Final Results

Midas Income & Growth Trust PLC
12 July 2006


MIDAS INCOME AND GROWTH TRUST PLC
PRELIMINARY ANNOUNCEMENT OF UNAUDITED ANNUAL RESULTS
for the year ended 30 April 2006


Chairman's Statement


Background

This year has been one of major change and progress for the Trust as both a
change of name and new investment policy were introduced following the
appointment of Midas Capital Partners ('Midas') as investment managers. The new
investment policy aims to achieve an absolute return, with low volatility, from
a multi asset, highly diversified range of investments. It is intended that
returns will be delivered to shareholders through a combination of a relatively
high level of income, together with capital growth. The initial target was for a
total return in excess of 8% per annum with a gross dividend yield of 4.25%,
based on the net asset value at the time of the change of manager (it should be
noted that the statement of target gross dividend yield is not a profit
forecast).

Midas, as part of their commitment to the Trust, had given undertakings to the
Board that they would, within 12 months of their appointment, endeavour to
increase the size of the Trust. I am very pleased to note that this exercise was
accomplished by means of a C Share issue in February which doubled the size of
the Trust. The C Share portfolio was largely invested by early March, and the C
Shares were duly merged with the existing Ordinary shares at prevailing net
asset values on 28 April 2006. I would like to take this opportunity to welcome
the new shareholders in the Trust and also to thank existing shareholders for
their continuing support.

At the Board level, Adam Cooke who was appointed a Director earlier in the year,
has already made an invaluable contribution and I would like to thank both Adam
and Ian Davis for their commitment and support over this period of repositioning
and expansion of the Company.

Performance

Midas assumed their role as investment managers to the Trust on 19 August 2005
and have taken great care to ensure that the process of portfolio realignment,
which was largely completed by the end of October, was handled very carefully so
as to preserve value. In addition the C Share issue proceeds were committed
speedily and in a cost effective manner. It is with great pleasure that I can
report that for the year the Company's undiluted net asset value total return,
with dividends reinvested, was 15.6% (after taking into account one-off
reorganisation costs). Over the period since 19 August 2005 the net asset value
total return has been 8.9%, which compares favourably with the benchmark return
(8% per annum) of 6.3%. The Trust's share price has risen by 29.2% over the year
and by 14.8% since Midas took over as investment manager. These figures improve
to 31.9% and 16.8% respectively, with net dividends reinvested. The increase in
the size of the Trust, following the C share issue in February, together with
the new lower basic fee paid to the investment manager, have led to the Trust's
Total Expense Ratio ('TER') falling to 2.2% (or 2.5% including the performance
fee due to the manager). This is a significant improvement over the comparable
figure of 2.7% in 2005.  Shareholders are likely to benefit from a further fall
in TER in 2006.

I am also pleased to report that the discount to net assets, on which the
Trust's shares have traded in previous years, has been eliminated. The Company's
shares have been trading at a small discount or premium throughout the period
from 19 August 2005, and stood at a premium of 2.5% at the year end. Your Board,
its advisers and investment managers are committed to ensuring that the Trust's
shares do not trade at a wide discount to asset value in the future. To this end
shareholder approval to buy back up to 14.99% of the Trust's shares was sought,
and approval given by shareholders, at the Annual General Meeting in August
2005.

Market Summary

In this year's Interim Report I commented on the resilience of equity markets
around the world, in the face of rising interest rates and strength in oil and
commodity prices. Indeed the rise in equity markets seen since March 2003
continued well into the early part of 2006. However, bond markets began to
reflect a slightly less benign environment in February, as yields began to rise.
By late April the build up of inflationary pressures and hawkish stance by the
new Chairman of the Federal Reserve Board in the United States provided a
catalyst for a setback and significant uplift in volatility for equity markets.
This market environment has continued through to the time of writing this
report. The remarkable tolerance of investors to embrace risk in an environment
of easy money and low interest rates has almost certainly come to an end. It is
at times like this when the importance of adopting a highly diversified, multi
asset approach to investment, as applied by your Company's investment manager,
is particularly important. The manager's investment review is given on the
following pages and shareholders should feel comforted by the potential for the
investment portfolio to meet the Trust's investment objectives, despite the more
difficult environment which may lie ahead.

