Final Results

Northern Venture Trust PLC
9 November 2000

NORTHERN VENTURE TRUST PLC

9 NOVEMBER 2000

PRELIMINARY ANNOUNCEMENT OF RESULTS
FOR THE YEAR ENDED 30 SEPTEMBER 2000

HIGHLIGHTS OF THE YEAR:

  * Net assets up from £33.6 million to £54.0 million
  * Net asset value per share up by 46% to 131.8p
  * Earnings per share 14.7p against loss of 4.0p in previous year
  * First distribution of realised capital gains proposed
  * Total dividend up from 2.2p to 8.0p
  * Share price up by 65% to 120p

The Chairman of Northern Venture Trust PLC, Professor Sir Frederick Holliday
CBE, included the following points in his statement to shareholders:

  * The encouraging progress reported in the interim statement to
    shareholders has been maintained during the second half of the financial
    year. We have achieved our key objective of realising sufficient
    investment gains to propose a final dividend which for the first time
    includes an element of capital distribution. We have also achieved a
    substantial increase in net asset value through unrealised investment
    gains, creating the potential for further distributions in the future.
  * The net asset value (NAV) at 30 September 2000 was 131.8p per share, an
    increase of 46% over the corresponding figure of 90.1p at 30 September
    1999. Over the same period the FTSE All-Share index rose by 7.2% and the
    FTSE Small Cap (excluding Investment Companies) index by 26.9%. The NAV is
    stated after providing for the proposed final dividend referred to below.
  * In order legally to distribute realised capital gains by way of dividend
    to shareholders, it has been necessary for the company to revoke its
    status as an investment company as defined in the Companies Act 1985. One
    consequence of this is that we are now required to produce a single-column
    'trading company' profit and loss account, incorporating all of the
    company's investment income, management expenses and realised capital
    gains, rather than the statement of total return, customarily published by
    investment trusts, which we have produced in previous years. The profit
    and loss account includes realised gains and losses on investments
    although, in accordance with generally accepted accounting principles,
    such gains/losses are calculated by reference to the last published
    valuation of the investment rather than its original cost.
  * Investment income and management expenses were both at a similar level
    to the preceding year. Income from the venture capital portfolio increased
    from £694,000 to £1,073,000, but this was offset by the expected reduction
    in income from the fixed-interest portfolio. After providing for
    corporation tax on the excess of taxable investment income over allowable
    expenses, earnings per share amounted to 14.7p against the preceding
    year's loss of 4.0p. The directors recommend a final dividend of 7.0p per
    share, making a total of 8.0p for the year (last year 2.2p). Subject to
    Inland Revenue approval, the final dividend will be paid on 15 December
    2000 to shareholders on the register on 24 November 2000.
  * Taking the proposed final dividend into account, subscribers in the
    original share issue in 1995 will have received cash dividends (including
    repayable tax credits) of 21.525p per share. An investor claiming initial
    income tax relief at 20% and capital gains tax deferral at 40% will
    therefore have received over half his net investment back by way of
    dividend, whilst retaining shares with an underlying net asset value of
    131.8p per share. The directors intend that the investment portfolio will
    continue to be managed with a view to generating capital gains for
    distribution.
  * Additions to venture capital investments during the year amounted to
    over £10 million and sale proceeds - mainly resulting from the placing of
    shares in IndigoVision Group and BioFocus at the time of their respective
    flotations on the London Stock Exchange and AIM - were over £9 million. At
    30 September 2000 the venture capital portfolio comprised 51 holdings with
    an aggregate value of £41.3 million. Our surplus funds have remained in
    Government stocks and other high-grade fixed-interest securities, with a
    view to protecting capital value and maximising income yield.
  * The board has continued, with the assistance of Northern Venture
    Managers and KPMG, to monitor the company's compliance with the qualifying
    investment requirements laid down in the VCT legislation. The Inland
    Revenue have confirmed, subject to completion in due course of their
    normal detailed verification work, that the company has continued to
    maintain the required level of qualifying investments in the period up to
    30 September 2000.
  * The mid-market share price, which began the year at 721/2p, increased in
    response to the improved performance of the company and reached 120p by 30
    September 2000. The number of shares traded in the market remained
    relatively low, but buyers have emerged for those shares which became
    available and the directors have had little occasion to use their
    authority to buy back shares in the market for cancellation. With the
    passing of the fifth anniversary of the original share issue in November
    1995, it is possible that greater numbers of shares will be offered to the
    market and we are ready to use our buy-back powers as necessary. However
    we expect that many shareholders will decide to retain their shares for
    the longer term in order to derive full benefit from the company's
    maturing investment portfolio, in terms both of dividend distributions and
    of further capital growth.
  * Our fifth anniversary is a suitable point at which to take stock of the
    company's position and prospects. The economic outlook for the UK remains
    broadly encouraging, though the strength of sterling remains a concern for
    many manufacturing businesses. Your company has a well-diversified
    investment portfolio, which has recently shown the benefits of a sensible
    level of exposure to early-stage high technology businesses. Northern
    Venture Managers, now becoming well established as part of the Edinburgh
    Fund Managers group, have continued to add to their investment team and
    are receiving a strong flow of new enquiries. A satisfactory progression
    in net asset value has been achieved over the past year, and we are about
    to pay our first dividend enhanced by the proceeds of realised capital
    gains. All of these are good grounds for taking a positive view of the
    future. Your directors would like to record their appreciation of the
    patience and support of shareholders and we look forward to reporting
    further progress in the new financial year.

