Final Results

Billam PLC
09 June 2003


                                   BILLAM PLC


            Preliminary results for the year ended 31 December 2002



CHAIRMAN'S STATEMENT


2002 was a difficult year for both the technology and biotechnology sectors. The
ability to raise capital for projects which do not show almost immediate returns
has proven challenging.


Billam however has emerged from this period with significant stakes in several
excellent businesses. 2002 was a year when several of Billam's investee
companies successfully expanded through merger and take-over.


The executives have continued to work hard despite these circumstances. We are
confident that Billam will show progress in 2003.



CHIEF EXECUTIVE'S REPORT


Executive Report

Most of the companies in the portfolio have made significant progress either by
commercialising their technologies to produce organic growth or in some cases by
selective acquisition. This emphasis has been particularly important in the
current financial climate.


Investment policy


Our investment policy this year has focused on the existing investments,
particularly those investee companies which offered and continue to offer the
best opportunities for uplift in value. Since 1 January 2003 the Company has
realised part of its portfolio and used the cash generated for working capital
and new investment. It plans to continue this policy for the foreseeable future.


Investment activity


Organic growth and improved financial performance have been the key drivers for
investee companies within the portfolio.


Performance in the year 1 January 2001 to 31 December 2001


The performance against benchmark indices identified in previous years is as
follows;


Net assets per share fell by 21% in the year.

FTSE Techmark All share index                                               51%
FTSE All share index                                                        25%
FTSE AIM index                                                              33%


Outlook for the portfolio


Over the past two years financial markets have been depressed and sentiment has
been against early stage investments in technology businesses. Despite the
adverse financial climate which has affected both the pace of development and
the funding available to the companies overall there has been significant
progress with poor performances being offset by some very good ones. In the
second half of 2002 the Group improved its performance showing a recovery in
total return of £649,000 compared to the interim results at 30 June 2002.


We believe that the financial markets should begin to appreciate the value added
to our portfolio companies over the next 12 months allowing additional
opportunities for corporate transactions and flotations.


Communications


Billam's website (Billamplc.co.uk) is regularly updated with Company and
portfolio news. Shareholders and others can obtain updates by email if they
register on the site.



PORTFOLIO REVIEW


Each company in the portfolio of investments is described below. The strategy
employed has been to identify market opportunities and companies run by
experienced management seeking to exploit those markets.


Autonomics Limited


Autonomics has continued to develop a sophisticated financial modelling tool
which will be adapted for specific market applications particularly as a tool
for financial analysts, corporate financiers and the finance departments of
major businesses.


CybIT Holdings plc


CybIT is one of the leading and fastest growing telematics service providers in
the UK. Since buying Fleetstar from Trafficmaster plc, CybIT's management has
been able to demonstrate their ability to integrate acquisitions, build
businesses and improve profitability. In the past 12 months CybIT has announced
significant partnership agreements with established market leaders such as
Norwich Union, Lex Vehicle Leasing and brs.


At the end of 2002 CybIT announced a strategic acquisition of Drive IT, a
software business which facilitates improved management of vehicle rental fleets
or pools.


EiRx Pharma Limited


A unique and synergistic technology mix formed by a merger of three companies. A
business model which should generate medium and long-term revenue streams from
therapeutic development (EiRx Therapeutics Limited) with immediate revenue
generation from activities of CuDoS Limited (non-animal in vitro disease
modelling and toxicity testing technology and services) and of Physiomics plc
(systems biological knowledge, mathematical simulation and software based
products and services).


Fulcrum Pharma plc


Fulcrum Pharma is an independent public company that is the first to offer
global virtual drug development and strategic outsourcing services to the
pharmaceutical and biotechnology industries.


Henderson Morley plc


Henderson Morley specialises in carrying out preliminary sourcing and screening
of candidates to combat diseases caused by the Herpes family of viruses and
certain other DNA viruses.


It has chosen to adopt a model whereby its products are to be out-licenced to a
commercial partner. The partner company will assume the responsibility of
progressing candidates through the clinical trial process, and then use the
pharmaceutical partners infrastructure/distribution for finished products.


