Final Results

British & American Investment Trust PLC
Preliminary Announcement
for the year ended 31 December 2002
Registered number: 433137

Directors                                            Registered office     
Jonathan C Woolf (Chairman and Managing Director)     Wessex House
Dominic G Dreyfus (Non-executive)                      1 Chesham Street                  
J Anthony V Townsend (Non-executive)                      London SW1X 8ND
Ronald G Paterson (Non-executive)                    Telephone: [phone]
                                                          Registered in England
                                                          No.433137
                                                            30 April 2003

Financial Highlights
For the year ended 31 December 2002
                     2002                                    2001                                       
                      Revenue      Capital      Total        Revenue      Capital         Total         
                     £000          £000         £000         £000         £000            £000          
Return before        1,476         (9,719)      (8,243)      2,066        (10,422)        (8,356)       
taxation                                                                                                
                     __________    __________   __________   __________   __________      __________    
Earnings per £1                                                                                         
ordinary share -                                                                                        
basic                3.54p         (38.88)p     (35.34)p     6.58p        (41.69)p        (35.11)p      
                     __________    __________   __________   __________   __________      __________    
Earnings per £1                                                                                         
ordinary share -                                                                                        
diluted              3.52p         (27.76)p     (24.24)p     5.70p        (29.78)p        (24.08)p      
                     __________    _________    __________   __________   _________       __________    
Net asset value                                 28,742                                    38,802        
                                                __________                                __________    
Net assets per                                                                                          
ordinary share                                                                                          
- deducting                                                                                             
preference                                                                                              
  shares at par                                 75p                                       115p          
                                                __________                                __________    
- diluted                                       82p                                       111p          
                                                __________                                __________    

Diluted net asset                               81p                                                     
value per ordinary                                                                                      
share at 24 April                                                                                       
2003 - unaudited                                                                                        
(net of recommended                                                                                     
final ordinary and                                                                                      
preference dividends                                                                                    
totalling 2.64p per                                                                                     
share fully                                                                                             
diluted).                                                                                               
                                                    __________                                          

