Correction : Half-yearly Report

The Chairman's Statement incorrectly referred to the record date for the interim dividend as 3 June 2011. The correct record date is 10 June 2011. Majedie Investments PLC Half-Yearly Financial Report 31 March 2011 The Directors announce the unaudited half-yearly financial report for the six months to 31 March 2011 as follows:- Copies of the half yearly report can be obtained from the following website: www.majedie.co.uk Majedie Investments PLC is an investment trust with total portfolio assets under management of over Â£170 million as at 31 March 2011. Our Objective is to maximise total shareholder return over the long term whilst increasing dividends by more than the rate of inflation. Financial Highlights for the half year ended 31 March 2011 net assets per share increased by 1.4% to 228.4p Share price decreased by 6.0% to 180.0p Discount to net assets widened from 15.0% to 21.2% Revenue Return per share decreased by 80.0% to 2.6p Interim dividend unchanged at 4.2p Performance Net asset value total return of 4.1% Total shareholder return of -3.1% Investment Objective and Policy Statement Investment Objective The Company's objective is to maximise total shareholder return over the long term whilst increasing dividends by more than the rate of inflation. Investment Policy The Company invests principally in securities of publicly quoted companies worldwide, though it may invest in unquoted securities up to levels set periodically by the Board. This can include products managed by Javelin Capital, its investment manager. The overall approach is based on analysis of global economies and sector trends with a focus on companies and sectors judged likely to deliver strong growth over the long term. The number of investments held, together with the geographic and sector diversity of the portfolio, enable the Company to spread its risks with regard to liquidity, market volatility, currency movements and revenue streams. The assets of the Company are split into four major groups. These are the Core Portfolio, funds managed by Javelin Capital LLP, and the Company's investments in Majedie Asset Management (MAM) and Javelin Capital LLP. An analysis and description of these groups is contained in the Investment Managers' Report. The Company does not have one overall benchmark, rather each distinct group of assets is viewed independently. For the actively managed Core Portfolio the benchmark comprises 70% FTSE All- Share Index and 30% FTSE World ex UK Index (Sterling) on a total return basis. Any investments made into Javelin Capital products are measured against the relevant fund benchmark as contained in the fund's prospectus. It is important to note that in all cases investment decisions and portfolio construction are made on an independent basis. The Board however sets various specific portfolio limits for stocks and sectors in order to restrict risk levels. Although, exceptionally, derivative instruments may be employed, usually for hedging purposes and with specific prior approval of the Board, generally the Company is a long-only investor and would be unlikely to use such instruments. The Company will not invest in any holding that would, at the time of investment, represent more than 15% of the value of its gross assets. The Company uses gearing, currently via longer term debentures. The Articles of Association give the Board the ability to borrow up to 100% of adjusted capital and reserves. The Board also reviews the level of net gearing (borrowings less cash) on an ongoing basis and sets a range at its discretion as appropriate. The Company's current debenture borrowings are limited by covenant to 66 â…”%, and any additional indebtedness is not to exceed 20%, of adjusted capital and reserves. Chairman's Statement The global economy in the six months to 31 March 2011 continued the recovery from the period of the financial crisis but remained volatile. However, considering that global markets had to contend with the natural disaster and the tragic events in Japan, the political upheaval occurring across the Middle East and other significant events, such as the credit downgrade of the US, it is perhaps surprising that there wasn't a more negative reaction. During the six month period to 31 March 2011 the NAV and share price, both on a total return basis, returned 4.1% and -3.1% respectively. Further detailed analysis of the performance for the period is included in the Investment Manager's report below. Results The Group results for the six months to 31 March 2011 include Javelin Capital for the entire period and for the first time the consolidation of the investment made into the Javelin Capital Global Equity Strategies Fund (QIF) in accordance with IFRS. This requirement, due to the Company's controlling interest in the QIF, results in some large presentational and classificatory impacts but has no material effect on the results for the six month period. The Group's net revenue return before tax for the six months to 31 March 2011 was Â£1.4m compared to Â£6.8m for the prior year period. Group income for the period was Â£2.8m which is Â£4.8m lower than the prior year period primarily reflecting the fall in total income from Majedie Asset Management Limited (MAM). Total income from MAM was Â£1.2m compared to Â£5.9m in the prior year period which included a special dividend of Â£5.4m. Underlying dividend income for the period from MAM, in accordance with the new shareholders agreement, increased from Â£0.5m to Â£1.2m. Group income for the period was enhanced by improved dividend receipts from investee companies which offset the anticipated lower level of income from our Â£20m investment into the absolute return Javelin Capital Global Equity Strategies Fund (QIF). Finally in the Group accounts essentially all income from Javelin Capital for the six month period is derived from within the Group and is eliminated on consolidation. Total group costs were Â£2.2m for the period compared to Â£1.9m in the prior year period. This increase reflects the inclusion of Javelin Capital and QIF operating costs over the six months as compared to pre-launch costs in the prior period. The core Company costs continued to reduce to just under Â£1m for the