Annual Financial Report

 

TIDMAZD 
 
RNS Number : 2728T 
Allianz Dresdner End Pol Tst 2010 
24 September 2010 
 

            ` 
 
 
 
For immediate release 
                    24th September 2010 
 
                ALLIANZ DRESDNER ENDOWMENT POLICY TRUST 2010 plc 
 
                    Results for the year ended 30th June 2010 
 
The following comprises extracts from the Company's Annual Financial Report for 
the year ended 30th June 2010.  The full Annual Financial Report is available to 
be viewed on or downloaded from the Company's website at 
www.rcm.com/investmenttrusts.   Copies will be mailed to shareholders shortly. 
 
Chairman's Statement 
 
Performance 
The Company's Net Asset Value per ordinary share as at 30th June 2010 was 
120.2p per ordinary share compared to 112.4p per ordinary share at 30th June 
2009.  This represents an increase of 6.9% over the year.  Over the same period, 
the Company's share price increased from 104.5p to 112.75p, an increase of 7.9%. 
 
The Company had repaid all borrowings and had fixed interest securities and cash 
of GBP15.2 million, approximately 57% of net asset value, as at 30th June 2010. 
As it approaches the planned wind up date of 31st December 2010, the Company's 
liquid assets will increase as policies continue to mature.  Within guidelines 
established by the Board, the Managers will continue to invest the Company's 
cash in sterling deposits and high quality fixed interest securities, including 
government bonds, with a view to achieving a secure return for shareholders over 
the remainder of the Company's life. 
 
When the Company was launched in 1998, we followed a well established format 
that enabled investment in a portfolio with a broad spread of asset classes, 
with a particular emphasis on equities and commercial property.  There were the 
added benefits of underpinning provided by the sums assured and declared 
reversionary bonuses of policies bought by the Company and the return of 
investment profits by way of capital gain.  Little did we realise that we should 
see an unprecedented era of turbulence, not only in global economies and 
investment markets but also in the life insurance industry itself.    In 
practice, the underpinning has proved to be a key element of the Company's 
structure.  Although the return after 12 years has ultimately proved to be 
disappointing, at least we can look back on a number of key decisions that have 
had a significant favourable impact on the Company's performance:  in 
particular, our decisions to cease purchasing policies through gearing, to 
surrender polices that were likely to underperform in order to reduce and 
eventually eliminate gearing, and to hedge much of the interest earnings on 
deposits in 2010 at a time when interest rates were particularly favourable. 
 
We have been fortunate to have a Board which has worked well together and has 
devoted considerable time and effort to the Company's management.  We have been 
helped in our work by the Managers and our Investment Advisers, whose wise 
counsel has been gratefully received.   So, in this final Chairman's Statement I 
should like to thank them for all they have done for us and wish them well for 
the future. 
 
 
 
 
Return of Capital 
Shareholders will be aware that there is a requirement to liquidate the Company 
and return capital to shareholders on or shortly following 31st December 2010, 
unless alternative proposals are approved by shareholders at a general meeting 
of the Company prior to this date.  The Board has concluded that the Company 
should be placed into Members' Voluntary Liquidation in order to return capital 
to shareholders in an inexpensive and timely manner.  An Extraordinary General 
Meeting will thus be convened on 1st December 2010 at which the necessary 
Special Resolutions will be proposed.  As well as passing a Liquidation 
Resolution it will be necessary to amend the Articles of Association to allow 
the EGM to be held earlier than 31st December 2010.  A separate circular 
convening the meeting will be sent to shareholders later. 
 
 
Managers' Review 
 
Introduction 
The Company is managed with the objective of providing long-term capital growth 
by investing in a diversified portfolio of mid-term traded endowment policies. 
 
Net Asset Value 
The net asset value per ordinary share increased from 112.4p at 30th June 2009 
to 120.2p at 30th June 2010.   This represents an increase of 6.9% over the last 
twelve months and is based on Total Net Assets of GBP26.8 million (2009 - 
GBP25.1 million). 
The net asset value is calculated using the current estimated market value of 
the Company's investments. The valuation of endowment policies has been carried 
out by LPVC Limited under the supervision of the Actuarial Committee. The Board 
has determined that, in the absence of sufficient transactional data, the most 
appropriate basis of valuation of the Company's portfolio at 30th June 2010 is 
that of estimated surrender value. 
 
