Half-yearly Report

MAJEDIE INVESTMENTS PLC

24 May 2007

INTERIM RESULTS

for the six months ended 31 March 2007

Financial Highlights

- Net assets per share increased by 15.4% to 443.2p

- Share price increased by 17.5% to 397.5p

- Discount to net assets narrowed from 11.9% to 10.3%

- Earnings per share increased by 26.3% to 7.2p

- Interim dividend increased by 11.8% to 3.8p
 
Performance

- Net asset value total return of 17.3%

- Total shareholder return of 19.4%

- Benchmark total return of 8.3%

Chairman's Statement

I am delighted to report that over the six months to 31 March 2007 the Group
has achieved a very strong underlying investment performance producing a net
asset value total return of 17.3%. This beat the benchmark return of 8.3% by
9.0% and continues the consistent investment outperformance over the last
three years with net asset value total return of 80.1% exceeding the benchmark
return of 58.7%.

The Group's net profit before tax for the six months was £3.7m compared with
£5.4m for the same period last year and £2.1m for the first half of the 2005
financial year. The 2005 & 2006 figures include the results of Majedie Asset
Management Limited on a consolidated basis whereas since 30 April 2006, when
our shareholding reduced from 51% to 30%, the investment has been accounted
for as an associate. Nevertheless total Group income in this period includes a
second special dividend of £1.7m from our associate and this has been a
significant contributor to earnings per share of 7.2p which show an increase
of 26.3% compared to 5.7p in the first half of last year. Note 6 refers to the
carrying value of the investment in our associate being £2m in these accounts.
The present fair value of the investment of £11.5m, which excludes the second
special dividend, as assessed for disclosure in the Company balance sheet is
not included in the consolidated balance sheet nor in the net asset value.

The Board is re-balancing the interim dividend as a proportion of the total
dividend for the year so that by next financial year it will represent
approximately 40% of the total distribution. This year therefore the interim
dividend is being increased to 3.8 pence per share compared to 3.4 pence last
year - an increase of 11.8%. The interim dividend will be paid on 29 June 2007
to shareholders on the register on 8 June 2007. The increase in the final
dividend is likely to be significantly less in percentage terms so that the
overall increase in the total dividend for the year will still be at a similar
level to that paid in recent years - being slightly ahead of the Retail Prices
Index.

The portfolio's performance for the first six months was broadly based,
outperforming in both the UK and overseas and arising from: resources, banks,
technology, real estate, general industrials, utilities, construction and
leisure.

Resources stocks have continued to benefit from the high infrastructure and
industrial growth in China and India. In addition the announced programme of
new nuclear generation plants in both the developed and emerging markets has
led to a dramatic rise in the uranium price to over US$100 per pound and
re-rating of companies with significantly undervalued assets. In Australia
uranium stocks such as Summit Resources have been very strong, whilst copper
stocks held in Canada have also produced large gains. Companies with
intellectual property in technology and general industrials made good
progress. The portfolio also benefited from the banks and utilities with high
dividends. The fund remains overweight in the UK, Canada and Australia and
underweight in the US, Europe and Japan. Hitherto the continued weakness of
the US dollar has reinforced the benefit of this structure.

The world economy has continued to grow reasonably well. It is expected that
the US economy in particular will slow down as the year progresses. However,
as US inflation has remained relatively benign, the Federal Reserve Chairman
should be able to ease monetary policy to stimulate growth later in the year.
In the UK the rise in inflation is expected to reduce in the months ahead,
allowing for a reduction in interest rates in 2008.

The latest GDP growth figure for China at over 11% shows its continued
strength and the outlook remains strong for both India and China. This
underpins the continued rise in prices across a broad range of metals, where
the fund remains overweight in exploration and mining businesses. Consensus
GDP growth forecasts for the Eurozone have slightly improved at 2.5%.
Geopolitical risk in the Middle East and a forecast shortage of oil reserves
in the long term support our high weightings in oil exploration stocks.
Additionally the portfolio favours companies with innovative new technologies
for tackling the renewable energy requirements and other industrial processes
in an environmentally friendly and profitable manner. Elsewhere in the
portfolio companies with high asset and dividend backing are well represented.

Whilst a slowdown in the developed economies is expected, a recession is not
predicted. Against this background central bankers are most likely to react as
before by relaxing monetary policy to stimulate economic growth. Investment
decisions for the Majedie portfolio continue to be made on the basis of
fundamental analysis within medium and long term timeframes.

