Interim Results

HG Capital Trust PLC
02 September 2003

                                                                2 September 2003



                              HgCapital Trust plc

             Interim Results for the six months ended 30 June 2003


-     The net asset value per share increased by 4.2% in the six months to 30 
      June 2003 from 332.9p to 346.7p. The FTSE All-Share Index rose by 4.1% and 
      the FTSE SmallCap Index by 15.5% in the same period.


-     Earnings per share of 2.4p (2002: 4.2p).


-     New investments amounted to £5.1 million.


-     Follow-on funding amounted to £2.6 million.


-     Gilt and cash balances amounted to £7.2 million at 30 June 2003 (31.12.02: 
      £14.9 million).


-     NAV was 348.6p at 31 July 2003.


The Chairman, David Bucks, comments:


'The Company continues to maintain its long term record of outperformance
against the FTSE All-Share Index.  The net asset value per share increased by
4.2% from 332.9p at the end of 2002 to 346.7p at 30 June 2003.  This compares
with increases of 4.1% in the FTSE All-Share Index and 15.5% in the FTSE
SmallCap Index, both in capital-only terms.

'Earnings per share were 2.4p, compared with 4.2p in the same period last year. 
This decrease is due to the costs incurred in connection with the reorganisation
of the Company earlier this year.  As these costs were a non-recurring item, the
Board intends to exclude them from consideration when deciding the dividend to
be recommended in respect of the current year.

'The Company committed £7.7 million to new and follow-on investments and
realisations yielded £2.3 million.  As at 30 June 2003, the Company's cash
resources amounted to £7.2 million, approximately half the amount held at the
end of 2002.  This trend is expected to continue and the Company will draw on
its £25 million borrowing facility.





'Finally, following the approval of the new management arrangements at the
Extraordinary General Meeting in April, the Company now has a direct contractual
relationship with HgCapital.  One of the features of the new management
agreement is an alignment of part of the Manager's remuneration to the
performance of the Company's net asset value.  The name of the Company has
changed to HgCapital Trust plc to reflect that relationship.  The life of the
Company has been extended by a further period of six years to 2011.'

Ian Armitage of HgCapital, the Fund Manager, commented:

'In March, we completed the £17 million public-to-private management buy-out of
Rolfe & Nolan, the leading independent supplier of back-office processing
software to the futures and options industry.

'We also acquired Hoseasons, the leading independent self-catering holiday
agency in the UK, in a £40 million secondary buy-out.  The growing market for
self-catering overseas holidays represents a significant opportunity for
Hoseasons.

'The larger, more established businesses within the portfolio are generating
cash, enabling them to repay acquisition debt and thus improve their financial
condition.  There have been healthy increases in profits at Match, Tunstall,
Castlebeck, ClinPhone and Pharma Bio-Research.  Early-stage companies are still
finding the business climate difficult and, where appropriate, we have reduced
valuations to reflect their performance and poorer prospects.

'The number of potential deals that we are seeing has increased across all the
sectors, particularly within Germany, where tough markets have caused companies
to dispose of peripheral activities.  We have launched a bid to acquire the
issued share capital of W.E.T. Automotive Systems AG in order to take the
company private, offering a full price for what we believe to be a good
business.



'We remain cautiously optimistic for further opportunities to deploy capital.'


For further information please contact:

David Bucks - Chairman, HgCapital Trust plc
Tel: [phone]

Ian Armitage - Chief Executive, HgCapital
Tel: [phone]

Trevor Phillips - Holborn Public Relations
Tel: [phone]


REVENUE STATEMENT

for the six months ended 30 June 2003


                                                           Six months          Six months                 Year
                                                                ended               ended                ended
                                                              30 June             30 June          31 December
                                                                 2003                2002                 2002
                                                                £'000               £'000                £'000
                                                 Note     (unaudited)         (unaudited)            (audited)

Income                                              5           2,028               1,852                3,528
Investment management fee                           6            (221)               (206)                (396)
Other expenses                                      7            (703)               (174)                (322)

Net revenue before finance costs and taxation                   1,104               1,472                2,810
Interest payable and similar charges                              (11)                (11)                 (22)

Revenue on ordinary activities before taxation                  1,093               1,461                2,788
Taxation on ordinary activities                                  (486)               (398)                (640)

