Investment Update to June 07

Utilico Limited
11 September 2007


Date:                11 September 2007

Contact:             Charles Jillings
                     Utilico Limited

                     01372 271 486



                                Utilico Limited
                          Unaudited Investment Update
                                to 30 June 2007


Utilico Limited is a newly-incorporated Bermuda company which began trading on
20 June 2007 as a successor vehicle of Utilico Investment Trust plc ('UIT').
Utilico Limited's first reportable results will be the interims to 31 December
2007.

However, in the interest of providing shareholders with information on the
period from 30 June 2006, the last financial year end of UIT, to 30 June 2007,
the month end following the transfer of assets from UIT to Utilico Limited, we
have prepared a brief Investment Update as at 30 June 2007 which covers both UIT
and Utilico Limited and treats them as one and the same entity ('Utilico').

As this combined report covers two companies it does not constitute statutory
accounts, contains certain 'pro forma' information and has not been audited (or
reviewed under auditing standards).



FINANCIAL HIGHLIGHTS



•              Convertible unsecured loan stock converted into ordinary shares

•              £75.0m of new zero dividend preference shares issued*

•              Profit for the period of £117.6m

•              Undiluted net asset value per share increased by 57.5% to 350.29p

*Issued by Utilico Finance Limited, a wholly owned subsidiary of Utilico
Limited.




PERFORMANCE SUMMARY



                                                       30 June 2007             30 June 2006                 Change
Ordinary shares
Capital value
Net asset value per ordinary share (undiluted)               350.29p                 222.35p                  57.5%
Net asset value per ordinary share (diluted)                 312.06p                 187.68p                  66.3%
Share prices and indices
Ordinary share price                                         299.00p                 180.25p                  65.9%
Discount (based on diluted NAV per ordinary

share)                                                          4.2%                    4.0%
FTSE All-Share Index                                           3,404                   2,968                  14.7%
Dow Jones World Utilities Index (sterling

adjusted)                                                      125.6                   105.0                  19.6%
Returns and dividends
Revenue return per ordinary share (undiluted)                  1.84p                   0.89p                 106.7%
Capital return per ordinary share (undiluted)                178.01p                  35.50p                 401.4%
Total return per ordinary share (undiluted)                  179.85p                  36.39p                 394.2%
Dividend per ordinary share                                    0.80p                   0.40p                 100.0%
Zero dividend preference (ZDP) shares 1
2012 ZDP shares (7.00%)
Capital entitlement per ZDP share                            123.71p                 115.63p                   7.0%
ZDP share price                                              126.75p                 118.50p                   7.0%
2014 ZDP shares (7.25%)
Capital entitlement per ZDP share                            100.29p                     n/a                    n/a
ZDP share price                                              103.25p                     n/a                    n/a
2016 ZDP shares (7.25%)
Capital entitlement per ZDP share                            100.29p                     n/a                    n/a
ZDP share price                                              103.00p                     n/a                    n/a
Warrants
2008 warrant price                                           260.00p                  86.00p                 93.5%2
2012 warrant price                                            88.25p                     n/a                    n/a
Equity holders funds (£m)
Gross assets                                                   454.6                   270.1                  68.3%
Bank debt                                                       44.8                    55.0                (18.5)%
ZDP debt                                                       130.8                    51.8                 152.5%
CULS3                                                              -                    20.6                    n/a
Equity holders' funds                                          279.0                  142.74                  95.5%
Revenue account (£m)
Income                                                           8.4                     6.9                  21.7%
Costs (management and other expenses)5                           2.6                     2.2                  18.2%
Finance costs                                                    4.1                     3.6                  13.9%
Financial ratios of the Group
Revenue yield on average gross assets                           2.3%                    2.8%
Total expense ratio5 on average gross assets                    0.7%                    0.9%
Bank loans, CULS and ZDP shares gearing

on gross assets                                               38.6%3                   46.5%


1 Issued by Utilico Finance Limited, a wholly owned subsidiary of Utilico
Limited in June 2007. Previously issued by Utilico Investment Trust plc.
2 Adjusted for June 2007 corporate action.
3 CULS converted in June 2007 into ordinary shares.

