Final Results

Northern Venture Trust PLC
11 November 2002

11 NOVEMBER 2002

NORTHERN VENTURE TRUST PLC

PRELIMINARY RESULTS
FOR THE YEAR ENDED 30 SEPTEMBER 2002



Northern Venture Trust PLC is a Venture Capital Trust (VCT) managed by Northern
Venture Managers.  The trust was one of the first VCTs launched on the London
Stock Exchange in 1995 and has to date raised a total of £43 million from
private investors.  It invests mainly in unquoted venture capital situations and
aims to provide high long-term returns to shareholders through a combination of
dividend yield and capital growth.



Financial highlights (comparative figures as at 30 September 2001):

•         Net assets                                                £32,632,000                £37,490,000

•         Net asset value per share                                        80.1p                     91.0p

•         Profit/(loss) on ordinary
          activities before taxation:
Revenue                                                                £846,000                £1,105,000
Capital                                                               £(696,000)              £(3,090,000)

•         Earnings/(loss) per share:
Revenue                                                                    1.8p                      2.1p
Capital                                                                   (1.4)p                    (7.0)p

•         Dividends per share:
Revenue                                                                    2.0p                      2.0p
Capital                                                                       -                      1.5p

•         Cumulative dividends per share
          since launch                                                    27.0p                     25.0p





For further information, please contact:


Alastair Conn, Managing Director
Northern Venture Managers Limited                                  0191 244 6000
Website:  www.nvm.co.uk
Lucy Copeman/Marlene Scott
Polhill Communications                                             020 7655 0540





CHAIRMAN'S STATEMENT



The Chairman of Northern Venture Trust PLC, Professor Sir Frederick Holliday
CBE, included the following points in his statement to shareholders:





During the past year our company has continued operating in an environment
hostile to the type of smaller growth company in which venture capital trusts
invest.  The stock markets have seen further significant falls and the UK
economy has suffered from continuing uncertainty, despite the fall in interest
rates to a 40-year low.  These factors have inevitably affected the valuation of
our investments, but the 12% fall in net asset value over the year was
substantially less than the 23% fall in the FTSE All-Share index over the same
period and we have been able to maintain the revenue dividend of 2.0p per share
at the same level as last year.



Net asset value

The net asset value per share at 30 September 2002 was 80.1p.  It should be
borne in mind that this figure is stated net of capital distributions totalling
7.2p per share which were made in 2000 and 2001.  The table below shows the
movement in the company's net asset value and share price over the past five
years compared with the relevant stock market indices.


                                                       NVT             NVT            FTSE       FTSE Small
                                                 net asset           share       All-Share      Cap (ex Inv
Periods to 30 September 2002:                        value           price           index        Co) index

Six months                                          -14.7%           -6.3%          -29.6%           -29.1%
One year                                            -12.0%           -6.3%          -23.0%           -16.1%
Three years                                         -11.1%           +3.4%          -36.3%           -32.3%
Five years                                          -20.1%          -21.1%          -26.6%           -22.2%



Whilst it is disappointing to report a fall in the value of net assets, the
portfolio has held up well under the circumstances.  Some of our investee
companies have made slower progress than might have been expected, and it has
been difficult to achieve profitable exits from investments, but we have always
made a point of investing in cash-generative 'old economy' businesses as well as
the IT, telecoms and biotechnology sectors, and this diversification has stood
us in good stead.



Earnings and dividend

Total earnings per share for the year amounted to 0.4p, compared with a loss of
4.9p in the preceding year.  Comparisons between periods are difficult because
realised gains (net of any previously unrealised revaluation adjustments) are
included in the earnings figures, under the accounting rules which we are
obliged to follow now that our company is no longer an 'investment company' as
defined by the Companies Act 1985.  The Profit and Loss Account and Statement of
Total Recognised Gains and Losses for the year are set out below;  we would have
preferred to replace these with a Statement of Total Return in the format
generally used by investment trusts, but we have been advised that this would
not be an allowable departure from Companies Act requirements.  The annual
report again includes a pro forma Statement of Total Return which does not form
part of the audited accounts but which we hope will assist shareholders'
understanding of the company's overall performance during the year.



The revenue element of earnings per share was 1.8p, down from 2.1p in the
preceding year.  Investment income was down by 21%, mainly due to the general
fall in interest rates:  the base rate remained at 4% for almost all of the
year, whereas in the preceding year it varied between 4.75% and 6%.  The revenue
dividend is maintained at 2.0p per share, including the final dividend of 1.0p
which will be paid on 20 December 2002.  Regrettably there are no realised
capital gains available for distribution this year.



Including the proposed final dividend, subscribers in the original share issue
in 1995 will have received cash dividends (including repayable tax credits) of
27p per share.  An investor claiming initial income tax relief at 20% and
capital gains tax deferral at 40% will therefore have received well over half
his net investment back by way of dividend.



