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Sgr & Frdlndr AIM 3 (VICT)

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Tuesday 30 April, 2002

Sgr & Frdlndr AIM 3

Final Results

Singer & Friedlander AIM 3 VCT PLC
30 April 2002

Singer & Friedlander AIM 3 VCT plc

Preliminary Announcement of Audited Results for the period ended 31st January

Performance Summary

Total net assets of £31,493,019

Net dividends of £560,845 for the period

Dividend return per ordinary share 1.70 pence

Qualifying investments 29.64% of the current investment portfolio

Chairman's Statement

I am pleased to present the first Report and Accounts of the Company for the
period ending 31st January 2002.

As reported at the interim stage, Singer & Friedlander AIM 3 VCT had a very
successful offer for sale raising approximately £33m, some 10% more than our
prospectus target of £30m. The uncertain economic conditions and volatile stock
markets have meant that at the end of our first year of trading we have invested
only £9.1m of the net funds, raised, representing approximately 30%, in
qualifying investments. We are, however, still on course to meet the Inland
Revenue requirement that 70% of the Company's net funds be so invested within 3
years of launch. The remainder of the funds are currently held in fixed interest
securities and cash pending investment in further suitable opportunities.

The Stock Market background since launch has not been helpful, the number of
companies seeking to raise funds on the Alternative Investment Market (AIM) has
been depressed compared to previous years, and there have been fewer
opportunities which meet our investment criteria. Stock Market valuations fell
fairly consistently throughout the year as concern over the economic environment
grew, exacerbated by the events of the 11th September 2001. The lower valuation
levels have, we believe, enabled us to invest in several companies on very
attractive terms which should stand us in good stead when markets recover.

The Net Asset Value (NAV) of the Company was 97.16p at the 31st January 2002
(before allowing for the payment of the proposed dividend); this compares to 95p
at launch after the deduction of initial costs. This modest increase in NAV
compares with a fall of 36% on the AIM Index since the commencement of dealings
in the Company's shares on the 23rd February 2001 and by a fall of 24.8% since
we started investing in mid April 2001.

Since the Company's Interim Report on the 31st July 2001, the NAV has increased
from 94.74p whilst the AIM Index has declined by 16.6%.

The Board believes the first year's performance is satisfactory against the
prevailing Stock Market trend and we are confident that once sentiment improves
we are well placed to benefit form an appreciating market.

The Directors are recommending a dividend of 1.70p per share in respect of the
period to 31st January 2002.

R O Bernays


30th April 2002

Manager's Report

The unfavourable market background has meant that we are seeing fewer suitable
investment opportunities than would be the case were the market more buoyant
but, against this, the valuation levels of those that we do invest in are far
more attractive than those which prevailed one or two years ago. This gives us
considerable confidence that when market conditions improve we will benefit
disproportionately. Looking at the portfolio in greater detail, we believe it is
developing into a well-diversified list covering a wide range of sectors. We
have investments in 22 different qualifying investments, of these, 13 are listed
on the AIM, 2 on OFEX and the remaining 7 are currently unquoted. Due to the
depressed Stock Market, several companies have chosen to raise private equity
rather than list on AIM. We anticipate that these companies will seek a listing
once market conditions improve.

There has been a diversity of performance from our quoted investments' share
prices with some performing disappointingly but several which have delivered
impressive returns, notably AERO Inventory, Recycled Waste and Synergy
Healthcare. It is worth noting that in the current lacklustre market some
companies share prices do not reflect underlying achievements and progress. This
should be recognised in due course.

A N Banks

Singer & Friedlander Investment Management Limited

30th April 2002

Investment Portfolio Summary

AIM Listed companies Sector                  Nature of business                 Cost at  Valuation Percentage Percentage
                                                                            acquisition         at            of company
                                                                                                           of managed by
                                                                                              31st  portfolio Investment
                                                                                           January               Manager

