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Chelverton Grwth Tst (CGW)

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Tuesday 08 April, 2003

Chelverton Grwth Tst

Interim Results



The Directors announce the unaudited statement of results for the period 1
September 2002 to 28 February 2003 as follows:-


(*incorporating the revenue account) of the Group

                                 Six months to              Six months to      
                               28 February 2003           28 February 2002     
                           Revenue  Capital     Total Revenue  Capital    Total
                             £'000    £'000     £'000   £'000    £'000    £'000
Losses on investments           -   (1,076)   (1,076)      -      (96)     (96)
Income                         20        -        20      39        -       39 
Investment management fee     (15)     (45)      (60)    (22)     (66)     (88)
Other expenses               (104)       -      (104)    (92)     (18)    (110)
Net return on ordinary                                                         
before finance costs and      (99)  (1,121)   (1,220)    (75)    (180)    (255)
Interest payable and           (5)     (15)      (20)     (9)     (25)     (34)
similar charges                                                                
Transfer from reserves       (104)  (1,136)   (1,240)    (84)    (205)    (289)
                           Revenue  Capital     Total Revenue  Capital    Total
                             Pence    Pence     Pence   Pence    Pence    Pence
Return per Ordinary share   (0.55)   (6.02)    (6.57)  (0.45)   (1.10)   (1.55)
*The revenue column of this statement is the revenue account of the Group.     
All revenue and capital items in the above statement derive from continuing    
The comparative figures include the results of The Micro Quoted Growth Trust   
PLC up to 5 February 2002, the date it went into voluntary liquidation. All    
investments that were previously owned by The Micro Quoted Growth Trust PLC    
were subsequently transferred to the parent company, Chelverton Growth Trust   


As at 28 February 2003                                                          
                                                 As at                     As at
                                      28 February 2003          28 February 2002
                                                 £'000                     £'000
Fixed assets                                                                    
Investments                                     4,649                     7,474 
Current assets                                                                  
Debtors                                             9                        53 
Cash at bank*                                      79                       685 
                                                   88                       738 
Creditors - amounts falling due                                                 
within one year                                                                 
Bank overdraft*                                   791                     1,937 
Creditors                                          36                        73 
                                                  827                     2,010 
Net current liabilities                          (739)                   (1,272)
Net assets                                      3,910                     6,202 
Share capital and reserves                                                      
Share capital                                     189                       189 
Share premium account                           2,674                     2,674 
Capital reserve                                (3,421)                   (1,316)
Revenue reserve                                 4,468                     4,655 
Total shareholders' funds                       3,910                     6,202 
                                                 Pence                     Pence
Net Asset Value per Ordinary                    20.71                     32.84 
(including current period                                                       
Ordinary shares in issue at                18,883,045                18,883,045 
period end                                                                      
Weighted average number of                 18,883,045                18,766,181 
ordinary shares                                                                 
in issue during the period                                                      

*Cash at bank includes £52,000, held by the Liquidator of The Micro Quoted
Growth Trust PLC. The Liquidator will be making a distribution of this cash to
the Company.


For the six months to 28                                                       
February 2003                                                                  
                                        Six months to             Six months to
                                     28 February 2003          28 February 2002
                                                £'000                     £'000
Net cash outflow from                                                          
operating activities                            (164)                     (221)
Servicing of finance                                                           
Interest paid                                    (21)                      (33)
Net cash outflow from servicing                  (21)                      (33)
of finance                                                                     
Capital expenditure and                                                        
financial investment                                                           
Purchases of investments                        (439)                     (218)
Sales of investments                             468                       372 
Acquisition costs                                  -                      (272)
Net cash inflow /(outflow) from                                                
expenditure and financial                         29                      (118)
Net cash outflow before and                     (156)                     (372)
after financing                                                                
Decrease in cash                                (156)                     (372)


The above financial information, which does not constitute statutory accounts
as defined in Section 240 of the Companies Act 1985, has been prepared on the
basis of the accounting policies set out in the statutory financial statements
for the year ended 31 August 2002. The auditors have reported on those
accounts; their reports were unqualified and did not contain a statement under
section 237 (2) or (3) of the Companies Act 1985. These accounts have been
filed with the Registrar of Companies.

Chairman's Statement

Over the six months to 28 February 2003 the global outlook, both economic and
political, has become increasingly unstable. The uncertainties of the current
war in Iraq, the length of the debate prior to the commencement of hostilities,
continuing worries over the duration of the war, the lack of a cohesive policy
and political divisions within the United Nations have all taken their toll on
equity markets.

The economic situation shows no early signs of improvement with forecasts
generally having to be revised downwards.

It is a feature of small quoted companies that they tend to be carried by the
flood of sentiment in the larger company sector. Already undervalued, smaller
companies have seen their share prices further reduced in the last two months
of the period and the AIM index has continued to decline. It is also intriguing
and unusual that unquoted valuations appear now to be higher than quoted
companies. The evidence for this has been produced by Deloitte Touche Ross who
also predict that for the first time private equity transactions will represent
more than 50% of all transactions. This anomaly cannot last forever, and
wherever possible the manager is taking advantage of the situation by buying
additional shares in existing investments that appear to be grossly

In addition, it is clear that others are recognising the potential value to be
had in these companies. A number of 'vulture' or 'catalyst' funds have been
established with a view to forcing a change of control and the realisation of
the proper value of such opportunities.

At the beginning of this six-month period your Company's net asset value
(`NAV') per share stood at 27.28p. at 28 February 2003 the NAV stood at 20.71p,
a drop of 24.08%. The performance of the benchmark, the FTSE All Share,
declined over this period by 14.03% from 2,046.2 to 1,759.1. It needs to be
pointed out that in excess of 90% of this index is represented by FTSE 100
companies whereas your fund is invested 72.2% in AIM traded and unquoted
companies, traditionally more volatile than the FTSE 100.

As at 28 February 2003 your Company held 33 investment positions; this has
since been reduced to 30 with the proceeds being used to reduce gearing, on the
one hand, and to increase stakes in current companies on the other. Your Board
continues to believe that Chelverton's investment strategy is a good one
despite the poor performance this half-year and that in due course your Company
and its shareholders will benefit accordingly. With today's global
uncertainties, however, it is impossible to predict the timing of this

Pratt Thompson


8 April 2003


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