Final Results -23-

annual management fee chargeable by the Investment Manager is currently based on 
1.75 percent of gross shareholders' equity, as reduced by returns of capital to 
shareholders. Additionally, the Investment Manager is entitled to a performance 
fee equivalent to 25 percent above the benchmark return (minimum 2 percent per 
quarter). 
 
 
Related party transactions between the Company and its subsidiaries are detailed 
below: 
 
 
+-----------------------------------------+--+-------------+--+------------+ 
| Balance due from/owed to subsidiaries at   |             |  |            | 
| the balance sheet date:                    |             |  |            | 
+--------------------------------------------+-------------+--+------------+ 
|                                         |  |        2008 |  |       2007 | 
+-----------------------------------------+--+-------------+--+------------+ 
|                                         |  |         GBP |  |        GBP | 
+-----------------------------------------+--+-------------+--+------------+ 
| Due from:                               |  |             |  |            | 
+-----------------------------------------+--+-------------+--+------------+ 
| ACP Mezzanine Limited                   |  |    242,163  |  |         -  | 
+-----------------------------------------+--+-------------+--+------------+ 
| Mittelstand Kapital Solutions GmbH      |  |      5,552  |  |         -  | 
+-----------------------------------------+--+-------------+--+------------+ 
| ACP Capital (Cyprus) Limited            |  |    357,739  |  |         -  | 
+-----------------------------------------+--+-------------+--+------------+ 
|                                         |  |    605,454  |  |         -  | 
+-----------------------------------------+--+-------------+--+------------+ 
| Owed to:                                |  |             |  |            | 
+-----------------------------------------+--+-------------+--+------------+ 
| ACP Capital UK LLP                      |  |    822,743  |  |         -  | 
+-----------------------------------------+--+-------------+--+------------+ 
| ACP Investment Management Limited       |  |  3,744,317  |  |         -  | 
+-----------------------------------------+--+-------------+--+------------+ 
|                                         |  |  4,567,060  |  |         -  | 
+-----------------------------------------+--+-------------+--+------------+ 
|                                         |  |             |  |            | 
+-----------------------------------------+--+-------------+--+------------+ 
| Income and expense transactions with subsidiaries during the year        | 
| were as follows:                                                         | 
+--------------------------------------------------------------------------+ 
|                                         |  |        2008 |  |       2007 | 
+-----------------------------------------+--+-------------+--+------------+ 
|                                         |  |         GBP |  |        GBP | 
+-----------------------------------------+--+-------------+--+------------+ 
| Income                                  |  |             |  |            | 
+-----------------------------------------+--+-------------+--+------------+ 
| Dividend received from ACP Mezzanine    |  |  3,238,860  |  | 2,149,072  | 
| Limited                                 |  |             |  |            | 
+-----------------------------------------+--+-------------+--+------------+ 
| Distribution received from ACP          |  | 13,089,746  |  |         -  | 
| Mezzanine Limited                       |  |             |  |            | 
+-----------------------------------------+--+-------------+--+------------+ 
| Dividend received from ACP Capital      |  |  1,092,518  |  |         -  | 
| (Cyprus) Limited                        |  |             |  |            | 
+-----------------------------------------+--+-------------+--+------------+ 
|                                         |  |             |  |            | 
+-----------------------------------------+--+-------------+--+------------+ 
| Expenses                                |  |             |  |            | 
+-----------------------------------------+--+-------------+--+------------+ 
| Advisory fee from ACP Capital UK LLP    |  |  2,095,340  |  | 1,457,610  | 
+-----------------------------------------+--+-------------+--+------------+ 
| Recharged expenses from Mittelstand     |  |     18,698  |  |         -  | 
| Kapital Solutions GmbH                  |  |             |  |            | 
+-----------------------------------------+--+-------------+--+------------+ 
 
 
The Company has 9,141,200 (2007: 10,141,200) options to purchase ordinary shares 
in ACPM at an exercise price of EUR1.00 per share. The options are fully vested 
and exercisable between January 2008 and July 2011. 
 
 
In the prior year, loans and receivables with an amortised cost of EUR7,978,284 
were transferred from ACPM to the Company. 
 
