Final Results

Preliminary Announcement
Final Accounts
of Blue Planet Financials Growth & Income Investment Trusts plc
for year ended 31 March 2005


Financial Record

As at 31 March                                   2005     2004    2003    2002    2001

Total assets less current liabilities (£'000)  2,907    2,528   2,096   2,692   2,697
Loans (£'000)                                   (750)    (750)   (750)   (750)   (750)
Shareholders' funds (£'000)                        2,157    1,778   1,346   1,942   1,947
Net asset value per share (p)                  159.59   130.91   98.72  139.94  139.43
Share price (p)                                117.65   100.00   80.65  107.25   99.75
Discount (%)                                     26.3     23.6    18.3    23.4    28.5
Gearing (%)*                                     28.9     24.1    13.2    17.9    32.0

Year to 31 March                                 2005     2004    2003    2002    2001

Revenue available for shareholders (£'000)        16       47      50      66      55
Revenue Return per share (p)                     1.15     3.48    3.65    4.72    3.87
Dividend per share (net) (p)                     2.25     3.40    3.60    4.00    4.30
Dividend yield on our shares (%)                 1.91     3.40    4.46    3.73    4.31
Dividend yield on FTSE All Share Index (%)       3.51     3.13    3.87    2.99    2.94
Expenses ratio - net basis (%) **                3.27     3.64    3.87    3.14    3.00
Expenses ratio - gross basis (%) ***             2.35     2.53    2.61    2.21    2.10

*     Net debt as a percentage of shareholders' funds
**    Net basis - Administrative expenses as a percentage of average net asset value of the Company
***   Gross basis - Administrative expenses as a percentage of average gross asset value of the Company



BLUE PLANET FINANCIALS GROWTH & INCOME INVESTMENT TRUSTS PLC

Portfolio Information
At 31 March 2005                                   Valuation (£)   % of Portfolio
                                                                                  2005
Equities

18,600  OTP Bank Rt                      Hungary        336,098                   12.1
62,912  PKO Bank Polski S.A.             Poland         292,845                   10.5
45,000  Lloyds TSB Group PLC             UK             215,100                    7.7
15,600  ABN Amro Holdings NV             Netherlands    204,776                    7.3
3,710   Sociéte Générale          France         203,934                    7.3
5,180   BNP Paribas S.A.                 France         194,148                    6.9
3,645   Bank Austria Creditanstalt       Austria        189,987                    6.8
1,760   Bank Przemyslowo-Handlowy BPH    Poland         147,937                    5.3
5,502   Bank Pekao S.A.                  Poland         128,515                    4.6
9,000   Dexia NPV                        Belgium        113,264                    4.1
17,570  Banco Santander Central
        Hispano S.A.                     Spain          113,149                    4.1
2,450   Deutsche Bank AG                 Germany        111,822                    4.0
15,000  Schroders PLC                    UK             106,050                    3.8
6,186   Bank Zachodni WBK S.A.           Poland         103,578                    3.7
300     Sberbank RF                      Russia          94,102                    3.4
10,000  Banco Bilbao Vizcaya
        Argentaria S.A.                  Spain           86,140                    3.1
734     Komercni Banka A.S.              Czech Republic  55,158                    2.0
90,622  Bank Millennium S.A.             Poland          51,287                    1.8
37,500  Blue Planet European Financials
        Investment Trust plc*            UK              24,375                    0.9
19,600  Blue Planet Worldwide Financials
        Investment Trust plc*            UK              15,386                    0.6

Total                                                 2,787,651                  100.0

At 31 March 2005, the portfolio yield, as reported to the Association of Investment Trust Companies, was 3.1%
 (2004 - 4.4%).
* The total holding in other Investment Trusts managed by Blue Planet Investment Management Ltd was £39,761.


Classification of Investments
At 31 March 2005

                                Life     Investment                Fixed      Total      Total
                   Banks   Assurance      Companies    Other    Interest       2005       2004
                       %           %              %        %           %          %          %


Poland              25.9           -              -        -           -       25.9          -
France              14.2           -              -        -           -       14.2       16.1
UK                  11.5           -            1.5        -           -       13.0       69.0
Hungary             12.1           -              -        -           -       12.1          -
Netherlands          7.3           -              -        -           -        7.3        6.2
Spain                7.2           -              -        -           -        7.2          -
Austria              6.8           -              -        -           -        6.8          -
Belgium              4.1           -              -        -           -        4.1          -
Germany              4.0           -              -        -           -        4.0        4.4
Russia               3.4           -              -        -           -        3.4          -
Czech Republic       2.0           -              -        -           -        2.0          -
Eire                   -           -              -        -           -          -        4.3

Totals 2005         98.5           -            1.5        -           -      100.0          -

Totals 2004         61.1         6.9           13.0      6.6        12.4          -      100.0

Benchmark*          62.8         7.0            7.0     11.6        11.6      100.0          -

Our benchmark is the FTSE Eurofirst 300 Financials Index.





Chairman's Statement


In this year's Interim Report we informed shareholders of our intentions to sell off the remainder of our holdings of
bonds and PIBS and invest the proceeds in equities. This has now been done.  As a result, on 1st December 2004 we
changed our benchmark index from a composite of the FTSE Eurofirst 300 Financials and the FTSE Actuaries Government
Securities Fixed Interest indices to the FTSE Eurofirst 300 Financials Index.

