Interim Results

Elderstreet Downing VCT PLC
30 August 2002

ELDERSTREET DOWNING VCT PLC



INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2002



CHAIRMAN'S STATEMENT

General economic conditions have continued to be challenging throughout the six
month period ended 30 June 2002, with most major world stock market indices
recently falling to new five year lows.  The climate for small and unquoted
companies, which is the focus of this Company's investment strategy, has changed
dramatically since launch.  In many cases, companies within the portfolio have
had to adapt their strategies to be able to make progress during these testing
times.



Net Asset Value

At 30 June 2002, the Net Asset Value ('NAV') per share stood at 71.9p, a fall of
2.3p compared to the NAV per share at the previous year end before taking into
account the interim dividend described below.



The greatest contribution to the fall in NAV has been the investment in Topnotch
Health Clubs plc.  This AIM quoted company has seen a steady fall in its share
price over the period, equivalent to a fall in the NAV of £324,000, or 2.1p per
share.    Another AIM investment, Software for Sport Plc, has seen a fall in
value of £41,000.  Unfortunately there has been little opportunity to alleviate
these losses due to the lack of liquidity on AIM.



The Directors have reviewed the unquoted portfolio and made some adjustments to
valuations.  The most significant adjustment has been in respect of the
investment in European Telecommunications and Technology plc, which has been
valued on the basis of investments made by third parties during a recent
fundraising.  This has given rise to an increase in valuation of £198,000 over
the previous carrying value.



As the Company revoked Investment Company status in 2000, it must present its
results as a Profit and Loss Account rather than a Statement of Total Return.
The loss on ordinary activities after taxation for the period was £291,000.
Total recognised losses for the period (which includes revaluations of a
non-permanent nature) were £360,000.



Venture capital investments

During the period the Company made one full and three partial disposals of
investments producing a net profit of £131,000 against original cost or £50,000
against the previous carrying value. The most significant disposal was the
partial realisation of the investment in Inter Link Foods plc, which gave rise
to a gain of £59,000 against the valuation at 31 December 2001 or £268,000
against original cost.



The Company has also made one new investment of £87,500 in Glisten plc, a
speciality food business listed on AIM. Four follow-on investments were also
made totalling £586,000.



Dividend

An interim dividend of 1.5p per share (2001 - 1.5p) will be paid on 27 September
2002 to shareholders on the register at 13 September 2002.



Repurchase of shares

The Directors are conscious that the Company's share price is affected by the
illiquidity of its shares in the market resulting from the requirement that
shareholders must retain their shares at least five years in order to retain
their tax benefits.



The Directors are continuing to monitor the market in the Company's shares and
will make share purchases when appropriate.



Publication of share price

The Company's share price is quoted in the Financial Times on a daily basis and
can be found within the 'Investment Companies' sector.



Outlook

Although in the recent periods the NAV has fallen, this is in line with the
trend exhibited by the main stock market indices and many other venture capital
trusts.  After taking into account the forthcoming interim dividend, the Company
will have paid a total of 22.5p per share in tax-free dividends to shareholders,
which when added to the NAV gives a total return of 94.4p per share.  This
compares to an original investment net of income tax relief of 80p per share.



Unsurprisingly, most companies within the portfolio have felt the impact of the
difficult conditions over the past two years and some are currently struggling
to make satisfactory progress.  There are however early signs from a number of
investees that performance and prospects may be beginning to improve.  The
Investment Manager continues to closely monitor the portfolio and, in
particular, is seeking to ensure that good management is in place, which will be
able to fully develop the businesses and ultimately deliver good returns.



Although some funds are being used to support existing investments, the Company
still has in excess of £3 million in cash and fixed interest securities.  It is
therefore in the position of being able to invest in suitable new opportunities
and take advantage of the generally depressed prices that are now available.



David Brock

Chairman





UNAUDITED SUMMARISED BALANCE SHEET

as at 30 June 2002


                                                       30 June        30 June        30 Dec
                                                          2002           2001          2001
                                                         £'000          £'000         £'000
Fixed assets
Venture capital investments                              7,742         12,721         7,994
Listed fixed income investments                            821          1,438         1,439

                                                         8,563         14,159         9,433

Net current assets                                       2,288            949         2,003

Net assets                                              10,851         15,108        11,436

Capital and reserves
Called up share capital                                    754            755           754
Capital redemption reserve                                   3              3             3
Revaluation reserve                                        504          2,964           661
Special reserve                                          9,590         11,386        10,018

Total equity shareholders' funds                        10,851         15,108        11,436

Net asset value per share                                71.9p         100.1p         75.7p





UNAUDITED PROFIT AND LOSS ACCOUNT

for the six months ended 30 June 2002


                                                       Six       Six         Year
                                                    months    months
                                                     ended     ended        ended
                                                   30 June   30 June       31 Dec

