Final Results

Financial Record
As at 31 March                     2004      2003      2002      2001      2000
Total assets                      2,528     2,096     2,692     2,697     2,598
Loans                               750       750       750       750       750
Shareholders' funds (£'000)       1,778     1,346     1,942     1,947     1,848
Net asset value per share (p)    130.91     98.72    139.94    139.43    128.27
Share price (p)                  100.00     80.65    107.25     99.75     72.50
Discount (%)                       23.6      18.3      23.4      28.5      43.5
Gearing(%)*                        24.1      13.2      17.9      32.0      35.4
                                   2004      2003      2002      2001      2000
Year to 31 March

Revenue available for                47        50        66        55        71
shareholders (£'000)
Revenue return per share (p)       3.48      3.65      4.72      3.87      4.93
Dividends per share (net) (p)      3.40      3.60      4.00      4.30      4.60
Dividend yield on our shares (%)   3.40      4.46      3.73      4.31      6.34
Dividend yield on FTSE All         3.71      3.87      2.99      2.94      3.12
Share Index (%)
Expenses ratio-net basis(%)**      3.64      3.87      3.14      3.00      2.72
Expenses ratio-gross basis(%)**    2.53      2.61      2.21      2.10      1.86


*    Net debt as a percentage of shareholders' funds
**    Net  basis  - Administrative expenses as a percentage of the  average  net
asset value of the Company
   Gross  basis  - Administrative expenses as a percentage of the average  gross
asset value of the Company


Portfolio Information
at 31 March 2004
                                               Valuation        % of         % of
                                                           Portfolio    Portfolio
                                                     (£)        2004         2003
Equity investments
 3,200 Societe Generale                          148,371         6.7
16,000 Alliance & Leicester                      139,840         6.3
18,679 HBOS                                      137,851         6.3
11,300 ABN-Amro Holdings NV                      136,826         6.2
 3,700 BNP Paribas                               122,753         5.6
27,200 Lloyds TSB Group                          112,472         5.1
28,000 Amvescap                                  112,140         5.1
23,600 Abbey National                            107,380         4.9
15,000 Schroders                                 103,500         4.7
33,000 Bradford & Bingley                         97,350         4.4
10,600 Irish Life & Permanent Ordinary IR         93,982         4.3
 9,000 Dexia NPV (French line)                    84,839         3.9
16,732 Barclays                                   80,188         3.6
77,490 Legal & General Group                      73,422         3.3
13,500 Aviva                                      71,280         3.2
 7,500 Northern Rock                              58,238         2.6
40,000 Friends Provident                          58,100         2.6
 4,600 Bayerische Hypo-Und Vereinsbank            51,280         2.3
 5,000 Commerzbank AG                             45,966         2.1
37,500 Blue Planet European Financials            24,000         1.1
       Investment Trust
 7,000 Britannic Group                            24,500         1.1
18,300 Aberdeen Asset Management                  17,568         0.8
112,57 Jupiter Financial Trust                    16,886         0.8
     7
19,600 Blue Planet Worldwide Financials           12,740         0.6
       Investment Trust
                                               1,931,472        87.6         53.6
Debt securities
80,000 BUPA Finance 10 1/2% Subordinated          94,500         4.3
       Guaranteed Bonds 2018
70,000 Scottish Life 9% Subordinated Bond         72,045         3.3
70,000 NPI 9 5/8% Subordinated Bonds              69,001         3.1
20,000 Leeds & Holbeck Building Society 13        38,752         1.7
       3/8% PIBS
    40 Halifax Non Cumulative Preference              38         0.0
       Shares 3.0625%
                                                 274,336        12.4         46.4
       Total                                   2,205,808       100.0        100.0
       Yield                                        5.1%                     6.1%



The yield represents the income from investments as a percentage of the cost of
the portfolio.


Classification of Investments
At 31 March 2004

                           Life  Investment             Fixed      Total     Total
                Banks Assurance   Companies   Other  Interest       2004      2003
                    %         %         %         %         %          %         %
Belgium                                                                        3.4
France           16.1                                               16.1       9.5
Germany           4.4                                                4.4       2.8
Eire                        4.3                                      4.3      13.0
Netherlands       6.2                                                6.2
United           34.4       2.6      13.0       6.6      12.4       69.0      71.3
Kingdom
Totals 2004      61.1       6.9      13.0       6.6      12.4      100.0
Totals 2003      39.0      13.8       0.7       0.1      46.4                100.0
Benchmark *        44        12                  14        30        100

* Our benchmark is a composite of 70% FTSE Eurotop 300 Financial index and 30%
FTSE Actuaries Gov't Securities Fixed Interest index.