Chairman's Statement
I report our results for the year ended 31 December 2002. 
The return on revenue account before tax amounted to £1.5 million (2001: £2.1 million). Gross income amounted to £1.8
million (2001: £2.5 million), of which £1.5 million (2001: £2.2 million) represented income from investments and £0.3
million (2001: £0.3 million) film and other income.   As reported at the interim stage, the decline in revenue return
has been due to a number of factors, principally the lower rates of return achievable on financial investments
generally over the period, the reduction or suspension of dividends by some split capital investment trusts, the
receipt in the previous year of an unusually large special dividend and the cumulative effect of the special dividends
paid to shareholders over the last two years which has reduced our investment base by  £2.5 million.
Total return before tax, including realised and unrealised capital appreciation, amounted to a loss of £8.2 million
(2001: £8.4 million).
The return on revenue account per ordinary share was 3.5p (2001: 6.6p) on an undiluted basis and 3.5p (2001: 5.7p) on a
diluted basis. 
Group net assets were £28.7 million (2001: £38.8 million), a decrease of 25.9 percent.  Compensating for the special
dividend payment of £625,000 in January 2002, the decrease in group net assets would be reduced to 24.3 percent. This
compares to a decrease over the same period of 24.5 percent in the FT-SE 100 share index and  25.0 percent in the All
Share index. The net asset value per ordinary share decreased to 82p (2001: 111p) on a diluted basis.  Deducting prior
charges at par, the net asset value per ordinary share decreased to 75p (2001: 115p).
We are pleased to recommend a final dividend of 3.0p per ordinary share.  Together with the interim dividend this makes
a total payment for the year, excluding special dividends, of 4.9p (2001: 4.845p) per Ordinary share, representing an
increase of 1.1 percent over the previous year's dividend.  In addition, a special dividend of 2.5p per ordinary share
was paid on 30th January 2002, being the last of the special dividends amounting to 10 pence per share paid over the
last two years.  A dividend of 1.75p will be paid to preference shareholders resulting in a total payment for the year
of 3.5p per share. 
As reported at the interim stage, global equity prices declined significantly and relentlessly in the second and third
quarters after having been relatively stable in the opening months of the year, with the FTSE 100 falling by 13 percent
and 9 percent, respectively.  This decline, which continued into the fourth quarter, was the result of a growing
realisation that economic growth expectations would not be met in the USA and Western economies in 2002, together with
the shocks to confidence caused by serious accounting irregularities in a number of high profile companies in the USA
and their subsequent failure.  By the end of the year, uncertain global political considerations also contributed to
the selling pressure although a modest recovery was seen in the final few weeks of the year after the lows reached
October. These falls in valuation over the year were registered across all sectors, including cyclicals, but were
particularly severe in technology, communications and other stocks where valuations could not be supported by yield. 
2002  became the third consecutive year of substantial absolute declines in equity prices, resulting in a cumulative
decline in the FTSE 100 index of  41 percent over the three year period.   By the end of the year, valuations had
retreated to levels last seen in 1996 and leading indices in the USA and UK had declined almost  50 percent from the
highs reached in early 2000 to the lows seen in October 2002.  
As noted above, the value of our portfolio slightly outperformed the leading UK market indices in 2002 despite the fact
that our net assets continued to be adversely affected by significant declines in valuations in both the traditional
and the split-capital investment trust market as discounts widened further over the year, even in the case of the large
generalist trusts. At the year end, our exposure to split capital trusts was negligible.  Our portfolio performance was
also impacted by the substantial falls in life and insurance stocks in the UK as worries developed over regulatory
solvency issues in the sector following the extent of general equity market falls.   Nevertheless, our portfolio was
able to track the leading indices over the year and we were also able to maintain our high level of income return to
shareholders through dividend distribution.  This follows the pattern achieved over the last three years where, despite
the substantial absolute falls in markets over the period noted above, our net assets have maintained parity with the
leading indices and shareholders have received distributions substantially in excess of general market yields.  In each
of the last three years, distributions to ordinary shareholders have represented more than 5.5 percent of average net
assets in the year.
As at 24 April 2003, group net assets had decreased to £28.3 million (net of the recommended final ordinary dividend
and preference dividend payable in June), a decrease of 1.5 percent since the beginning of the calendar year.  This is
equivalent to 73 pence per share (prior charges deducted at par) and 81 pence per share on a diluted basis.  Over the
same period the FTSE 100 decreased 1.1 percent and the All Share Index decreased 0.9 percent.
Since the beginning of 2003, the declines in global equity markets have been halted and in the USA and UK there has
been a tentative return of buying, particularly in the technology and communications sectors which had been seen as
oversold.  Investors have also been buying blue chip stocks whose yields had reached record levels when compared to the
returns available on long term fixed investments.  In the first quarter, yields on leading equities in the UK reached
equivalence to the yields on long term government bonds, a phenomenon not seen for fifty years. 
This turnaround in sentiment has occurred against the background of highly unstable global political events, resulting
in the continued high levels of daily market volatility which have now been experienced for a considerable period of
time.  The leading indices in the USA and UK have on occasion moved by up to 5 percent in a single day.  Consequently,
it is even more difficult than usual to make any constructive comment on the outlook for markets in the current period.
  The hostilities in the Middle East and more recently concerns relating to the developing SARS epidemic in the Far
East are likely to depress international demand which will delay any eventual recovery in output in the Western
economies.  As long as pressures on the oil price resulting from the war in Iraq and other political events do not give
rise to high long term oil and other raw materials prices, the low historical level of real and nominal US dollar
interest rates and fiscal loosening in the USA should work towards on the one hand preventing a recession in the
world's largest economy and on the other avoiding a dangerous combination of resource-based inflation in a stagnating
economy.   Against this very uncertain background, we have maintained relatively high levels of liquidity while looking
out for reasonable long term investment opportunities arising out of oversold positions and solid yield in individual
blue chip stocks.  

