Interim Results

Aurora Investment Trust PLC
27 November 2003


Aurora Investment Trust plc.
Announcement of half-yearly results



CHAIRMAN'S REVIEW


Performance:

I am very pleased to be able to report a quite considerable increase in the net asset value of your Company's shares
during the first six months of the current year.  It rose by 46.6% from 120.20p to 176.22p per share, including revenue
reserves.  This increase compares favourably with that of our benchmark, the FTSE All Share Index, which rose by 17.4%.




At the start of the period equity markets world-wide were suffering from a number of uncertainties which included the
prospect of a war in Iraq, uncertainty about a recovery in the US economy and the outbreak of SARS in the Far East.
Happily these three uncertainties seem to have been laid to rest, for the moment at least.  Perhaps the most important
of the three from a stock market point of view, was the strength of the American economy; the news and statistics that
are now emerging suggest that the recovery that is developing is quite robust and that the outlook for 2004 would seem
to be quite encouraging.  On the back of these developments, equity markets world-wide, including that of the UK, have
recovered considerably.



Our share price rose even more than the net asset value, increasing by 71.1% from 95p to 162.5p.  This represented a
considerable reduction in the discount which stood at 7.8%, representing, I believe, a recognition in the marketplace
of the success achieved by James Barstow, our investment manager.



James has done an excellent job in choosing the shares of companies that have performed well both absolutely and
relatively; during the six and a half years from launch to 31 August 2003, the Company's net asset value outperformed
the market by 88.2%.  Since 1 September, he has continued to focus the portfolio on the same areas as before, including
importantly on investments in housebuilders.  The recent slippage in the prices of shares of housebuilders generally
(caused by the recent increase in interest rates) and of BTG particularly has diminished our outperformance but not
dented our long term belief in the main themes of the Trust's investment policy.


Investment policy

The Board notes the publication of the Investment Entities (Listing Rules and Conduct of Business) Instrument 2003.  We
have determined that, for the current year, our investment policy will not involve holding more than 15% of the
Company's gross assets in UK listed investment companies.



Outlook:

After such a robust recovery in equity markets world-wide, it would not be surprising if there were a period of
consolidation.  The most important issue for equities is the underlying growth of corporate profits.  Certainly, the
increases in corporate profits in America have surprised everybody by their strength and the outlook for 2004 continues
to be good.  That is important because America is the engine economy driving global economic growth and if it is strong
then other areas including the UK will benefit.



The UK economy's strength is being driven by Government expenditure; that in turn is keeping unemployment low and
consumer confidence reasonably high.  In such circumstances - a strengthening global economy and a growing UK economy -
it is likely that corporate profits in the UK will also grow.  Given that the valuation of equities in the UK is not
expensive and is somewhat supported by dividend yields, we believe the prospects for the UK market are reasonably good.




Of more importance to us, is James's ability to identify areas and sectors that will do well and then pick the shares
of the companies in those areas which will do particularly well.  He clearly has succeeded in doing that in the past
and, although we cannot always expect such good relative performance, I am confident that over a reasonable time
period, James's management will result in further increases in our net asset value.



ALEX HAMMOND-CHAMBERS

CHAIRMAN

27 November 2003



CONSOLIDATED STATEMENT OF TOTAL RETURN


                                        6 months to   6 months   6 months      6 months    6 months   6 months
                                        31 Aug.      to 31 Aug. to 31 Aug.     to 31 Aug. to 31 Aug. to 31 Aug.
                                            2003        2003       2003           2002       2002       2002            
                                          Revenue     Capital     Total         Revenue    Capital     Total
                                           £'000       £'000      £'000          £'000      £'000      £'000
Gains/(losses) on investments
               Realised                      -          866        866             -         (72)       (72)
                Unrealised                   -         7,621      7,621            -       (1,107)    (1,107)

Exchange differences on overdraft            -          (32)       (32)            -          -          -
Realised gains/(losses) of trading           68          -          68             7          -          7
subsidiary
Unrealised gains/(losses) of trading        214          -         214             51         -          51
subsidiary

Income                                      554          -         554            542         -         542

Investment management fees                  (58)       (617)      (675)           (57)       (57)      (114)
Other expenses                              (80)         -         (80)           (75)        -         (75)

Return on ordinary activities before
finance costs and taxation                  698        7,838      8,536           468      (1,236)     (768)



Interest payable and similar charges -      (38)        (38)       (76)           (77)       (77)      (154)
bank overdraft interest

Return on ordinary activities

Before taxation                             660        7,800      8,460           391      (1,313)     (922)

Taxation                                     2           -          2             (11)        -         (11)
Return on ordinary activities after
taxation
                                            662        7,800      8,462           380      (1,313)     (933)


Dividends                                    -           -          -              -          -          -


Transfers to/from reserves                  662        7,800      8,462           380      (1,313)     (933)


Return per ordinary share                  4.38p       51.63p     56.01p         2.52p     (8.69p)    (6.17p)



SUMMARISED CONSOLIDATED BALANCE SHEET


                                                          At 31 August    At 31 August    At 28 February
                                                              2003            2002             2003
                                                              £'000           £'000           £'000


Fixed assets - Investments at market value                        30,147          22,310           21,763

Current asset investments                                          1,088             768                -
Other current assets                                                 481             256              826
                                                                   1,569           1,024              826

Bank loan                                                        (4,397)         (3,094)          (3,729)
Performance fee                                                    (559)               -                -
Other current liabilities                                          (138)           (210)            (700)
                                                                 (5,094)         (3,304)          (4,429)

Net current liabilities                                          (3,525)         (2,280)          (3,603)

Total net assets                                                  26,622          20,030           18,160

Share capital                                                      3,777           3,777            3,777
Share premium account                                             10,997          10,997           10,997
Capital reserves                                                  10,832           4,679            3,032
Revenue reserve                                                    1,016             577              354

Equity shareholders funds                                         26,622          20,030           18,160


Net asset value per ordinary share                               176.22p         132.59p          120.20p




CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 August 2003


                                                                            2003                 2002
                                                                           £'000                £'000

Net Cash Outflow from Operating Activities                                 (495)                (381)

Servicing of Finance
Interest paid                                                              (103)                (154)

Taxation
Taxation recovered                                                            36                    -

Financial Investment
Payments to acquire fixed asset investments                              (5,257)              (5,096)
Receipts on disposal of fixed asset investments                            5,489                7,571
Net Cash Inflow from Investing Activities                                    232                2,475

Equity Dividends Paid                                                      (468)                (394)

Net Cash Inflow before Financing                                           (798)                1,546

Increase(Decrease) in Cash                                                 (798)                1,546


RECONCILIATION OF NET DEBT


                                                                           £'000                £'000
Increase/(decrease) in cash in the period                                  (798)                1,546


Translation difference                                                      (32)                (139)
Movement in net debt in the period                                         (830)                1,407
Net debt at 1 March 2003                                                 (3,322)              (4,389)
Net debt at 31 August 2003                                               (4,152)              (2,982)



NOTES

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



The revenue column of the Statement of Total Return 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.



Returns per share and net assets per share are based on 15,107,250 shares in issue throughout the period and at the
Balance Sheet date (2002: 15,107,250 shares)



Income is derived entirely from investments, with the exception of bank interest of £5,391 (2002: £3,526).



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 2004 is expected to be paid in May 2004.



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




SECRETARY & REGISTERED OFFICE
Cavendish Administration Limited
Crusader House
145-157 St John Street
London EC1V 4RU




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