Gearing

The £3 million Bilateral Term Loan with Allied Irish Bank (AIB), which was due
to expire in June 2007, has been repaid at a cost of £27,000, and replaced with
a £5.5 million multi currency facility linked to London Interbank Offered Rates
(LIBOR). This facility provides more flexibility to control gearing, whilst
offering a significant reduction to the Company's finance costs, based on
current levels of interest rates. At the year end the Company's gearing stood at
4.7% with £2.5 million of the new borrowing facility having been drawn down. At
the time of writing a further £0.75 million has been drawn down, increasing the
Company's gearing to 6.1%.

Dividends

The Board has declared two interim dividends of 1.38p (net) each to Ordinary
shareholders in respect of the financial year to 30 April 2006, which is
consistent with the objectives detailed in the circular sent to shareholders
last July. In addition, a special dividend of 0.75p was declared in April on
each C Share. It is currently expected that dividends will be paid quarterly in
September, December, March and June. The first interim dividend for the
financial year to 30 April 2007 is expected to be announced in August for
payment in September. Your Board believes in the importance of a progressive
dividend policy.

Management Fee

When Midas was appointed as investment manager it was on the basis of the
previous management contract with Aberdeen Asset Management. This contract,
which expired on 14 February 2006, was replaced by a new fee arrangement which
lowered the basic fee to 1% of net assets (previously 1.2% of gross assets). In
addition Midas was to receive a performance fee of 10% of any returns in excess
of the benchmark of 8% per annum.

Annual General Meeting

This year's AGM will be held at One Bow Churchyard, Cheapside, London at 12:30
p.m. on 12 September 2006. I would be delighted for shareholders to take this
opportunity to meet with Board members and investment managers over a post AGM
buffet lunch.

H V Reid
Chairman
12 July 2006


Manager's Review


Introduction

In the year to 30 April 2006, the Company's undiluted net asset value total
return was 15.6%, after taking into account one-off reorganisation costs. Over
the same period the share price increased by 29.2% and when net dividends are
included the total return to shareholders was 31.9%. Since Midas took over the
investment management contract on 19 August 2005, the Company's net asset value
total return was 8.9% which compares favourably with the benchmark return (8%
per annum) of 6.3%. Over this period the share price has risen by 14.8% and with
net dividends produced an overall return of 16.8%.

The process of portfolio realignment was approached with care as we were acutely
aware that the smaller company holdings, if handled clumsily, could result in a
significant loss of value to the Trust. Fortunately the quality of the portfolio
was such that we were able to extract full value from the positions held. In the
event the reinvestment process was completed by the end of October.

With the new portfolio in place and the Company's shares trading at a small
premium, we felt that it was important to honour our commitment to the Board to
increase the size of the Trust. This was of paramount importance as the fixed
expenses of the Trust could be better borne within a larger vehicle. To this end
we embarked on a fund raising which culminated in the issue of 26,776,127 C
shares. The C share proceeds were quickly invested so as to broadly replicate
the existing portfolio, with both classes of shares being merged on 28 April
2006 at the then prevailing net asset values.

We would like to thank all those who helped in the fund raising and are
particularly grateful to the new shareholders who supported the issue.

Market Overview

This year has been another excellent year for equity markets, marking the third
year of the bull-run which started in March 2003. All major equity markets
produced double digit returns and the laggard over the period, the US market,
still managed a very respectable rise of 19% (in Sterling) although this was
flattered by a (slightly surprising) strong performance from the US dollar. The
best performing equity markets were to be found amongst the Emerging Markets,
which increased by 73% (in Sterling), Japan up by 48% and Asia (excluding Japan)
which also rose by 48%. European equity markets also enjoyed strong gains
ranging from 25% in Spain up to 47% from the German market. The UK equity
market, whilst at the bottom of this range still supported a gain of 28% over
the period.

Strong earnings growth has been the main driver to such buoyant equity markets
with leadership coming from the resource related sectors, where tight supply and
increasing demand, particularly from China, have conspired to produce huge
uplifts in company cash flow and profits. However, the strong rises seen in oil
and base metal prices have begun to cause concerns about the effect this may
have on inflation and input prices for the corporate sector. Within Europe,
whilst growth remains tempered by poor domestic demand, the corporate sector has
benefited from high levels of M&A activity, with trade buyers competing
aggressively against private equity companies for deals.

