Half Yearly Report

RNS Number : 7969R

New India Investment Trust PLC

22 November 2012

NEW INDIA INVESTMENT TRUST PLC

UNAUDITED HALF-YEARLY FINANCIAL REPORT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012

HIGHLIGHTS

Financial Summary	30 September 2012	31 March 2012	% change
Total shareholders' funds (£'000)	148,808	144,105	+ 3.3
Share price (mid-market)	219.5p	222.0p	- 1.1
Net asset value per share	251.9p	244.0p	+ 3.2
Discount to net asset value	12.9%	9.0%
Rupee to Sterling exchange rate	85.2	81.4	- 4.7

Performance (total return)	Six months ended 30 September 2012 %	Year ended 31 March 2012 %
Share price	- 1.1	- 8.8
Net asset value	+ 3.2	- 9.3
MSCI India Index (Sterling adjusted)	+ 3.3	- 20.2

INTERIM BOARD REPORT

Overview

The six months under review were marked by continued volatility and uncertainty in the world economy. Europe's debt crisis remained a global concern, as was the fragile recovery of the US economy. Countries in Asia, particularly those dependent on exports, saw more modest growth. Meanwhile, India's economy languished on the back of political stalemate.

Following the turmoil in world markets described in the Annual Report for the year ended 31 March 2012, the Company's net asset value rose by 3.2% to 251.9p during the six months to 30 September 2012. The Ordinary share price fell 1.1% to 219.5p, reflecting a widening of the discount to net asset value from 9.0% to 12.9%. The performance was narrowly behind the benchmark, the MSCI India Index, which rose by 3.3% on a total return basis.

Overall, Indian equities outperformed most of the Asia-Pacific region despite the challenging domestic economic and political environment. Deteriorating fiscal health amid moderating growth and stubborn inflation initially depressed the stockmarket that was already preoccupied with the dimming global economic outlook. While India is better insulated than other developing countries from a slowdown in the growth in world trade, sluggish growth in the Eurozone had nonetheless dampened exports. Corruption scandals that followed the crippling power outage in July further undermined investor morale.

Still, the news was not all downbeat. Domestic share prices and the rupee have rebounded strongly since the government's reforms announced towards the end of the period. Foreign investors were duly impressed: flows into the equity market spiked sharply. Of course, the marked increase in global liquidity following monetary easing by the US Federal Reserve and the European Central Bank also played a significant role. Local business confidence recovered as well, although it may be a while before the impact is felt on the economy.

Outlook

The latest policy announcements have clearly cheered investors. However, whether these initiatives will bear fruit depends on how well they are executed. Previous efforts to implement structural economic reforms have been hampered by the government's lack of parliamentary majority. If the ruling Congress party stands firm, it could revive investor confidence and restore India to its previous growth trajectory. Meanwhile, the moderation in growth looks set to continue, given that slowing global growth is pulling all of Asia down - India included. Understandably, earnings growth for the current fiscal year is expected to be marginal.

Despite the difficulties, or perhaps because of them, Indian corporates have remained nimble, having survived for so long the systemic inefficiencies. The Manager has focused on businesses they believe have robust business models and should be able to cope with the testing times ahead, just as they have done before.

Board

During the period, an independent search consultancy was engaged to assist the Board with succession planning and Mr Hasan Askari was appointed as an independent non-executive Director on 21 September 2012. He has been an investment banker since 1975, initially with SG Warburg & Co. Ltd. (now UBS Ltd.) and subsequently, with JP Morgan Chase Bank in Hong Kong and Barclays Capital in Tokyo and London. He was most recently at Old Mutual plc in London as a member of the Executive Committee responsible for the United Kingdom and Europe and later, for Asia-Pacific. He is an adviser to the Kotak Mahindra Group, one of India's leading financial services groups, and brings to the Board wide-ranging experience of investment management as well as considerable knowledge of the Indian market.

