Interim Results

Northern Venture Trust PLC
20 May 2003


20 MAY 2003

NORTHERN VENTURE TRUST PLC

UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 MARCH 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 £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 31 March 2002):
• Net assets                                     £30,505,000      £38,511,000

• Net asset value per share                             76.0p            93.9p

• Profit/(loss) on ordinary
  activities before taxation:
  Revenue                                           £359,000         £437,000
  Capital                                          £(805,000)        £(14,000)

• Earnings/(loss) per share:
  Revenue                                                0.7p             0.9p
  Capital                                              (1.8)p             0.1p

• Dividend per share                                     0.7p             1.0p

• Cumulative dividends per share
  since launch                                          27.7p            26.0p



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
FRSE, included the following points in his statement to shareholders:



The half year to March 2003 has been an eventful period on the world stage, with
far-reaching effects on the financial markets and the UK economy. The general
downturn in confidence affected most companies to some extent and created a
challenging environment for investment managers.


Balance sheet

The net asset value per share as at 31 March 2003 was 76.0p, a fall of 5.1% from
the reported figure of 80.1p as at 30 September 2002. The following table shows
the movements in net asset value and share price over the past year compared
with the relevant stock market indices.

               Movement to 31 March 2003 over: Last 6 months   Last 12 months
                                    
Northern Venture Trust PLC net asset value              -5.1%           -19.1%
Northern Venture Trust PLC share price                 -16.7%           -21.9%
FT-SE All-Share index                                   -3.7%           -32.1%
FT-SE Small Cap index (excl investment trusts)          -8.7%           -35.3%



Earnings and dividend

The loss per share in the half year was 1.1p, compared with earnings of 1.0p in
the corresponding period to 31 March 2002 and 0.4p in the year to 30 September
2002. Comparisons between periods are difficult because realised gains (after
adjusting for previous 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 is down by some 10% from the corresponding period; interest
rates have been stable but three of our investee companies have had to delay
payment of loan stock interest in order to avoid breaching financial covenants
agreed with their bankers. We have declared a reduced interim dividend of 0.7p
per share (last year 1.0p), to be paid on 13 June 2003 to shareholders on the
register on 30 May 2003. The level of the final dividend will be determined in
the light of the results for the full year.


Investments

During the six months to 31 March 2003 two new venture capital investments
totalling £0.6 million were completed and a further £0.8 million was invested in
existing portfolio companies. The new investments were:

• RBF Industries (£250,000) - manufacturer of healthcare
products and flexible heat shields, Southend-on-Sea

• Crabtree of Gateshead (£350,000) - manufacturer of metal
printing machinery, Gateshead

Market conditions have not been easy for small and medium-sized businesses in
the UK and our investee companies have seen mixed results. Two companies,
Box-Carton and CLM Building Services, went into receivership after periods of
difficult trading, with a resulting write-off of £800,000. Several of our
investments in the biotechnology and IT sectors have progressed less well than
expected and this has been reflected in our review of valuations. However we
also have a number of holdings in profitable and cash-generative manufacturing
businesses which are doing extremely well for us. There are some early signs of
a more active market for investment disposals, which should present us with
opportunities to generate cash for new investment and for the distribution of
realised capital gains to shareholders.


Share price

The company's mid-market share price at 31 March 2003 was 621/2p. During the half
year 582,500 shares (representing approximately 1.4% of the shares in issue)
were purchased for cancellation at a cost of £321,000. Your directors will
continue to use their authority to buy back shares where appropriate in order to
maintain a liquid market.


VCT qualifying status

The company has continued to meet the qualifying conditions laid down by the
Inland Revenue for the maintenance of its formal approval as a VCT.


Prospects

Events in the Middle East have had a significant effect on world and UK markets
and it is too soon to say whether the recent upturn in confidence can be
sustained. Our venture capital holdings are well diversified and increasingly
mature, and when economic conditions improve we expect to be in a position to
achieve some profitable realisations. In the meantime the emphasis will remain
on close monitoring of the portfolio and selective addition of new investments.





The unaudited interim financial statements for the six months ended 31 March
2003 are set out below.



