Interim Results

Finsbury Life Sciences Inv Tst PLC
15 November 2002


To:  City Editors                For immediate release
                                                              15 November 2002


                  Finsbury Life Sciences Investment Trust PLC



Interim Results for the six months ended 30 September 2002


Financial Highlights                                    As at 30/09/02       As at 31/03/02           % Change
                                                           (unaudited)            (audited)

Net assets (£m)                                                 £21.0m               £35.9m              -41.5
Net asset value per share (pence)                                69.7p               119.2p              -41.5
Share price (pence)                                              49.5p               102.5p              -51.7
Discount (%)                                                      29.0                 14.0                  -
FTSE All-Share Index (total return)                            1,821.6              2,545.5              -28.4
Lehman's UK/Europe Biotechnology                                 132.4                293.4              -54.9

Index



No interim dividend is proposed.



Chairman John Sclater, commented:



'Since the Company was launched in 1997 there have been considerable
technological and clinical advances and a number of life science companies are
becoming profitable.  In the long term your Board remains convinced that the
outlook for the biotechnology industry is positive and believe that current
valuations do not reflect its prospects.



Whilst the news flowing from the sector has been poor your Board nonetheless
believes that the decline in valuations has been excessive, with many good
quality companies trading at below net cash.  Against this background your Board
is taking advantage of these attractive prices by beginning to utilise the
Company's gearing facility.'



                                    - ENDS -



The following are attached:



•     Chairman's Statement

•     Consolidated Balance Sheet

•     Consolidated Statement of Total Return

•     Consolidated Cash Flow Statement

•     Notes to the Preliminary Results



For further information please contact:
Alastair Smith, Close Finsbury Asset Management Limited                                       020 7426 6240
Dr Andrew Clark, Reabourne Technology Investment Management Limited                           020 7426 6288
Fiona Harris, Quill Communications                                                            020 7763 6970



Finsbury Life Sciences Investment Trust PLC





Chairman's Statement





 Performance



During the six months ended 30 September 2002 the Company's net asset value per
share ('NAV') declined from 119.2p to 69.7p, a fall of 41.5%. This compares with
a decrease of 54.9% in the Lehman's UK and European Biotechnology Index and
28.4% in the FTSE All-Share Index (total return), which is our benchmark index.



During the period the share price fell 51.7% from 102.5p to 49.5p. This fall has
led to a significant widening of the discount of the share price to the NAV per
share from 14.0% to 29.0%.



It is pleasing to note that the Merlin Fund, in which the Company has a
substantial investment, is holding its own in spite of current market
conditions.  However against a background of significant difficulty across
quoted equity markets and the effective closure of the IPO market, your Board
has considered it appropriate to increase the provision against the carrying
value of the Merlin Fund to 25%.



Results and Dividend



The total deficit for the six months ended 30 September 2002 was 49.5p per share
(six months to 30 September 2001: 44.1p). This was made up of a revenue deficit
of 0.5p per share (six months to 30 September 2001: 0.3p) and a capital deficit
of 49.0p per share (30 September 2001: 43.8p).



The investments making up the Company's investment portfolio typically provide
little, if any, income and accordingly no interim dividend has been declared
(2001: nil).



Review and outlook



The weakness in global equity markets has continued in the six months under
review with the biotechnology sector in particular undergoing a turbulent
period. In the US, the position of Commissioner of the Food and Drug
Administration ('FDA') was vacant for nearly 2 years and this had been perceived
as having lengthened the time taken for new drugs to be approved. There has been
a noticeable reduction in expenditure by the major pharmaceutical companies on
equipment and early stage research and development as companies combat the
dollars lost to patent expiries. In addition, investor confidence has yet to
recover from the problems at Imclone, Elan and elsewhere.



Whilst the news flowing from the sector has been poor your Board nonetheless
believes that the decline in valuations has been excessive, with many good
quality companies trading at below net cash. Against this background your Board
is taking advantage of these attractive prices by beginning to utilise the
Company's gearing facility.



The Company has not been immune to the decline in sentiment and towards the end
of the period the

Company's shares have been trading at or near to their all time low.



Since the Company was launched in 1997 there have been considerable
technological and clinical advances and a number of life science companies are
becoming profitable. In the long term your Board remains convinced that the
outlook for the biotechnology industry is positive and believes that current
valuations do not reflect its prospects. In the nearer term we believe that
there are some tentative signs of improvement and the recent appointment of Mark
McClellan as FDA Commissioner is certainly a welcome development. However, it is
difficult to forecast when a sustained recovery in the sector will occur.



John Sclater, Chairman

15 November 2002

Finsbury Life Sciences Investment Trust PLC



Consolidated Statement of Total Return
incorporating the revenue account for the six months ended 30 September 2002




                                        (unaudited)                     (unaudited)                       (audited)
                                      Six months to                   Six months to                      Year ended
                                  30 September 2002               30 September 2001                   31 March 2002
                      Revenue    Capital      Total   Revenue    Capital      Total   Revenue    Capital      Total
                         £000       £000       £000      £000       £000       £000      £000       £000       £000

Loss on investments         -   (14,566)   (14,566)         -   (12,939)   (12,939)         -   (12,620)   (12,620)
Loss on currency            -       (11)       (11)         -        (6)        (6)         -       (40)       (40)
balances
Income (note 2)            21          -         21       108          -        108       183          -        183
Investment                  -      (144)      (144)         -      (255)      (255)         -      (497)      (497)
management fees
(note 3)
Other expenses          (169)          -      (169)     (181)          -      (181)     (346)          -      (346)
Net loss before         (148)   (14,721)   (14,869)      (73)   (13,200)   (13,273)     (163)   (13,157)   (13,320)
finance costs and
taxation


