Interim Results

RNS Number : 9683I

Aberdeen All Asia Inv Tst PLC

26 November 2008

ABERDEEN ALL ASIA INVESTMENT TRUST PLC

HALF YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2008

Chairman's Statement

Global financial markets were buffeted by exceptional turbulence during the period under review. Asian markets did not escape this turbulence. Outflows of foreign capital were substantial, despite the region's sound fundamentals and relatively high rates of economic growth. Confidence was also weakened by the prospect of recession in Western economies resulting in sharply reduced demand for Asian exports.

Performance

The Company suffered a 13.1% fall in net asset value for the six months to end September 2008, in line with the benchmark MSCI AC Asia Pacific Free Index which fell by 13.0% in Sterling terms. The share price also fell during the period by 16.6% which was in line with other comparable investment trusts. Further information may be found in the Manager's Report.

Board

David Price, the Company's first Chairman who has served in that position for nearly ten years, resigned as Chairman on 24th September 2008. I should like to thank him for his leadership of the Company over that period and am pleased to confirm that the Board and the Company's shareholders will continue to benefit from his experience as, following his recovery, he has agreed to remain as a Director of the Company. I was appointed Chairman of the Company on 24th September 2008, in succession to David, with Kevin Pakenham taking my place as Chairman of the Audit Committee. Sir Robin McLaren, who had been Acting Chairman during David's temporary absence through illness, continues in his role of Senior Independent Director.

Outlook

The short term outlook for Asia remains very cloudy. Equity markets are still volatile, despite coordinated central bank moves, interbank rates are still high, and slower or negative growth seems likely to be a recurring theme in the months ahead. So there may well be further surprises in store.

The good news is that companies in Asia are generally in better shape to weather the downturn than those in developed markets, having reduced debt levels in the wake of the 1997 financial crisis. Corporate reform has resulted in healthier balance sheets, while corporate governance standards have also improved.

Your Company's portfolio consists of conservative, well-managed businesses with strong balance sheets that are likely to weather the current crisis and even prosper from it. Companies that have built up their savings and kept debt to a minimum will stand to gain. In Asia, household, corporate and government balance sheets are generally sound. A growing middle class and the push for wealth, particularly in emerging Asian economies like China and India, should continue to act as a growth engine. In the longer term your Board are optimistic about the prospects for Asia.

The Company's borrowings, denominated in US dollars and Japanese Yen, totalled a Sterling-equivalent of £4.3m at the end of the period and were unchanged at the date of writing this report. The Board regularly reviews the overall level of borrowings in light of market conditions.

Directors' Responsibility Statement

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

- the condensed set of Financial Statements have been prepared in accordance with the Accounting
Standards Board's statement "Half-Yearly Financial Reports"; and

- the Interim Management Report includes a fair review of the general conditions required by 4.2.7R and 4.2.8R
of the Financial Services Authority's Disclosure and Transparency Rules.

The Half-Yearly Financial Report, for the six months ended 30 September 2008, comprises an Interim Management Report in the form of the Chairman's Statement, the Directors' Responsibility Statement and a condensed set of Financial Statements and has not been audited or reviewed by the auditors pursuant to the APB guidance on Review of Interim Financial Information.

Neil Gaskell

Chairman

26 November 2008

Manager's Report

Overview

During the six month review period, global financial markets were in turmoil. Comparisons with the 1929 stock market crash that preceded the great depression were made frequently in the media. Although Asia's financial system is strong, its markets could not help getting caught up in the frenzy, with foreign outflows causing problems for equities and certain currencies alike. Although the period began on an upbeat note, hopes that the worst of the credit crisis had passed proved premature. Inflationary worries first escalated, as the oil price hit nearly $150 per barrel, and then eased, as fears of a global recession caused by the higher prices set in.

Early on, the financial turmoil appeared to have been contained. Asian markets rose in April on renewed confidence that the region was able to 'decouple' from its Western counterparts. Soon, however, elevated food and oil prices that had fuelled inflationary concerns across the region started weighing on sentiment, along with fears the US economic slowdown would spill over into Asia. There were brief rallies, for example, in China, where the government introduced administrative measures to shore up sentiment on stock markets, and India, where the incumbent government survived a no-confidence vote. However, such rallies without exception proved short-lived.