PROFIT AND LOSS ACCOUNT

(unaudited) for the six months ended 31 March 2003
                                      Six months                      Six months
                                  ended 31 March                  ended 31 March
                                          2003                            2002
                  Revenue    Capital     Total    Revenue    Capital     Total
                     £000       £000      £000       £000       £000      £000
Losses on
realisation
of investments          -     (1,571)   (1,571)         -        (59)      (59)
Revaluation
(gains)/losses
previously
recognised              -      1,054     1,054          -        375       375
                   ------     ------    ------     ------     ------    ------
Profit/(loss)
recognised in
the period
on realisation          -       (517)     (517)         -        316       316
of investments
Income                588          -       588        659          -       659
Investment            (96)      (288)     (384)      (110)      (330)     (440)
management fee
Other expenses       (108)         -      (108)      (109)         -      (109)
                   ------     ------    ------     ------     ------    ------
Profit/(loss) on
ordinary
activities
before finance        384       (805)     (421)       440        (14)      426
costs and tax
Interest              (25)         -       (25)        (3)         -        (3)
payable
                   ------     ------    ------     ------     ------    ------
Profit/(loss) on
ordinary
activities
before tax            359       (805)     (446)       437        (14)      423
Tax on profit/
(loss) on
ordinary              (61)        61         -        (77)        77         -
activities
                   ------     ------    ------     ------     ------    ------
Profit/(loss) on
ordinary
activities
after tax for         298       (744)     (446)       360         63       423
the period
Dividends            (281)         -      (281)      (410)         -      (410)
                   ------     ------    ------     ------     ------    ------
Retained profit/       17       (744)     (727)       (50)        63       (13)
(loss) for the
period
                   ------     ------    ------     ------     ------    ------
Earnings/(loss)       0.7p      (1.8)p    (1.1)p      0.9p       0.1p      1.0p
per share
Dividend per          0.7p         -       0.7p       1.0p         -       1.0p
share

                                                                   Year ended 30
                                                                 September 2002
                                                  Revenue    Capital     Total
                                                     £000       £000      £000
Losses on realisation
of investments                                          -     (1,928)   (1,928)
Revaluation (gains)/losses previously
Recognised                                              -      1,902     1,902
                                                   ------     ------    ------
Profit/(loss) recognised in the year
on realisation of investments                           -        (26)      (26)
Income                                              1,299          -     1,299
Investment management fee                            (223)      (670)     (893)
Other expenses                                       (207)         -      (207)
                                                   ------     ------    ------
Profit/(loss) on ordinary activities
before finance costs and tax                          869       (696)      173
Interest payable                                      (23)         -       (23)
                                                   ------     ------    ------
Profit/(loss) on ordinary activities
before tax                                            846       (696)      150
Tax on profit/(loss) on
ordinary activities                                  (126)       126         -
                                                   ------     ------    ------
Profit/(loss) on ordinary activities
after tax for the financial year                      720       (570)      150
Dividends                                            (817)         -      (817)
                                                   ------     ------    ------
Retained profit/(loss) for the year                   (97)      (570)     (667)
                                                   ------     ------    ------
Earnings/(loss) per share                             1.8p      (1.4)p     0.4p
Dividend per share                                    2.0p         -       2.0p



STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

(unaudited) for the six months ended 31 March 2003
                                      Six months                      Six months
                                  ended 31 March                  ended 31 March
                                          2003                            2002
                  Revenue    Capital     Total    Revenue    Capital     Total
                     £000       £000      £000       £000       £000      £000
Profit/(loss) on
ordinary
activities
after tax             298       (744)     (446)       360         63       423
Unrealised gains
/(losses) on
revaluation of          -     (1,082)   (1,082)         -      1,154     1,154
investments
                   ------     ------    ------     ------     ------    ------
Total recognised
gains/(losses)
for the period        298     (1,826)   (1,528)       360      1,217     1,577
                   ------     ------    ------     ------     ------    ------

                                                                   Year ended 30
                                                                 September 2002
                                                  Revenue    Capital     Total
                                                     £000       £000      £000
Profit/(loss) on ordinary activities
after tax                                             720       (570)      150
Unrealised gains/(losses) on
revaluation of investments                              -     (3,853)   (3,853)
                                                   ------     ------    ------
Total recognised gains/(losses)
for the year                                          720     (4,423)   (3,703)
                                                   ------     ------    ------



BALANCE SHEET

(unaudited) as at 31 March 2003

                                   31 March 2003    31 March 2002   30 September
                                                                          2002
                                            £000             £000         £000
Venture capital investments:
Unlisted                                  24,328           24,837       24,184
Listed                                     2,314            6,435        2,981
                                         -------          -------      -------
Total venture capital                     26,642           31,272       27,165
investments
Other listed investments                   5,134            7,378        6,245
                                         -------          -------      -------
Total fixed asset investments             31,776           38,650       33,410
Net current liabilities                   (1,271)            (139)        (778)
                                         -------          -------      -------
Net assets                                30,505           38,511       32,632
                                         -------          -------      -------