 
 
Projected Final Net Asset Values 
Projected final net asset values as at 30th June 2010 are given in the table 
below. 
+------------------+----------+----------+----------+----------+ 
|                  |          |          |          |          | 
|                  |  150%    |  100%    |   50%    |    No    | 
|                  | Current  | Current  | Current  | Further  | 
|                  |  Bonus   |  Bonus   |  Bonus   | Bonuses  | 
|                  |  Rates   |  Rates   |  Rates   |          | 
|                  |          |          |          |          | 
+------------------+----------+----------+----------+----------+ 
|                  |          |          |          |          | 
| Projected final  |          |          |          |          | 
| net              |  121.5p  |  118.7p  |  116.0p  |  113.3p  | 
| asset value at   |          |          |          |          | 
| 31st December    |          |          |          |          | 
| 2010             |          |          |          |          | 
|                  |          |          |          |          | 
+------------------+----------+----------+----------+----------+ 
 
Projected final net asset values are calculated using the bases and assumptions 
set out below.  These illustrations are given to provide an indication of the 
sensitivity of the projected final net asset value to bonus rate changes.  They 
should not be taken as forecasts of particular degrees of change in bonus rate 
levels. 
Principal bases and assumptions used in projecting the estimated final net asset 
value 
The estimated final net asset value at 31st December 2010 has been calculated on 
the basis that: 
 
1)    All policies are held to maturity, no death claims or demutualisation 
benefits are received and no further purchases or disposals of policies are 
made; 
 
2)    The latest reversionary and terminal bonus rates declared at 30th June 
2010 continue to apply until maturity or are immediately reduced by 50% or 100% 
or are increased by 50%; 
 
3)    The estimated mid-market gross redemption yields as at 30th June 2010, for 
policies of differing remaining terms, are assumed to remain unchanged; 
 
4)    Annual expenses are assumed to be in line with recent experience and 
future annual inflation is assumed to be 3%.  Interest rates over the Company's 
life, when not hedged through swap or forward swap contracts, are assumed to be 
consistent with the shape of the swap yield curve at 30th June 2010; 
 
5)    No further shares are issued or repurchased nor are any dividends paid; 
and 
 
6)    They include a provision of GBP200,000 for winding up costs.  The 
Directors will endeavour to ensure that the actual winding up costs do not 
exceed this amount. 
 
 
Accrued Guaranteed Benefits 
A substantial proportion of shareholders' assets is now made up of guaranteed 
benefits - the total of sums assured and reversionary bonuses declared to date. 
Projected final net asset value based on the value of guaranteed benefits 
accrued to date, after estimated costs and based on current interest rates, is 
113.3p per share.  This figure assumes no further bonuses, reversionary or 
terminal, from 30th June 2010 and takes into account future premium commitments 
and expenses. 
 
Investment Review 
At the year end, the Company has investments in policies valued at GBP11.2 
million from a total of 22 with-profits life funds.   The Company also holds 
fixed interest securities, representing 34.6% of the investment portfolio. 
 
During the twelve months to 30th June 2010 the Company received proceeds of 
policy maturities amounting to GBP11.3 million.  The average annualised return 
on these policies was 2.75% since purchase, excluding separate demutualisation 
proceeds and the distribution of orphan assets. 
 
The Actuarial Committee's basis of valuation in the year has been that of 
estimated surrender value. 
 
The Company's exposure to future fluctuations of interest rates has been managed 
to a partial extent through a number of interest rate swaps or forward swaps. 
 
 
Principal Risks and Uncertainties 
The principal risks and uncertainties fall broadly under the following 
categories: 
 
Level of bonus declarations:  The original investment programme was targeted at 
companies which the Board believed had the best prospects of returns in relation 
to the prices paid for policies. 
 
