Final Results

Preliminary announcement of final results for the year ended

31 December 2006(audited)

The directors recommend a final dividend of 7.10p per share making a total for
the year of 10.50p. Subject to the approval of shareholders, the final dividend
will be paid on 25 April 2007 to holders on the register on the record date of 16
March 2007. The preliminary statement has been prepared in accordance with
International Financial Reporting Standards.


Group income statement
for the year ended 31 December

                              2006                        2005           
                                                                         
                     Revenue Capital    Total    Revenue Capital    Total
                                                                         
                       £'000   £'000    £'000      £'000   £'000     '000
                                                                         
UK dividends           9,805       -    9,805      9,213       -    9,213
                                                                         
UK Special                19       -       19        135       -      135
dividends                                                                
                                                                         
Overseas dividends     1,499       -    1,499      1,442       -    1,442
                                                                         
Overseas special          11       -       11         13       -       13
dividends                                                                
                                                                         
Interest from            146       -      146        138       -      138
securities                                                               
                                                                         
                      11,480       -   11,480     10,941       -   10,941
                                                                         
Bank deposit           2,474       -    2,474      1,068       -    1,068
interest                                                                 
                                                                         
Trustee and other     26,741       -   26,741     23,556 -         23,556
related fees                                                             
                                                                         
Other income             144       -      144        107       -      107
                                                                         
Total revenue         40,839       -   40,839     35,672       -   35,672
                                                                         
Net gain on            -      48,128   48,128          -   64,339  64,339 
investments held at                                                      
fair value through                                                       
profit or loss                                                           
                                                                         
Gross income and      40,839  48,128   88,967     35,672  64,339  100,011
capital gains                                                            
                                                                         
Cost of sales        (8,465)       -  (8,465)    (7,342)       -  (7,342)
                                                                         
Administrative      (13,523)   (179) (13,702)   (12,682)   (297) (12,979)
expenses                                                                 
                                                                         
Operating profit      18,851  47,949   66,800     15,648  64,042   79,690
                                                                         
Finance costs                                                            
                                                                         
Interest payable     (2,458)       -  (2,458)    (2,471)       -  (2,471)
                                                                         
Profit before         16,393  47,949   64,342     13,177  64,042   77,219
taxation                                                                 
                                                                         
Taxation             (2,129)       -  (2,129)    (1,404)       -  (1,404)
                                                                         
Profit for year       14,264  47,949   62,213     11,773  64,042   75,815
                                                                         
Return per ordinary    12.18   40.95    53.13    10.05    54.67     64.72
share (pence)                                                            
                                                                         
Diluted return per     12.14   40.82    52.96      10.05   54.67    64.72
ordinary share                                                           
(pence)                                                                  


Statement of total recognised income and expense
for the year ended 31 December

                           Revenue Capital   Total Revenue Capital   Total
                              2006    2006    2006    2005    2005    2005
                                                                          
                              £000    £000    £000    £000    £000    £000
                                                                          
Return for the financial    14,264  47,949  62,213  11,773  64,042  75,815
year                                                                      
                                                                          
Foreign exchange             (303)       -   (303)     250       -     250
                                                                          
Pension actuarial gains/     3,119       -   3,119      20       -      20
(losses)                                                                  
                                                                          
Taxation on pensions         (936)       -   (936)     (6)       -     (6)
                                                                          
Total incomeand expense     16,144  47,949  64,093  12,037  64,042  76,079
relating to the year                                                      


Financial summary

Highlights

                              31 December   31 December   Change
                                     2006          2005        %
                                    pence         pence         
                                                                
Share price                        349.00        288.75     20.9
                                                                
NAV per share                      328.17        283.98     15.6
                                                                
after proposed dividend                                         
                                                                
Earnings per share                                              
                                                                
- investment trust                   7.07          5.73     23.4
                                                                
- trustee and related                5.11          4.32     18.3
services                                                        
                                                                
Group earnings per share            12.18         10.05     21.2
                                                                
Dividends per share                 10.50          9.05     16.0

Performance

                                      2006          2005
                                                        
                                         %             %
                                                        
Share price                           20.9          24.2
                                                        
NAV total return                      19.3          28.5
                                                        
FTSE Actuaries All-Share              16.8          22.0
Index total return                                      

Chairman's statement

Performance

Over the year to 31 December 2006, our net asset value total return was 19.3%
compared to a total return of 16.8% for the FTSE Actuaries All-Share Index.

Our gross revenue increased over the year by 14.5% from £35.7 million to £40.8
million. Profit attributable to shareholders was £14.3 million, an increase of
21.2% over the previous year, as a result of a 23.4% improvement in the
investment trust and an 18.2% improvement in trustee and related services.
Improved company dividends and reduced net interest payable have increased the
return from the investment trust and all our trustee related services
businesses have performed well.