Bond markets, which had risen in tandem with their equity counterparts, began to
show strains in the early part of 2006, as investors began to focus on a
possible up-tick in inflation. Bond yields, which had been on a downward path
since the summer of 2004, started to rise. This move was particularly evident
amongst longer dated issues, where any build up in inflation is at its most
damaging. Central banks are monitoring the extent to which inflation has grown,
with the interest rate cycle likely to be extended if pressures continue to
build.

The UK property market has been much in demand with both institutional and
retail buyers trying to invest. This has led to a significant compression in
yields, particularly in prime office and retail sectors. The paucity of
available vehicles has been addressed, mainly through the investment trust
market, where newly quoted vehicles have been trading at significant premiums to
net asset value.

The period ended with equity markets in retreat, a trend which has continued in
the current financial year. This set-back has been accompanied by a resurgence
of equity market volatility (previously pronounced as dead by some
commentators). We do not believe that this setback will lead to a new bear
market in equities, but augurs for an environment where investors cannot expect
to be rewarded from merely being involved in equity markets.

Portfolio Report

We have maintained a slight preference for equities over bonds over the period
since the portfolio was restructured. We have also introduced exposure to other
assets including Property (UK and Overseas), Structured Products (with a strong
emphasis on capital protection) and Alternative Assets (Gold and Hedge Funds).
We have also been keen to build the income position within the portfolio,
mindful of the yield commitment to shareholders but also in the belief that
income will be a more important element of overall returns in the future.

Asset Allocation

The asset allocation across the portfolio at 30 April 2006 is shown in the table
below.
                          Portfolio Weight    Core Allocation   Allocation Range
Asset Class                              %                  %                  %

UK Equities                           41.3                 35              20-50
Overseas Equities                     14.4                 15              10-20
Total Equities                        55.7                 50              35-65
Fixed Interest*                       21.8                 25              15-40
Alternative Assets                    12.1                 15              10-20
Property                              10.4                 10               5-15

* Including cash

All figures are as % of Total (Gross) assets.


Equities


UK Equities

Whilst the UK economic environment looks set to be tardy at best, the openness
of the UK economy has led to high levels of corporate activity, with Continental
European buyers finding the UK particularly attractive. We would expect this
trend to continue and feel that ever larger deals may be financed over the
coming months.

The UK equity portfolio has lagged the rise in the buoyant equity market
environment, being invested in companies which we would expect to show decent
returns over the next 2-3 years, but where momentum driven investors are
unlikely to see immediate value. However, since the market began to 'wobble' in
mid April, the portfolio has held up well. We have been keen to invest in
companies with strong cash flow characteristics, good asset backing and with
potential to increase dividends - an important factor in establishing the
Trust's own potential to pursue a progressive dividend policy.

Our belief in the strength of demand for commodities and commensurate strong
medium term pricing environment led us to invest in BP and Royal Dutch Shell,
with both still being valued very conservatively by analysts. We have also
invested in BHP Billiton to gain exposure to not only a range of base metals
such as Nickel and Copper, but also to Coal and Iron Ore, where we expect strong
demand due to the continuing industrialisation of China and India.

On the domestic front we have retained holdings in Enterprise Inns and
Wolverhampton & Dudley, although much reduced in size from that held within the
Taverners portfolio. We believe that both companies are well managed and have
the potential to generate significant cash flows, which can be used to provide
good levels of dividend growth in the future.

In the Telecoms sector we have been attracted to BT Group and Vodafone in the
belief that both can generate well above market dividend growth from their
maturing businesses. Both companies also offer the potential for a re-rating as
investors become more comfortable with the benefits of these highly cash
generative businesses in a less buoyant market environment.

We have also been drawn to the valuation and dividend potential within the UK
banking sector, and believe that, whilst some deterioration in lending
conditions is probable, that this has already been priced into valuations.

Another favoured holding is Tesco, where we expect its prominence in the UK
Retail sector to continue. However, investor attention is likely also to switch
to its growing international presence. We have been reluctant to become too
exposed to the UK General Retail Sector where exposure has been mainly through
Halfords Group, which we felt had potential to grow within a fairly poor overall
environment for the consumer.

Amongst Food Producers we have invested in Tate & Lyle for the quality of its
developing products and lower dependence on the more traditional sugar business,
which still tends to cloud investor perception of the company.

The smaller holdings within the UK portfolio have performed well with both
Highway Insurance and Hotel Corporation making significant advances since
purchase. We believe that both companies have strong asset backing and are
creating value within their respective markets.

The portfolio has not been a major beneficiary of corporate activity to date,
although the Trust's holding in BOC was top sliced and eventually sold into the
bid from Linde.

