Half-yearly report

ADVANCE FOCUS FUND LIMITED

PRELIMINARY ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS TO 31
MARCH 2007

CHAIRMAN'S STATEMENT

Over the six months ended 31 March 2007 we outperformed our
benchmark. Your Company's net asset value ("NAV") per share rose by
9.8% and the share price rose by 10.0%, both these numbers take into
account re-investment of the penny a share dividend we announced in
December 2006 and paid in February 2007. The benchmark, the FTSE
All-Share Total Return Index, rose by 9.2%.

The revenue return for the period was 0.5p per share. The directors
are not declaring an interim dividend. A final dividend will be
considered at the time of publication of the Company's results for
the year ending 30 September 2007.

The UK market was strong over the period. Smaller and medium sized
companies outperformed once again, defying the predictions of many
commentators. For the most part the market seemed to move upwards in
a straight line but fears of a liquidity squeeze, triggered by
problems in the US sub-prime lending market, gave rise to a temporary
setback at the end of February. Takeover activity, both real and
rumoured, has been a major driver of markets, and your portfolio has
benefited from this to some extent.

The Bank of England has been raising rates in response to
inflationary pressures but, to date, this seems to have had little
impact on domestic demand and so the likelihood is that rates will
continue to rise from here.

Since the period end, the Company's NAV per share on a total return
basis has increased by 4.3% against an increase in the benchmark of
6.8%.  We remain optimistic that the Company's portfolio will
continue to fulfil the investment objective in the medium term.


Christopher Clark
18 June 2007


INCOME STATEMENT



                            6       6      6         6       6      6
                       months  months months    months  months months
                       to  31   to 31  to 31    to  31   to 31  to 31
                        March   March  March     March   March  March
                         2007    2007   2007      2006    2006   2006

                      Revenue Capital  Total   Revenue Capital  Total
                        £'000   £'000  £'000     £'000   £'000  £'000

Gains on investments
Realised                    -   2,272  2,272         -   2,208  2,208
Unrealised                  -     913    913         -   2,461  2,461
                            -   3,185  3,185         -   4,669  4,669

Income
- from                    387       -    387       505       -    505
investments
- bank interest            23       -     23        15       -     15

Investment management   (172)       -  (172)     (147)       -  (147)
fees
Performance fee             -    (21)   (21)         -   (173)  (173)
Other expenses          (114)       -  (114)     (118)       -  (118)

Return on ordinary        124   3,164  3,288       255   4,496  4,751
activities


Return per redeemable   0.49p  12.59p 13.08p     1.00p  17.58p 18.58p
preference share





All capital and revenue items in the above statement derive from
continuing operations.  No operations were acquired or discontinued
during the period.

A Statement of Total Recognised Gains and Losses is not required as
all gains and losses of the Company have been reflected in the above
statement.




SUMMARISED BALANCE SHEET


                                       At           At             At
                                 31 March     31 March   30 September
                                     2007         2006           2006
                                    £'000        £'000          £'000


  Fixed assets - Investments       35,406       31,986         31,493
  at market value

  Current assets                    1,398        1,291          2,297
  Current liabilities               (225)        (133)          (107)

  Net current assets                1,173        1,158          2,190

  Performance fee provision          (21)        (173)          (162)

  Total net assets                 36,558       32,971         33,521

  Share capital                       252          252            252
  Capital Redemption Reserve           17           17             17
  Share premium account            19,052       19,052         19,052
  Share purchase reserve            6,217        6,217          6,217
  Capital reserves                 10,722        7,328          7,557
  Revenue reserve                     298          105            426
  Equity shareholders' funds       36,558       32,971         33,521

  Net asset value per             145.43p      131.16p        133.35p
  redeemable preference share
  No. of redeemable preference 25,137,453   25,137,453     25,137,453
  shares in
  issue


            RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS



                               6 months to   6 months to   Year ended
                                  31 March      31 March      30 Sept
                                      2007          2006         2006
                                     £'000         £'000        £'000

Profit for the period                3,288         4,751        5,302
Purchase of Company's own
preference shares                        -       (1,851)   (1,852)
Dividend paid                        (251)             -            -
                                     3,037         2,900        3,450

Opening shareholders' funds         33,521        30,071       30,071

Closing shareholders' funds         36,558        32,971       33,521






                         CASH FLOW STATEMENT



                                         6 months to      6 months to
                                       31 March 2007    31 March 2006
                                               £'000            £'000
Operating Activities
Cash inflow from investment income               442              449
and bank interest
Cash outflow from management expenses          (487)            (277)

Cash inflow from disposal of                  10,328            8,412
investments
Cash outflow from purchase of               (10,476)          (7,188)
investments

Net Cash flow from Operating                   (193)            1,396
Activities

Financing
Equity dividend paid                           (251)                -
Repurchase of share capital                        -          (1,851)

Net cash flow from financing                   (251)          (1,851)

Opening balance                                1,465            1,530
Cash outflow                                   (444)            (455)
Balance at 31 March                            1,021            1,075




NOTES

The Company is a closed-ended investment company incorporated and
resident in Guernsey.

Accounting policy
The Company  presents  its  accounts in  accordance  with  applicable
United Kingdom accounting standards and the Statement of  Recommended
Practice  'Financial  statements   of  investment  trust   companies'
('SORP') issued  by  the  Association of  Investment  Companies.  The
accounts have been  prepared in  accordance with  the SORP  as it  is
considered best practice to do  so although, as an overseas  company,
the Company does not meet all the  criteria set out in the SORP.  The
Company is not an investment trust.

Investments
Investments have been  classified as 'fair  value through profit  and
loss'. Securities of companies quoted on a recognised stock  exchange
are valued by  reference to  their quoted  market bid  prices at  the
close of the period. Changes in fair value are included in the Income
Statement as  capital  items.   Transaction  costs  incurred  on  the
acquisition and  disposal of  investment are  charged to  the  Income
Statement as capital items.

Return per redeemable preference share
The return per redeemable preference  share is based on the  weighted
average of 25,137,453 redeemable preference shares (2006:  25,577,012
redeemable preference shares) in issue during the period.

Dividend
The final dividend for the year ended 30 September 2006 of 1p per
redeemable preference share was paid on 7 February 2007.  In
accordance with UK accounting standards the dividend has been
recognised in the interim accounts for the six months ended 31 March
2007.

Performance Fee
The manager is entitled to an annual performance fee of 10% of any
out performance over the Benchmark of the Company. The fee is
conditional upon the NAV per share (with dividends reinvested) having
increased since the end of the last period in which a performance fee
was payable. The performance fee is capped at 2.5% of the Company's
net assets, at the point at which the fee calculation is made.

Status of this report
These financial statements are not the Company's statutory accounts.
They are unaudited. The interim report will be sent to shareholders
and copies will be made available to the public at the registered
office of the Company and at the address of the UK administration
agent.

The interim report was approved by the Board of directors on 18 June
2007.


SECRETARY AND ADMINISTRATOR
Legis Corporate Services Limited
1 Le Marchant Street
St. Peter Port
Guernsey
GY1 4HP


UK ADMINISTRATION AGENT
Cavendish Administration Limited
145-157 St John Street
London
EC1V 4RU

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