This switch in asset classes has served us well and the year to 31st March 2005 has been a very good one for your
Company.  We made a total return of 24.7% (net asset value plus dividends reinvested) which is considerably better than
our benchmark index which generated a total return of 16.1%.

We began the year with an undiluted net asset value per share of £1.3091 (£13.091 per Share unit) and ended it with one
of £1.5959 (£15.959 per Share unit).  As regards our share price, it rose 17.65% over the year.  We have an excellent
portfolio of investments and the companies in which we are invested performed, on the whole, very well in 2004/2005 with
earnings per share growth of our top ten largest investments rising by between 11.8% and 144.0%.  Furthermore, dividends
paid by our nine largest holdings (this ignores PKO BP, which prior to its IPO was state owned and did not pay a
dividend and whose change in dividend cannot therefore be measured) rose by on average 93.1% in 2004.  The performance
of individual investments is discussed in more detail in the Investment Manager's report.

At the time of our last Annual Report 100% of our capital was invested in Western Europe.  Since then we have
reallocated over half of this to Central and Eastern Europe ("CEE") where we believe that economic growth prospects are
significantly better over the next five to ten years than those of the more mature Western European economies.  We now
have significant direct investments in Austria, Czech Republic, Hungary, Poland and Russia and indirect investments in
banks in many other countries in the CEE region.  These economies have characteristically underdeveloped banking and
financial markets which will develop as they grow more prosperous.

We remain investors in those banks in the West which we believe will be the major beneficiaries of future efficiency
gains and the ongoing consolidation of the European banking market which is currently underway and will continue over
the coming years.  We believe that the average Cost to Income Ratio ("CIR") of banks in the Eurozone will, over time,
fall to around 40%.  Many currently operate with CIR's in the range of 55% to 65% and as these are reduced profits will
rise quite considerably.  However, we are concerned about the prospects for those UK banks that have a large exposure to
their domestic market and we have sold off most of these.  This is because we expect a marked deterioration in the UK
economy over the next five to seven years.

With the accession of ten new countries into the European Union on 1st May 2004, the markets in these new European Union
countries have become more open.  However, investments in CEE countries are not without risk, so the Board and the
management team's overriding concern has been to take a cautious and considered approach, taking time to identify,
research and select those investments that we believe will produce good returns to investors over the coming years for
an acceptable level of risk.  A key part of this process has been to meet with the management of companies in which we
are considering investing in.  Representatives of the Investment Manager have travelled extensively since the last year
end and met with banks in Austria, Estonia, Hungary, Italy, Poland, Portugal, Romania, Russia, Slovakia and the United
Kingdom.  In addition, they have also had meetings in the UK with the management of many overseas financial
institutions.  We feel that such meetings are an essential part of stock selection and information gathering.



Performance

The net asset value of the fund rose by 21.3% in the year to 31st March 2005, this equates to a total return of 24.7%
when the dividend is included. This beat our benchmark index, which produced a total return of 16.1%, by 8.6 percentage
points over the period.  It is gratifying to note that our record of out-performance is consistent and has been built up
over many years as the table below illustrates.



                                               3-year performance       5-year performance

Fund net asset value + dividend                            +23.9%                   +44.3%
Benchmark Index                                            +18.0%                   +11.2%



This out-performance has been recognised by others notably Standard & Poor's, an independent rating agency who rate
investment funds and companies.  They have awarded the Blue Planet Financials Growth and Income Investment Trusts four
star status.  This makes them the highest rated investment trusts in the Financials Sector.  Fund stars are based on
pure data and mathematics alone and measure the extent and consistency of a fund's out-performance, relative to its
sector.

Our Shares
Our share price rose 17.65% during the year to £1.1765.  With an undiluted net asset value of £1.5959 this equated to a
discount to net asset value of 26.3%. We do not believe that this discount is justified given the quality of our
portfolio, our past performance and our future prospects. Accordingly we believe our shares, are undervalued and should
be attractive to investors who like the financial sector and who want to buy into a quality, well managed portfolio at a
discount.

Shareholders can view the Company's share price and other information about it on the websites of Blue Planet Investment
Management (www.blueplanet.eu.com) and the London Stock Exchange (www.londonstockexchange.com).  To find the Company's
share price on the London Stock Exchange's website go to their Home page and type "BPFU" in the "Price Search" field.
Our share price is also published in the Financial Times under the section headed "Investment Companies".



Our Warrants

The price of our warrants rose by 221.6% over the year increasing from 127.5p per warrant unit to 410p per warrant unit.
Shareholders can view the Company's warrant price on the website of Blue Planet Investment Management
(www.blueplanet.eu.com).

Dividend

An interim dividend of 1.00p net (2004 1.25p) per ordinary share was paid on 14th January 2005.  A final dividend of
1.25p net (2004 2.15p) per ordinary share has been proposed, payable on 15th July 2005 to shareholders on the register
on 17th June 2005.  The Company's shares will be quoted ex dividend on 15th June 2005.  Income from investments was, as
anticipated, lower this year as a consequence of our decision to sell our bond holdings.  This switch into equities was
in order to increase the total return generated by the portfolio and we did so in the knowledge that whilst this would
increase our capital gains it would also temporarily reduce our dividend paying capacity. This strategy has already paid
off but unfortunately it does mean that we have had to cut the dividend.  However, we have sought to minimise this by
funding part of the final dividend from reserves and I hope that shareholders will be understanding and supportive of
this decision. We know the importance of dividends to shareholders and will increase them when we have sufficient
revenue to do so.  As I mentioned earlier, the dividends paid by our nine largest holdings rose by on average 93.1% in
2004 and we expect further increases in dividend income in the future.  That augurs well for future income and
dividends.

