Interim Results

Utilico Limited
20 February 2008

Date:              20 February 2008

Contact:           Charles Jillings
                   Utilico Limited
                   01372 271 486




                                Utilico Limited
                         Unaudited report and accounts
                       for the period to 31 December 2007


Utilico Limited ('Utilico') was incorporated on 17 January 2007 and began
trading on 20 June 2007. These interim results are for the period 20 June 2007
to 31 December 2007. An investment update was produced as at 30 June 2007 which
included figures from Utilico Limited's predecessor, Utilico Investment Trust
plc. The numbers from that update for 30 June 2007 as stated in this Report are
neither audited nor reviewed under auditing standards.





FINANCIAL HIGHLIGHTS



•              Undiluted NAV per ordinary share increased by 3.6% to 362.87p

•              Gross assets increased by  8.3% to £492.2m

•              Bank facility increased from £45.0m to £70.0m

•              Hedging gains amounted to 16.52p per share

•              Revenue earnings per share 3.09p (comparative prior period loss
               of 1.18p)

•              Dividend per share 2.50p










PERFORMANCE SUMMARY




                                                         31 Dec 2007         30 June 2007(1)                  Change
Ordinary shares
Capital value
Net asset value per ordinary share (undiluted)               362.87p                 350.29p                    3.6%
Net asset value per ordinary share (diluted)                 323.05p                 312.06p                    3.5%
Share prices and indices
Ordinary share price                                         288.50p                 299.00p                  (3.5)%
Discount (based on diluted NAV per ordinary

share)                                                         10.7%                    4.2%                     n/a
FTSE All-Share Index                                           3,286                   3,404                  (3.5)%
Dow Jones World Utilities Index (sterling

adjusted)                                                      138.7                   125.6                   10.4%
Zero dividend preference (ZDP) shares
2012 ZDP shares (7.00%)
Capital entitlement per ZDP share                            128.00p                 123.71p                    3.5%
ZDP share price                                              134.00p                 126.75p                    5.7%
2014 ZDP shares (7.25%)
Capital entitlement per ZDP share                            103.89p                 100.29p                    3.6%
ZDP share price                                              104.25p                 103.25p                    1.0%
2016 ZDP shares (7.25%)
Capital entitlement per ZDP share                            103.89p                 100.29p                    3.6%
ZDP share price                                              100.25p                 103.00p                  (2.7)%
Warrants
2008 warrant price                                           238.00p                 260.00p                  (8.5)%
2012 warrant price                                            95.00p                  88.25p                    7.6%
Equity holders funds (£m)
Gross assets                                                   492.2                   454.6                    8.3%
Bank debt                                                       67.2                    44.8                   50.0%
ZDP debt                                                       135.4                   130.8                    3.5%
Equity holders' funds                                          289.7                   279.0                    3.8%
Financial ratios of the Group (4)
Revenue yield on average gross assets                           2.4%                    2.3%                     n/a
Total expense ratio(5) on average gross

assets                                                          0.7%                    0.7%                     n/a
Bank loans and ZDP shares gearing

on gross assets                                                41.2%                   38.6%                     n/a
                                                                               Six months to           Six months to
                                                                                31 Dec 07(2)            31 Dec 06(3)
Returns and dividends
Revenue return per ordinary share (undiluted)                                          3.09p                 (1.18)p
Capital return per ordinary share (undiluted)                                          8.15p                 116.75p
Total return per ordinary share (undiluted)                                           11.24p                 115.75p
Dividend per ordinary share                                                            2.50p                       -
Revenue account (£m)
Income                                                                                   5.6                     2.5
Costs (management and other expenses)                                                    1.6                     1.2
Finance costs                                                                            1.4                     2.0


1 Utilico Limited ('Utilico') began trading on 20 June 2007, an investment
  update was produced for the year ended 30 June 2007 which included figures from
  Utilico's predecessor Utilico Investment Trust plc. As such these numbers are
  unaudited or reviewed under auditing standards.
2 Actual period under review is 20 June 2007 (start of trading for Utilico) to
  31 December 2007.
3 The six months to 31 December 2006 refer solely to Utilico's predecessor
  Utilico Investment Trust plc.
4 For comparative purposes the total expense and revenue figures have been
  annualised.
5 Total expense ratio excludes performance fee.




CHAIRMAN'S STATEMENT

I am pleased to report Utilico's NAV per ordinary share increased from 350.29p
as at 30 June 2007 to 362.87p in the period of six months to 31 December 2007,
despite turbulent market conditions. This represents a gain of 3.6% during the
period and represents an outperformance against the FTSE All-Share Index which
fell 3.5% during the period.