Undue concentration of investment:  The limitation of investment in any one 
company to 25% by cost of the portfolio was intended to limit the risk from 
concentration. 
 
Bank deposits: As the Company reaches the end of its life more policies have 
been maturing and as a result the resulting cash deposits have been largely 
invested with Royal Bank of Scotland, a bank that is majority owned by the UK 
Government. 
 
Gearing:  The Company's borrowings were repaid in full on 3rd November 2008. 
 
Board and outsourcing of management of the Company:  The Board considers that it 
is in shareholders' best interests to save costs by keeping the number of Board 
members to a minimum.  Nevertheless, the skills and attributes of the Directors 
overlap sufficiently for no one individual to be indispensable. The performance 
of both Managers and Advisers is reviewed regularly. 
 
 
Related Parties' Transactions 
 
During the financial year, no transactions with related parties have taken 
place, which have materially affected the financial position or the performance 
of the Company. 
 
 
Directors' Responsibilities  Statement 
 
The Directors at the date of the approval of this Report, each confirm to the 
best of their knowledge that: 
 
a)   the financial statements have been prepared in accordance with applicable 
UK accounting standards, and give a true and fair view of the assets, 
liabilities, financial position and profit or loss of the Company; and 
b)   the Annual Financial Report, to be published shortly, includes a fair 
review of the development and performance of the business and the position of 
the Company, together with a description of the principal risks and 
uncertainties they face. 
 
 
 
For and on behalf of the Board 
 
F R Wales 
Chairman 
 
 
 
 
Enquiries: 
 
For further information please contact: 
 
Simon White, Head of Investment Trusts 
RCM (UK) Limited 
 
Tel: [phone] 
 
 
 
 
ANALYSIS OF INVESTED FUNDS 
 
 
TWENTY LARGEST HOLDINGS BY LIFE OFFICE 
AS AT 30TH JUNE 2010 
 
 
Life Office                                                          Value of 
Policies             % of 
 
GBP'000s          Total Investments 
+------------------------------+----------+----------+----------+ 
|                              |          |          |          | 
+------------------------------+----------+----------+----------+ 
| Standard Life                |    5,473 |          |     32.0 | 
+------------------------------+----------+----------+----------+ 
| Legal & General              |    1,738 |          |     10.2 | 
+------------------------------+----------+----------+----------+ 
| Scottish Provident           |    1,491 |          |      8.7 | 
+------------------------------+----------+----------+----------+ 
| Scottish Widows              |      525 |          |      3.1 | 
+------------------------------+----------+----------+----------+ 
| Friends Provident            |      432 |          |      2.5 | 
+------------------------------+----------+----------+----------+ 
| AVIVA (Norwich Union)        |      233 |          |      1.4 | 
+------------------------------+----------+----------+----------+ 
| Scottish Life                |      212 |          |      1.2 | 
+------------------------------+----------+----------+----------+ 
| Prudential (Scottish         |      171 |          |      1.0 | 
| Amicable)                    |          |          |          | 
+------------------------------+----------+----------+----------+ 
| Clerical Medical             |      147 |          |      0.9 | 
+------------------------------+----------+----------+----------+ 
| AVIVA (Commercial Union)     |      121 |          |      0.7 | 
+------------------------------+----------+----------+----------+ 
| National Mutual              |      121 |          |      0.7 | 
+------------------------------+----------+----------+----------+ 
| Prudential                   |      117 |          |      0.7 | 
+------------------------------+----------+----------+----------+ 
| Colonial Mutual              |       90 |          |      0.5 | 
+------------------------------+----------+----------+----------+ 
| Royal & Sun Alliance (Royal  |       77 |          |      0.5 | 
| Life)                        |          |          |          | 
+------------------------------+----------+----------+----------+ 
| UK Temperance & General      |          |          |          | 
| Provident Institution        |       53 |          |      0.3 | 
+------------------------------+----------+----------+----------+ 
| AVIVA (Provident Mutual)     |       49 |          |      0.3 | 
+------------------------------+----------+----------+----------+ 
| Refuge Assurance             |       31 |          |      0.2 | 
+------------------------------+----------+----------+----------+ 
| Swiss Pioneer Life           |       22 |          |      0.1 | 
+------------------------------+----------+----------+----------+ 
| Scottish Mutual              |       19 |          |      0.1 | 
+------------------------------+----------+----------+----------+ 
| National Provident           |       17 |          |      0.1 | 
| Institution                  |          |          |          | 
+------------------------------+----------+----------+----------+ 
| Total of twenty largest      |   11,139 |          |     65.2 | 
| holdings                     |          |          |          | 
+------------------------------+----------+----------+----------+ 
| Holdings in other offices    |       25 |          |      0.2 | 
+------------------------------+----------+----------+----------+ 
| Total holdings of endowment  |   11,164 |          |     65.4 | 
| policies                     |          |          |          | 
+------------------------------+----------+----------+----------+ 
 