Shareholder Services
The range of services available to shareholders include a Savings Plan, a low cost dealing facility for shareholders
wishing to buy or sell shares in the Company and the Blue Planet ISA, which allows participants to benefit from the tax
advantages afforded to ISA's.  Please feel free to ask about these.

Borrowings and gearing
At 31st March 2005, the Company had borrowings of £750,000 and cash of almost £127,000 giving net debt of approximately
£623,000.  The purpose of the loan is to fund the acquisition of investments in the expectation that the return from
these will exceed the cost of the loan.  At the 31st March 2005, the net debt was equal to 28.9% of net asset value.
The Company's borrowings are denominated in Sterling.


Outlook

Your Company has made considerable progress in the past year, with our total return significantly outstripping its
benchmark index.  The companies we are invested in have performed well and our asset allocation has been sound.  We
continue to see excellent value in the financial sector particularly among the banks.  Historically, the financials
sector and, in particular, the banking sector has been one of the best performing sectors in the stock market.  As at
31st December 2004 the US Russell 3000 Financial Services sub-sector was ranked 1st out of 12 since records began 9 1/2
years ago (Source: Bloomberg).  The UK FTSE banking sub-sector was ranked 2nd out of 34 since records began 19 years ago
(Source: Bloomberg).  The Bloomberg European 500 Banking & Financial services sub-sector was ranked 5th out of 37 since
records began 8 years ago (Source: Bloomberg).  The message is clear, the banking sector has produced very high returns
to investors in the past and we believe that, for sound economic reasons, it will continue to do so in the future.

For many years the rating afforded to bank shares has been low compared to shares in other sectors.  In our view many
financial companies are now materially undervalued.  Investors have yet to appreciate the scope for further increases in
profits arising from revenue growth and future efficiency gains, achieved either on a stand alone basis or as a result
of consolidation.  They have also yet to realise the benefits that will accrue to those banks who end up as the winners
in the race that is currently underway for domination of the European banking market.  There have also been major
strides in risk management in recent years which are reducing the amplitude of the bad debt cycle, and improving the
'quality' of bank earnings.  This should pave the way to closing the gap in the rating of bank shares against other
sectors of the market.  All well constructed portfolios should have at their core a quality portfolio of shares in banks
and other financial companies.  As the best performing investment trust in the sector, we believe that we provide this
and should be seen as a core holding for investors.  We look forward to the future with a great deal of confidence.

Changes to the Listing Rules concerning the independence of Directors have meant that Philip Court has had to stand down
as a Director and Chairman, a role I have assumed from him.  I should like to place on record the Board's thanks to
Philip for his services to the Company since it started in 1996.  They have been considerable, he will be missed by
everybody and we wish him well.

I thank you for your continuing support and look forward to welcoming you to the Annual General Meeting on the 11 July
2005.


Victoria W Killay
Chairman
2 June 2005










Investment Manager's Report

Portfolio Performance Analysis

As has already been highlighted in the Chairman's statement, the Trusts produced a Total Return to shareholders of 24.7%
over the year, substantially more than the Fund's benchmark index which rose 16.1% in Sterling terms. This
out-performance has been achieved by a combination of sector specialisation, a rigorous investment process, a high
number of investment personnel per £1m of funds managed, sound asset allocation, discerning stock selection and the
positive effect of gearing.


Asset Allocation

Blue Planet Investment Management's investment process is top down.  First, we analyse and assess the economic prospects
for each of the countries within our geographical remit, in this case Europe.  The countries are then ordered by
economic prospects.  Once this is done we concentrate our efforts on those countries that offer the best growth
prospects identifying, analysing and assessing the prospects for the listed banks and other financial institutions in
those countries.  Capital is allocated to those banks and other financial institutions which we believe are likely to
offer the best total returns over the long term.
This process involves meeting with the senior management of companies we are contemplating investing in.  Where
possible, we also like to meet with local Central Banks and politicians to discuss the economic policies being pursued
in the countries concerned. Once we are invested in a company, we aim to meet regularly with its senior management to
monitor its progress.  Since the last year end we have visited financial institutions in Austria, Estonia, Hungary,
Italy, Poland, Portugal, Russia, Slovakia and the UK.  In addition, we had meetings in the UK with the management of
many overseas financial institutions.
Our economic analysis shows a clear disparity between the low tax, low cost, business friendly economies of Central and
Eastern Europe ("CEE") and the high tax, high cost, business unfriendly economies of Western Europe.  In general, the
growth prospects for CEE economies over the medium and long term look to be significantly better than those of most
Western European economies.
For this reason, we have reduced the percentage of our capital allocated to Western Europe and increased that invested
in CEE.  This reallocation has been particularly pronounced in respect of the UK banking and insurance sectors where our
investment has been reduced from 37.0% of the portfolio at the last year end to 11.5% and we intend to reduce this
further as we believe that the economic prospects for the UK are bleak over the next 5-7 years.  At the start of the
year we had no significant or direct investments in CEE.  By the end of the year 26% of the portfolio was invested in
Poland, 12% in Hungary and 7% in Austria.