Jonathan C. Woolf
Consolidated statement of total return (incorporating the revenue account)
For the year ended 31 December 2002
                               2002                          2001                      
                               Revenue  Capital  Total    Revenue   Capital  Total     
                               £000     £000     £000     £000      £000     £000      
Income                                                                                 
Dividends                      1,345    -        1,345    1,914     -        1,914     
Interest                       128      -        128      219       -        219       
Film revenues                  243      -        243      248       -        248       
Property units                 103      -        103      83        -        83        
Other income                   -        -        -        6         -        6         
Realised gains on investments  -        726      726      -         267      267       
(Decrease) in unrealised       -        (10,445) (10,445) -         (10,689) (10,689)  
appreciation                                                                           
                               ________ ________ ________ ________  ________ ________  
                               1,819    (9,719)  (7,900)  2,470     (10,422) (7,952)   
Administrative expenses        (331)    -        (331)    (385)     -        (385)     
                               ________ ________ ________ ________  ________ ________  
Net return before finance      1,488    (9,719)  (8,231)  2,085     (10,422) (8,337)   
costs and taxation                                                                     
Interest payable and similar   (12)     -        (12)     (19)      -        (19)      
charges                                                                                
                               ________ ________ ________ ________  ________ ________  
Return on ordinary activities                                                          
before tax for the financial                                                           
year                           1,476    (9,719)  (8,243)  2,066     (10,422) (8,356)   
Tax on ordinary activities     (242)    -        (242)    (72)      -        (72)      
                               ________ ________ ________ ________  ________ ________  
Return on ordinary activities                                                          
after tax for the financial                                                            
year                           1,234    (9,719)  (8,485)  1,994     (10,422) (8,428)   
Dividends and other            (350)    -        (350)    (350)     -        (350)     
appropriations in respect of                                                           
preference shares                                                                      
                               ________ ________ ________ ________  ________ ________  
Return attributable to                                                                 
ordinary shareholders                                                                  
                               884      (9,719)  (8,835)  1,644     (10,422) (8,778)   
Dividends in respect of        (1,225)  -        (1,225)  (1,836)   -        (1,836)   
ordinary shares                                                                        
                               ________ ________ ________ ________  ________ ________  
Transfer (from) reserves       (341)    (9,719)  (10,060) (192)     (10,422) (10,614)  
                               ________ ________ ________ ________  ________ ________  
Return per ordinary share                                                              
Basic                             3.54p (38.88)p (35.34)p     6.58p (41.69)p (35.11)p  
                               ________ ________ ________  ________ ________ ________  
Diluted                           3.52p (27.76)p (24.24)p     5.70p (29.78)p (24.08)p  
                               ________ ________ ________                    ________  
                                                          ________  ________           
The revenue column of this statement is the consolidated profit and loss account of the group. 
All revenue and capital items in the above statement for the year ended 31 December 2002 and the year ended 31 December
2001 derive from continuing operations. No operations were acquired in the year.
Consolidated Balance Sheet
For the year ended 31 December 2002
                                             Group                         

                                             2002           2001           

                                             £000           £000           
Fixed assets                                                               
Investments                                  28,404         39,921         

Current assets                                                             
Debtors                                      323            267            
Cash at bank and in hand                     1,794          675            
                                             __________     __________     
                                             2,117          942            
Creditors:  amounts falling due within one   (1,779)        (2,061)        
year                                                                       
                                             __________     __________     
Net current assets/(liabilities)             338            (1,119)        
                                             __________     __________     
Total assets less current liabilities        28,742         38,802         
                                             __________     __________     
Net assets                                   28,742         38,802         
                                             __________     __________     
Capital and reserves                                                       
Called-up share capital                      35,000         35,000         
Other reserves                                                             
- Capital reserve - realised                 14,309         12,724         
- Capital reserve - unrealised               (22,339)       (11,035)       
Revenue reserve                              1,772          2,113          
                                             __________     __________     
Total shareholders' funds                    28,742         38,802         
                                             __________     __________     
Total shareholders' funds attributable to:                                 
Equity shareholders                          18,742         28,802         
Preference shareholders                      10,000         10,000         
                                             __________     __________     
Net asset value per ordinary share:                                        
- Basic                                      75p            115p           
- Diluted                                    82p            111p           

Consolidated cash flow statement
For the year ended 31 December 2002
                                     2002       2002       2001       2001      
                                     £000       £000       £000       £000      
Net cash inflow from operating                  1,444                 2,117     
activities                                                                      
Servicing of finance                                                            
Interest paid                        (13)                  (18)                 
Preference dividends paid            (350)                 (350)                
                                     __________            __________           
Net cash outflow from servicing of              (363)                 (368)     
finance                                                                         
Taxation                                                                        
UK tax recovered                                21                    23        
Financial investment                                                            
Purchases of investments             (2,438)               (3,739)              
Sales of investments                 4,665                 2,154                
                                     __________            __________           
Net cash inflow/(outflow) from                  2,227                 (1,585)   
capital expenditure                                                             
and financial investment                                                        
Equity dividends paid                           (1,850)               (1,836)   
                                                __________            __________
Cash inflow/(outflow) before                                                    
management of                                                                   
liquid resources and financing                  1,479                 (1,649)   
Financing                                       -                     -         
                                                __________            __________
Increase/(decrease) in cash                     1,479                 (1,649)   
                                                __________            __________
Reconciliation of net cash flow to                                              
movement in                                                                     
net funds                                                                       
Increase/(decrease) in cash          1,479                 (1,649)              
                                     __________            __________           
Change in net funds                             1,479                 (1,649)   
Net funds at 1 January                          315                   1,964     
                                                __________            __________
Net funds at 31 December                        1,794                 315       
                                                __________            __________

