Final Results

Aurora Investment Trust PLC
18 May 2004


Aurora Investment Trust plc
PRELIMINARY ANNOUNCEMENT OF RESULTS
For the year ended 29 February 2004


CHAIRMAN'S STATEMENT

•       THE YEAR'S PERFORMANCE:

I am pleased to be able to report that James Barstow, Aurora's Manager, has had
another excellent year.  For the record, our net asset value rose 54.5% from
120.2p to 185.6p per share.  Admittedly it was during a period of particularly
strong stock market recovery - the bear market bottomed out in March 2003, three
years after its technology bubble peak; over the course of our year it rose
27.5% but that was only half as much James managed for shareholders.  Since the
Company was launched in 1997, seven years ago, the net asset value has risen
89.9% and the share price 72.5%. These seven years have provided investors with
lots of ups and downs - covering the tail end of a 25 year bull market and all
of the most severe bear market since 1973/74.  Net, net the market has risen
just 4.0% since we started in business.  I am sure that Shareholders will join
me and my Board colleagues in congratulating and thanking James for these
results.


James' Review and Outlook highlights the major contributors to our performance
and explains his assessment of the driving forces behind some of the individual
share price movements.  He highlights two areas of the portfolio which have done
particularly well - our investment in companies exposed to the economy of
Ireland and to house building in Britain.  The figures below illustrate how they
and other exposures helped drive our net asset value up by 65.5p per share:


Top five contributors to NAV growth:


       •       Anglo Irish Bank (Ireland)                                + 14.7p per share
       •       Gartmore Irish Growth Fund (Ireland)                      + 11.2p per share
       •       Abbey plc (Ireland/house builder)                         +   6.2p per share
       •       UK Coal                                                   +   5.9 per share
       •       Persimmon Homes (house builder)                           +   4.9p per share


The other contribution to the increase in net asset value and the relative
performance was our gearing.  During December we increased our borrowings, which
had started the year at £3.7m (20.5% of our net asset value); they ended the
year at £6.4m (22.8%).  A very approximate estimate of the increase in the net
asset value can be accounted for as follows:


       •       the underlying portfolio                            •      +50p per share

       •       gearing                                                    +15p per share
       •       Total                                               •      +65p per share





•       SHARE PRICE AND DISCOUNT:

A year ago, in the dark days before the onset of the war in Iraq, our share
price stood at 95p - being a discount of 21.0% on our net asset value of 120.2p
per share.  I am very happy to be able to report that the share price this year
did even better than the net asset value, rising by 81.6% to 172.5p - where it
stood on a discount of 9.3% to the underlying net asset value.  Your Board
believes that this is recognition - at last - for James's excellent long term
performance and of course for the results for the year just ended.



Our primary goal is to make money for our shareholders:  that is more important
than anything else; we achieved it last year and we have done so since the
launch in 1997.  Of secondary importance - important nonetheless - is to do
better than our peer group and better than the benchmark index against which we
compare our performance.  That too we achieved.



•       DIVIDEND:

Our net income for the year rose 18.6% from £625,000 to £741,000 but the
increase was more than accounted for by the £180,000 profits earned in the
subsidiary.  Absent that, net income declined to £561,000, which is the amount
that is available for distribution to shareholders.  The Board are recommending
a final dividend of 2.85p per share (2.70p last year) but are not proposing an
extra dividend (0.4p was paid last year).



Our dividend policy is to keep the dividend rising each year; in those years
when the income is well above trend, we will pay out an extra dividend;
conversely, if it is well below trend, we will pay the dividend in part out of
revenue reserves.  The net income each year is bound to vary according to which
shares James holds in the portfolio but we nevertheless aim to maintain a
progressive dividend record.



•       INVESTMENT POLICY (general):

Shareholders, I am sure, are familiar with James' investment approach - it being
a top down assessment of the investment environment and the selection of the
shares of well-managed companies which benefit from it.   James' view, which is
endorsed by his board colleagues, is that the economic background of the world
is, in general, deflationary. However, much as with inflation, there are ups and
downs within the longer term trends and just at the moment there is an
inflationary uptick.  That in turn means that we are in a period when interest
rates are rising.



The longer term deflationary case stems from the demographics within the largest
economies (the ageing of their populations), from globalisation (surplus
productive capacity and lack of corporate pricing power), from the modernisation
of the economies of China and India (with highly productive but moderately paid
work forces), technology (lowering production costs) and from debt levels (which
will be reduced at some point, just as they have been in Japan in the last 15
years).  But for the moment after years of decline, inflation is likely to
increase.


I mention this for two reasons, the first being to remind shareholders of our
long term policy.  Secondly, although the current inflationary uptick is, we
believe, a temporary aberration in the longer term trend, we do not intend to
change materially the structure of the portfolio.  We believe that the companies
whose shares we own should flourish in the current environment as well as in the
longer term.