The chart below illustrates the relative performances of the main stock indices in all of the major countries in Europe
over the Trust's financial year. As can be seen CEE stockmarkets have greatly out-performed the majority of Western
European indices from where funds were diverted.

Chart of European Indices - Price Performance

European Indices                 % increase Mar 04 to Mar 05

Portugal BVLX                                           14.6
Germany DAX                                             15.9
UK ASX                                                  16.0
Netherlands AEX                                         16.2
France CAC 40                                           18.2
Europe FT3FIN                                           20.2
Spain IBEX 35                                           22.1
Italy MIB30                                             26.5
Poland WIG                                              37.5
Belgium BEL20                                           39.9
Austria WBI                                             45.1
Hungary CHTX                                            56.6
Czech Rep PX50                                          63.1


Currency

The single most significant currency to which we are exposed is the Euro, with 43.6% of our investments being
denominated in that currency.  Over the year it appreciated by 2.7% against Sterling.
Our second most important currency is the Polish Zloty with 25.9% of our investments denominated in that currency.  The
Zloty appreciated by 16.2% against Sterling over the year, although our exposure to the currency only commenced on 9th
September 2004 when we made the first of our investments in Poland.
The largest single investment in the portfolio is OTP Bank in Hungary, representing 12.1% of the portfolio. The
Hungarian Forint also strengthened against Sterling over the year, rising in value by 3.1%
All of the above currency movements had a beneficial impact on our performance.  We believe that Sterling will continue
to weaken against a broad basket of currencies over the coming year as the deteriorating position of the UK economy
becomes more apparent to investors and as other countries do better relative to the UK.  The exception to this is
perhaps the Hungarian Forint.



Review of the Top 10 Investments at the year end


1. OTP Bank Rt
OTP Bank Rt ("OTP") is the largest bank in Hungary.  In 1990 the National Savings Bank and Commercial Bank became a
public company after being a wholly state-owned entity for 41 years.  OTP operates mainly in Hungary with retail and
commercial banking, insurance, real estate, but has recently expanded into Bulgaria, Slovenia, Serbia and Croatia.  In
our opinion it is a well run bank in a region of the World that offers good growth prospects. OTP is also a likely
acquisition target for larger banks who want to extend their presence in the region.

Our investment in OTP was purchased in April 2004 and since then and the Company's year end it generated an impressive
total return of 66.8%.

OTP's progress since privatisation has been one of outstanding achievement.  Its results for 2004, as the figures show,
were excellent with profits before taxation and earnings per share increasing by 61.6% and 66.5% respectively.  It also
made a 30.8% real return on equity, far higher than most Western European banks.  It also increased its dividend by
127.6% in 2004.

We expect OTP to continue to deliver in 2005 although the rate of growth will not match the levels seen in 2004, as the
Hungarian mortgage market slows down.  However, the bank has been diversifying its earnings out of Hungary and recently
purchased Croatia's Nova Banka and Serbia's Niska Banka, whilst further expanding its Romanian operations.  We see this
diversification as a positive for the Banks net profitability going forward.

This stock continues to offer good value.  On a prospective price to earnings ratio of  around 10 times 2005 earnings, a
cost to income ratio which has much room for improvement and operating in countries where GDP growth is estimated to be
more than double the Eurozone's, we believe OTP should continue delivering good returns to investors for some time yet.

Key statistics relating to this investment are given below:

For the year ended 31 December                     2004             2003           Change

Total Assets                                 HUF 4,167b         HUF 3,461b         +20.4%

Cost:Income Ratio                                 58.1%              65.2%         -710bp

Profits before Taxation                      HUF 165.9b         HUF 102.7b         +61.6%

Earnings per Share (fully diluted)              HUF 531            HUF 319         +66.5%

Dividends per Share                  HUF 146 (Proposed)          HUF 64.16        +127.6%

Dividend Cover                                     3.6x               5.0x

Return on Equity (real)                           30.8%              26.4%         +440bp




2. PKO Bank Polski S.A.

PKO Bank Polski (PKO BP) is the largest retail bank in Poland.  The bank has a broad customer base and the largest and
most evenly spread distribution network, giving the bank a dominant position in the Polish retail banking sector.  The
banks key strengths are in customer deposits, credit cards and mortgage lending.

The Polish government sold 38.5% of the bank through an Initial Public Offering on 10th November 2004 and your Company
acquired shares at this time.  The total return generated by this investment from its IPO price to the year end was
39.1%. We purchased additional shares after the IPO, and in the five months to the year end the total return was 16.4%

In 2005, PKO BP is continuing to implement its programme of restructuring and modernisation through rationalising the
large workforce and the employment of a new IT system.  It has a market leading position with great potential to improve
income, efficiency and profits in an economy which is forecast to be amongst the fastest growing in Europe over the
coming years.

Key statistics relating to this investment are given below:

For the year ended 31 December                      2004              2003         Change

Total Assets                                  PLN 88.76m        PLN 84.57m          +5.0%

Cost:Income Ratio                                  67.9%             68.5%          -60bp

Profits before Taxation                        PLN 1.85m         PLN 1.63m         +13.5%

Earnings per Share (diluted)                    PLN 1.51          PLN 1.19         +26.9%

Dividends per Share                     PLN 1 (Proposed)              None

Dividend Cover                                      1.5x              n.a.