1 Accounting policies
All figures stated are based on the financial statements prepared under the historical cost convention as modified by
the revaluation of investments and in accordance with applicable Accounting Standards. The accounting policies adopted
are consistent with those in the most recently published set of annual financial statements.
2 Return per ordinary share
           2002                             2001                            
              Revenue    Capital Total         Revenue    Capital   Total   

Group:                                                                      
Basic      3.54p      (38.88)p   (35.34)p   6.58p      (41.69)p   (35.11)p  
           __________ __________ __________ __________ __________ __________
Diluted    3.52p      (27.76)p   (24.24)p   5.70p      (29.78)p   (24.08)p  
           __________ __________ __________ __________ __________ __________

Basic revenue return per ordinary share is based on the net revenue on ordinary activities after taxation and after
deduction of dividends in respect of preference shares of £884,000 (2001 - £1,644,000) and on 25 million (2001: 25
million) ordinary shares in issue. 
Basic capital return per ordinary share is based on capital losses, both realised and unrealised, for the financial
year of £(9,719,000) (2001: capital losses - £(10,422,000)) and on 25 million (2001: 25 million) ordinary shares in
issue.
The diluted returns per share are based on the same aggregate returns but on 35 million (2001 - 35 million) ordinary
and cumulative convertible preference shares in issue. 

3 Dividends
                                                    2002        2001       
                                                    £000        £000       
Dividends on ordinary shares:                                              
Interim paid of 1.9p per £1 share (2001: 1.845p per 475         461        
share)                                                                     
Special of nil per £1 share (2001: 2.5p)            -           625        
Final proposed of 3p per £1 share (2001: 3p per     750         750        
share)                                                                     
                                                    __________  __________ 
                                                    1,225       1,836      
                                                    __________  __________ 
Dividends on 3.5% cumulative convertible preference                        
shares:                                                                    
1.75p paid                                          175         175        
1.75p payable - proposed                            175         175        
                                                    __________  __________ 
                                                    350         350        
                                                    __________  __________ 

The dividends on ordinary shares are based on 25 million (2001 - 25 million) ordinary £1 shares in the year to
31 December 2002. Dividends on preference shares are based on 10 million (2001 - 10 million) non-voting 3.5% cumulative
convertible preference shares of £1 in the year to 31 December 2002.
The holders of the 3.5% cumulative convertible preference shares will be paid a dividend of £175,000 being 1.75p per
share.  The payment will be made on the same date as the dividend to the ordinary shareholders.
4 Diluted net asset value per ordinary £1 share
The diluted net asset value per £1 ordinary share is based on net assets of £28,742,000 (2001 - £38,802,000) and 35
million shares in issue.

5 Reconciliation of operating revenue to net cash inflow from operating activities
                                               Group                           
                                               2002             2001           

                                               £000             £000           
Net revenue before finance costs and taxation  1,488            2,085          
Scrip dividends                                (3)              (3)            
Decrease in other creditors                    (13)             (14)           
(Increase)/decrease in debtors                 (19)             86             
Tax on unfranked investment income             -                (20)           
Tax on film revenue                            (9)              (17)           
                                               __________       __________     
Net cash inflow from operating activities      1,444            2,117          
                                               __________       __________     

6 Analysis of net funds
                                                                            Balance
                                  Balance                                          
                                       1                            31 December    
                                  January             Cash flow                    
                                                                    2002           
                                  2002                                             
                                                             £000                  
                                  £000                              £000           
Cash at bank                      557           1,237               1,794          
Liquid resources - cash at        118           (118)               -              
brokers                                                                            
Bank overdraft                    (360)         360                 -              
                                     __________          __________    ________    
                                  315           1,479               1,794          
                                     __________          __________      __________

Announcement based on draft accounts
The financial information set out in the announcement does not constitute the company's statutory accounts for the year
ended 31 December 2002 or 2001. The financial information for the year ended 31 December 2001 is derived from the
statutory accounts for that year which have been delivered to the Registrar of Companies. The auditors' report on those
accounts was unqualified and did not contain any statement under section 237(2) or (3) Companies Act 1985.
The statutory accounts for the year ended 31 December 2002 will be finalised on the basis of the financial information
presented by the directors in this preliminary announcement and will be delivered to the Registrar of Companies
following the company's annual general meeting.