Interim Results

Utilico Emerging Markets Limited 20 November 2007 Date: 20 November 2007 Contact: Charles Jillings Utilico Emerging Markets Limited 01372 271 486 Alastair Moreton Arbuthnot Securities Limited 020 7012 2000 Utilico Emerging Markets Limited Unaudited Statement of Results for the six months to 30 September 2007 Highlights of results â€¢ Profit for the period Â£69.7m â€¢ Undiluted net asset value per share increased 28.2% to 187.80p â€¢ Revenue return earnings per share of 3.58p â€¢ Dividend per share of 3.50p â€¢ Average annual compound return of 36.0% since inception â€¢ Increased bank facility from Â£60.0m to Â£80.0m in August 2007 Chairman's Statement Once again the first six months of UEM's year have been testing times for emerging markets investors so I am pleased to report UEM has performed well. The NAV per ordinary share rose from 146.45p to 187.80p after paying a final dividend of 0.70p for the year ended 31 March 2007. This represents a gain of 28.2%. The average annual compound return per ordinary share since inception stood at 36.0% at the end of the half-year. In common with previous periods, the portfolio has outperformed the MSCI EMF (Sterling adjusted) index. The MSCI gained 24.9% for the six months versus 28.2% for UEM. Over the last twelve months UEM has seen its NAV per ordinary share gain 56.8% versus the MSCI which gained 42.3%. Over this period UEM underperformed the MSCI in only two of the last twelve months. During the six months UEM increased its bank facility with Halifax Bank of Scotland ('HBOS') to Â£80.0m. As at 30 September 2007, Â£64.2m of this facility was drawn, all in US dollars. As a result gearing has increased to 16.9% from 15.6%. The managers continue to utilise contracts for difference and have increased the gross position to Â£25.3m (Â£14.4m at 31 March 2007) against which Â£14.4m was held as collateral. The managers have continued to increase the absolute level of market protection by investing in S&P 500 index put options and put option spreads. As at 30 September 2007 there were no short put options as these had expired the week before and total market protection at that date was Â£200.0m. Since period end the put option spreads have been completed and the current net equity protection is Â£105.0m equivalent to 25.0% of the gross assets (31 March 2007 - Â£78.4m or 25.0% of the gross assets). The revenue and expenses were broadly in line with the manager's expectations. The revenue return per share was negatively impacted by the increased costs associated with the increased borrowings taken on by UEM. Offsetting this was the change in accounting policy to capitalise 70.0% of finance costs and management fees. The resultant revenue earnings per share was 3.58p per ordinary share, up 49.8% on the same period last year. The board has declared an interim dividend of 3.50p. The managers continue to keep a firm control on costs. The annualised management and administration costs were 0.8% for the six months, marginally lower than previous periods. The market price of the ordinary shares increased by 26.4% to 173.50p as at 30 September 2007. This represents a small premium to the diluted NAV per ordinary share of 173.43p. We continue to see strong shareholder support for UEM. On 6 November 2007 we announced our intention to raise up to Â£100.0m by way of a placing and open offer of C shares and subscription shares. Further we are seeking a listing on the Channel Islands Stock Exchange which will enable UK PEP and ISA holders to invest in the Company for the first time. We expect to post a circular to shareholders and warrantholders, seeking the approval of the C share issue, towards the end of November. Looking forward the conflicting forces on the market and contrasting outlooks coupled with the range of issues facing the markets are expected to result in continued volatility. We continue to believe the world's economic activity will retreat from the high growth levels seen over the last twelve months, but we still anticipate sound economic progress from emerging markets. Furthermore, we believe the long term growth prospects for infrastructure, utility and related companies within emerging markets are strong and UEM's portfolio remains well positioned to benefit from this progress. Alexander Zagoreos November 2007 SUMMARY OF UNAUDITED RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2007 30 September 31 March 2007 2007 Change Undiluted net asset value per ordinary share 187.80p 146.45p 28.2% Diluted net asset value per ordinary share 173.43p 138.80p 24.9% Ordinary share price 173.50p 137.25p 26.4% Discount/(Premium) - (based on diluted NAV) -% (1.1)% Equity holders' funds (Â£m) 312.4 241.6 29.3% Gross assets (Â£m)* 379.7 288.6 31.6% Bank debt (Â£m) 64.2 45.0 42.7% Gearing on gross assets 16.9% 15.6% 6 months to 6 months to 30 September 30 September 2007 2006 Earnings per share (basic) - Capital 38.55p 4.49p - Revenue 3.58p 2.39p - Total 42.13p 6.88p Dividend per share 3.50p 2.00p * Gross assets less current liabilities excluding loans UNAUDITED INCOME STATEMENT 6 months to 6 months to 30 September 2007 30 September 2006 Revenue Capital Total Revenue Capital Total return return return return return return Â£'000s Â£'000s Â£'000s Â£'000s Â£'000s Â£'000s Gains and losses on investments - 70,025 70,025 - 