Final Results

Aurora Investment Trust plc
ANNOUNCEMENT OF RESULTS
For the year ended 29 February 2008


CHAIRMAN'S STATEMENT
The Year's Returns:
NAV:                -17.8% to 203.0p;


Sadly, I am afraid, this last year did not turn out - as we all hoped
it might - to be the (Chinese) year of the Golden Pig - a prosperous
one.  Indeed I think it could best be described as a pig of a year -
without wanting to be unkind to pigs.  Our net asset value declined
by 17.8% from 246.9p to 203.0p as almost all of our investment themes
lost out - with one very notable exception, our investment in mining
stocks.

It may sound rather corny to say that it was a year of two halves but
rather strangely our own half year more or less coincided with the
peaking of the stock market as the enormity of the banking crisis
began to dawn on investors.  The stock market, as measured by our
benchmark, the FTSE All-share Index, crept up a little in the first
half - rising by 1.9% - largely unaware that the storm clouds were
gathering.  We had a poor first half with our own net asset value
falling by 7.5% to 228.4p per share.  However with the breaking of
the news of events at Northern Rock towards the end of our first
half, reality set in and the stock market declined by 7.6% over the
next six months, leaving it 5.8% lower over the year.  Our own net
asset value fell by a further 11.1%, rounding off a very difficult
year.

The numbers behind our own performance can be broken down into the
major themes that we have backed in recent years, notably Ireland,
house building, mining and our concept stocks.  Our mining stocks
added £4.8 million to the value of the portfolio during 2008 but this
impressive return was more than offset by the losses from our
commitments to building & construction (- £3.8 million), Ireland (-
£3.8 million) and our concept stocks (- £3.7 million).  The lesson to
be learnt from all of this is that good investment themes can and
often do get over valued (the technology stocks in 2000 for instance)
and indeed that happened to house building and Irish stocks and
shares.  While the themes remain good ones, the prospects for their
shares remain clouded in the shorter term.

Individually James came up with a real winner in making a
considerable commitment to Rio Tinto (+ £2.8 million).  As the tables
below show, it earned us a large return during the year.  Indeed the
top five contributors were all from the natural resource area.  The
bottom five were all from the other three themes mentioned earlier
with our holding in Medical Marketing (- £1.5 million) being the
worst.

The top five contributors and the top five detractors to the returns
of the portfolio were as follows:





+--------------------------------------------------------------+
|                    | Increase in value | Contribution to NAV |
| Top 5 Contributors |                   |                     |
|--------------------+-------------------+---------------------|
| 1. Rio Tinto       | + £2,794,000      |       +20.5p        |
|--------------------+-------------------+---------------------|
| 2. Xstrata         |    + £620,000     |       + 4.6p        |
|--------------------+-------------------+---------------------|
| 3. Antofagasta     |    + £611,000     |       + 4.5p        |
|--------------------+-------------------+---------------------|
| 4. BG Group        |   +  £608,000     |       + 4.5p        |
|--------------------+-------------------+---------------------|
| 5. BHP Billiton    |    + £415,000     |       + 3.1p        |
|--------------------+-------------------+---------------------|
| TOP 5 CONTRIBUTORS | + £5,048,000      |       +37.1p        |
+--------------------------------------------------------------+

.

+-------------------------------------------------------------------+
|                         | Decrease in value | Detraction from NAV |
| Top 5 Detractors        |                   |                     |
|-------------------------+-------------------+---------------------|
| 1. Medical Marketing    | - £1,535,000      |       - 11.3p       |
|-------------------------+-------------------+---------------------|
| 2. Barratt Developments | - £1,464,000      |       - 10.8p       |
|-------------------------+-------------------+---------------------|
| 3. Persimmon            | - £1,406,000      |       - 10.3p       |
|-------------------------+-------------------+---------------------|
| 4. Anglo Irish Bank     | - £1,200,000      |      -   8.8p       |
|-------------------------+-------------------+---------------------|
| 5. Gartmore Irish IT    |    - £922,000     |       -  6.8p       |
|-------------------------+-------------------+---------------------|
| TOP 5 DETRACTORS        | - £6,527,000      |       - 48.0p       |
+-------------------------------------------------------------------+



The net asset value was also affected by two other influences - the gearing and
the buying back of shares.  During the course of the year - as it became clear
that the banking crisis was a pretty serious matter - we reduced our borrowings
from £7.7 million to £1.1 million - thereby reducing the gearing from 17.2% of
net assets at the beginning of the year to 3.7% at the year end.  The exact
amount by which the gearing exacerbated the decline in our net asset value is
difficult to calculate - given the number of share buy backs during the course
of the year- but suffice it to say that it made matters worse.