In May 2003 it announced that Croma Pharma GmbH has signed a patent licence for
the development of the eye application of ICVT (Ionic Contra Viral Therapy). The
licence granted is an exclusive licence to manufacture and sell the product in a
number of agreed territories.


Inaplex Limited


Inaplex is the first developer of data integration software to be an accredited
technical partner of Frontrange, Sales Logix and Microsoft for CRM packages. In
the past year the Company has become approved by Sales Logix and Microsoft and
has been building sales via dealer networks in the UK and US. The Company has
refined its business model in the past 12 months concentrating on becoming the
lead supplier of this type of software for this application and increasing the
value per sale. Users include British Airways and BUPA.


IVU Traffic Technologies AG


Berlin, Germany


IVU is a leading developer of software for telematic solutions and logistics.
2002 was a year of reorganisation and rationalisation following the rapid
expansion in 2001. The emphasis has been on improving the Company's financial
performance and focusing on the core business. It was able to announce major new
orders to use its products in Italian municipal transport, S-Bahn Munchen a
major light railway in Germany, on the new Bangkok underground systems, with the
largest private railway operator in France and Connex Group, a leading private
railway operator in Germany.


Knowledge Technology Solutions plc


KTS specialises in supplying large amounts of data over a narrowband connection
at low cost. Its first products provide information on financial markets to
subscribers including real time share and currency prices with trading
facilities to any PC or laptop. It announced sales to major institutions
including Royal London Asset Management, Prudential Bache, and Singer &
Friedlander in the past year.


Medi Info Net Limited


Medi Info Net acquired the assets of Danum Group in July 2002. Danum Group had
previously ceased trading and been put into liquidation when its shareholders
could not agree to provide further finance. The total investment by Billam plc
in Danum Group was written-off. Medi Info Net was set up with a lower cost base.
It supplies intranets with content to NHS' Primary Care Trusts as well as
providing other IT software and services. The first intranet was installed and
has worked well since commissioning. Re-organisations within the NHS and
specifically related to IT projects have impacted on Medi Info Net's progress.


Sirus Pharma Limited


Sirus (previously named Syngenix Limited) is an emerging speciality
pharmaceutical company focused upon the improvement of established drugs to
treat diseases of the nervous system. The Company is achieving this through the
targeting of drugs to the site of action in the nervous system, by utilizing
sophisticated delivery systems and by modification of the chemical properties of
medications of proven efficacy.


Sirus has a rich pipeline of preclinical and clinical stage products in various
phases of development based upon its suite of proprietary platform technologies
covering pain, emesis, epilepsy and insomnia.


TigerEx Group Limited


TigerEx has delivered a cross BORDER='0' trading facility for shares and
currency. Based in the Far East it has bases in Hong Kong and Australia. The
Company launched its service in 2002, although the service has proven efficacy
the Company has been adversely affected by the depressed capital markets. A
decision to sell this company has been taken by the management.


TRI-MEX Group Limited


TRI-MEX is a provider of telematic services specialising in security
applications particularly high value goods and assets. It has in the past year
increased revenues, forged partnerships with 22 insurers and registered 25 major
international companies as customers. It launched a new lower cost service,
Eurowatch, with wide appeal to all European cross-border freight transporters
which by June 2003 had signed up 10,000 vehicles and is signing contracts with
several vehicle manufacturers.


Subsidiary undertakings


Billam AG - The Company has a 100% interest in Billam AG, a company registered
in Switzerland. Billam AG's business is to make and manage investments in quoted
companies.


URCO plc - The Company, through its subsidiary undertakings, has a 90.91%
interest in URCO Plc. URCO Plc's business is to make and manage investments in
start-up and early stage companies.


World Life Sciences Limited - The Company, through its subsidiary undertakings,
has a 100% interest in World Life Sciences Limited. World Life Sciences Limited
makes and manages investments in start up and early stage bio-technology
companies.