Revenue on ordinary activities after taxation                     607               1,063                2,148
Dividend in respect of equity shares                3               -                   -               (2,015)

Transfer to reserves                                              607               1,063                  133

Return per ordinary share                                       2.41p               4.22p                8.53p

Dividend per ordinary share                                         -                   -                8.00p


STATEMENT OF TOTAL RETURN PER ORDINARY SHARE

                                                             Six months         Six months                  Year
                                                                  ended              ended                 ended
                                                                30 June            30 June           31 December
                                                                   2003               2002                  2002
                                                            (unaudited)        (unaudited)             (audited)

Earnings                                                          2.41p              4.22p                 8.53p
Capital return                                                   11.43p            (20.20p)              (48.01p)

Total return                                                     13.84p            (15.98p)              (39.48p)


BALANCE SHEET
as at 30 June 2003

                                                                 30 June             30 June        31 December
                                                                    2003                2002               2002
                                                                   £'000               £'000              £'000
                                                             (unaudited)         (unaudited)          (audited)

Fixed assets
Investments
- Listed at mid-market valuation                                   9,464              10,809              5,112
- Unquoted at directors' valuation                                67,016              44,794             62,559
                                                                  76,480              55,603             67,671

Current assets
Debtors                                                            4,444               3,531              3,881
Government securities                                              6,658              33,135             13,843
Cash                                                                 588                 108              1,031
                                                                  11,690              36,774             18,755

Creditors - amounts falling due within one year                     (848)               (607)            (2,589)

Net current assets                                                10,842              36,167             16,166

Net assets                                                        87,322              91,770             83,837


Capital and reserves
Called up share capital                                           6,296               6,296               6,296
Share premium account                                            14,123              14,123              14,123
Capital redemption reserve                                        1,248               1,248               1,248
Capital reserve - realised                                       76,895              80,599              78,079
Capital reserve - unrealised                                    (14,997)            (14,576)            (19,059)
Revenue reserve                                                   3,757               4,080               3,150

Total equity shareholders' funds                                 87,322              91,770              83,837

Net asset value per ordinary share                               346.7p              364.4p              332.9p


SUMMARISED CASH FLOW STATEMENT
for the six months to 30 June 2003


                                                            Six months          Six months                  Year
                                                                 ended               ended                 ended
                                                               30 June             30 June           31 December
                                                                  2003                2002                  2002
                                                                 £'000               £'000                 £'000
                                                           (unaudited)         (unaudited)             (audited)

Net cash flow from operating activities                           (490)              1,821                 2,161

Returns on investment and servicing of finance                      35                   9                    (7)

Taxation received                                                  470                  82                   383

Capital expenditure and financial investment
  Purchase of fixed asset investments                           (7,715)             (3,212)              (24,033)
  Proceeds from the sale of fixed asset investments              2,295              18,069                20,246

Equity dividends paid                                           (2,015)             (2,015)               (2,015)

Management of liquid resources                                   6,977             (14,959)                3,983

(Decrease)/increase in cash                                       (443)               (205)                  718



Reconciliation of net return before finance costs and taxation to net cash flow 
from operating activities

                                                            Six months          Six months                  Year
                                                                 ended               ended                 ended
                                                               30 June             30 June           31 December
                                                                  2003                2002                  2002
                                                                 £'000               £'000                 £'000
                                                           (unaudited)         (unaudited)             (audited)

Net return before finance costs and taxation                     1,104               1,472                 2,810

Investment management fee and finance costs                      (696)               (651)               (1,253)
  charged to capital

Interest receivable                                                (46)                 (9)                  (15)

(Increase)/decrease in accrued income                           (1,000)              1,027                   357

Increase/(decrease) in creditors                                    90                 (24)                  (56)

Effective yield adjustment                                         199                 486                   832

Tax on investment income included within gross
  income                                                          (141)               (480)
                                                                                                            (514)

Net cash flow from operating activities                           (490)              1,821                 2,161



NOTES TO THE INTERIM ANNOUNCEMENT

1.   Principal activity

     The principal activity of the Company is that of an investment company 
     within the meaning of section 266 of the Companies Act 1985.