I will comment later on our buy back policy but I estimate that the 1,505,000
shares that we bought back into Treasury made a positive contribution of circa
3.5p per share to our return for the year.

Long Term NAV Returns:       5 Years:          +  64.6% to 203.0p;
           Benchmark:         +71.3%
                                                     Since launch:  + 107.6% to
203.0p;            Benchmark:         +39.8%

Every year I emphasise that our stated objective for Shareholders is to achieve
capital growth over the long-term.  Your Board regards five years as the
appropriate time over which to judge the long-term returns of the Company.

The five year net asset value return of 64.6% - amounting to 10.5% per annum -
is a perfectly respectable long term return so that the absolute goal of a
positive return is fulfilled but our secondary objectives of beating the market
and the other investment trusts in our peer group were not achieved.  The FTSE
All-share Index rose by 71.3% or 11.4% per annum.

The return since launch of 107.6% or circa 7% per annum is rather less good in
absolute terms but then a lot better than the stock market itself.

Shareholders' Total Returns:  Share price over: one year:        - 41.0p
               or            - 18.4%

        five years:         +86.5p               or            + 91.1%

        since launch:   +81.5p               or            + 81.5%

Important as the net asset value returns are to shareholders, it is the share
price returns that ultimately matter.  In this respect the net asset value
returns, the dividends and the change in the discount at which the shares sell
in relation to the net asset value together determine shareholders' returns.

The figures above show the changes in the share price over the three periods;
the table below shows how the three influences have impacted the total return
that shareholders have earned.

For the first time in the life of the Company we have been actively buying back
shares - into treasury.  As stated earlier we acquired 1.5 million shares at a
cost of £2.8 million or circa 188p per share.  There are two important reasons
why we should buy back shares at a discount to the net asset value - being that
it enhances the net asset value and that it helps contain the level of the
discount.  However there is one reason for not doing so, namely that it shrinks
the market value of the Company - or, in stock market jargon, the liquidity of
the shares.  It is the policy of the Board to buy back shares if the discount
is higher than we would like it to be.  Indeed we are acutely aware that
shareholders supported the continuation of the Company at the last AGM when the
discount was somewhat lower than it is now.  At our year end it stood at circa
10.5%, having risen from c.9% a year ago and from as low as c.6% in the year,
during which time investment trust discounts generally widened from c7% to
c.8%.  Although it is not easy to reduce the discount during bear markets, it
is our longer-term goal that the discount be considerably lower than the
current levels.





+-------------------------------------------------------------------------+
|Analysis of            |   One year   |   Five years   |  Since Launch   |
|shareholders' return   |              |                |                 |
|-----------------------+--------------+----------------+-----------------|
|Change in NAV per share|- 43.9p|-17.8%|+ 79.7p |+64.6% |+105.2p |+107.6% |
|-----------------------+-------+------+--------+-------+--------+--------|
|Change in discount     | +2.9p |      |  + 6.8p|       |-  23.7p|        |
|-----------------------+-------+------+--------+-------+--------+--------|
|                       |       |      |        |       |        |        |
|-----------------------+-------+------+--------+-------+--------+--------|
|Increase in share price|- 41.0p|-18.4%|+ 86.5p |+91.1% |+  81.5p|+  81.5%|
|-----------------------+-------+------+--------+-------+--------+--------|
|Dividends              |+  3.1p|      |+ 14.9p |       |+  30.6p|        |
|-----------------------+-------+------+--------+-------+--------+--------|
|                       |       |      |        |       |        |        |
|-----------------------+-------+------+--------+-------+--------+--------|
|Total Shareholders'    |-37.9p |-17.0%|+101.4p |+106.7%|+112.1p |+112.1% |
|Return*                |       |      |        |       |        |        |
+-------------------------------------------------------------------------+

*NB dividends not reinvested


Annual General Meeting:  at 12 pm on 2nd July, 2008 at 145-157 St
John St., London, EC1

The Dividend:  The consolidated revenue account suffered this year
when James decided to dispose of all of the investments in our
trading subsidiary, an important thing to do if markets are weak and
trading profits difficult to come by.  Adding back the trading losses
of £348,000 to the £62,000 actually earned made a profit of £410,000
and the Directors recommend a dividend of 3.15p per share, up from
3.10p last year.

