Half-yearly Report

THE THROGMORTON TRUST PLC INTERIM RESULTS FOR THE SIX MONTH PERIOD TO 31 MAY 2007 KEY POINTS • Continued outperformance against FTSE SmallCap (Ex IC) Index • Net Asset Value per Ordinary Share at 31 May 2007, 233.54p (with prior charges at market value) • Interim Dividend 0.5p (2006 - 0.5p). This dividend, which will be paid on 4 September 2007, is not provided for in these accounts (see notes 2 and 5) NET ASSET VALUE 31.05.07 30.11.06 Change The Throgmorton Trust PLC - prior charges at market 233.54p 192.24p +21.5% value - prior charges at par 240.00p 199.42p +20.3% - Share Price 196.75p 164.25p +19.8% - FTSE SmallCap (ex IC) 4071.2 3541.2 +15.0% - FTSE All-Share 3438.7 3119.9 +10.2% CHAIRMAN'S STATEMENT Throgmorton Trust has had a very good half year. During the six month period ending 31 May 2007 net asset value per share, with debt valued at market, has risen 21.5% compared with a rise of 15% in the FTSE Small Cap index. Smaller companies have done well in comparison with the main market as is shown by the FTSE All Share Index which has risen by only 10.2% during the same period. Many of the companies which the Manager has selected are listed on AIM, which has risen by 19.1% over the period. During the period the share price rose 19.8% to 197p. Net revenue after taxation for the half year amounted to £804,000 and the board will be paying an unchanged interim dividend of 0.5p on 4 September 2007. The board had been hoping that an improvement in the performance of the Trust would have reduced the discount at which the Trust's shares trade in comparison with net asset value. It is disappointing to report that, despite this excellent performance in comparison with both the market and our peer group of small company investment trusts, the discount has widened, although the position relative to the peer group has improved. During the year the board has continued to explore with the Manager and our Broker a number of options to reduce the discount, including buying back further shares. During the period we have bought back 17.3 million shares. In recent weeks the market has been experiencing some nervousness, as concerns mount over the state of the debt market. However we believe that our broad portfolio of well managed, growing small companies, with strong cash flow, will be well placed to outperform the market. Richard Bernays Chairman 9 August 2007 Income Statement Six months to 31 May 2007 Revenue Capital Total £000s £000s £000s Realised gains and losses - 30,148 30,148 Unrealised gains and losses - 33,284 33,284 Income 2,803 - 2,803 Investment management fee (782) (782) (1,564) Other expenses (228) - (228) Net return before finance costs and 1,793 62,650 64,443 taxation Interest payable and similar (989) (953) (1,942) charges Return on ordinary activities 804 61,697 62,501 before taxation Tax on ordinary activities - - - Return on ordinary activities after 804 61,697 62,501 taxation attributable to equity shareholders Return per ordinary share: Basic 0.51p 39.15p 39.66p Six months to 31 May 2006 Revenue Capital Total £000s £000s £000s Realised gains and losses - 33,003 33,003 Unrealised gains and losses - 2,758 2,758 Income 2,967 - 2,967 Investment management fee (761) (761) (1,522) Other expenses (221) - (221) Net return before finance costs and 1,985 35,000 36,985 taxation Interest payable and similar (985) (953) (1,938) charges Return on ordinary activities 1,000 34,047 35,047 before taxation Tax on ordinary activities - - - Return on ordinary activities after 1,000 34,047 35,047 taxation attributable to equity shareholders Return per ordinary share: Basic 0.55p 18.85p 19.40p Year to 30 November 2006 Revenue Capital Total £000s £000s £000s Realised gains and losses - 54,450 54,450 Unrealised gains and losses - (7,346) (7,346) Income 7,113 - 7,113 Investment management fee (1,498) (1,498) (2,996) Other expenses (417) - (417) Net return before finance costs and 5,198 45,606 50,804 taxation Interest payable and similar (1,937) (1,905) (3,842) charges Return on ordinary activities 3,261 43,701 46,962 before taxation Tax on ordinary activities - - - Return on ordinary activities after 3,261 43,701 46,962 taxation attributable to equity shareholders Return per ordinary share: Basic 1.84p 24.60p 26.44p Reconciliation of Movements in Shareholders' Funds Share Share Capital Capital Capital Revenue Total Capital Premium Redemption Reserve Reserve Reserve Account Reserve Unrealised Realised £000s £000s £000s £000s £000s £000s £000s Balance at 30 9,130 35,272 6,060 68,739 188,367 5,816 313,384 November 2005 Dividends paid - - - - - (2,245) (2,245) during the year re 2005 Return - - - (7,346) 51,047 3,261 46,962 attributable to shareholders in 2006 Shares (951) - 951 - (30,999) - (30,999) repurchased by the company in 2006 Dividends paid - - - - - (890) (890) in the year re 2006 Balance at 30 8,179 35,272 7,011 