 
FIXED INTEREST HOLDINGS 
AS AT 30TH JUNE 2010 
 
                % of 
 
GBP'000s          Total Investments 
 
+----------------------------+----------+----------+----------+ 
| EIB 5.5% Bd 7.12.11        |      528 |          |      3.1 | 
+----------------------------+----------+----------+----------+ 
| EIB 4.25% Bd 7.12.10       |      791 |          |      4.6 | 
+----------------------------+----------+----------+----------+ 
| UK Govt 6.25% 25.11.10     |    4,602 |          |     26.9 | 
+----------------------------+----------+----------+----------+ 
|                            |    5,921 |          |     34.6 | 
+----------------------------+----------+----------+----------+ 
|                            |          |          |          | 
|                            |          |          |          | 
+----------------------------+----------+----------+----------+ 
| Total Investments          |   17,085 |          |    100.0 | 
+----------------------------+----------+----------+----------+ 
 
 
 
The above figures exclude the cash balances at 30th June 2010 of GBP9,318,781. 
 
 
 
 
 
 
 
 
 
ALLIANZ DRESDNER ENDOWMENT POLICY TRUST 2010 plc 
SUMMARY OF UNAUDITED RESULTS 
 
+----------------------------+-----------+------+------------------+--------------------+ 
| INCOME STATEMENT                       |                                              | 
+----------------------------------------+----------------------------------------------+ 
|                                        |                                              | 
+----------------------------------------+----------------------------------------------+ 
|                            |                  |                  |                    | 
+----------------------------+------------------+------------------+--------------------+ 
| For the year ended 30th    |          Revenue |          Capital |              Total | 
| June 2010                  |                  |                  |             Return | 
+----------------------------+------------------+------------------+--------------------+ 
|                            |         GBP'000s |         GBP'000s |           GBP'000s | 
+----------------------------+------------------+------------------+--------------------+ 
|                            |                  |                  |           (Note B) | 
+----------------------------+------------------+------------------+--------------------+ 
| Net gains on investments   |                - |            2,111 |              2,111 | 
| at fair value              |                  |                  |                    | 
+----------------------------+------------------+------------------+--------------------+ 
| Investment income          |               78 |                - |                 78 | 
+----------------------------+------------------+------------------+--------------------+ 
| Other income*              |             218  |                - |               218  | 
+----------------------------+------------------+------------------+--------------------+ 
| Management and advisory    |            (422) |                - |              (422) | 
| fees                       |                  |                  |                    | 
+----------------------------+------------------+------------------+--------------------+ 
| Administration expenses    |            (158) |                - |              (158) | 
+----------------------------+------------------+------------------+--------------------+ 
| Net return before finance  |                  |                  |                    | 
| costs and                  |                  |                  |                    | 
+----------------------------+------------------+------------------+--------------------+ 
| taxation                   |            (284) |            2,111 |           1,827    | 
+----------------------------+------------------+------------------+--------------------+ 
|                            |                  |                  |                    | 
+----------------------------+------------------+------------------+--------------------+ 
| Finance costs: interest    |                  |                  |                    | 
| payable and similar        |                - |                - |                -   | 
| charges **                 |                  |                  |                    | 
+----------------------------+------------------+------------------+--------------------+ 
| Net return on ordinary     |                  |                  |                    | 
| activities before taxation |           (284)  |           2,111  |            1,827   | 
+----------------------------+------------------+------------------+--------------------+ 
|                            |                  |                  |                    | 
+----------------------------+------------------+------------------+--------------------+ 
| Taxation                   |                - | -                |                  - | 
+----------------------------+------------------+------------------+--------------------+ 
|                            |                  |                  |                    | 
+----------------------------+------------------+------------------+--------------------+ 
| Net return attributable to |                  |                  |                    | 
| Ordinary Shareholders      |           (284)  |           2,111  |            1,827   | 
+----------------------------+------------------+------------------+--------------------+ 
|                            |                  |                  |                    | 
+----------------------------+------------------+------------------+--------------------+ 
| Return per Ordinary Share  |                  |            9.46p |              8.19p | 
| (Note A)                   |          (1.27)p |                  |                    | 
+----------------------------+------------------+------------------+--------------------+ 
|                            |           |      |                  |                    | 
+----------------------------+-----------+------+------------------+--------------------+ 
(basic and diluted) 
 