Return on Equity                                   20.9%             20.0%          +90bp





3. Lloyds TSB Group PLC

Lloyds TSB Group PLC ("Lloyds") is the fifth largest bank in the UK in terms of total assets.  Lloyds was created in
1995 following the merger of TSB Group and the Lloyds Bank Group.  Its businesses provide a wide range of banking and
financial services in the UK and overseas, with the majority of its business in the UK.  In 2000, it acquired Scottish
Widows a leading supplier of long-term savings and protection products in the UK.  This was a poor acquisition from
which the Bank has struggled to recover.

In 2004 it made some progress on that front and on a continuing operations basis, its results were better. Once the
company adjusted its financial figures to exclude changes in economic assumptions, investment variance and discontinued
operations in Latin America and New Zealand, profit before tax from continuing operations was up 10%.

Our investment in Lloyds TSB plc was held and added to during the year, for its recovery potential, high dividend yield
and scope for further efficiency gains.  We also regard Lloyds TSB as a possible bid target for others.  The annual
total return to the Trusts of our investment in Lloyds was 25.6%. Lloyds also has a high dividend yield, making it
attractive for your Company.



Key statistics from the consolidated accounts for continuing operations relating to this investment are given below:


For the year ended 31 December                      2004              2003         Change

Total Assets                                   £279,843m    £252,012m    +11.0%

Cost:Income Ratio                                  51.1%             52.5%         -140bp

Profits before Taxation                          £3,363m      £3,062m     +9.8%

Earnings per Share                                41.8 p            37.4 p         +11.8%

Dividends per Share                               34.2 p            34.2 p             0%

Dividend Cover                                      1.2x              1.1x

Return on Equity                                   23.5%             23.1%          +40bp



4. ABN Amro Holdings NV

ABN Amro Holdings NV ("ABN Amro") is the 18th largest bank in the world in terms of total assets.  The group operates in
three business units; Consumer & Commercial Clients, Private Clients and Asset Management & Wholesale Clients. ABN Amro
is headquartered in the Netherlands, but has a presence in 58 countries, with over 3,000 branches and 60% of its
employees based outside of its home country. Its key markets are the Netherlands, the US Midwest and Brazil.

This investment has been held throughout the year, and over this period it produced a total return of 14.7%.

Despite the low economic growth in Europe, in particular in the Netherlands, the Group posted strong financial results
in 2004, with revenues growing in every business apart from US Mortgages. Earnings per share were up 26.3% over the year
to €2.45 a share and the dividend was increased by 5.3%.

Their strategy going into 2005 is on developing the mid-market segment of both the Consumer & Commercial markets, as
well as reducing costs through a realignment and simplification of the organisation to increase the group's return on
equity.  Management has set a target of an average return on equity in excess of 20% over the next 4 years.  Early signs
for the Group are encouraging with a net profit growth of 8% in the first quarter of this year.  ABN Amro is also
looking to diversify earnings and improve growth further through its proposed acquisition of the Italian bank, Banco
Antonveneta.

ABN Amro is currently on a prospective price to earnings ratio of 9.2x (Bloomberg) which places this bank at a
significant discount to other European banks.  Such a low valuation makes the bank very vulnerable to takeover, and we
do not expect to see it remain independent for much longer.  We also see considerable scope for further cost efficiency
gains with a consequent boost to profits. ABN Amro's cost to income ratio was 69.2% in 2004, that is some 29% above the
level where we believe it should be.  RBS has a cost to income ratio of 40.8%.


Key statistics from the consolidated accounts relating to this investment are given below:


For the year ended 31 December                      2004              2003         Change

Total Assets                                  €608,623 m   €560,437 m     +8.6%

Cost:Income Ratio                                  69.2%             67.0%        +220 bp

Profits before Taxation                         €5,451 m     €4,918 m    +10.8%

Earnings per Share (diluted)                       €2.45        €1.93    +26.9%

Dividends per Share                                €1.00        €0.95     +5.3%

Dividend Cover                                      2.5x              2.0x

Return on Equity                                   30.8%             27.7%        +310 bp





5. Société Générale


Société Générale is the number one non-mutual retail banking group in France, third largest corporate and investment
bank in the Eurozone and the fourth largest Eurozone bank in terms of asset management.  Société Générale derives the
majority of its income from three core divisions; Retail, Banking & Financial Services 46.3%, Corporate & Investment
Banking 42.5% and Global & Investment Banking 11.2%.  The Group has 16.4 million customers in 45 countries.

In an environment that was improving but still difficult in Europe, the Group posted a significant increase in earnings
per share, up 26% to 7.65 Euros in 2004, from €6.07 in 2003.  It also increased its dividend by 32%.  Société Générale
further diversified its income in 2004 through the acquisition of a 50.01% stake in the General Bank in Greece and an
increase in its investment in BRD, the Development Bank in Romania.  The Group has also continued with its organic
growth plans in the Czech Republic, Romania, Bulgaria, Russia and Egypt.

Going forward the prospects for Société Générale are good.  The bank continues to expand into markets where growth is
expected to far exceed its home country.  To complement this growth strategy a continued improvement in the Groups cost
to income ratio to bring it in parallel with its UK peers should help the Group's profitability.