The Annual Report:  The first of the Resolutions that you, the
Shareholders, are asked to approve at the forthcoming Annual General
Meeting is the adoption of the Report & Accounts.  In that respect
there are two new and significant additions to those of last year -
the adoption of IFRS7 in Note 19 on page 44 (headed "Financial
instruments - risk analysis") and the rather longer and more formal
statement of the Company's investment policy to be found on page 12.

It is my own belief - and I may say that of many others - that IFRS7
is a bad accounting standard, being one that is devised to fit all
companies whatever the nature of their businesses.  It concerns the
identification, measurement and management of risk.  Like so many
rules and regulations the idea behind it is sensible but the
application not so.  The standard determines that the five main
financial risks that shareholders take in investing in companies such
as ours can be categorised as market price risk, interest rate risk,
currency risk, credit risk and, finally, liquidity risk.  It seeks to
measure these risks and then requires that you state how these risks
are managed.  I would like to emphasise that they are not the main
five risks; they cannot be measured satisfactorily and they cannot be
managed, rather only mitigated.

The main risk that an investor in any fund faces is that he/she will
lose money at the point in time that the investment is realised.  The
main risks that a shareholder in Aurora Investment Trust faces are
those of poor stock selection, undue concentration in any one sector
or stock and investment in overvalued stocks and shares.  James's own
portfolio management style is that of making quite large investments
in a selected few sectors of the stock market - he is what is often
referred to as a "conviction" investor.  Providing that he chooses
the right stocks and the right sectors and doesn't acquire them at
overvalued prices (or indeed to hold on to them at overvalued
prices), then shareholders are likely to make good returns.  The main
risk that shareholders face is that he does not perform these
functions profitably.   The one other risk that should be highlighted
is that the discount widens resulting in lower returns than have been
earned by the portfolio alone.  I believe that it is important that
shareholders understand the nature of the risk of investing in Aurora
shares which is not the same as the risks identified by IFRS7.

The other new section of the Annual Report that I would like to draw
to your attention is the formal statement of the investment policy
which is outlined on page 12.  The recent review of Chapter 15 (that
section of the London Stock Exchange's Listing Rules for investment
trust companies) requires that the investment policy is set out in
full, including statements regarding the limits to the amount that
can be invested in any one stock or any one sector.  Having laid it
out formally, I should state that material changes to it can only be
made with shareholders' approval.

I do urge as many shareholders as possible to join us for the Annual
General Meeting.  It will be held at 12pm at Cavendish
Administration's offices, 145-157 St John Street, London (Farringdon
tube station).  It is the occasion when shareholders can meet all of
the directors and ask questions or make comments or suggestions which
we would welcome and which we feel that all shareholders should have
the benefit of hearing.  Please come and join us.

Current Outlook and Prospects:  Our prospects depend on two things:
on those for the stock market and on ourselves.

The current banking crisis has been a long time coming and, as
shareholders are only too well aware, erupted onto  centre stage with
the debacle at Northern Rock.  It had been popularly thought of as
the sub prime mortgage crisis, which was the cause of the banking
crisis but it is not the case; the sub prime mortgage crisis was
merely the catalyst that set off a widespread banking crisis which
incorporates bad lending practices in many different areas including
mortgages, property funds, hedge funds, private equity funds,
consumer credit cards etc.  Nor was the crisis born in the United
States; rather it came about as a consequence of the widespread
ambition and huge greed of those involved in the banking industry in
many, many countries in the world.  I am afraid it is fair to say
that there could well have been a banking crisis in the UK without
there having been one in the United States.

It is important to understand that the banking crisis is broadly
based and pervasive and likely to have economic consequences.
Expenditure by governments and consumers will be constrained by it;
borrowing money will be more difficult and more expensive.  The
history of banking crises is such that is reasonable to suppose there
will be a recession of some sort in both the United States and the
United Kingdom.