Dividend growth within the portfolio has been strong with Enterprise Inns, BT
Group and Vodafone announcing large increases. We feel confident that there is
more to come, not only from these companies, but also from others held, where
strong cash flows and improving profits are likely to be converted into higher
dividend payouts.

European Equities

The advent of a more expansive dividend policy amongst European companies has
been a very welcome development over the past few years. Corporate confidence is
high within Continental Europe and reported results have tended to beat
expectations.

We have been able to identify specialist managers who, we believe, can take
advantage of this more positive environment for income seekers, whilst also
being capable of adding capital appreciation from their stock picking skills. To
this end we have invested with 2CG in their Zenith European Income Fund and in
the Britannic (now Resolution) Argonaut European Income Fund. Both these funds
are run by experienced managers with an investment approach which concentrates
on achieving a positive return rather than being benchmark driven. We would
expect these funds to make a growing contribution to the Trust's income stream
over the coming months and both have performed well in capital terms over the
period.

Smaller company exposure within Continental Europe has been taken through the
purchase of European Assets Trust, which offers a high running yield but also
exposure to a conservatively run portfolio with potential to exploit the
inefficiencies which still exist in European equity markets.

Japanese Equities

We have believed for some time that Japan has finally emerged from its long
period of deflation. However, we have also been concerned at how the equity
market has discounted this recovery. In any event we felt that some exposure to
Japanese equities was worth taking. Given our misgivings that the market was, at
least in the short term up with events, we took a fairly cautious approach. We
invested in the actively managed Close Finsbury Japanese Equity Fund, run by the
very experienced Michael Lindsell, whose investment approach is to identify long
term corporate winners. These companies also tend to be amongst the newer breed
of Japanese companies committing to making dividend distributions, which, albeit
from a low starting level, are likely to show strong growth.

We also invested in a Structured Product - the Merrill Lynch Japan High Income
Company - which gives an attractive combination of capital protection (unless
the TOPIX index falls by more than 40%), currency hedging and 1 for 1
participation in any rise in the TOPIX index. Importantly the Product also
offers a yield of 4% which will be paid annually. We felt this offered a good,
low risk, way for the Trust to participate in the expected further medium term
strength in the Japanese market.

Far East Equities

Although we appreciate the strong growth emanating from China and India, we felt
that Asian markets had run too far and may be prone to profit taking from
investors 'riding the market wave'.  We did, however, feel that the launch of
the Aberdeen Asian Income Fund, managed by the excellent Aberdeen Asset
Management team led by Hugh Young, was worthy of support. Asian companies have
discovered new found financial disciplines over recent years and have strong
balance sheets and cash flows with which to increase already attractive levels
of dividends. Whilst the markets of Asia may pause for breath, we felt a well
managed income orientated approach was likely to prove a defensive way of
gaining exposure.

United States Equities

The portfolio has only minimal exposure to the US equity market, through the
Trust's holdings with the Merrill Lynch Commodities Income Trust and the Ecofin
Water & Power Opportunities Trust, which invest in US companies as part of their
international focus on the best companies in their respective sectors.

Fixed Interest Assets

We have been consistently underweight in the Fixed Interest element of the
portfolio feeling that bond markets were offering only limited value. However,
the Trust's largest position is in the M&G European Leveraged Loan Fund. This
fund invests into the LBO led Leveraged loan market with the M&G team having
been involved in this market since 2000. Although the fund utilises heavy levels
of leverage, we feel that it represents a relatively low risk opportunity to
match the Trust's return objectives.

Elsewhere in the fixed interest portfolio, performance from the Schroder
Strategic Bond Fund has been a little disappointing and the Trust's preference
shares have given up some ground following the downturn in the long end of the
Gilt market. However, a more successful investment has been the position in the
convertible bond of Real Estate Opportunities Limited, where strong underlying
growth in the value of the Irish (mainly Dublin) property portfolio has led to a
significant uplift in the equity participation of the convertible bond. This in
turn has led to a useful rise in the Bond's value.

Other fixed interest positions have broadly remained flat in capital terms but
have made a good contribution to the Trust's income. These include the Old
Mutual Corporate Bond Fund and the Thames River High Income Fund.