six months to 31 March 2011 as compared to Â£1.1m for the prior period. Cost control remains a key focus of the Board. The Board has decided that the interim dividend is to be maintained at 4.2 pence per share which is consistent with previous years. The interim dividend will be paid on 29 June 2011 to shareholders on the register on 10 June 2011. The investment in MAM is held at fair value in both the Company and Group accounts and its valuation is reviewed by the Board regularly. MAM continues to perform well and the Board have determined that our holding will be maintained at its carrying value of Â£30m as at 31 March 2011. In contrast the investment in Javelin Capital is consolidated in the Group accounts at net asset value as required under IFRS but is held in the Company accounts as an investment at cost in accordance with our policy for unquoted investments. The Board has reviewed the valuation of Javelin Capital and notwithstanding the slower than anticipated AUM growth so far and related losses to date the Board has determined that as at 31 March 2011 the valuation of Javelin Capital will be kept at Â£4.5m in the Company accounts. Investment Portfolio As I indicated in my statement on 24 November 2010 that accompanied the full year report and accounts to 30 September 2010, the Company's assets are managed in four distinct groups. I also pointed out that following the appointment of Javelin Capital LLP as the Company's investment manager we would provide a separate Investment Manager's Report and we have continued with this format for the Interim Report and this can be found below. Javelin Capital and Board Composition Since the launch of Javelin Capital in September 2010 its first flagship fund, the Javelin Capital Global Equities Strategies Fund (QIF), has performed in line with industry peers on a risk adjusted basis and has outperformed the return on cash and 10 year treasury notes. Its inclusion within the broader Company portfolio has already brought diversification and risk reduction benefits. Although the QIF has attracted interest from potential investors its current assets of US$31.3m are nearly wholly comprised of the seed investment by the Company, and it is clear that in the current environment it will be necessary to establish a longer term track record to attract external assets under management. Javelin Capital will therefore take longer than originally anticipated to reach profitability. In view of investor feedback, Javelin Capital intends to launch a second, UCITS-compliant, fund, the Javelin Capital Emerging Markets Alpha Fund in July 2011, which the Company intends to seed with a Â£15m investment. As announced on 21 April 2011 the Board proposes to make further equity investments of up to, in aggregate, Â£3.5m in Javelin Capital to provide additional regulatory and working capital and to secure its long term funding until it reaches profitability. At the same time, the limited liability partnership agreement relating to Javelin Capital will be revised as a consequence of the capital contribution. This augments the initial equity of Â£4.5m invested in September 2010. At the time of the AGM the Board expressed the view that further investment may be required in Javelin Capital as the process of attracting external assets under management was taking longer than anticipated in the business plan. In providing the additional equity capital the Company and Javelin Capital have decided to reduce the existing level of overheads in the business. Gerry Aherne, who led the formation and launch of Javelin Capital and has served on the Board since May 2006, has decided to resign as a partner (including his role as managing member) of Javelin Capital and as a Director of the Company, each with effect from 21 April 2011. Victor Pina has been appointed as managing member of Javelin Capital and will continue as CIO of Javelin Alternative Strategies along with his team. The assets of the Company will continue to be managed by Nick Rundle, who as a partner of Javelin Capital reports to the Board, to ensure that the overall regulatory conditions are met for an investment trust and that the investments are in accordance with the stated objectives of the Company. As Javelin Capital is a related party of the Company, the further equity injection requires the approval of shareholders. The Board believes that the further investment in Javelin Capital and the investment in the Emerging Markets Alpha fund will require a modification to the Company's investment policy and objective. The modification to the investment objective is to reflect the difficulty of trying to increase dividends by more than the rate of inflation in the short term given the current high levels of inflation. The Board expects that a significant proportion of the current year's dividends will be funded from the Company's revenue reserves rather than current year income. It is highly unlikely that the Company will be able to increase dividends in the short term by more than current rates of inflation and the Company's ability to do this will be increasingly challenged if the current inflationary and investment return environments exist. The Board wishes to keep the objective to increase dividends by more than the rate of inflation as a long term investment objective. Although the Company does not propose to make any further investments in Majedie Asset Management Limited or Javelin Capital (other than as above), the Company may invest in future funds launched by Javelin Capital including the intended Â£15m investment in the Emerging Markets Alpha fund. Accordingly the Board is also proposing that the investment policy will be changed to permit these investments. Under the listing rules, the Company is required to seek shareholder approval for any material change to its investment objective and policy. A circular will be posted to shareholders as soon as practicable giving further details and convening the necessary EGM. The Board remains committed to the long term future and success of Javelin Capital. Review of Investment Trust Tax Rules In my statement of 24 November 2010 I stated that I would report on developments in respect of the review of the Investment Trust Tax rules. The proposals