                              Chairman's Statement


In  our  last  Annual  Report I expressed the view that stock  markets  and  the
Financial Services sector were materially undervalued. I also noted that we  had
a  good portfolio of high quality stocks, a record of out-performance and that I
expected  us to do well over the forthcoming 12 to 24 months.  This has happened
and  the year to 31st March 2004 has been one of substantial out-performance and
a good one for your Company.

On 31 March 2003, 46.4% of our portfolio was invested in bonds and PIBS with the
balance of 53.6% invested in equities. At that time the board and our investment
manager, Blue Planet Investment Management, were agreed that we were at or  near
the  bottom  of  the Sterling interest rate cycle and that future  returns  from
equities  were likely to be greater than those from bonds and PIBS.   For  these
reasons, we decided to reduce the percentage of our portfolio invested in  bonds
and  lock in the profits we have made on these. We also decided to increase  the
proportion invested in equities. By 31 March 2004, we had reduced the proportion
of  our  portfolio invested in bonds and PIBS to 12.4% and increased the  equity
element to 87.6%.  We believe that the risk/reward profile of Sterling bonds and
PIBS  is  now very unattractive with the real prospect of future capital losses.
In the short term we have sold both bonds and equities, building up cash and
reduce our gearing.  Gearing stood at 24.1% at our year-end, 31 March 2004. By
30  April 2004, we had reduced this to 9.8% our lowest level ever in
anticipation of short-term market weakness.

Portfolio performance
Our Benchmark Index, which is a composite, has been adjusted to take account  of
the  restructuring of our portfolio and our Europe wide, financial sector remit.
It  is  now  70% weighted to the FTSE Eurotop 300 Financials Index,  which  rose
35.9%  over  the  period, and 30% to the FTSE Actuaries Govt.  Securities  Fixed
Interest Index, which fell 1.9%. This apportionment approximately equates to the
average composition of the portfolio over the period.

While  our  Benchmark Index rose by an impressive 24.6% over the year,  our  net
asset  value rose by much more, by 32.6%.  We started the year off  with  a  net
asset  value  of  98.72p per share and ended it at 130.91p per  share.  We  have
beaten our Benchmark Index in every year, bar two, since we listed on the London
Stock Exchange in 1996.

Furthermore,  of  all  the  specialist financials  funds  whose  performance  is
measured by Standard & Poors, we are the highest rated with four stars. No other
financial sector fund commands such a high rating.

More  information on the performance of our portfolio is given in the Investment
Manager's report.

Share price performance
The  Company's  share price rose 24% over the year from 80.65p to  100.00p.  Our
share  price  is  published daily in The Times. It can also be  viewed  on  Blue
Planet's  website  (www.blueplanet.eu.com) and on the  London  Stock  Exchange's
website  (www.londonstockexchange.com). The London Stock Exchange code  for  the
Units is BPFU.

Shares  in  the  ten Blue Planet Financials Growth and Income Investment  Trusts
numbers  1  through  to 10 can be traded individually or  as  units.  Each  unit
comprises one share in each of the ten investment trusts.  The units tend to  be
more  liquid and are generally more competitively priced than shares in each  of
the  underlying  trusts. They are also more convenient to  deal  in.  For  these
reasons,  most  of  our shareholders have chosen to deal in  units  rather  than
shares.

Share price discount to net asset value
As the 24% rise in our share price was less than the 32.6% rise in our net asset
value our discount to net asset value widened to 23.6%. Your Board believes that
this  is  unjustified given our excellent performance and  the  quality  of  our
portfolio and is committed to reducing this.

Dividend
We  have  restructured the portfolio in the expectation that this  will  produce
higher  capital  gains and total returns in the long term and  protect  us  from
future falls in the value of Sterling bonds and PIBS.  This does however,  as  I
have  mentioned  before, reduce our income and dividend paying capacity  in  the
short  term.   We appreciate the importance of dividends to investors  and  have
tried to manage this process in such a way as to minimise the impact of this  on
our  dividend,  so  I am glad that, despite the scale of this restructuring,  we
have  been able to contain the reduction in our dividend to 5.5%.  This gives  a
dividend  for  the year of 3.40p against 3.60p last year.  Disappointing  though
this is, we believe that this slight reduction in income is a price worth paying
in  order  protect us against possible future capital losses on our holdings  of
Sterling  bonds and PIBs which might arise if Sterling interest  rates  were  to
rise - an event which is now being widely forecast.