This investment provided us with a total return of 22.9% over the period.


Key statistics from the consolidated accounts relating to this investment are given below:

For the year ended 31 December                      2004              2003         Change

Total Assets                                  €601,355 m   €539,644 m    +11.4%

Cost:Income Ratio                                  66.8%             68.4%        -160 bp

Profits before Taxation & exceptional items €5,069 m     €4,283 m    +18.4%

Earnings per Share                                 €7.65        €6.07    +26.0%

Dividends per Share                                €3.30        €2.50    +32.0%

Dividend Cover                                      2.3x              2.4x

Return on Equity                                   18.9%             16.2%        +270 bp


6. BNP Paribas S.A.

BNP Paribas S.A. ("BNP Paribas") is the largest French bank in terms of profit and market capitalisation.  Operating in
over 85 countries it employs in excess of 94,000 employees, with the majority in Europe.  The company derives its
strength from three core businesses; Corporate & Investment Banking, Retail Banking and Asset Management & Services.

BNP Paribas posted a good set of results for 2004, with earnings per share rising 29.2% to €5.53. Corporate & Investment
Banking pre-tax profits were up 30.3%, the Retail Banking income before tax was up 12.6%, and the Asset Management &
Services pre-tax profits were up 37.3%.  It continues to focus on reducing its cost income ratio which improved by 130
basis points from 2003 to 2004, although there are still considerable cost savings to be extracted from the business.
BNP Paribas' active dividend distribution policy led to an increase in the dividend of 37.9% in 2004.

We have held this stock throughout the year and earned a total return of 16.2% on it.

In our view BNP Paribas will continue to deliver good profits and dividend growth in 2005 which has started well with
net income rising 56.4% in the first quarter as its cost to income ratio was slashed by 550 basis points to 56.1%.


Key statistics from the consolidated accounts relating to this investment are given below:

For the year ended 31 December                      2004              2003         Change

Total Assets                                  €905,938 m   €783,076 m    +15.7%

Cost:Income Ratio                                  61.6%             62.9%         -130bp

Profits before Taxation                         €6,905 m     €5,586 m    +23.6%

Earnings per Share (diluted)                       €5.53        €4.28    +29.2%

Dividends per Share                     €2.00 (Proposed)        €1.45    +37.9%

Dividend Cover                                      2.8x              3.0x

Return on Equity                                   16.8%             14.3%         +250bp




7. Bank Austria Creditanstalt

Bank Austria Creditanstalt ("Bank Austria") is the number one bank in Austria and number three in Poland in terms of
total assets.  The bank is majority owned (78%) by the Bayerische Hypo-und Vereinsbank AG (HVB Group), a German bank.
59% of the Group's income comes from Austria and 41% from the CEE region.

2004 was a good year for Bank Austria with net income and earnings per share increasing by 29% and 20% respectively.
The bank also rewarded shareholders with a 44.1% increase in its annual dividend to €1.50 per share.

2005 looks set to be another good year for Bank Austria with first quarter earnings up 54% year on year to €207m and we
continue to like this stock for a variety of reasons.  The quality of its management, the geographic disposition and
quality of its businesses and its potential to further increase its efficiency and profits by reducing its cost to
income ratio which stood at 64.9% in 2004. By comparison HBOS, RBS and Northern Rock have cost to income ratios of
37.9%, 40.8% and 30.4% respectively.

In the 6 ½ months from the date of purchase to the year end, Bank Austria share's generated a total return of 43.1% for
the fund.


Key statistics from the consolidated accounts relating to this investment are given below:

For the year ended 31 December                      2004               2003        Change

Total Assets                                   €146,516m     €137,053m            +6.9%

Cost:Income Ratio                                  64.9%              69.9%        -500bp

Profits before Taxation                            €836m         €648m           +29.0%

Earnings per Share (basic)                         €4.09         €3.40           +20.3%

Dividends per Share                                €1.50         €1.02           +47.1%

Dividend Cover                                      2.7x               3.3x

Return on Equity                                    9.7%               8.7%        +100bp




8. Bank Przemyslowo-Handlowy BPH

Bank Przemyslowo-Handlowy BPH ("BPH") is the third largest lender in Poland by total assets as well as number of
branches.  The bank provides financial services, including advisory, investment and insurance products for its 1.3
million private, corporate and institutional clients.  The bank is majority owned (71.2%) by Bank Austria Creditanstalt
AG which is part of Bayerische Hypo-und Vereinsbank AG.

2004 was an extremely successful year for Bank Przemyslowo-Handlowy BPH.  It grew the business on all fronts, cut its
cost to income ratio by 10.5%, increased earnings per share by 144% and its dividend by 521.4%.

The Bank's strategy is to improve operational effectiveness by strengthening a sales-orientated corporate culture and
building relationships with customers.  Throughout 2004 it improved its market share in key products and has continued
this progress into 2005.  In 2004 mortgage loans volume increased 40.8% to PLN 6bn equating to a market share of 20.0%,
up from 18.6% in 2003. Total corporate loan volumes increased 6.8% to PLN 16.7bn with a market share of 11.7%, up from
10.5% in 2003.   While achieving this growth, the bank also managed to cut its cost income ratio by a huge 1,050 basis
points to 53.3% making it is one of the most efficient banks in Poland.

