Interim Results

Northern Venture Trust PLC
10 May 2005


10 MAY 2005

NORTHERN VENTURE TRUST PLC

UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 MARCH 2005

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. It invests mainly in unquoted venture capital holdings
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 2004):

   • Net assets                                 £32,614,000       £36,529,000

   • Net asset value per share                        86.9p             92.0p

   • Profit on ordinary activities
     before tax:
     Revenue                                       £588,000          £382,000
     Capital                                       £333,000          £424,000
   • Earnings per share:

     Revenue                                           1.1p              0.8p
     Capital                                           1.2p              1.2p
   • Interim dividend per share:

     Revenue                                           1.0p              0.8p
     Capital                                           2.0p              1.2p
   • Cumulative return to
     shareholders since launch:
     Dividends per share                              47.0p             34.0p
     Net asset value plus dividends                  133.9p            126.0p

For further information, please contact:

Alastair Conn, Managing Director                        0191 244 6000
Northern Venture Managers Limited
Website: www.nvm.co.uk

Charles Ansdell/Marlene Scott                           020 7655 0540
Polhill Communications

NORTHERN VENTURE TRUST PLC

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:

As our company approaches its tenth anniversary in September 2005, not only can
we look back on some solid achievements over the past decade but also forward to
further progress in the future. In February shareholders approved by an
overwhelming majority the directors' proposal that the company should continue
to operate as a venture capital trust for at least another five years, and we
begin this new phase of our corporate life in good shape to meet the challenges
ahead.

Results

The net asset value (NAV) per share at 31 March 2005, after providing for an
increased interim dividend of 3.0p, was 86.9p compared with the year-end figure
of 89.6p at 30 September 2004. For the five year period to 31 March 2005 the
company achieved an NAV total return of 10.8% and a share price total return of
36.6%, before taking account of any tax reliefs available to investors. Over the
same period the FTSE All-Share total return index fell by 8.2%.

Earnings and dividend

Income from investments in the half year rose by 32.8% to £813,000, reflecting
the continuing strong generation of income from the unquoted portfolio. Earnings
per share amounted to 2.3p, compared with 2.0p for the six months to 31 March
2004. Shareholders are reminded that the reported earnings per share include
realised gains and losses from the investment portfolio stated after excluding
previous revaluation adjustments; as the incidence of investment realisations
fluctuates from period to period, comparisons can be misleading. However I am
glad to report that at the interim stage the directors are able to declare a
revenue dividend of 1.0p per share (corresponding period 0.8p) and a capital
dividend of 2.0p (1.2p), making a total of 3.0p (2.0p). This takes the
cumulative total of tax-free distributions since the company was launched to
47.0p per share.

Investments

During the six months to 31 March 2005 seven new venture capital investments
totalling £4.0 million were completed and a further £0.4 million was invested in
existing portfolio companies. The new investments were:

   • SMS Agencies (£893,000) - vehicle driver staffing agency, Crawley

   • LEDA Holdings (£688,000) - temporary staff recruitment agency, Leeds

   • Arleigh International (£375,000) - supplier of spares and consumables
     for caravans and leisure boats, Nuneaton

   • Direct Valeting (£732,000) - car valeting contractor,
     Newcastle-under-Lyme

   • Envirotec (£812,000) - manufacturer of air curtains and air handling
     units, High Wycombe

   • e-know.net (£360,000) - application service provider, Telford
   • Daniolabs (£120,000) - development of therapeutics for neurological and
     ophthalmological diseases, Cambridge

Proceeds of disposals from the venture capital portfolio during the period
totalled £2.0 million. The company's holding in Cedalion was sold to Charteris
plc for £459,000 in cash and a gain of £59,000, and Remsdaq redeemed £430,000 of
loan stock. An opportunity arose to reduce the holding in BBI Holdings ,
following its flotation on AIM last year, generating proceeds of £397,000 and a
realised gain of £240,000.

The UK economy has remained fairly stable, although the recent weakness in the
housing and retail sectors is likely to lead in the short term to a falling off
in business confidence. Against this background we have taken a prudent approach
to the valuation of the unquoted portfolio and in one case this has resulted in
a substantial reduction in carrying value. We continue to see a good flow of new
opportunities and these are carefully screened by our managers with a view to
selecting those which are best equipped to survive and prosper throughout the
economic cycle.