  *includes interest on interest rate swaps of GBP184,000 (2009: GBPnil) 
** includes interest on interest rate swaps of GBPnil (2009: GBP475,000) 
+----------------------------+---------+----------+-------------------+ 
|                            |         |          |                   | 
+----------------------------+---------+----------+-------------------+ 
| BALANCE SHEET              |         |          |                   | 
+----------------------------+---------+----------+-------------------+ 
| as at 30th June 2010       |         |          |                   | 
+----------------------------+---------+----------+-------------------+ 
|                            |         |          |          GBP'000s | 
+----------------------------+---------+----------+-------------------+ 
| Investments held at fair   |         |          |                   | 
| value through profit or    |         |          |            17,085 | 
| loss                       |         |          |                   | 
+----------------------------+---------+----------+-------------------+ 
| Net Current Assets         |         |          |          9,751    | 
+----------------------------+---------+----------+-------------------+ 
| Total Net Assets           |         |          |            26,836 | 
+----------------------------+---------+----------+-------------------+ 
|                            |         |          |                   | 
+----------------------------+---------+----------+-------------------+ 
| Called up Share Capital    |         |          |               223 | 
+----------------------------+---------+----------+-------------------+ 
| Share Premium Account      |         |          |             4,750 | 
+----------------------------+---------+----------+-------------------+ 
| Capital Redemption Reserve |         |          |                27 | 
+----------------------------+---------+----------+-------------------+ 
| Special Reserve            |         |          |        17,346     | 
+----------------------------+---------+----------+-------------------+ 
| Capital Reserve            |         |          |         13,142    | 
+----------------------------+---------+----------+-------------------+ 
| Hedging Reserve            |         |          |                 2 | 
+----------------------------+---------+----------+-------------------+ 
| Revenue Reserve            |         |          |           (8,654) | 
+----------------------------+---------+----------+-------------------+ 
| Equity Shareholders' Funds |         |          |      26,836       | 
+----------------------------+---------+----------+-------------------+ 
|                            |         |          |                   | 
+----------------------------+---------+----------+-------------------+ 
| Net Asset Value per        |         |          |            120.2p | 
| Ordinary Share             |         |          |                   | 
+----------------------------+---------+----------+-------------------+ 
|                            |         |          |                   | 
+----------------------------+---------+----------+-------------------+ 
| The Net Asset Value per Ordinary Share is based on                  | 
| 22,325,000 Ordinary Shares in issue at the year end.                | 
+----------------------------+---------+----------+-------------------+ 
 