CONSOLIDATED STATEMENT OF TOTAL RETURN (incorporating the revenue account)

For the year ended 31 December 2002

                      2002       2002      2002       2001       2001     2001
                     £'000      £'000     £'000      £'000      £'000    £'000
                   Capital    Revenue     Total    Capital    Revenue    Total

(Losses)/gains on   (1,912)         -    (1,912)     2,841          -    2,841
investments

Income                   -        157       157          -        510      510
                     -------    -------   -------    -------    -------  -------

Gross revenue and    (1,912)      157    (1,755)     2,841        510    3,351
capital (deficit)
/return
                                              

Administrative           -       (650)     (650)         -     (1,210)  (1,210)
expenses             -------    -------   -------    -------    -------  -------

Net (deficit)/        (1,912)    (493)   (2,405)      2,841      (700)   2,141
return before
finance costs and
taxation
                                           
                     -------    -------   -------    -------    -------  -------
Interest payable          -       (1)       (1)           -      (1)      (1)
and similar
charges
                                                      
                     -------    -------   -------    -------    -------  -------

(Deficit)/return    (1,912)      (494)   (2,406)       2,841      (701)   2,140
on ordinary
activities before
taxation
                                             

Tax on ordinary        483        155       638       (406)       150     (256)
activities           -------    -------   -------    -------    -------  -------

                    (1,429)      (339)   (1,768)     2,435       (551)   1,884
                     -------    -------   -------    -------    -------  -------

Minority               (100)      (13)     (113)         -        10       10
interests
attributable to
equity
shareholders
                     -------    -------   -------    -------    -------  -------

(Deficit)/return      (1,529)      (352)   (1,881)    2,435       (541)   1,894
attributable to
equity
shareholders
                     =======    =======   =======    =======    =======  =======

(Deficit)/return
per ordinary
share
Basic and fully      (0.13)p    (0.03)p   (0.16)p     0.27p     (0.06)p   0.21p
diluted              =======    =======   =======    =======    =======  =======

The total revenue column of this statement is the profit and loss of the Group.

All of the above results arise from continuing activities.

The accompanying accounting policies and notes form an integral part of these
financial statements.


CONSOLIDATED balance sheet
at 31 DECEMBER 2002

                                                             2002        2001
                                                            £'000       £'000
Fixed assets
Negative goodwill                                               -         (60)
Tangible assets                                                24           2
Investments                                                 9,354      11,272
                                                           --------    --------
                                                            9,378      11,214
                                                           --------    --------
Current assets
Debtors                                                       206          62
Cash at bank and in hand                                       12         863
                                                           --------    --------
                                                              218         925
                                                           --------    --------

Creditors: amounts falling due within one year               (719)       (862)
                                                           --------    --------

Net current (liabilities)/assets                             (501)         63
                                                           --------    --------

Total assets less current liabilities                       8,877      11,277

Provision for liabilities and charges                        (118)       (756)

Minority interests                                           (111)          2
                                                           --------    --------
                                                            8,648      10,523
                                                           ========    ========
Capital and reserves
Called up share capital                                     1,345       1,295
Share capital to be issued                                      -         344
Share premium account                                       4,640       4,640
Other reserves
Capital reserve realised                                   (1,239)        190
Capital reserve unrealised                                  3,465       3,565
Merger reserve                                              1,736       1,680
Revenue account                                            (1,299)     (1,191)
Shareholders' funds                                         8,648      10,523
                                                           ========    ========



CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2002

                                             2002      2002      2001     2001
                                  Note      £'000     £'000     £'000    £'000

Net cash (outflow)/inflow from        4                (794)               220
operating activities

Returns on investment and
servicing of finance
Interest paid                                  (1)                 (1)
                                            -------             -------
Net cash outflow from returns on
investment and servicing of
finance                                                  (1)                (1)

Capital expenditure and financial
investment
Purchase of tangible fixed                    (36)                  -
assets
Purchase of investments                    (1,171)             (1,498)
Sale of investments                         1,177                 500
                                            -------             -------
Net cash outflow from capital
expenditure and financial
investment                                              (30)              (998)

Acquisitions
Net cash acquired from purchase
of subsidiary undertaking                        -                 830
                                            -------             -------
Deferred consideration and other
costs on previous acquisitions                (365)                  -
                                            -------             -------
Net cash (outflow)/inflow from                         (365)               830
acquisitions                                          -------            -------

Net cash (outflow)/inflow before                     (1,190)                51
financing

Financing
Issue of share capital                        344                  50
                                            -------             -------

Net cash inflow from financing                          344                 50
                                                      -------            -------

(Decrease)/increase in cash in        5                (846)               101
the year                                              =======            =======







NOtes to the preliminary announcement



1    BASIS OF PREPARATION


The preliminary announcement has been prepared under the historical cost
convention, as modified by the revaluation of investment assets.


