Final Results

Northern Venture Trust PLC
12 November 2003

12 NOVEMBER 2003

NORTHERN VENTURE TRUST PLC

PRELIMINARY RESULTS
FOR THE YEAR ENDED 30 SEPTEMBER 2003



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 £44 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 - year ended 30 September 2003:
(comparative figures as at 30 September 2002 in italics)

•         Net assets                                                £34,000,000               £32,632,000

•         Net asset value per share                                        85.7p                     80.1p

•         Profit on ordinary activities
          before taxation                                              £920,000                  £150,000

•         Earnings per share                                                2.3p                      0.4p

•         Dividends per share                                               5.0p                      2.0p

•         Cumulative return to investors
          since launch:
          Dividends per share                                              32.0p                     27.0p
          Net asset value plus
          dividends per share                                             117.7p                    107.1p


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


NORTHERN VENTURE TRUST PLC
CHAIRMAN'S STATEMENT



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


After two years during which our company's results were heavily influenced by
economic uncertainty and falling stock markets, it is encouraging to be able to
report on a year in which better progress has been made and some capital growth
achieved.  Whilst the level of new investment was relatively low by comparison
with previous years, there has been a welcome upturn in the number of sale
opportunities:  several profitable disposals have enabled us not only to pay a
capital dividend for the first time since 2001 but also to accumulate liquid
resources for new investment in the future.

Net asset value

The net asset value per share at 30 September 2003, after providing for
dividends totalling 5.0p per share, was 85.7p.  This is an increase of 7.0% from
the corresponding figure of 80.1p a year ago.  The net asset value total return
has tracked the FTSE All-Share index closely in recent years.


Earnings and dividend

Total earnings per share for the year amounted to 2.3p, compared with 0.4p in
the corresponding period.  I should again remind shareholders that reported
earnings are liable to fluctuation because realised gains, net of previously
unrealised revaluation adjustments, are included in the earnings figures under
the accounting rules which we follow now that our company is no longer an
investment company for Companies Act purposes.  Investment income, at
£1,269,000, was 2.3% lower than in the preceding year, but a 7.2% fall in
revenue expenses meant that the revenue surplus before tax was only slightly
lower at £823,000.


The revenue element of earnings per share was unchanged at 1.8p.  While the
revenue dividend for the year is, at 1.7p, slightly lower than last year (2.0p),
I am pleased to report that the directors are able to propose a capital dividend
of 3.3p per share out of profits made on investment sales, making a total
dividend for the year of 5.0p.


Including the proposed final dividend, subscribers in the original share issue
eight years ago will have received cash dividends (including repayable tax
credits) of 32p per share.  An investor claiming initial income tax relief at
20% and capital gains tax deferral at 40% will therefore have received four
fifths of his 40p net investment back by way of tax-free cash dividends.  Since
1995 the company has distributed a total of over £10.6 million to shareholders.


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 £2.7 million and sale proceeds were £5.8 million, a
reversal of last year's outcome where the corresponding figures were £4.6
million and £2.8 million.  As a result, and taking into account the reduction in
the Chiswell Associates portfolio referred to later in this report, the cash
flow statement for the year shows a net cash inflow of £5.2 million.  We are
particularly pleased by the success of SML Technologies, which has become a
market leader in electronic vessel tracking and offshore rig safety systems and
is a fine example of the kind of business which VCTs were created to invest in.
Our holding in the company, thought to be the first investment ever made by a
VCT, was sold to Ultra Electronics in July 2003 for £1.3 million and produced a
compound return of 20% per annum over eight years.


At 30 September 2003 the venture capital portfolio comprised 55 holdings with an
aggregate value of £27.2 million.  The investments cover a wide range of
industry sectors and stages of maturity and your board believes that there are a
number of excellent prospects for future growth and profitable exit in due
course.


We have continued to draw funds down from the listed fixed-interest and equity
holdings managed by Chiswell Associates, the total value of which decreased from
£6.2 million to £3.8 million over the course of the year.  Realised and
unrealised gains in this portfolio during the year totalled £497,000.


VCT qualifying status

Your board and managers monitor closely the company's continuing observance of
the Inland Revenue's VCT rules and the board receives annual compliance reports
from PricewaterhouseCoopers LLP, who were appointed as tax advisors to the
company in 2002.  We are satisfied that the company continues to meet the
relevant requirements.


Shareholder issues

During the year the company bought back and cancelled just over one million
ordinary shares, equivalent to 2.6% of the issued share capital at the start of
the year.  The secondary market for VCT shares generally continues to suffer
from thin trading, and we will continue to re-purchase shares as appropriate.


