Final Results

Billam PLC
21 June 2002


BILLAM PLC

PRELIMINARY ANNOUNCEMENT

FOR THE YEAR ENDED

31 DECEMBER 2001

Company Number:  00298654


FINANCIAL HIGHLIGHTS

                                                                                               2001           2000

Net assets per ordinary share                                                                 0.91p          0.72p

Return attributable to equity shareholders from continuing operations £'000                   1,894          1,377

Return per ordinary share                                                                     0.21p          0.31p

Investments £'000                                                                            11,272          5,902




MANAGEMENT COMMENTARY


Chairman's statement

'A watershed in the history of Billam plc' your Company.  In my last annual
report I highlighted the opportunities that existed for your Company.  Today I
am pleased to report to you that we are currently fulfilling all our aspirations
as an investor in digital technologies, the life sciences and most importantly
their convergence.

Your Board has pledged to deliver growth in net assets in order to create
shareholder value.  In an unpopular sector that has seen much consolidation, in
difficult and depressed capital markets I am pleased to say that we continue to
make strong progress and remain one of the best performing small investment
companies over the period.

During the year your directors and executive have worked very closely with many
of the investee companies in the portfolio, as they strive to accelerate organic
growth and to acquire complementary technologies.  We have continued to develop
our extensive network within academia, as research collaborators and as
advisers, perceiving this as pivotal to future success.

Your Company has adopted an investment policy that embraces a synergistic
approach to portfolio management and development as being a key driver of growth
and increased net asset value.  Over the course of the next few months your
Board intends to demonstrate the very significant merits of having identified
and adopted this strategy.

I would like to take this opportunity to thank my executive Angus Forrest and
Peter Hoskins and fellow directors for all their hard work on behalf of your
Company, and further all those loyal shareholders whose confidence and support
we enjoy and appreciate.

Executive Report

I am pleased to report that for the second year Billam plc has made substantial
progress with further advances in the current year.

Citing CybIT Holdings plc as an example which floated on the Alternative
Investment Market of the London Stock Exchange in March 2001, and has
subsequently acquired Fleetstar from Trafficmaster plc, enabling CybIT to become
a leading player in the European telematics market.

Investment policy

Our focus continues to be on companies with strong management which offer
products with identifiable and quantifiable benefits to business users operating
in growth markets.  The addition of a life science portfolio serves only to
increase our corporate opportunities.

Investment activity

During the year Billam plc made further investments in telematics, financial
modelling and database management.  Our acquisition of World Life Sciences
Limited presents a portfolio of interesting life science investments at varying
stages of development.


Performance in the year 1 January 2001 to 31 December 2001

Our previously identified target to increase net asset values faster than the
benchmark indices is shown below.

Net assets per share increased by 26.4%* in the year.

FTSE Techmark All share index                                - 37%
FTSE All share index                                         - 15%
FTSE AIM index                                               - 38%


*The values attributed to investments are strictly in accordance with the
Group's accounting policy and in accordance with the BVCA guidelines.  The
investments are held at cost or, where the investments are quoted, at their mid
market value.  In the opinion of the directors the open market value at the date
of acquisition was £1 million in excess of the carrying value and this was taken
into account when undertaking the acquisition of World Life Sciences plc.  This
has not been reflected in the net asset value calculations.


Outlook for the portfolio

We are confidently expecting further significant growth in net asset value in
the short, medium and longer terms.


Communications

The website is constantly updated to provide all shareholders with up to date
information about the Company and its investments.  We would encourage
shareholders to register on the website in order to receive the information by
e-mail.


Conclusion

The contribution by my colleagues, particularly my fellow executive Peter
Hoskins, has been substantial enabling not only Billam plc to develop its
business but also many of the companies in the investment portfolio.


The preliminary announcement was approved by the Board on 20 June 2001.


PORTFOLIO REVIEW

The portfolio of investments is described in detail below with a description of
each of the companies.  The investment strategy has been to invest in technical
companies operating in the most dynamic and exciting markets.  This year with
the acquisition of World Life Sciences Limited your Company has acquired a
portfolio of life science businesses.

Autonomics Limited

Autonomics is developing its first product, TransAccs, a financial modelling
tool, under the guidance of chief executive John Taylor.  TransAccs targets the
multi-million dollar worldwide market for financial planning software.