The total return per ordinary share of 11.24p arose from a stronger performance
on the revenue account and good gains on derivative investments. In the period
to 31 December 2007 the revenue return was 3.09p and the gains on derivative
investments were 16.52p.

The performance of Utilico's core holdings Infratil Limited ('Infratil'), Ecofin
Water and Power Opportunities plc ('Ecofin') and Utilico Emerging Markets
Limited ('UEM') was mixed.

Infratil's share price retreated by 7.3% to NZ$2.80 representing a loss of £6.3m
during the period due to a combination of a discounted rights issue and weaker
market conditions. The combination of share price weakness offset in part by
further investment saw the position reduce from £118.0m to £115.5m.

UEM's share price rose 14.1% during the period. Further, Utilico invested £17.5m
in UEM's successful £85.0m C Share issue. These two factors combined resulted in
Utilico's investment in UEM rising from £74.3m to £103.0m.

Ecofin's capital share price gained 8.5% in the period. Utilico continued to
sell into strength and reduced the holding by 5.7%. As a net result the
investment in Ecofin increased from £38.7m to £40.0m.

ERG Limited's ('ERG') fortunes reversed strongly as a result of the threatened
termination of the Sydney ticketing contract in November 2007. The shares
reduced from A$13.5c to 9.3c. The Sydney contract was unilaterally terminated by
The Government of New South Wales ('NSW Government') in January this year.
Utilico is surprised by this regressive step by the NSW Government, given the
very advanced stage of the contract. Recognizing the NSW Government's step, the
Board has decided to provide in full against its ordinary share position and has
written back accrued interest and fees thus reducing the value of its secured
loans to the principal amount invested as at 31 December 2007.

Utilico's revenue return profit for the period of six months to 31 December 2007
of £2.5m is significantly ahead of the loss of £0.8m recorded by Utilico
Investment Trust plc in the corresponding period to 31 December 2006. This
reflects both an increased level of investment and other income and a decrease
in finance costs. The earnings per share were 3.09p, a substantial gain against
the prior year negative earnings per share of (1.18p). The Directors have
resolved to declare an interim dividend of 2.50p per share.

The hedging strategy pursued by the investment managers of acquiring index put
options has resulted in gains in the period of £13.2m. These gains offset the
portfolio losses of (£1.3m) and contributed to a capital account profit of
£6.5m.

Ordinary shareholders funds have increased significantly since 31 December 2006,
rising from £219.2m to £289.7m by 31 December 2007, £20.8m of this being a
result of the conversion of the convertible unsecured loan stock ('CULS') issued
by Utilico Investment Trust plc. Against this strengthening background the bank
facility with The Royal Bank of Scotland was increased from £45.0m to £70.0m in
November 2007. As at 31 December 2007 the bank debt stood at £67.2m.

Given Utilico's (and its predecessors) track record, it is disappointing to see
the ordinary share price decline by 3.5% and the discount widen to 10.7%. In
part this reflects the reduced market appetite for risk and widening discount in
the investment trust sector in general.

The 2008 warrants final exercise date is 20 May 2008. These warrants are
exercisable at 64.2p per warrant and are deep in the money compared to the
current share price of 288.50p. Holders of these warrants should consider
exercising them, given the gains currently available. There are 12.2m warrants
outstanding which will result in £7.8m being received on their exercise. Warrant
holders are urged to seek professional advice to ensure they do not miss this
last exercise date.

The current year has seen a deepening of the issues faced by the market. As a
result most markets have seen volatility increase together with further market
declines. Since the end of the period under review Utilico has seen its NAV per
ordinary share decline to 311.08p as at 12 February 2008, a fall of 14.3%.

The financial losses being reported by the US financial institutions look set to
lead the US into a recession. This in turn has resulted in sharp downturn in the
outlook for world economies. While a number of Utilico's investments are less
correlated to levels of economic activity, the portfolio is not immune from this
repricing. Looking forward we expect volatility to remain high over the next six
months and do not anticipate markets to find a firm footing during this time.



J Michael Collier

February 2008







INVESTMENT REPORT

Utilico's performance in the six months to 31 December 2007 was mixed. Overall
the gain was 12.58p per ordinary share representing an uplift of 3.6% in the
half year to 31 December 2007.