The end of the reporting period was marked by extreme volatility. In September, the collapse of Lehman Brothers and Washington Mutual in the US spooked markets around the world. The various government bailouts of troubled Fannie Mae, Freddie Mac and AIG in the US, and Fortis, Hypo Real Estate and Dexia in Europe, as well as the emergency capital injections by major central banks, provided little relief. The dramatic series of bank failures culminated in US legislators rejecting an initial US$700bn financial rescue plan at the end of September (a revised version of which was approved in early-October).

Meanwhile, weakening growth in the West took a toll on Asian economies. Second-quarter numbers were disappointing as external demand and local consumption eased. Concern then shifted away from rising inflation to falling growth, causing commodity prices to fall sharply. Some Asian central banks tightened monetary policy during the period, but reversed policy direction as business and consumer confidence fell, bankruptcies rose and lending growth stalled. Japan and Taiwan unveiled stimulus packages to boost their economies, while Malaysia, Indonesia and Korea announced tax cuts. And after months of raising bank reserve requirements, China cut rates in September for the first time in more than six years and lowered the reserve requirement for smaller banks.

China is still the most exciting growth story in Asia, even if its stock markets remain highly speculative. Chinese banks have been more insulated from the global credit crisis than their Western counterparts. However, the country has not been totally spared the financial contagion. Despite accounting for one-third of global GDP growth in the first half of 2008, export and industrial production growth has slowed, causing the closure of thousands of companies in southern areas. We continue to prefer Hong Kong companies or Chinese companies listed in Hong Kong, where standards of accounting and transparency are better than those of their mainland counterparts.

In Japan politics dogged headlines during the period as the country suffered a leadership crisis, overshadowing concerns about the stagnant economy. In September Taro Aso became the country's fourth prime minister in just over two years, and all eyes will be on how he can push economic reforms through the opposition-controlled upper house amid the current crisis.

Portfolio

In terms of total assets, the portfolio fell by 12.2% (Sterling-adjusted) over the period, outperforming the benchmark's decline of 12.9%. This outperformance was offset by the effect of gearing such that the net asset value per share fell by 13.1% which was in line with the Index total return decline of 13.0%. The portfolio's underweight position in China was the biggest contributor to this relative outperformance in terms of asset allocation as the market, having been previously overextended, suffered from a general sell-off. Our underweight in Japan was the largest detractor as the domestic market's fall was marginal compared to the declines of its peers.

Over the half year, we have been trimming those holdings that became overvalued and re-investing the proceeds in existing holdings that had fallen to attractive valuations with the number of holdings falling from 56 at 31 March 2008 to 52 by the end of the review period.

At the stock level, our holdings in Hong Kong and Australia detracted most from the portfolio's performance. Wing Hang Bank fell in tandem with the general sell-off among small Hong Kong banks after the run on Bank of East Asia, as well as on concerns over their potential exposure to the fallout of the financial sector in the West. Standard Chartered also suffered from the indiscriminate sell off in banks. Hong Kong-listed property firm Sun Hung Kai Properties suffered from a softer real estate sector and falling property prices in Hong Kong and China.

Another detractor from performance was Australia's biggest gaming company Tabcorp Holdings, which posted losses in the six months to June, after the Victoria government ended its duopoly of the gaming industry with Tatts Group.

Other stocks which detracted from the portfolio's performance were Thailand's Siam Cement, an economy-sensitive stock, which suffered from weakened demand in construction and infrastructure amid the economic slowdown and continuing domestic political uncertainty and Korea's Samsung Electronics, a victim of the general decline in IT stocks on fears of falling demand from developed markets.

Not holding Mizuho Financial and Mitsubishi UFJ also cost the portfolio's relative performance as both showed resilience during the period, being well-capitalised and conservative Japanese financial plays. Our lack of exposure to them reflects our belief that the mature domestic environment in which they operate does not offer much opportunity for growth.

On a more positive note, strong performances from our consumer staples contributed to positive performance. Japanese retail group Seven & I Holdings, which owns the 7-Eleven chain of convenience stores, proved defensive in the current economic slowdown. Hong Kong-listed Dairy Farm International benefited from strong sales and comparatively low overhead costs; the supermarket chain owner also has a good spread of businesses across Asian markets.