In the 7 months from the date of purchase to the year end BPH's shares generated a total return of 22.5% for the fund.


Key statistics from the consolidated accounts relating to this investment are given below:

For the year ended 31 December                      2004               2003        Change

Total Assets                                   PLN 53.9m          PLN 48.4m        +11.4%

Cost:Income Ratio                                  53.3%              63.8%     -1,050bps

Profits before Taxation                       PLN 1,021m           PLN 604m        +69.0%

Earnings per Share                             PLN 27.45          PLN 11.25       +144.0%

Dividends per Share                              PLN 8.7            PLN 1.4       +521.4%

Dividend Cover                                      3.2x               8.0x

Return on Equity                                   14.0%               6.2%        +780bp





9. Bank Pekao S.A.

Bank Pekao S.A. ("Bank Pekao") is the second largest bank in Poland.  It primarily operates in Poland, but also has
branches in France and the Ukraine.  Unicredito Italiano S.p.A owns 53% of the bank.
In 2004 the Bank Pekao Group achieved its highest ever net profit, which translated in to an increase of 45.6% in
earnings per share.  It also increased its dividend by 53.1% to PLN6.40 per share.  The main growth drivers were an
improvement in commercial activity, which resulted in higher income from commissions and fees, lower credit risk costs
resulting from improved credit risk management and a change in provisioning policy and an improved cost to income ratio.
Bank Pekao's plans for 2005 include a major programme to increase its revenues, by adding to its sales force and
utilising its IT capabilities and new call centre put in place in 2004 to increase product cross-selling opportunities,
whilst maintaining its existing high levels of cost efficiency.
In the 7 months from the date of purchase to the year end, Pekao's shares generated a total return of 23.0% for the
fund.


Key statistics from the Group results relating to this investment are given below:

For the year ended 31 December                       2004              2003        Change

Total Assets                                  PLN 59,334m       PLN 63,013m         -5.8%

Cost:Income Ratio                                   55.1%             56.7%        -160bp

Profits before Taxation                        PLN 1,512m        PLN 1,276m        +18.5%

Earnings per Share                               PLN 8.08          PLN 5.55        +45.6%

Dividends per Share                              PLN 6.40          PLN 4.18        +53.1%

Dividend Cover                                       1.3x             1.3 x

Return on Equity                                    18.4%             13.1%        +530bp



10. Dexia NPV

Dexia NPV ("Dexia") is the world's largest player in the local authority finance market.  In addition it also has a
retail bank.  Dexia is organised into four business lines, Public Finance, Personal (retail) Financial Services,
Investment Management & Insurance Services and Treasury & Financial Markets.  Dexia focuses on being a low risk and
efficient bank, which has led to it having one of the highest credit ratings in the banking industry.  It operates in
Europe, Asia and the US.
Dexia achieved excellent results through strong commercial and financial performances across all their business lines.
Earnings per share were up 27.4% to 1.58 Euros per share and it increased its dividend by 17%.  Overall costs for the
year were down, and Dexia's cost income ratio improved by 330 basis points to 55.9%.
In 2005 they foresee continued growth in the local authority's debt market and are expanding geographically in Central
and Eastern Europe, Canada, Australia and Japan.
We held shares in Dexia throughout the year and earned a total return of 38.6% from them.


Key statistics from the consolidated accounts relating to this investment are given below:

For the year ended 31 December                       2004              2003        Change

Total Assets                                   €389,155 m   €349,888 m           +11.2%

Cost:Income Ratio                                   55.9%             59.2%        -330bp

Profits before Taxation                          €2,151 m     €1,929 m           +11.5%

Earnings per Share                                  €1.58        €1.24           +27.4%

Dividends per Share                      €0.62 (Proposed)        €0.53           +17.0%

Dividend Cover                                       2.5x              2.3x

Return on Equity                                    19.8%             16.5%        +330bp




Summary

Of our top ten holdings on average, profits before tax rose by 26.6% and earnings per share rose by 42.5%.  Dividends
increased by 93.1%, excluding PKO BP who proposed to pay a dividend for the first time in 2004.

Transactions

Over the year, sales of investments realised £2.1m and purchases totalled £2.2m.



Blue Planet Investment Management Ltd
2 June 2005





Statement of Total Return

(incorporating the revenue account)

for the year ended 31 March 2005



               Revenue       Capital        2005            Revenue         Capital         2004
                    (£)           (£)       Total                (£)             (£)        Total

Capital gains / (losses) on investments

Net realised (losses) / gains
                     -     (176,171)    (176,171)                 -           120,309      120,309

Unrealised gains on investments
                     -      612,393      612,393                  -           357,507      357,507

Exchange gains / (losses)
                     -        1,255        1,255                  -            (3,960)      (3,960)


Net capital gains on investments
                     -      437,477      437,477                  -           473,856      473,856

Income from investments
                 82,555           -       82,555            117,669                 -      117,669

Bank interest receivable
                  7,000           -        7,000              2,209                 -        2,209

Gross revenue and capital gains
                 89,555     437,477      527,032            119,878           473,856      593,734

Administrative expenses
                (46,755)    (15,624)     (62,379)           (49,047)          (14,857)     (63,904)

Net return before interest
payable and taxation
                 42,800     421,853      464,653             70,831           458,999      529,830