                                                                                      £          £          %          %
AERO Inventory       Aerospace & defence     Distribution of aircraft           481,041    661,743       2.10      17.83
Blooms of            General retailers       Garden centre                      470,000    321,579       1.02       6.03
Capcon Holdings      Specialty & other       Audit, stocktaking and             350,000    308,438       0.98       6.03
                     finance                 commercial investigation
First Artist Corp    Support services        Sports management company          400,000    460,000       1.46       5.54
Imprint Search &     Support services        Recruitment services               480,000    339,000       1.08       3.46
Mediwatch            Health                  Design, manufacturing and          400,000    175,000       0.56       6.63
                                             marketing of medical
                                             diagnostic services
Monotub Industries   Household goods &       Washing machine                    260,000     47,000       0.15       1.98
                     textiles                manufacturer
Oasis Healthcare     Health                  Dental healthcare provider         631,180    725,857       2.30      10.98
Proactive Sports     Media & photography     Football management and            390,000    421,200       1.34       1.49
                                             marketing services
Recycled Waste       Support services        Environmental control              374,994    775,362       2.46      10.35
Synergy Healthcare   Health                  Medical support services           481,280    864,800       2.75       3.74
Tikit Group          Software & computer     IT consultancy services and        400,000    398,261       1.26       2.99
                     services                IT solutions
Tissue Science       Health                  Medical device company for         744,600    849,150       2.70       2.31
Laboratories                                 surgical implants
                                                                              5,863,095  6,347,390      20.16

All investments are in ordinary shares unless otherwise stated.

OFEX Quoted         Sector                 Nature of business                  Cost at  Valuation Percentage  Percentage
companies                                                                  acquisition         at             of company
                                                                                                          of  managed by
                                                                                             31st  portfolio  Investment
                                                                                          January                Manager

                                                                                     £          £          %           %
Accidentcare Group  Specialty & other      Accident management services        517,500    431,250       1.37       28.93
Coinmaster Gaming   Leisure, entertainment Production of electronic            350,000    302,273       0.96        6.51
                    & hotels               gaming machines
                                                                               867,500    733,523       2.33

All investments are in ordinary shares unless otherwise stated.

Unquoted companies  Sector                  Nature of business                 Cost at  Valuation Percentage  Percentage
                                                                           acquisition         at             of company
                                                                                                          of  managed by
                                                                                             31st  portfolio  Investment
                                                                                          January                Manager

                                                                                     £          £          %           %
Accidentcare Group* Specialty & other       Accident management                 54,375     54,375       0.17       28.93
                    finance                 services
                                                                                54,375     54,375       0.17

*Placing shares not admitted to trading on OFEX as at 31st January 2002

Private companies   Sector                  Nature of business                 Cost at  Valuation Percentage  Percentage
                                                                           acquisition         at         of  of company
                                                                                                   portfolio  managed by
                                                                                             31st             Investment
                                                                                          January                Manager

                                                                                     £          £          %           %
Checkout Holdings   Software & computer     Provider of EPOS sytems.           375,516    375,516       1.19       10.88
Eurobenefits        Software & computer     Employee benefits &                367,500    367,500       1.17        8.24
                    services                financial services
Exertris            Software & computer     Developer of exercise bikes        324,997    324,997       1.03        7.58
Firmgrowth          Software & computer     Student careers directory &        250,000    250,000       0.79        1.51
                    services                internet portal
Lilestone           General retailers       Ladies healthcare company          150,000    150,000       0.48       15.09
Stanhope Telecom    Telecommunication       Telecom products                   500,000    356,000       1.13       13.88
U4EA                Information technology  Network and online video           374,989    374,989       1.19        1.50
                    hardware                conferencing
                                                                             2,343,002  2,199,002       6.98

All investments are in ordinary shares unless otherwise stated

Fixed income                                                                  Cost at  Valuation Percentage   Percentage
investments                                                               acquisition         at         of   of company
                                                                                                  portfolio   managed by
and other                                                                                   31st              Investment
non-qualifying                                                                           January                 Manager
                                                                                    £          £          %            %
Debentures and
loan stocks
BK NED Gemeenten**                                                          2,040,205  2,060,400       6.54        0.596
6.375% MTN 30/3/
Euro Inv Bank                                                               2,899,025  2,929,230       9.30        0.240
6.125% BDS 7/12/
Gen Elec Cap Corp                                                             505,750    506,175       1.61        0.122
MTN 5/2/2003
KFW INTL Finance**                                                          1,987,805  2,017,100       6.40        0.911
5.5% GTD MTN 18/6/
Lloyds TSB Bank                                                             2,023,445  2,033,200       6.46        1.868
6% NTS 7/6/2004
UK Government
Treasury 7% stock                                                           3,566,058  3,536,750      11.23        0.164
Treasury 6.5%                                                               3,871,754  3,878,816      12.32        0.376
stock 2003
Treasury 5% stock                                                           4,985,057  5,023,500      15.95        0.771
                                                                           21,879,099 21,985,171      69.81