Another significant contributor to performance was Australia's QBE Insurance Group, which has been a comfortable long-term hold for the portfolio given the company's strong general and life insurance business and conservative provisioning. Unlike competitors such as US insurer AIG, which had commitments of $400 billion to complex credit default swaps that plummeted in value when the securities they guaranteed declined, QBE remains selective in taking on risks and, therefore, has been less exposed to the current financial storm.

Other positive contributors to performance included Japan's Honda Motor, whose differentiating factors include emphasis on volume growth and a focus on vehicles with greater fuel efficiency. Healthcare stocks such as Japan's Takeda Pharmaceutical also performed well during the period. Companies with strong branding and client retention, like Singapore Airlines, were able to expand their market share as the downturn weakened competitors. Those companies that were seen as able to command strong pricing in developing markets in the face of weakness at home, like chemical company Shin-Etsu Chemical, also proved defensive.

Financial firms suffered during the period due to the loss in confidence amid the ongoing turmoil. We remain very selective about our investments in this sector and the financial institutions in our portfolio all have sensible business strategies and conservative accounting practices. Our bank holdings are mainly engaged in straightforward deposit-taking and lending, with little exposure to the toxic assets afflicting Western banks. As such, our Singapore financial holdings Oversea-Chinese Banking Corporation and United Overseas Bank performed well compared to their peers.

At the portfolio level we introduced Fanuc, a leading Japanese robot maker, due to its diversified product portfolio and strong long-term growth prospects. Conversely, we exited Australian construction company Leighton Holdings, a long-term position that had been exceptionally rewarding, and Korean lender Kookmin Bank, accepting a repurchase offer in relation to its transformation into a financial holding company. We also sold Maybank in Malaysia following meetings with the company's senior management that left us unconvinced that purchases of equity stakes in banks in Indonesia, Pakistan and Vietnam were at decent prices, nor that the company had the resources to manage the acquisitions. We exited Japanese electric components maker Rohm Co, as it continued to suffer from deteriorating margins in an increasingly competitive environment, as well as China's Zhejiang Expressway due to stagnating revenue growth in relation to its toll roads and a lack of clear direction within its securities arm.

Furthermore, we reduced our positions in holdings like Taiwan's Fubon Financial, Hong Kong-based CLP Holdings and China Mobile after their shares rallied and their valuations rose to more demanding levels. We added to holdings such as PetroChina, Standard Chartered and Mitsubishi Estate after their share prices fell to more attractive levels.

Outlook

At the time of writing, a coordinated global effort to ease monetary policy and inject more capital into distressed credit markets had failed to lift the gloom in the financial system. The IMF has argued that the global banking system urgently requires further capital injection, in addition to the more than US$400bn that has already been committed. Most likely, it will take some time for confidence to return to credit markets, even if more capital is made available, given banks' unwillingness to lend and uncertainty about how serious the economic downturn will be. Fears that lack of credit and ongoing deleveraging will lead to job cuts and a global recession have become more pronounced. In Asia, some economies such as Singapore and Japan are already in a technical recession, and others could be heading that way soon.

We continue to believe that the exposure gained through our investment on your behalf in solid, well run companies should deliver favourable long term growth. Like your Board, we remain optimistic in the longer term investment case for Asia.

INCOME STATEMENT

	Six months ended
	30 September 2008
	(unaudited)
	Revenue	Capital	Total
	£'000	£'000	£'000
(Losses)/gains on investments	-	(5,413)	(5,413)
Income (note 2)	808	-	808
Investment management fee	(149)	-	(149)
Administration expenses	(111)	(12)	(123)
Exchange (losses)/gains	-	(326)	(326)
	_________	_________	_________
Net return before finance costs and taxation	548	(5,751)	(5,203)

Finance costs	(60)	-	(60)
	_________	_________	_________
Net return on ordinary activities before taxation	488	(5,751)	(5,263)

Taxation on ordinary activities	(31)	-	(31)
	_________	_________	_________
Net return on ordinary activities after taxation	457	(5,751)	(5,294)
	_________	_________	_________

Return per Ordinary share (pence)(note 3)	2.83	(35.58)	(32.75)
	_________	_________	_________

The total column of this statement represents the profit and loss account of the Company.

