Final Results -11-

monthly portfolio managers' reports. Regular contact is maintained with 
borrowers, agent banks and portfolio managers. Board meetings are also attended. 
Where available, prices are monitored daily as are companies on watch lists. 
Investments are not actively traded but opportunistic sales of investments have 
occurred. Other than listed equity investments all pricing is indicative only as 
there is little, if any, actual trading in other instruments. 
The Group's investments are exposed to market price fluctuation. If the 
valuation of the Group's investment had been 20 percent lower at 31 December 
2008 the Group's loss would have been higher and the Group's net assets lower by 
GBP28.1million (2007: GBP36.3 million). A 20 percent increase in value would, on 
the same basis, have decreased the loss and increased net assets by the same 
amount. 
If the valuation of the Company's investment had been 20 percent lower at 31 
December 2008 the Company's loss would have been higher and the Group's net 
assets lower by GBP22.0 million (2007: GBP36.3 million). A 20 percent increase 
in value would, on the same basis, have decreased the loss and increased net 
assets by the same amount. 
 
c)  Interest rate risk 
As the Group has no borrowings, interest rate risk arises solely from interest 
received in respect of the Group's investments and loans and cash balances. 
Investments and loans issued at floating interest rates expose the Group to cash 
flow interest rate risk. The Group is also exposed to fair value risk interest 
rate risk on the debt instruments held at fair value through profit or loss. 
 
 
The table below details the Group's exposure to interest rates at 31 December 
2008 by reference to the earlier of the contractual repricing or maturity date: 
 
 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| Group                                |   |             |  |             |  |             |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| 2008                                 |   |      Within |  |             |  |   More than |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
|                                      |   |      1 year |  |   2-5 years |  |     5 years |  |        Total | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
|                                      |   |         GBP |  |         GBP |  |         GBP |  |          GBP | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| Fixed rate:                          |   |             |  |             |  |             |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| Investments measured at fair value   |   |          -  |  |          -  |  | 12,740,161  |  |  12,740,161  | 
| through profit or loss               |   |             |  |             |  |             |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| Floating rate:                       |   |             |  |             |  |             |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| Investments measured at fair value   |   |  2,228,496  |  | 20,284,573  |  | 49,871,827  |  |  72,384,896  | 
| through profit or loss               |   |             |  |             |  |             |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| Available-for-sale investments       |   |          -  |  |    205,283  |  | 24,380,612  |  |  24,585,895  | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| Cash and cash equivalents            |   | 20,621,092  |  |          -  |  |          -  |  |  20,621,092  | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
|                                      |   | 22,849,588  |  | 20,489,856  |  | 86,992,600  |  | 130,332,044  | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
|                                      |   |             |  |             |  |             |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
|                                      |   |             |  |             |  |             |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
|                                      |   |             |  |             |  |             |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
|                                      |   |             |  |             |  |             |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| 2007                                 |   |      Within |  |             |  |   More than |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
|                                      |   |      1 year |  |   2-5 years |  |     5 years |  |        Total | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
|                                      |   |         GBP |  |         GBP |  |         GBP |  |          GBP | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| Fixed rate:                          |   |             |  |             |  |             |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| Investments measured at fair value   |   |          -  |  |          -  |  |          -  |  |           -  | 
| through profit or loss               |   |             |  |             |  |             |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| Floating rate:                       |   |             |  |             |  |             |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| Investments measured at fair value   |   |    845,927  |  | 12,443,408  |  | 38,400,604  |  |  51,689,939  | 
| through profit or loss               |   |             |  |             |  |             |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| Loans and receivables                |   |          -  |  |          -  |  | 15,912,561  |  |  15,912,561  | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| Cash and cash equivalents            |   | 59,855,959  |  |         -   |  |         -   |  |  59,855,959  | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| Loans and borrowings                 |   | (9,188,157) |  |         -   |  |         -   |  |  (9,188,157) | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
|                                      |   | 51,513,729  |  | 12,443,408  |  | 54,313,165  |  | 118,270,302  | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
|                                      |   |             |  |             |  |             |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
 
 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| Company                              |   |             |  |             |  |             |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| 2008                                 |   |      Within |  |             |  |   More than |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
|                                      |   |      1 year |  |   2-5 years |  |     5 years |  |        Total | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
|                                      |   |         GBP |  |         GBP |  |         GBP |  |          GBP | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| Fixed rate:                          |   |             |  |             |  |             |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| Investments measured at fair value   |   |          -  |  |          -  |  |          -  |  |           -  | 
| through profit or loss               |   |             |  |             |  |             |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+ 
| Floating rate:                       |   |             |  |             |  |             |  |              | 
+--------------------------------------+---+-------------+--+-------------+--+-------------+--+--------------+