Final Results

Elderstreet  VCT plc
Final Results for the year ended 31 December 2007

FINANCIAL HIGHLIGHTS                                     2007    2006
                                                        pence   pence
Ordinary Shares
Net asset value (per share)                              81.9    76.1
Cumulative paid dividends  from launch  to 31  December  36.5    31.5
2007 (per share)
Total return (net asset value plus cumulative dividends 118.4   107.6
paid per share)
Final proposed distribution (per share) to be paid on 6   3.5     3.5
June 2008



                                                         2007    2006
                                                        pence   pence
'C' Shares
Net asset value (per share)                              90.4    98.6
Cumulative paid dividends  from launch  to 31  December   4.5     1.0
2007 (per share)
Total  return    (net   asset  value  plus   cumulative  94.9    99.6
dividends paid per share)
Final proposed dividend  (per share)  to be  paid on  6   1.5     3.5
June 2008



CHAIRMAN'S STATEMENT

The statement to shareholders by the Chairman, David Brock,  includes
the following comments:

Introduction
I am pleased to present the Annual Report for Elderstreet VCT plc for
the year ended 31 December 2007, a year which has been both busy  and
successful for your Company.

Merger
The merger  with Elderstreet  Millennium  Venture Capital  Trust  plc
("EMVCT") was completed in April 2007, when the Company  compulsorily
acquired the remaining  shares from  EMVCT Shareholders  who had  not
previously accepted the offer.

Following  the   merger,   the  investment   portfolios   have   been
successfully integrated and the Company  has started to benefit  from
the expected savings in running costs.

Directorate
There were two changes to the members of the Board during the year.
As previously reported, following the completion of the merger,  Hugh
Aldous, a  director of  EMVCT, joined  the Board  as a  non-executive
director.

On 16 October 2007, Luke Johnson decided to resign from the Board  as
a result of the demands of his other business commitments.  The Board
would like to thank Luke for his insightful and valuable contribution
since the Company's  launch in  1998 and wish  him well  in his  many
other ventures.

Net Asset Value
At 31 December 2007, the Company's Net Asset Value per Ordinary Share
("Ordinary NAV") stood at 81.9p, an increase of 10.8p or 14.2%  since
31 December 2006 (after adjusting for  the dividends of 5p per  share
paid during  the  year).    The Total  Return  to  original  Ordinary
Shareholders (Ordinary NAV plus dividends paid to date) now stands at
118.4p compared to the original cost net of income tax relief of  80p
per share.   The Total  Return to  Shareholders who  invested in  the
Ordinary Share top up  offer in March/April 2005  is 88.9p per  share
against the original  cost, net of  income tax relief,  of 41.3p  per
share.

The Net Asset Value of the Company's 'C' shares ("C Share NAV") at 31
December 2007 stood  at 90.4p, a  decrease of 4.7p  or 4.9% since  31
December 2006  (after adjusting  for the  dividends paid  during  the
year).  The Total  Return to original 'C'  Shareholders (C Share  NAV
plus dividends paid to date) stands at 94.9p compared to the original
net of income tax relief cost of 60p per share.

Venture Capital Investments
There were two major events from the Ordinary Share portfolio during
the year.  The sale of the holding in Computer Software Group plc
produced proceeds of £3,000,000 for an investment with an original
cost of £733,483.

The second major event was Snacktime plc, which floated on AIM in
December 2007.  The VCT (along with EMVCT) made an early stage
investment in Snacktime in 2003 and supported the company through
several subsequent fundraisings.  At the year end, the investment was
valued at £2.4 million against a total original cost of £1.5 million.

There were several other notable good performances over the year,
with strong trading results by Baldwin and Francis (Holdings)
Limited,  Wessex Advanced Switching Products Limited and U M
(Holdings) Limited accounting for unrealised gains of £600,000,
£513,000 and £269,000 respectively.

Overall the Ordinary Share venture capital portfolio produced net
realised gains of £541,000 and net unrealised gains of £1.3 million
for the year.