61,393 208,415 5,942 326,212 November 2006 Dividends paid - - - - - (2,367) (2,367) during period re 2006 Return - - - 33,134 28,413 804 62,351 attributable to shareholders in 2007 Shares (544) - 544 - (19,738) - (19,738) repurchased by the company in 2007 Balance at 31 7,635 35,272 7,555 94,527 217,090 4,379 366,458 May 2007 Summarised Balance Sheet 31 May 2007 31 May 2006 30 Nov 2006 £000s £000s £000s Fixed assets investments held at fair 368,636 363,868 347,395 value through profit or loss 1,969 2,494 2,060 Portfolio investments Subsidiary undertakings 370,605 366,362 349,455 Current assets 865 894 1,493 Debtors 31,702 8,311 11,940 Cash at bank 32,567 9,205 13,433 Creditors - due within one year (4,545) (4,812) (4,507) Total assets less current liabilities 398,627 370,755 358,381 Creditors - due after one year: Debenture stock (17,169) (17,169) (17,169) Loan from Group company (15,000) (15,000) (15,000) (32,169) (32,169) (32,169) 366,458 338,586 326,212 Capital and reserves 7,635 8,902 8,179 Share capital 35,272 35,272 35,272 Share Premium 4,379 4,571 5,942 Revenue reserves 319,172 289,841 276,819 Other reserves Total shareholders' funds 366,458 338,586 326,212 Net Asset Value per ordinary share 240.00p 190.18p 199.42p Net Asset Value adjusted for "Fair 233.54p 183.21p 192.24p Value" of debt Number of ordinary shares in issue 152,690,869 178,030,869 163,580,869 Cash Flow Statement Six months Six months Year to 30 to 31 May to 31 May Nov 2006 2007 2006 £000s £000s £000s Net cash inflow from operating activities 1,984 1,946 5,146 Servicing of finance (1,943) (1,938) (3,842) Interest paid Taxation - - Taxation recovered Capital expenditure and financial 42,562 (540) 26,821 investment (752) (741) (1,488) Net sales/( purchases) of investments 33 79 24 Capital management fee Net payments from subsidiaries Net cash inflow/(outflow) from investing 41,843 (1,202) 25,357 activities Dividends (2,367) (2,245) (3,135) Dividends paid - equity shares Net cash inflow/(outflow) before financing 39,517 (3,439) 23,526 Financing (19,755) (7,597) (30,933) Repurchase of ordinary shares Net cash outflow from financing (19,755) (7,597) (30,933) Increase/(decrease) in cash 19,762 (11,036) (7,407) Notes 1. The Trust's figures for the six months to 31 May 2007 and the comparative figures for the corresponding period in the previous financial year are unaudited; those for the year to 30 November 2006 are based on the Trust's accounts for that period, which carry an unqualified report from the auditors and have been filed with the Registrar of Companies. 2. Accounting policies: Under FRS26: "Financial Instruments: Measurements" the company has designated its assets and liabilities as being measured as "fair value through profit and loss". The fair value of fixed asset investments is deemed to be market bid value at the close of business on the balance sheet date. Previously the investments were valued at market mid value. Under FRS21: "Events after the Balance Sheet Date" dividends declared and approved by the company after the balance sheet date should not be recognised as a liability of the company at the balance sheet date. Previously, the company accrued the dividends in the period in which the net revenue, to which those dividends related, was accounted for. Also under FRS25, dividends are not shown on the Income Statement but are shown in the Reconciliation of Movement in Shareholders' Funds. 3. In accordance with Financial Reporting Standard 16 Current Taxation, UK dividend income has been shown net of its attributable tax credits. 4. Management fees payable and finance costs of debt are each currently allocated 50% to capital and 50% to revenue. 5. The directors have declared an interim dividend of 0.5 pence per share (2006 - 0.5 pence) payable on 4 September 2007 to shareholders on the register at the close of business on 17 August 2007. 6. The net asset value per ordinary 5p share (deducting prior charges at par value) is based on the shares in issue, the market value of listed investments and other net assets and liabilities. In accordance with the AIC recommendations, the Trust has published net asset values with prior charges valued at `Fair Value' in addition to the net asset values with prior charges valued at par. 7. Copies of the 2006 annual report and the 2007 interim results are available from the Trust's registered office, 155 Bishopsgate, London EC2M 3XJ. 8. The Trust's balance sheets as at 31 May 2007, 31 May 2006 and 30 November 2006 are shown above in summary form and have been extracted from unaudited and audited accounts respectively as described in Note 1. 9. Group accounts have not been prepared, as in the opinion of the directors, the inclusion of the remaining subsidiary undertakings, taken together, is not material for the purpose of giving a true and fair view.

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