A Statement of Total Recognised Gains and Losses has not been prepared as all gains and losses have been reflected in the Income Statement.

All revenue and capital items in the above statement derive from continuing operations.

The accompanying notes are an integral part of the financial statements.

INCOME STATEMENT

	Six months ended
	30 September 2007
	(unaudited)
	Revenue	Capital	Total
	£'000	£'000	£'000
(Losses)/gains on investments	-	3,892	3,892
Income (note 2)	748	-	748
Investment management fee	(150)	-	(150)
Administration expenses	(108)	(7)	(115)
Exchange (losses)/gains	-	42	42
	_________	_________	_________
Net return before finance costs and taxation	490	3,927	4,417

Finance costs	(47)	-	(47)
	_________	_________	_________
Net return on ordinary activities before taxation	443	3,927	4,370

Taxation on ordinary activities	(29)	-	(29)
	_________	_________	_________
Net return on ordinary activities after taxation	414	3,927	4,341
	_________	_________	_________

Return per Ordinary share (pence)(note 3)	2.48	23.53	26.01
	_________	_________	_________

INCOME STATEMENT

	Year ended
	31 March 2008
	(audited)
	Revenue	Capital	Total
	£'000	£'000	£'000
(Losses)/gains on investments	-	834	834
Income (note 2)	1,202	-	1,202
Investment management fee	(305)	-	(305)
Administration expenses	(218)	(19)	(237)
Exchange (losses)/gains	-	(77)	(77)
	_________	_________	_________
Net return before finance costs and taxation	679	738	1,417

Finance costs	(120)	-	(120)
	_________	_________	_________
Net return on ordinary activities before taxation	559	738	1,297

Taxation on ordinary activities	(55)	-	(55)
	_________	_________	_________
Net return on ordinary activities after taxation	504	738	1,242
	_________	_________	_________

Return per Ordinary share (pence)(note 3)	3.04	4.45	7.49
	_________	_________	_________

BALANCE SHEET

		As at	As at	As at
		30 September 2008	30 September 2007	31 March 2008
		(unaudited)	(unaudited)	(audited)
	Notes	£'000	£'000	£'000
Non-current assets
Investments at fair value through profit or loss		37,670	46,807	43,583
		_________	_________	_________
Current assets
Debtors		199	185	320
Cash at bank and in hand		1,149	344	381
		_________	_________	_________
		1,348	529	701
		_________	_________	_________
Creditors: amounts falling due within one year
Foreign currency loans	5	(4,227)	(2,832)	(3,852)
Other creditors		(212)	(137)	(103)
		_________	_________	_________
		(4,439)	(2,969)	(3,955)
		_________	_________	_________
Net current liabilities		(3,091)	(2,440)	(3,254)
		_________	_________	_________
Net assets		34,579	44,367	40,329
		_________	_________	_________
Share capital and reserves
Called-up share capital		1,606	1,669	1,627
Special reserve		1,566	2,961	2,022
Capital redemption reserve		2,126	2,063	2,105
Capital reserve	6	28,839	37,779	34,590
Revenue reserve		442	(105)	(15)
		_________	_________	_________
Equity Shareholders' funds		34,579	44,367	40,329
		_________	_________	_________

Net asset value per Ordinary share (pence):	7	215.25	265.88	247.82
		_________	_________	_________

RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS

Six months ended 30 September 2008 (unaudited)
			Capital
	Share	Special	redemption	Capital	Revenue
	capital	reserve	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 March 2008	1,627	2,022	2,105	34,590	(15)	40,329
Purchase of own shares for cancellation	(21)	(456)	21	-	-	(456)
Return on ordinary activities after taxation	-	-	-	(5,751)	457	(5,294)
	_______	_______	_______	_______	_______	_______
Balance at 30 September 2008	1,606	1,566	2,126	28,839	442	34,579
	_______	_______	_______	_______	_______	_______