included two aspects that, if implemented would have had a detrimental effect on your Company, which were in respect of close company and income retention rules. Following consultation, the Government announced on 16 December 2010 that these specific proposals would no longer be adopted although changes would be made in respect of close company rules which would not impact existing investment trusts. It is important to note, as well, that the proposals also included various amendments which seek to incorporate modern investment practices and allow a wider range of investment strategies for investment trust companies. These changes include: â— a new spread of risk test (replacing mechanistic portfolio holding limits); â— certainty on transactions treated as investment (through a new "white list" which will allow increased use of derivatives); â— an advance approval process for investment trust status (rather than the annual retrospective method currently used); and â— reform of the income requirements to allow income receipts from a wider range of sources. The Government has announced that draft legislation will be completed in April and the changes will be included in the Finance Bill 2011. It is anticipated that this Bill will be passed by the autumn and the changes expected to come into force in either late 2011 or early in the new year. This represents a good outcome for your Company and I will continue to keep you informed of developments in the future. Outlook The global equity market and economy has continued to recover and valuations do not appear too stretched at this juncture. This is impressive given the numerous geo-political shocks that have occurred. There are tentative signs that a greater level of stability is emerging although we still regard the immediate future with some caution. In this regard the investment in the QIF and proposed investment in the UCITS fund should provide additional security given their absolute return characteristics which will be valuable should there be a period of further volatility. This has an additional attraction given the long term gearing within the Company. Andrew J Adcock Chairman 27 May 2011 Investment Manager's Report Market Background & Outlook The global economy has continued to tread a cautious path towards stability. The worst of the recession is almost certainly behind us, but hurdles continue to emerge on a regular basis. Most major countries are expected to deliver GDP growth in the near term, although the outlook for emerging markets, particularly China and India is considerably better than developed markets. Equity markets began the period quietly, before rising by 8-12% between December and February. March was a particularly interesting month. The majority of markets ultimately ended the month virtually unchanged, despite the natural disaster in Japan, geo-political issues in the Middle East, an escalation of European debt problems and the tangible emergence of global inflationary pressures. Many companies have emerged from the recession in healthy financial positions, having reduced their indebtedness and reassessed their cost bases. The strength of corporate balance sheets is starting to show through in higher levels of capital spending, M&A activity, share buy backs and increased dividend payouts. The finances of Western governments and consumers are, however, less robust. Governments are addressing deep rooted budget imbalances by increasing tax rates and reducing spending in real or absolute terms. This is negatively affecting consumers, who are already feeling the pressure of inflation on disposable incomes. Central banks face the unenviable task of attempting to head off inflation whilst being aware that increased interest rates may have a detrimental impact on growth prospects. Even after the strong recovery over the past two years, equity markets remain, on a number of valuation criteria, relatively inexpensive when considered against historic trends and the returns available from other asset classes. Over long periods, share prices are driven by the fundamentals of financial strength and earnings opportunity. However, the short term is determined by investor risk appetite, as demonstrated by the significant and sudden shifts in share prices that continue to be experienced. This volatility is likely to remain evident for some time as the global economic recovery continues to be unpredictable. Investment Report The Company's assets are managed in four distinct groups; the Core Portfolio (which includes a small Non-Core Realisation Portfolio), Javelin Global Equity Strategies Fund and the Company's investments in Majedie Asset Management and Javelin Capital LLP. The Board believes this provides the correct asset allocation to achieve the Investment Objective of maximising shareholder return in the long term whilst increasing dividends by more than the rate of inflation. The Development of Net Asset Value section below shows the impact that each investment group has made on the Net Assets Performance during the period. Core Portfolio The Core Portfolio comprises holdings in large-cap UK and international stocks and a small number of carefully selected mid-cap companies. The Portfolio is managed under an equity income investment mandate, with a long term composite benchmark of 70% FTSE All-Share, 30% FTSE World (ex-UK) on a total-return basis. As at 31 March 2011, the value of the Core Portfolio, including cash available for investment, was Â£95.6m, representing 63% of the Company's Total Investments. During the period the Core Portfolio Total Return was +8.0% which is comparable to the performance of dedicated UK and global equity income funds. Investment performance was 1.7% behind that of the benchmark, which is understandable as the equity income asset class has trailed general indices, with investors continuing to prefer higher risk growth stocks over mature dividend paying companies. Investments are typically in well financed, high quality companies with a proven track record of delivering profit and dividend growth. There is a particular bias towards stocks that we believe are better placed to benefit from their involvement in the faster growing areas of the global economy, especially