The remaining portfolio of quoted equity investments managed by Sarasin
Chiswell, valued at £2.4 million at 30 September 2004, was liquidated during the
period in order to release funds for the tender offer to shareholders referred
to below.

Shareholder issues

At an extraordinary general meeting on 24 February 2005, shareholders considered
three proposals by the directors: first, to extend the life of the company for a
further five years until 2010; second, to make a tender offer to buy back up to
10% of the issued capital from shareholders at a 5% discount to net asset value;
third, to raise new funds through a top-up issue of ordinary shares. These
proposals received very strong support from shareholders. Accordingly the
company made a tender offer to acquire up to 3,950,490 shares at a price of
85.6p per share; by the closing date shareholders had tendered 2,965,751 shares
(approximately 75% of the maximum) and these were taken up in full by the
company at a cost of just over £2.5 million. Your directors consider this a
satisfactory outcome. The top-up issue of new shares priced at a 5% premium to
net asset value, which will close on 20 June 2005, has to date raised a total of
£2.3 million of which just over £1.0 million is reflected in the accounts for
the six months to 31 March 2005.

The dividend investment scheme introduced in November 2004 was taken up by 14%
of shareholders, representing approximately 10% of the company's issued capital.
£390,000 was reinvested in ordinary shares during the period, with subscribers
benefiting from the attractive tax reliefs currently available on new VCT
investments. Shareholders interested in joining the scheme should contact the
company secretary for further information.

On behalf of the board I would like to thank shareholders for their expressions
of continuing support for the company.

VCT qualifying status

The company has continued to retain PricewaterhouseCoopers LLP as advisers on
matters relating to VCT status. The directors are satisfied that the qualifying
conditions laid down by the Inland Revenue for VCT approval have been met.

Outlook

The venture capital portfolio is maturing well and our managers have the
objective of generating further cash from disposals in order to provide funds
for dividend distributions and for investment in new opportunities. The company
currently has only about 10% of its assets in liquid form and the board intends
to consider possible mechanisms for raising additional funds over the next 12
months, bearing in mind the Chancellor's indication that the current 40% income
tax relief on VCT investment may be available only until April 2006. In order to
avoid any dilution of existing shareholders' interests in the future capital
growth and dividend flow from the portfolio, it is envisaged that any
significant fund-raising would be along the lines of a 'C share' issue with the
new assets segregated from the old for an appropriate period.

PROFESSOR SIR FREDERICK HOLLIDAY

Chairman

The unaudited interim financial statements for the six months ended 31 March
2005 are set out below.

PROFIT AND LOSS ACCOUNT
(unaudited) for the six months ended 31 March 2005

                                Six months                   Six months
                               ended 31 March            ended 31 March
                                    2005                       2004
                       Revenue   Capital    Total   Revenue   Capital    Total
                          £000      £000     £000      £000      £000     £000

Profit recognised in
the period
on realisation
of investments               -       644      644         -       724      724
Income                     813         -      813       612         -      612
Investment
management fee            (104)     (311)    (415)     (100)     (300)    (400)
Other expenses            (121)        -     (121)     (130)        -     (130)
                        ------    ------   ------    ------    ------   ------
Profit on ordinary
activities
before tax                 588       333      921       382       424      806
Tax on profit
on ordinary
activities                (151)      151        -       (55)       55        -
                        ------    ------   ------    ------    ------   ------
Profit on ordinary
activities
after tax for
the period                 437       484      921       327       479      806
Dividends -
interim                   (389)     (778)  (1,167)     (317)     (477)    (794)
- final                      -         -        -         -         -        -
                        ------    ------   ------    ------    ------   ------
Retained
profit/(loss)
for the period              48      (294)    (246)       10         2       12
                        ------    ------   ------    ------    ------   ------
Earnings per
share                      1.1p      1.2p     2.3p      0.8p      1.2p     2.0p
Dividend per
share                      1.0p      2.0p     3.0p      0.8p      1.2p     2.0p

                                                        Year ended 30
                                                        September 2004
                                                   Revenue   Capital    Total
                                                      £000      £000     £000