 
ALLIANZ DRESDNER ENDOWMENT POLICY TRUST 2010 plc 
SUMMARY OF UNAUDITED RESULTS 
 
 
+----------------------------+---+------+----------+------------+ 
| INCOME STATEMENT               |                              | 
+--------------------------------+------------------------------+ 
|                            |          |          |            | 
+----------------------------+----------+----------+------------+ 
| For the year ended 30th    |  Revenue |  Capital |      Total | 
| June 2009                  |          |          |     Return | 
+----------------------------+----------+----------+------------+ 
|                            | GBP'000s | GBP'000s |   GBP'000s | 
+----------------------------+----------+----------+------------+ 
|                            |          |          |   (Note B) | 
+----------------------------+----------+----------+------------+ 
| Net losses on investments  |        - |  (4,184) |    (4,184) | 
| at fair value              |          |          |            | 
+----------------------------+----------+----------+------------+ 
| Investment income          |       61 |        - |         61 | 
+----------------------------+----------+----------+------------+ 
| Other income               |       25 |        - |         25 | 
+----------------------------+----------+----------+------------+ 
| Management and advisory    |    (334) |        - |      (334) | 
| fees                       |          |          |            | 
+----------------------------+----------+----------+------------+ 
| Administration expenses    |    (128) |        - |      (128) | 
+----------------------------+----------+----------+------------+ 
| Net return before finance  |          |          |            | 
| costs and                  |          |          |            | 
+----------------------------+----------+----------+------------+ 
| taxation                   |    (376) |  (4,184) |    (4,560) | 
+----------------------------+----------+----------+------------+ 
|                            |          |          |            | 
+----------------------------+----------+----------+------------+ 
| Finance costs: interest    |          |          |            | 
| payable and similar        |      457 |        - |        457 | 
| charges                    |          |          |            | 
+----------------------------+----------+----------+------------+ 
| Net return on ordinary     |          |          |            | 
| activities before taxation |       81 |  (4,184) |    (4,103) | 
+----------------------------+----------+----------+------------+ 
|                            |          |          |            | 
+----------------------------+----------+----------+------------+ 
| Taxation                   |        - |        - |          - | 
+----------------------------+----------+----------+------------+ 
|                            |          |          |            | 
+----------------------------+----------+----------+------------+ 
| Net return attributable to |          |          |            | 
| Ordinary Shareholders      |       81 |  (4,184) |    (4,103) | 
+----------------------------+----------+----------+------------+ 
|                            |          |          |            | 
+----------------------------+----------+----------+------------+ 
| Return per Ordinary Share  |    0.36p | (18.74)p |   (18.38)p | 
| (Note A)                   |          |          |            | 
+----------------------------+----------+----------+------------+ 
|                            |   |      |          |            | 
+----------------------------+---+------+----------+------------+ 
(basic and diluted) 
 
+----------------------------+---------+----------+----------------+ 
|                            |         |          |                | 
+----------------------------+---------+----------+----------------+ 
| BALANCE SHEET              |         |          |                | 
+----------------------------+---------+----------+----------------+ 
| as at 30th June 2009       |         |          |                | 
+----------------------------+---------+----------+----------------+ 
|                            |         |          |       GBP'000s | 
+----------------------------+---------+----------+----------------+ 
| Investments held at fair   |         |          |                | 
| value through profit or    |         |          |         21,326 | 
| loss                       |         |          |                | 
+----------------------------+---------+----------+----------------+ 
| Net Current Assets         |         |          |         3,760  | 
+----------------------------+---------+----------+----------------+ 
| Total Net Assets           |         |          |         25,086 | 
+----------------------------+---------+----------+----------------+ 
|                            |         |          |                | 
+----------------------------+---------+----------+----------------+ 
| Called up Share Capital    |         |          |            223 | 
+----------------------------+---------+----------+----------------+ 
| Share Premium Account      |         |          |          4,750 | 
+----------------------------+---------+----------+----------------+ 
| Capital Redemption Reserve |         |          |             27 | 
+----------------------------+---------+----------+----------------+ 
| Special Reserve            |         |          |         17,419 | 
+----------------------------+---------+----------+----------------+ 
| Capital Reserve            |         |          |         11,030 | 
+----------------------------+---------+----------+----------------+ 
| Hedging Reserve            |         |          |              6 | 
+----------------------------+---------+----------+----------------+ 
| Revenue Reserve            |         |          |        (8,369) | 
+----------------------------+---------+----------+----------------+ 
| Equity Shareholders' Funds |         |          |         25,086 | 
+----------------------------+---------+----------+----------------+ 
|                            |         |          |                | 
+----------------------------+---------+----------+----------------+ 
| Net Asset Value per        |         |          |         112.4p | 
| Ordinary Share             |         |          |                | 
+----------------------------+---------+----------+----------------+ 
|                            |         |          |                | 
+----------------------------+---------+----------+----------------+ 
| The Net Asset Value per Ordinary Share is based on               | 
| 22,325,000 Ordinary Shares in issue as at 30th June 2009.        | 
+----------------------------+---------+----------+----------------+ 
 