The Group's accounts have been prepared in accordance with the Statement of
Recommended Practice for investment trusts.


The significant accounting policy of the Group is as follows;


INVESTMENTS


Listed investments are valued at mid market prices. Unlisted investments are
valued at cost or with reference to available information including market
prices of similar companies, latest dealings, accounting information and
professional advice as appropriate in accordance with the guidelines issued by
the British Venture Capital Association.


Realised surpluses or deficits on the disposal of investments and permanent
impairments in the value of investments are taken to capital reserve - realised,
and unrealised surpluses and deficits on the revaluation of investments are
taken to capital reserve - unrealised, as explained in the capital reserve
policy below.



2    TAX ON ORDINARY ACTIVITIES


The tax credit for the year is made up as follows:

                     2002       2002     2002       2001       2001     2001
                    £'000      £'000    £'000      £'000      £'000    £'000
                  Capital    Revenue    Total    Capital    Revenue    Total

Deferred tax          483        155      638       (406)       150     (256)
                    -------    -------  -------    -------    -------  -------


3    RETURN PER ORDINARY SHARE

The return per ordinary share is based on the weighted average number of
ordinary shares in issue during the year of 1,172,440,007 (2001: 883,160,990)
and the following figures:

                    2002       2002      2002       2001       2001       2001
                   £'000      £'000     £'000      £'000      £'000      £'000
                 Capital    Revenue     Total    Capital    Revenue      Total
                  ========   ========  ========   ========   ========  =========
Return                                                          
attributable to
equity
shareholders      (1,529)      (352)   (1,881)     2,435       (541)     1,894
                  ========   ========  ========   ========   ========  =========

Return per         (0.13)p    (0.03)p   (0.16)p     0.27p     (0.06)p     0.21p
ordinary          ========   ========  ========   ========   ========  =========
shares


All options outstanding during the year and at the year end were non-dilutive.

4    RECONCILIATION OF OPERATING (deficit)/return TO NET CASH FLOW FROM
OPERATING ACTIVITIES
                                                                2002      2001
                                                               £'000     £'000

Operating (deficit)/return                                    (2,405)    2,141
Write down investment in World Life Sciences plc to cost           -      (934)
Depreciation                                                      14         -
Release of negative goodwill                                     (60)        -
Loss/(gain) on sale of investments                             1,429      (190)
Unrealised decrease/(increase) in investment appreciation        483    (1,717)
(Increase)/decrease in debtors                                  (143)      379
(Decrease)/increase in creditors                                (112)      541
                                                              --------  --------
Net cash (outflow)/inflow from operating activities             (794)      220
                                                              ========  ========


5       RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
                                                             2002        2001
                                                            £'000       £'000

(Decrease)/increase in cash in the year                      (846)        101
                                                           --------    --------
Change in net funds resulting from cash flows                (846)        101
Net funds at 1 January 2002                                   852         751
Net funds at 31 December 2002                                   6         852
                                                           ========    ========


6       PUBLICATION OF NON-STATUTORY ACCOUNTS

The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985.


The summarised balance sheet at 31 December 2002 and the summarised profit and
loss account, summarised cash flow statement and associated notes for the year
then ended have been extracted from the Group's 2002 statutory financial
statements upon which the auditors opinion is unqualified.


Those financial statements have not yet been delivered to the Registrar.



7      ANNUAL GENERAL MEETING

The Company's Annual General Meeting will be held at 11.00 am on Friday 25 July
at the offices of KBC Peel Hunt, 111 Old Broad Street, London, EC2N 1PH.







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