William Salomon

Chairman

22 November 2012

Principal Risks and Uncertainties

The Board seeks to set out below its view of the principal risks and uncertainties affecting its business. The Board is aware that, apart from those issues it can identify, there are likely to be matters about which it does not or cannot know which may also affect the Company.

With that reservation, the Board believes that the factors which could have the most significant adverse impact on shareholders would be likely to include:

· falls in the prices of securities in Indian companies, which may be themselves determined by local and international economic, political and financial factors and management actions;

· adverse movements in the exchange rate between sterling and the rupee as well as between other currencies affecting the overall value of the portfolio;

· a lack of skill by the Company's investment management team;

· factors which affect the discount to net asset value at which the Ordinary shares of the Company trade. These may include the popularity of the investment objective of the Company, the popularity of investment trust shares in general and the ease with which the Company's Ordinary shares can be traded on the London Stock Exchange;

· changes in or breaches of the complicated set of statutory, tax and regulatory rules within which the Company seeks to conduct its business; this includes the impact on the Company of the European Commission's Directive on Alternative Investment Fund Managers; and

· insolvency of a custodian or sub-custodian combined with a shortfall in the assets held by that custodian or sub-custodian arising from fraud, operational errors or settlement difficulties resulting in a loss of assets owned by the Company.

Some of these risks can be mitigated or managed to a greater or lesser extent by the actions of the Board in appointing competent Managers and custodians. In addition, the Board seeks to put in place, through its contractual arrangements and through various monitoring processes, controls which should avert (but do not guarantee the avoidance of) what might be regarded as operational mistakes. However, investment tends to involve both risk and opportunity regarding future prospects, and the Board cannot avoid either in the Company's search for returns.

Going Concern

In accordance with the Financial Reporting Council's guidance on Going Concern and Liquidity Risk, the Directors have undertaken a review of the Company's ability to continue as a going concern. The Company's assets consist of a diverse portfolio of listed equity shares which in most circumstances are realisable within a short timescale. The Directors are mindful of the principal risks and uncertainties disclosed above and have reviewed forecasts detailing revenue and liabilities; accordingly, the Directors believe that the Company has adequate financial resources to continue in operational existence for the foreseeable future and at least 12 months from the date of this Report.

This is also based on the assumption that the Ordinary resolution, that the Company continues as an investment trust, which will be proposed at the next Annual General Meeting of the Company, is passed as it has been in the years since it was put in place.

Statement of Directors' Responsibilities

The Directors are responsible for preparing the Half-Yearly Financial Report, in accordance with applicable law and regulations. The Directors confirm that, to the best of their knowledge:

· the condensed set of financial statements within the Half-Yearly Financial Report has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting'; and

· the Interim Management Report includes a fair review of the information required by 4.2.7R (indication of important events during the first six months of the year) and 4.2.8R (disclosure of related party transactions and changes therein) of the FSA's Disclosure and Transparency Rules.

The Half-Yearly Financial Report for the six months ended 30 September 2012 comprises the Interim Management Report in the form of the Interim Board Report, the Statement of Directors' Responsibilities and a condensed set of financial statements, and has not been audited or reviewed by the Independent Auditor pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information. The Manager's Report is provided for information only, and is the responsibility of Aberdeen Asset Management Asia Limited.

By order of the Board

William Salomon

Chairman

22 November 2012

MANAGER'S REPORT

Overview

Indian equities posted modest gains during the six months under review. The recurring themes of stubborn inflation and policy inertia, coupled with worries over slowing economic growth and corporate earnings, dominated sentiment at first. However, confidence improved in the latter half amid signs that foreign capital continued to find India attractive, particularly after Coca-Cola and IKEA's major investments. The domestic market rebounded with increasing purpose in September when the government rediscovered its resolve and rolled out a host of long-overdue reforms. This, together with additional quantitative easing in the US, helped share prices recoup earlier losses.

