Final Results

Graphite Enterprise Trust PLC
7 March 2002


GRAPHITE ENTERPRISE TRUST PLC
UNAUDITED PRELIMINARY STATEMENT OF RESULTS 
FOR THE YEAR TO 31 DECEMBER 2001

SUMMARY

Net assets per share fell by 14.9%

Closing shareholders' funds were £262.3 million

The Board has proposed a dividend of 4.3p


FINANCIAL RESULTS
       
                                                    2001      2000   % Change
              
Net assets attributable to ordinary shareholders   280.5p    329.6p    -14.9%
                     
Share price                                        228.5p    316.0p    -27.7%
                     
FTSE All-Share Index                             2,523.88  2,983.81    -15.4%
                     
Dividend per share                                   4.3p      4.3p       -


Commenting on the results, John Sclater, Chairman, said:

'In common with stockmarkets worldwide, Graphite Enterprise Trust (the
'Enterprise Trust') had a difficult year in 2001.  While the unquoted
investment portfolio performed well, the performance of the quoted investment
portfolio was disappointing.  Overall, net asset value per share fell by 14.9%
in the year to December, marginally ahead of our main long term benchmark, the
FTSE All-Share Index, which fell by 15.4%.  The FTSE SmallCap Index, which
arguably gives a better comparison over shorter periods, fell by 19.0% in the
year.  At the end of the year net asset value per share was 280.5p and
shareholders' funds were £262.3 million.

The Enterprise Trust's share price fell by 27.7% from 316.0p to 228.5p during
the year.  This reflected both the fall in net asset value per share and a
substantial widening from 4.1% to 18.5% in the discount of the share price to
the underlying assets.  While discounts in the investment trust sector
generally were little changed in the year, those for investment trusts
specialising in unquoted investments (excluding 3i) increased from 8.9% to
18.3%.

Balance Sheet and Portfolio

There was considerable activity in the unquoted investment portfolio and it
performed well but there was little overall movement in its value during the
year.  This reflected a combination of net sales of unquoted holdings with net
realised and unrealised increases in valuations. The unquoted investment
portfolio was valued at £122.0 million at the end of the year representing
45.9% of net assets, an increase from 40.8% at the end of the previous year.
By contrast, there were significant movements both in the quoted investment
portfolio and in liquidity.  At the end of the year the quoted investment
portfolio accounted for 19.5% of net assets by comparison with 36.8% a year
earlier.  This reflected both the poor performance of this portfolio and the
partial or complete disposal of a number of holdings.  

Net liquid assets rose from £70.4 million to £91.8 million during the year as
a result of the net sales from the investment portfolio.  This represented
34.6% of net assets at the year end compared with 22.4% at the end of 2000. 
In the uncertain quoted markets we moved the liquid assets entirely into
deposits and cash funds in order to ensure that we would have resources
available to make new investments and to meet existing commitments.  The
Enterprise Trust's outstanding commitments to existing investments were £51.7
million at the end of the year, representing 56.3% of net liquid assets.  

Share Buy Backs

At the Annual General Meeting in 2000 shareholders gave the Enterprise Trust
approval to buy back up to 14.9% of its shares, and this approval was repeated
at the AGM in 2001.  Towards the end of the year we judged that the
combination of a high discount and surplus liquidity made it attractive to
begin buying back shares.  By the end of the year the Enterprise Trust had
bought back over 500,000 shares.  We intend to continue buying back shares if
the discount remains high and if we can do so without prejudicing the
Enterprise Trust's ability to make new investments.

Statement of Total Return and Dividend

The total loss for the year was £42.4 million or 45.1p per share, representing
13.7% of opening shareholders' funds.  The capital loss was £46.5 million
(49.5p per share), offset by a revenue surplus of £4.1 million (4.4p per
share).  

Both income and expenses fell in the year.  The overall result was a drop in
net revenue attributable to shareholders from £4.4 million to £4.1 million. 
The largest fall was in interest income from liquid assets.  As we have
emphasised in previous reports, it is possible that net revenue will continue
to fall as liquid assets are redeployed in unquoted investments which may
often pay no current income.  While this may result in lower dividends in
future years, the Board has decided to recommend an unchanged dividend of 4.3p
per share for the current year.  This dividend almost exactly equals the net
revenue for the year and will leave distributable reserves at £5.5 million, or
1.4 times the level of the proposed dividend.