those exposed directly or indirectly to emerging economies. As such, the portfolio retains considerable exposure to engineering companies such as Alstom, Illinois Tool Works, IMI and Charter and, unusually for income funds, mining companies including Antofagasta, BHP Billiton and Rio Tinto. Significant investments have also been made in telecommunication companies and major oil producers due to the attraction of their stable cash generation and high dividend payments. The portfolio remains under-exposed to developed market consumers and governments as these areas are likely to remain tough for the foreseeable future as fiscal entrenchment takes effect. Exposure to financials is consistent with market weightings but represents a preference for life insurers over banks, where the effect of the financial crisis may not yet be fully transparent. We also manage a small non-core realisation portfolio, consisting of early stage investments that were initiated between 2005 and 2008. The objective of this portfolio is to maximise the value and speed of capital return by seeking to exit these positions, although by nature the positions are illiquid. Further progress has been made through realisations during the period and since the period end. As at 31 March 2011 the value of the non-core realisation portfolio was Â£5.8m, including Â£0.4m of cash. This represents less than 4% of the Company's Total Investments and will reduce over time as further liquidations are achieved. Javelin Global Equity Strategies Fund In late September 2010 a $31.1m seed capital investment was made into the first flagship product to be launched by the Javelin Capital LLP. The fund takes long and short positions in global equities, including emerging markets, and has been designed to target lower volatility and reduced risk than a typical absolute return fund. Since inception the fund has delivered a positive investment performance of 1%, although this has been more than offset by sterling strength. As at 31 March 2011, the value of the JGESF holding was $31.4m (Â£19.6m) representing 13% of the Company's Total Investments. Majedie Asset Management Majedie Asset Management was launched in 2002 using finance provided by the Company, which retains a 30% equity interest. It now manages approximately Â£6billion, for over 90 institutional clients. The business continues to perform strongly, remaining extremely well financed and profitable. In December 2010 an institutional global equity business was launched, to complement existing UK long-only and UK long-short offerings. During the period we received almost Â£1.2m in final dividend for its year ended 30 September 2010. The Board has decided to retain the valuation of our holding at Â£30m, representing almost 20% of the Company's Total Assets. Development of Net Asset Value In aggregate, the NAV has increased by Â£1.6m having generated an investment return of Â£8.5m, incurred total expenses of Â£3.6m and distributed Â£3.3m in dividends. The Core Portfolio contributed Â£7.9m through a combination of dividend income and capital appreciation, a Â£1.2m dividend was received from Majedie Asset Management, Non-Core Realisation Portfolio made limited impact whilst the Javelin Capital Global Equity Strategies Fund (JCGESF) lost Â£0.6m due to the translation effect of adverse currency movements. Total expenses during the period were Â£3.6m of which Administration Costs were Â£2.2m, which includes Javelin Capital operating expenses, and Finance Costs were Â£1.4m. A final dividend of Â£3.3m (6.3p per share) was paid in January 2011. Nick Rundle Investment Director Javelin Capital LLP 27 May 2011 Portfolio Information at 31 March 2011 Fund Analysis Market Value % of Â£000 Fund Oil & Gas 15,695 10.3 Basic Materials 9,831 6.4 Industrials 12,630 8.3 Consumer Goods 7,738 5.1 Health Care 7,033 4.6 Consumer Services 10,024 6.6 Telecommunications 8,175 5.4 Utilities 3,691 2.4 Financials 19,023 12.5 Technology 4,671 3.1 Unlisted (note 8) 34,661 22.8 Total Investments at Fair Value 133,172 87.5 Cash 18,949 12.5 152,121 100.0 United Kingdom 99,663 65.5 United States 15,284 10.0 Continental Europe 8,277 5.4 Rest of the World 9,948 6.6 Total Investments at Fair Value 133,172 87.5 Cash 18,949 12.5 152,121 100.0 The portfolio information below is shown on a 'net' basis and comprises the investments at fair value of Â£133,172,000 (including MAM at Â£30,000,000) and cash (as adjusted for amounts due to/from brokers for settlement) of Â£18,949,000. Twenty Largest UK Investments at 31 March 2011 Company Market % of Company Market % of Value Fund Value Fund Â£000 Â£000 Majedie Asset Management 30,000 19.7 Barclays 1,804 1.2 Royal Dutch Shell `B' 6,102 4.0 Unilever 1,710 1.1 HSBC 5,609 3.7 Antofagasta 1,701 1.1 Vodafone 4,104 2.7 Legal & General 1,670 1.1 BP 4,086 2.7 BG Group 1,629 1.1 GlaxoSmithKline 3,806 2.5 Charter 1,454 1.0 International Rio Tinto 3,284 2.2 Imperial Tobacco 1,253 0.8 BHP Billiton 3,198 2.1 British Land 1,243 0.8 Vostok Energy 2,857 1.9 Babcock 1,242 0.8 International Aviva 1,839 1.2 Inchcape 1,212 0.8 Ten Largest Overseas Investments at 31 March 2011 Company Market % of Company Market % of Value Fund Value Fund Â£000 Â£000 Schlumberger (USA) 1,280 0.8 Wells Fargo (USA) 989 0.7 Alstom (France) 1,108 0.7 AT&T (USA) 955 0.6 Sanofi-Aventis 1,040 0.7 ENI (Italy) 951 0.6 (France) Toyota (Japan) 1,031 0.7 JP Morgan Chase 935 0.6 (USA) Illinois Tools (USA) 1,005 0.7 Coca Cola (USA) 931 0.6 Interim Management Report The important events that have occurred during the period under review, the key factors influencing the financial statements and the principal uncertainties for the remaining six months of the financial year are set out in the Chairman's Statement and Investment Manager's Report above. The principal risks facing the Company are substantially unchanged since the date of the Annual Report for the year ended 30 September 2010 and continue to be as set out in that report. Risks faced by the Company include, but are not limited to, market risk, discount volatility, regulatory risk, financial risk, risks associated with banking and hedging and non-compliance with Section 1158 of the Corporation Tax 2010. Responsibility Statement of the Directors in respect of