With a significantly less mature portfolio, the C Share pool did  not
perform so strongly  over the  year.  In  particular, the  AIM-quoted
investments performed poorly in the  turbulent markets in the  latter
part of  the  year.   Overall,  the  C Share  portfolio  produced  an
unrealised loss of £91,000 over the year.

Fixed interest investments
The Company continues  to hold  a small portfolio  of fixed  interest
investments which  are  managed  by  Smith  &  Williamson  Investment
Management  Limited.    During  the  year  this  portfolio   produced
unrealised  gains  for  the  Ordinary  Share  pool  of  £27,000   and
unrealised gains for the C Share pool of £11,000.

Results and Dividends
The total return on ordinary activities for the year was as follows:

                Revenue Capital Total
                  £'000   £'000 £'000
Ordinary Shares     278   2,815 3,093
'C' Shares           28   (100)  (72)
                    306   2,715 3,021


Your Board is proposing to pay the following final dividends for  the
year:

Ordinary Shares   3.5p per share
'C' Shares              1.5p per share

Subject to shareholder approval at the forthcoming Annual General
Meeting ("AGM"), both dividends will be paid on 6 June 2008 to
Shareholders on the registers at 9 May 2008.

Repurchase of Shares
The Directors are conscious that  the market in the Company's  shares
tends to be illiquid  because of the  fact that investors  purchasing
"second-hand" shares do not benefit  from income tax relief on  their
investment.

The Directors continue to monitor the market in the Company's  shares
and intend to continue to make market purchases of its own shares  at
a 10% discount to the latest published NAV when appropriate.   During
the  year  the  Company  repurchased  904,097  Ordinary  Shares   for
cancellation at an average  price of 73.1p per  share. No 'C'  Shares
were purchased during the year.

A Special Resolution to continue with this policy is proposed for the
forthcoming AGM and therefore the Board recommends Shareholders  vote
for resolution 7.

Ordinary Share issue
On 6 February 2008, the  Company announced an Offer for  Subscription
to raise up to  £10 million in  Ordinary Shares in  the Company.   No
shares had yet been issued under the Offer for Subscription as at the
date of this report.

Annual General Meeting
The next AGM of the Company will be held at 32 Bedford Row, London
WC1R 4HE at 11:00 am on 4 June 2008.

One item of Special Business is proposed to authorise the Company to
make market purchases of its shares.

Outlook
Investing in young and small  businesses, often leads to a  situation
where poorer investments are exposed early and the better investments
take several years to produce results.  The Company's Ordinary  Share
portfolio now has a number of investments which have matured well and
their  performance  has   driven  the  uplift   in  NAV  from   which
Shareholders have  benefited  this year.    Although we  may  now  be
entering  a   more  difficult   economic  climate,   the  number   of
well-developed businesses within the Ordinary share portfolio  should
provide some resilience.  Indeed, since the year end, the Company has
realised its  investment  in  U  Mole  (Holdings)  Limited  producing
proceeds of approximately  £500,000 over  the carrying  value at  the
year end (equivalent to 2.5p per Ordinary Share).

As set out  in the 'C'  Share prospectus, on  or before 30  September
2008, it is the Board's intention  to have returned at least 30p  per
share to C Shareholders.  The Board  expect to do this by means of  a
special dividend to C Shareholders in the second half of the  current
year.  Following the payment  of the special dividend, the  Directors
will consider plans to convert the 'C' Shares into Ordinary Shares to
create one  larger pool  and  provide a  little more  flexibility  in
investing activities.  I shall update Shareholders on these plans  in
my statement with the Half-Yearly Financial Report to 30 June 2008.