 
 
 
 
 
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS 
             For the year ended 30th June 2010 and comparative period 
 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
|                 |  Called |   Share |    Capital |           |         |         |         |                    | 
|                 |      up | Premium | Redemption |   Capital | Special | Hedging | Revenue |                    | 
|                 |   Share | Account |    Reserve |   Reserve | Reserve | Reserve | Reserve |              Total | 
|                 | Capital | GBP000s |    GBP000s |           | GBP000s | GBP000s | GBP000s |                    | 
|                 | GBP000s |         |            |   GBP000s |         |         |         |            GBP000s | 
|                 |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
| Year ended 30th |         |         |            |           |         |         |         |                    | 
| June 2009       |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
|                 |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
| Net Assets at   |     223 |   4,750 |         27 |    15,214 | 17,419  |       7 | (8,450) |             29,190 | 
| 30th June 2008  |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
|                 |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
| Amortisation of |       - |       - |          - |         - |       - |     (1) |       - |          (1)       | 
| Hedging Reserve |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
|                 |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
| Revenue Return  |       - |       - |          - |         - |       - |       - |      81 |                 81 | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
|                 |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
| Capital Return  |       - |       - |          - |  (4,184)  |       - |       - |       - |            (4,184) | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
|                 |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
| Net Assets at   |     223 |   4,750 |         27 |   11,030  |  17,419 |       6 | (8,369) |             25,086 | 
| 30th June 2009  |         |         |            |           |         |         |         |                    | 
|                 |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
|                 |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
|                 |         |         |            |           |         |         |         |                    | 
|                 |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
| Year ended 30th |         |         |            |           |         |         |         |                    | 
| June 2010       |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
|                 |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
| Net Assets at   |     223 |   4,750 |         27 |    11,030 |  17,419 |       6 | (8,369) |             25,086 | 
| 30th June 2009  |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
|                 |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
| Amortisation of |       - |       - |          - |         - |       - |     (4) |       - |                (4) | 
| Hedging Reserve |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
|                 |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
| Dividends on    |       - |       - |          - |         - |    (73) |       - |       - |               (73) | 
| Ordinary Shares |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
|                 |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
| Revenue Return  |       - |       - |          - |         - |       - |       - |   (284) |              (284) | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
|                 |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
| Capital Return  |       - |       - |          - |     2,111 |       - |       - |       - |              2,111 | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
|                 |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
| Net Assets at   |     223 |   4,750 |         27 |    13,141 |  17,346 |       2 | (8,653) |             26,836 | 
| 30th June 2010  |         |         |            |           |         |         |         |                    | 
|                 |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
|                 |         |         |            |           |         |         |         |                    | 
+-----------------+---------+---------+------------+-----------+---------+---------+---------+--------------------+ 
 
 
 
