Annual Report and Accounts

Utilico Emerging Markets Limited
04 June 2007

Date:              4 June 2007

Contacts:          Charles Jillings
                   Utilico Emerging Markets Limited
                   01372 271 486

                   Alastair Moreton
                   Arbuthnot Securities Limited
                   020 7012 2000


                        UTILICO EMERGING MARKETS LIMITED
                    Audited Preliminary Statement of Results
                         for the year to 31 March 2007

HIGHLIGHTS

  • Raised £100.0m in May 2006
  • Fully invested in early August 2006
  • Increased bank facility to £60.0m from £25.0m in March 2007
  • Profit for the period of £57.3m
  • Net asset value increased by 22.6% to 146.45p
  • Earnings per share of 2.96p on the revenue account
  • Dividends per share of 2.70p (final 0.70p)


The Chairman, Mr Alexander Zagoreos, commented, 'Since launch in July 2005 the
initial ordinary shareholders have seen their NAV increase from 98.36p to
146.45p. This increase, including dividends, represents a compound annual growth
of 28.4%.

While we expect the world's economic activity to retreat from the high growth
levels seen over the last 12 months we still anticipate sound economic progress
in the emerging markets.

UEM's portfolio is well positioned to benefit from this progress.'


PERFORMANCE SUMMARY


                                                                   31 March 2007        31 March 2006(1)       % Change

Undiluted net asset value per ordinary share                             146.45p                 119.48p          +22.6
Diluted net asset value per ordinary share                               138.80p                 116.23p          +19.4
Ordinary share price                                                     137.25p                 126.00p           +8.9
(Discount)/premium(2)                                                     (1.1%)                    8.4%

Earnings per share (basic)
- Capital                                                                 34.19p                  19.50p          +75.3
- Revenue                                                                  2.96p                   1.62p          +82.7
- Total                                                                   37.15p                  21.12p          +75.9

Dividends per ordinary share
- Interim paid                                                             2.00p                       - )        +80.0
- Final declared (2006: paid)                                           0.70p(3)                   1.50p
- Total                                                                    2.70p                   1.50p          +80.0

Equity holders' funds (£'m)                                                241.6                    89.7      +169.3(4)

Gross assets (£'m)                                                         303.4                   111.0

Debt (£'m)                                                                  45.0                    17.5         +157.1

Gearing on gross assets                                                    14.8%                   15.8%

Revenue account expenses (£'m)                                               2.0                     0.7         +185.7

Total expense ratio(5)                                                      0.9%                    0.9%              -



(1) Period from 9 June 2005, the date of incorporation of the Company, to 31
March 2006.

(2) Based on diluted net asset value.

(3) The final declared dividend has not been included as a liability in these
accounts.

(4) Includes £100.0m raised through the issue of C shares.

(5) Revenue account expenses over monthly average gross assets.


INCOME STATEMENT

                                                                                                            Period from
                                                            Year to 31 March 2007         9 June 2005 to 31 March 2006*
                                                      Revenue   Capital     Total     Revenue      Capital        Total
                                                       £'000s    £'000s    £'000s      £'000s       £'000s       £'000s

Gains and losses on investments                             -    58,094    58,094           -       17,057       17,057
Gains and losses on derivative instruments                  -     2,450     2,450           -         (18)         (18)
Exchange gains and losses                                   -     1,830     1,830           1        (234)        (233)
Investment and other income                             8,457         -     8,457       2,073            -        2,073
Total income                                            8,457    62,374    70,831       2,074       16,805       18,879
Management and administration fees                    (1,275)   (7,102)   (8,377)       (431)      (2,141)      (2,572)
Other expenses                                          (709)      (77)     (786)       (290)         (30)        (320)
Profit before finance costs and taxation                6,473    55,195    61,668       1,353       14,634       15,987
Finance costs                                         (1,417)         -   (1,417)        (81)            -         (81)
Profit before tax                                       5,056    55,195    60,251       1,272       14,634       15,906
Taxation                                                (488)   (2,421)   (2,909)        (57)            -         (57)
Profit for the period                                   4,568    52,774    57,342       1,215       14,634       15,849

Earnings per share (basic) - pence                       2.96     34.19     37.15        1.62        19.50        21.12

Earnings per share (diluted) - pence                     2.87     33.14     36.01        1.59        19.15        20.74


The total column of this statement represents the Company's Income Statement,
prepared in accordance with IFRS. The supplementary revenue return and capital 
return columns are both prepared under guidance published by the Association of 
Investment Companies in the UK.

All items in the above statement derive from continuing operations.

All income is attributable to the equity holders of the Company.

* The Company was incorporated on 9 June 2005 and commenced trading on 20 July
2005.