                                                      2002      2001         2001
                                                     £'000     £'000        £'000

Investment income                                      197       228          437
Investment management fees                           (106)     (131)        (244)
Other expenses                                       (102)     (117)        (230)
Operating loss                                        (11)      (20)         (37)

Net movement on permanent diminution provision       (322)      (59)      (1,739)
Profit on realisation of investments                    44       180          550
(Loss)/profit on ordinary activities before          (289)       101      (1,226)
taxation

Tax on ordinary activities                             (2)       (1)          (1)
(Loss)/profit on ordinary activities after           (291)       100      (1,227)
taxation

Dividends                                            (226)     (227)        (528)

Retained loss for period                             (517)     (127)      (1,755)

(Loss)/earnings per share                           (1.9p)      0.7p       (8.1p)



All revenue and capital items in the above statement derive from continuing
operations.



The Company has only one class of business and derives its income from
investments made in shares, securities and bank deposits.



The comparative figures were in respect of the six months ended 30 June 2001 and
the year ended 31 December 2001 respectively.





STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

for the six months ended 30 June 2002
                                                      £'000    £'000    £'000

(Loss)/profit on ordinary activities after taxation   (291)      100  (1,227)
Net movement on permanent diminution provision          322       59    1,739
Total unrealised (losses) on revaluation of           (391)    (117)  (3,876)
investments
Total recognised losses for the period                (360)       42  (3,364)

Recognised gains brought forward                        181    3,545    3,545

Recognised (losses)/gains carried forward             (179)    3,587      181





UNAUDITED CASHFLOW STATEMENT

for the six months ended 30 June 2002


                                                        Six        Six
                                                     months     months      Year
                                                      ended      ended     ended
                                                    30 June    30 June    31 Dec
                                                       2002       2001      2001
                                                      £'000      £'000     £'000
Cash outflow from operating activities and returns
on investments (See note 1 below)                        88         88       223

Capital expenditure

Purchase of venture capital investments               (586)      (516)     (724)

Proceeds on disposal of listed fixed income             600          -         -
securities

Proceeds on disposal of venture capital investments     508        751     2,347

Net cash inflow from capital expenditure                522        235     1,623



Equity dividends paid                                 (302)      (302)     (531)



Net cash inflow/ (outflow) before financing             308         21     1,315


Financing

Purchase of own shares                                    -       (17)      (17)
Net cash inflow from financing                            -       (17)      (17)


Increase in cash (See note 2 below)                     308          4     1,298

Notes to the cashflow statement:


1  Cash outflow from operating activities and
returns on investments
Operating (loss)/profit                                (11)       (20)      (37)
Decrease / (increase) in other debtors                  112        134       288
(Increase)/decrease in other creditors                 (13)       (26)      (28)
  Net cash (outflow) from operating activities           88         88       223

2  Analysis of net funds
Beginning of period                                   2,112        814       814
Net cash inflow                                         308          4     1,298
End of period                                         2,420        818     2,112





SUMMARY OF INVESTMENT PORTFOLIO

as at 30 June 2002
                                              Cost     Valuation        % of
                                                                   portfolio
                                             £'000         £'000    by value
Top ten venture capital investments
European Telecommunications &                  450         1,121       13.1%
Technology plc
Software for Sport plc *                     1,219           853       10.0%
Wessex Advanced Switching Products             375           610        7.1%
Limited
Conquest Network Management Limited            796           590        6.9%
Berkeley Scott Group plc                       900           507        5.9%
Henry J Bean's Group plc                       500           500        5.8%
Ford Packaging Systems Limited                 200           467        5.5%
Qube Strategic Marketing Limited               292           455        5.3%
U M (Holdings) plc                             370           370        4.3%
Topnotch Health Clubs plc *                    950           355        4.1%
                                             6,052         5,828       68.0%

Other venture capital investments            3,885         1,914       22.4%

Listed fixed income securities
Tesco 83/4% 2003                               864           821        9.6%

Total investments                           10,801         8,563      100.0%



All venture capital investments are unquoted unless otherwise stated.



* - Quoted on the Alternative Investment Market ('AIM')



NOTES

1.  The above financial information has been prepared on the basis of the
accounting policies set out in the Annual Report.



2.  The calculation of the earnings per share for the period is based upon the
net loss after tax of £291,000 divided by the weighted average number of shares
in issue during the period of 15,097,500.



3.  The unaudited financial statements set out herein do not constitute
statutory accounts within the meaning of Section 240 of the Companies Act 1985
and have not been delivered to the Registrar of Companies.  The figures for the
year ended 31 December 2001 have been extracted from the financial statements
for that year, which have been delivered to the Registrar of Companies; the
auditors' report on those financial statements was unqualified.



4.  Copies of the unaudited interim results will be sent to shareholders
shortly. Further copies can be obtained from the Company's Registered Office.


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