On the political front, policy missteps eroded faith in government, which in turn caused the rupee to weaken to new lows in June. This was evident in the proposal to remove tax exemptions on the capital gains of foreign institutional investors accessing Indian equities via Mauritius. The plan, targeted at tax avoidance, was postponed and tweaked following backlash from investors who feared that costs would increase. (Reassuringly, the onus of proof of tax avoidance has been shifted from the investor to the government.) Corruption scandals also dented the electorate's trust. Notably, the coal ministry was alleged to have foregone US$33 billion by selling mining rights too cheaply to private companies between 2005 and 2009. The incident, which came on the back of a nationwide blackout, renewed calls for prime minister Manmohan Singh to quit.

Restoring optimism to some extent was the reappointment of P Chidambaram as finance chief in August. Hopes rose that the well-regarded minister, who had previously enjoyed several successful terms in the same office, would be able to push through the restructuring needed to revive growth. In September, equity prices received a further boost after Delhi unexpectedly announced a series of market-friendly reforms back-to-back. Diesel subsidies were lowered to narrow the fiscal deficit, plans to sell minority stakes in a number of state-run companies were announced, and foreign companies were allowed to own up to 49% and 51% in local airlines and multi-brand retail businesses respectively.

Meanwhile, slower economic growth led the central bank to lower interest rates in April by a larger-than-expected 50 basis points. This was the first cut in three years. However, a poor monsoon and rising inflation, which reached 7.55% in August, subsequently stayed its hand. June-quarter GDP expansion reached 5.5%, a slight improvement from 5.3% in the previous three months.

Performance

The portfolio's net asset value rose by 3.2%, broadly in line with the 3.3% gain in its benchmark, the MSCI India Index. Our holdings in the materials, information technology and financial sectors were the top contributors to relative return. In addition, the large overweight to consumer staples proved positive as the sector was the best performing during the half year, outpacing the broader market. On the contrary, holdings in the health care, consumer discretionary and utilities sectors detracted.

Within materials, the share prices of Grasim Industries and Ambuja Cements were bolstered by good demand and strong product prices. This helped compensate for a more difficult operating environment in Grasim's viscose staple fibre unit. The lack of exposure to Jindal Steel & Power and Tata Steel was also beneficial as the steelmakers suffered from elevated raw material costs brought on by tight domestic iron ore supply.

In the IT sector, Tata Consultancy Services was lifted by healthy orders. Despite the economic problems in its key Western markets, the company still expects demand to grow as more banks implement and outsource technology. Among our financial holdings, solid loan growth buttressed ICICI Bank and Housing Development Finance Corporation, both of which continue to maintain their asset quality and capital base. Elsewhere, Godrej Consumer Products, a leader in personal care and household products, did well on account of its expanding local and overseas businesses.

Conversely, our holding in GlaxoSmithKline Pharmaceutical detracted as the drug maker's shares underperformed the broader market. Valuations appeared elevated, supported by the strength of its brand name and product pipeline. We remain attracted to its well established distribution network, market leading position and healthy cash flow generation. Gujarat Gas was pressured by concerns that utility companies would be required to lower gas tariffs, which could hurt profit margins. As for Hero MotoCorp, the motorcycle maker lagged amid keener domestic competition and expectations of a demand slowdown following the weak monsoon. Nevertheless, it maintains a net cash balance sheet and is making progress in overseas markets after the termination of its long-term collaboration with Japan's Honda Motor, which had earlier prevented it from pursuing growth abroad.

Portfolio Activity

During the half year, we introduced Jammu & Kashmir Bank, a dominant player in its home state where growth is outpacing the rest of the country thanks to improved political stability, which has bolstered tourism and infrastructure investment. This helped the lender achieve loan growth of 26% in 2011. Additionally, it has ample capital to continue expanding within the state or beyond in the years ahead.