Six months ended 30 September 2007 (unaudited)
			Capital
	Share	Special	redemption	Capital	Revenue
	capital	reserve	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 March 2007	1,669	2,961	2,063	33,852	(519)	40,026
Return on ordinary activities after taxation	-	-	-	3,927	414	4,341
	_______	_______	_______	_______	_______	_______
Balance at 30 September 2007	1,669	2,961	2,063	37,779	(105)	44,367
	_______	_______	_______	_______	_______	_______

Year ended 31 March 2008 (audited)
			Capital
	Share	Special	redemption	Capital	Revenue
	capital	reserve	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 March 2007	1,669	2,961	2,063	33,852	(519)	40,026
Purchase of own shares for cancellation	(42)	(939)	42	-	-	(939)
Return on ordinary activities after taxation	-	-	-	738	504	1,242
	_______	_______	_______	_______	_______	_______
Balance at 31 March 2008	1,627	2,022	2,105	34,590	(15)	40,329
	_______	_______	_______	_______	_______	_______

CASHFLOW STATEMENT

	Six months ended	Six months ended	Year ended
	30 September 2008	30 September 2007	31 March 2008
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Return on ordinary activities before finance costs and taxation	(5,203)	4,417	1,417
Adjustments for:
Losses/(gains) on investments	5,413	(3,892)	(834)
Expenses taken to capital reserve	12	7	19
Foreign exchange movements	326	(42)	77
	___________	___________	___________
	548	490	679

Decrease/(increase) in accrued income	105	27	(80)
Decrease in other debtors	8	34	27
(Decrease)/increase in other creditors	(46)	35	3
Overseas withholding tax suffered	(46)	(37)	(50)
Stock dividends included in investment income	(1)	(1)	-
	___________	___________	___________
Net cash inflow from operating activities	568	548	579

Servicing of finance
Bank and loan interest paid	(30)	(47)	(121)

Financial investment
Purchases of investments	(2,738)	(3,657)	(7,542)
Sales of investments	3,382	2,096	6,102
Expenses allocated to capital	(7)	(2)	(5)
	___________	___________	___________
Net cash inflow/(outflow) before financing	1,175	(1,062)	(987)

Financing
Purchase of Ordinary share capital	(456)	-	(939)
Loan drawn down	-	1,151	2,076
	___________	___________	___________
Increase in cash	719	89	150
	___________	___________	___________

Reconciliation of net cash flow to movements in net debt
Increase in cash as above	719	89	150
Increase in borrowings	-	(1,151)	(2,076)
	___________	___________	___________
Change in net debt resulting from cash flows	719	(1,062)	(1,926)
Foreign exchange movements	(326)	42	(77)
	___________	___________	___________
Movement in net debt in the period	393	(1,020)	(2,003)
Opening net debt	(3,471)	(1,468)	(1,468)
	___________	___________	___________
Closing net debt	(3,078)	(2,488)	(3,471)
	___________	___________	___________

NOTES TO THE ACCOUNTS

Accounting policies

Basis of accounting

The accounts have been prepared in accordance with applicable UK Accounting Standards, with pronouncements on Half-Yearly Reporting issued by the Accounting Standards Board and with the Statement of Recommended Practice for 'Financial Statements of Investment Trust Companies' (December 2005). They have also been prepared on the assumption that approval as an investment trust will continue to be granted.

The financial statements and the net asset value per share figures have been prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP).

The interim accounts have been prepared using the same accounting policies as the preceding annual accounts.

		Six months ended	Six months ended	Year ended
		30 September 2008	30 September 2007	31 March 2008
2.	Income	£'000	£'000	£'000
	Income from investments
	UK dividend income	17	13	37
	Overseas dividends	788	728	1,156
	Stock dividends	1	1	1
		___________	___________	___________
		806	742	1,194
		___________	___________	___________
	Other income
	Deposit interest	2	6	8
		___________	___________	___________
	Total income	808	748	1,202
		___________	___________	___________

		Six months ended	Six months ended	Year ended
		30 September 2008	30 September 2007	31 March 2008
3.	Return per Ordinary share	£'000	£'000	£'000
	The return per share is based on the following figures:
	Revenue return	457	414	504
	Capital return	(5,751)	3,927	738
		___________	___________	___________
	Total return	(5,294)	4,341	1,242
		___________	___________	___________
	Weighted average number of Ordinary shares in issue	16,165,930	16,686,767	16,591,260