Outlook

In my last report in August 2001 I commented that there was arguably greater
stockmarket and economic uncertainty than at any time in the previous five
years and that this had been reflected in the private equity market.  On 11
September and in its aftermath that uncertainty was compounded.  In the
private equity market activity came to a virtual standstill, with very few
transactions completed in the final quarter.  There are now tentative signs of
a recovery in activity levels although this is fragile and could easily be
reversed once again.
  
We believe that the Enterprise Trust is well positioned to take advantage of
the attractive new investment opportunities that may arise in this difficult
environment.  The Trust has liquidity available for new investments and it has
a history of profiting from courageous investments made in uncertain times. 
In the meantime, performance in 2002 is likely to be determined largely by the
existing unquoted portfolio which, for the first time in several years,
represents the substantial majority of the investment portfolio as a whole.'


For further information, please contact:

Rod Richards / William Eccles/ Stephen Cavell
Graphite Capital       Tel:  [phone]
       


GRAPHITE ENTERPRISE TRUST PLC
Preliminary Statement (unaudited) for the year ended 31 December 2001

CONSOLIDATED ASSETS
                                                    At 31 December
                                                    2001          2000
                                                   £'000s        £'000s
              
Investments listed in Great Britain               49,690       186,105
Investments listed outside Great Britain             352           306
Unlisted investments at directors' valuation     123,699       128,616
Net current assets/(liabilities)                  91,773        (1,080)
Total assets less current liabilities            265,514       313,947
Minority interests                                (3,247)       (3,982)
Net assets attributable to ordinary shareholders 262,267       309,965

CONSOLIDATED STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT)

For the year ended 31 December            2001                    2000
                            Revenue Capital   Total    Revenue Capital  Total
                             £'000s  £'000s  £'000s     £'000s  £'000s £'000s
                                          
(Losses)/gains on investments     - (40,624)(40,624)         -  14,315 14,315
Income                        6,571       -   6,571      7,227       -  7,227
Investment management fee    (1,182) (3,546) (4,728)    (1,403) (4,208)(5,611)
Other expenses                 (812)   (276) (1,088)      (874)    356   (518)
Net return before finance 
costs and tax                 4,577 (44,446)(39,869)     4,950  10,463 15,413
Interest payable and 
similar charges                  (5)      -      (5)       (16)      -    (16)
Return on ordinary activities 
before tax                    4,572 (44,446)(39,874)     4,934  10,463 15,397
Tax on ordinary activities     (456)    456       -       (486)    486      -
Return on ordinary 
activities after tax          4,116 (43,990)(39,874)     4,448  10,949 15,397
Minority interests                -  (2,553) (2,553)         -    (582)  (582)
Return attributable to 
equity shareholders           4,116 (46,543)(42,427)     4,448  10,367 14,815
Dividends in respect of 
ordinary shares  (equity)    (4,021)      -  (4,021)    (4,044)      - (4,044)
Transfer to/(from) reserves      95 (46,543)(46,448)       404  10,367 10,771
Return per ordinary share     4.38p (49.50p)(45.12p)     4.73p  11.02p  15.75p
                                          

CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December                           2001         2000
              
Net cash inflow/(outflow) from operating activities       545       (1,086)
Net cash outflow from servicing of finance                 (5)         (30)
Net cash inflow from tax                                    -          167
Net cash inflow/(outflow) from investing activities   105,892      (76,547)
Equity dividends paid                                  (4,044)      (4,044)
Net cash (outflow)/inflow from movement 
in liquid resources                                   (45,227)      42,512
Net cash outflow from financing                        (3,398)      (1,416)
Increase/(decrease) in cash                            53,763      (40,444)



The Directors propose a dividend of 4.3p (2000 - 4.3p) per share payable on 16
May 2002 to shareholders registered on 15 March 2002.

The Annual General Meeting will be held at 2.30 p.m. on 9 May 2002 at The
Richmond Room, The Washington Mayfair Hotel, 5/7 Curzon Street, London W1. 
The registered office of the Company is 4th Floor, Berkeley Square House,
Berkeley Square, London W1J 6BQ.

The above financial information comprises non-statutory accounts within the
meaning of Section 240 of the Companies Act 1985.  The financial information
for the year ended 31 December 2000 has been extracted from published accounts
for the year ended 31 December 2000 which have been delivered to the Registrar
of Companies and on which the report of the auditors was unqualified.  Copies
of the audited Report and Accounts will be posted to shareholders on or about
3 April 2002 and copies may be obtained during normal business hours from the
Company's registered office thereafter.

By order of the Board

Graphite Capital Management Limited

Secretary

7 March 2002


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