the Half-Yearly Financial Report In accordance with the Disclosure and Transparency Rules 4.2.7R and 4.2.8R, we confirm that to the best of our knowledge: (a) The condensed set of financial statements has been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the European Union, as required by the Disclosure and Transparency Rule 4.2.4R, and gives a true and fair view of the assets, liabilities and financial position of the Company; (b) The Chairman's Statement and Investment Manager's Report includes a fair review of the information required to be disclosed under the Disclosure and Transparency Rule 4.2.7R, interim management report. This includes (i) an indication of important events that have occurred during the first six months of the financial year, and their impact on the condensed set of financial statements presented in the Half-Yearly Financial Report and (ii) a description of the principal risks and uncertainties for the remaining six months of the financial year; and (c) There were no changes in the transactions or arrangements with related parties as described in the Group's annual report for the year ended 30 September 2010 that would have had a material effect on the financial position or performance of the Group in the first six months of the current financial year. Andrew J Adcock Chairman For and on behalf of the Board 27 May 2011 Independent Review Report to Majedie Investments PLC Introduction We have been engaged by the Company to review the condensed set of financial statements in the Half-Yearly Financial Report for the six months ended 31 March 2011 which comprises the Condensed Consolidated Statement of Comprehensive Income, Condensed Consolidated Statement of Changes in Equity, Condensed Consolidated Balance Sheet, Condensed Consolidated Cash Flow Statement and related notes 1 to 14. We have read the other information contained in the Half-Yearly Financial Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. This report is made solely to the Company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed. Directors' Responsibilities The Half-Yearly Financial Report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Half-Yearly Financial Report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority. As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this Half-Yearly Financial Report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union. Our Responsibility Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the Half-Yearly Financial Report based on our review. Scope of Review We conducted our review in accordance with International Standard on Review Engagements 2410 (UK and Ireland), "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the Half-Yearly Financial Report for the six months ended 31 March 2011 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority. Ernst & Young LLP London 27 May 2011 Condensed Consolidated Income Statement for the half year ended 31 March 2011 Half year ended Half year ended Year ended 31 March 2011 31 March 2010 30 September 2010 Note Revenue Capital Total Revenue Capital Total Revenue Capital Total return return Â£000 return return Â£000 return return Â£000 Â£000 Â£000 Â£000 Â£000 Â£000 Â£000 Investments Gains/(losses) 6,470 6,470 6,218 6,218 (2,361) (2,361) on investments at fair value through profit or loss Net investment 6,470 6,470 6,218 6,218 (2,361) (2,361) result Income Income from 2 2,745 2,745 7,584 7,584 10,011 10,011 investments Other income 2 25 25 48 48 82 82 Total income 2,770 2,770 7,632 7,632 10,093 10,093 Expenses Administration (972) (1,206) (2,178) (478) (1,434) (1,912) (3,105) (2,017) (5,122) expenses Return/ 1,798 5,264 7,062 7,154 4,784 11,938 6,988 (4,378) 2,610 (deficit) before finance costs and taxation Finance costs (362) (1,086) (1,448) (350) (1,051) (1,401) (701) (2,101) (2,802) Net return/ 1,436 4,178 5,614 6,804 3,733 10,537 6,287 (6,479) (192) (deficit) before taxation Taxation 3 (73) (73) (50) (50) (131) (131) Net return/ 1,363 4,178 5,541 6,754 3,733 10,487 6,156 (6,479) (323) (deficit) after taxation for the period Other (613) (613) comprehensive income - exchange differences on translation of foreign operations Total 1,363 3,565 4,928 6,754 3,733 10,487 6,156 (6,479) (323) comprehensive income for the period Net return/ (deficit) after taxation attributable to: Equity holders 1,364 4,176 5,540 6,754 3,733 10,487 6,156 (6,479) (323) of the Company Non-controlling (1) 2 1 interest Return/ pence pence pence pence pence pence pence pence pence (deficit) per ordinary share: Basic and 4 2.6 8.0 10.6 13.0 7.2 20.2 11.8 (12.4) (0.6) diluted The total column of this statement is the Consolidated Statement of Comprehensive Income of the Group, prepared in accordance with International Financial Reporting Standards (IFRS). The supplementary revenue return and capital return columns are prepared under guidance published by the Association of Investment Companies. All items in the above statement relate to continuing operations. Condensed Consolidated Statement of Changes in Equity for the half year ended 31 March 2011 Notes Share Share Capital Share Capital Revenue Own Currency Non- Total capital premium redemption options reserve reserve shares translation Controlling Â£000 Â£000 Â£000 reserve reserve Â£000 Â£000 reserve reserve interest Â£000 Â£000 Â£000 Â£'000 Â£'000 Half year ended 5,253 785 56 (220) 86,945 26,042 (1,702) 117,159 31 March 2011 30 September 2010 Net return 4,176 1,364 1 5,541 after tax for the period Other (613) (613) comprehensive income Share options 5 30 30 expense Dividends 7 (3,277) (3,277) declared and paid in period Introduction of 5 86 91 non-controlling interest in the QIF Own shares (19) 19 (sold)/ purchased by Employee Incentive Trust (EIT) 31 March 2011 5,253 785 56 (209) 91,121 24,129 (1,683) (608) 87 118,931 Half year ended 31 March 2010 30 September 5,253 785 56 (284) 93,424 26,649 (1,702) 124,181 2009 Net return/ 3,733 6,754 10,487 (deficit) after tax for the period Share options 5 29 29 expense Dividends 7 (4,578) (4,578) declared and paid in period 31 March 2010 5,253 785 56 (255) 97,157 28,825 (1,702) 130,119 Year ended 30 September 2010 30 September 5,253 785 56 (284) 93,424 26,649 (1,702) 124,181 2009 Net return (6,479) 6,156 (323) after tax for the year Share options 5 64 64 expense Dividends 7 (6,763) (6,763) declared and paid in year 30 September 5,253 785 56 (220) 86,945 26,042 (1,702) 117,159 2010 See notes below. Condensed Consolidated Balance Sheet at 31 March 2011 Notes 31 March 31 March 30 September 2011 2010 2010 Â£000 Â£000 Â£000 Non-current assets Property and equipment 8 494 287 531 Investments at fair value 133,172 151,052 145,423 through profit or loss 133,666 151,339 145,954 Current assets Trade and other receivables 20,240 1,508 1,691 Cash and cash equivalents 19,857 12,218 5,538 40,097 13,726 7,229 Total assets 173,763 165,065 153,183 Current liabilities Trade and other payables (21,042) (1,175) (2,243) Total assets less current 152,721 163,890 150,940 liabilities Non-current liabilities Debentures (33,790) (33,771) (33,781) Total liabilities (54,832) (34,946) (36,024) Net assets 118,931 130,119 117,159 Represented by: Ordinary share capital 5,253 5,253 5,253 Share premium 785 785 785 Capital redemption reserve 56 56 56 Share options reserve (209) (255) (220) Capital reserve 91,121 97,157 86,945 Revenue reserve 24,129 28,825 26,042 Own shares reserve (1,683) (1,702) (1,702) Currency translation reserve (608) Equity Shareholders' Funds' 118,844 130,119 117,159 Non-controlling interest 87 Total equity 118,931 130,119 117,159 Net asset value per share pence pence pence Basic and fully diluted 10 228.4 250.1 225.2 See notes below. Condensed Consolidated Cash Flow Statement for the half year ended 31 March 2011 Notes Half year ended Half year ended Year ended 31 March 31 March 30 September 2011 2010 2010 Â£000 Â£000 Â£000 Net cash inflow from 11 19,032 5,897 3,091 operating activities Investing activities Purchases of tangible (85) (93) (420) assets Disposals of tangible 29 assets Net cash outflow from (85) (93) (391) investing activities Financing activities Interest paid (1,438) (1,392) (2,783) Dividends paid (3,277) (4,578) (6,763) Increase in 87 non-controlling interest Net cash outflow from (4,628) (5,970) (9,546) financing activities Increase/(decrease) in 12 14,319 (166) (6,846) cash and cash equivalents for period Cash and cash 5,538 12,384 12,384 equivalents at start of period Cash and cash 19,857 12,218 5,538 equivalents at end of period See notes below. Notes to the Condensed Consolidated Financial Statements as at 31 March 2011 1. Accounting Policies The Condensed Consolidated Financial Statements above comprise the unaudited results of the Company and subsidiaries for the six months to 31 March 2011 and are presented in pounds sterling, as this is the functional currency of the Group. The Condensed Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standard IAS 34 "Interim Financial Reporting". They do not include all financial information required for full annual financial statements. The Condensed Consolidated Financial Statements have been prepared using the accounting policies adopted in the audited financial statements for the year ended 30 September 2010. Certain presentational changes have been made which have no effect on the net assets of the Group. 2. Income Notes Half year ended Half year ended Year ended 31 March 31 March 2011 2010 30 September Â£'000 Â£'000 2010 Â£'000 Income from investments Franked investment 2,275 7,131 8,778 income* UK unfranked (14) 21 21 investment income Overseas dividends 464 404 1,156 Fixed interest and 20 28 56 convertible bonds 2,745 7,584 10,011 Other income Deposit interest 3 27 44 Sundry income 22 21 38 25 48 82 Total income 2,770 7,632 10,093 Total income comprises: Dividends 2,725 7,556 9,955 Fixed interest 20 28 56 Interest 3 27 44 Other income 22 21 38 2,770 7,632 10,093 Income from investments Listed UK 1,097 1,284 2,618 Listed overseas 464 404 1,156 Unlisted* 1,184 5,896 6,237 2,745 7,584 10,011 * Includes MAM special dividend income of Â£nil (31 March 2010 & 30 September 2010: Â£5,400,000). 3. Taxation The charge for the half year to 31 March 2011 is Â£ 73,000 (half year to 31 March 2010: Â£50,000; year ended 30 September 2010: Â£ 131,000). These amounts represent irrecoverable withholding tax paid on overseas investment income. The Company has an effective corporation tax rate of 0%. As investment gains are exempt from tax owing to the Company's status as an Investment Trust and there is expected to be an excess of management expenses over taxable income there is no charge for corporation tax. 4. Calculation of Returns per Ordinary Share Basic returns per ordinary share in each period are based on the return on ordinary activities after taxation attributable to equity shareholders. Basic return per ordinary share for the period is based on 52,022,541 (half year ended 31 March 2010: 52,022,510; year ended 30 September 2010: 52,022,510) shares, being the weighted average number of shares in issue after adjustment for the shares held by the Employee Incentive Trust. There is no dilution to the basic return per ordinary share since share options, if exercised, would be satisfied by shares already held by the Employee Incentive Trust. 5. Share-based payments The Group currently operates one share-based payment scheme being the 2006 Long Term Incentive Plan which in turn has two sections relating to TSR-based Awards and Matching Awards. The previous scheme, The Discretionary Share Option Scheme 2000, closed in the year ended 30 September 2010. With the introduction of Javelin Capital LLP and the resultant employee transfers from the Company no further awards will be made under the LTIP. Javelin Capital does not operate any share-based payment schemes. The number of outstanding options granted by the Company are summarised in the table below: 31 March 31 March 30 September 2011 2010 2010 Number of outstanding options LTIP: TSR-based Awards 307,389 291,268 291,268 LTIP: Matching Awards 13,097 17,812 17,812 320,486 309,080 309,080 During the half year ended 31 March 2011 the number of options outstanding under the LTIP TSR-based Awards showed a net increase of 16,121. This comprised an additional 16,121 options as a result of the 2010 4.2p interim dividend and 2010 6.3p final dividend which is in accordance with the LTIP rules. Additionally the number of options outstanding under LTIP Matching Awards showed a net decrease of 4,715. This reflects an exercise of 5,701 options on 31 March 2011 and an increase in options in respect of the 2010 4.2p interim dividend and 2010 6.3p final dividend in accordance with the LTIP rules. During the half year to 31 March 2011 the Group recognised a total expense for share-based payment transactions of Â£30,000 (half year ended 31 March 2010: Â£29,000; year ended 30 September 2010: Â£64,000). The total shareholding of Majedie Investments PLC Incentive Trust is 499,789 (31 March 2010: 505,490; 30 September 2010: 505,490) ordinary shares. The shares will be held by the trust until the relevant options are exercised or until they lapse. The cost of the shares is presented in the Condensed Consolidated Balance Sheet under the heading `Own shares reserve', as a deduction from shareholders' funds in accordance with IFRS 2: Share-based Payments. 