Earnings and dividends

Earnings per share for the year to 31 December 2006 were 12.18p, an increase of
21.2% from the previous year. The board is recommending a final dividend of
7.10p per ordinary share (2005: 5.95p), which, together with the interim
dividend of 3.40p (2005: 3.10p) gives a total dividend of 10.50p (2005: 9.05),
an increase of 16.0%. The final dividend will be paid, subject to shareholder
approval, on 25 April 2007 to holders on the register at the record date of 16
March 2007. The policy of the company continues to be to seek growth in both
capital and income.

Investment trust

Our portfolio has been managed throughout the year by James Henderson, who has
an independent, value based approach to investment. During the year the total
return of the portfolio was 17.5%, ahead of the FTSE Actuaries All-Share Index.

We continue to select investments on the basis of what appears most attractive
in the conditions of the time. We will not pay unrealistically high prices but
hope to be able to buy growth shares on reasonable terms. We do not feel
obliged to hold shares in any particular type of company or industry or market,
but seek to find the best value. We aim to achieve a better return than the
Index by good stock picking. We believe that, in the long term, returns on
equities will exceed the cost of our long term borrowing. Our policy is to
assume only a level of gearing which we believe balances risk with the
objective of increasing the return to shareholders. However, during the year we
found it increasingly difficult to find value in global equities and the
gearing was reduced. We ended the year in a net cash position.

Growth in the global economy has been reasonably strong, with favourable
implications for company profits and stock markets. Higher energy and commodity
prices did not create the inflationary pressures that might have been expected
and company profits continued to improve.

In the UK, many companies have been benefiting from economic growth and
dividend growth has been strong.

Trustee and related services

Our trustee and related services business increased revenue by 13.1% and
underlying profit before tax by 20.3%. Most areas of the business have seen
continued growth.

The commercial trust division had a busy year and a number of high profile
appointments. Our pension trustee business has seen growth from new and
existing relationships and expects the Pensions Act 2004 to continue to provide
further opportunities. Corporate services continue to grow significantly and we
opened an office in Wilmington, Delaware to increase market share and add new
products and services in the US. Service of process is benefiting from the
links between London, New York, Delaware and Hong Kong. The New York corporate
trust business has achieved significant growth and continues to develop its
business in niche markets. Hong Kong has had a busy year as a result of the
high level of acquisition activity in China. Channel Islands developed its
position as an independent provider of trustee and corporate services.

The deficit of our defined benefit pension scheme has reduced during the year
as a result of: a special contribution of £1,615,000; a one-off contribution to
profit of £403,000 as a result of a change made to the benefits last year; and
£3,119,000 as a result of changes to discount rates and investment returns.

Staff

The trustee and related services businesses performed strongly during the year
and made a significant contribution to our income. Their success is dependent
upon the professionalism and commitment of our people, whom I should like to
thank for their hard work during the year.

Douglas McDougall


Group Balance sheet
as at 31 December

                                                  Group 
                                                        
                                        2006       2005  
                                                        
                                        £000       £000  
                                                        
Assets                                                  
                                                        
Non current assets                                      
                                                        
Property, plant and equipment             694        739
                                                        
Intangible assets                          67        113
                                                        
Investments held at fair value        365,114    380,747
through profit or loss                                  
                                                        
Other assets                                -          5
                                                        
Deferred tax assets                       705      2,106
                                                        
Total non current assets              366,580    383,710
                                                        
Current assets                                          
                                                        
Trade and other receivables            12,009      7,716
                                                        
Other accrued income and prepaid        2,751      2,419
expenses                                                
                                                        
Other current assets                        -         46
                                                        
Cash and cash equivalents              74,555     19,295
                                                        
Total current assets                   89,315     29,476
                                                        
Total assets                          455,895    413,186
                                                        
Current liabilities                                     
                                                        
Trade and other payables                9,541      8,260
                                                        
Short term borrowings                      34      5,696
                                                        
Corporation tax payable                   848        548
                                                        
Other taxation including social           430        433
security                                                
                                                        
Deferred income                         4,026      4,326
                                                        
Total current liabilities              14,879     19,263
                                                        
Non current liabilities                                 
                                                        
Long term borrowings                   39,257     39,230
                                                        
Retirement benefit obligations          1,073      6,443
                                                        
Deferred income                         8,041      8,626
                                                        
Total non current liabilities          48,371     54,299
                                                        
Total net assets                      392,645    339,624
                                                        
Equity                                                  
                                                        
Called up share capital                 5,886      5,882
                                                        
Share premium                           7,410      7,231
                                                        
Capital redemption                          8          8
                                                        
Shared based payments                     167        114
                                                        
Own shares                            (1,326)      (963)
                                                        