•       INVESTMENT POLICY (investing in other investment trusts)

As we announced towards the end of last year, the Board of Directors has adopted
a policy of restricting the amount of the total gross assets that will be
invested in the securities of other investment trusts to 15%.  However, there
are areas of investment where exposure through specialist knowledge, skills and
experience can best be obtained through investing in the securities of other
investment trusts with specialist mandates (geographical or sector specialist).
Should the Board decide that it would be advantageous to invest more than 15% in
such investment trusts, it will contact shareholders before doing so.  At the
year end there were two holdings in the shares of an investment trust - in
Gartmore Irish Growth Fund plc (10.9% of total assets) and in Amerindo Internet
Fund plc (2.5%).



•       ANNUAL GENERAL MEETING:

The Annual General Meeting will take place at 12.00 noon on 7 July 2004 at
Crusader House, 145/147 St John Street, London EC1V 4RU.  We do encourage as
many shareholders as possible to attend the meeting so that they have a chance
to meet the directors and James in particular.  The AGM is the pivotal point in
the relationship between the Board and shareholders and provides you with a
chance to ask questions of us and to make suggestions to us.  It is an important
aspect of the governance of your Company that we meet with shareholders and
learn about your views of and concerns for the Company.



•       PROSPECTS:

The prospects for the UK economy and the stock market in the shorter term seem
to be rather good - buoyed up by a robust recovery in the global economy, an
economic structure geared to the growing services industries and excessive
government spending.  The one major cloud in the sky would appear to be the risk
of a rise in interest rates - more quickly and to a higher level than is
currently expected. The Bank of England's determination to suppress the housing
sector - prospering because of demographics, social trends and planning
constraints - but not because of loose monetary policy - could prove to be that
risk.



The longer term prospects are, we believe, rather more subdued.  The growing
consumer and government debt levels, the extreme wastefulness of much government
expenditure and the breathtaking array of rules, regulations and controls being
thrown at British business are all very serious long term concerns.  Signing up
to the European Union's Constitution and to the Euro - at this stage, at least,
unlikely events - would condemn the British economy to the economic and
corporate sclerosis that is affecting the major countries in the Euro, Germany
in particular.  Our exposure to the shares of companies themselves exposed to
faster overseas economies is an important part of our investment policy.



James's Review and Outlook covers much about the prospects for the portfolio and
the Company's therein.  Following the bursting of the technology bubble in the
Spring of 2000, all stock markets declined, the bear market lasting for 3 full
years.  This last year has seen a recovery but share prices generally remain
well below the peaks of 2000.  We believe that over the course of the first 10 -
15 years of the new millennium, share prices generally will not recover and
exceed those peak levels; rather they will fluctuate beneath them.  However,
within that general trend, some share prices will do much better and some much
worse; it is, we believe, a classic stock pickers' stock market. Your Board
believes that in James we have an excellent stock picker.



Despite the shorter term prospects for higher inflation, for tighter monetary
policies and for higher interest rates, the basic long term trends that James is
following are intact. Our investment objective states - ' a distinctive feature
is an emphasis on investment in companies with exposure to economies growing at
a faster rate than the UK'.  We have highlighted the economies of Ireland and
China as two of those areas and many of the holdings in the portfolio reflect
that; we expect them to continue to do well.  Other characteristics of the
investment climate of our time - the ageing demographics, globalisation, lack of
corporate pricing power and electronic and biotechnology - are all represented
in the portfolio by companies we believe to be well managed with good growth
prospects.  It is for these reasons therefore that your Board of Directors
remains optimistic about the prospects - particularly the longer term prospects
- for the Company's net asset value.



ALEX HAMMOND-CHAMBERS

18 May 2004



CONSOLIDATED STATEMENT OF TOTAL RETURN
FOR THE YEAR ENDED 29 FEBRUARY 2004

                                         Year ended 29 February 2004     Year ended 28 February 2003

                                       Revenue     Capital      Total       Revenue     Capital       Total
                                         £'000       £'000      £'000         £'000       £'000       £'000



Gains/(losses) on investments                -      10,283     10,283             -     (2,407)     (2,407)
Exchange differences on overdraft            -           3          3             -       (325)       (325)
Realised gains of trading                  172           -        172             2           -           2
subsidiary
Income                                     953           -        953           995           -         995
Investment management fees               (130)       (620)      (750)         (104)       (104)       (208)
Other expenses                           (174)           -      (174)         (144)           -       (144)

Return before finance costs and            821       9,666     10,487           749     (2,836)     (2,087)
taxation
Interest payable and similar              (89)        (89)      (178)         (124)       (124)       (248)
charges

Return before taxation                     732       9,577     10,309           625     (2,960)     (2,335)
Taxation                                     9           -          9             -           -           -

