Final Results

Polar Capital Technology Trust PLC
15 June 2004



                       POLAR CAPITAL TECHNOLOGY TRUST PLC
         Unaudited Preliminary Results for the year ended 30 April 2004

                                                                    15 JUNE 2004

HIGHLIGHTS

   • Net assets per share rose by 40.3%

   • Technology shares outperformed in all markets reflecting a very rapid
     recovery in profits

   • Corporate fundamentals in the technology industry continue to improve

   • Recovering capital spending should drive strong technology earnings
     growth throughout 2004

   • We believe that the technology sector remains unique in its longer term
     ability to deliver creativity and profitable growth


FINANCIAL                   30 April 2004         30 April 2003       Change %

Total net assets             £306,636,000          £221,022,000           38.7

Net assets per share
Undiluted                           208.1p                148.3p          40.3
Fully diluted                       193.7p                141.3p          37.1

Price
per ordinary share                 164.75p                120.5p          36.7
per warrant                         64.75p                27.25p         137.6




For further information please contact:

Brian Ashford-Russell                         Jacqui Graves / Peter Binns
Polar Capital Technology Trust PLC            Binns & Co. PR Ltd.
Director and fund manager                     Tel: [phone]
Tel: [phone]                            E.mail: [e-mail]
www.polarcapitaltechnologytrust.co.uk         [e-mail]




Chairman's Statement:

Following the three years of relentless downward pressure on share prices, the
year ending 30 April 2004 provided welcome relief. Stock markets around the
world have enjoyed a synchronised recovery and technology shares have been to
the fore of a pronounced cyclical upturn. Over the year, the FTSE World Index
rose by 17.9%, the Dow Jones World Technology Index by 19.4% and our benchmark
by 37.5%. Our undiluted net assets per share rose by 40.3%, making the year a
reasonably satisfactory one.

The Company's performance benefited from a timely increase in our Asian exposure
last May and from good relative performance in that region. Elsewhere, our
returns were closer to the benchmarks - slightly behind in North America but
usefully ahead in Europe. Partial currency hedging both of the dollar and the
yen helped to reduce the impact of sterling's strength over the period.

The global economic recovery that we have enjoyed over the last year has been
supported by an interest rate environment designed with the fear of deflation in
mind. Monetary policy has been loose and liquidity abundant, particularly so in
Asia. Fiscal restraint has not been evident and both government and consumer
debt has continued to mount. In the USA, the speed of the cyclical upturn has
surprised many. However, the combination of a Federal Reserve determined not to
repeat the mistakes of its Japanese counterpart in the early 1990s and a
President intent on ensuring an economy conducive to his re-election has
resulted in a period of growth more akin to that of the late 1990s. Europe has
not benefited from the same reflationary focus and this, in combination with the
continuing structural issues facing many of its larger economies, has produced
an economic performance that would be kindly described as sluggish. In contrast,
Asian growth has been little short of dramatic with Chinese expansion
breath-taking and Japan finally showing signs of emerging from its long economic
torpor.

An improving demand environment has been greeted by a corporate sector, almost
emaciated after three years of constant cost-cutting. The result has been a
period of outstanding profits growth which has enabled a remarkable recovery in
corporate cash flows and a dramatic improvement in balance sheets. In many of
the major economies, corporate profits as a share of GDP have risen to levels
unsurpassed in the last three decades.

Against such a background and with both cash and bonds offering relatively
unexciting returns, it is not surprising that money has flowed back into
equities. The last year has been notable for the re-emergence of investors'
appetite for risk, a development that has favoured asset classes such as Asian
equities and technology shares. The latter have also benefited from a cyclical
upturn. Indeed, expenditure on technology as a percentage of US nominal capital
expenditure rose to 54.7% in fourth quarter of 2003, well above the level of
2000. The fact that this trend has been accompanied by a remarkable and almost
unprecedented growth in US productivity suggests a causal relationship that is
at the very heart of the long term bull case for technology investment.

Technology shares out-performed in all markets and benefited from their
exceptionally rapid recovery in profitability. Much of the earnings growth that
the sector has delivered over the last year has derived from cost cutting and it
is only in the last few quarters that much has been contributed by top-line
growth. Within the technology sector, the most prominent recovery has been in
the telecommunications industry, the source of a good deal of the industry's
woes over the last few years. However, other areas such as semiconductors,
medical technology and the internet all produced outstanding returns. By region,
Asia and the UK topped the performance table while, in every market, smaller
companies markedly outperformed.

Throughout most of the year, the Company remained fully invested but our growing
concern that shares prices were moving ahead of fundamentals led us to raise
some liquidity in the first quarter of 2004. Although economic recovery has
gathered momentum in recent months, the corollary of this development is a
tightening of the credit cycle. As yet, it is unclear just how rapidly interest
rates will need to be raised in the USA but memories of 1994 remain fresh in our
minds and are likely to act as a dampener on investors' appetite for risk. There
are also growing concerns about the consequences of a slowdown in China which
has been such a critical driver of growth in both the Asian and the global
economies. Together with continuing geopolitical issues, the recessionary impact
of record oil prices and uncertainty ahead of the US Presidential election later
this year, there is plenty to keep investors on their toes. Against these
potential negatives can be balanced continuing strong profits growth, an
acceleration in capital spending and valuations which, although high in absolute
terms, appear inexpensive relative to bonds. With share prices now some way back
from their recent highs, the arguments have become more finely balanced.