Profit recognised in the year
on realisation of investments                            -     4,578    4,578
Income                                               1,671         -    1,671
Investment management fee                             (207)     (622)    (829)
Other expenses                                        (224)        -     (224)
                                                    ------    ------   ------
Profit on ordinary activities
before tax                                           1,240     3,956    5,196
Tax on profit on ordinary activities                  (246)      239       (7)
                                                    ------    ------   ------
Profit on ordinary activities
after tax for the financial year                       994     4,195    5,189
Dividends - interim                                   (318)     (476)    (794)
          - final                                     (473)   (3,470)  (3,943)
                                                    ------    ------   ------
Retained profit for the year                           203       249      452
                                                    ------    ------   ------
Earnings per share                                     2.5p     10.5p    13.0p
Dividend per share                                     2.0p     10.0p    12.0p


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
(unaudited) for the six months ended 31 March 2005

                                  Six months                   Six months
                               ended 31 March               ended 31 March
                                    2005                         2004
                       Revenue   Capital    Total   Revenue   Capital    Total
                          £000      £000     £000      £000      £000     £000

Profit on ordinary
activities
after tax                  437       484      921       327       479      806
Unrealised gains/
(losses) on
revaluation of
investments                  -      (912)    (912)        -     2,458    2,458
                        ------    ------   ------    ------    ------   ------
Total recognised gains
and losses
during the
period                     437      (428)       9       327     2,937    3,264
                        ------    ------   ------    ------    ------   ------

                                                         Year ended 30
                                                        September 2004
                                                  Revenue   Capital    Total
                                                     £000      £000     £000

Profit on ordinary activities
after tax                                             994     4,195    5,189
Unrealised gains/(losses) on
revaluation of investments                              -     1,012    1,012
                                                   ------    ------   ------
Total recognised gains and losses
during the period                                     994     5,207    6,201
                                                   ------    ------   ------

NOTE OF HISTORICAL COST PROFITS AND LOSSES
(unaudited) for the six months ended 31 March 2005

                                 Six months                   Six months
                              ended 31 March               ended 31 March
                                   2005                         2004
                       Revenue   Capital    Total   Revenue   Capital    Total
                          £000      £000     £000      £000      £000     £000

Reported profit on
ordinary activities
before tax                 588       333      921       382       424      806
Realisation of
investment
revaluation
gains/(losses)
of prior
periods                      -    (2,780)  (2,780)        -        72       72
                        ------    ------   ------    ------    ------   ------
Historical cost profit
/(loss)
for the period
before tax                 588    (2,447)  (1,859)      382       496      878
                        ------    ------   ------    ------    ------   ------
Historical cost profit
/(loss) for the
period after
tax and
dividends                   48    (3,074)  (3,026)       10        74       84
                        ------    ------   ------    ------    ------   ------

                                                        Year ended 30
                                                        September 2004
                                                  Revenue   Capital    Total
                                                     £000      £000     £000

Reported profit on ordinary activities
before tax                                          1,240     3,956    5,196
Realisation of investment revaluation
gains/(losses) of prior periods                         -     2,113    2,113
                                                   ------    ------   ------
Historical cost profit
for the period before tax                           1,240     6,069    7,309
                                                   ------    ------   ------
Historical cost profit for the
period after tax and dividends                        203     2,362    2,565
                                                   ------    ------   ------

BALANCE SHEET
(unaudited) as at 31 March 2005

                                   31 March 2005    31 March 2004   30 September
                                                                          2004
                                            £000             £000         £000
Venture capital investments:

Unquoted                                  24,288           25,454       22,301
Quoted                                     4,972            3,991        4,993
                                         -------          -------      -------
Total venture capital
investments                               29,260           29,445       27,294
Other listed investments                       -            3,093        2,446
                                         -------          -------      -------
Total fixed asset
investments                               29,260           32,538       29,740
                                         -------          -------      -------
Current assets:
Debtors                                      315               90          153
Cash at bank                               6,852            4,790        9,453
                                         -------          -------      -------
                                           7,167            4,880        9,606
Creditors (amounts falling due
within one year)                          (3,813)            (889)      (4,001)
                                         -------          -------      -------
Net current assets                         3,354            3,991        5,605
                                         -------          -------      -------