4 Excluding CULS equity component.

5 Excluding performance fee.




chairman's statement



Since the launch of Utilico Investment Trust plc, the company's predecessor, in
August 2003 the initial ordinary shareholders have seen their undiluted NAV per
ordinary share increase from 99.47p to 350.29p. This increase, including
dividends, represents a compound annual growth of 39.2%.

Clearly we are faced with challenging market conditions. The resolution and
outcome of a range of issues will determine the market's direction.

I am delighted to be writing my inaugural Chairman's statement for Utilico
Limited. It is pleasing to be able to comment on the strong performance of
Utilico Investment Trust plc and its successor Utilico Limited. Over the twelve
months to 30 June 2007 the net assets of Utilico have risen £136.3m to £279.0m,
an outstanding gain of 95.5%. This includes the profit for the period of
£117.6m, nearly all from portfolio gains.

Since the launch of Utilico Investment Trust plc, the Company's predecessor, in
August 2003 the initial ordinary shareholders in Utilico have seen the undiluted
NAV per ordinary share increase from 99.47p to 350.29p. This increase, including
dividends, represents a compound annual return of 39.2%.

Utilico Limited is a newly-incorporated Bermuda company which began trading on
20 June 2007 as a successor vehicle of Utilico Investment Trust plc ('UIT').
Utilico Limited's first reportable results will be the interims to 31 December
2007. However, in the interest of providing shareholders with information on the
period from 30 June 2006, the last financial year end of UIT, to 30 June 2007,
the month end following the transfer of assets from UIT to Utilico Limited, we
have prepared a brief investment update as at 30 June 2007 which covers both UIT
and Utilico Limited and treats them as one and the same entity ('Utilico'). As
this combined report covers two companies it does not constitute statutory
accounts, contains certain 'pro forma' information and has not been audited (or
reviewed under auditing standards).

Utilico's three core investments Infratil, UEM and Ecofin have continued their
strong performance throughout the year. The combined investment in these three
positions rose from £130.7m to £231.0m, up 76.7%. These investments continue to
comprise diversified underlying portfolios. To present the underlying risk of
the gross portfolio more appropriately these three investments are analysed (in
preparing the top ten, sector analysis, geographical analysis and the split of
investments by category) on a 'look through' basis, thus showing the underlying
investments rather than the holding company.

Utilico successfully placed £75.0m of zero dividend preference ('ZDP') shares in
the market on 20 June 2007 effectively raising long term debt at 7.25% per
annum. Initially these funds were used to repay bank debt of £18.0m. In
addition, Utilico paid fees in relation to the migration of Utilico Investment
Trust and invested further funds into the market. At 30 June 2007 Utilico held
cash balances of £46.0m. Bank debt stood at £44.8m.

As forecasted in the June 2006 annual report and accounts and again in the
December 2006 interims, the holders of convertible unsecured loan stock elected
to convert their holdings into ordinary shares during June 2007. As a result of
this and the performance of the underlying portfolio, shareholders' funds
increased from £142.7m to £279.0m, a rise of 95.5%.

The consolidated revenue yield has remained low at 2.3%. It remains the case
that a number of our investments offer capital growth with either little or no
yield. This includes our investment in Ecofin and ERG. With running costs of
0.7% and after allowing for finance costs and tax, the consolidated revenue
undiluted pro forma EPS for the period was only 1.84p. In June 2007 Utilico paid
a dividend of 0.80p per share to the ordinary shareholders.

A strong feature of Utilico has been the establishment of a net long index put
options position which at 30 June 2007 provided protection of £134.0m against
the market. The manager's skilful execution of this strategy is commendable. The
manager has partially funded this position by selling short dated puts against
part of the position. At the year end there were no short dated puts
outstanding.