Alternative Assets

This part of the portfolio covers assets with a low correlation to other areas
in which we might invest. In particular we have been pleased with the
performance of the fund chosen for our exposure to Gold, the CF Ruffer Baker
Steel Gold Fund. This fund concentrates on investment in the smaller Gold
producers around the World, where we perceived that a higher Gold price would
have the maximum effect on profitability.  Although the Fund has fallen in value
since the period end, we continue to believe that Gold has a place in a
diversified investment portfolio.

We have also introduced some Hedge Fund exposure to the portfolio through the
investment in the Signet Global Hedge Fund (this is 'wrapped' within a Barclays
Capital Structured Note). This allows participation in the capital growth of the
Hedge Fund, whilst paying an annual dividend equivalent to 50% of the NAV
growth.

Other Structured Products bought over the period have been mainly defined income
products, which offer a strong element of capital protection. We view these
products as being more attractive than corporate bonds, with yields of over 7%
making a major contribution to the income stream for the Trust.

Property

The Trust's Property interests have made a good contribution to returns over the
period, with investments encompassing UK Commercial Property through the Protego
UK Property Fund (mainly concentrated on industrial and retail sectors), M&G
Property Fund (very diversified and run by one of the largest and most
professional property teams in the UK), and Westbury Property Trust (offering
niche exposure to both direct property and involved in 'venture' projects with
selected partners).

Investment has also been made in Overseas Property markets and includes exposure
to Irish Commercial, mainly in Dublin, through Real Estate Opportunities
Limited. We have also invested in the Japanese Residential Property Market
(Japan Opportunities Fund), German Residential Property (Puma Brandenburg
Limited) and East European Retail Property (Dawnay Day Carpathian). These
markets, we feel, offer potential beyond that available in the UK market at
present.

Outlook

Although the setback in equity markets, and related increase in volatility, has
almost certainly 'called time' on the three year bull market, we do not believe
this to be a portent of an impending bear market. We still view equities as
being amongst the more attractive assets for the future. It would be wrong to
forget, we believe, that equity valuations remain at historically low levels and
corporate activity, either measured through share buybacks, director purchases
or mergers/takeovers are positive indicators of corporate confidence. Whilst the
squeeze on liquidity from Central Banks may deter some momentum driven investors
and restrict their access to capital, we do not see this as a negative
development. Risk has been reintroduced into investor psychology but we believe
that companies with strong fundamental business models will increasingly find
support.

The investment outlook has, beyond doubt, become more challenging. However, we
remain optimistic that we can continue to identify attractive opportunities,
across a wide range of assets, to enable us to produce a satisfactory total
return for the Trust's shareholders.
Midas Capital Partners Ltd

12 July 2006


UNAUDITED INCOME STATEMENT
                                                 Year ended 30 April 2006           Year ended 30 April 2005
                                                                                           (restated)
                                               Revenue      Capital      Total     Revenue     Capital       Total
                                                 £'000        £'000      £'000       £'000       £'000       £'000

Gains on investments                                 -        4,373      4,373           -       4,936       4,936
Income                                           1,330            -      1,330         568           -         568
Investment management fee                        (213)        (214)      (427)       (166)       (167)       (333)
Performance fee                                      -         (61)       (61)           -           -           -
Administrative expenses                          (432)        (156)      (588)       (235)        (60)       (295)
Exchange losses                                      -          (4)        (4)           -           -           -
                                               _______      _______    _______     _______     _______     _______
Net return on ordinary activities before           685        3,938      4,623         167       4,709       4,876
interest payable and taxation
Finance costs                                     (82)        (653)      (735)        (83)        (83)       (166)
                                               _______      _______    _______     _______     _______     _______
Return on ordinary activities before               603        3,285      3,888          84       4,626       4,710
taxation
Taxation                                             -            -          -           -           -           -
                                               _______      _______    _______     _______     _______     _______
Return on ordinary activities after                603        3,285      3,888          84       4,626       4,710
taxation
                                               _______      _______    _______     _______     _______     _______
Return per share (pence):
Basic                                             3.75        20.44      24.19        0.53       29.03       29.56
                                               _______      _______    _______     _______     _______     _______
Diluted                                           3.54        19.29      22.83           -           -           -
                                               _______      _______    _______     _______     _______     _______


The total column of this statement represents the profit & loss account of the
Company.

The financial statements for the year ended 30 April 2005 have been restated to
reflect changes to accounting practices as set out in note 1. The effect of
these changes has been to increase revenue reserves by £80,000 and to decrease
capital reserves by £69,000.