Investment portfolio

The Manager's Review in the annual report gives details of developments in the
investment portfolio during the year.  Additions to venture capital investments
during the year amounted to £4.6 million and sale proceeds were £2.8 million.
At 30 September 2002 the venture capital portfolio comprised 59 holdings with an
aggregate value of £27.2 million.  We are encouraged by the quality of the
continuing flow of new investment opportunities generated by our managers.



The portfolio of listed fixed-interest and equity holdings managed by Chiswell
Associates was valued at £6.2 million at the year end and is producing a useful
income yield of over 4%.  We have decided to reduce the amount allocated to
fixed-interest securities within this portfolio by approximately £1 million in
order to take advantage of venture capital investment opportunities, and will
continue to keep the overall position under review.  The £2 million overdraft
facility which we have arranged with Bank of Scotland will give us additional
flexibility in balancing the flows of cash to and from the unlisted portfolio.



VCT qualifying status

The company's compliance with the VCT qualifying investment conditions laid down
by the Inland Revenue continues to be monitored carefully, and we are satisfied
that the company continues to meet the relevant requirements.  We have recently
appointed PricewaterhouseCoopers to act as specialist advisors to the board on
matters relating to VCT status.



Shareholder issues

During the year the company bought back and cancelled a total of 495,500
ordinary shares, equivalent to 1.2% of the issued share capital at the start of
the year, at an average price of 74p.  This has marginally enhanced the net
asset value attributable to the remaining shares.



The share price has been volatile in recent months and has at times been quoted
at a discount of over 30% to the underlying net asset value, with a wide spread
between bid and offer prices.  This is understandably frustrating for
shareholders and our managers have continued, in conjunction with other VCT
management firms, to examine possible ways of improving the liquidity of VCT
shares in the secondary market.  In the meantime we will continue to buy shares
back in the market when appropriate, and we will be asking shareholders to renew
the directors' authority to purchase shares at the forthcoming annual general
meeting.



Future prospects

Our company has had another difficult year and has emerged from it in reasonably
good shape.  We have a maturing portfolio of venture capital holdings which
should present opportunities for profitable disposals once the UK economy and
the stock markets begin to pick up.  However the short-term outlook does remain
uncertain and we will continue to concentrate on effective management of the
portfolio and careful selection of additional investments.







The financial statements for the year ended 30 September 2002 will show the
results set out below.



PROFIT AND LOSS ACCOUNT

for the year ended 30 September 2002
                                                 Year ended 30 September 2002       Year ended 30 September 2001
                                             Revenue     Capital       Total     Revenue     Capital       Total
                                                £000        £000        £000        £000        £000        £000
Net profit/(loss) on realisation
  of investments                                   -      (1,928)     (1,928)          -         980         980
Revaluation (gains)/losses previously
  Recognised                                       -       1,902       1,902           -      (3,202)     (3,202)
                                              ------      ------      ------      ------      ------      ------
Profit/(loss) on realisation of
  investments recognised in the year               -         (26)        (26)          -      (2,222)     (2,222)
Income                                         1,299           -       1,299       1,643           -       1,643
Investment management fee                       (223)       (670)       (893)       (289)       (868)     (1,157)
Other expenses                                  (230)          -        (230)       (249)          -        (249)
                                              ------      ------      ------      ------      ------      ------
Profit/(loss) on ordinary activities
  before tax                                     846        (696)        150       1,105      (3,090)     (1,985)
Tax on profit/(loss) on
  ordinary activities                           (126)        126           -        (252)        227         (25)
                                              ------      ------      ------      ------      ------      ------
Profit/(loss) on ordinary activities
  after tax                                      720        (570)        150         853      (2,863)     (2,010)
Dividends                                       (817)          -        (817)       (819)       (611)     (1,430)
                                              ------      ------      ------      ------      ------      ------
Retained profit/(loss) for the year              (97)       (570)       (667)         34      (3,474)     (3,440)
                                              ------      ------      ------      ------      ------      ------
Earnings/(loss) per share                        1.8p      (1.4)p        0.4p        2.1p      (7.0)p      (4.9)p
Dividend per share                               2.0p         -          2.0p        2.0p        1.5p        3.5p





STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

for the year ended 30 September 2002
                                                 Year ended 30 September 2002       Year ended 30 September 2001
                                             Revenue     Capital       Total     Revenue     Capital       Total
                                                £000        £000        £000        £000        £000        £000
Profit/(loss) on ordinary activities
  after tax                                      720        (570)        150         853      (2,863)     (2,010)
Unrealised gains/(losses) on
  Revaluation of investments                       -      (3,853)     (3,853)          -     (13,373)    (13,373)
                                              ------      ------      ------      ------      ------      ------
Total recognised gains/(losses)
  for the year                                   720      (4,423)     (3,703)        853     (16,236)    (15,383)
                                              ------      ------      ------      ------      ------      ------





BALANCE SHEET

as at 30 September 2002


                                                            30 September 2002            30 September 2001
                                                                         £000                         £000
Venture capital investments:
  Unlisted                                                             24,184                       23,535
  Listed                                                                2,981                        4,501
                                                                      -------                      -------
                                                                       27,165                       28,036
Other listed investments                                                6,245                        6,268
                                                                      -------                      -------
Total fixed asset investments                                          33,410                       34,304
Net current assets/(liabilities)                                         (778)                       3,186
                                                                      -------                      -------
Net assets                                                             32,632                       37,490
                                                                      -------                      -------