The manager has been concerned about our exposure to the New Zealand dollar. As
such it has hedged out NZ$130.4m, being the look through underlying exposure to
the New Zealand dollar for Utilico's Infratil holding.

As a past non-executive director of Utilico Emerging Markets Limited I had a
close working relationship with the management team. I look forward to working
with them on Utilico. I would like to take this opportunity to recognise and
thank Alan Wheatley and his board for their consistent and wise counsel to the
managers over the years. Alan Wheatley and Andrew Barker have both stepped down
from the Board and I would like to thank them for their contribution to Utilico.
I am pleased that both Eric Stobart and Roger Urwin will continue as directors
and I look forward to working with Susan Hansen and Warren McLeland. I would
also like to thank Duncan Saville, Charles Jillings and their team for their
consistent drive and energy in moving Utilico forward.

Clearly we are faced with challenging market conditions. The resolution and
outcome on a range of issues will determine the market's direction. These issues
include inflation, exchange rates, interest rates, credit pricing and
availability and commodity prices. Within Utilico's portfolio we continue to
look for our investee companies to deliver long term growth. As such we expect
further progress within Utilico's focused portfolio.



J. Michael Collier

September 2007




Investment report





Utilico's objective of providing long-term capital appreciation was achieved
once again with undiluted NAV per ordinary share increasing by 57.5% to 350.29p.

Looking forward the outlook in the short term is challenging. Our investments,
in the main, continue to make progress and we remain cautiously optimistic for
the period through to June 2008.

Utilico's objective of providing long term capital appreciation was achieved
once again with the undiluted NAV per ordinary share increasing by 57.5% to
350.29p. This represents another year of positive growth in asset value and
another year of out performance against equity markets. Since 14 August 2003
Utilico has achieved an annual average compound return of 39.2%. This is
substantially ahead of the FTSE All Share Index which achieved 13.4% over the
same period.

Portfolio

The portfolio turnover was more modest in the last twelve months when compared
to the prior two years. During the year Utilico realised £48.6m including £16.5m
from Cable & Wireless, £7.0m from Deutsche Post and £5.9m from Ecofin. Utilico
invested £79.9m including £7.9m in Renewable Energy Group, £6.1m in Vienna
Airport and £5.0m in ERG.

A key feature continues to be Utilico's strategic investments in Infratil, UEM
and Ecofin. Each of these continues to offer a different profile thus widening
Utilico's exposure.

The market value of Utilico's investment in Infratil nearly doubled from £60.4m
to £118.0m. The key driver within Infratil was the rise in value of TrustPower
whose share price increased by 18.3% during the year. Over the period, Infratil
increased its holding from 35% to 51% enabling TrustPower to be consolidated in
Infratil's accounts. In terms of Infratil's other main investments, Infratil
Airports Europe, consisting of Glasgow Prestwick Airport and Kent International
Airport in the UK, and Lubeck Airport in Germany, increased passenger numbers
and freight volumes, although earnings fell, reflecting the start-up nature of
some of the operations. Elsewhere, NZ Bus increased fare income despite a slight
decline in passenger numbers. Finally, Wellington Airport's passenger numbers
rose by a modest 1.4% but it managed to increase earnings at a faster rate on
ancillary revenues.

UEM's market value of investments including warrants, rose from £48.3m to
£74.3m, an increase of 53.9%. This increase mirrored increases across nearly all
of UEM's investments with UEM recording consistent month on month NAV growth.
UEM paid dividends of 2.7p up from 1.5p in the prior year.

UEM's shares continue to be well supported in the market. They ended the year at
156.5p up 47.3%.

UEM's top holding is Companhia de Concessoes Rodoviarias S.A. ('CCR') which
ranks 16th in Utilico's portfolio on a look through basis. UEM's portfolio
comprises 63 holdings with the top ten accounting for 50.0% of its portfolio.

Ecofin has continued its strong performance with its capital shares benefiting
from its leveraged structure. Over the year Ecofin's capital shares gained
112.0%. We continued to reduce our holding of Ecofin capital shares decreasing
our position by £5.9m in the year. Ecofin focuses principally on utilities in
Europe and North America. Its portfolio remains less concentrated than Utilico's
and includes more traditional large capitalisation utilities.