PORTFOLIO OF INVESTMENTS

The following  investments  were  held  at 31  December  2007.    All
companies are registered in England and Wales, with the exception  of
Component Source  Inc,  which  is registered  the  United  States  of
America:

                                                Valuation        % of
                                              movement in   portfolio
                           Cost   Valuation          year    by value
ORDINARY SHARE POOL       £'000       £'000         £'000           %
Top ten venture
capital investments
(by value)
Snacktime plc *           1,500       2,428           928       14.8%
Wessex Advanced              56       1,796           513       10.9%
Switching Products
Limited
Baldwin   &    Francis      690       1,320           600        8.0%
(Holdings) Limited
Oldbury      Aluminium    1,275       1,275             -        7.6%
Alloys Group Limited
UM (Holdings) Limited        54         915           269        5.5%
Lyalvale       Express      915         915             -        5.5%
Limited
Smart Education             913         542          (93)        3.3%
Limited
Fords Packaging              83         542         (125)        3.3%
Systems Limited
Wecomm Limited              500         500             -        3.1%
Interquest Group plc *      251         387             -        2.4%
                          6,237      10,620         2,092       64.4%
Other venture  capital
investments
The    Engine    Group      250         375           126        2.3%
Limited
Halifax Industrial          332         320          (11)        2.0%
Limited
Mears    Group     plc      264         260             4        1.6%
(formerly Careforce)*
AngloINFO Limited           245         245             -        1.5%
Mediasurface plc *          708         213         (626)        1.3%
Berkeley  Scott  Group      657         196          (35)        1.2%
plc *
Sift Limited                250         188             -        1.1%
The QSS Group Limited       269         170          (98)        1.0%
The           National      900         150         (125)        0.9%
Solicitors     Network
Limited
Servoca plc *                90         144            54        0.9%
Rosebowl plc                187         125             -        0.8%
Expansys plc *              202         106            44        0.7%
Melorio plc *               100         105             5        0.7%
NorthWest    Transport      101         100             -        0.6%
Supplies Limited
Veterinary    Practise      100         100             -        0.6%
Initiatives Limited
Infoserve plc *              90          34          (56)        0.2%
Cashfac     Initiative      260          33             -        0.2%
Limited
SparesFinder Limited        103          12             -        0.1%
Lanchon       Holdings        5           5             -           -
Limited
Business Meetings  ASP       12           -             -           -
Limited
Component Source Inc        250           -             -           -
Shopcreator Limited         375           -             -           -
                          5,750       2,881         (718)       17.7%

Total venture  capital   11,987      13,501         1,374       82.1%
investments

Listed  fixed   income
securities
Treasury 5% 2008          1,469       1,470             6        8.9%
Treasury 4% 2009            970         987            21        6.0%
Nucleus Cash Trust          146         146             -        0.9%
                          2,585       2,603            27       15.8%

Total      investments   14,572      16,104         1,401       97.9%
before  cash  at  bank
and in hand

Cash at  bank  and  in                  354                      2.1%
hand
Total investments                    16,458                    100.0%





                                                Valuation        % of
                                              movement in   portfolio
                           Cost   Valuation          year    by value
'C' SHARE POOL            £'000       £'000         £'000           %

Top ten venture capital
investments (by value)
Interquest Group plc *      100         155             -       11.2%
Snacktime plc *             125         115          (10)        8.3%
Melorio plc *               100         105             5        7.6%
Oldbury       Aluminium     100         100             -        7.2%
Alloys Group Limited
Wecomm Limited              100         100             -        7.2%
Servoca plc *                60          96            36        6.9%
AngloINFO Limited            78          78             -        5.7%
Smart Education Limited     139          61           (9)        4.3%
Media Surface plc *          80          26          (76)        1.9%
Infoserve plc *              60          23          (37)        1.7%
                            942         859          (91)       62.0%

Other  venture  capital
investments
Lanchon        Holdings       2           2             -        0.1%
Limited

Total  venture  capital     944         861          (91)       62.1%
investments

Listed   fixed   income
securities
Treasury 4% 2009            486         497            11       35.9%

Total       investments   1,430       1,358          (80)       98.0%
before cash at bank and
in hand

Cash  at  bank  and  in                  27                      2.0%
hand
Total investments                     1,385                    100.0%


All venture capital investments are unquoted unless otherwise stated

* Quoted on AIM

INCOME STATEMENT
for the year ended 31 December 2007
Company position

                          Year ended 31 December      Year ended 31 December
                                   2007                        2006

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

Income - Continuing         455         -      455       373         -     373
       operations
       -                    199                199
       Acquisitions