However, the important emerging economies of China, India, Brazil and
Russia are likely to continue to grow for a number of reasons.  The
growth in China stems from a very high savings rate, high standards
of education, urbanisation and high levels of manufacturing and
infrastructure investment.  Much the same is true about India.
Brazil and Russia are important suppliers of commodities to China and
India and their economies will feed off the growth of the first two.
It is an excellent long term story and should provide the basis of
good long term global economic growth.  However we should not get too
carried away by the situation because the growth of the emerging
economies will have hiccups from time to time as those countries deal
with the problems that high growth rates generate - pollution, water
shortages, congestion, inflation and social unrest.  Our experiences
in Ireland have taught us that problems can emerge with high economic
growth rates.

As for our own contribution to our own long term prospects - it
should be said that after 3 years of decidedly disappointing results
we are chastened but not discouraged.  We are very conscious of the
confidence shareholders placed in us when allowing the Company to
continue last year and we are aware of the need to justify their
confidence; we must do better.  We have learnt some important lessons
and we intend to take advantage of them: they include not investing
large amounts in unseasoned companies and remembering to sell when
the time is appropriate.  Although James's theme of disinflation is
no longer relevant in the world at the moment, his long term themes
of house building, Ireland, global economic growth and transportation
(to name but four) remain valid stories.  That he can identify
exciting sectors in which to invest is well proven; I am sure he will
continue to do so.  With some discipline borne from the lessons that
we have learnt over the last 3 years, I believe that we can achieve
the sort of good returns that investors expect of us over the next
few years..

Alex Hammond-Chambers
Chairman
30 May 2008



TOP TEN HOLDINGS IN COMPANIES
AT 29 FEBRUARY 2008

All holdings are of ordinary shares, unless otherwise stated

                             By valuation   Percentage of
                                    £'000       Portfolio
Rio Tinto                           2,716            9.52
Anglo Irish Bank                    2,411            8.45
Scottish & Southern Energy          1,846            6.47
Gartmore Irish Growth Fund          1,845            6.47

Arriva                              1,639            5.75
Antofagasta                         1,422            4.98
Standard Chartered                  1,254            4.40

BP                                  1,228            4.30
BTG                                 1,167            4.09
Drax Group                          1,017            3.57

                                   16,545           58.00

Other holdings                     11,982           42.00

Total investments                  28,527          100.00




PORTFOLIO ANALYSIS
AT 29 FEBRUARY 2008


                                       Percentage of Portfolio

Information Technology                                    4.20
Resources                                                31.99
General Industries                                        1.08
Basic Industries                                          5.52
AIM                                                       5.11
Services                                                 10.40
Financials                                               21.26
Fixed Interest                                            1.56
Investment Companies                                      8.84
Utilities                                                10.04
                                                          100%

Investments in the Republic of Ireland                  17.46%



CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 29 FEBRUARY 2008


  Year ended 29 February 2008   Year ended 28 February 2007




                    Revenue  Capital    Total   Revenue Capital Total
                      £'000    £'000    £'000     £'000   £'000 £'000


Gains on                  -  (5,860)  (5,860)         -     795   795
investments at fair
value through
profit or loss
Exchange                  -    (177)    (177)         -     144   144
differences on
overdraft
Realised losses of    (353)        -    (353)      (58)       -  (58)
trading subsidiary
at fair value
through profit or
loss

Investment income     1,111        -    1,111       921       -   921
Total income            758  (6,037)  (5,279)       863     939 1,802
Investment            (169)    (169)    (338)     (195)   (195) (390)
management fees
Other expenses        (282)        -    (282)     (207)       - (207)
Profit before           307  (6,206)  (5,899)       461     744 1,205
finance costs and
tax
Finance costs         (236)    (236)    (472)     (236)   (236) (472)
Profit before tax        71  (6,442)  (6,371)       225     508   733
Tax                     (9)        -      (9)         -       -     -
Profit for the year      62  (6,442)  (6,380)       225     508   733

Earnings per share     0.42 (43.83p) (43.41p)     1.49p   3.36p 4.85p
- basic and diluted



The total column of this statement represents the Group's Income
Statement, prepared under IFRS.  The revenue and capital columns,
including the revenue and capital earnings per share data, are
supplementary information prepared under guidance published by the
AIC.