Summary                                                                              Cost at  Valuation at Percentage of
                                                                                 acquisition                   portfolio
                                                                                              31st January

                                                                                           £             £             %
Total qualifying portfolio                                                         9,127,972     9,334,290         29.64
Fixed interest/non-qualifying portfolio                                           21,879,099    21,985,171         69.81
Sub total                                                                         31,007,071    31,319,461         99.45
Net current assets                                                                                 173,558          0.55
Total                                                                             31,007,071    31,493,019        100.00

**All investments listed on pages 6 to 7 are incorporated and quoted within the
UK with the exception of these holdings. BK NED Gemeenten 6.375% MTN 30/3/2005
is incorporated in the Netherlands and quoted in Luxembourg. KFW INTL Finance
5.5% GTD MTN 18/6/2004 is incorporated in the USA and quoted in Luxembourg.

Table of largest ten investments by value.
Name of undertaking                                     Percentage   Percentage  Profit/(loss) Retained profit Net asset
                                                                of      held by     before tax  / (accumulated     value
                                                         portfolio      company                          loss)
                                                                 %            %         £000's          £000's    £000's
Treasury 5% stock 2004                                       15.95       0.0674              -               -         -
Treasury 6.5% stock 2003                                     12.32       0.0470              -               -         -
Treasury 7% stock 2002                                       11.23       0.0388              -               -         -
Euro Inv Bank 6.125% BDS 7/12/2005                            9.30        0.238              -               -         -
BK NED Gemeenten 6.375% MTN 30/3/2005                         6.54        0.200              -               -         -
Lloyds TSB Bank 6% NTS 7/6/2004*                              6.46        0.800              -               -         -
KFW INTL Finance 5.5% GTD MTN 18/6/2004                       6.40        0.308              -               -         -
Synergy Healthcare                                            2.75         2.32          1,002           1,031     2,705
Tissue Science Laboratories                                   2.70         2.31        (3,372)         (6,766)     8,514
Recycled Waste                                                2.46        10.35           (17)         (8,847)   (4,101)

The aggregate value of these top ten holdings is £23,968,308.

All figures are taken from the most recently available audited accounts of the
underlying entity.

*All the above fixed interest investments are AAA rated except for Lloyds TSB
Bank which has a split rating.
Sector analysis                                                                     Cost at    Valuation at   Percentage
                                                                                acquisition                 of portfolio
                                                                                               31st January

                                                                                          £               £            %
Aerospace & defence                                                                 481,041         661,743         2.10
General retailers                                                                   620,000         471,579         1.50
Health                                                                            2,257,060       2,614,807         8.31
Household goods & textiles                                                          260,000          47,000         0.15
Information technology hardware                                                     374,989         374,989         1.19
Leisure, entertainment & hotels                                                     350,000         302,273         0.96
Media & photography                                                                 390,000         421,200         1.34
Software & computer services                                                      1,718,013       1,716,274         5.44
Specialty & other finance                                                           921,875         794,063         2.52
Support services                                                                  1,254,994       1,574,362         5.00
Telecommunications services                                                         500,000         356,000         1.13
Fixed interest investments                                                       21,879,099      21,985,171        69.81
Sub total                                                                        31,007,071      31,319,461        99.45
Net current assets                                                                                  173,558         0.55
Total                                                                            31,007,071      31,493,019       100.00

 Accidentcare Group

The company provides, for an annual fee, an accident management service to
motorists. The membership base has grown strongly and the company also offers an
out-sourcing service for claims management to major motor insurers.

AERO Inventory

The company is engaged in procurement and inventory management for the aerospace
industry. The company has won significant new business in the last year
including the recent announcement of a five-year contract with TAECO in support
of TAECO's aircraft maintenance and conversion programmes. AERO Inventory's
service to customers enables the client to reduce costs and improve efficiency.