Gains on
investments
- Continuing                  -     1,330    1,330         -     2,015   2,015
operations
- Acquisitions                -     1,582    1,582
                            654     2,912    3,566       373     2,015   2,388


Investment                 (85)     (254)    (339)      (48)     (143)   (191)
management fees

Other expenses            (206)         -    (206)     (186)         -   (186)

Return on ordinary
activities before           363     2,658    3,021       139     1,872   2,011
tax

Tax on ordinary            (57)        57        -       (4)         4       -
activities

Return attributable
to equity                   306     2,715    3,021       135     1,876   2,011
shareholders

Return per Ordinary        1.4p     14.3p    15.7p      0.7p     12.1p   12.8p
share

Return per 'C'             1.8p    (6.5p)   (4.7p)      1.7p      3.8p    5.5p
share


Split as:
Ordinary shares

                        Year ended 31 December      Year ended 31 December
                                 2007                        2006

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

Income    - Continuing     392         -     392       311         -     311
          operations
          -                199         -     199
          Acquisitions

Gains on
investments
- Continuing                 -     1,410   1,410         -     1,942   1,942
operations
- Acquisitions                     1,582   1,582         -         -       -
                           591     2,992   3,583       311     1,942   2,253

Investment                (76)     (229)   (305)      (42)     (124)   (166)
management fees
Other expenses           (185)         -   (185)     (160)         -   (160)

Return on ordinary
activities before          330     2,763   3,093       109     1,818   1,927
tax

Tax on ordinary           (52)        52       -         -         -       -
activities

Return
attributable to            278     2,815   3,093       109     1,818   1,927
equity
shareholders


'C' Ordinary shares

                  Year ended 31 December      Year ended 31 December
                           2007                        2006

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

Income                63         -      63        62         -      62

(Losses)/gains         -      (80)    (80)         -        73      73
on investments
                      63      (80)    (17)        62        73     135

Investment           (9)      (25)    (34)       (6)      (19)    (25)
management
fees
Other expenses      (21)         -    (21)      (26)         -    (26)

Return on
ordinary              33     (105)    (72)        30        54      84
activities
before tax

Tax on               (5)         5       -       (4)         4       -
ordinary
activities

(Loss)/return
attributable          28     (100)    (72)        26        58      84
to equity
shareholders


A Statement of  Total Recognised  Gains and Losses  relating to  each
class of share  has not  been prepared as  all gains  and losses  are
recognised in the relevant Income Statements.

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
for the year ended 31 December 2007

                        Year ended                    Year ended
                     31 December 2007                         31
                                              December
                                              2006
                Ordinary      'C'             Ordinary      'C'
                  shares   shares     Total     shares   shares    Total
                   £'000    £'000     £'000      £'000    £'000    £'000

Opening           11,401    1,521    12,922      9,180    1,452   10,632
shareholders'
funds
Issue of           3,782        -     3,782        966        -      966
shares
Share issue            -        -         -       (53)        -     (53)
costs
Purchase of        (665)        -     (665)      (310)        -    (310)
own shares
Total              3,093     (72)     3,021      1,927       84    2,011
recognised
gains for the
year
Dividends        (1,038)     (54)   (1,092)      (309)     (15)    (324)

Closing           16,573    1,395    17,968     11,401    1,521   12,922
shareholders'
funds



BALANCE SHEET
at 31 December 2007

                       Year ended                    Year ended
                    31 December 2007              31 December 2006
                Ordinary      'C'             Ordinary      'C'
                  shares   shares     Total     shares   shares    Total
                   £'000    £'000     £'000      £'000    £'000    £'000

Fixed assets
Investments       16,104    1,358    17,462      9,984      470   10,454

Current
assets
Investments        5,110        -     5,110          -        -        -
Debtors              154       14       168        307       98      405
Cash at bank         354       27       381      1,256      958    2,214
and in hand
                   5,618       41     5,659      1,563    1,056    2,619

Creditors:       (5,149)      (4)   (5,153)      (146)      (5)    (151)
amounts
falling due
within one
year