Henry S Barlow Chairman

24 May 2007

For further information please contact Robert Clarke, Chief Executive on 020
7645 8711;

E-mail: [e-mail]



UNAUDITED CONSOLIDATED INCOME STATEMENT

for the half year ended 31 March 2007

                     Half year ended 31 March    Half year ended 31 March      Year ended 30 September
                     2007                        2006                          2006
 
                     Revenue  Capital  Total     Revenue   Capital   Total     Revenue   Capital   Total
 
               Notes £000     £000     £000      £000      £000      £000      £000      £000      £000
Investments
Gains on
investments at
fair value
through profit
or loss
 
                              31,838   31,838              31,086    31,086              22,738    22,738
 
Net investment
result
                              31,838   31,838              31,086    31,086              22,738    22,738
 
Income
Dividends and
interest
                     2,433             2,433     2,303               2,303     4,788               4,788
Client fee
income in
subsidiary                                       9,732               9,732     10,915              10,915
company
Special
dividend
income               1,698             1,698                                   1,483               1,483
Other income         74                74        29                  29        62                  62
 
Total income         4,205             4,205     12,064              12,064    17,248              17,248
 
Expenses
Administrative
expenses
                     (600)    (746)    (1,346)   (6,270)   (687)     (6,957)   (7,593)   (1,423)   (9,016)
 
Return before
finance costs
and taxation
 
                     3,605    31,092   34,697    5,794     30,399    36,193    9,655     21,315    30,970
 
Share of net
return of
associate            464               464                                     340                 340
 
Finance costs        (350)    (1,049)  (1,399)   (349)     (1,049)   (1,398)   (699)     (2,098)   (2,797)
 
Net return
before
taxation             3,719    30,043   33,762    5,445     29,350    34,795    9,296     19,217    28,513
 
Taxation             (6)               (6)       (1,179)             (1,179)   (1,331)             (1,331)
 
Net return
after taxation
for the period
 
                     3,713    30,043   33,756    4,266     29,350    33,616    7,965     19,217    27,182
 
Attributable
to:
Equity holders
of the parent
                     3,713    30,043   33,756    2,945     29,350    32,295    6,815     19,217    26,032
Minority                                         1,321               1,321     1,150               1,150
interest
 
                     3,713    30,043   33,756    4,266     29,350    33,616    7,965     19,217    27,182
 
Return per           pence    pence    pence     pence     pence     pence     pence     pence     pence
ordinary
share:
Basic and      2     7.2      57.9     65.1      5.7       56.4      62.1      13.1      36.9      50.0
diluted
 
The total column of this statement is the consolidated income statement of the
Group, 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.

These accounts have been prepared in compliance with the recognition and
measurement criteria of IFRS. See notes below.

The results for the first six months should not be taken as a guide to the
results for the full year. All revenue and capital items in the above
statement derive from continuing operations. No operations were acquired or
discontinued in the period.



UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the half year ended 31 March 2007

                   Share     Share     Capital   Share     Capital   Capital     Retained  Own       Minority  Total
                   capital   premium   redemp-   options   reserve - reserve -   earnings  shares    interest
                                       tion      reserve   realised  unrealised            reserve
                                       reserve             
 
             Notes £000      £000      £000      £000      £000      £000        £000      £000      £000      £000
 
Half year
ended 31
March 2007
30                 5,253     785       56        85        118,723   47,502      28,723    (1,908)   0         199,219
Sept-
ember
2006

 
Net return
after
tax for                                                    8,883     21,160      3,713                         33,756
the
period

Share        4                                   56                                                            56
options
expense

Dividends
declared
and          3                                                                   (3,165)                       (3,165)
paid in
period

Own shares
purchased/
sold by
Employee
Incentive                                                                                  (548)               (548)
Trust
 
31 March           5,253     785       56        141       127,606   68,662      29,271    (2,456)   0         229,318
2007
 
Half year
ended 31
March
2006

30                 5,253     785       56        37        89,507    57,501      26,723    (1,422)   405       178,845
September
2005
 
Net return
after
tax for                                                    18,981    10,369      2,945               1,321     33,616
the period

Share        4                                   22                                                            22
options
expense

Dividends
declared
and paid     3                                                                   (3,045)                       (3,045)
in year

