Final Results - Year Ended 30 September 1999

Northern Venture Trust PLC
9 November 1999


NORTHERN VENTURE TRUST PLC
9 NOVEMBER 1999
PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 1999 KEY
POINTS ARE AS FOLLOWS:

- VCT approved status maintained
- Net asset value per share down from 99.6p to 90.1p
- Venture capital investment portfolio now comprises 41 holdings with an
aggregate value of £21.3 million
- Final dividend of 1.4p per share making a total of 2.2p for the year (1998
3.0p)


THE STATEMENT TO SHAREHOLDERS BY THE CHAIRMAN, PROFESSOR SIR FREDERICK
HOLLIDAY, INCLUDES THE FOLLOWING COMMENTS:


'This report covers the year ended 30 September 1999, the fourth year of
Northern Venture Trust's life.  In my interim statement to shareholders I
described the first half of the year as a challenging time for our company, a
description which might equally be applied to the year as a whole.  Net asset
value has fallen over the past 12 months as a result of fluctuations in the
AiM market and some disappointments in our unlisted investment portfolio.
However we are encouraged by the progress made over the past year by a number
of our investee companies and we continue to add quality companies to the
portfolio.  The company has continued to meet the Inland Revenue's
requirements for approval as a Venture Capital Trust and your directors
believe the company is well placed to achieve its twin objectives of
maintaining VCT approval and providing satisfactory returns to shareholders.


'BALANCE SHEET


'The net asset value (NAV) at 30 September 1999 was 90.1p per share, a fall of
9.5% from the corresponding figure of 99.6p at 30 September 1998. Over the
same period the FT-SE All-Share index rose by 20.5%, despite falling back
slightly during the second half of the year.  Of the decrease in NAV,
approximately 4.1p is attributable to the fall in value of our AiM holdings
and 4.4p to the unlisted investment portfolio.


'The background to the disappointments in our results is dealt with in greater
detail in the investment manager's review section in the annual report.  Your
directors review the portfolio frequently and consider that there is good
reason to be positive about future prospects.  It is worth repeating that our
valuation policy for unlisted investments is conservative and so tends to
accentuate the bad news before the good.


'The venture capital investment portfolio at 30 September 1999 comprised 41
holdings with an aggregate value of £21.3 million.  During the year 10 new
investments were completed at a cost of £6.2 million.  Our surplus funds have
remained in Government stocks and other high-grade fixed-interest securities,
with a view to protecting capital value and maximising income yield.  As
previously indicated to shareholders, the directors' long-term intention is to
retain up to 20% of the company's assets in the listed fixed-interest
portfolio, which means that by the end of the coming year the rate of new
investment in unlisted holdings is likely to reduce.


'REVENUE AND DIVIDENDS


'Net revenue before tax for the year was £1,183,000 (1998 £1,583,000) and the
revenue return per share (earnings per share) was 2.2p (1998 3.1p).  Income
from venture capital investments rose by 14% to £764,000 but, as I predicted
in my statement last year, this was outweighed by the fall in other investment
income resulting from lower interest rates and the drawdown of funds from the
listed fixed-interest portfolio.  Expenses were at the same level as in the
preceding year.  The directors recommend a final dividend of 1.4p per share,
making a total of 2.2p for the year.  The final dividend will be paid on
17 December 1999 to shareholders on the register on 14 December 1999.

'In 1997 the Chancellor of the Exchequer announced that with effect from 5
April 1999 VCT shareholders would no longer be able to obtain a repayment of
the tax credit on dividends.  Regrettably the Chancellor has ignored the
widespread calls for a review of this decision, and so the interim dividend
paid by your company on 1 April 1999 was the last in respect of which the tax
credit was repaid.  Nevertheless, investors who subscribed for shares in our
first public offer in 1995 will by the end of December 1999 have received
gross dividends totalling 13.5p, representing a tax-free return of some 4.2%
per annum on the net subscription price of 80p.  This is equivalent to a gross
return of 7% per annum to a higher-rate taxpayer.

'VCT QUALIFYING STATUS

'Your board has continued, with the assistance of our investment manager and
our tax advisers at KPMG, to monitor the company's progress towards meeting
the qualifying investment requirements laid down in the VCT legislation.  The
Inland Revenue have confirmed, subject to completion in due course of their
normal detailed verification work, that the required level of investment was
achieved by 30 September 1999 in respect of all share issues up to 30
September 1997.  We expect to meet the requirement in respect of the small
1998 share issue well before the relevant deadline in September 2000, and thus
to maintain VCT approved status in the future.

'SHARE BUY-BACKS

'In February 1999 the company obtained Court consent to the proposed reduction
of £17,000,000 in the company's share premium account which was approved at
the annual general meeting in December 1998.  This enabled us to credit an
equivalent amount to a new capital reserve.  As expected, the Department of
Trade and Industry subsequently published proposals to amend company law so as
to enable investment companies to purchase their own shares out of capital
reserves without having to revoke investment company status.  It was recently
confirmed that this change would be implemented by statutory instrument with
effect from 8 November 1999, following which your board is free to use its
powers to purchase shares in the market for cancellation.