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

No operations were acquired or discontinued in the year.

A Statement of Total Recognised Gains and Losses has not been prepared as all
gains and losses are recognised in the Income Statement.


UNAUDITED BALANCE SHEET
                                                                                         As at              As at
                                                                                 30 April 2006      30 April 2005
                                                                                                       (restated)
                                                                                         £'000              £'000
Non-current assets
Investments at fair value through profit or loss                                        55,537             25,693
                                                                                   ___________        ___________
Current assets
Debtors and prepayments                                                                    367                 51
Cash and short term deposits                                                               272                152
                                                                                   ___________        ___________
                                                                                           639                203
                                                                                   ___________        ___________

Creditors: amounts falling due within one year
Bank loan                                                                              (2,500)                  -
Other creditors                                                                          (206)              (293)
                                                                                   ___________        ___________
                                                                                       (2,706)              (293)
                                                                                   ___________        ___________
Net current liabilities                                                                (2,067)               (90)
                                                                                   ___________        ___________
Total assets less current liabilities                                                   53,470             25,603

Creditors: amounts falling due after more than one year
Bank loan                                                                                    -            (2,500)
                                                                                   ___________        ___________
Net assets                                                                              53,470             23,103
                                                                                   ___________        ___________

Capital and reserves
Called-up share capital                                                                  8,147              3,984
Redemption reserve                                                                      22,067                  -
Special reserve                                                                         10,538             10,536
Warrant reserve                                                                            980                981
Capital reserve - realised                                                               8,527                550
Capital reserve - unrealised                                                             2,688              6,832
Revenue reserve                                                                            523                220
                                                                                   ___________        ___________
Equity Shareholders' funds                                                              53,470             23,103
                                                                                   ___________        ___________
Net asset value per share (pence):
Basic                                                                                   164.07             144.97
                                                                                   ___________        ___________
Diluted                                                                                 158.54             137.69
                                                                                   ___________        ___________



UNAUDITED RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

FOR THE YEAR ENDED 30 APRIL 2006
                                                                              Capital     Capital
                                        Share  Redemption  Special  Warrant   reserve     reserve  Revenue
                                      capital     reserve  reserve  reserve  realised  unrealised  reserve    Total
                                        £'000       £'000    £'000    £'000     £'000       £'000    £'000    £'000
Balance at 30 April 2005 as             3,984           -   10,536      981       550       6,901      140   23,092
originally reported
Restatements                                -           -        -        -         -        (69)       80       11
                                      _______     _______  _______  _______   _______     _______  _______  _______
Balance at 30 April 2005 (restated)     3,984           -   10,536      981       550       6,832      220   23,103
C shares issued                         4,162      22,614        -        -         -           -        -   26,776
C share issue expenses                      -       (547)        -        -       547           -        -        -
Exercise of Warrants                        1           -        2      (1)         1           -        -        3
Return on ordinary activities after         -           -        -        -     7,429     (4,144)      603    3,888
taxation
Dividends paid (see note 3)                 -           -        -        -         -           -    (300)    (300)
                                      _______     _______  _______  _______   _______     _______  _______  _______
Balance at 30 April 2006                8,147      22,067   10,538      980     8,527       2,688      523   53,470
                                      _______     _______  _______  _______   _______     _______  _______  _______

For the year ended 30 April 2005
                                                    Share                     Capital     Capital
                                        Share     premium  Special  Warrant   reserve     reserve  Revenue
                                      capital     account  reserve  reserve  realised  unrealised  reserve    Total
                                        £'000       £'000    £'000    £'000     £'000       £'000    £'000    £'000
Balance at 30 April 2004 as             3,984      10,536        -      981       717       2,094      136   18,448
originally reported
Restatements                                -           -        -        -         -        (55)       80       25
                                      _______     _______  _______  _______   _______     _______  _______  _______
Balance at 30 April 2004 (restated)     3,984      10,536        -      981       717       2,039      216   18,473
Cancellation of share premium               -    (10,536)   10,536        -         -           -        -        -
account
Return on ordinary activities after         -           -        -        -     (167)       4,793       84    4,710
taxation
Dividends paid (see note 2)                 -           -        -        -         -           -     (80)     (80)
                                      _______     _______  _______  _______   _______     _______  _______  _______
Balance at 30 April 2005 (restated)     3,984           -   10,536      981       550       6,832      220   23,103
                                      _______     _______  _______  _______   _______     _______  _______  _______