During the six months Utilico's gross assets less current liabilities (excluding
loans) increased by 8.3% from £454.6m to £492.2m. This gain reflected in part a
total return on the income statement of £9.0m together with increased use of
bank facilities which rose from £44.8 to £67.2m. As at 31 December 2007
Utilico's equity shareholders were geared 1.4x by bank debt and ZDPS.

Portfolio

We have included the top ten holdings on a look through basis, splitting the
underlying portfolio's of Infratil, UEM and Ecofin into their component parts as
though directly owned by Utilico. While there has been no change in the
composition, there has been movement within the ten largest holdings. Renewable
Energy Generation Limited ('REG') and Flughafen Wien AG ('Vienna Airport') are
now the 3rd and 4th largest investments up from 8th and 10th, principally as a
result of further investment. All the other investments were displaced by the
rise of REG and Vienna Airport.

Infratil's share price retreated 7.3% to NZ$2.80. The weakness in part was a
result of the issue of a deeply discounted partly paid ordinary share combined
with weaker market conditions. Infratil issued 83.4m partly paid ordinary shares
at NZ$2.00 per share (NZ$1.00 paid on subscription and NZ$1.00 payable between
July and August 2008). Utilico took up its rights and invested £6.9m.
Trustpower, which is listed on the NZ Stock Exchange and is Infratil's largest
investment, accounting for over 50% of their portfolio, saw its share price
increase by 3.0% to NZ$ 8.65 per share. Trustpower's nine month results to
December 2007 were in line with the prior period, however the company looks set
to record increasing future profits resulting from its recent substantial
investments in renewable energy projects.

UEM's share price rose 14.1% during the period. UEM successfully raised a
further £85.0m by way of a C share issue in December 2007. Utilico invested
£17.4m in the issue. UEM's largest investment is International Container
Terminal Services Ltd ('ICT'). ICT is listed on the Philippines Stock Exchange
and operates the port of Manila together with ports throughout the world,
including Brazil, Poland, Madagascar, China and Japan.

Ecofin's capital share priced gained 8.5% in the period. Utilico continued to
sell into strength and reduced the holding by 5.7%. The net result was an
increase in the holding in Ecofin from £38.7m to £40.0m. Ecofin's portfolio
continued to perform well, with the capital share asset value increasing by
16.9% over the six months. This was partly a result of their largest investment,
Airtricity Holdings, an unlisted renewable energy generator, being sold
resulting in a valuation uplift for Ecofin.

ERG has continued to make progress on a number of fronts. The major contracts
including San Francisco, Stockholm, and Seattle have continued to move towards
delivery and completion. However, against this trend the unilateral termination
of the Sydney contract by the NSW Government has been a major disappointment.
While ERG has worked towards a constructive and successful resolution of the
issues, the NSW Government has taken unilateral action. The loss of the A$250.0m
contract in January 2008 is highly likely to result in frustration on both sides
and ultimately litigation. Sydney will not receive the ticketless system it
deserves and ERG will not be able to deliver the world class system it has
developed for Sydney. Utilico remains fully supportive of ERG and has advanced
funding to enable ERG to continue to deliver the portfolio of long term
contracts it has. However, faced with the increased level of uncertainty, the
Board of Utilico has provided fully against the ordinary share position in ERG
and has written back accrued interest and fees thus reducing the value of its
secured loans to ERG to the principal amount outstanding as at 31 December 2007.

Zurich Airport's share price declined by 7.6% to CHF460.0 over the six month
period to 31 December 2007. First half results were slightly weaker than
expected due to increased security costs but traffic growth exceeded management
expectations in the second half of the year with passenger numbers for the full
year coming in at 20.7m, an increase of 7.8% on 2006.

Renewable Energy Generation Limited continued to make progress in developing its
potential portfolio of onshore UK and Canadian wind farms. In addition, REG has
taken a stake in a business which uses waste cooking oils to generate
electricity. REG's share price increased by 2.0% in the period.

Vienna Airport's share price increased by 8.0% to EUR79.0. Traffic growth has
remained very strong with Vienna Airport finishing the year with 18.8m
passengers, an increase of 11.2% on 2006. This increase is double the 5.5%
average increase for European airports in 2007. The two main areas of traffic
growth are Eastern Europe and the

Middle-East, with Vienna Airport benefiting from its geographical advantage of
being the easternmost hub airport in Europe.

In December Jersey Electricity ('JEL') reported their annual results to
September 2007. These showed a sharp improvement against the previous year,
however profits in their electricity business are still below historic levels as
a result of the company delaying the pass through of increased electricity
purchasing costs onto their clients. JEL's other businesses such as retailing,
property, contracting, all performed well, reflecting both good management and a
healthy economy on the island.