The  financial companies we are invested in are of good quality and have, on the
whole,  been increasing their dividends. If this continues it will,  over  time,
lead to an increase in our income and our dividend paying capacity.

Borrowings and gearing
At 31 March 2004, the Company had borrowings of £0.75 million and cash of £0.32m
giving  net  debt  of  £0.43m. This equates to 24.1% of net  asset  value.   The
Company's borrowings are denominated in Sterling.

Outlook

Your Company has made considerable progress in the past year and the outlook  is
better now than it has been for several years.  The FTSE Eurotop Financials  300
has risen by 40% from its low point on 12 March 2003.
However,  this recovery, like most others before it, is unlikely to  be  without
its  ups  and  downs  and we would expect to see increased volatility  in  share
prices  over the summer months with a resumption of steadier growth in the  back
end  of 2004.  We have just come through one of the most severe bear markets  in
living  memory  and it takes time for investors to leave behind the  fears  that
such  events  create, just as the euphoria of bull markets blinds  investors  to
fundamentals  that  point  to  markets being overpriced.  Leaving  aside  market
sentiment,  if  you  evaluate  shares in good  quality  financial  companies  on
economic  grounds alone we believe they are undervalued and that they have  some
way to rise yet.

There  are  indications that some of the world's major economies are  recovering
after  an extended period of little or no growth and that others are now growing
rapidly.

Recent  results  from banks and other financial companies have,  on  the  whole,
shown  increased pre-tax profits, earnings per share and dividends. Furthermore,
we  are  seeing,  for the first time in many years, financial companies  issuing
statements  to  the effect that their profits are going to be  higher  than  the
stock  market  is  anticipating. These are good signs and the recent  upturn  in
stock  markets  is already beginning to impact beneficially on the  earnings  of
financial  companies such as investment banks, stockbrokers, fund  managers  and
life companies.  If, as we expect, the recovery gathers pace in the back end  of
2004,  investor confidence will improve.  If it does, we believe that  investors
are  likely to switch out of bonds, cash and property and into equities in order
to obtain higher investment returns. We also expect to see an increase in merger
and acquisition activity  in the Financial Services sector as the market
recovers. Should  these events occur, then it is likely that they will drive
share prices higher to the benefit of the Company.

Your directors believe that all well constructed portfolios should have at their
core  a  quality portfolio of shares in banks and other financial companies.  We
also  believe that we provide this and that the Trusts should be seen as a  core
holding for investors.

We  have a geared portfolio of quality shares in a sector which we believe  will
out-perform most other sectors of the stock market in the medium and long  term.
We  also  have a record of out-performance and look forward to the  future  with
confidence.

I  thank  you for your support and look forward to welcoming you to  the  Annual
General Meeting on 24 June 2004.

Philip Court
Chairman
27 May 2004



                           Investment Manager's Report


Portfolio Performance Analysis

As already highlighted in the Chairman's statement, the net asset value of the
Blue Planet Financials Growth and Income Investment Trusts rose by 32.6% over
the period. This was in excess of our Benchmark Index, which rose 24.6%. This
out-performance has been achieved by a combination of sector specialisation,
discerning stock selection and the positive effect of gearing.
As can be seen from the chart in the annual accounts the FTSE Eurotop 300
Financials Index rose by 35.9% against a rise of 27.7% in the general FTSE
Eurotop 300 index.  This highlights the strong performance of the financial
sector, in Europe, both in real terms and relative to the overall market.  In
contrast, the poor performance of the FTSE Actuaries Fixed Interest Index over
the period demonstrates why it was desirable to reposition our portfolio and to
focus on financial equities.
Review of our Investments by Country