The financial statements will show the results set out below:

PROFIT AND LOSS ACCOUNT
                                                    Year ended       Year ended
                                                  30 September     30 September
                                                          2000             1999
                                                                    (re-stated)
                                                          £000             £000
Profit/(loss) on disposal of investments      4,955            (1,971)
Investment income                             1,716            1,677
Investment management fee                     (858)            (837)
Other expenses                                (236)            (229)
                                              ---------------  ---------------
Profit/(loss) on ordinary activities before   5,577            (1,360)
tax
                                              (25)             (138)
Tax on profit/(loss) on ordinary activities   ---------------  ---------------
Profit/(loss) on ordinary activities after    5,552            (1,498)
tax
                                              (3,244)          (821)
Dividends                                     ---------------  ---------------
Retained profit/(loss) for the year           2,308            (2,319)
                                              ---------------  ---------------
Earnings/(loss) per share                                14.7p           (4.0)p


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
                                                   Year ended       Year ended
                                                 30 September     30 September
                                                         2000             1999
                                                         £000             £000
Profit/(loss) on ordinary activities after   5,552            (1,498)
tax
Unrealised gain/(loss)                       13,961           (1,223)
  on revaluation of investments              ---------------  ---------------
Total recognised gains and losses for the    19,513           (2,721)
year                                         ---------------  ---------------

BALANCE SHEET
                                         30 September 2000    30 September 1999
                                                                    (re-stated)
                                                      £000                 £000
Fixed asset investments:
  Venture capital investments         41,320               21,348
  Listed fixed-interest investments   7,808                9,248
                                      ---------------      ---------------
Total investments                     49,128               30,596
Net current assets                    4,916                3,048
                                      ---------------      ---------------
Net assets                            54,044               33,644
                                      ---------------      ---------------
Called-up equity share capital        10,254               9,330
Share premium                         13,668               10,457
Capital redemption reserve            1                    -
Revaluation reserve                   14,200               (41)
Profit and loss account               15,921               13,898
                                      ---------------      ---------------
Total equity shareholders' funds      54,044               33,644
                                      ---------------      ---------------
Net asset value per share                           131.8p                90.1p

CASH FLOW STATEMENT
                                             Year ended            Year ended
                                      30 September 2000     30 September 1999
                                                                  (re-stated)
                                        £000       £000       £000       £000
Operating activities:
Profit/(loss) on ordinary                    5,577                 (1,360)
activities before tax                        (541)                 234
(Increase)/decrease in debtors               25                    (37)
Increase/(decrease) in creditors             (4,955)               1,971
(Profit)/loss on disposal of                 -------               --------
investments
Net cash inflow from operating               106                   808
activities
Taxation: Corporation tax paid               (75)                  (328)
Financial investment:
Purchase of investments           (15,366)              (15,491)
Sale/repayment of investments     15,750                15,573
                                  --------              --------
Net cash inflow from financial               384                   82
investment
Equity dividends paid                        (895)                 (971)
Financing:
Issue of ordinary shares          4,254                 -
Share issue expenses              (118)                 -
Purchase of ordinary shares for   (5)                   -
cancellation                      --------              ---------
Net cash inflow from financing               4,131                 -