Your directors are mindful that in two years' time, at the 2005 annual general
meeting, there will be an opportunity for shareholders to vote on the future
continuation of the company.  While we keep this matter under regular review, we
consider it is right to indicate to shareholders at this stage that we presently
expect to recommend continuation for a further five years.  Venture capital
investment is a long-term business and it takes time to realise the full
potential of unquoted investments.  Many shareholders have benefited from
capital gains tax deferral and continuation of the company will enable this
position to be preserved.



Northern Venture Managers

In September 2003 Edinburgh Fund Managers Group, the parent company of Northern
Venture Managers, announced an agreed takeover by Aberdeen Asset Management
which has subsequently been declared unconditional.  NVM continues to operate as
a discrete business unit under the new group ownership and your board is
committed to ensuring that there is no adverse change to the management of our
company.



Future prospects

Northern Venture Trust has now been in operation for eight years, during which
time the company has invested almost £50 million in small and medium-sized
companies in the UK - many of which might otherwise have been unable to raise
the long-term finance necessary to implement their business plans.  Whilst
building the portfolio, we have been able to achieve a return for our
shareholders - before taking any account of the generous VCT tax reliefs and
incentives - broadly in line with the return on a fund tracking the FTSE
All-Share index.  The challenge facing us now is to build on this foundation and
begin to out-perform the index as the portfolio continues to mature.  I believe
we are well placed to meet this challenge.


The financial statements for the year ended 30 September 2003 will show the
results set out below.


PROFIT AND LOSS ACCOUNT
for the year ended 30 September 2003
                                                 Year ended 30 September 2003       Year ended 30 September 2002
                                             Revenue     Capital       Total     Revenue     Capital       Total

                                                £000        £000        £000        £000        £000        £000
Net profit/(loss) on realisation
  of investments                                   -      (1,460)     (1,460)          -      (1,928)     (1,928)
Revaluation (gains)/losses previously
  recognised                                       -       2,113       2,113           -       1,902       1,902
                                              ------      ------      ------      ------      ------      ------
Profit/(loss) on realisation of
  investments recognised in the year               -         653         653           -         (26)        (26)
Income                                         1,269           -       1,269       1,299           -       1,299
 Investment management fee                       (185)       (556)       (741)       (223)       (670)       (893)
Other expenses                                  (214)          -        (214)       (207)          -        (207)
                                              ------      ------      ------      ------      ------      ------
Profit/(loss) on ordinary activities
  before interest and tax                        870          97         967         869        (696)        173
Interest payable                                 (47)          -         (47)        (23)          -         (23)
                                              ------      ------      ------      ------      ------      ------
Profit/(loss) on ordinary activities
  before tax                                     823          97         920         846        (696)        150
Tax on profit/(loss) on
  ordinary activities                           (118)        118           -        (126)        126           -
                                              ------      ------      ------      ------      ------      ------
Profit/(loss) on ordinary activities
  after tax                                      705         215         920         720        (570)        150
Dividends                                       (678)     (1,309)     (1,987)       (817)          -        (817)
                                              ------      ------      ------      ------      ------      ------
Retained profit/(loss) for the year               27      (1,094)     (1,067)        (97)       (570)       (667)
                                              ------      ------      ------      ------      ------      ------
Earnings/(loss) per share                        1.8p        0.5p        2.3p        1.8p      (1.4)p        0.4p
Dividend per share                               1.7p        3.3p        5.0p        2.0p         -          2.0p





STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the year ended 30 September 2003
                                                 Year ended 30 September 2003       Year ended 30 September 2002
                                             Revenue     Capital       Total     Revenue     Capital       Total

                                                £000        £000        £000        £000        £000        £000
Profit/(loss) on ordinary activities
  after tax                                      705         215         920         720        (570)        150
Unrealised gains/(losses) on
  revaluation of investments                       -       3,015       3,015           -      (3,853)     (3,853)
                                              ------      ------      ------      ------      ------      ------
Total recognised gains/(losses)
  for the year                                   705       3,230       3,935         720      (4,423)     (3,703)
                                              ------      ------      ------      ------      ------      ------


BALANCE SHEET
as at 30 September 2003


                                             30 September 2003         30 September 2002

                                                          £000                      £000
Venture capital investments:
  Unlisted                                              22,359                    24,184
  Listed                                                 4,867                     2,981
                                                       -------                   -------
                                                        27,226                    27,165
Other listed investments                                 3,750                     6,245
                                                       -------                   -------
Total fixed asset investments                           30,976                    33,410
                                                       -------                   -------
Current assets:
  Debtors                                                  313                       436
  Cash at bank                                           4,500                       256
                                                       -------                   -------
                                                         4,813                       692
Creditors (amounts falling due
  within one year)                                      (1,789)                   (1,470)
                                                       -------                   -------
Net current assets/                                      3,024                      (778)
(liabilities)
                                                       -------                   -------