Outlook

The reforms are a move in the right direction, but implementation will require cooperation from individual states. This will not be easy. Already, these belated attempts to revive growth have cost the ruling Congress party a key ally, resulting in a reshaping of the coalition government, which in turn has necessitated a cabinet reshuffle, announced at the time of writing. There is the chance that policymakers may backpedal when faced with vociferous opposition, as they have done before. But the threat of a credit-rating downgrade, coupled with the urgent need for investments, might prove to be bigger risks, compelling Delhi to stay committed to its reform drive and fiscal consolidation. That said, any restructuring will take time to gain traction. As for the central bank, its role appears limited for now given persistent inflation. Against this backdrop, market uncertainty is likely to resurface, capping the recent rally. Nevertheless, we are confident of our holdings and believe they have the wherewithal to withstand these headwinds, supported by their robust fundamentals.

Aberdeen Asset Management Asia Limited

Manager

22 November 2012

INVESTMENT PORTFOLIO - CONSOLIDATED

		Valuation	Net assets
Company	Sector	£'000	%
Housing Development Finance Corporation	Financials	14,747	9.9
Infosys{A}	Information Technology	13,772	9.2
ICICI Bank	Financials	12,718	8.5
Tata Consultancy Services	Information Technology	12,145	8.2
Hindustan Unilever	Consumer Staples	6,634	4.5
Grasim Industries{A}	Materials	6,253	4.2
ITC	Consumer Staples	6,147	4.1
Godrej Consumer Products	Consumer Staples	6,127	4.1
Ambuja Cements{A}	Materials	5,744	3.9
Hero MotoCorp	Consumer Discretionary	5,711	3.8
Top ten investments		89,998	60.4
Bosch	Consumer Discretionary	5,447	3.7
HDFC Bank	Financials	5,153	3.5
MphasiS	Information Technology	5,065	3.4
GlaxoSmithKline Pharmaceuticals	Healthcare	4,062	2.7
Gujarat Gas	Utilities	3,691	2.5
Nestlé India	Consumer Staples	3,549	2.4
Piramal Enterprises	Healthcare	3,526	2.4
Container Corporation of India	Industrials	3,372	2.3
Sanofi India	Healthcare	3,254	2.2
GAIL (India) GDR	Utilities	2,978	2.0
Top twenty investments		130,095	87.5
Kansai Nerolac Paints	Materials	2,945	2.0
ABB India	Industrials	2,591	1.7
Tata Power	Utilities	2,446	1.6
Ultratech Cement{A}	Materials	2,439	1.6
Bharti Airtel	Telecommunication Services	2,244	1.5
Jammu & Kashmir Bank	Financials	2,190	1.5
CMC	Information Technology	2,068	1.4
Castrol India	Materials	1,423	1.0
Total investments		148,441	99.8
Net current assets		367	0.2
Net assets		148,808	100.0


{A} Comprises equity and listed or tradeable ADR and GDR holdings.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		Six months ended				Six months ended
		30 September 2012				30 September 2011
		(unaudited)				(unaudited)
		Revenue	Capital		Revenue		Capital
		return	return	Total	return		return	Total
	Notes	£'000	£'000	£'000	£'000		£'000	£'000
Total revenue	3	1,645	-	1,645	1,888		-	1,888
		_______	_______	_______	_______		_______	_______
Gains/(losses) on investments held at fair value		-	4,151	4,151	-		(18,490)	(18,490)
Currency gains/(losses)		-	5	5	-		(11)	(11)
		_______	_______	_______	_______		_______	_______
		1,645	4,156	5,801	1,888		(18,501)	(16,613)
		_______	_______	_______	_______		_______	_______

Expenses
Investment management fees		(685)	-	(685)	(755)		-	(755)
Other administrative expenses		(381)	-	(381)	(398)		-	(398)
		_______	_______	_______	_______		_______	_______
Profit/(loss) before taxation		579	4,156	4,735	735		(18,501)	(17,766)
Taxation	4	(32)	-	(32)	(25)		-	(25)
		_______	_______	_______	_______		_______	_______
Profit/(loss) for the period		547	4,156	4,703	710		(18,501)	(17,791)
		_______	_______	_______	_______		_______	_______
Return per Ordinary share (pence)	5	0.93	7.03	7.96	1.20		(31.31)	(30.11)
		_______	_______	_______	_______		_______	_______

The Group does not have any income or expense that is not included in profit for the period, and therefore the "Profit for the period" is also the "Total comprehensive income for the period", as defined in International Accounting Standard 1 (revised).