Net assets                                32,614           36,529       35,345
                                         -------          -------      -------

Capital and reserves:
Called-up equity share
capital                                    9,384            9,931        9,860
Share premium                             15,462           14,371       14,463
Capital redemption reserve                 1,517              547          654
Revaluation reserve                        1,569            3,188         (299)
Profit and loss account                    4,682            8,492       10,667
                                         -------          -------      -------
Total equity shareholders'
funds                                     32,614           36,529       35,345
                                         -------          -------      -------
Net asset value per share                   86.9p            92.0p        89.6p

CASH FLOW STATEMENT
(unaudited) for the six months ended 31 March 2005

                                  Six months        Six months      Year ended
                                     ended             ended
                             31 March 2005     31 March 2004       30 September
                                                                          2004
                             £000     £000     £000     £000     £000     £000

Cash flow statement
Net cash inflow from
operating activities                 2,745               317               746
Taxation:
Corporation tax paid                     -                 -                 -
Financial investment:
Purchase of investments    (4,391)           (2,074)           (6,259)
Sale/repayment of
investments                 4,561             3,694            13,085
                           ------            ------            ------
Net cash inflow from
financial investment                   170             1,620             6,826
Equity dividends paid               (3,943)           (1,706)           (2,500)
                                    ------            ------            ------
Net cash inflow/(outflow)

before financing                    (1,028)              231             5,072
Financing:
Issue of ordinary shares    1,438               122               258
Share issue expenses          (52)               (5)              (13)
Purchase of ordinary
shares
for cancellation           (2,959)              (58)             (364)
                           ------            ------            ------
Net cash inflow/(outflow)
from
financing                           (1,573)               59              (119)
                                    ------            ------            ------
Increase/(decrease) in
cash at bank                        (2,601)              290             4,953
                                    ------            ------            ------

Reconciliation of profit
before
tax to net cash flow
from
operating activities
Profit on ordinary
activities
before tax                             921               806             5,196
Decrease in debtors                   (120)              216               153
Increase/(decrease) in
creditors                            2,588                19               (25)
(Profit)/loss recognised
on
realisation of investments            (644)             (724)           (4,578)
                                    ------            ------            ------
Net cash inflow from
operating activities                 2,745               317               746
                                    ------            ------            ------

Analysis of movement in
net funds
                             1 October 2004       Cash flows     31 March 2005
                                      £000              £000              £000

Cash at bank                         9,453            (2,601)            6,852
                                    ------            ------            ------

INVESTMENT PORTFOLIO SUMMARY
as at 31 March 2005
                                                   Valuation     % of net assets
                                                        £000      by valuation
Fifteen largest venture capital investments:

CGI Group                                              2,325               7.1
VPTA (formerly Tolwood)                                1,400               4.3
Interlube Systems                                      1,222               3.8
Computer Software Group**                              1,202               3.7
Alaric Systems                                         1,184               3.6
Weldex (International) Offshore                        1,095               3.4
Cyclacel                                               1,051               3.2
TFB Group                                              1,000               3.1
Alizyme*                                                 984               3.0
DxS                                                      940               2.9
SMS Agencies                                             893               2.7
Union Snack                                              879               2.7
Omnico Plastics                                          827               2.5
Envirotec                                                812               2.5
Direct Valeting                                          732               2.2
                                                     -------            ------
                                                      16,546              50.7
Other venture capital investments                     12,714              39.0
                                                     -------            ------
Total fixed asset investments                         29,260              89.7
Net current assets                                     3,354              10.3
                                                     -------            ------
Net assets                                            32,614             100.0
                                                     -------            ------
*Listed on the London Stock Exchange

**Quoted on the Alternative Investment Market


The above summary of results for the six months ended 31 March 2005 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 figures for the year ended 30 September 2004 have been extracted from the
financial statements for that year, which have been delivered to the Registrar
of Companies; the independent auditors' report on those financial statements
under Section 235 of the Companies Act 1985 was unqualified.

The proposed interim dividend of 3.0p per share for the year ending 30 September
2005 will be paid on 10 June 2005 to shareholders on the register at the close
of business on 27 May 2005.

A copy of the interim report for the six months ended 31 March 2005 is expected
to be posted to shareholders by 27 May 2005 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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