Billam AG

Billam AG, a wholly owned subsidiary, is based in Bern, Switzerland.  Formed to
help handle investments on mainland Europe.

CybIT Limited

CybIT is the UK's first dedicated telematics Application Service Provider and
Internet Service Provider.  It has access to leading technology, a comprehensive
range of products, and offers a first class service.  Growth prospects are
exponential.  In March 2001 it floated on AIM raising £2.6 million.  Since then
management has been strengthened with key appointments.  Through the latter part
of 2001 CybIT began to identify possible acquisitions.  After reviewing several
opportunities it acquired Fleetstar, the telematic division of Trafficmaster
enabling it to become a leading player in the European zone.

Danum Group Limited

Danum is the holding company for IntegriSys Limited which supplies medical data
to doctors and medical practitioners over the internet and health organisation
intranets.  In December 2001 IntegriSys Limited merged with Primary Care Group
Systems Limited, a supplier of software and IT systems to the medical
profession, to expand the capabilities of the companies and accelerate the pace
of market exploitation.  Billam plc is currently working with the management and
major shareholders to effect a buy-out of the core technology which it intends
to reposition with key strategic partners.

EiRx Therapeutics Limited

EiRx, the emerging Irish biopharmaceutical company, is using novel technology to
identify new gene targets involved in the control of the natural process of
programmed cell death or apoptosis.  When this natural process becomes
uncontrolled it can give rise to a number of different diseases including
cancers.  Once the controlling genes are identified and validated as potential
targets, the company looks for collaborative partners to commercialise the
target.

The company has created a proprietary discovery micro-array.  In addition the
company's technology platform has already given rise to a number of leads from
which the first validated targets will be identified for further in-house
development or licensing out to pharmaceutical development companies.

Fulcrum Pharma plc

Fulcrum Pharma plc is the first independent company to offer global virtual drug
development and strategic outsourcing services to the pharmaceutical industry.
Having established highly successful operations in the UK and Japan, Fulcrum has
its sights firmly set on the US.

Inaplex Limited

Inaplex is a developer of data management software.  Inaport, the first product,
has been launched.  It interfaces with Goldmine, the leading mid-market CRM
package from FrontRange Solutions Inc.  Initial sales of the product have been
well received and it is now being promoted by FrontRange.  A second product
Metaview is being developed and is being betatested for a launch in late 2002.

IVU Traffic Technologies AG

Berlin, Germany

IVU develops intelligent software which offers innovative and efficient
solutions to the varied demands of a mobile society.  It is one of the world's
leading suppliers of IT Systems for optimising logistic processes, and has
extensive expertise and a quarter of a century of experience.  It is undertaking
research into key technologies like traffic telematics, mobile communications
and the internet, and has created an extreme information platform elogistically
addressing solutions for a world on the move.  Elogistics takes what appears to
us to be obvious - our actual location - and incorporates this into an
innovative solution to create a new dimension of fast and comprehensible
information.

Physiomics plc

Physiomics is the integrated, system-level approach to the study of human
physiology.  It looks at the next hierarchical level of phenotype and considers
how the proteome within and among cells cooperates to produce the biochemistry
and physiology of individual cells and organisms.  This will ultimately lead to
the elucidation of the physiological dynamics of entire organisms.

Syngenix Limited

Syngenix 'ProVector' technology provides a means of targeting drugs to the
nervous system allowing a larger quantity of the drug to get to the intended
site of action, improving the efficacy while reducing side effects.  Syngenix's
targeting technologies represent a major step in the development of new drugs to
treat diseases of the nervous system.  The technologies can be applied to, not
only existing drugs, but to many of the new drugs under development.

TigerEx Group Limited

TigerEx was founded in March 2000 by Paul Barnes and Michael Waller-Bridge,
formerly senior officers of the Tradepoint Stock Exchange. TigerEx aims to
become the principal service company to a series of associated joint venture
companies planned around the world.  They will bring together stock exchanges,
institutional banking houses and broker-dealers in an internet-based order
routing system.  Initially the proposed service will operate in the Pacific/
Oceania Region.  It is designed to allow on-line investors to trade, clear and
settle in any major market, including their home market, through a single
consolidated account with their local broker.