All revenue and capital items in the above statement derive from
continuing operations.  No operations were acquired or discontinued
during the period.  All revenue is attributable to the equity holders
of the parent company.  There are no minority interests.

The Board recommends a final dividend of 3.15p per share


CONSOLIDATED BALANCE SHEET
AT 29 FEBRUARY 2008


                                                    2008      2007
                                                   £'000     £'000

NON-CURRENT ASSETS
Investments at fair value through profit or loss  28,527    44,864

CURRENT ASSETS
Sales for future settlement                          294         -
Other receivables                                    101        40
Taxation recoverable                                  14        41
Cash and cash equivalents                            322       337
                                                     731       418

TOTAL ASSETS                                      29,258    45,282

CURRENT LIABILITIES:
Purchases for future settlement                      447       120
Other payables                                       126       125
Bank overdraft                                     1,067     7,740
                                                   1,640     7,985


TOTAL ASSETS LESS CURRENT LIABILITIES             27,618    37,297

EQUITY
Called up share capital                            3,777     3,777
Share premium account                             10,997    10,997
Realised capital reserve                          15,067    14,886
Unrealised capital reserve                       (1,923)     7,539
Revenue reserve                                    (300)        98

TOTAL EQUITY                                      27,618    37,297

Net assets per ordinary share                    203.04p   246.88p



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2008



2008
                    Share   Share Realised Unrealised Revenue   Total
                  capital premium  capital    capital reserve
                          account  reserve    reserve
                    £,000   £,000    £,000      £,000   £,000   £,000

Opening equity      3,777  10,997   14,886      7,539      98  37,297

Profit/(loss) for       -       -    3,020    (9,462)      62 (6,380)
the year

Dividends paid          -       -        -          -   (460)   (460)

Purchase of own         -       -  (2,839)          -       - (2,839)
shares

Closing equity      3,777  10,997   15,067    (1,923)   (300)  27,618





2007
                     Share   Share Realised Unrealised Revenue  Total
                   capital premium  capital    capital reserve
                           account  reserve    reserve
                     £,000   £,000    £,000      £,000   £,000  £,000


Opening equity       3,777  10,997   12,228      9,689     319 37,010

Profit/(loss) for        -       -    2,658    (2,150)     225    733
the year

Dividends paid           -       -        -          -   (446)  (446)

Closing equity       3,777  10,997   14,886      7,539      98 37,297



CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 29 FEBRUARY 2008



                                                      2008       2007
                                                     £'000      £'000

NET CASH FLOW FROM OPERATING ACTIVITIES
Cash inflow from investment income and interest      1,053        921
Cash inflow/(outflow) from held for trading          (353)      1,053
current asset investments
Cash outflow from management expenses                (621)      (489)


Payments to acquire non-current asset investments  (6,027)   (14,777)
Receipts on disposal of non-current asset           16,536     14,830
investments

Tax recovered/(paid)                                    18       (11)

NET CASH FLOW FROM OPERATING ACTIVITIES             10,606      1,527



CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of own shares                             (2,839)          -
Dividends paid                                       (460)      (446)
(Decrease)/increase in bank borrowings             (6,673)      (526)
Interest paid                                        (472)      (461)
NET CASH FLOW FROM FINANCING ACTIVITIES           (10,444)    (1,433)


INCREASE/(DECREASE) IN CASH                            162         94



Cash and cash equivalents at beginning of year         337         98

Increase/(decrease) in cash                            162         94
Currency translation difference                      (177)        145

Cash and cash equivalents at end of year               322        337




COMPANY BALANCE SHEET
AT 29 FEBRUARY 2008


                                                    2008     2007
                                                   £'000    £'000

NON-CURRENT ASSETS
Investments at fair value through profit or loss  28,527   44,864
Investment in subsidiary                               1        1
                                                  28,528   44,865

CURRENT ASSETS
Sales for future settlement                          294        0
Other receivables                                    101       40
Taxation recoverable                                  14       41
Cash and cash equivalents                            321      336
                                                     730      417