UNAUDITED CASH FLOW STATEMENT
                                                                              Year ended            Year ended
                                                                             30 April 2006        30 April 2005
                                                                            £'000      £'000     £'000     £'000
Net cash outflow from operating activities                                               (9)                (41)

Servicing of finance
Bank and loan interest paid                                                            (202)               (195)

Financial investment
Purchases of investments                                                 (57,812)              (6,487)
Sales of investments                                                       32,242                6,674
                                                                          _______              _______
Net cash (outflow)/inflow from financial investment                                 (25,570)                 187

Equity dividends paid                                                                  (300)                (80)
                                                                                     _______             _______
Net cash outflow before financing                                                   (26,081)               (129)

Financing
Share capital issued - C shares                                            26,776                    -
Share capital issue expenses                                                (547)                    -
Loan breakage costs                                                          (27)                    -
Exercise of Warrants                                                            3                    -
                                                                          _______              _______
Net cash inflow from financing                                                        26,205                   -
                                                                                     _______             _______
Increase/(decrease) in cash                                                              124               (129)
                                                                                     _______             _______
Reconciliation of net cash flow to movements in net debt
Increase/(decrease) in cash as above                                                     124               (129)
Exchange movements                                                                       (4)                   -
                                                                                     _______             _______
Movement in net debt in the year                                                         120               (129)
Net debt at 1 May                                                                    (2,348)             (2,219)
                                                                                     _______             _______
Net debt at 30 April                                                                 (2,228)             (2,348)
                                                                                     _______             _______



Notes:


1. Accounting Policies


(a) Basis of preparation of accounts

The financial statements have been prepared on a going concern basis in
accordance with UK Generally Accepted Accounting Practice ('UK GAAP') and with
the Statement of Recommended Practice for 'Financial Statements of Investment
Trust Companies' (December 2005). They have also been prepared on the assumption
that approval as an investment trust will continue to be granted.

The new Financial Reporting Standards, issued as part of the programme to
converge UK GAAP with International Financial Reporting Standards (IFRS), were
applicable for the accounting period ended 30 April 2006 and the financial
statements for the twelve months ended 30 April 2005 have also been restated.
The main change arising from these revisions to UK GAAP, in relation to the
Company's financial statements, are:

(i)  dividends to Shareholders declared after the Balance Sheet date are now
shown in the period of payment rather than in the reporting period. Dividends
were previously recognised in the Statement of Total Return (now Income
Statement) but these are now dealt with as an appropriation of equity and are
taken directly through equity in the Reconciliation of Movements in
Shareholders' Funds.

(ii)  investments are measured initially at cost and are recognised at trade
date. For financial assets acquired, the cost is the fair value of the
consideration, with changes in fair value going to the profit and loss account.
Subsequent to initial recognition investments are valued at fair value. For
listed investments this is now assumed to be bid market prices.


(b) Valuation of investments

Investments have been designated upon initial recognition as fair value through
profit or loss. Investments are recognised and de-recognised at trade date where
a purchase or sale is under a contract whose terms require delivery within the
time frame established by the market concerned, and are initially measured as
fair value. Subsequent to initial recognition, investments are valued at fair
value. For listed investments, this is deemed to be bid market prices or closing
prices for SETS (London Stock Exchange's electronic trading service) stocks
sourced from The London Stock Exchange. Unlisted investments are included at
valuations determined by the directors using primary valuation techniques such
as earnings multiples, recent transactions and net assets. Gains and losses
arising from changes in fair value are included in net profit or loss for the
period as a capital item in the income statement and are ultimately recognised
in the unrealised reserve.


(c) Income

Income from investments (other than special dividends), including taxes deducted
at source, is included in revenue by reference to the date on which the
investment is quoted ex dividend. Special dividends are credited to capital or
revenue, according to the circumstances.  Interest receivable on short term
deposits is treated on an accruals basis.


(d) Expenses

All expenses are accounted for on an accrual basis. Expenses are charged to
revenue within the Income Statement except as follows:

- transaction costs on the acquisition or disposal of investments are charged to
capital;

- expenses are charged to capital reserve - realised where a connection with the
maintenance or enhancement of the value of investments can be demonstrated. In
this respect the investment management fee and loan interest on the £2.5m bank
loan have been allocated 50% to capital reserve - realised and 50% to revenue
account;

- loan break costs are charged 100% to capital reserve - realised.