Blooms of Bressingham

Blooms is an operator of garden centres with a particular emphasis on plants.
The company has 11 sites and expanded with the acquisition of Jardinerie Limited
last year. The company's Christmas trading statement indicated strong sales
although not as strong as those originally expected leading to some management
changes and reduction in overheads. The company has just completed further
fundraising and is well placed to grow from its current base.

Capcon Holdings

Capcon provide audit, stocktaking and investigation services. The company came
to AIM last year with an experienced management team who is keen to grow both
organically and via acquisition.

Checkout Holdings

The company offers electronic point of sale terminals primarily for the licensed
trade and for fast food restaurant operators. The company has a 'blue chip'
client base and whilst currently unlisted intends coming to the market within
the next year or so.

Coinmaster Gaming

The company designs, manufactures and sells gaming machines to more than 30
countries world-wide. It supplies many of the big UK casino operators as well as
casinos and gaming arcades around the world. It has three core products in
roulette, bingo and a video horse game, electronic machines currently have a
very small market share of the casino market but the opportunities to grow this
given the benefit to operators are significant.


The company has developed a platform to manage and communicate employee benefit
and financial services information to individuals in the UK and Europe. These
services enable employers to reduce costs and improve employee communication and
understanding. The company is hoping to sign contracts with major insurance
companies and employers in the near future.


The company has developed and is now actively selling an exercise bike which
incorporates a PC and monitor which allows the user to play computer games
whilst exercising. The amount of effort put in on the machine controls what
happens on the computer screen. The machine is, therefore, more interesting and
addictive than conventional exercise products and is proving to be a success
with health club operators.


Firmgrowth trades as ITM communications and is the owner of a student careers
directory and database. The company has a long term agreement with the National
Union of Students (NUS), providing a database of students which has attracted
large corporates such as Abbey National and Carphone Warehouse who are looking
to promote their products in the student market.

First Artist

First Artist is a leading European management and representation company looking
after the commercial interests of footballers and other high profile
personalities in the football and television market. The company has over 400
clients primarily in the UK and around Continental Europe.

Imprint Search & Selection

Imprint is establishing a business in the high value permanent recruitment
market. The founders of the business have impressive track records in this
market, having previously built up and sold a similar business. The company is
aiming to establish itself in several different industries including financial
services, marketing and accounting.


Lilestone has established the Myla brand of lingerie. The company is designing
its own brand products as well as sourcing product from other designers
throughout the world. The products are being sold via mail order, the internet
and through conventional retail channels such as Selfridges and the company's
own shop in Notting Hill.


Mediwatch is a medical diagnostic equipment company that is developing high
speed urological screening equipment. The company's products are designed to
enable early detection of prostate and bladder cancers for the fast growing
primary care market. The company has recently announced the appointment of Bard
as a marketing partner for its Portascan product.

Monotub Industries

Monotub has developed a new type of front-loading washing machine named the
Titan. The machine is capable of taking a larger load and has a removable basket
to aid convenience. Unfortunately the company has experienced production
problems and has suspended manufacture of the product whilst it seeks strategic
partners to further develop the product.

Oasis Healthcare

Oasis has built up an estate of dental practices in the UK. The company now has
63 sites incorporating 263 surgeries. The company is beginning to experience the
benefits of scale and should achieve annualised turnover of £30m by the end of
its financial year (31st March 2002).

Proactive Sports

Proactive is a leading sports management and marketing agency with a particular
emphasis on football. The company has an international network of offices and
football agents and represents nearly 250 players.

Recycled Waste

The company is a waste technology business using reverse polymerisation
processes to deal with difficult wastes such as medical and tyre refuse. The
technology can help reduce future environmental damage and can also produce
valuable by-products and even surplus energy.

Stanhope Telecom

Stanhope is a telecommunications company offering both fixed and mobile services
to primarily business users. On the mobile side the company has won the Service
Provider of the Year Award for the last two years. Conditions in its market have
become very competitive over the last year and initial profit expectations are
unlikely to be met, as a result we have written down the valuation of the
company by approximately 25 %.

Synergy Healthcare

Synergy is a specialist provider of out-sourced medical support services to the
NHS. It is the largest private sector provider of sterile instrumentation
services and other medical products. The company has several long term contracts
with different NHS Trusts and hospitals around the UK.

