Interim Results

Second Advance Value Realisation Co
17 November 2003



FOR IMMEDIATE RELEASE

17 NOVEMBER 2003


Second Advance Value Realisation Company Limited



The investment trust that specialises in providing investors with liquidity and value from holdings in listed UK
smaller companies



Interim results

For the period 21 March to 30 September 2003

Key Points



•        £22.5 million cash returned to shareholders by 30 September 2003. A further £4.1 m returned to shareholders in
current period to date.

•        138 holdings reduced to 44  in 6 months.

•        Weighted average net asset value of 124.16p compared with 97.30p (net of expenses) at the commencement of the
Fund, up 28 %.

•        NAV of Ordinary Shares increased by 100% from 90.99p (net of expenses) to 182.48p.

•        Confident that the final outstanding 5.2 million Preference Shares will be redeemed or re-purchased by 31
March 2004.



Robert Norbury, chairman of Second Advance Value Realisation Company Limited ('SAVR'), commented:



'I am pleased to report that SAVR has performed well since its launch. The Manager has been very active and during the
reporting period SAVR realised £26.7 million from the sale of portfolio holdings.'



For further information, please contact:



The Manager, Progressive Value Management Limited

Simon Toynbee

Robert Legget

Tel:  [phone]




CHAIRMAN'S STATEMENT



Second Advance Value Realisation Company Limited ('SAVR' or 'the Company') was incorporated on 21 March 2003 to provide
a service for institutions wishing to rationalise their portfolios of smaller listed company shares. The Company's
shares were admitted to the Official List on 25 April 2003, with a further tranche from a supplemental placing being
admitted on 14 May 2003. SAVR is managed by Progressive Value Management Limited ('PVML') which has expertise in
achieving value and liquidity from such stocks. PVML was formerly the manager of Advance Value Realisation Company
Limited ('ADVARC') and two of ADVARC's former directors, Philip Okell and David Kempton, are directors of SAVR. ADVARC
entered into members' voluntary liquidation in September 2003, having liquidated its portfolio and returned cash to its
shareholders ahead of schedule.



SAVR has been established on similar lines and with similar objectives to those of ADVARC. The launch of SAVR was
effected by means of a 'stock swap' whereby the Company issued Ordinary Shares at 100p each and Redeemable Preference
Shares at 100p each, in the ratio 30/70, as consideration for the acquisition, at mid-market value, of holdings in 138
smaller listed companies. At launch the portfolio of qualifying companies established in this way was valued at £45.8
million.



I am pleased to report that SAVR has performed well since its launch. The Manager has been very active and during the
reporting period SAVR realised £26.7 million from the sale of portfolio holdings. During the period the Company bought
in 10.6 million of its Preference Shares at a small discount to par value and redeemed a further 12.1 million
Preference Shares at par. The net asset value, excluding revenue reserves, attributable to each Ordinary Share
increased over the period from 90.99p (net of the expenses of the flotation which were borne entirely by the Ordinary
Shares) to 182.48p. The weighted average NAV, which takes account of the Preference Shares and cash returned to
investors, improved by 28 per cent. from 97.30p (net of expenses) to 124.16p as at 30 September 2003.



SAVR has benefited from improved market sentiment towards smaller cap stocks, but business conditions for small
companies remain difficult, with concerns that higher interest rates will increase costs and competitive pressures on
margins will continue. In these circumstances the Board and the Manager had no hesitation in implementing the stock
realisation programme wherever the Manager was able to create or identify opportunities to do so, thus protecting gains
by de-gearing the balance sheet through reduction of the Preference Share capital as described above. This process has
continued and since the end of the reporting period the Company has realised a further £9.4 million from disposals and
has bought in a further 4.2 million Preference Shares for cancellation. There are 5.2 million Preference Shares still
outstanding and it is the Manager's objective to buy in or redeem these shares by the end of March 2004.



The net revenue return per Ordinary Share for the period  to 30 September 2003 was 5.1p.  As stated in the prospectus
the Company intends to pay its first dividend in August 2004 and accordingly the directors are not declaring an interim
dividend.





ROBERT NORBURY

17 November 2003







STATEMENT OF TOTAL RETURN




                                                   21 March  to         21 March  to        21 March  to
                                              30 September 2003    30 September 2003   30 September 2003
                                                        Revenue              Capital               Total
                                                          £'000                £'000               £'000

Gains on investments
            Realised                                          -                6,040               6,040
            Unrealised                                        -                8,029               8,029
                                                              -               14,069              14,069

Income - from investments                                   995                    -                 995
             -  bank interest                               125                    -                 125
                                                          1,120                    -               1,120

Investment management fees                                (250)              (1,760)             (2,010)
Other expenses                                            (173)                    -               (173)

Return on Ordinary
activities before tax                                       697               12,309              13,006

Taxation                                                      -                    -                   -


Return after taxation                                       697               12,309              13,006


Dividends                                                     -                    -                   -


Transfers to reserves                                       697               12,309              13,006


Return per Ordinary Share                                 5.08p               89.73p              94.81p




The revenue column of the statement of total return is the profit and loss account of the company.



All capital and revenue items in the above statement derive from continuing operations.  No operations were acquired or
discontinued during the period.



Return per Ordinary Share is based on the weighted average number of 13,717,450 Ordinary Shares in issue from the
Company's launch on 25 April 2003 to 30 September 2003.



There are no comparatives as this is the Company's first period of operations.