(e) Capital reserves

Realised

Gains or losses on investments realised in the year that have been recognised in
the Income Statement are transferred to the realised capital reserve. In
addition, any prior unrealised gains or losses on such investments are
transferred from the unrealised capital reserve to realised capital reserve on
disposal of the investment.

Also, expenses and finance costs, together with the related taxation effect, are
charged to this reserve in accordance with (d) above.

Unrealised

Increases and decreases in the fair value of investments are recognised in the
Income Statement and are then transferred to the unrealised capital reserve.


(f) Deferred taxation

The charge for taxation is based on the profit for the year and takes into
account taxation deferred because of timing differences between the treatment of
certain items for taxation and accounting purposes. Deferred taxation is
provided using the liability method on all timing differences, calculated at the
rate at which it is anticipated the timing differences will reverse. Deferred
tax assets are recognised only when, on the basis of available evidence, it is
more likely than not that there will be taxable profits in future against which
the deferred tax asset can be offset.

Due to the Company's status as an investment trust company, and the intention to
continue meeting the conditions required to obtain approval in the foreseeable
future, the Company has not provided deferred tax on any capital gains and
losses arising on the revaluation or disposal of investments.


(g) Foreign currency

Transactions involving foreign currencies are converted to sterling, being the
Company's functional currency, at the rate ruling at the date of the
transaction.

Translation of all other foreign currency balances including foreign assets and
foreign liabilities is at the middle rates of exchange at the year end.
Differences arising from translation are treated as a gain or loss to capital or
revenue within the Income Statement depending upon the nature of the gain or
loss.


2. Income
                                                                                           2006         2005
                                                                                          £'000        £'000
Income from investments
UK dividend income                                                                          795          508
Overseas dividends                                                                          347           19

                                                                                          1,142          527

Other income
Deposit interest                                                                             92           41
Treasury Bill interest                                                                       96            -

                                                                                            188           41

Total income                                                                              1,330          568


3. Dividends
                                                                                     2006         2005
                                                                                            (restated)
                                                                                    £'000        £'000
Amounts recognised as distributions to equity holders in the period:
Final dividend for 2005 - 0.50p (2004 - 0.5p)                                          80           80
First interim dividend for 2006 - 1.38p (2005 - nil)                                  220            -

                                                                                      300           80

There is no final dividend proposed for the year.

We set out below the total dividends paid and proposed in respect of the
financial year, which is the basis on which the requirements of Section 842 of
the Income and Corporation Taxes Act 1988 are considered. The revenue available
for distribution by way of dividend for the year is £603,000 (2005 - £84,000).

                                                                                     2006         2005
                                                                                    £'000        £'000
To Ordinary Shareholders prior to C share conversion :
First interim dividend for 2006 - 1.38p (2005 - nil)                                  220            -
Second interim dividend for 2006 - 1.38p (2005 - nil)                                 220            -
To C Shareholders:
Special dividend for 2006 - 0.75p (2005 - nil)                                        201            -
To Ordinary Shareholders:
Final dividend for 2006 - nil (2005 - 0.5p)                                             -           80

                                                                                      641           80


On 20 April 2006 the Company declared a second interim dividend in respect of
the year ending 30 April 2006 of 1.38p net (2005 nil) per Ordinary 25p share
which was paid on 15 June 2006 to Ordinary shareholders on the register on 28
April 2006, ex dividend date 26 April 2006.

In accordance with accounting policy 1(a) the second interim dividend has not
been included as a liability in these financial statements as it was paid after
the balance sheet date.


4. The financial information for the year ended 30 April 2006 comprises
non-statutory accounts within the meaning of Section 240 of the Companies Act
1985. The financial information for the year ended 30 April 2005 has been
abridged from the published accounts that have been delivered to the Register of
Companies and restated where required as a result of the implementation of the
new Financial Reporting Standards and on which the report of the auditors is
unqualified and does not contain a statement under Section 237 (2) or (3) of the
Companies Act 1985. The statutory accounts for 2006 will be finalised on the
basis of the financial information presented by the Directors in this
preliminary announcement and will be delivered to the Register of Companies in
due course.


5. Copies of the Annual Report will be posted to all Shareholders in due course
and further copies may be obtained from the Registered Office, One Bow
Churchyard, Cheapside, London EC4M 9HH.


Aberdeen Asset Management PLC
Secretaries
12 July 2006


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