'We remain highly conscious of the desirability of narrowing the discount to
net asset value at which the company's shares are quoted.  The present share
price reflects the lack of market liquidity for VCT shares generally.  As is
well known, investors who sell their shares after less than five years are
penalised by the withdrawal of their initial tax reliefs, and consequently the
only sellers tend to be those forced by circumstances.  However it can be
foreseen that within the next year the number of shares coming onto the market
will begin to increase, as the average age of shareholders continues to rise
and our original investors come to the end of their initial five-year
investment period.  This should lead to the development of a more active
secondary market in VCT shares, and the company will, where appropriate,
purchase shares in the market for cancellation.

'The directors have no plans at present to issue new shares in the company,
although in the interests of flexibility we are asking shareholders to renew
the authority granted to the board at previous annual general meetings to
issue new shares within certain pre-set limits.

'CORPORATE GOVERNANCE

'The company has continued to comply with current published guidance to best
practice in corporate governance.  A statement covering the key matters
relevant to the company is set out in the annual report.

'SHAREHOLDER PRESENTATIONS

'Your board is committed to the principle of good communications between the
company and its investors.  In 1997 and again in 1998 our managers arranged a
series of 'roadshow' presentations to shareholders, but at most venues the
number of shareholders expressing an intention to attend was low and the
number attending even lower.  We have therefore decided to change the approach
this year and will be holding shareholder presentations in Edinburgh and
London shortly after the annual general meeting, which this year is in
Gateshead.  These locations, which accounted for over three quarters of the
investors who attended our presentations in 1998, will inevitably be
inconvenient for some shareholders and we apologise to them.

'FUTURE PROSPECTS

'The outlook for the UK economy appears positive and this will create
commercial opportunities for the enterprises in which we have invested.  A
considerable amount of work has gone into building and developing the
company's investment portfolio to date and our managers continue to receive a
strong flow of new investment enquiries.  The successful launch of their
second venture capital trust means that the range of potential investments
open to Northern Venture Trust has widened, as we are now able to participate
in investments of up to £3 million in conjunction with Northern Venture
Managers' other funds.  We will maintain our approach of investing both in
established businesses generating a combination of income and capital returns
and in younger emerging companies where the potential capital return is
greater.  As the portfolio continues to mature we expect to see the benefits
in the form of improved performance in the future.'


The financial statements will show the results set out below:
STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT)
                                        Year ended                  Year ended
                                 30 September 1999           30 September 1998
                         Revenue Capital  Total     Revenue  Capital  Total
                         £000    £000     £000      £000     £000     £000
Gains (losses) on        -       (3,194)  (3,194)   -        (45)     (45)
investments
Income                   1,747   -        1,747     2,147    -        2,147
Investment management    (335)   (502)    (837)     (337)    (505)    (842)
fee                      (229)   -        (229)     (227)    -        (227)
Other expenses           ------- -------  -------   -------  -------  -------
                         ----    ----     ----      ----     ----     ----
Return on ordinary       1,183   (3,696)  (2,513)   1,583    (550)    1,033
activities before tax
Tax on ordinary          (359)   151      (208)     (447)    126      (321)
activities               ------- -------  -------   -------  -------  -------
                         ----    ----     ----      ----     ----     ----
Return on ordinary       824     (3,545)  (2,721)   1,136    (424)    712
activities after tax
Dividends                (821)   -        (821)     (1,120)  -        (1,120)
                         ------- -------  -------   -------  -------  -------
                         ----    ----     ----      ----     ----     ----
Transferred to (from)    3       (3,545)  (3,542)   16       (424)    (408)
reserves                 ------- -------  -------   -------  -------  -------
                         ----    ----     ----      ----     ----     ----
Return per share            2.2p   (9.5)p   (7.3)p     3.1p   (1.1)p      2.0p
Dividend per share          2.2p                       3.0p

BALANCE SHEET
                          30 September 1999   30 September 1998
                                       £000                £000
Fixed asset investments
   Venture capital       21,348              18,308
investments              9,248               15,564
   Listed fixed-         ------------------  -----------------
interest investments     -                   --
                         30,596              33,872
Net current assets       3,048               3,314
                         ------------------  -----------------   --
Net assets               33,644              37,186
                         ------------------  -----------------   --
Share capital            9,330               9,330
Share premium            10,457              27,457
Share purchase reserve   17,000              -
Capital reserve -        (3,137)             (88)
realised                 (41)                455
                         35                  32
     - unrealised        ------------------  -----------------
Revenue reserve          -                   --
Total shareholders'      33,644              37,186
funds                    ------------------  -----------------
                         -                   --
Net asset value per                   90.1p               99.6p
share
The above summary of results for the year ended 30 September 1999 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 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 1999 will, if
approved by shareholders, be paid on 17 December 1999 to shareholders on the
register at the close of business on 14 December 1999.
A copy of the full annual report and financial statements for the year ended
30 September 1999 is expected to be posted to shareholders on 16 November 1999
and will be available to the public at the registered office of the company at
Northumberland House, Princess Square, Newcastle upon Tyne NE1 8ER.

For further information contact:
Christopher Mellor              0191 244 6000
(Northern Venture Trust PLC)
Neil Baldwin                    0113 241 0130
(Bell Lawrie Wise Speke
Corporate Finance)