Own
shares
purchased/
sold by
Employee                                         (24)                                      85                  61
Incentive
Trust

Adjustment
due to 4%
reduction
in the
Company's
holding
in Majedie                                                                                           97        97
Asset
Management
Limited
 
31 March 2006       5,253    785   56  35    108,488   67,870    26,623    (1,337)   1,823     209,596
 
Year
ended
30
September
2006

30                  5,253    785   56  37    89,507    57,501    26,723    (1,422)   405       178,845
September
2005
 
Net
return
after                                        29,216    (9,999)   6,815               1,150     27,182
tax for
the year

Share         4                        72                                                      72
options
expense
Dividends
declared
and paid      3                                                  (4,815)                       (4,815)
in year

Own shares
purchased/
sold by
Employee
Incentive                              (24)                                (486)               (510)
Trust

Adjustment
due to
25% reduction
in the
Company's
holding in
Majedie                                                                              804       804
Asset
Management
Limited

Removal of
minority
interest                                                                             (2,359)   (2,359)
 
30                  5,253    785   56  85    118,723   47,502    28,723    (1,908)   0         199,219
September
2006
 
These accounts have been prepared in compliance with the recognition and
measurement criteria of IFRS. See notes below.



UNAUDITED CONSOLIDATED BALANCE SHEET

at 31 March 2007

                    Notes 31 March 2007  31 March 2006  30 September
                                                        2006
 
                          £000           £000           £000
Non-current assets
Property, plant and
equipment
                          78             604            89
Goodwill                                 334
Investments at fair
value through
profit or loss      5     253,310        232,006        227,085
Investment in       6     2,011                         1,547
associate
 
                          255,399        232,944        228,721
Current assets
Trade and other           3,556          8,916          3,766
receivables
Cash and cash             7,918          14,682         4,546
equivalents
 
                          11,474         23,598         8,312
 
Total assets              266,873        256,542        237,033
 
Current liabilities
Trade and other           (3,834)        (13,118)       (4,100)
payables
 
Total assets less
current liabilities
                          263,039        243,424        232,933
 
Non-current
liabilities
Trade and other                          (121)
payables
Debenture stock           (33,721)       (33,707)       (33,714)
                          (33,721)       (33,828)       (33,714)
 
Total liabilities         (37,555)       (46,946)       (37,814)
 
Net assets                229,318        209,596        199,219
 
Represented by:
Ordinary share            5,253          5,253          5,253
capital
Share premium             785            785            785
Capital redemption        56             56             56
reserve
Share options             141            35             85
reserve
Capital reserve -         127,606        108,488        118,723
realised
Capital reserve -         68,662         67,870         47,502
unrealised
Retained earnings         29,271         26,623         28,723
Own shares reserve  4     (2,456)        (1,337)        (1,908)
 
Equity attributable
to the equity
holders of the
parent
                          229,318        207,773        199,219
 
Minority interest                        1,823
 
Total equity              229,318        209,596        199,219
 
Net asset value per       pence          pence          pence
share
Basic and fully     7     443.2          399.2          384.0
diluted
 
These accounts have been prepared in compliance with the recognition and
measurement criteria of IFRS. See notes below.



UNAUDITED SUMMARISED CONSOLIDATED CASH FLOW STATEMENT

for the half year ended 31 March 2007

                                    Half year   Half year   Year
                                    ended 31    ended 31    ended 30
                                    March       March       September
                                    2007        2006        2006
 
                                    £000        £000        £000
 
Net cash inflow from operating      2,109       6,423       7,835
activities
 
Investing activities
Purchases of investments            (59,372)    (65,661)    (133,592)
Sales of investments                65,743      73,965      137,973
Purchases of tangible assets        (3)         (89)        (42)
Exclusion of cash on Majedie Asset
Management Limited ceasing to be a
subsidiary                                                  (3,869)
 
Net cash inflow from investing      6,368       8,215       470
activities
 
Financing activities
Interest paid                       (1,392)     (1,392)     (2,783)
Equity dividends paid               (3,165)     (3,045)     (4,815)
(Purchases)/sales of own shares     (548)       4           (582)
Employees' exercise of share                    56
options
 
Net cash outflow from financing     (5,105)     (4,377)     (8,180)
activities
 
Increase in cash and cash
equivalents for period
                                    3,372       10,261      125
Cash and cash equivalents at start  4,546       4,421       4,421
of period
Cash and cash equivalents at end of 7,918       14,682      4,546
period

 
These accounts have been prepared in compliance with the recognition and
measurement criteria of IFRS. See notes below.


