Interim Results

Advance Focus Fund Ltd
12 June 2006


ADVANCE FOCUS FUND LIMITED


PRELIMINARY ANNOUNCEMENT OF INTERIM RESULTS
FOR THE SIX MONTHS TO 31 MARCH 2006


CHAIRMAN'S STATEMENT

I am pleased to report positive performance of the portfolio over the six months
ended 31 March 2006. The net asset value increased from 111.3p per share at the
start of the period to 131.2p as at 31 March 2006.  This represents an increase
of 17.9%, against an increase in the FTSE All-Share Total Return Index of 12.7%.


The revenue return for the period was 1.0p per share. The directors do not
intend to declare an interim dividend at this stage, but a final dividend will
be considered in the light of the results for the year.


The period under review was a good one for the UK stockmarket, driven in recent
months by corporate activity and the strength of resource related stocks  in
response to soaring commodity prices. The second half of the period saw strong
performance from certain holdings within the Company's portfolio. However, the
market has fallen back in recent weeks and this has inevitably had some impact
on the value of the portfolio.  The Company's net asset value per share as at 9
June 2006 was 124.8p.  Tightening liquidity has made the market sensitive to any
hints of less positive news, but the basic economic scenario still looks
satisfactory.


The Manager has constructed a diverse portfolio of stocks, each facing its
challenges, but often dependent on company-specific factors, rather than general
business trends, and all holdings have the potential for significant upside.
Encouragingly, the Manager has recently been booking profits from some
situations which have already matured and the directors are confident that  this
progress will continue.


Christopher Clark

12 June 2006


INCOME STATEMENT

                             6 months to   6 months to  6 months to     6 months to   6 months to  6 months to
                                 31 March     31 March     31 March         31 March     31 March     31 March
                                     2006         2006         2006             2005         2005         2005
                                  Revenue      Capital        Total          Revenue      Capital        Total
                                    £'000        £'000        £'000            £'000        £'000        £'000

Gains on investments

Realised                                -        2,208        2,208                -        1,385        1,385
Unrealised                              -        2,461        2,461                -          140          140

                                                 4,669        4,669                -        1,525        1,525

Capital losses on currency              -            -            -                -         (70)         (70)
movements


Income - from investments             505            -          505                -            -            -
       - bank interest                 15            -           15               35            -           35

Investment management fees          (147)            -        (147)                -        (110)        (110)
Performance fee                         -        (173)        (173)                -         (66)         (66)
Other expenses                      (118)            -        (118)             (97)            -         (97)

Return on ordinary                    255        4,496        4,751             (62)        1,279        1,217
activities


Return per redeemable               1.00p       17.58p       18.58p          (0.38)p        7.85p        7.47p
preference share


The total column of this statement is the profit and loss account of the company.

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
                                                  2006                2005                   2005
                                                 £'000               £'000                  £'000


Fixed assets - Investments at market            31,986               8,458                 28,683
value

Current assets                                   1,291               9,683                  1,871
Current liabilities                              (133)                (35)                  (483)

Net current assets                               1,158               9,648                  1,388

Performance fee provision                        (173)                (66)                      -

Total net assets                                32,971              18,040                 30,071

Share capital                                      252                 163                    269
Capital redemption reserve                          17                   -                      -
Share premium account                           19,052               7,614                 19,052
Special purchase reserve                         6,218               8,069                  8,069
Capital reserves                                 7,327               2,584                  2,831
Revenue reserve                                    105               (390)                  (150)
Equity shareholders' funds                      32,971              18,040                 30,071


Net asset value per redeemable
preference share                               131.16p             110.67p                111.97p
                                               
Net asset value per redeemable
preference share on a portfolio bid
price valuation basis                          131.16p             110.67p                111.27p

                                               
No. of redeemable preference shares in      25,137,453          16,300,000             26,855,495
issue



RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS

                                                 6 months to         6 months to        Year ended
                                                    31 March            31 March           30 Sept
                                                        2006                2005              2005
                                                       £'000               £'000             £'000

Profit for financial period/ year                      4,751               1,217             1,703
Placing of Company's own preference shares*                -                   -            11,545
Purchase of Company's own preference shares          (1,851)     -                   -

                                                       2,900               1,217            13,248

Opening shareholders' funds                           30,071              16,823            16,823
Closing shareholders' funds                           32,971              18,040            30,071


* net of share issue expenses

CASH FLOW STATEMENT

                                                                        6 months to         6 months to
                                                                      31 March 2006       31 March 2005
                                                                              £'000               £'000

Operating Activities
Cash inflow from investment income and bank interest                            449                  21
Cash outflow from management expenses                                         (277)               (251)

Cash inflow from exchange gains                                                   -                 144
Cash inflow from disposal of investments                                      8,412               9,363
Cash outflow from purchase of investments                                   (7,188)             (1,437)

Net Cash flow from Operating Activities                                       1,396               7,840

Financing
Repurchase of share capital                                                 (1,851)                   -

Net cash flow from financing                                                (1,851)                   -

(Decrease) /Increase in Cash                                                  (455)               7,840


NOTES


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


Accounting policy

These financial statements have been presented using UK GAAP. They have been
modified since the last reporting period, as a result of changes to UK
accounting standards to harmonise with International Financial Reporting
Standards (IFRS). Investments have been valued on a bid price basis with effect
from the start of the Company's current financial year, commencing 1 October
2005. As at 30 September 2005 securities were valued at their mid market prices.
The difference between bid and mid price valuations as at 30 September 2005 was 
0.65% of the portfolio. As at 31 March 2005 all investments held were open-ended
funds which were valued at NAV. Prior periods have not been restated.


Return per redeemable preference share

The return per redeemable preference share is based on the weighted average of
25,577,012 redeemable preference shares (2005; 16,300,000 redeemable preference
shares) in issue during the period.


Purchase of own shares

During October and November 2005 the company purchased 1,718,042 of its own
shares for cancellation at an aggregate cost of £1,851,000.


Dividend

The directors do not recommend an interim dividend.


Performance

Any bid price data for the comparative periods in this report is actual.  For
statistical data published from month to month at points occurring before 1
January 2006, the Company uses a standard conversion ratio to convert mid price
valuations to bid, in accordance with the recommendations of the Association of
Investment Trust Companies.


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 being greater than 111.79p and 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 on 12 June 2006.


SECRETARY AND ADMINISTRATOR

Legis Corporate Services Limited

1 Le Marchant Street

St. Peter Port

Guernsey

GY1 4HP



UK ADMINISTRATION AGENT

Cavendish Administration Limited

Crusader House

145-157 St John Street

London

EC1V 4RU


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