Tikit Group

The company is a provider of consultancy services and software solutions
primarily to the legal profession. The company concentrates on the top 200 law
firms in the UK and has a very good reputation for quality of service and 'best
of breed' solutions. Applications cover time recording, document management,
customer relationship management and knowledge management.

Tissue Science Laboratories

Tissue Science is a medical devices company specialising in human tissue
replacement and repair products derived from porcine dermis. The company has
proprietary core technology, which has many applications in a rapidly growing
market. It has a marketing agreement with C R Bard to sell their current lead


U4EA is a specialist provider of solutions for data transfer management by large
corporates. This has particular implications in improving the performance of
transfers of large amounts of data across networks.

Financial Statements

Statement of Total Return

(incorporating the revenue account*) for the period from 10th January 2001 to
31st January 2002

                                                                       Revenue       Capital         Total
                                                                             £             £             £
Gains on investments                                                         -       286,688       286,688
Income                                                               1,328,748             -     1,328,748
Administrative expenses
Investment management fees                                           (128,044)     (384,131)     (512,175)
Other expenses                                                       (253,366)             -     (253,366)
Return on ordinary activities before taxation                          947,338      (97,443)       849,895
Tax on ordinary activities                                           (267,620)       124,843     (142,777)
Return on ordinary activities after taxation for the financial                        27,400       707,118
Dividends in respect of equity shares                                (560,845)             -     (560,845)
Transfer to reserves                                                   118,873        27,400       146,273
Return per ordinary share                                                2.49p         0.10p         2.59p

* The revenue column of this statement is the profit and loss account of the

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

No operations were acquired or discontinued in the period.

Balance Sheet
                                                                                As at

                                                                         31st January

Fixed assets
Qualifying investments                                                      9,334,290
Fixed interest securities                                                  21,985,171
Current assets
Debtors                                                                       672,275
Cash at bank                                                                  568,778
Creditors: amounts falling due within one year                            (1,067,495)
Net current assets                                                            173,558
Net assets                                                                 31,493,019
Capital and reserves
Called-up share capital                                                     1,649,543
Share premium account                                                      29,697,203
Capital reserve - realised                                                  (284,990)
Capital reserve - unrealised                                                  312,390
Revenue reserve                                                               118,873
Equity shareholders' funds                                                 31,493,019
Net asset value per ordinary share                                             95.46p

Cash Flow Statement
                                                                          Period ended

                                                                          31st January

Operating activities

Investment income received                                                     586,316
Deposit interest received                                                      321,707
Investment management fees paid                                              (309,036)
Other expenses paid                                                           (93,382)
Net cash inflow from operating activities                                      505,605

Capital expenditure and financial investment
Purchase of investments                                                   (37,604,918)
Disposals of investments                                                     6,321,345
Net cash outflow from capital expenditure and financial                   (31,283,573)

Net cash outflow before financing                                         (30,777,968)

Proceeds of ordinary share issue                                            32,990,860
Issue of redeemable preference shares                                           12,500
Redemption of redeemable preference shares                                    (12,500)
Expenses of ordinary share issue                                           (1,644,114)
Net cash inflow from financing                                              31,346,746

Increase in cash for the period                                                568,778

Notes to the Financial Statements

Accounting policies

A summary of the principal accounting policies, all of which have been applied
consistently throughout the period, is set out below.

    a) Basis of accounting

    The financial statements have been prepared under the historical cost
    convention, modified to include the revaluation of fixed asset investments.
    The financial statements have been prepared in accordance with applicable
    accounting standards and the statement of recommended practice 'Financial
    Statements of Investment Trust Companies'.

    b) Investments

    Listed investments and investments traded on AIM and OFEX are stated at mid
    market prices at the period end. Unquoted investments are stated at the
    Directors' valuation with reference to the British Venture Capital
    Association ('BVCA') guidelines. The Directors' policy in valuing unquoted
    investments is to carry them at cost except in the following circumstances:

    Where a company's under performance against plan indicates a diminution in
    the value of the investment, provision against cost is made as appropriate
    in bands of 25%;

    Where a company is well established and profitable, the shares may be valued
    by applying a suitable price-earnings ratio to the company's historic
    post-tax earnings. The ratio used is based on a comparable listed company or
    sector but discounted to reflect lack of marketability;

    Where a value is indicated by a material arms-length transaction by a third
    party in the shares of a company.