Net current          469       37       506      1,417    1,051    2,468
assets

Net assets        16,573    1,395    17,968     11,401    1,521   12,922

Capital and
reserves
Called up          1,011       77     1,088        749       77      826
share capital
Capital              124        -       124         79        -       79
redemption
reserve
Merger             3,475        -     3,475
reserve
Share premium        842    1,388     2,230        842    1,388    2,230
Special            4,563        -     4,563      5,967        -    5,967
reserve
Capital            2,581     (72)     2,509      1,605        8    1,613
reserve -
unrealised
Capital            3,659     (10)     3,649      1,963       10    1,973
reserve -
realised
Revenue              318       12       330        196       38      234
reserve

Equity            16,573    1,395    17,968     11,401    1,521   12,922
shareholder's
funds

Net asset          81.9p    90.4p                76.1p    98.6p
value per
share


CASH FLOW STATEMENT
for year ended 31 December 2007

                            Year ended                   Year ended
                         31 December 2007             31 December 2006
                    Ordinary      'C'             Ordinary      'C'
                      shares   Shares     Total     shares   Shares   Total
                       £'000    £'000     £'000      £'000    £'000   £'000

Net cash                  53      (5)        48       (82)       11    (71)
(outflow)/inflow
from operating
activities

Capital expenditure
Purchase of          (3,147)    (967)   (4,114)      (660)    (224)   (884)
investments
Sale of investments    3,837       95     3,932      1,456        -   1,456
Net cash                 690    (872)     (182)        796    (224)     572
inflow/(outflow)
from capital
expenditure

Acquisitions
Purchase of            (225)        -     (225)          -        -       -
subsidiary
undertaking
Cash acquired from       369        -       369          -        -       -
subsidiary
undertaking
                         144        -       144          -        -       -

Equity dividends     (1,038)     (54)   (1,092)      (309)     (15)   (324)
paid

Net cash               (151)    (931)   (1,082)        405    (228)     177
(outflow)/inflow
before financing

Financing
Proceeds from share        -        -         -        966        -     966
issue
Share issue costs        (6)        -       (6)       (50)        -    (50)
Purchase of own        (745)        -     (745)      (231)        -   (231)
shares
Net cash               (751)        -     (751)        685        -     685
inflow/(outflow)
from financing

(Decrease)/increase    (902)    (931)   (1,833)      1,090    (228)     862
in cash



NOTES

1.      Accounting policies

Basis of accounting
The Company has prepared its financial statements under UK  Generally
Accepted Accounting Practice ("UK GAAP")  and in accordance with  the
Statement of Recommended Practice "Financial Statements of Investment
Trust Companies" revised December 2005 ("SORP").

The financial  statements  are  prepared under  the  historical  cost
convention as  modified  by  the  revaluation  of  certain  financial
instruments and on the  basis that it is  not appropriate to  prepare
consolidated accounts.

Presentation of Income Statement
In order to better reflect the activities of a Venture Capital  Trust
and  in  accordance  with  guidance  issued  by  the  Association  of
Investment  Companies   ("AIC"),  supplementary   information   which
analyses the income statement between items of a revenue and  capital
nature has been  presented alongside  the income  statement. The  net
revenue is the measure the Directors believe appropriate in assessing
the Company's compliance with certain requirements set out in Part  6
of the Income Tax Act 2007.

Investments
All investments are designated as "fair value through profit or loss"
assets and are initially measured  at cost, equivalent to their  fair
value.    Thereafter  the  investments  are  measured  at  subsequent
reporting dates at fair value.

Listed fixed income  investments and  investments quoted  on AIM  are
measured using  bid  prices  in  accordance  with  the  International
Private Equity and Valuation Guidelines.

In respect  of unquoted  instruments, fair  value is  established  by
using International  Private  Equity and  Venture  Capital  Valuation
Guidelines. Where no reliable  fair value can  be estimated for  such
unquoted equity investments they are carried at cost, subject to  any
provision for impairment.  Where an  investee company  has gone  into
receivership or liquidation the  investment, although not  physically
disposed of, the loss is treated as being realised.

Gains and losses arising from changes  in fair value are included  in
the income statement for the year  as a capital item and  transaction
costs on acquisition or disposal of the investment expensed.