From a technology investor's perspective, the issues are similar. The industry
has enjoyed a strong cyclical recovery but is likely to see diminishing earnings
momentum in the second half of this year. However, capital spending can be
expected to show positive trends as we move through 2004 and earnings growth
remains well above that of the market as a whole. We continue to believe that a
secular bull market of the sort that characterised the 1990s is still some years
away but, as we wrote last year, the deflation of the bubble that marked the end
of that decade has been completed. We expect a volatile market over the next
year but one in which individual technology shares can do well. We intend to use
any further pronounced weaknesses to reduce our liquidity. Over the medium term,
we intend to continue the reorientation of our portfolio eastwards and, once the
credit tightening cycle is more mature, extend our exposure to the lower
capitalisation tiers of the market from where we expect many of the major
winners of the next secular wave in technology to emerge.

With the deflation of the technology bubble and the consequent diminution in the
popularity of technology investment, there has been a widening in the discount
to net asset value at which our shares trade. Such cyclical fluctuations in the
discounts of specialist investment trusts are not unusual and can create
opportunity. We have begun a share buy-back programme which enhances the net
asset value of each outstanding share. As at 30 April, 2,850,000 shares had been
purchased and cancellation and a further 2,382,000 shares have been purchased
and cancelled since then. The total number of shares purchased to date is
5,232,000 representing 3.5% of the shares in issue at our last half year end.

It is now four years on from the unbridled optimism that accompanied the
technology sector's peak in early 2000. Although the period since then has been
difficult for investors, there can be little doubt that the industry is now a
good deal leaner and fitter than it was back then. Over the long term we believe
that the technology sector remains unique in its ability to deliver creativity
and profitable growth.

R K A Wakeling,
Chairman
14 June 2004




GROUP STATEMENT OF TOTAL RETURN for the year ended 30 April 2004
(INCORPORATING THE REVENUE ACCOUNT)

                              Unaudited                      Audited
                       Year ended 30 April 2004     Year ended 30 April 2003
                      Revenue   Capital    Total   Revenue   Capital     Total
                        £'000     £'000    £'000     £'000     £'000     £'000

Total capital
gains/(losses) from
investments                 -    85,675   85,675         -   (65,865)  (65,865)
Repurchase of
warrants                    -        (8)      (8)        -        71        71
Income from fixed
asset investments       1,828         -    1,828     2,092         -     2,092
Other interest
receivable and
similar income            888         -      888       891         -       891
Gross revenue and
capital gains/          2,716    85,667   88,383     2,983   (65,794)  (62,811)
(losses)
Management fee         (2,098)        -   (2,098)   (1,611)        -    (1,611)
Other administrative
expenses                 (586)        -     (586)     (601)        -      (601)
Net return on
ordinary activities
before interest
payable and taxation       32    85,667   85,699       771   (65,794)  (65,023)
Interest payable and
similar charges          (569)        -     (569)     (567)        -      (567)
Net (loss)/returnon
ordinary activities
before taxation          (537)   85,667   85,130       204   (65,794)  (65,590)
Taxation on ordinary
activities               (143)        -     (143)     (134)        -      (134)
Net (loss)/return
on ordinary
activities after
taxation                 (680)   85,667   84,987        70   (65,794)  (65,724)

(Loss)/return per
ordinary share (p)
Basic                   (0.45)p   57.26p   56.81p     0.05p   (44.16p)  (44.11p)

Fully diluted           (0.43)p   54.14p   53.71p     0.05p   (42.71p)  (42.66p)


The revenue columns of this statement represent the revenue accounts of the
Group.




GROUP BALANCE SHEET at 30 April 2004

                                                    Unaudited         Audited
                                                30 April 2004   30 April 2003
                                                        £'000           £'000
Fixed asset investments
Listed at market value:
United Kingdom                                         36,280          21,738
Overseas                                              235,562         194,672
                                                      271,842         216,410

Unlisted at directors' valuation:
United Kingdom                                            842             444
Overseas                                                    -               -
                                                      272,684         216,854

Current assets
Investments                                             1,563               -
Debtors                                                34,569          51,761
Cash                                                   74,254          36,760
                                                      110,386          88,521

Creditors: amounts falling due within one year        (41,840)        (73,336)

Net current assets                                     68,546          15,185

Total assets less current liabilities                 341,230         232,039
Creditors: amounts falling due after more than
one year                                              (34,594)        (11,017)

Total net assets                                      306,636         221,022

Capital and reserves
Called up share capital                                36,832          37,250
Capital redemption reserve                                713               -
Share premium                                          88,842          87,959
Warrant reserve                                         7,147           8,070
Warrant exercise reserve                                  940             568
Other capital reserves                                226,504         140,837
Revenue reserve                                       (54,342)        (53,662)
Equity shareholders' funds                            306,636         221,022