6,372 6,372 Gains and losses on derivative instruments - 5,721 5,721 - 8 8 Exchange gains and losses - 1,836 1,836 - 1,052 1,052 Investment and other income 7,859 - 7,859 4,994 - 4,994 Total income 7,859 77,582 85,441 4,994 7,432 12,426 Management and administration fees (351) (10,360) (10,711) (541) 85 (456) Other expenses (437) (26) (463) (315) (97) (412) Profit before finance costs and taxation 7,071 67,196 74,267 4,138 7,420 11,558 Finance costs (776) (1,811) (2,587) (399) - (399) Profit before taxation 6,295 65,385 71,680 3,739 7,420 11,159 Taxation (375) (1,621) (1,996) (303) (945) (1,248) Profit for the period 5,920 63,764 69,684 3,436 6,475 9,911 Earnings per share (basic) - pence 3.58 38.55 42.13 2.39 4.49 6.88 Earnings per share (diluted) - pence 3.35 36.04 39.39 2.33 4.40 6.73 The total column of this statement represents the Company's Income Statement, prepared in accordance with IFRS. The supplementary revenue 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. UNAUDITED STATEMENT OF CHANGES IN EQUITY 6 months to 30 September 2007 Ordinary Share Non- Retained earnings share premium Warrant distributable Capital Revenue capital account reserve reserve reserves reserve Total Â£'000s Â£'000s Â£'000s Â£'000s Â£'000s Â£'000s Â£'000s Balance at 31 March 2007 16,498 147,194 9,050 101 67,408 1,365 241,616 Profit for the period - - - - 63,764 5,920 69,684 Ordinary dividend paid - - - - - (1,155) (1,155) Issue of ordinary share capital and warrants 135 2,074 - - - - 2,209 Balance at 30 September 2007 16,633 149,268 9,050 101 131,172 6,130 312,354 6 months to 30 September 2006 Ordinary Share Non- Retained earnings share premium Warrant distributable Capital Revenue capital account Reserve reserve reserves reserve Total Â£'000s Â£'000s Â£'000s Â£'000s Â£'000s Â£'000s Â£'000s Balance at 31 March 2006 7,507 62,284 4,050 1 14,634 1,215 89,691 Profit for the period - - - - 6,475 3,436 9,911 Ordinary dividend paid - - - - - (1,126) (1,126) Issue of ordinary share capital and warrants 8,955 85,984 5,100 - - - 100,039 Cost of issuing ordinary share capital - (1,398) - - - - (1,398) Balance at 30 September 2006 16,462 146,870 9,150 1 21,109 3,525 197,117 Year to 31 March 2007 Ordinary Share Non- Retained earnings share premium Warrant distributable Capital Revenue capital account reserve reserve reserves reserve Total Â£'000s Â£'000s Â£'000s Â£'000s Â£'000s Â£'000s Â£'000s Balance at 31 March 2006 7,507 62,284 4,050 1 14,634 1,215 89,691 Profit for the period - - - - 52,774 4,568 57,342 Ordinary dividend 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 UNAUDITED BALANCE SHEET 30 September 2007 30 September 2006 31 March 2007 Â£'000s Â£'000s Â£'000s Non current assets Investments 358,598 218,075 273,708 Current assets Other receivables 1,934 965 2,229 Derivative financial instruments 12,787 2,035 7,605 Cash and cash equivalents 18,979 5,365 19,904 33,700 8,365 29,738 Current liabilities Bank loans (19,751) (25,338) (20,000) Derivative financial instruments (709) (426) (482) Other payables (11,859) (2,614) (14,335) (32,319) (28,378) (34,817) Net current assets/(liabilities) 1,381 (20,013) (5,079) Total assets less current liabilities 359,979 198,062 268,629 Non-current liabilities Bank loans (44,440) - (25,014) Deferred tax (3,185) (945) (1,999) Net assets 312,354 197,117 241,616 Equity attributable to equity holders Ordinary share capital 16,633 16,462 16,498 Share premium account 149,268 146,870 147,194 Warrant reserve 9,050 9,150 9,050 Non-distributable reserve 101 1 101 Capital reserves 131,172 21,109 67,408 Revenue reserve 6,130 3,525 1,365 Total attributable to equity holders 312,354 197,117 241,616 Net asset value per ordinary share Basic - pence 187.80 119.74 146.45 Diluted - pence 173.43 116.45 138.80 UNAUDITED CASH FLOW STATEMENT 6 months to 6 months to Year to 30 September 2007 30 September 2006 31 March 2007 Â£'000s Â£'000s Â£'000s Cash flows from operating activities (20,784) (102,224) (105,201) Cash flows from investing activities - - - Cash flows before financing activities (20,784) (102,224) (105,201) Financing activities Equity dividends paid (1,155) (1,126) (4,418) Proceeds from borrowings 20,654 8,930 29,839 Proceeds from warrants exercised 1 1 361 Proceeds from issue of ordinary share capital - 98,614 98,608 Cash flows from financing activities 19,500 106,419 124,390 Net increase in cash and cash equivalents (1,284) 4,195 19,189 Cash and cash equivalents at the beginning of the period 19,904 1,238 1,238 Effect of movement in foreign exchange 359 (68) (523) Cash and cash equivalents at the end of the period 18,979 5,365 19,904 NOTES The Directors have declared an interim dividend in respect of the period ended 30 September 2007 of 3.50p per ordinary share payable on 14 December 2007 to shareholders on the register at close of business on 30 November 2007. The total cost of the dividend which has not been accrued in the results for the period ended 30 September 2007, is Â£5,822,000 based on 166,344,339 shares in issue at the date of this report. The Report & Accounts will be posted to shareholders towards the end of November 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 19 November 2007 This information is provided by RNS The company news service from the London Stock Exchange

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