Capital reserves                      357,024    309,075
                                                        
Retained earnings                      23,706     18,204
                                                        
Foreign exchange reserve                (230)         73
                                                        
Total equity shareholders' funds      392,645    339,624


Group cash flow statement
for the year ended 31 December

                                                            2006      2005
                                                                          
Operating activities                                        £000      £000
                                                                          
Cash generated from operating activities                  13,794    14,948
                                                                          
Taxation                                                 (1,199)   (1,315)
                                                                          
Interest paid                                            (2,458)   (2,471)
                                                                          
Pension special contribution                             (1,615)     (885)
                                                                          
                                                               -         -
                                                                          
Operating cash flow                                        8,522    10,277
                                                                          
Investing activities                                                      
                                                                          
Capital expenditure                                        (114)      (46)
                                                                          
Expenditure on intangible assets                             (9)       (4)
                                                                          
Purchase of investments                                 (35,038)  (71,592)
                                                                          
Sale of investments                                       98,967    59,508
                                                                          
Sale of property, plant and equipment                         22        37
                                                                          
Cash flow from investing activities                       63,828  (12,097)
                                                                          
Financing activities                                                      
                                                                          
Dividends paid                                          (10,945)   (9,196)
                                                                          
Proceeds of increase in share capital                        183       212
                                                                          
Purchase of own shares                                     (363)      (36)
                                                                          
Net cash flow from financing activities                 (11,125)   (9,020)
                                                                          
Net (increase/(decrease)in cash and cash                  61,225  (10,840)
equivalents                                                               
                                                                          
Cash and cash equivalents at beginning of                 13,599    24,189
period                                                                    
                                                                          
Exchange (losses) / gains on cash and cash                 (303)       250
equivalents                                                               
                                                                          
Cash and cash equivalents at end of period                74,521    13,599
                                                                          
Cash and cash equivalents comprise                                        
                                                                          
Cash and cash equivalents at beginning of                 74,555    19,295
period                                                                    
                                                                          
Bank loans and overdrafts                                   (34)   (5,696)
                                                                          
                                                          74,521    13,599
                                                                          

Segmental Analysis

                          Investment trust  Trustee services        Total      
                                                                               
                            2006     2005     2006     2005     2006     2005  
                                                                               
                            £000     £000     £000     £000     £000     £000  
                                                                               
Segment revenue             11,480   10,941   26,741   23,556   38,221   34,497
                                                                               
Other income                    30      61      114       46       144     107     
                                                                               
Cost of sales                    -        -  (8,465)  (7,342)  (8,465)  (7,342)
                                                                               
Administration costs       (1,804)  (1,684) (11,719) (10,998) (13,523) (12,682)
                                                                               
                             9,706    9,318    6,671    5,262   16,377   14,580
                                                                               
Interest (net)             (1,260)  (2,411)    1,276    1,008       16  (1,403)
                                                                               
Return, including profit     8,446    6,907    7,947    6,270   16,393   13,177
on                                                                             
                                                                               
ordinary activities                                                            
before taxation                                                                
                                                                               
Taxation                     (168)    (197)  (1,961)  (1,207)  (2,129)  (1,404)
                                                                               
Return, including profit     8,278    6,710    5,986    5,063   14,264   11,773
                                                                               
attributable to                                                                
shareholders                                                                   
                                                                               
Return per ordinary share     7.07     5.73     5.11     4.32    12.18    10.05
                                                                               
Assets                     430,343  384,362   25,552   28,824  455,895  413,186
                                                                               
Liabilities               (46,795) (55,579) (16,455) (17,983) (63,250) (73,562)
                                                                               
Total net assets           383,548  328,783    9,097   10,841  392,645  339,624
                                                                               

Changes in geographical distribution

                 Valuation Purchases    Sales  Appreciation/ Investments
                        31      £000 Proceeds (depreciation) 31 December
                  December                                              
                                         £000           £000        2006
                      2005                                              
                                                                    £000
                      £000                                              
                                                                        
United Kingdom     273,882    26,568 (71,623)         39,298     268,125
                                                                        
North America       23,866       623 (21,643)        (1,938)         908
                                                                        
Europe              37,709     7,708  (5,701)          8,993      48,709
                                                                        
Japan               19,633         -        -        (1,423)      18,210
                                                                        
Other Pacific       25,657         -        -          3,505      29,162
                                                                        
                   380,747    34,899 (98,967)         48,435     365,114

This preliminary announcement does not comprise statutory accounts within the
meaning of Section 240 of the Companies Act 1985. The statutory accounts for
the year ended 31 December 2006 will be filed with the Registrar of Companies
in due course together with the auditors' report thereon. The information for
the year ended 31 December 2005 is an extract from the statutory accounts to
that date, which has been filed with the Registrar of Companies. Those accounts
included an audit report which was unqualified and which did not contain a
statement under section 237(2) or (3) of the Companies Act 1985.

By order of the board

Law Debenture Corporate Services Limited

Secretary

27 February 2007

Copies of the annual report will be available from the Corporation's registered
office.

The Law Debenture Corporation p.l.c. www.lawdeb.com