UK
2003 was a very good year for the majority of UK banks who reported strong
earnings with most Returns on Equity (ROE's) in the 14-18% range, with Abbey the
notable exception. The performance of UK banks was aided by the domestic
economy, which remained resilient throughout 2003, with GDP growing at 2.3%.
HBOS plc
Britain's biggest mortgage lender, HBOS plc reported 2003 annual profit before
tax and exceptional items up 27% to £3,885m. Each division recorded a growth in
profits for the year. The company has a policy of increasing dividend cover to
2.5 times, as a step in this direction HBOS dividend for 2003 was increased by
5% (to 2.2 times) with scope for a further increase next year.
HBOS has made a good start to the 2004 financial year, despite concerns over
house prices and interest rate increases, with trading in line with market
expectations. HBOS said that investment sales and international business was up
and that it has more aggressive plans to expand in Ireland.  HBOS is targeting
to take a 7% share of the Irish mortgage market this year increasing over time
to 15%.
Lloyds TSB Group plc
Lloyds TSB headline results showed a 66% increase in profits before tax for
2003. However, excluding profits from the sale of businesses, investment
variance and changes in economic assumptions, the Groups pre tax profits before
tax actually fell 4% to £3,380mn and earnings per share fell 6% to 41.5p.
Nevertheless, Lloyds TSB continues to be a very profitable and well run bank
and, after excluding profits from the sale of businesses, investment variance
and changes in economic assumptions, earned a post-tax return on average
shareholders' equity of 27.4% in 2003 compared with 23.1% in 2002. A dividend of
34.2p per share was paid in 2003, the same as in 2002.
Alliance & Leicester plc
Alliance & Leicester's conservative approach of concentrating on its core
competencies led it to achieve a good set of financial results in 2003 and a
solid share price performance, with an increase of nearly 13% over the fund's
annual reporting period. Alliance & Leicester's pre-tax profits were up 12% in
2003. This resulted in a 16% increase in earnings per share and a 10% increase
in the dividend to 43.9p per share. At the end of the first quarter of 2004,
Alliance & Leicester announced they were on track to achieve their primary
strategic objective of double digit percentage growth in basic earnings per
share in 2004.
Amvescap plc
Amvescap, a fund management company listed on the London Stock Exchange,
reported profits before tax and goodwill amortisation for 2003 down 15.7% to
£320.9mn, diluted earnings per share before goodwill amortisation down 19.7% to
16.3p. It did, however, maintain its dividend at 11.5p per share. This stock was
bought as it provided a geared play on any recovery in stock markets. Its share
price rose 29% over the period, however since our year end it has come to light
that Invesco Funds Group, Amvescap's Denver based manager of retail funds, is
under investigation by the US regulatory authorities for alleged malpractice.
Despite this, Amvescap has started 2004 off well and on 27 April 2004 it posted
first quarter profits before tax and goodwill amortisation up 48.2% to £71.9mn
and diluted earnings per share before goodwill amortisation up 38% to 5.8p.
Unfortunately, this has not stopped its share price from weakening.
France
Despite the poor economic environment in France in 2003, its leading banks have
reported good results for 2003. The large banks remain well capitalised and
asset quality held up well. Consolidation in the French banking sector has
increased over the years, and the Country's top four banks now control some 70%
of the market, limiting possibilities for additional consolidation.

Societe Generale SA
Our best performing investment in France was its third largest bank by assets,
Societe Generale SA, which rose 64%. It posted excellent results for 2003 with
net income and earnings per share both up 78.4%. It also increased its full year
dividend by 19% to Euro 2.50. Societe Genrale's post-tax return on average
shareholders' equity in 2003 was 16.2% compared with 9.4% in 2002.

BNP Paribas Group
Our other big holding in France, BNP Paribas Group ("BNP"), also had a very good
year and the value of our shareholding rose by 31%. In 2003, it's net income
rose 14.1% to E3,761m and it increased its full year dividend by 21% to E1.45
per share.  It earned a post-tax return on average shareholders' equity of 14.3%
in 2003. This compares with 13.5% in 2002.

BNP has made an excellent start in 2004 and on 6 May it announced a 31.3% rise
in first quarter net income to E 1,263m, well ahead of consensus. It also
recorded the highest level of operating income since BNP Paribas Group was
formed in 1999. The outlook for the remainder of the year is positive.

Netherlands
ABN Amro Holding NV
During the year we acquired shares in ABN Amro Holding NV, the largest bank in
Holland by assets. Since then ABN AMRO have performed well reporting its highest
ever final quarterly net profit of E857m, up 25%, and record net profits of
E3,161m for 2003, up 43% on 2002.  It also announced a 5.6% increase in full
year dividends to 95 cents.
On the announcement of the 2003 profits, Rijkman Groenink, the Group's Chief
Executive Officer, said that he expected 2004 to be even better with a
continuing improvement in the Group's operating performance and net profit.
ABN AMRO have got off to a good start in 2004 and have recently posted record
first quarter net profits of E934m, up 35% on the same quarter in 2003. This was
ahead of market expectations.