TOTAL ASSETS                                      29,258   45,282

CURRENT LIABILITIES:
Purchases for future settlement                      447      120
Bank overdraft                                     1,067    7,740
Other payables                                       126      125
                                                   1,640    7,985


TOTAL ASSETS LESS CURRENT LIABILITIES             27,618   37,297


EQUITY
Called up share capital                            3,777    3,777
Share premium account                             10,997   10,997
Realised capital reserves                         15,067   14,886
Unrealised capital reserve                       (2,853)    6,957
Revenue reserve                                      630      680

TOTAL EQUITY                                      27,618   37,297



COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2008



2008
                    Share   Share Realised Unrealised Revenue   Total
                  capital premium  capital    capital reserve
                          account  reserve    reserve
                    £,000   £,000    £,000      £,000   £,000   £,000

Opening equity      3,777  10,997   14,886      6,957     680  37,297

Profit/(loss) for       -       -    3,020    (9,810)     410 (6,380)
the year

Dividends paid          -       -        -          -   (460)   (460)

Purchase of own         -       -  (2,839)          -       - (2,839)
shares

Closing equity      3,777  10,997   15,067    (2,853)     630  27,618





2007
                     Share   Share Realised Unrealised Revenue  Total
                   capital premium  capital    capital reserve
                           account  reserve    reserve
                     £,000   £,000


Opening equity       3,777  10,997   12,228      9,158     850 37,010

Profit/(loss) for        -       -    2,658    (2,201)     276    733
the year

Dividends paid           -       -        -          -   (446)  (446)

Closing equity       3,777  10,997   14,886      6,957     680 37,297



COMPANY CASH FLOW STATEMENT
FOR THE YEAR ENDED 29 FEBRUARY 2008



                                                      2008       2007
                                                     £'000      £'000

NET CASH INFLOW FROM OPERATING ACTIVITIES
Cash inflow from investment income and interest      1,047        914
Cash outflow from management expenses                (620)      (490)


Payments to acquire non-current asset investments  (6,027)   (14,777)
Receipts on disposal of non-current asset           16,536     14,830
investments

Tax recovered/(paid)                                    18       (11)

NET CASH INFLOW FROM OPERATING ACTIVITIES           10,954        466


CASH FLOWS FROM INVESTING ACTIVITIES
Decrease/(increase) in investment in subsidiary      (348)      1,070

CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of own shares                             (2,839)          -
Dividends paid                                       (460)      (446)
(Decrease)/increase in bank borrowings             (6,673)      (526)
Interest paid                                        (472)      (461)
NET CASH FLOW FROM FINANCING ACTIVITIES           (10,444)    (1,433)


INCREASE/(DECREASE) IN CASH                            162        103



Cash and cash equivalents at beginning of year         336         88

Increase/(decrease) in cash                            162        103
Currency translation difference                      (177)        145

Cash and cash equivalents at end of year               321        336


NOTES


1.   Status of this report
The above results for the year ended 28 February 2008 are unaudited.
This financial information does not constitute the Company and
Group's statutory accounts for the year ended 28 February 2008, which
will be finalised on the basis of the financial information in this
Announcement.

Statutory accounts for the year ended 28 February 2008 are to be
delivered to the Registrar of Companies following the Annual General
Meeting. They are being posted on the website
www.marsassetmanagement.co.uk.

The information for the year ended 28 February 2007 has been
extracted from the latest published audited financial statements.
The audited financial statements for the year ended 28 February 2007
have been filed with the Registrar of Companies.  The report of the
auditors on those accounts contained no qualification or statement
under section 237(2) or (3) of the Companies Act 1985.



2.  Basis of accounting
The financial statements of the Company and the Group have been
prepared in accordance with International Financial Reporting
Standards (IFRS), which comprise standards and interpretations
approved by the IASB and International Accounting Standards and
Standing Interpretations Committee interpretations approved by the
IASC that remain in effect, and to the extent that they have been
adopted by the European Union.

Under IFRS, the Statement of Recommended Practice (SORP) issued by
the Association of Investment Companies has no formal status, but the
Group has taken the guidance of the SORP into account to the extent
that is appropriate and compatible with IFRS.

The accounting policies are unchanged from those used in the last
annual financial statements except where otherwise stated.



