3,717)    (3,669)
                                            
Dividends                                    -            -           -              -          -          -

Transfers to/from reserves                  380        (1,313)      (933)            48      (3,717)    (3,669)

Return per ordinary share                  2.52p       (8.69p)     (6.17p)         0.32p    (24.61p)    (24.29p)



The revenue column of this statement is the consolidated profit and loss account of the Group, comprising Aurora
Investment Trust plc and AIT Trading Limited.

All revenue and capital items in the above statement derive from continuing operations.  No operations were acquired or
discontinued in the period.

Income is derived entirely from investments, with the exception of bank interest of £3,526 (2001: £6,014).





SUMMARISED CONSOLIDATED BALANCE SHEET


                                                          At 31 August    At 31 August    At 28February
                                                              2002            2001             2002
                                                              £'000           £'000           £'000

Fixed assets - Investments at market value                   22,310          28,937           25,752

Current asset investments                                      768             653              -
Other current assets                                           256             313             221
Bank loan                                                    (3,094)         (6,195)         (4,508)
Other current liabilities                                     (210)           (212)           (502)

Net current liabilities                                      (2,280)         (5,441)         (4,789)

Total net assets                                             20,030          23,496           20,963

Net asset value per ordinary share                           132.59p         155.5p          138.76p



CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 August 2002


                                                                            2002                 2001
                                                                           £'000                £'000

Net Cash Inflow from Operating Activities                                  (381)                (629)

Servicing of Finance
Interest paid                                                              (154)                (200)

Financial Investment
Payments to acquire fixed asset investments                              (5,235)              (1,713)
Receipts on disposal of fixed asset investments                            7,571                3,002
Net Cash Inflow from Investing Activities                                  2,336                1,289

Equity Dividends Paid                                                      (394)                (438)

Net Cash Inflow before Financing                                           1,407                   22

Increase(Decrease) in Cash                                                 1,407                   22




These financial statements are not the Group's statutory accounts for the purposes of Section 240 of the Companies Act
1985. They are unaudited.

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

In accordance with the stated policy of the Group, the directors do not recommend an interim dividend.  The final
dividend in respect of the year ending on 28 February 2003 is expected to be paid in May 2003.


SECRETARY AND REGISTERED OFFICE
Cavendish Administration Limited
Crusader House
145-157 St John Street
London ECIV 4RU



For further information, contact James Barstow:  Tel [phone]





                      This information is provided by RNS
            The company news service from the London Stock Exchange