Keytech reported pleasing interim results to September, with improved
profitability across all its business segments. Compared with a year earlier,
revenues grew by 5.6% whilst costs were trimmed, resulting in a 22.6% growth in
underlying net profit. Strong operational cashflows and lower capital
expenditure resulted in a 25.4% increase in cash balances despite increased
dividend distributions.

During the six months, Utilico invested £82.2m (excluding investments in index
options). Utilico invested £6.9m in Infratil, £17.4m in UEM, £4.7m in ERG, £4.7m
in REG and £5.2m in Vienna Airport. Disposals amounted to £43.7m and included
£2.1m in Ecofin.

Utilico's interests in renewable energy, including hydro power, continue to
increase. The further investment in REG and Infratil together with other
investments made in the six months take Utilico's exposure to £90.0m or 19.8% of
the portfolio.

The portfolio's concentration has reduced with the top ten accounting for 43.3%
versus 47.4% six months ago. The sector split and geographic split have remained
broadly unchanged during the six months.

Balance Sheet

Equity shareholders' funds rose to £289.7m. Utilico increased its bank
borrowings by £22.3m during the six months contributing to an increase in the
total debt including ZDP shares liability to £202.6m. The gross assets less
current liabilities (excluding loans) rose as a result of both increased bank
debt, but also performance to £492.2m. The resultant gearing is 41.2%. The bank
debt was drawn down entirely in US dollars at 31 December 2007.

Hedging

Utilico has continued to increase the absolute level of market protection by
investing in Index option positions. As at 31st December 2007, the total net
market protection was £169.0m, equivalent to one third of Utilico's gross
assets. Subsequent to 31 December 2007, and following further gains from the
market protection strategy Utilico is converting index long put options into
index put option spreads partly as a result of high, short term volatility and
partly to lock in hedging gains.

Utilico has extended the level of currency protection against weakness in the
New Zealand dollar and strength in the US dollar against sterling. As at 31
December 2007, Utilico had sold forward currency options to the value of
NZ$139.4m against sterling to neutralise currency movements over £51.1m of New
Zealand denominated assets, equivalent to 44.2% of the value of Infratil, net of
NZ dollar debt.

The weakness of the US dollar against sterling over most of the period was
beneficial given Utilico's US dollar denominated loans. The dollar rapidly
depreciated in early November, with the rate exceeding 2.10 for a period.
Against this background, Utilico bought currency options giving the option to
sell £27.5m and buy US$56.4m, a rate of 2.053, therefore offering currency
downside protection on around 42.0% of the loans outstanding at the period end.
Subsequently, the dollar rate has strengthened to below 2.00 and the options are
now well in the money.

Revenue Returns

The revenue returns have increased strongly over the prior period. This has
arisen in the main due to stronger revenue income and falling finance costs.
Revenue income has increased as a result of rising dividends together with
reduced holdings in investments which do not pay a dividend. The annualised
revenue yield on the average gross assets to 31 December 2007 was 2.4%, up on
year ending 30 June 2007 revenue yield of 2.3%. The finance costs have fallen
due to the conversion of the convertible unsecured loan stock into equity, in
prior periods their coupon of 3.75% was included in finance costs. The
management and administration fees and other expenses were £1.6m representing a
total expense ratio of 0.7%, in line with the previous period.

Capital Returns

The capital returns were modest in the six months. The investment portfolio
resulted in losses of £1.4m which were offset by gains on derivative instruments
and investment income of £15.1m, these were then reduced by finance costs
arising on the ZDPs of £5.0m. The net capital gain to ordinary shareholders was
£6.5m.

Outlook

The rising financial losses being reported by the US financial institutions now
looks set to lead the US into recession. Volatility has increased. Against this
background, economic activity will slow. While these factors are being priced
into the world economies, we are concerned that the defence of these economies
by lowering interest rates and increasing market liquidity will result in
further stresses to the world economy. In particular, rising inflation looks set
to test the resolve of central banks around the world.

Against the above background, the world markets have fallen since 31 December
2007; Utilico's NAV has since 31 December 2007 declined by 14.3% to 311.08p as
at 12 February 2008. Our investments, with some notable exceptions, continue to
make progress.