2.   Basis of preparation

     The interim financial statements have been prepared on the basis of the 
     accounting policies set out in the Company's financial statements for the 
     year ended 31 December 2002.  Income and operating expenses have been 
     recognised in accordance with the same principles used in the preparation 
     of the annual financial statements. The taxation charge has been calculated 
     by applying an estimate of the annual effective tax rate to the profit for 
     the period.
     
3.   Dividend

     It is intended that dividends will be declared and paid annually in respect 
     of each accounting period.  A dividend of 8.00p per share, declared as a 
     final dividend, was paid on 1 May 2003 in respect of the year ended 31 
     December 2002.
     
4.   Issued share capital

     There were 25,186,755 ordinary shares in issue for the six months to 30 
     June 2003 (31 December 2002: 25,186,755).
     
5.   Income

                                                            Six months          Six months                Year
                                                                 ended               ended               ended
                                                               30 June             30 June         31 December
                                                                  2003                2002                2002
                                                                 £'000               £'000               £'000
                                                           (unaudited)         (unaudited)           (audited)

  Income from investments
  UK unquoted investment income                                  1,724               1,235               2,209
  UK listed dividends                                                -                 128                 193
  Overseas listed dividends                                         25                  14                  26

                                                                 1,749               1,377               2,428

  Other income
  Gilt interest                                                    233                 465               1,060
  Deposit interest                                                  46                   9                  15
  Other fees                                                         -                   1                  25

                                                                   279                 475               1,100

  Total income                                                   2,028               1,852               3,528
     

6.   Investment management fee

                                            Revenue                                  Capital
                             Six months    Six months         Year     Six months    Six months          Year
                                  ended         ended        ended          ended         ended         ended
                               30.06.03      30.06.02     31.12.02       30.06.03      30.06.02      31.12.02
                                  £'000         £'000        £'000          £'000         £'000         £'000
                            (unaudited)   (unaudited)    (audited)    (unaudited)   (unaudited)     (audited)

Investment
management fee                      188           175          337            565           526         1,010           
                                                                                      
Irrecoverable VAT
thereon                              33            31           59             99            93           177           
    
                                    221           206          396            664           619         1,187


The investment management fee is levied quarterly in arrears and is charged 25%
to the revenue account and 75% to capital reserve - realised.

7.     Other expenses

                                                              Six months           Six months                Year
                                                                   ended                ended               ended
                                                                 30 June              30 June         31 December
                                                                    2003                 2002                2002
                                                                   £'000                £'000               £'000
                                                             (unaudited)          (unaudited)           (audited)

Custodian and administration fees                                     53                   60                 116
Reorganisation costs                                                 522                    -                   -
Other administration costs                                           128                  114                 206

                                                                     703                  174                 322
8.   Capital commitments
     
     As at 30 June 2003 the Company was committed to further investments of 
     £1,734,000 (31 December 2002: £3,275,000).

     9.   New management arrangements and implementation of a limited 
     partnership structure

     At an extraordinary general meeting held on 29 April 2003, shareholders 
     approved proposals to introduce new management arrangements and the 
     implementation of a limited partnership structure to hold the Company's 
     non-cash portfolio.

     Details of the new management fee, together with the partnership profit 
     share arrangement, were set out in the Chairman's letter to shareholders 
     dated 4 April 2003 and will be disclosed in the Company's annual report for 
     the year ending 31 December 2003.
     
10.  Publication of non-statutory accounts

     The financial information contained in this interim report does not 
     constitute statutory accounts as defined in section 240 of the Companies 
     Act 1985.  The financial information for the six months ended 30 June 2002 
     and 2003 has not been audited.

     The information for the year ended 31 December 2002 has been extracted from 
     the latest published audited financial statements, which have been filed 
     with the Registrar of Companies.  The report of the independent auditor on 
     those accounts contained no qualification or statement under sections 237
     (2) or (3) of the Companies Act 1985.
     
11.  Annual results

     The Board expects to announce the results for the year ending 31 December 
     2003 at the end of February 2004.  The annual report should be available by 
     mid-March 2004, with the Annual General Meeting being held in April 2004.

Third Floor, Minerva House
3-5 Montague Close
London SE1 9BB

2 September 2003



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