STATEMENT OF CHANGES IN EQUITY

for the year to 31 March 2007

                                Ordinary        Share                       Non-         Retained earnings
                                   share      premium    Warrant   distributable      Capital      Revenue
                                 capital      account    reserve         reserve     reserves      reserve        Total
                                  £'000s       £'000s     £'000s          £'000s       £'000s       £'000s       £'000s
Balance at 31 March 2006           7,507       62,284      4,050               1       14,634        1,215       89,691
Profit for the year                    -            -          -               -       52,774        4,568       57,342
Ordinary dividends paid                -            -          -               -            -      (4,418)      (4,418)
Issue of ordinary share
    capital and warrants           8,991       86,308      5,000             100            -            -      100,399
Cost of issuing ordinary
    share capital                      -      (1,398)          -               -            -            -      (1,398)
Balance at 31 March 2007          16,498      147,194      9,050             101       67,408        1,365      241,616


for the period 9 June 2005 to 31 March 2006

                                Ordinary        Share                       Non-         Retained earnings
                                   share      premium    Warrant   distributable      Capital      Revenue
                                 capital      account    reserve         reserve     reserves      reserve        Total
                                  £'000s       £'000s     £'000s          £'000s       £'000s       £'000s       £'000s

Profit for the period                  -            -          -               -       14,634        1,215       15,849
Issue of ordinary share
    capital and warrants           7,507       63,514      4,050               1            -            -       75,072
Cost of issuing ordinary
    share capital                      -      (1,230)          -               -            -            -      (1,230)
Balance at 31 March 2006           7,507       62,284      4,050               1       14,634        1,215       89,691


BALANCE SHEET

at 31 March                                                                       2007                            2006
                                                                £'000s          £'000s          £'000s          £'000s
Non current assets
Investments                                                                    273,708                         108,056
Current assets
Other receivables                                                2,229                             780
Derivative financial instruments                                 7,605                             883
Cash & cash equivalents                                         19,904                           1,238
                                                                                29,738                           2,901
Current liabilities
Bank loans                                                    (20,000)                        (17,528)
Other payables                                                (14,335)                         (3,575)
Derivative financial instruments                                 (482)                           (163)
                                                                              (34,817)                        (21,266)
Net current liabilities                                                        (5,079)                        (18,365)
Total assets less current liabilities                                          268,629                          89,691
Non-current liabilities
Bank loans                                                    (25,014)                               -
Deferred tax                                                   (1,999)                               -
                                                                              (27,013)                               -
Net assets                                                                     241,616                          89,691

Equity attributable to equity holders
Ordinary share capital                                                          16,498                           7,507
Share premium account                                                          147,194                          62,284
Warrant reserve                                                                  9,050                           4,050
Non-distributable reserve                                                          101                               1
Capital reserves                                                                67,408                          14,634
Revenue reserve                                                                  1,365                           1,215
Total attributable to equity holders                                           241,616                          89,691

Net asset value per ordinary share
Basic - pence                                                                   146.45                          119.48
Diluted - pence                                                                 138.80                          116.23


CASH FLOW STATEMENT

                                                                    Year to 31 March 2007       Period to 31 March 2006
                                                                                   £'000s                        £'000s
Cash flows from operating activities                                            (105,201)                      (67,324)
Cash flows from investing activities                                                    -                             -
Cash flows before financing activities                                          (105,201)                      (67,324)
Financing activities
Equity dividend paid                                                              (4,418)                             -
Proceeds from borrowings                                                           29,839                        17,428
Proceeds from warrants exercised                                                      361                             4
Proceeds from issue of ordinary share capital                                      98,608                        51,264
Cash flows from financing activities                                              124,390                        68,696
Net increase in cash and cash equivalents                                          19,189                         1,372
Cash and cash equivalents at the beginning of the period                            1,238                             -
Effect of movement in foreign exchange                                              (523)                         (134)
Cash and cash equivalents at the end of the period                                 19,904                         1,238



A final dividend in respect of the year ended 31 March 2007 of 0.70p per
ordinary share will be paid on 29 June 2007 to shareholders on the register at
close of business on 15 June 2007.

This preliminary statement, which has been agreed with the auditors, was
approved by the Board on 4 June 2007. It is not the company's statutory
accounts. The statutory accounts for the financial year ended 31 March 2007 have
been approved and audited, and received an audit report which was unqualified.
The statutory accounts for the financial year ended 31 March 2006 received an
audit report which was unqualified.

The Report and Accounts will be posted to shareholders towards the middle of
June 2007. Copies may be obtained during normal business hours from Exchange
House, Primrose Street, London EC2A 2NY.

By order of the Board
F&C Management Limited, Secretary
4 June 2007




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