On a look through basis Ecofin's largest holding Airtricity ranks 33rd in
Utilico's portfolio. Ecofin has over 100 positions in its portfolio.

Zurich Airport's value has increased by 71.5% to £28.8m. Zurich has seen its
operational performance continue to improve with rising passenger numbers
combined with improving margins.

ERG shares ended the year at 13.5c, up from 9.4c last year. ERG has seen its
shares trade as high as 33.5c in the year. While ERG continues to report
progress, the significant nature of its larger turnkey contracts mean that its
ability to report a clear outlook is dependent on material events. During the
year Utilico has continued to support ERG and invested a further £5.0m by way of
secured loans. We continue to have faith in the company's longer term prospects.

 Jersey Electricity ('JEL') has again been frustrating rising only 11.4% to
£14.2m. The performance of JEL has been held back by their decision not to fully
pass through increases in the cost of purchased electricity. This harshly
imposed 'self regulation' does not follow usual regulatory practice whereby
electricity distribution companies can pass through increased external costs to
their customers.

Keytech has performed well in the period rising by 37.5% from BMD11.0 to BMD15.0
after Cable & Wireless made a bid for the company. Whilst this was later
withdrawn, as a result of dissatisfaction over the offered price, the share
price remained at the increased level which we still believe undervalues the
company.

The investment in Renewable Energy Generation ('REG') was increased
significantly during the year resulting in the investment rising from £3.5m to
£11.9m.

REG has been disappointing with its share price declining during the year from
117.5p to 113.0p. REG continues to make progress in building out its windfarm
assets. This process will take time but the company looks to have a bright
future having secured a substantial pipeline of future development
opportunities.

Utilico continued to invest in Flughafen Wien ('Vienna Airport'). The increase
in investment together with an increase in the share price of 22.4% to €73.1 has
seen Vienna Airport rise from number 14 to number 10 in the portfolio.
Geographically, Vienna Airport is well positioned to benefit from the continuing
expansion of air travel in Eastern Europe. Vienna Airport is seeking to position
itself as the hub for the Far and Middle East. Passenger numbers grew by 9.0% in
the year.

Over the twelve months there have been some movements in the geographic split of
investments. Australasia and North America have remained virtually the same at
31.5% and 9.4% respectively. The UK has reduced from 18.2% to 10.0%. This has
mainly arisen as a result of the sale of Cable & Wireless, increasing investment
outside the UK by Utilico and Ecofin and combined with a strong performance in
other markets.

Europe increased as a result of the investment in Vienna Airport and several
other European investments combined with increased values for Zurich Airport.
Asia and the Far East has risen due to increased investment by UEM and Latin
America has correspondingly reduced.

On a sectoral basis the portfolio has remained broadly stable. The significant
move being in electricity where the increased value of TrustPower (combined with
Infratil's increased holding) up from 10.6% to 14.9% of the portfolio together
with increased investments in Europe has seen the electricity sector as a whole
increase from 32.4% to 36.8%.

Debt

On a consolidated basis Utilico's bank debt stood at £44.8m at the year end,
down £10.2m on last year. This decrease reflects the repayment of Utilico's
NZ$30.0m facility in late June 2007. Utilico's £45.0m bank facility was fully
drawn. As at 30 June 2007 the £44.8m bank drawings on a consolidated basis were
£24.9m in Swiss francs, £14.9m in US dollars and £5.0m in Euros. The blended
interest rate on the bank debt was 4.1%. Utilico Limited benefits from interest
rate swap agreements on part of the US dollar and Euro loans which were entered
into by Utilico Investment Trust plc.

Financing charges were £8.5m for the full year, an increase on the prior year of
£7.1m. Overall the financing cost represented a cost of 5.0% (prior year 6.0%)
based on the average balances for the group's debt, CULS and ZDP shares.