Capital and reserves:
Called-up equity share capital                                         10,183                       10,300
Share premium                                                          14,286                       14,263
Capital redemption reserve                                                263                          139
Revaluation reserve                                                    (4,326)                      (2,375)
Profit and loss account                                                12,226                       15,163
                                                                      -------                      -------
Total equity shareholders' funds                                       32,632                       37,490
                                                                      -------                      -------
Net asset value per share                                                80.1p                        91.0p





CASH FLOW STATEMENT

for the year ended 30 September 2002
                                                                      Year ended                Year ended
                                                               30 September 2002         30 September 2001
                                                            £000            £000        £000          £000
Reconciliation of profit/(loss) before
tax to net cash flow from
operating activities
Profit/(loss) on ordinary activities
  before tax                                                                 150                    (1,985)
(Increase)/decrease in debtors                                              (217)                      732
Increase/(decrease) in creditors                                             (41)                     (163)
(Profit)/loss recognised on
  realisation of investments                                                  26                     2,222
                                                                          ------                    ------
Net cash inflow/(outflow) from
  operating activities                                                       (82)                      806
                                                                          ------                    ------
Cash flow statement
Net cash inflow/(outflow) from
  operating activities                                                       (82)                      806
Taxation:
Corporation tax (paid)/recovered                                             211                       408
Financial investment:
Purchase of investments                                   (7,484)                    (15,107)
Sale/repayment of investments                              4,499                      14,336
                                                          ------                      ------
Net cash inflow/(outflow) from
  financial investment                                                    (2,985)                     (771)
Equity dividends paid                                                       (822)                   (3,889)
                                                                          ------                    ------
Net cash inflow/(outflow)
  before financing                                                        (3,678)                   (3,446)
Financing:
Issue of ordinary shares                                      30                         809
Share issue expenses                                           -                         (30)
Purchase of ordinary shares
  for cancellation                                          (368)                       (520)
                                                          ------                      ------
Net cash inflow/(outflow) from
  Financing                                                                 (338)                      259
                                                                          ------                    ------
Decrease in net cash at bank                                              (4,016)                   (3,187)
                                                                          ------                    ------


Analysis of movement in net funds
                                         1 October 2001                 Cash flow         30 September 2002

Cash at bank                                     3,299                    (3,043)                      256
Bank overdraft                                       -                      (973)                     (973)
                                                ------                    ------                    ------
Net funds                                        3,299                    (4,016)                     (717)
                                                ------                    ------                    ------





INVESTMENT PORTFOLIO SUMMARY
as at 30 September 2002
                                                                      Valuation           % of net assets
                                                                           £000              by valuation
Fifteen largest venture capital investments:
CGI International                                                         2,110                       6.5
T J Brent                                                                 1,549                       4.7
Weldex (International) Offshore                                           1,050                       3.2
Tolwood                                                                   1,000                       3.1
TFB Group                                                                 1,000                       3.1
BioFocus**                                                                  939                       2.9
Cyclacel                                                                    904                       2.8
T&D Packaging                                                               900                       2.8
Remsdaq                                                                     878                       2.7
DxS                                                                         835                       2.6
John Fredericks Plastics                                                    782                       2.4
Alizyme*                                                                    741                       2.3
Chorus Application Software                                                 735                       2.2
SML Technologies                                                            730                       2.2
Interlube Systems                                                           719                       2.2
                                                                        -------                    ------
                                                                         14,872                      45.7
Other venture capital investments                                        12,293                      37.5
                                                                        -------                    ------
Total venture capital investments                                        27,165                      83.2
Other listed investments                                                  6,245                      19.2
                                                                        -------                    ------
Total fixed asset investments                                            33,410                     102.4
Net current assets/(liabilities)                                           (778)                     (2.4)
                                                                        -------                    ------
Net assets                                                               32,632                     100.0
                                                                        -------                    ------
* Listed on the London Stock Exchange
**Traded on the Alternative Investment Market







The above summary of results for the year ended 30 September 2002 does not
constitute statutory financial statements within the meaning of S240 of the
Companies Act 1985 and has not been delivered to the Registrar of Companies.
Statutory financial statements will be filed with the Registrar of Companies in
due course;  the auditors' report on those financial statements under S235 of
the Companies Act 1985 is unqualified and does not contain a statement under
S237(2) or (3) of the Companies Act 1985.

The proposed final dividend for the year ended 30 September 2002 will, if
approved by shareholders, be paid on 20 December 2002 to shareholders on the
register at the close of business on 22 November 2002.

A copy of the full annual report and financial statements for the year ended 30
September 2002 is expected to be posted to shareholders on 15 November 2002 and
will be available to the public at the registered office of the company at
Northumberland House, Princess Square, Newcastle upon Tyne NE1 8ER.

ENDS


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