Interim Results

Govett Strategic Trust plc
21 May 2003

                           Govett Strategic Trust Plc

                     For the Period Ending 31st March 2003

Chairman's Statement

I have much pleasure in welcoming you to the newly formed Govett Strategic Trust
which was formed from the reconstruction of Govett Strategic Investment Trust in
July of last year.

Our performance to date has been strong relative to our benchmark, but this has
still led to falls in net assets over the period under review.

The Trust's total return in the 8 months since launch was -4.9%. This compares
well with the FTSE All-Share ex. 100 (ex Investment Trusts) Index of -13.9%, and
with the -8.5% return from the FTSE All-Share Index.

This performance generated a performance fee payable to the manager of £117,841
and is in line with the terms of our management agreement.

The discount to NAV was c.19% at the end of March. This is disappointing. The
Board has taken powers to buy back shares and will use these in consultation
with its brokers Cazenove & Co.

The Board has declared a first interim dividend of 1.5p, which will be paid on
10th June 2003 to shareholders on the register at the close of business on 30th
May 2003. This is paid from earnings per share of 1.9p. In the prospectus the
Board stated that the annualised dividend yield was expected to be 2.5 per cent
per annum, and the Board is pleased to be on target to meet this.

The outlook for your Trust, which specialises in medium to smaller companies in
the UK is still dependant on the strength of the UK economy and on the consumer
in particular. We continue to see relative outperformance by the UK economy
especially against Europe. The real strength in the Euro has also helped many
exporters in sectors in which we invest.

It is the managers view that the prospects for well managed businesses in niche
markets will continue to be good. However, much of the UK GDPs recent
performance has been based on the strength of the consumer, and we hope to see
that strength continuing although we believe it will be at a reduced level.

We have concentrated on quality stocks and have invested in companies with
contra-cyclical strengths, such as smaller Lloyds based insurance companies who
are currently benefiting from a massive increase in insurance rates.

Your Board and managers will build on this early good relative performance and I
hope to report further progress at the year-end.

John Murray who has managed the Trust and its predecessor since 1994 is leaving
Govett Investment Management Limited on 26th May 2003. Andrew McDonald,
currently joint fund manager of your Trust and a specialist in smaller
companies, will continue to manage your Trust with the support of John MacLean,
a very experienced and highly regarded UK fund manager specialising in the FTSE
350 area, pending the appointment of a new fund manager to the UK team.

Sir John Riddell Bt

Chairman

Govett Strategic Trust

Unaudited Statement of Total Return (incorporating the revenue account*) of the
Company
                                                                           Period from incorporation to 31st March 2003
                                                                            Revenue           Capital             Total

                                                                             £000's            £000's            £000's
Realised and unrealised losses on investments                                     -           (5,518)           (5,518)

Income from investments                                                       1,577                 -             1,577

Other income                                                                     43                 -                43

Investment management fees                                                    (159)             (376)             (535)

Administrative expenses                                                       (152)               (6)             (158)
Net return/(loss)before finance costs and taxation                            1,309           (5,900)           (4,591)
Interest payable and similar charges                                           (39)              (58)              (97)
Return/(loss) on ordinary activities before taxation                          1,270           (5,958)           (4,688)
Tax on ordinary activities                                                        -                 -                 -
Return/(loss) on ordinary activities after taxation                           1,270           (5,958)           (4,688)
Dividends in respect of Ordinary share                                        (993)                 -             (993)
Transfer to/(from) reserves                                                     277           (5,958)           (5,681)
Return per Ordinary share (pence)                                              1.92            (9.00)            (7.08)



*The revenue column of this statement is the profit and loss account of the
Company.

All the revenue and capital items in the above statement derive from continuing
activities.
                                                                                                         31st March 2003

Unaudited Balance Sheet at 31st March 2003                                                                        £000's
Fixed assets

Investments                                                                                                       63,291

Current assets

Debtors                                                                                                              287

Cash at bank                                                                                                         638
                                                                                                                     925
Creditors due within one year

Bank loans and overdrafts                                                                                        (4,200)

Accrued expenses                                                                                                 (1,041)
                                                                                                                 (5,241)

Net current (liabilities)                                                                                        (4,316)
Total assets less current liabilities                                                                            58,975
Net assets                                                                                                        58,975
Financed by
 Capital and Reserves

Called up share capital                                                                                              662

Special capital reserve                                                                                           63,994

Realised capital reserve                                                                                             343

Unrealised capital reserve                                                                                       (6,301)

Revenue reserve                                                                                                      277
Shareholders' funds                                                                                               58,975
Net asset value per share                                                                                          89.08

The financial information shown in this interim report does not constitute full
statutory accounts as defined in section 240 of the Companies Act 1985.



Unaudited Cash Flow Statement for the period to 31st March 2003
                                                                            Period from incorporation to 31st March 2003
                                                                                                 £000's           £000's
Operating activities

Investment income received                                                                        1,301

Other income                                                                                         43

Investment management fees paid                                                                   (159)

Directors' fees paid                                                                               (28)

Other cash payments                                                                               (471)
Net cash inflow from operating activities                                                                            686
Servicing of finance

Interest paid                                                                                                       (95)
Investment activities

Purchase of investments                                                                        (82,179)

Sales of investments                                                                             13,370
Net cash (outflow) from investment activities                                                                   (68,809)
Net cash inflow from financing

Issue of Ordinary shares                                                                         64,656

Bank loans                                                                                        4,200
                                                                                                                  68,856
Ordinary dividends paid                                                                                                -
Increase in cash                                                                                                     638





By order of the Board

Govett Secretaries Limited

Shackleton House

4 Battle Bridge Lane

London

SE1 2HR



21st May 2003

Registered in England no: 4442514


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