    Unquoted investments will not normally be revalued upwards for a period of
    at least twelve months from the date of acquisition. Where trading in the
    securities of an investee company is suspended, the investment is valued at
    the Board's estimate of its net realisable value.

    Capital gains and losses on investments, whether realised or unrealised, are
    dealt with in the capital reserve.


    Dividends receivable on listed and quoted equity shares are brought into
    account on the ex-dividend date. Dividends receivable on unquoted equity
    shares are brought into account when the Company's right to receive payment
    is established and there is no reasonable doubt that payment will be
    received. Fixed returns on non-equity shares and debt securities are
    recognised on a time apportionment basis so as to reflect the effective
    yield, provided there is no reasonable doubt that payment will be received
    in due course.


    All expenses are accounted on an accruals basis. Expenses are charged
    through the revenue account except as follows:

    expenses which are incidental to the acquisition of an investment are
    included within the cost of the investment;

    expenses which are incidental to the disposal of an investment are deducted
    from the disposal proceeds on an investment.

    Expenses are charged to capital reserve - realised where a connection with
    the maintenance or enhancement of the value of the investments can be
    demonstrated. In this respect the investment management fee has been
    allocated 75% to capital reserve and 25% to revenue account, in line with
    the Board's expected long-term split of returns, in the form of capital
    gains and income respectively, from the investment portfolio of the Company.


    Deferred tax is recognised in respect of all timing differences that have
    originated but not reversed at the balance sheet date where transactions or
    events that result in an obligation to pay more tax in the future have
    ocurred at the balance sheet date. Timing differences are differences
    between the Company's taxable profits and its results as stated in the
    financial statements.

    Deferred tax is measured at the average tax rates that are expected to apply
    in the periods in which the timing differences are expected to reverse,
    based on tax rates and laws that have been enacted or substantially enacted
    by the balance sheet date. Deferred tax is measured on a non-discounted

Any tax relief obtained in respect of management fees allocated to capital is
reflected in the capital reserve - realised and a corresponding amount is
charged against revenue. The tax relief is the amount by which corporation tax
payable is reduced as a result of these capital expenses.

Capital Reserve


    The following are accounted as realised returns:

    - Gains and losses on realisation of investments;

    - Realised exchange differences of a capital nature;

    - Expenses and finance costs, together with the related tax effect to this
    reserve in accordance with the policies; and

    - Realised gains and losses on transactions undertaken to hedge an exposure
    of a capital nature.


The following is accounted for in as unrealised returns:

    - Increases and decreases in the valuation of investments held at the period

    - Unrealised exchange differences of a capital nature, and

    - Unrealised gains and losses on transactions undertaken to hedge an
    exposure of a capital nature.

Return per ordinary share

    Basic revenue return per ordinary share, is based on the net revenue on
    ordinary activities after taxation of £679,718 and on 27,249,556 ordinary
    shares being the weighted average number of ordinary shares in issue during
    the period.

    Basic capital return per ordinary share is based on net capital gains for
    the financial period of £27,400 and on 27,249,556 ordinary shares, being the
    weighted average number of ordinary shares in issue during the period.

Annual General Meeting

    The Annual General Meeting will be held at 21 New Street, Bishopsgate,
    London, EC2M 4HR at 10.30am on Thursday 20th June 2002.

Final Dividend

    Subject to approval by shareholders at the AGM the Directors recommend a
    final dividend of 1.70 pence per share. The dividend will be paid on 21st
    June 2002 to shareholders' whose names appear on the register of members at
    the close of business on 24th May 2002.

Statutory Report & Accounts

    The financial information set out above does not constitute the Company's
    statutory accounts for the period ended 31st January 2002. Statutory
    accounts for 2002 will be finalised on the basis of the financial
    information presented by the directors in this preliminary announcement and
    will be delivered to the Registrar of Companies following the Company's
    Annual General Meeting.

    The Company will be circulating the full Report and Accounts to shareholders
    shortly and copies of the Report and Accounts will be available from the
    registered office of the Company, 21 New Street, Bishopsgate, London, EC2M

                      This information is provided by RNS
            The company news service from the London Stock Exchange

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