6. Segment reporting As detailed in the Company's Annual Report for the year ended 30 September 2010, geographical segments are considered to be the Group's primary reporting segment and business segments the secondary reporting segment. The Group has two business segments: its activity as an investment trust, which is the business of the parent company, and the business of the subsidiary, Javelin Capital LLP, which provides management services within the United Kingdom only. Investing activities The Company's investment objective is to maximise shareholder return over the long term whilst increasing dividends by more than the rate of inflation. The Company operates as an investment trust company and its portfolio contains investments in companies listed in a number of countries. Geographical information about the portfolio is provided above. Investment management services To complement this investment objective and create income and capital for the Group, Javelin Capital LLP has been launched to market a range of funds to third party investors and provide investment management and advisory services. Half year ended Half year ended Year ended 31 March 31 March 30 September 2011 2010 2010 Investing Investment Investing Investment Investing Investment activities management activities management activities management Â£'000 and Â£'000 and Â£'000 and advisory advisory advisory services services services Â£'000 Â£'000 Â£'000 Revenue from 2,769* 1 7,632* 10,091* 2 external customers Carrying amount 121,739 (2,895) 130,119 119,471 (2,312) of assets * The investment and other income of the parent company and the Javelin Capital Strategies fund 7. Dividends In accordance with International Accounting Standard 10: Events After the Balance Sheet Date, dividends are not accounted for until paid. The following table summarises the amounts recognised as distributions to equity holders in the relevant period: Half year ended Half year ended Year ended 31 March 31 March 30 September 2011 2010 2010 Â£000 Â£000 Â£000 2010 Final dividend of 6.30p 3,277 paid on 26 January 2011 2010 Interim dividend of 2,185 4.20p paid on 30 June 2010 2009 Final dividend of 6.30p 3,277 3,277 paid on 27 January 2010 2010 Special dividend of 1,301 1,301 2.50p paid on 8 March 2010 3,277 4,578 6,763 The directors propose an interim dividend for 2011 of 4.2p per share, to be paid on 29 June 2011. 8. Investments All investments are designated upon initial recognition as held at fair value through profit or loss, and are measured at subsequent reporting dates at fair value, which is either the bid price or the last traded price, depending on the convention of the exchange on which the investment is quoted. Investments in unit trusts or open ended investment companies are valued at the closing price, the bid price or the single price as appropriate, released by the relevant investment manager. Unlisted investments are formally valued on a semi-annual basis by the Board of Directors taking into account relevant information as appropriate including market prices, latest dealings, accounting information, professional advice and the guidelines issued by the International Private Equity and Venture Capital Association. In between the formal valuations the Directors review these investments for any significant changes and incorporate such changes as they consider necessary. Unlisted investments disclosed in the Portfolio Information above total Â£34,661,000 of which Â£4,661,000 is invested in 23 companies and Â£30,000,000 is the carrying value of our investment in MAM as detailed in note 9 below. 9. Majedie Asset Management Limited (MAM) Majedie Investments PLC owns a 30% equity shareholding in MAM, which provides investment management and advisory services relating to UK equities. The carrying value of our investment in MAM is included in the Condensed Consolidated Balance Sheet as part of investments at fair value through profit or loss: 31 March 31 March 30 September 2011 2010 2010 Â£000 Â£000 Â£000 Deemed cost of investment 1,207 1,207 1,207 Holding gains 28,793 28,793 28,793 Fair value at period end 30,000 30,000 30,000 The carrying value of MAM in the 31 March 2011 Condensed Consolidated Financial Statements is its fair value as assessed at 31 March 2011. The Board regularly monitors the investment in MAM to ensure that the carrying value remains appropriate. 10. Net Asset Value The net asset value per share has been calculated based on equity shareholders funds and on 52,028,211 (31 March 2010: 52,022,510; 30 September 2010: 52,022,510) ordinary shares, being the shares in issue at the period end having deducted the number of shares held by the Employee Incentive Trust. 11. Reconciliation of Operating Profit to Operating Cash Flow Half year ended Half year ended Year ended 31 March 31 March 30 September 2011 2010 2010 Â£000 Â£000 Â£000 Consolidated net return/ 5,614 10,537 (192) (deficit) before taxation Adjustments for: (Gains)/losses on investments (6,470) (6,218) 2,361 Exchange Movements (613) Dividends reinvested (5) (32) (45) Share based remuneration 30 29 64 Depreciation 122 30 84 Purchase of investments* (609,010) (24,372) (57,963) Sales of investments* 628,877 24,805 55,741 18,545 4,779 50 Finance costs 1,448 1,401 2,802 Operating cash flows before 19,993 6,180 2,852 movements in working capital (Decrease)/increase in trade (213) (60) 410 and other payables Increase in trade and other (685) (166) (18) receivables Net cash inflow from operating 19,095 5,954 3,244 activities before tax Tax recovered 28 4 10 Tax on unfranked income (91) (61) (163) Net cash inflow from operating 19,032 5,897 3,091 activities * The large increase in investment transactions in the six months to 31 March 2011 reflects the high volume trading activity in the QIF in line with its investment approach and industry peers. 