Net assets                                              34,000                    32,632
                                                       -------                   -------

Capital and reserves:
Called-up equity share capital                           9,922                    10,183
Share premium                                           14,286                    14,286
Capital redemption reserve                                 524                       263
Revaluation reserve                                        802                    (4,326)
Profit and loss account                                  8,466                    12,226
                                                       -------                   -------
Total equity shareholders'                              34,000                    32,632
funds
                                                       -------                   -------
Net asset value per share                                 85.7p                     80.1p





CASH FLOW STATEMENT
for the year ended 30 September 2003
                                                                   Year ended                   Year ended

                                                            30 September 2003            30 September 2002
                                                          £000           £000         £000            £000
Cash flow statement
Net cash inflow/(outflow) from
  operating activities                                                    383                          (82)
Taxation:
Corporation tax recovered                                                   -                          211
Financial investment:
Purchase of investments                                 (3,063)                     (7,484)
Sale/repayment of investments                            9,165                       4,499
                                                        ------                      ------
Net cash inflow/(outflow) from
  financial investment                                                  6,102                       (2,985)
Equity dividends paid                                                    (688)                        (822)
                                                                       ------                       ------
Net cash inflow/(outflow)
  before financing                                                      5,797                       (3,678)
Financing:
Issue of ordinary shares                                     -                          30
Purchase of ordinary shares
  for cancellation                                        (580)                       (368)
                                                        ------                      ------
Net cash inflow/(outflow) from
  financing                                                              (580)                        (338)
                                                                       ------                       ------
Increase/(decrease) in cash at                                          5,217                       (4,016)
bank
                                                                       ------                       ------
Reconciliation of profit/(loss)
before
tax to net cash flow from
operating activities
Profit/(loss) on ordinary
activities
  before tax                                                              920                          150
(Increase)/decrease in debtors                                            123                         (217)
Increase/(decrease) in                                                     (7)                         (41)
creditors
(Profit)/loss recognised on
  realisation of investments                                             (653)                          26
                                                                       ------                       ------
Net cash inflow/(outflow) from
  operating activities                                                    383                          (82)
                                                                       ------                       ------
Reconciliation of movement
In net funds
                                 1 October 2002                     Cash flows                 30 September
                                                                                                       2003
                                          £000                           £000                         £000
Cash at bank                               256                          4,244                        4,500
Bank overdraft                            (973)                           973                            -
                                        ------                         ------                       ------
Net funds                                 (717)                         5,217                        4,500
                                        ------                         ------                       ------





INVESTMENT PORTFOLIO SUMMARY
as at 30 September 2003
                                                                      Valuation           % of net assets

                                                                           £000              by valuation
Fifteen largest venture capital investments:
TFB Group                                                                 2,132                       6.3
CGI International                                                         1,969                       5.8
T J Brent                                                                 1,917                       5.6
John Fredericks Plastics                                                  1,835                       5.4
Alizyme*                                                                  1,792                       5.3
DMN Installations                                                         1,098                       3.2
Weldex (International) Offshore                                             857                       2.5
ComputerLand UK**                                                           817                       2.4
Remsdaq                                                                     789                       2.3
C&D Industrial Services                                                     775                       2.3
Alaric Systems                                                              761                       2.2
Tolwood                                                                     750                       2.2
Interlube Systems                                                           710                       2.1
Cyclacel                                                                    683                       2.0
Computer Software Group**                                                   649                       1.9
                                                                        -------                    ------
                                                                         17,534                      51.5
Other venture capital investments                                         9,692                      28.6
                                                                        -------                    ------
Total venture capital investments                                        27,226                      80.1
Other listed investments                                                  3,750                      11.0
                                                                        -------                    ------
Total fixed asset investments                                            30,976                      91.1
Net current assets                                                        3,024                       8.9
                                                                        -------                    ------
Net assets                                                               34,000                     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 2003 does not
constitute statutory financial statements within the meaning of Section 240 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 independent auditors' report on those financial statements
under Section 235 of the Companies Act 1985 is unqualified and does not contain
a statement under Section 237(2) or (3) of the Companies Act 1985.

The proposed final dividend for the year ended 30 September 2003 will, if
approved by shareholders, be paid on 19 December 2003 to shareholders on the
register at the close of business on 5 December 2003.

The full annual report including financial statements for the year ended 30
September 2003 is expected to be posted to shareholders on 14 November 2003 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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