 
In the prior year, the Company loaned Eric Youngblood, a former director of the 
Company, GBP100,000. This loan remains unpaid at the year end. 
 
 
  23 Subsidiaries 
 
 
 
 
The Group has the following subsidiaries: 
 
 
 
 
+------------------------------------+--+----------+--+--+--+------------+--+-------------------------+ 
| Name                               |  | Country of     |  |Percentage  |  | Principal activity      | 
|                                    |  | incorporation  |  |   owned    |  |                         | 
|                                    |  | and            |  |            |  |                         | 
|                                    |  | registration   |  |            |  |                         | 
+------------------------------------+--+----------------+--+------------+--+-------------------------+ 
| ACP Mezzanine Limited              |  | Jersey   |  |  |  |  54.17%    |  | Mezzanine assets and    | 
|                                    |  |          |  |  |  |            |  | other investments       | 
+------------------------------------+--+----------+--+--+--+------------+--+-------------------------+ 
|                                    |  |          |  |  |  |            |  |                         | 
+------------------------------------+--+----------+--+--+--+------------+--+-------------------------+ 
| ACP Mezzanine (UK) Limited         |  | England  |  |  |  |  54.17%    |  | Investment holdings     | 
|                                    |  | & Wales  |  |  |  |            |  |                         | 
+------------------------------------+--+----------+--+--+--+------------+--+-------------------------+ 
|                                    |  |          |  |  |  |            |  |                         | 
+------------------------------------+--+----------+--+--+--+------------+--+-------------------------+ 
| ACP Mezzanine Asset Holdings 1     |  | Jersey   |  |  |  |  54.17%    |  | Dormant                 | 
| Limited                            |  |          |  |  |  |            |  |                         | 
+------------------------------------+--+----------+--+--+--+------------+--+-------------------------+ 
|                                    |  |          |  |  |  |            |  |                         | 
+------------------------------------+--+----------+--+--+--+------------+--+-------------------------+ 
| ACP Mezzanine Asset Holdings 2     |  | Jersey   |  |  |  |  54.17%    |  | Dormant                 | 
| Limited                            |  |          |  |  |  |            |  |                         | 
+------------------------------------+--+----------+--+--+--+------------+--+-------------------------+ 
|                                    |  |          |  |  |  |            |  |                         | 
+------------------------------------+--+----------+--+--+--+------------+--+-------------------------+ 
| ACP Investment Management Limited  |  | Jersey   |  |  |  |    100%    |  | Investment manager      | 
+------------------------------------+--+----------+--+--+--+------------+--+-------------------------+ 
|                                    |  |          |  |  |  |            |  |                         | 
+------------------------------------+--+----------+--+--+--+------------+--+-------------------------+ 
| ACP Capital Nominee Limited        |  | Jersey   |  |  |  |    100%    |  | Trustee for employee    | 
|                                    |  |          |  |  |  |            |  | awards                  | 
+------------------------------------+--+----------+--+--+--+------------+--+-------------------------+ 
|                                    |  |             |  |  |            |  |                         | 
+------------------------------------+--+-------------+--+--+------------+--+-------------------------+ 
| ACP Capital UK LLP                 |  | England &   |  |  |    100%    |  | Advisory services       | 
|                                    |  | Wales       |  |  |            |  |                         | 
+------------------------------------+--+-------------+--+--+------------+--+-------------------------+ 
|                                    |  |             |  |  |            |  |                         | 
+------------------------------------+--+-------------+--+--+------------+--+-------------------------+ 
| ACP Capital (UK) Limited           |  | England &   |  |  |    100%    |  | Controlling member of   | 
|                                    |  | Wales       |  |  |            |  | the LLP                 | 
+------------------------------------+--+-------------+--+--+------------+--+-------------------------+ 
|                                    |  |          |  |  |  |            |  |                         | 
+------------------------------------+--+----------+--+--+--+------------+--+-------------------------+ 
| ACP Capital Cyprus (HR) limited    |  | Cyprus   |  |  |  |    100%    |  | Ceased trading in 2008. |