The drawings have continued to act as a natural hedge to investments in Swiss
francs, US dollars and Euros. During the year we increased our forward exchange
contracts on the New Zealand dollar. At year end Utilico held NZ$130.4m forward
exchange contracts at an exchange rate of 2.61.

Utilico ended the year with consolidated cash balances of £46.0m arising from
funds raised at the issue of £75.0m ZDP shares.

Revenue income

The revenue income for the year increased by 21.7% to £8.4m. This reflected the
investment of non revenue realisations (Simon Group) into revenue generating
investments. The revenue yield fell to 2.3% as a result of the strong asset
performance.

Expenses

The advisory and administration fees and other expenses (excluding the
performance fee) were £2.6m for the year (prior year £2.2m). Based on average
consolidated gross assets less current liabilities (excluding loans) of £362.3m,
this represents a TER of 0.7% (prior year 0.9%). The cost of migration to
Bermuda was in line with expectations.

Derivatives

A key feature of Utilico over the past few years has been the continued emphasis
on market protection. We have implemented a program of hedges against both the
general equity market and the New Zealand dollar. We have consistently invested
in long dated put options against both the S&P Index and the FTSE Index. In
order to partially fund the cost of these we have sold a limited number of short
dated puts. In the rising markets for most of the year to June 2007 these short
dated puts have expired out of the money with no consequent liability to
Utilico. At 30 June Utilico held long dated S&P put options with strikes ranging
from of 1,225 to 1,525 with an underlying market exposure of US$202m together
with long dated FTSE put options with strikes of 6,225 to 6,425 with an
underlying market exposure of £33m. Together these offer market protection
amounting to £134.0m covering 32.4% of Utilico's gross portfolio. The market
value of these put positions as at 30 June 2007 is £7.9m. The cost of
establishing this position has been substantially offset by the short dated puts
sold during the year. At 30 June 2007 there were no short dated puts
outstanding.

Outlook

The year to June 2007 saw outstanding investment performance. The migration to
Bermuda removes a number of investment constraints. The conversion of the CULS
strengthens Utilico's balance sheet and reduces the finance costs. The new ZDP
shares partially re-gear the ordinary shares.

Looking forward, the outlook in the short term is challenging and markets have
seen increased volatility since the period end. Last year we stated that
exchange rates and interest rates will present challenges. To this we can add
inflation, oil prices, debt liquidity and global growth as important issues that
will test the resolve of the markets.

Our investments, in the main, continue to make progress and we remain cautiously
optimistic for the period through to June 2008.






SUMMARY OF CONSOLIDATED NET ASSETS


At 30 June 2006                                                                      £'000s                  £'000s
Non-current assets
Investments                                                                                                 413,598
Current assets
Other receivables                                                                     1,642
Derivatives financial instruments                                                    13,577
Cash and cash equivalents                                                            46,048
                                                                                     61,267
Current liabilities
Bank loans                                                                         (24,934)
Other payables                                                                     (17,556)
Derivatives financial instruments                                                   (2,715)
                                                                                   (45,205)
Net current assets                                                                                           16,062
Total assets less current liabilities                                                                       429,660
Non-current liabilities
Bank loans                                                                         (19,891)
Zero dividend preference shares                                                   (130,740)
                                                                                                          (150,631)
Net assets                                                                                                  279,029

Equity attributable to equity holders
Ordinary share capital                                                                                        7,966
Share premium account                                                                                       237,554
Warrant reserve                                                                                              35,118
Capital reserves                                                                                            (1,582)
Revenue reserve                                                                                                (27)
Total attributable to equity holders                                                                        279,029

Net asset value per ordinary share
Basic - pence                                                                                                350.29
Diluted - pence                                                                                              312.06





The Unaudited Investment Update will be posted to shareholders in the middle of
September 2007. Copies may be obtained during normal business hours from the
Company's registered office, Exchange House, Primrose Street, London EC2A 2NY.







By order of the Board
F&C Management Limited, Secretary
11 September 2007




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