The total column of this statement represents the Statement of Comprehensive Income of the Group, prepared in accordance with International Financial Reporting Standards ("IFRS"). The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies.

All items in the above statement derive from continuing operations.

All income is attributable to the equity holders of New India Investment Trust PLC. There are no minority interests.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Cont'd)

		Year ended
		31 March 2012
		(audited)
		Revenue	Capital
		return	return	Total
	Notes	£'000	£'000	£'000
Total revenue	3	2,649	53	2,702
		_______	_______	_______
Gains/(losses) on investments held at fair value		-	(15,116)	(15,116)
Currency gains/(losses)		-	(36)	(36)
		_______	_______	_______
		2,649	(15,099)	(12,450)
		_______	_______	_______

Expenses
Investment management fees		(1,456)	-	(1,456)
Other administrative expenses		(775)	-	(775)
		_______	_______	_______
Profit/(loss) before taxation		418	(15,099)	(14,681)
Taxation	4	(58)	-	(58)
		_______	_______	_______
Profit/(loss) for the period		360	(15,099)	(14,739)
		_______	_______	_______
Return per Ordinary share (pence)	5	0.61	(25.56)	(24.95)
		_______	_______	_______

CONSOLIDATED BALANCE SHEET

		As at	As at	As at
		30 September	30 September	31 March
		2012	2011	2012
		(unaudited)	(unaudited)	(audited)
	Notes	£'000	£'000	£'000
Non-current assets
Investments held at fair value through profit or loss		148,441	140,194	142,664
		__________	__________	__________
Current assets
Cash at bank		716	710	1,575
Other receivables		109	1,190	329
		__________	__________	__________
Total current assets		825	1,900	1,904
		__________	__________	__________
Total assets		149,266	142,094	144,568

Current liabilities
Other payables		(458)	(1,042)	(463)
		__________	__________	__________
Total current liabilities		(458)	(1,042)	(463)
		__________	__________	__________
Net assets		148,808	141,052	144,105
		__________	__________	__________
Capital and reserves
Ordinary share capital	8	14,768	14,768	14,768
Share premium account		25,406	25,406	25,406
Special reserve		15,778	15,778	15,778
Capital redemption reserve		4,484	4,484	4,484
Capital reserve	9	86,540	78,982	82,384
Revenue reserve		1,832	1,634	1,285
		__________	__________	__________
		148,808	141,052	144,105
		__________	__________	__________
Net asset value per Ordinary share (pence)	10	251.92	238.79	243.96
		__________	__________	__________

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Six months ended 30 September 2012 (unaudited)
		Share		Capital
	Share	premium	Special	redemption	Capital	Revenue
	capital	account	reserve	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 March 2012	14,768	25,406	15,778	4,484	82,384	1,285	144,105
Net gain on ordinary activities after taxation	-	-	-	-	4,156	547	4,703
	________	________	________	________	________	________	________
Balance at 30 September 2012	14,768	25,406	15,778	4,484	86,540	1,832	148,808
	________	________	________	________	________	________	________

Six months ended 30 September 2011 (unaudited)
		Share		Capital
	Share	premium	Special	redemption	Capital	Revenue
	capital	account	reserve	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 March 2011	14,768	25,406	15,778	4,484	97,483	923	158,842
Net (loss)/gain on ordinary activities after taxation	-	-	-	-	(18,501)	710	(17,791)
Return of unclaimed dividends	-	-	-	-	-	1	1
	________	________	________	________	________	________	________
Balance at 30 September 2011	14,768	25,406	15,778	4,484	78,982	1,634	141,052
	________	________	________	________	________	________	________