Over the period our holding in ABN AMRO rose in value by 16%.
Germany
German banks undertook long overdue restructuring and cost-cutting exercises  in
2003.  This led to a significant improvement in loan loss provisions and a  more
market-driven approach. This, along with the move out of recession by the German
economy  and  an upturn in capital markets, led to the banks making progress  on
the  road  to recovery. Despite this, your directors believe that, German  banks
remain  amongst  the  weakest and worst managed in Europe and  that  the  German
banking sector is badly in need of restructuring. However, there are signs  that
this  may  be  beginning  to happen and if it does, the  long  term  returns  to
investors  could  be  great.  We are invested in two German  banks,  Commerzbank
Group  and  Bayerische Hypo-und Vereinsbank Group (HVB), both of which performed
well  over  the  period with Commerzbank's shares rising 115% and  HVB's  rising
124%.

Commerzbank Group
Commerzbank  reported a pre-tax loss of E1,980m and a net loss  of  E2,320m  for
2003  against a  pre-tax loss of E372m and a net loss of E298m in 2002. Its cost
to income ratio fell to 73.3% from 77% and needs to be cut much further to bring
the  bank to an acceptable level of efficiency. If this is achieved it will lead
to a significant rise in the Group's profitability.

Commerzbank  is  addressing its problems and 2004 has started  well  with  first
quarter profit from ordinary activities before restructuring expenses up 192% on
the same period last year to E415m - the highest for some while, net profits  of
E254m  against  E3m  last year, a further 5.6% decline  in  its  provisions  for
possible loan losses to Euro238mn and a reduction in its cost to income ratio to
62.1%. Prospects are improving and there is a reasonable chance that Commerzbank
may be bid for.

HVB Group
HVB is the second largest listed bank in Germany by assets. It undertook a major
balance sheet reconstruction during 2003 including strategic disposals. It also
managed to reduce its unacceptably high cost to income ratio from 73% to 63%.
Despite this it turned in a net annual loss of E2,442m against E853m in 2002.
Once again HVB paid no dividend.

Its first quarter results for 2004, which were released on 29 April, show some
progress with operating profits up 123% from E130m to E290m while pre-tax
profits rose to E199m from E54m. However, profits after tax and minority
interests were only E53m and that including E53m pre-tax proceeds from the sale
of Bankhaus BethmannMaffei. Divisional breakdown shows that most profits
continue to come from Austria and Central and Eastern Europe (operating profits
+26% to E140m) and Corporates and Markets (operating profits -46% to E141m),
while returns from Germany remain totally inadequate at E26m, excluding asset
disposals. Some improvement is expected in coming quarters but the task ahead is
still great. HVB badly needs new and better management and it would be in
shareholders interest if this were to happen by takeover.

Corporate Activity

As  the  markets  improved throughout the latter half  of  2003,  the  level  of
corporate activity in the Financial Service sector increased markedly.

In the UK banking sector, Royal Bank of Scotland ("RBS") announced the £1.1bn
cash acquisition of UK non-life assurer Churchill from Credit Suisse in June
2003.  It also paid £228m to buy Bank von Ernst & Cie AG, a Swiss Private Bank
and announced an agreed E887m takeover of First Active in Ireland. RBS carried
out two transactions with Banco Santander Central Hispanoamerica, one to sell
the private banking operations of the Coutts Group in Latin America and secondly
to purchase the credit card and personal loan portfolios of Frankfurt based
Santander Direkt Bank. RBS also announced on 6 May 2004, after our year end,
that it had agreed to acquire Charter One Bank in the USA for $10.5bn (GBP5.8bn)
to add to its existing US operation, Citizens.
Barclays added Gerrard, a fund management company, and Banco Zaragozano in Spain
to  its  portfolio. We also saw a recommencement of corporate  activity  in  the
mutual  life  assurance  and building society sectors. Standard  Life  Assurance
Company  announced that it was to convert to a public limited company.  In  July
2003,  the Portman and Staffordshire building societies merged.  The Clay  Cross
Building  Society  also merged with the much larger Derbyshire Building  Society
during the year.