Interest payable
               (22,443)     (22,443)     (44,886)           (22,505)          (22,504)     (45,009)

Return on ordinary activities
before taxation
                20,357      399,410      419,767             48,326           436,495      484,821

Taxation on return on ordinary activities
                (4,750)           -      (4,750)             (1,046)                -       (1,046)

Return on ordinary activities
after taxation
                15,607      399,410      415,017             47,280           436,495      483,775

Dividends

Interim dividend of 1.00p paid (1.25p - 2004)
              (13,516)            -      (13,516)           (16,981)                -      (16,981)

Final dividend of 1.25p (2.15p - 2004)
              (16,895)            -      (16,895)           (29,208)                -      (29,208)


              (30,411)            -      (30,411)           (46,189)                -      (46,189)

Transfer (from) / to reserves
              (14,804)      399,410      384,606              1,091           436,495      437,586


Return per ordinary share - basic
                 1.15p       29.51p       30.66p              3.48p            32.08p       35.56p

Return per ordinary share - diluted
                 1.15p       29.51p       30.66p              3.48p            32.08p       35.56p



The revenue column of this statement represents the Profit & Loss account of the Company.

All revenue and capital items in the above statement derive from continuing operations.












Balance Sheet

at 31 March 2005
                                                                2005                         2004
                                                                 (£)                             (£)
Fixed assets

Equity investments                                         2,787,651                    1,931,472

Non - equity investments                                           -                      274,336

                                                           2,787,651                    2,205,808
Current assets

Debtors                                                       23,081                       44,635

Cash at bank                                                 126,774                      321,022

                                                             149,855                      365,657

Creditors: amounts falling due within one year               (30,569)                     (43,052)

Net current assets                                           119,286                      322,605

Total assets less current liabilities                      2,906,937                    2,528,413

Creditors: amounts falling due after more than one year     (750,000)                    (750,000)

Net assets                                                 2,156,937                    1,778,413



Capital and reserves

Called-up share capital                                      135,850                      135,850

Share premium account                                      1,168,746                    1,168,746

Other reserves

Capital reserve - realised                                   277,541                      491,779

Capital reserve - unrealised                                 491,600                     (122,048)

Capital redemption                                             8,450                        8,450

Warrant reserve                                               63,374                       63,374

Revenue reserve                                               11,376                       32,262

Equity shareholders' funds                                 2,156,937                    1,778,413

Net asset value per ordinary share - basic                   159.59p                      130.91p

Net asset value per ordinary share - diluted                 149.78p                      125.84p


Victoria W Killay
Chairman






Cash Flow Statement

At 31 March 2005
                                                                2005                         2004
                                                   (£)            (£)           (£)            (£)

Operating activities

Investment income received                                    97,849                      101,730

Interest received                                              7,169                        2,604

Investment management and administration fees paid           (33,824)                     (32,432)

Cash paid to and on behalf of directors                       (3,574)                      (2,923)

Other cash payments                                          (24,905)                     (26,376)

Net cash inflow from operating activities                     42,715                       42,603

Servicing of finance

Interest paid                                                (45,261)                     (44,885)

Taxation

Taxation recovered                                             1,469                          735

Capital expenditure and financial investment

Purchase of investments                     (2,211,632)                    (684,009)

Sale of investments                          2,066,011                      491,323

                                                            (145,621)                    (192,686)

Cash outflow before financing                               (146,698)                    (194,233)

Equity dividend paid                                         (42,723)                     (47,657)

Financing

Purchase of own shares                          (6,082)                      (5,181)

Proceeds from share issue                            -        (6,082)           120        (5,061)


Decrease in cash                                            (195,503)                    (246,951)












Notes
1.      The financial information set out in this announcement does not constitute the Company's statutory accounts for the
years ended 31 March 2005 or 31 March 2004 but is derived from those accounts.  Statutory accounts for 2004 have been
delivered to the Registrar of Companies and those for 2005 will be delivered following the Company's Annual General
Meeting.  The  auditors  have  reported  on  those  accounts; their  reports  were  unqualified and did not contain a
statement under s237(2)or(3)Companies Act 1985.


2.      Return and Net Assets per ordinary share

                                                                           2005      2004
                                                                             (£)       (£)
The return per ordinary share is based upon the following figures:

Revenue return                                                           15,607    47,280

Capital return                                                          399,410   436,495

Weighted average number of ordinary shares
in issue during the year - basic                                      1,353,564 1,360,304

Weighted average number of ordinary shares
in issue during the year - diluted                                    1,353,564 1,360,304


The difference between the basic and diluted number of ordinary shares is derived from the total number of warrants in
issue multiplied by a factor based on the average price of the ordinary shares in the year and the exercise price of the
warrants, as required by FRS 14.  No dilution occurred in the current year as the warrant exercise price exceeded the
average market price of one share during the year.  The net asset value per ordinary share is calculated on 1,351,570
being the number of ordinary shares in issue at the year end after deducting the treasury shares held.  Net asset
dilution occurs from the potential exercise of outstanding warrants and is assumed only to take place if the net assets
per share exceed the exercise price of £1.



3.      Dividend

A final dividend of 1.25p net (2004 2.15p) per ordinary share has been proposed, payable on 15th July 2005 to
shareholders on the register on 17th June 2005.  The Company's shares will be quoted ex dividend on 15th June 2005.