Return on ordinary activities              741       9,577     10,318           625     (2,960)     (2,335)
after taxation


Ordinary dividends payable               (431)           -      (431)         (468)           -       (468)


Transfer to reserves                       310       9,577      9,887           157     (2,960)     (2,803)

Return per ordinary share                4.91p      63.39p     68.30p         4.14p    (19.59p)    (15.45p)




CONSOLIDATED BALANCE SHEET
AT 29 FEBRUARY 2004
                                                                        2004           2003
                                                                       £'000          £'000

FIXED ASSETS
Investments at market value                                           34,851         21,763

CURRENT ASSETS
Sales for future settlement                                                -            300
Other debtors                                                             66             85
Taxation recoverable                                                       1             34
Total debtors                                                             67            419
Cash at bank and in hand                                                 839            407
                                                                         906            826

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR:
Purchases for future settlement                                          275             91
Bank overdraft                                                         6,406          3,729
Other creditors                                                          598            141
Dividends payable                                                        431            468
                                                                       7,710          4,429

NET CURRENT LIABILITIES                                              (6,804)        (3,603)

TOTAL ASSETS LESS CURRENT LIABILITIES                                 28,047         18,160

CAPITAL AND RESERVES
Called up share capital                                                3,777          3,777
Share premium account                                                 10,997         10,997
Realised capital reserve                                               6,977          5,314
Unrealised capital reserve                                             5,632        (2,282)
Revenue reserve                                                          664            354

EQUITY SHAREHOLDERS' FUNDS                                            28,047         18,160

Net assets per ordinary share                                        185.65p        120.20p



COMPANY BALANCE SHEET
AT 29 FEBRUARY 2004

                                                                                 2004             2003
                                                                                £'000            £'000

FIXED ASSETS
Investments at market value                                                    34,851           21,763
Investment in subsidiary                                                            3              306
                                                                               34,854           22,069
CURRENT ASSETS
Other debtors                                                                      66               85
Taxation recoverable                                                                -               32
Total debtors                                                                      66              117
Cash at bank and in hand                                                          837              403
                                                                                  903              520

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR:
Purchases for future settlement                                                   275               91
Bank overdraft                                                                  6,406            3,729
Other creditors                                                                   598              141
Dividends payable                                                                 431              468
                                                                                7,710            4,429

NET CURRENT LIABILITIES                                                       (6,807)          (3,909)


TOTAL NET ASSETS                                                               28,047           18,160


CAPITAL AND RESERVES

Called up share capital                                                         3,777            3,777
Share premium account                                                          10,997           10,997
Realised capital reserves                                                       6,977            5,314
Unrealised capital reserve                                                      5,591          (2,503)
Revenue reserve                                                                   705              575

EQUITY SHAREHOLDERS' FUNDS                                                     28,047           18,160



CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 29 FEBRUARY 2004

                                                                        2004            2003
                                                                       £'000           £'000

NET CASH INFLOW FROM OPERATING ACTIVITIES                                766             361

SERVICING OF FINANCE
Interest paid                                                          (268)           (248)

TAXATION
Tax recovered                                                             43               -


CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Payments to acquire fixed asset investments                         (11,392)         (8,617)
Receipts on disposal of fixed asset investments                        9,071          10,290


NET CASH INFLOW FROM INVESTING ACTIVITIES                            (2,321)           1,673


EQUITY DIVIDENDS PAID                                                  (468)           (394)

NET CASH INFLOW BEFORE FINANCING                                     (2,248)           1,392


(DECREASE)/INCREASE IN CASH                                          (2,248)           1,392



Notes:

The revenue column of the Statement of Total Return is the consolidated profit
and loss account of the Group, comprising Aurora Investment Trust plc and AIT
Trading Limited.

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

Returns and net asset values per ordinary share are based on 15,107,250 ordinary 
shares in issue.


Dividend

The directors recommend an ordinary dividend of 2.85p per share absorbing
£430,557.  If approved by the Annual General Meeting, this dividend will be paid
on 19 July 2004 to shareholders on the register at 4 June 2004.


Status of this Report

The above results for the year ended 29 February 2004 are unaudited.  This
financial information does not constitute the Company and Group's statutory
accounts for the year ended 29 February 2004 but is derived from those accounts.
Statutory accounts for the year ended 29 February 2004 are to be delivered to
the Registrar of Companies following the Annual General Meeting.

The results for the year ended 28 February 2003 are an abridged version of the
Group's full accounts, which received an unqualified audit report, not
containing statements under section 237(2) or 237(3) of the Companies Act 1985,
and which have been filed with the Registrar of Companies.

The accounting policies set out in the most recently published full accounts 
have been followed in this statement.


Company Secretary and Registered Office:
Cavendish Administration Limited
Crusader House, 145-157 St. John Street
London EC1V 4RU



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