12. Reconciliation of Net Cash Flow to Movement in Net Debt Half year ended Half year ended Year ended 31 March 31 March 30 September 2011 2010 2010 Â£000 Â£000 Â£000 Increase/(decrease) in cash 14,319 (166) (6,846) Non cash items (9) (9) (19) Change in net debt 14,310 (175) (6,865) Net debt beginning of period (28,243) (21,378) (21,378) Net debt at end of period (13,933) (21,553) (28,243) 13. Related Party Transactions Javelin Capital Javelin Capital LLP (Javelin Capital) is the investment manager and general administrator to the Company and is also the parent entity of Javelin Capital Fund Management Limited (JCFM) and Javelin Capital Services Limited (JCS) all of which are consolidated in the group accounts. Javelin Capital Strategies plc is an Irish Stock Exchange listed Qualifying Investment Fund "QIF". It currently has one sub-fund called the Javelin Capital Global Equity Strategies Fund, which due to the relative size of the Company's investment in the sub-fund is also consolidated into the group accounts. Javelin Capital and JCFM act as investment manager and manager for the QIF respectively and are entitled to receive management and performance fees. In addition to any fees received from the QIF, Javelin Capital is also entitled to receive management, performance and administration fees from the Company itself in accordance with the relevant agreements. JCS provides administrative services to the group. In performing these services it incurs expenses, including a lease charge from the Company for the use of some of its fixed assets, which are recovered by way of recharges and management fees. The Company has a Â£20m investment in the Javelin Capital Global Equity Strategies Fund. This investment is subject to management and performance fees in accordance with the fund's prospectus and supplement. The Company incurs certain costs on behalf of Majedie Portfolio Management Limited (MPM) for operating the Majedie Investments PLC Share Plan. These costs, net of any income in MPM, are recharged to MPM. The table below details the related party transactions described above and includes the balances owing between the various group companies: Half year ended Half year ended Year ended 31 March 31 March 30 September 2011 2010 2010 Â£'000 Â£'000 Â£'000 QIF fee revenue due to the 165,000 7,000 manager QIF fee revenue due to the 134,000 investment manager Company management fee revenue 358,000 58,000 due to Javelin Capital Company administration fee 132,000 25,000 revenue due to Javelin Capital Company lease charge to JCS 23,000 4,000 JCS management fee income from 1,462,000 2,356,000 Javelin Capital MPM costs recharged by the 16,000 17,000 35,000 Company Balances outstanding at the end of the period: Between JCS and the Company 322,000 283,000 Between JCS and Javelin 363,000 37,000 Capital Between JCS and JCFM 15,000 Between the Company and MPM 93,000 92,000 92,000 Between JCFM and Javelin 137,000 Capital Between JCFM and the QIF 68,000 7,000 Transactions between group companies during the period were made on terms equivalent to those that occur in arm's length transactions. Majedie Asset Management (MAM) MAM is accounted for as an investment in both the Company and Group accounts and is valued at fair value through profit or loss. The table below details the transactions between MAM and the Company during the period: Half year ended Half year ended Year ended 31 March 31 March 30 September 2011 2010 2010 Â£000 Â£000 Â£000 Ordinary dividends received in 1,164 781 468 the period Special dividends received in 5,400 5,400 the period Balances outstanding at the end of the period The Company has no investments in any MAM funds. 14. Financial Information The financial information contained in this Half-Yearly Financial Report does not constitute full statutory accounts as defined in Section 434 of the Companies Act 2006. The financial information for the six months ended 31 March 2011 and 31 March 2010 have not been audited, but have been reviewed by the Company's auditors and their report is shown above. The information for the year ended 30 September 2010 has been extracted from the latest published audited accounts. Those accounts have been filed with the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006. Those statutory accounts were prepared in accordance with International Financial Reporting Standards, as adopted by the European Union. Company Information Board of Directors Investment Manager A J Adcock, Chairman Javelin Capital LLP H V Reid, Deputy Chairman Tower 42 C J Arnheim 25 Old Broad Street J W M Barlow London EC2N 1HQ P D Gadd Telephone: 020 7382 8170 All Directors are non-executive Fax: 020 7382 4854 Email: info@javelincapital.com Registered Office Tower 42 Registrars 25 Old Broad Street Computershare Investor Services PLC London EC2N 1HQ The Pavilions Bridgwater Road Telephone: 020 7626 1243 Bristol BS99 6ZZ Email: majedie@majedie.co.uk Telephone: 0870 707 1159 Registered number: 109305 England Auditors Company Secretary Ernst & Young LLP Capita Sinclair Henderson Limited 1 More London Place (trading as Capita Financial Group - London SE1 2AF Specialist Fund Services) Beaufort House 51 New North Road Stockbrokers Exeter Cenkos Securities plc EX4 4EP 6.7.8 Tokenhouse Yard London EC2R 7AS Telephone: 01392 412122 Facsimile: 01392 253282 Website www.majedie.co.uk National Storage Mechanism A copy of the Half-Yearly Report will be submitted shortly to the National Storage Mechanism ("NSM") and will be available for inspection at the NSM, which is situated at: www.hemscott.com/nsm.do. Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on this announcement (or any other website) is incorporated into, or forms part of, this announcement.

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