Year ended 31 March 2012 (audited)
		Share		Capital
	Share	premium	Special	redemption	Capital	Revenue
	capital	account	reserve	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 March 2011	14,768	25,406	15,778	4,484	97,483	923	158,842
Net (loss)/gain on ordinary activities after taxation	-	-	-	-	(15,099)	360	(14,739)
Return of unclaimed dividends	-	-	-	-	-	2	2
	________	________	________	________	________	________	________
Balance at 31 March 2012	14,768	25,406	15,778	4,484	82,384	1,285	144,105
	________	________	________	________	________	________	________

CONSOLIDATED CASH FLOW STATEMENT

	Six months ended	Six months ended	Year ended
	30 September	30 September	31 March
	2012	2011	2012
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Operating activities
Profit/(loss) before taxation	4,735	(17,766)	(14,681)
(Gains)/losses on investments held at fair value through profit or loss	(4,151)	18,490	15,116
Net (gains)/losses on foreign exchange	(5)	11	36
Net purchases of investments held at fair value through profit or loss	(1,626)	(1,144)	(382)
Increase in amounts due from brokers	-	(863)	-
Decrease/(increase) in other receivables	221	254	(13)
(Decrease)/increase in amounts due to brokers	(167)	239	-
Increase/(decrease) in other payables	198	(1,424)	(1,388)
	__________	__________	__________
Net cash outflow from operating activities	(795)	(2,203)	(1,312)

Taxation paid	(69)	-	(2)
	__________	__________	__________
Net cash outflow from operating activities	(864)	(2,203)	(1,314)

Financing activities
Return of unclaimed dividends	-	1	2
	__________	__________	__________
Net cash inflow from financing activities	-	1	2
	__________	__________	__________
Net decrease in cash and cash equivalents	(864)	(2,202)	(1,312)

Cash and cash equivalents at the start of the period	1,575	2,923	2,923
Effect of foreign exchange rate changes	5	(11)	(36)
	__________	__________	__________
Cash and cash equivalents at the end of the period	716	710	1,575
	__________	__________	__________

Notes to the Half-Yearly Financial Report

1.	Principal activity
	The principal activity of the Company is that of an investment trust company within the meaning of Section 1158 of the Corporation Tax Act 2010.

	The principal activity of its foreign subsidiary is similar in all relevant respects to that of its United Kingdom parent.

Accounting policies

The Group's financial statements have been prepared in accordance with International Accounting Standard ('IAS') 34 - 'Interim Financial Reporting', as adopted by the International Accounting Standards Board (IASB), and interpretations issued by the International Reporting Interpretations Committee of the IASB (IFRIC). The Group's financial statements have been prepared using the same accounting policies applied for the year ended 31 March 2012 financial statements, which received an unqualified audit report.

		Six months ended	Six months ended	Year ended
		30 September 2012	30 September 2011	31 March 2012
3.	Income	£'000	£'000	£'000
	Income from investments
	Overseas dividends	1,644	1,886	2,697
	Other operating income
	Deposit & other interest	1	2	5
		__________	__________	__________
	Total income	1,645	1,888	2,702
		__________	__________	__________

			Six months ended	Six months ended	Year ended
			30 September 2012	30 September 2011	31 March 2012
4.	Tax on ordinary activities		£'000	£'000	£'000
	(a)	Current tax:
		Overseas tax	32	25	58
			__________	__________	__________

	(b)	Factors affecting the tax charge for the year or period
		The tax charged for the period can be reconciled to the profit per the Consolidated Statement of Comprehensive Income as follows:

			Six months ended	Six months ended	Year ended
			30 September 2012	30 September 2011	31 March 2012
			£'000	£'000	£'000
		Profit/(loss) before tax	4,735	(17,766)	(14,681)
			__________	__________	__________
		Corporation tax on profit/(loss) at the standard rate of 24% (30 September 2011 and 31 March 2012 - 26%)	1,136	(4,619)	(3,816)
		Effects of:
		(Gains)/losses on investments held at fair value through profit or loss not taxable	(996)	4,807	3,930
		Currency (gains)/losses not taxable	(1)	3	9
		Movement in excess expenses	256	299	578
		Non-taxable dividend income	(395)	(490)	(701)
		Overseas tax	32	25	58
			__________	__________	__________
		Current tax charge	32	25	58
			__________	__________	__________