It is  not the  Company's policy  to exercise  either significant  or
controlling influence over investee companies.  Therefore the results
of these  companies are  not incorporated  into the  revenue  account
except to the extent of any income accrued.

Income
Dividend income from investments is recognised when the shareholders'
rights to  receive  payment has  been  established, normally  the  ex
dividend date.

Interest income is  accrued on a  timely basis, by  reference to  the
principal outstanding and at  the effective interest rate  applicable
and only where there is reasonable certainty of collection.

Expenses
All expenses are accounted  for on an accruals  basis. In respect  of
the analysis between revenue and  capital items presented within  the
income statement, all expenses have  been presented as revenue  items
except as follows:

*        Expenses which are incidental to the disposal of an
  investment are deducted from the disposal proceeds of the
  investment.

*        Expenses are split and presented partly as capital items
  where a connection with the maintenance or enhancement of the value
  of the investments held can be demonstrated and accordingly the
  investment management fee and finance costs have been allocated 25%
  to revenue and 75% to capital, in order to reflect the directors
  expected long-term view of the nature of the investment returns of
  the Company.

Taxation
The tax  effects  on different  items  in the  Income  Statement  are
allocated between  capital  and revenue  on  the same  basis  as  the
particular item to  which they relate  using the Company's  effective
rate of tax for the accounting period.

Due to  the Company's  status  as a  Venture  Capital Trust  and  the
continued intention to  meet the conditions  required to comply  with
Part 6  of the  Income Tax  Act 2007,  no provision  for taxation  is
required in respect of any realised or unrealised appreciation of the
Company's investments which arises.

Deferred taxation  is provided  in full  on timing  differences  that
result in an obligation at the balance sheet date to pay more tax, or
a right to pay less tax, at a future date, at rates expected to apply
when they  crystallise based  on current  tax rates  and law.  Timing
differences  arise  from  the  inclusion  of  items  of  income   and
expenditure in taxation computations in periods different from  those
in which they are included in the accounts.

Issue Costs
Issue costs in relation  to the shares issued  are deducted from  the
respective share premium account.

2.       Return per share


                                        Ordinary Shares    'C' Shares
Revenue return per share based on:
Net revenue after taxation (£'000)                  278            28

Weighted average number of ordinary          19,718,057     1,542,202
shares in issue

Capital return/(loss) per share based
on:
Net capital gain for the financial year           2,815         (100)
(£'000)

Weighted average number of ordinary          19,718,057     1,542,202
shares in issue


3        Net asset value per share

                                              2007               2006
                        Shares in  Net asset value    Net asset value
                            Issue
                                    pence              pence
                                      per                per
                  2007       2006   share    £'000     share    £'000

Ordinary    20,227,504 14,981,819    81.9   16,573      76.1   11,401
shares
'C' shares   1,542,202  1,542,202    90.4    1,395      98.6    1,521
                                            17,968             12,922



Announcement based on audited accounts
The financial  information  set  out in  the  announcement  does  not
constitute the Company's statutory financial statements in accordance
with section 240 Companies  Act 1985 for the  year ended 31  December
2007. The statutory accounts for the year ended 31 December 2006 have
been  delivered  to  the  Registrar  of  Companies  and  received  an
Independent Auditors report which was unqualified and did not contain
any emphasis of  matter nor statements  under S237(2) or  (3) of  the
Companies Act 1985.   The statutory  accounts for the  year ended  31
December 2007, which  were approved by  the Board of  Directors on  3
April 2009, will be delivered to the Registrar of Companies following
the Company's  Annual General  Meeting.   The  Independent  Auditor's
Report on  those financial  statements was  unqualified and  did  not
contain any emphasis of matter nor statements under s237 (2) and  (3)
of the Companies Act 1985.

A copy of  the full annual  report and financial  statements for  the
year  ended  31  December  2007   will  be  printed  and  posted   to
shareholders. Copies  will also  be available  to the  public at  the
registered office  of  the  Company  at  Kings  Scholars  House,  230
Vauxhall Bridge  Road, London  SW1V  1AU and  will be  available  for
download from www.downing.co.uk.

---END OF MESSAGE---