NOTES


1. Accounting Policies

The consolidated accounts comprise the unaudited results of the Company and
its subsidiaries and associate for the six months to 31 March 2007 and are
presented in pounds sterling, as this is the principal currency in which the
Group's transactions are undertaken.

Whilst the financial information included in this preliminary announcement has
been prepared using accounting policies consistent with International
Financial Reporting Standards (IFRSs), this announcement does not itself
contain sufficient information to comply with IFRSs. The Company published
full financial statements that comply with IFRSs on 29 November 2006. They
comprise standards and interpretations approved by the International
Accounting Standards Board, and International Financial Reporting Committee,
interpretations approved by the International Accounting Standards Committee
that remain in effect, and to the extent they have been adopted by the
European Union.

Where presentational guidance set out in the Statement of Recommended Practice
(SORP) for investment trusts issued by the Association of Investment Companies
in January 2003 (as revised in December 2005) is consistent with the
requirements of IFRS, the directors have sought to prepare the financial
statements on a basis compliant with the recommendations of the SORP.


2. Calculation of Returns per Ordinary Share

Basic returns per ordinary share in each period are based on the return on
ordinary activities after taxation attributable to equity shareholders. Basic
return per ordinary share for the period is based on 51,857,162 shares, being
the weighted average number of shares in issue after adjustment for the shares
held by the Employee Incentive Trust (half year ended 31 March 2006:
52,038,551 shares; year ended 30 September 2006: 52,016,698).

There is no dilution to the basic return per ordinary share since share
options, if exercised, would be satisfied by shares already held by the
Employee Incentive Trust.


3. Dividends

In accordance with International Accounting Standard 10: Events After the
Balance Sheet Date, interim dividends are not accounted for until paid, and
final dividends are recognised when approved in General Meeting. The following
table summarises the amounts recognised as distributions to equity holders in
the period:

                                  Half year Half year Year ended
                                  ended     ended     30 September
                                  31 March  31 March  2006
                                  2007      2006
                                  £000      £000      £000
2006 Final dividend
of 6.10p                          3,165
paid on
24 January 2007
 
2006 Interim dividend
of 3.40p                                              1,770
paid on
30 June 2006
 
2005 Final dividend
of 5.85p                                     3,045     3,045
paid on
25 January 2006
 
                                  3,165     3,045     4,815


The directors propose an interim dividend for 2007 of 3.80p per share, to be
paid on 29 June 2007.


4. Share-based payments

The Group operates two share-based payment schemes: the Discretionary Share
Option Scheme 2000 and the 2006 Long Term Incentive Plan which in turn has two
sections relating to TSR-based Awards and Matching Awards. The LTIP replaces
the Discretionary Share Option Scheme 2000 for executive directors and senior
executives.

The number of outstanding options granted by the Company are summarised in the
table below:

                                       31 March     31 March 2006 30 September
                                       2007                       2006
 
Number of outstanding options
 
Discretionary Share Option Scheme 2000 655,265      685,485       655,265
 
LTIP: TSR-based Awards                 205,571      142,046       99,648
 
LTIP: Matching Awards                  59,593                     37,397
 
                                       920,429      827,531       792,310

During the half year ended 31 March 2007 the number of options outstanding
under the LTIP TSR-based Awards increased by 105,923. This comprised 102,679
options granted on 27 November 2006 and an additional 3,244 options as a
result of the 2006 6.10p final dividend which is in accordance with the LTIP
rules.

Furthermore during the half year to 31 March 2007 the number of options
outstanding under matching awards increased by 22,196. This reflects an award
of 21,596 options granted on 24 January 2007 along with an incremental 600
options in respect of the 2006 6.10p final dividend.

During the half year to 31 March 2007 the Group recognised a total expense for
share-based payment transactions of £56,000 (half year ended 31 March 2006:
£22,000; year ended 30 September 2006: £72,000).

The total shareholding of Majedie Investments PLC Incentive Trust is 783,908
ordinary shares (31 March 2006: 475,907 and 30 September 2006: 643,726). The
shares will be held by the trust until the relevant options are exercised or
until they lapse. The cost of the shares is presented in the Consolidated
Balance Sheet under the heading `Own shares reserve', as a deduction from
shareholders' funds in accordance with IFRS 2: Share-based Payment.