		The Company is exempt from corporation tax on capital gains provided it obtains agreement from HM Revenue & Customs that the tests within Sections 1158-1159 of the Corporation Tax Act 2010 have been met. Under Mauritian taxation laws, no Mauritian capital gains tax is payable on profits arising from the sale of securities.

5.	Return per Ordinary share
	The basic earnings per Ordinary share is based on the net profit after taxation of £4,703,000 (30 September 2011 - net loss of £17,791,000; 31 March 2012 - net loss of £14,739,000), and on 59,070,140 (30 September 2011 - 59,070,140; 31 March 2012 - 59,070,140) Ordinary shares, being the weighted average number of Ordinary shares in issue during the period.

	The earnings per Ordinary share can be further analysed between revenue and capital as follows:

		Six months ended	Six months ended	Year ended
		30 September 2012	30 September 2011	31 March 2012
		p	p	p
	Revenue return per share	0.93	1.20	0.61
	Capital return per share	7.03	(31.31)	(25.56)
		__________	__________	__________
	Total	7.96	(30.11)	(24.95)
		__________	__________	__________

		Six months ended	Six months ended	Year ended
		30 September 2012	30 September 2011	31 March 2012
		£'000	£'000	£'000
	Revenue return total	547	710	360
	Capital return total	4,156	(18,501)	(15,099)
		__________	__________	__________
	Total	4,703	(17,791)	(14,739)
		__________	__________	__________
	Weighted average number of Ordinary shares in issue	59,070,140	59,070,140	59,070,140
		__________	__________	__________

6.	Dividends on equity shares
	No interim dividend has been declared in respect of either the six months ended 30 September 2012 or 30 September 2011.

	During the year ended 31 March 2012, a dividend of £345,000 (2011 - £150,000) was paid up from the subsidiary company to the parent company.

7.	Transaction costs
	During the period expenses were incurred in acquiring or disposing of investments classified as fair value though profit or loss. These have been expensed through capital and are included within gains/(losses) on investments in the Consolidated Statement of Comprehensive Income. The total costs were as follows:

		Six months ended	Six months ended	Year ended
		30 September 2012	30 September 2011	31 March 2012
		£'000	£'000	£'000
	Purchases	13	29	32
	Sales	7	27	33
		__________	__________	__________
		20	56	65
		__________	__________	__________

8.	Ordinary share capital
	As at 30 September 2012 there were 59,070,140 (30 September 2011 and 31 March 2012 - 59,070,140) Ordinary shares in issue.

9.	Capital reserve
	The capital reserve reflected in the Consolidated Balance Sheet at 30 September 2012 includes gains of £64,386,000 (30 September 2011 - gains of £58,993,000; 31 March 2012 - gains of £61,418,000) which relate to the revaluation of investments held at the reporting date.

10.	Net asset value per Ordinary share
	The basic net asset value per Ordinary share is based on a net asset value of £148,808,000 (30 September 2011 - £141,052,000; 31 March 2012 - £144,105,000) and on 59,070,140 (30 September 2011 and 31 March 2012 - 59,070,140) Ordinary shares, being the number of Ordinary shares in issue at the period end.

11.	Half-Yearly Report
	The financial information contained in this Half-Yearly Report does not constitute statutory accounts as defined in Sections 434 - 436 of the Companies Act 2006. The financial information for the six months ended 30 September 2012 and 30 September 2011 has not been audited.

	The information for the year ended 31 March 2012 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the Independent Auditor on those accounts contained no qualification or statement under Section 237 (2), (3) or (4) of the Companies Act 2006.

	The Half-Yearly Report has not been reviewed or audited by the Company's Independent Auditor.