3.  Income

                                                2008    2007
  Income from investments:                     £'000   £'000
  Franked dividends from listed investments      959     822
  Unfranked income from overseas dividends        93      57
  Income from listed fixed interest securities    34      29
                                               1,086     908



  Other income:
  Interest receivable    25    13
                         25    13

                      1,111   921


4.  Investment Management Fees and other Expenses


                                              2008                    2007
                                     Revenue Capital Total   Revenue Capital Total
                                       £'000   £'000 £'000     £'000   £'000 £'000
Investment management fees
                                         169     169   338       195     195   390
- monthly                                  -       -     -         -       -     -

- performance
                                         169     169   338       195     195   390
Administration fees                       60       -    60        65       -    65
Custodian's fees                          14       -    14        12       -    12
Registrar's fees                          11       -    11         8       -     8
Directors' fees                           76       -    76        67       -    67
Consultancy payment to broker             59       -    59         -       -     -
Auditors' fees - audit of the             18       -    18        18       -    18
Company
       and of the consolidated
financial
       statements
       Tax advice                          5       -     5         6       -     6
Miscellaneous expenses                    39       -    39        31       -    31
Total other expenses                     282       -   282       207       -   207



5.          Ordinary Dividends

                                                         2008   2007
                                                        £'000   £'000
Dividends reflected in the financial
statements:
Final dividend paid for the year 2007 at 3.10p (2006:
2.95p)                                                    460     446

Dividends not reflected in the financial statements:
Proposed final dividend for the year 2008 at 3.15p
(2007: 3.10p)                                             408     461




6.          Earnings per Share
Earnings per share are based on the loss of £6,380,123 (2007:
£733,015) attributable  to the weighted average of 14,697,174 (2007:
15,107,250) ordinary shares of 25p in issue during the year,
excluding shares held in Treasury.

Supplementary information is provided as follows: revenue earnings
per share are based on the revenue profit of £61,808 (2007:
£224,985); capital earnings per share are based on the net capital
losses of £6,441,931 (2007: £508,030), attributable to 14,697,174
(2007: 15,107,250) ordinary shares of 25p.



7.         Share capital

  At 29 February:                              2008         2007
  Authorised
       Ordinary shares of 25p     Number 40,000,000   40,000,000
                                  £'000      10,000       10,000
  Allotted, issued and fully paid
      Ordinary shares of 25p      Number 15,107,250   15,107,250
                                  £'000       3,777        3,777




During the year ended 29 February 2008 the Company purchased in the
market a total of 1,505,000 of its own shares, all of which were held
in Treasury.  The number of voting shares in issue at 29 February
2008 was 13,602,250.

Since 29 February 2008, the Company has purchased in the market a
further 650,000 of its own shares.  715,861 shares have been
cancelled.  As at the date of this report, the Company has 14,391,389
shares in issue, of which 1,439,139 are held in Treasury; the number
of voting shares in issue is 12,952,250.



8.         Subsidiary


The Company has an investment in AIT Trading Limited, a wholly owned
subsidiary registered in England and Wales, which comprised two
ordinary shares of £1 each.  AIT undertakes purchases of investments
for re-sale in the shorter term, with the objective of achieving a
trading profit.  The loss before tax of AIT for the year was
£347,612  (2007: loss £50,713).  The net deficit of AIT at the
Balance Sheet date was £930,185 (2007: net deficit £581,982).  No
dividend was paid from AIT to the Company (2007: £nil).

During the year the Company advanced interest-free short-term loans
to AIT to finance its trading operations.  At 29 February 2008 the
amount outstanding was £931,125 (2007: £583,174).




                          2007 Movement  2008
                         £'000    £'000 £'000

Loan to AIT                583      348   931
Provision for impairment (582)    (348) (930)
Net investment               1        -     1



9.         Related parties

Details of transactions with AIT Trading Limited are set out above.

Fees payable to the Manager are detailed in note 4 above.  Other
payables include accruals of a monthly management fee of £17,688
(2007: £33,046) and an administration fee of £3,464 (2007: £5,507).
No performance fee was accrued (2007: £Nil).  All figures include
VAT.




Company Secretary and Registered Office:
Cavendish Administration Limited
145-157 St John Street
London EC1V 4RU

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