UNAUDITED CONSOLIDATED INCOME STATEMENT





                                                                                             Period to 31 December 2007

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

Gain and losses on investments                                                          -         (1,359)       (1,359)
Gains and losses on derivative instruments                                              -          13,171        13,171
Exchange gains and losses                                                              15         (2,351)       (2,336)
Investment and other income                                                         5,628           1,969         7,597
Total income                                                                        5,643          11,430        17,073
Management and administration fees                                                (1,244)             111       (1,133)
Other expenses                                                                      (371)            (20)         (391)
Profit before finance costs and taxation                                            4,028          11,521        15,549
Finance costs                                                                     (1,412)         (5,020)       (6,432)
Profit before taxation                                                              2,616           6,501         9,117
Taxation                                                                            (155)               -         (155)
Profit for the period                                                               2,461           6,501         8,962
Earnings per share (basic) - pence                                                   3.09            8.15         11.24
Earnings per share (diluted) - pence                                                 2.75            7.28         10.03



The total column of this statement represents the Groups Income Statement,
prepared in accordance with IFRS.

The supplementary revenue return and capital return are both prepared under
guidance published by the Association of Investment

Companies in the UK.

All items in the above statement derive from continuing operations.

All income is attributable to the equity holders of the Company. There are no
minority interests.






UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY




for the period to 31 December 2007           Ordinary      Share                    Non-  Retained earnings
                                                share    premium   warrant distributable   Capital    Revenue
                                              capital    account   reserve       reserve  Reserves    reserve     Total
                                               £'000s     £'000s    £'000s        £'000s    £'000s     £'000s    £'000s

Profit for the period                               -          -         -             -     6,501      2,461     8,962
Issue of ordinary share capital and

warrants                                        7,966    238,030    35,118             -         -          -   281,114
Issue cost of ordinary share capital                -      (545)         -             -         -          -     (545)
Conversion of warrants                             17        112     (424)           424         -          -       129
Balance at 31 December 2007                     7,983    237,597    34,694           424     6,501      2,461   289,660








UNAUDITED CONSOLIDATED BALANCE SHEET


                                                                                                       31 December 2007
                                                                                                                 £'000s
Non current assets
Investments                                                                                                     454,397
Current assets
Other receivables                                                                                                 4,708
Derivative financial instruments                                                                                 32,678
Cash and cash equivalents                                                                                        11,476
                                                                                                                 48,862
Current liabilities
Bank loans                                                                                                     (20,500)
Other payables                                                                                                  (2,259)
Derivative financial instruments                                                                                (8,753)
                                                                                                               (31,512)
Net current assets                                                                                               17,350
Total assets less current liabilities                                                                           471,747
Non current liabilities
Bank loans                                                                                                     (46,670)
Zero dividend preference shares                                                                               (135,417)
Net assets                                                                                                      289,660
Equity attributable to equity holders
Ordinary share capital                                                                                            7,983
Share premium account                                                                                           237,597
Warrant reserve                                                                                                  34,694
Non-distributable reserve                                                                                           424
Capital reserves                                                                                                  6,501
Revenue reserve                                                                                                   2,461
Total attributable to equity holders                                                                            289,660

Net asset value per ordinary share
Basic - pence                                                                                                    362.87
Diluted - pence                                                                                                  323.05






UNAUDITED CONSOLIDATED CASH FLOW


                                                                                             Period to 31 December 2007
                                                                                                                 £'000s
Cash flows from operating activities                                                                           (63,892)
Cash flows from investing activities                                                                                  -
Cash flows before financing activities                                                                         (63,892)
Finance activities
Equity dividends paid                                                                                                 -
Net proceeds from borrowings                                                                                     75,382
Proceeds from warrants exercised                                                                                    129
Cash flows on issue of ordinary share capital                                                                       206
Cash flows from financing activities                                                                             75,717
Net increase in cash and cash equivalents                                                                        11,825
Cash and cash equivalents at the beginning of the period                                                              -
Effect of movement in foreign exchange                                                                            (349)
Cash and cash equivalents at the end of the period                                                               11,476





NOTES



The Directors have declared an interim dividend in respect of the period ended
31 December 2007 of 2.50p per ordinary share payable on 14 March 2008 to
shareholders on the register at close of business on 29 February 2008.

The total cost of the dividend, which has not been accrued in the results for
the period ended 31 December 2007, is £1,996,000 based on 79,825,388 shares in
issue at the date of this report.



The Report & Accounts will be posted to shareholders towards the end of February
2008. Copies may be obtained during normal business hours from Exchange House,
Primrose Street, London EC2A 2NY.







By order of the Board

F&C Management Limited, Secretary

19 February 2008


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