In France, the acquisition of Credit Lyonnais by Credit Agricole was followed by
a  number of transactions by Groupe Caisses d'Epargne, including reinforcing its
strategic  partnership  with San-Paolo IMI by taking  a  majority  interest  and
creating  Eulia,  a  strategic partnership with state-owned Caisse  des  Depots.
Credit Foncier de France also acquired Entenial.

There were intra-country mergers in Germany between Hamburgische Landesbank  and
Landesbank  Schleswig-Holstein, in Italy between Banco Popolare de  Bergamo  and
Banco  Popolare Commercio, in Norway between Den Norske Bank and Union  Bank  of
Norway and in Spain between Banco Sabadell and Banco Atlantico.

Further mergers took place, both inter-EU, such as ABN Amro's purchase of German
bank  BethmannMaffei, and between EU and Eastern European banks, such as Italy's
Unicredito  which acquired Zinovstenska Banka in the Czech Republic  and  gained
majority control of Demir Romlease in Romania.

Bids  and deals were also happening within the fund management sector.  In  June
2003, Zurich Financial Services announced the sale of Threadneedle, its UK based
asset  manager, to American Express for $570m. In September 2003, Aberdeen Asset
Management successfully bid for Edinburgh Fund Managers.

Furthermore, this activity is not limited to Europe. It is global in nature. The
United  States saw some very large deals and we expect many more to  follow.  In
September  2003,  Bank of America announced it was to buy FleetBoston  Financial
Corporation  for $47 bn in stock. This was followed in 2004 by the  announcement
that  JP  Morgan had agreed to acquire Bank One in a transaction valued  in  the
region  of  $60  billion to create a banking giant that  would  come  closer  to
rivalling the size of Citigroup. This combination of two of the world's  largest
banks will prompt their peers to make similar moves in 2004.

We  expect merger and acquisition activity to increase sharply across the  whole
global  Financial Services sector as world equity markets recover.  The economic
forces  driving  this  consolidation are sound and potentially  sustainable  and
should transform and concentrate the global banking market producing substantial
profits  for  investors  both  during and after  the  consolidation  phase.
These changes, which  are  taking place in the global financial markets, and
particularly in the banking  market, are truly historic and on a scale never
before seen.  We intend to exploit the restructuring of Europe's financial
markets for the benefit of shareholders.

Prospects

We would echo the sentiments expressed by the Chairman in his statement on page
6 and look forward to the future with a great deal of confidence

Unlike most other investment managers, we back our judgments with our own money.
This aligns our interests to those of our clients. Since the end of the 2003
financial year Ken Murray, the Chairman and Chief Executive of Blue Planet
Investment Management, has spent over £1,300,000 acquiring 138,000 units in the
Trusts and he expects to see a significant return on this investment over the
coming years.

Blue Planet Investment Management Ltd

27 May 2004
Statement of Total Return
(incorporating the revenue account)
for the year ended 31 March 2004

                                                   2004                       2003
                             Revenue   Capital    Total  Revenue  Capital    Total
                                  (£)      (£)      (£)      (£)      (£)      (£)

Capital
gains/(losses) on
investments
Net realised gains                 -  120,309  120,309          -   288,424   288,424

Unrealised                         -  357,507  357,507          -  (833,002) (833,002)
gains/(losses)
Exchange (loss)/                   -   (3,960)  (3,960)         -     2,013     2,013
gain
Net capital                        -  473,856  473,856          -  (542,565) (542,565)
gains/(losses) on
investments
Income from                  117,669        -  117,669    122,845         -   122,845
investments
Bank interest                  2,209        -    2,209      6,905         -     6,905
receivable

Gross revenue and            119,878  473,856  593,734    129,750  (542,565) (412,815)
capital gains/(losses)

Administrative expenses     (49,047) (14,857) (63,904)    (49,079)  (14,252)  (63,331)

Net return before             70,831  458,999  529,830     80,671  (556,817) (476,146)
interest payable
  and taxation
Interest payable            (22,505) (22,504) (45,009)    (22,446)  (22,446)  (44,892)

Return on ordinary            48,326  436,495  484,821     58,225  (579,263) (521,038)
activities before
taxation

Taxation on return on        (1,046)        -  (1,046)     (8,091)    6,535    (1,556)
ordinary activities

Return on ordinary           47,280   436,495 483,775      50,134  (572,728) (522,594)
activities after
taxation