Net asset value per ordinary share
Undiluted                                              208.13p         148.34p

Diluted                                                193.71p         141.25p




GROUP CASH FLOW STATEMENT for the year ended 30 April 2004

                                    Unaudited   Unaudited    Audited   Audited
                                         2004        2004       2003      2003
                                        £'000       £'000      £'000     £'000
Net cash (outflow)/inflow from
operating activities                               (2,521)                  32
Servicing of finance

Bank and loan interest paid              (634)                  (478)

Net cash outflow from servicing of
finance                                              (634)                (478)

Taxation
UK tax recovered                            -                      -
Overseas withholding tax recovered          -                     10

Net tax recovered                                       -                   10

Financial investment
Purchase of investments              (306,715)              (267,145)
Sale of investments                   332,899                265,702
Gain from forward foreign currency
contracts                               6,879                  2,333

Net cash inflow from financial
investment                                         33,063                  890

Net cash inflow before financing                   29,908                  454

Financing
Proceeds from exercise of warrants      1,178                      5
Repurchase of warrants                   (559)                  (418)
Repurchase of shares                   (4,759)                     -
Loans taken out                        45,410                      -
Loan matured                          (31,196)                     -

Net cash inflow/(outflow) from
financing                                          10,074                 (413)

Increase in cash                                   39,982                   41

Reconciliation of net cash flow to movement in net funds

Increase in cash as above                                    39,982         41
Movement in long term loans                                 (14,214)         -
Change in net funds resulting from cash flows                25,768         41
Exchange movements                                           (1,544)      (372)
Net movement in the year                                     24,224       (331)
Net funds at 1 May                                            4,705      5,036
Net funds at 30 April                                        28,929      4,705




Notes:
     
1.   Loss)/Return per ordinary share

Revenue (loss)/return per ordinary share is based on the net loss after taxation
attributable to the ordinary shares of £680,000 (2003:return:£70,000) and on
149,607,557 (2002:148,998,143) ordinary shares, being the weighted average
number of shares in issue during the year.

Basic capital return/(loss) per ordinary share is based on net capital gains of
£85,667,000 (2003:net capital loss:£65,794,000) and the weighted average number
of shares in issue during the year as shown above.

The calculations of the fully diluted revenue and capital returns per ordinary
share are carried out in accordance with Financial Reporting Standard No.14
Earnings per Share (FRS 14). For the purposes of calculating diluted revenue and
capital returns per share, the number of shares is the weighted average used in
the basic calculation plus a number of shares deemed to be issued for no
consideration on exercise of all warrants, by reference to the average price of
the ordinary shares during the year. The calculations indicate that the exercise
of warrants would result in an additional weighted average number of shares of
8,636,006 (2003: 5,032,510) resulting in a total weighted average number of
shares of 158,243,563 (2003: 154,030,653).

     
2.   2003 Accounts
The figures and financial information for the period ended 30 April 2002 are an
extract of the latest published accounts of the Group and do not constitute the
statutory accounts for that year. Those accounts have been delivered to the
Registrar of Companies and included the report of the auditors which was
unqualified and did not contain a statement under either section 237(2) or
section 237(3) of the Companies Act 1985.


3.   2004 Accounts

The preliminary figures for the year ended 30 April 2004 are an extract from the
Group's accounts for that period and do not constitute the statutory accounts
for that year. These accounts have not yet been delivered to the Registrar of
Companies, nor have the Auditors yet reported on them.


4.   Reconciliation of operating revenue to net cash (outflow)/inflow from 
     operating activities

                                                    Unaudited         Audited
                                                30 April 2004   30 April 2003
                                                        £'000           £'000

Net result before interest payable and
taxation                                                   32             771
Increase in current asset investments                  (1,563)              -
(Increase)/decrease in accrued income                     (90)            101
Increase in other debtors                                 (33)            (48)
Decrease/(increase) in other creditors                   (335)            158
Capital dividends                                          19               -
Overseas withholding tax suffered                        (145)           (129)
Script dividends included in investment income           (133)            (59)
Interest accumulations included in investment
income                                                   (273)           (762)
Net cash (outflow)/inflow from operating
activities                                             (2,521)             32


     
5.   Basis of consolidation

The Group accounts consolidate the accounts of the Company and its wholly owned
subsidiary undertaking, PCT Finance Limited.


6.   Copies of Report and Accounts

The full annual report and accounts will be posted to shareholders in late June
2004 and copies will be available thereafter from the Company Secretary at the
Company's Registered Office, Cayzer House, 30 Buckingham Gate, London SW1E 6NN
(020 7592 1500).


7.   Annual General Meeting

The Annual General Meeting will be held at 12.30 pm on Friday 23 July 2003 at
The Offices of UBS Investment Bank, Finsbury Avenue, London EC2M 2PP.



                      This information is provided by RNS
            The company news service from the London Stock Exchange