                                             ------                --------
Increase/(decrease) in cash at               3,651                 (409)
bank                                         ------                --------
Analysis of cash balance:
At 1 October 1999                            2,835                 3,244
Net cash inflow/(outflow) for the            3,651                 (409)
year                                         ------                --------
At 30 September 2000                         6,486                 2,835
                                             ------                --------

TEN LARGEST VENTURE CAPITAL INVESTMENTS AT 30 SEPTEMBER 2000
                                                      Valuation  % of portfolio
                                                           £000    by valuation
IndigoVision Group plc*                                  11,202            22.8
Alizyme plc**                                             3,407             6.9
BioFocus plc**                                            2,247             4.6
CGI International Limited                                 1,539             3.2
Remsdaq Limited                                           1,510             3.1
Claremont Business Environments (Europe)                  1,132             2.3
Limited                                                   1,000             2.0
TFB Group Limited                                         1,000             2.0
Tolwood Limited                                             995             2.0
Four D Rubber Company Limited                               901             1.8
XKO Group plc*                                  --------------- ---------------
Ten largest venture capital investments                  24,933            50.7
Other investments                                        24,195            49.3
                                                --------------- ---------------
Total investments                                        49,128           100.0
                                                --------------- ---------------
* Listed on London Stock Exchange
**Listed on Alternative Investment Market

The above summary of results for the year ended 30 September 2000 does not
constitute statutory financial statements within the meaning of Section 240 of
the Companies Act 1985 and has not been delivered to the Registrar of
Companies. Statutory financial statements will be filed with the Registrar of
Companies in due course; the auditors' report on those financial statements
under Section 235 of the Companies Act 1985 is unqualified and does not
contain a statement under Section 237(2) or (3) of the Companies Act 1985.

On 3 November 2000 the company revoked its status as an investment company as
defined by Section 266 of the Companies Act 1985 in order to permit the
distribution of capital profits. The financial statements therefore include a
statutory profit and loss account and a statement of total recognised gains
and losses in accordance with Schedule 4 of the Companies Act 1985 and
Financial Reporting Standard 3 'Reporting Financial Performance'. These
statements differ from the statement of total return presented in prior
periods in that (i) gains and losses on disposal of investments are now
included in the profit and loss account, (ii) unrealised gains and losses on
revaluation are taken direct to the revaluation reserve and included in the
statement of total recognised gains and losses, and (iii) all investment
management fees, other expenses and taxation are charged to the profit and
loss account.

The effect of the change in presentation has been to increase the profit on
ordinary activities after tax, equivalent to the revenue return on ordinary
activities after tax under the previous presentation, by £4,543,000 in respect
of the year ended 30 September 2000 and to reduce the corresponding figure in
respect of the year ended 30 September 1999 by £2,322,000, reflecting the gain
or loss on disposal of investments, investment management fees and other
expenses charged to the profit and loss account. In the balance sheet, the
revenue reserve, realised capital reserve and share purchase reserve presented
in prior periods have been combined into the profit and loss account. The
revaluation reserve records unrealised gains and losses on revaluation which
were previously included in the unrealised capital reserve.

The results for the year ended 30 September 1999 have also been re-stated in
accordance with Financial Reporting Standard 16 'Current Taxation' so as to
exclude tax credits totalling £70,000 on franked investment income which were
previously included both in investment income and in tax on ordinary
activities.

The proposed final dividend for the year ended 30 September 2000 will, subject
to approval by the Inland Revenue and by shareholders, be paid on 15 December
2000 to shareholders on the register at the close of business on 24 November
2000.

A copy of the full annual report and financial statements for the year ended
30 September 2000 is expected to be posted to shareholders on 13 November 2000
and will be available to the public at the registered office of the company at
Northumberland House, Princess Square, Newcastle upon Tyne NE1 8ER.



For further information contact:
Christopher Mellor                                      0191 244 6000
(Northern Investors Company PLC)
Neil Baldwin                                            0113 241 0130
(Brewin Dolphin Securities Ltd)