5. Investments

All investments are accounted at fair value through profit or loss as defined
by IAS 39.

All investments are designated upon initial recognition as held at fair value
through profit or loss, and are measured at subsequent reporting dates at fair
value, which is either the bid price or the last traded price, depending on
the convention of the exchange on which the investment is quoted. Investments
in unit trusts or open ended investment companies are valued at the closing
price, the bid price or the single price as appropriate, released by the
relevant investment manager.

Unlisted investments are normally valued on an annual basis by the Board of
Directors taking into account relevant information as appropriate including
market prices, latest dealings, accounting information, professional advice
and the guidelines issued by the International Private Equity and Venture
Capital Association.

Unlisted investments comprise of £12,065,000 invested in the placings for
eighteen separate companies which are expected to become listed securities
after 31 March 2007.


6. Majedie Asset Management Limited

Majedie Investments PLC owns a 30% equity shareholding in Majedie Asset
Management Limited, which provides investment management and advisory services
relating to UK equities.

The carrying value of the investment in this associate company is included in
the Consolidated Balance Sheet using the equity method as follows:

                                                        31 March    30 September
 
                                                        2007        2006
                                                        £000        £000
30% share of Majedie Asset Management Limited
 
net assets at 30 April 2006                             1,011       1,011
 
Goodwill at inception                                   196         196
 
Deemed cost of investment in associate at 30 April 2006 1,207       1,207
 
Share of associate net profit since 1 May 2006          804         340
 
Investment in associate                                 2,011       1,547
As at 30 September 2006 the directors carried out a review of the fair value
of the investment in Majedie Asset Management Limited valuing the investment
in the Company balance sheet at £11,517,000 plus a special dividend receivable
of £1,483,000 totalling £13,000,000. The next fair value review will be
carried out as at 30 September 2007. In the meantime the fair value as
assessed for disclosure in the Company balance sheet is not included in the
Consolidated Balance Sheet nor in the net asset value.

At 31 March 2006 Majedie Investments PLC owned a 51% equity shareholding in
Majedie Asset Management Limited. The net assets of that company reflected in
the Consolidated Balance Sheet as at 31 March 2006 amounted to £5,821,000. The
minority interest figure disclosed in the Consolidated Balance Sheet
represented 49% of Majedie Asset Management Limited's equity share capital and
reserves as at 31 March 2006.


7. Net Asset Value per Ordinary Share

The net asset value per share has been calculated based on equity
shareholders' funds and on 51,744,092 ordinary shares (31 March 2006:
52,052,093; 30 September 2006: 51,884,274) being the shares in issue at the
period end having deducted the number of shares held by the Employee Incentive
Trust.


8. Financial Information

The financial information contained in this preliminary announcement does not
constitute full statutory accounts as defined in Section 240 of the Companies
Act 1985. The financial information for the six months ended 31 March 2007 and
31 March 2006 has not been audited.

The information for the year ended 30 September 2006, has been extracted from
the latest published audited accounts. Those accounts have been filed with the
Registrar of Companies and included the report of the auditors which was
unqualified and did not contain a statement under either Section 237(2) or (3)
of the Companies Act 1985.

Those statutory accounts were prepared in accordance with International
Financial Reporting Standards.


NOTES FOR EDITORS

Majedie Investments PLC is a self-managed investment trust with total
portfolio assets under management of over £260 million. The Company's
objective is to maximise total shareholder return over the long term whilst
increasing dividends by more than the rate of inflation. The Company's
benchmark is 70% FTSE All-Share Index and 30% FTSE World ex-UK Index
(Sterling) on a total return basis.

The Majedie Share Plan is a straightforward and low cost way of investing in
Majedie shares with a minimum lump sum of £250, or on a regular monthly basis
with £25 or more. The Majedie Corporate ISA provides a tax efficient way of
investing or saving in Majedie shares at extremely low cost. There is no
initial or annual management fee. Both maxi and mini ISAs are available with a
minimum lump sum investment of £500 or £50 per month for direct debit
subscribers. Please refer to our website: www.majedie.co.uk for further
information and/or contact the Company on 020 7626 1243 /
[e-mail].