BALANCE SHEET


                                                                                       At 30 September
                                                                                                  2003

                                                                                                 £'000

      FIXED ASSETS

      Investments at market value                                                               33,200

      CURRENT ASSETS
      Sales for future settlement                                                                    2
      Other debtors                                                                                291
      Cash at bank and in hand                                                                  15,508
                                                                                                15,801

      CURRENT LIABILITIES
      Preference Share redemption                        (see note 4)                         (12,100)
      Accrued liabilities                                                                        (259)
                                                                                              (12,359)
      NET CURRENT ASSETS                                                                         3,442

      EQUITY APPRECIATION FEE PROVISION                  (see note 7)                          (1,510)


      TOTAL NET ASSETS                                                                          35,132


      CAPITAL AND RESERVES
      Share capital                                                                                  3
      Capital redemption reserve                                                                     2
      Share premium account                                                                      9,570
      Special reserve for purchase of own shares         (see note 12)                          12,551
      Capital reserves                                                                          12,309
      Revenue reserve                                                                              697
      EQUITY SHAREHOLDERS' FUNDS                                                                35,132


      Net asset value per Ordinary Share                                                       187.55p

      Net asset value excluding revenue reserves per
      Ordinary Share
                                                                                               182.48p
      Net asset value per Redeemable Preference Share


                                                                                               100.00p
      No. of Ordinary Shares in issue                                                       13,745,997

      No. of Redeemable Preference Shares in issue                                           9,351,717



CASH FLOW STATEMENT


                                                                                          21 March to 30
                                                                                          September 2003
                                                                                                   £'000


OPERATING ACTIVITIES
Net Cash Inflow from Operating  Activities                                                           414

FINANCIAL INVESTMENT
Receipts on disposal of fixed asset investments                                                   26,688

NET CASH INFLOW BEFORE FINANCING                                                                  27,102

FINANCING
Expenses of issue of share capital                                                               (1,238)
Payments to purchase own shares                                                                 (10,356)

NET CASH OUTFLOW FROM FINANCING                                                                 (11,594)

INCREASE IN CASH                                                                                  15,508




NOTES





1 Comparatives

There are no comparatives as this is the Company's first reporting period.



2 Investments

Investments are listed on the London Stock Exchange.  These have been valued at mid market prices at the period end.
Two small holdings, one of which was suspended at the period end, have been valued at directors' valuation.



3 Investment management fees

One half of the basic and capital return fees payable is charged to capital.  The entire equity appreciation fee is
charged to capital.



4 Redemption of Preference Shares

On 30 September 2003 the first redemption of Preference Shares took place and 12,100,000 shares were redeemed at £1 per
share.



5 Purchase of own shares

During the period, the Company purchased 10,622,276 of its own Redeemable Preference Shares for cancellation, at an
aggregate cost of £10,356,418.



Since the end of the period, the Company has purchased a further 4,191,007 at an aggregate cost of £4,115,405.



6 Net assets per Ordinary Share

Net assets per Ordinary Share are based on the number of Ordinary Shares in issue at the end of the period after
attributing a net asset value of £1 to each Preference Share in issue at the end of the period.



7 Equity appreciation fee

An accrual of £1,509,519 (including VAT) has been made on the basis that this sum would become payable to the Manager
if the net asset value attributable to the Ordinary Shares as at 30 September 2003 represented the actual capital
amount returned to Ordinary Shareholders during the life of the Company.



8 Dividend

In accordance with the Company's stated policy, the directors do not recommend an interim dividend.



9 Investment company status

The Company is incorporated in Guernsey and tax resident in the United Kingdom.  It manages its affairs to enable it to
qualify as an investment trust for taxation purposes under section 842 of the Income and Corporation Taxes Act.  The
Company therefore presents its accounts in accordance with the Statement of Recommended Practice for Investment
Companies, with the Statement of Total Return as its first primary statement.



10 Status of this report

These financial statements are not the Company's statutory accounts.  They are unaudited.  The interim report will be
sent to shareholders and copies will be made available to the public at the office of the Secretary and the UK
Administration Agent of the Company.







11 Reconciliation of movements in shareholders' funds


                                                                                 21 March to 30
                                                                                 September 2003
                                                                                          £'000


DISTRIBUTABLE PROFITS
Revenue available for distribution                                                          697


NON-DISTRIBUTABLE PROFITS
Recognised gains and losses                                                              14,069
Expenses attributable to capital                                                        (1,760)

TOTAL PROFITS AND GAINS                                                                  13,006

Purchase of the Company's own Preference Shares                                        (10,356)
Redemption of the Company's own Preference Shares                                      (12,100)

                                                                                        (9,450)

Net proceeds of placing                                                                  44,582

Opening shareholders' funds                                                                   -

Closing shareholders' funds                                                              35,132

                                                                                At 30 September
                                                                                           2003
CLOSING SHAREHOLDERS' FUNDS                                                               £'000
Ordinary Shares                                                                          25,780
Redeemable Preference Shares                                                              9,352

                                                                                         35,132




12 Special reserve for purchase of own shares
                                                                                          At 30 September
                                                                                                     2003
                                                                                                    £'000
Redesignation from share premium account                                                           22,908
Cost of purchase of Preference Shares                                                            (10,356)
Nominal value of Preference Shares redeemed                                                           (1)

                                                                                                   12,551


On 13 June 2003, an application to the Royal Court of Guernsey to reduce the share premium account by £22,908,000  was
approved.  The reserve created by cancelling that amount is used to redeem the nominal value of Redeemable Preference
Shares and to repurchase both Redeemable Preference Shares and Ordinary Shares.





Registered office:

1 Le Marchant Street

St Peter Port

Guernsey

GY1 4HP



UK office:

Crusader House

145-157 St John Street

London

EC1V 4RU


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            The company news service from the London Stock Exchange