Capital and reserves:
Called-up equity share capital            10,038           10,251       10,183
Share premium                             14,286           14,286       14,286
Capital redemption reserve                   408              195          263
Revaluation reserve                       (4,354)            (846)      (4,326)
Profit and loss account                   10,127           14,625       12,226
                                         -------          -------      -------
Total equity shareholders'                30,505           38,511       32,632
funds
                                         -------          -------      -------
Net asset value per share                   76.0p            93.9p        80.1p



CASH FLOW STATEMENT

(unaudited) for the six months ended 31 March 2003
                              Six months          Six months        Year ended
                                 ended               ended
                         31 March 2003       31 March 2002          30 September
                                                                          2002
                        £000      £000      £000      £000      £000      £000
Cash flow
statement
Net cash inflow/
(outflow) from
operating                          269                 113                 (82)
activities
Taxation:
Corporation tax                      -                  25                 211
recovered
Financial
investment:
Purchase of           (1,585)             (5,411)             (7,484)
investments
Sale/repayment of      1,623               2,517               4,499
investments
                      ------              ------              ------
Net cash inflow/
(outflow) from
financial                           38              (2,894)             (2,985)
investment
Equity dividends                  (407)               (412)               (822)
paid
                                ------              ------              ------
Net cash outflow
before financing                  (100)             (3,168)             (3,678)
Financing:
Issue of ordinary          -                  30                  30
shares
Purchase of ordinary
shares
for cancellation        (321)               (176)               (368)
                      ------              ------              ------
Net cash outflow
from
financing                         (321)               (146)               (338)
                                ------              ------              ------
Decrease in net cash              (421)             (3,314)             (4,016)
at bank
                                ------              ------              ------

Reconciliation of
profit/(loss)
before
tax to net cash flow
from
operating
activities
Profit/(loss) on
ordinary
activities
before tax                        (446)                423                 150
(Increase)/decrease                210                  28                (217)
in debtors
Increase/(decrease)                (12)                (40)                (41)
in creditors
(Profit)/loss
recognised on
realisation of                     517                (298)                 26
investments
                                ------              ------              ------
Net cash inflow/
(outflow) from
operating                          269                 113                 (82)
activities
                                ------              ------              ------

Analysis of movement
in net funds
                         1 October 2002         Cash flows       31 March 2003
Cash at bank                       256                  65                 321
Bank overdraft                    (973)               (486)             (1,459)
                                ------              ------              ------
Net funds                         (717)               (421)             (1,138)
                                ------              ------              ------



INVESTMENT PORTFOLIO SUMMARY

as at 31 March 2003
                                                   Valuation     % of net assets

                                                        £000      by valuation
Fifteen largest venture capital investments:
CGI International                                      2,003               6.6
John Fredericks Plastics                               1,799               5.9
TFB Group                                              1,774               5.8
T J Brent                                              1,768               5.8
T&D Packaging                                            900               2.9
Remsdaq                                                  878               2.9
SML Technologies                                         847               2.8
DMN Installations                                        821               2.7
Alaric Systems                                           761               2.5
Alizyme*                                                 754               2.5
Tolwood                                                  750               2.5
Chorus Application Software                              735               2.4
Cyclacel                                                 683               2.2
Weldex (International) Offshore                          671               2.2
C&D Industrial Services                                  662               2.2
                                                     -------            ------
                                                      15,806              51.9
Other venture capital investments                     10,836              35.5
                                                     -------            ------
Total venture capital investments                     26,642              87.4
Other listed investments                               5,134              16.8
                                                     -------            ------
Total fixed asset investments                         31,776             104.2
Net current liabilities                               (1,271)             (4.2)
                                                     -------            ------
Net assets                                            30,505             100.0
                                                     -------            ------
* Listed on the London Stock Exchange



The above summary of results for the six months ended 31 March 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.

The proposed interim dividend for the year ending 30 September 2003 will be paid
on Friday 13 June 2003 to shareholders on the register at the close of business
on Friday 30 May 2003.

A copy of the interim report for the six months ended 31 March 2003 is expected
to be posted to shareholders on Friday 23 May 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

                      This information is provided by RNS
            The company news service from the London Stock Exchange