TigerEx can enable partners to create new financial products.  It also offers
institutional partners a reliable, low cost, liquid cross-border trading
platform in association with participating Stock Exchanges.  By extending the
reach of participating markets and aggregating transactions, TigerEx aims to add
liquidity and reduce total trading costs.

Following the successful launch of TigerEx, the company raised additional funds
in a round lead by Prudential Corporation in June 2002.

Trimex Group Limited

TRI-MEX is a global telematic solutions provider which uniquely monitors
vulnerable, valuable, perishable or hazardous cargoes in real time. It focuses
on tracking and monitoring the actual cargoes, rather than just the transport
vehicles, in complex global supply chains. TRI-MEX systems reduce the risks and
costs of movements arising from theft, poor environmental control or inefficient
supply chain management.  It addresses a global market in which $30 billion of
cargo is stolen each year.

URCO plc

URCO, a subsidiary, makes investments in early stage scientific research,
particularly digital technology and life science situations, being developed in
UK Universities and scientific institutes.

Subsidiary undertakings

Billam AG - The Company has a 100% interest in Billam AG, a company registered
in Switzerland.  Billam AG's business is to make and manage investments in
quoted companies.

URCO plc - The Company has a 90.91% interest in URCO.  URCO's business is to
make and manage investments in start-up and early stage companies.

World Life Sciences Limited - The Company had a 100% interest in World Life
Sciences at 31 December 2001.



CONSOLIDATED STATEMENT OF TOTAL RETURN (incorporating the revenue account)

FOR THE YEAR ENDED 31 DECEMBER 2001

                                             2001        2001        2001        2000        2000        2000
                                 Note       £'000       £'000       £'000       £'000       £'000       £'000
                                          Capital     Revenue       Total     Capital     Revenue       Total

Gains on investments                        2,841           -       2,841       1,820           -       1,820

Income                                          -         510         510           -         287         287

Gross revenue and capital                   2,841         510       3,351       1,820         287       2,107
return

Administrative expenses                         -     (1,210)     (1,210)           -       (229)       (229)

Net return before                           2,841       (700)       2,141       1,820          58       1,878
exceptional items

Surplus arising on                              -           -           -           -       2,237       2,237
fundamental reorganisation                      
of discontinued operations

Net return before finance                   2,841       (700)       2,141       1,820       2,295       4,115
costs and taxation
                                                                           
Interest payable and                            -         (1)         (1)           -         (1)         (1)
similar charges

Return on ordinary                          2,841       (701)       2,140       1,820       2,294       4,114
activities before taxation
                                                                           
Tax on ordinary activities          2       (406)         150       (256)       (500)           -       (500)

                                            2,435       (551)       1,884       1,320       2,294       3,614

Minority interests                              -          10          10           -           -           -
attributable to equity shareholders

Return attributable to                      2,435       (541)       1,894       1,320       2,294       3,614
equity shareholders
                                                                           
Return per ordinary share
Continuing operations
Basic                               3       0.27p     (0.06p)       0.21p       0.30p       0.01p       0.31p

Discontinued operations
Basic                                           -           -           -           -       0.52p       0.52p



The total revenue column of this statement is the profit and loss of the Group.


BILLAM PLC

CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2001
                                                                                         2001        2000
                                                                                        £'000       £'000
Fixed assets
Negative goodwill                                                                        (60)           -
Tangible assets                                                                             2           1
Investments                                                                            11,272       5,902
                                                                                       11,214       5,903
Current assets
Debtors                                                                                    62         307
Cash at bank and in hand                                                                  863         751
                                                                                          925       1,058

Creditors: amounts falling due within one year                                          (862)       (184)

Net current assets                                                                         63         874

Total assets less current liabilities                                                  11,277       6,777

Provision for liabilities and charges                                                   (756)       (500)

Minority interests                                                                          2           -

                                                                                       10,523       6,277
Capital and reserves
Called up share capital                                                                 1,295       1,005
Share capital to be issued                                                                344           -
Share premium account                                                                   4,640       4,595
Other reserves
        Capital reserve realised                                                          190           -
        Capital reserve unrealised                                                      3,565       1,320
        Merger reserve                                                                  1,680           -
        Revenue account                                                               (1,191)       (643)
Shareholders' funds                                                                    10,523       6,277



BILLAM PLC

CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 December 2001
                                                                   2001       2001       2000       2000
                                                        Note      £'000      £'000      £'000      £'000