Interest payable          (4)       (19)       (23)       (5)          -        (5)       (6)       (29)       (35)
and similar charges
Loss on ordinary        (152)   (14,740)   (14,892)      (78)   (13,200)   (13,278)     (169)   (13,186)   (13,355)
activities before
taxation
Taxation on               (3)          -        (3)       (2)          -        (2)       (3)          -        (3)
ordinary activities
Loss on ordinary        (155)   (14,740)   (14,895)      (80)   (13,200)   (13,280)     (172)   (13,186)   (13,358)
activities after
taxation
Dividend on                 -          -          -         -          -          -         -          -          -
Ordinary
Shares (equity)

Transfer from           (155)   (14,740)   (14,895)      (80)   (13,200)   (13,280)     (172)   (13,186)   (13,358)
reserves
Loss per Ordinary      (0.5)p    (49.0)p    (49.5)p    (0.3)p    (43.8)p    (44.1)p    (0.6)p    (43.8)p    (44.4)p
share - pence

(note 1)










Finsbury Life Sciences Investment Trust PLC


Consolidated Balance Sheet
as at 30 September 2002

                                                    (unaudited)            (unaudited)             (audited)
                                              30 September 2002      30 September 2001              31 March
                                                                                                        2002
                                                          £'000                  £'000                £ '000

Fixed assets - investments                               21,537                 30,942                35,633


Current assets
Debtors                                                      24                    180                     9
Cash at bank                                                  -                  5,209                   478
                                                             24                  5,389                   487

Creditors
Amounts falling due within one year                       (585)                  (382)                 (249)
Net current (liabilities) / assets                        (561)                  5,007                   238
Net assets                                               20,976                 35,949                35,871

Capital and reserves
Called up share capital                                   7,525                  7,525                 7,525
Share premium                                            21,679                 21,679                21,679
Capital reserve - realised                               15,997                 18,837                17,477
Capital reserve - unrealised                           (24,123)               (12,237)              (10,863)
Revenue reserve                                           (102)                    145                    53

Total shareholders' funds                                20,976                 35,949                35,871

Net asset value per Ordinary share                        69.7p                 119.4p                119.2p











Finsbury Life Sciences Investment Trust PLC



Consolidated Cash Flow Statement
for the six months ended 30 September 2002


                                                        (unaudited)           (unaudited)           (audited)
                                                   Six months ended      Six months ended          Year ended
                                                  30 September 2002          30 September            31 March
                                                               £000                  2001                2002
                                                                                     £000                £000

Net cash outflow from operating activities                    (415)                 (378)               (658)

Servicing of finance
Bank overdraft and interest paid                               (21)                   (3)                (35)


Financial investment
Purchases of investments                                    (2,179)               (5,060)            (15,238)
Sales of investments                                          1,707                 7,456              13,249
Net cash (outflow) / inflow from financial                    (472)                 2,396             (1,989)
investment

Equity dividends paid                                             -                  (60)                (60)

Net cash (outflow) / inflow before                            (908)                 1,955             (2,742)
financing

Financing
Drawdown of loans                                               350                     -                   -
(Decrease) / increase in cash                                 (558)                 1,955             (2,742)


Reconciliation of net cash flow to movement                   (558)                 1,955             (2,742)
in net (debt) / funds
Cashflow from drawdown of loan                                (350)                     -                   -
Exchange movements                                             (11)                   (6)                (40)
Movement in net (debt) / funds                                (919)                 1,949             (2,782)
Net funds at beginning of period                                478                 3,260               3,260
Net (debt) / funds at end of period                           (441)                 5,209                 478









Finsbury Life Sciences Investment Trust PLC



Notes to the interim results for the six months ended 30 September 2002



1.   Return Per Ordinary Share



Revenue loss per Ordinary share is calculated by dividing the net revenue loss
of £155,000 (six months ended 30 September 2001: £80,000; year ended 31 March
2002: £172,000) by 30,100,000 being the number of Ordinary shares in issue
throughout the period.  Capital return per Ordinary share is calculated by
dividing the net capital loss available for Ordinary shareholders of £14,740,000
(six months ended 30 September 2001: £13,200,000; year ended 31 March 2002:
£13,186,000) by 30,100,000 Ordinary shares as above.



2.   Income


                                                     Six months to         Six months to             Year ended
                                                      30 September          30 September               31 March
                                                              2002                  2001                   2002
                                                             £'000                 £'000                  £'000

Investment income                                               19                    60                    113
Other income                                                     2                    48                     70
                                                                21                   108                    183



3.   Investment Management Fees


                                                     Six months to         Six months to             Year ended
                                                      30 September          30 September               31 March
                                                              2002                  2001                   2002
                                                             £'000                 £'000                  £'000


Periodic fee                                                   125                   224                    432
Performance fee                                                  -                     -                      -
Irrecoverable VAT thereon                                       19                    31                     65
                                                               144                   255                    497



4.   Comparative Information



The figures and financial information for the year ended 31 March 2002 are an
extract from the latest published financial statements and do not constitute
statutory financial statements for that year.  Those financial statements have
been delivered to the Registrar of Companies and included the report of the
auditors which was unqualified and did not contain a statement under either
section 237(2) and 237(3) of the Companies Act 1985.   The Interim Report has
been neither audited nor reviewed by the Company's auditors.

The Interim Report has been prepared using accounting policies that are
consistent with those adopted in the statutory accounts for the year ended 31
March 2002.


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