Dividends
  Interim dividend of       (16,981)        - (16,981)    (18,406)        -  (18,406)
1.25p paid (2003 -
1.35p)
  Final dividend of         (29,208)        - (29,208)    (30,676)        -  (30,676)
2.15p (2003 - 2.25p)

                            (46,189)        - (46,189)    (49,082)        -  (49,082)

Transfer to/(from)            1,091   436,495 437,586       1,052  (572,728)(571,676)
reserves


Return per ordinary           3.48      32.08   35.56        3.65    (41.72)  (38.07)
share - basic

Return per ordinary share -   3.48      32.08   35.56        3.65    (41.72)  (38.07)
diluted



                                  Balance Sheet
                                at 31 March 2004

                                                 2004                  2003
                                      (£)         (£)        (£)        (£)
Fixed assets
Equity investments                          1,931,472               822,574
Non - equity investments                      274,336               712,732
                                            2,205,808             1,535,306

Current assets
Debtors                            44,635                 32,834
Cash at bank                      321,022                571,933
                                  365,657                604,767
Creditors: amounts falling due    (43,052)               (44,185)
within one year
Net current assets                            322,605               560,582
Total   assets  less   current              2,528,413             2,095,888
liabilities
                                              750,000               750,000
Creditors: amounts falling due
after more than one year
Net assets                                  1,778,413             1,345,888

Capital and reserves
Called-up share capital                       135,850               136,338
Share premium account                       1,168,746             1,168,609
Other reserves
        Capital   reserve    -                491,779               414,012
realized
        Capital   reserve    -               (122,048)             (475,595)
unrealized
         Capital    redemption                  8,450                 7,950
reserve
     Warrant reserve                           63,374                63,403
     Revenue reserve                           32,262                31,171
Equity shareholders' funds                  1,778,413             1,345,888

Net  asset value per  ordinary               130.91 p               98.72 p
share - basic
Net  asset value per  ordinary               125.84 p                   n/a
share - diluted




                               Cash Flow Statement
                        for the year ended 31 March 2004
                                            2004                  2003
                                 (£)        (£)        (£)        (£)
Operating activities
Investment income received                    101,730               125,859
Interest received                               2,604                 7,440
Investment    management    and               (32,432)              (32,280)
secretarial fees paid
Cash  paid to and on behalf  of                (2,923)               (2,733)
directors
Other cash payments                           (26,376)              (32,853)
Net  cash inflow from operating                42,603                65,433
activities

Servicing of finance
Interest paid                                 (44,885)              (44,891)

Taxation
Taxation recovered                                735                     -
Corporation tax paid                                -               (10,057)

Capital     expenditure     and
financial investment
Purchase of investments           (684,009)             (696,720)
Sale of investments                491,323               931,654
Net  cash (outflow)/inflow from              (192,686)              234,934
capital     expenditure     and
financial investment

Equity dividends paid                         (47,657)              (53,103)

Financing
Purchase  of  own  shares   for     (5,181)              (25,138)
cancellation
Proceeds from share issue              120                   480
Net cash outflow from financing                (5,061)              (24,658)

(Decrease)/increase in cash                  (246,951)              167,658

Notes
1.  The financial information set out in this announcement does not constitute the
Company's statutory accounts for the years ended 31 March 2004 or 2003 but is
derived from those accounts.  Statutory accounts for 2003 have been delivered to
the Registrar of Companies and those for 2004 will be delivered following the
Company's annual general meeting.  The auditors have reported on those accounts;
their reports were unqualified and did not contain a statement under s237(2) or
(3) Companies Act 1985.

2.      Return per ordinary share
                                                            2004         2003
The return per ordinary share is based upon the following figures:
Revenue return                                           £48,326      £50,134
Capital return                                          £436,495    (£572,728)
Weighted  average  of  ordinary  shares                1,360,304    1,372,946
 in  issue  during  year-basic
Weighted  average of ordinary shares                   1,360,304    1,372,946
 in issue during year-diluted

The difference between the basic and diluted number of ordinary shares is derived from
the total number of warrants in issue multiplied by a factor based on the
average price of the ordinary shares in the year and the exercise price of the
warrants, as required by FRS 14.  No dilution occurred in the current year as
the warrant exercise price exceeded the average market price of one share during
the year.  The net asset value per ordinary share is calculated on 1,358,500
being the number of ordinary shares in issue at the year end.  Net asset
dilution occurs from the potential exercise of outstanding warrants and is
assumed only to take place if the net assets per share exceeds the exercise
price of £1.