Net cash inflow/(outflow) from operating activities        4                   220                 (475)

Returns on investments and servicing of finance
Interest paid                                                       (1)                   (1)

Net cash outflow from returns on investments and
servicing of finance                                                           (1)                   (1)
                                                                               
Capital expenditure and financial investments
Purchase of tangible fixed assets                                     -                   (2)
Net cash acquired with subsidiary undertaking                       830                     -
Purchase of investments                                         (1,498)               (4,082)
Sale of investments                                                 500                     -
                                                                             (168)               (4,084)

Net cash outflow before financing                                               51               (4,560)

Financing
Repayment of borrowing                                                -                 (490)
Issue of share capital                                               50                 5,277

Net cash inflow from financing                                                  50                 4,787

Increase in cash in the year                               5                   101                   227




NOTES TO THE PRELIMINARY ANNOUNCEMENT

For the year ended 31 December 2001

1.         BASIS OF PREPARATION

The preliminary announcement has been prepared under the historical cost
convention, as modified by the revaluation of investment assets.

The Group's accounts have been prepared in accordance with the Statement of 
Recommended Practice for investment trusts. 

The significant accounting policy of the Group is as follows;


INVESTMENTS

Listed investments are valued at mid market prices.  Unlisted investments are
valued at the Board's estimate of net realisable value.  Unlisted investments
are valued with reference to available information including market prices of
similar companies, latest dealings, accounting information and professional
advice as appropriate in accordance with the guidelines issued by the British
Venture Capital Association.

Realised surpluses or deficits on the disposal of investments and permanent
impairments in the value of investments are taken to capital reserve - realised,
and unrealised surpluses and deficits on the revaluation of investments are
taken to capital reserve - unrealised.


2.         TAX ON ORDINARY ACTIVITIES

The taxation for the year is made up as follows:


                                                           2001         2001       2001        2000
                                                          £'000        £'000      £'000       £'000
                                                        Capital      Revenue      Total     Capital

Deferred tax                                                406        (150)        256         500


3.         RETURN PER ORDINARY SHARE

The return per ordinary share is based on the weighted average number of
ordinary shares in issue during the year of 883,160,990 (2000: 435,654,217) and
the following figures:

                                         2001           2001           2001         2000         2000         2000
                                        £'000          £'000          £'000        £'000        £'000        £'000
                                      Capital        Revenue          Total      Capital      Revenue        Total

Return after taxation                   2,435          (541)          1,894        1,320        2,294        3,614

Return per ordinary shares              0.27p        (0.06p)          0.21p        0.30p        0.53p        0.83p



In the year to 31 December 2000 £2,237,000 of revenue related to discontinued
operations.



4.         RECONCILIATION OF OPERATING RETURNS TO NET CASH FLOW FROM OPERATING
           ACTIVITIES
                                                                                         2001           2000
                                                                                        £'000          £'000

Operating return                                                                        2,141          1,878
Write down investment in World Life Sciences plc to cost (see note 20)                  (934)              -
Surplus on fundamental reorganisation                                                       -          2,237
Depreciation and amortisation                                                               -              1
Gain on sale of investments                                                             (190)              -
Unrealised increase in investment appreciation                                        (1,717)        (1,820)
Decrease in debtors                                                                       379            118
Increase/(decrease) in creditors                                                          541          (652)
Exceptional loss on disposal of fixed assets                                                -            123
Exceptional gain arising on CVA                                                             -        (2,360)
                                                                                          220          (475)



5.         RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS/(DEBT)
                                                                                       2001           2000
                                                                                      £'000          £'000

Increase in cash in the year                                                            101            227
Cash inflow from financing                                                                -            490
Change in net funds resulting from cash flows                                           101            717
Other non-cash items                                                                      -            238
Net funds /(debt) at 1 January 2001                                                     751          (204)
Net funds at 31 December 2001                                                           852            751


6              PUBLICATION OF NON-STATUTORY ACCOUNTS

The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985.

The summarised balance sheet at 31 December 2001 and the summarised profit and
loss account, summarised cash flow statement and associated notes for the year
then ended have been extracted from the Group's 2001 statutory financial
statements upon which the auditors opinion is unqualified.

Those financial statements have not yet been delivered to the Registrar.


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