 
CASH FLOW STATEMENT 
For the years ended 30th June 2010 and 2009 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
|                                |      2010 |  |                2010 |          |            2009 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
|                                |  GBP'000s | |            GBP'000s |          |        GBP'000s | 
|                                |           | |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Net cash outflow from          |           |  |               (185) |          |           (290) | 
| operating activities           |           | |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
|                                |           |  |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Return on investments and      |           |  |                     |          |                 | 
| servicing of finance           |           | |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Interest paid                  |           |  |                   - |          |            (21) | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
|                                |           |  |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Taxation                       |           |  |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Income tax repaid              |           |  |                   - |          |               - | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
|                                |           |  |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Capital expenditure and        |           |  |                     |          |                 | 
| financial investment           |           | |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Purchases of fixed asset       |   (5,202) |  |                     |          |           (601) | 
| investments                    |           | |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Sales of fixed asset           |    11,418 |  |                     |          |           5,524 | 
| investments                    |           | |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
|                                |           |  |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Net cash inflow from capital   |           |  |                     |          |                 | 
| expenditure and financial      |           | |               6,216 |          |           4,923 | 
| investment                     |           | |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
|                                |           |  |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Equity dividends paid          |           |  |                (74) |          |               - | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
|                                |           |  |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Net cash inflow before         |           |  |             5,957   |          |           4,612 | 
| financing                      |           | |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
|                                |           |  |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
|                                |           |  |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
|                                |           |  |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Financing                      |           |  |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Decrease in bank loan          |    -      |  |                   - |          |         (1,950) | 
|                                |           | |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
|                                |           |  |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Net cash outflow from          |           |  |                   - |          |         (1,950) | 
| financing                      |           | |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
|                                |           |  |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Increase in cash               |           |  |             5,957   |          |           2,662 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
|                                |           |  |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Reconciliation of Net Return   |           |  |                     |          |                 | 
| on Ordinary Activities before  |           | |                     |          |                 | 
| Taxation to Net Cash Outflow   |           | |                     |          |                 | 
| from Operating Activities      |           | |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
|                                |           |  |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Total return before taxation   |           |  |               1,993 |          |         (4,103) | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Less: Finance costs: interest  |           |  |                     |          |                 | 
| payable and similar charges    |           | |                   - |          |           (457) | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Less: Net (gains) losses on    |           |  |                     |          |                 | 
| investments at fair value      |           | |             (2,111) |          |           4,184 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
|                                |           |  |               (118) |          |           (376) | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| (Increase) Decrease in debtors |           |  |               (126) |          |              93 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Increase (Decrease) in         |           |  |                  59 |          |             (7) | 
| creditors                      |           | |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Net cash outflow from          |           |  |               (185) |          |           (290) | 
| operating activities           |           | |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
|                                |           |  |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Reconciliation of net cash     |           |  |                     |          |                 | 
| flow to movement in net funds  |           | |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Net cash inflow                |           |  |               5,957 |          |           2,662 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Repayment of bank loan         |           |  |                   - |          |           1,950 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Movement in net funds          |           |  |               5,957 |          |           4,612 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Net funds (debt) brought       |           |  |               3,361 |          |         (1,251) | 
| forward                        |           | |                     |          |                 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
| Net funds carried forward      |           |  |               9,318 |          |           3,361 | 
+--------------------------------+-----------+-+---------------------+----------+-----------------+ 
 
 
Note A 
 
The Return per Ordinary Share has been calculated using a weighted average 
number of ordinary shares in issue during the year of 22,325,000 (2009: 
22,325,000). 
 
Note B 
 
The total return column of this statement is the profit and loss account of the 
Company.  All revenue and capital items derive from continuing operations.  No 
operations were acquired or discontinued in the year.  A Statement of Total 
Recognised Gains and Losses is not required as all gains and losses of the 
Company have been reflected in the Income Statement. 
 
Note C 
 
Endowment policies, listed investments and interest rate swaps are held at fair 
value through profit or loss in accordance with FRS 26 "Financial Instruments: 
Recognition and Measurement".  Listed investments and interest rate swaps are 
valued at bid market prices. 
 
Note D 
 
The financial information set out in the announcement does not constitute the 
Company's statutory accounts for the years ended 30th June 2010 or 30th June 
2009.  The audit report on the full financial statements for the year ended 30th 
June 2010 has yet to be signed by the Auditors.  The financial information for 
the year ended 30th June 2009 is derived from the statutory financial statements 
for that year which have been delivered to the Registrar of Companies.  The 
auditors reported on those accounts; their report was unqualified and did not 
contain a statement under section 498 of the Companies Act 2006.  The statutory 
financial statements for the year ended 30th June 2010 will be finalised on the 
basis of the financial information presented by the Directors in this 
announcement and will be delivered to the Registrar of Companies following the 
Company's Annual General Meeting. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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