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

		Six months ended	Six months ended	Year ended
		30 September 2008	30 September 2007	31 March 2008
		£'000	£'000	£'000
	Purchases	4	5	14
	Sales	5	4	10
		___________	___________	___________
		9	9	24

		Six months ended	Six months ended	Year ended
		30 September 2008	30 September 2007	31 March 2008
5.	Foreign currency loans	£'000	£'000	£'000
	Foreign currency loans	4,227	2,832	3,852
		___________	___________	___________

	Bank loans of US$5,700,000 (30 September 2007 - US$2,450,000; 31 March 2008 - US$5,700,000), equivalent to £3,198,000 (30 September 2007 - £2,405,000; 31 March 2008 - £2,868,000) at an interest rate of 3.48% (30 September 2007 - 6.50%; 31 March 2008 - 3.30%) and JPY194,700,000 (30 September 2007 - JPY100,000,000; 31 March 2008 - JPY194,700,000), equivalent to £1,029,000 (30 September 2007 - £427,000; 31 March 2008 - £984,000) at an interest rate of 1.63% (30 September 2007 - 1.67%; 31 March 2008 - 1.67%) are drawn down from the £7,000,000 facility with ING Bank N.V. On 2 October 2008 the loans were rolled over to 31 December 2008 for the US$5,700,000 loan at a rate of 4.70% and 30 December 2008 for the JPY194,700,000 loan at a rate of 1.67%.

			Investment
			holding
		Realised	gains	Total
6.	Capital reserve	£'000	£'000	£'000
	Six months ended 30 September 2008 (unaudited)
	At 31 March 2008	34,590	-	34,590
	Movement in investment holdings fair value losses	(4,995)	-	(4,995)
	Losses on realisation of investments at fair value	(418)	-	(418)
	Foreign exchange movements	(326)	-	(326)
	Administration expenses	(12)	-	(12)
		___________	___________	___________
	At 30 September 2008	28,839	-	28,839
		___________	___________	___________

	Six months ended 30 September 2007 (unaudited)
	At 31 March 2007	32,471	1,381	33,852
	Reclassification of reserves	1,381	(1,381)	-
	Movement in investment holdings fair value gains	3,753	-	3,753
	Gains on realisation of investments at fair value	139	-	139
	Foreign exchange movements	42	-	42
	Administration expenses	(7)	-	(7)
		___________	___________	___________
	At 30 September 2007	37,779	-	37,779
		___________	___________	___________

	Year ended 31 March 2008 (audited)
	At 31 March 2007	32,471	1,381	33,852
	Reclassification of reserves	1,381	(1,381)	-
	Movement in investment holdings fair value gains	152	-	152
	Gains on realisation of investments at fair value	682	-	682
	Foreign exchange movements	(77)	-	(77)
	Administration expenses	(19)	-	(19)
		___________	___________	___________
	At 31 March 2008	34,590	-	34,590
		___________	___________	___________

		As at	As at	As at
7.	Net asset value per Ordinary share	30 September 2008	30 September 2007	31 March 2008
	Attributable net assets (£'000)	34,579	44,367	40,329
	Number of Ordinary shares in issue	16,064,367	16,686,767	16,273,367
	Net asset value per Ordinary share (p)	215.25	265.88	247.82

Related party disclosures

During the course of the period, the Company held an investment in another fund managed by the same Manager. The value of the holding at the period end was £3,757,000 (30 September 2007 - £4,804,000; 31 March 2008 - £4,110,000). Such investments are excluded from the calculation of the investment management fee.

The financial information contained in this Half-Yearly Financial Report is not the Company's statutory financial statements. The financial information for the six months ended 30 September 2008 and 30 September 2007 is not for a financial year and has not been audited. The statutory financial statements for the financial year ended 31 March 2008 have been delivered to the Registrar of Companies and received an audit report which was unqualified, did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying the report, and did not contain statements under Section 237(2) and (3) of the Companies Act 1985.

10.	This Half-Yearly Financial Report was approved by the Board on 26 November 2008. The Interim Report will shortly be available from the Company's website (www.all-asia.co.uk) and will be posted to shareholders in December 2008.