Half Yearly Report

RNS Number : 0688W

Oryx International Growth Fund Ld

11 November 2010

FOR IMMEDIATE RELEASE

RELEASED BY BNP PARIBAS FUND SERVICES (GUERNSEY) LIMITED

HALF YEARLY RESULTS ANNOUNCEMENT

THE BOARD OF DIRECTORS OF ORYX INTERNATIONAL GROWTH FUND LIMITED ANNOUNCE UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2010

CHAIRMAN'S STATEMENT

I am pleased to report a further rise in the Net Asset Value per share of 11.3% to 247p in the six months to 30^th September 2010, which reflects an out performance against our benchmark the small cap indices of slightly in excess of 8%.

As has been highlighted in the past, the investment style of North Atlantic concentrates on identifying value in target companies and then devising a strategy for unlocking that value. This is an iterative process and positive developments continue to be made across a number of our investments. However, the economic background continues to be challenging, with both the capital and credit markets highly restrictive. This makes progress slower than we would have hoped and, as I stated in the annual report, realising the full value of some of our investments will take time.

As realisations occur, it is also important that North Atlantic continues to identify new investment opportunities. I am pleased to report that good progress continues to be made on this front.

In line with our stated policy, no dividend will be paid for the period.

Nigel Cayzer

Chairman

11 November 2010

INVESTMENT ADVISER'S REPORT

During the six month period under review the Net Asset Value per share rose by 11.3% which compares favourably with a fall in the FTSE Index of 2.3% and a rise in the Small Cap Index of 3.2%.

Quoted equities:

The outstanding performer during the period was undoubtedly Castle Support Services which rose by 50% following an offer from Sulzer. RPC also rose nearly 20% following better than expected figures; Tenon prior to the sale of our holding by 15% and Quarto again following good figures by 33%. Inspired Gaming also rose nearly 20% following a takeover.

Unquoted:

The carrying value of Nastor/Celsis was written up during the period, reflecting a third party transaction, whilst the Avanti loan note was repaid at par plus accrued.

Outlook:

The second half of the year has started well with a bid approach for Chrysalis and the remainder of the portfolio appears to be performing satisfactorily.

The principal concern is that stock market liquidity in smaller companies is very limited, making it difficult to acquire or sell meaningful quantities of shares.

The unquoted portfolio continues to perform well and could create substantial value over the next couple of years.

We therefore expect to build further on the good performance of the first half and look forward to the future with confidence.

North Atlantic Value LLP

11 November 2010

TEN LARGEST EQUITY HOLDINGS

as at 30 September 2010

RPC Group Plc

Cost £2.85m (1,250,000 shares)

Market value £3.69m representing 7.24% of Net Asset Value

RPC is the largest company plastic packaging company in Europe. A new chairman has restructured the business and we believe this will lead to a significant improvement in profitability over the next few years.

Chrysalis Group Plc

Cost £3.50m (3,500,000 shares)

Market value £3.50m representing 6.88% of Net Asset Value

Chrysalis Group's principal asset is a substantial music library which is believed to be worth significantly above the current share price. The company has recently announced it is in discussions to be acquired.

BBA Aviation plc

Cost £3.94m (1,500,000 shares)

Market value £2.83m representing 5.55% of Net Asset Value

BBA Aviation's principal business is Signature which is the leading provider of aviation support facilities for private jets throughout the world. The company has modest debt and is seeing good growth as the US in particular emerges from recession.

Catalyst Media Group Plc

Cost £1.44m (3,125,000 shares)

Market value £2.66m representing 5.22% of Net Asset Value

Catalyst Media Group's principal asset is a 21% stake in SIS the leading provider of data and racing programmes to the bookmaking industry. The company has recently announced that it is seeking to be acquired.

Orthoproducts Limited

Cost £1.21m (319 shares)

Market value £2.55m representing 5.01% of Net Asset Value

Orthoplastics is one of two companies in the world capable of manufacturing advanced plastic materials for the orthopedics industry. In addition the company is successful in rapidly growing plastic components for the same industry.

Gleeson (M.J.) Group Plc

Cost £5.71m (2,251,902 shares)

Market value £2.52m representing 4.95% of Net Asset Value

Gleeson is a small builder with operations in the Midlands and North of England. The company has no debt and was modestly profitable for the twelve months ended June 2010. Our estimated private market value of the business is over 50% higher than the current share price.

Quarto Group Inc

Cost £2.47m (2,050,000 shares)

Market value £2.36m representing 4.63% of Net Asset Value

Quarto is the world's largest publisher of 'coffee table' books, but also has more traditional publishing operations. Recent results have been good and the share price has responded favourably.

Bavaria Industriekapital AG

Cost £1.79 (198,350 shares)

Market value £2.26m representing 4.44% of Net Asset Value

Bavaria Industriekapital AG is a small German industrial conglomerate. The company has no debt and trades on a modest price earnings ratio. The stock is very illiquid and the holding was reduced over the period.

Idox Plc

Cost £2.03m (18,019,522 shares)

Market value £2.07m representing 4.07% of Net Asset Value

Idox is a specialist software company servicing local authorities. The company has no debt and substantial cash balances. The private market value is believed to be significantly above the current share price.

Augean Plc

Cost £4.50m (6,575,284 shares)

Market value £1.84m representing 3.62% of Net Asset Value

Augean is the UK's largest hazardous waste landfill company. The company has little debt and generates substantial cashflow.

DIRECTORS' RESPONSIBILITY STATEMENT

The Directors confirm to the best of their knowledge that:

· The half-yearly accounts, which have been prepared in accordance with International Financial Reporting Standards, give a true and fair view of the assets, liabilities, financial position and profit of the Company and the undertakings included in the consolidation taken as a whole as required by DTR 4.2.4R ;

· the Interim Management Report and Investment Adviser's Report include a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

· the Interim Management Report includes a fair review of the information required by DTR 4.2.8R (disclosure of related party transactions and changes therein).

By order of the Board

Walid Chatila Rupert Evans

Director Director

11 November 2010 11 November 2010

INTERIM MANAGEMENT REPORT

Review of Business

A summary of the performance of the Group and future outlook is provided in the Investment Adviser's report on page 5.

Dividend

The Directors do not propose payment of a dividend (30 September 2009 - Nil, 31 March 2010 - Nil).

Capital values

At 30 September 2010 the value of the assets available to shareholders was £50.9m (30 September 2009 - £49.2m, 31 March 2010 - £50.0m) and the Net Asset Value per share was £2.47 (30 September 2009 - £2.16, 31 March 2010 - £2.22).

Related party transactions

Related party transactions are disclosed in note 8 to the condensed financial statements.

Risks and uncertainties

The main risks arising from the Group's financial instruments are:

(i) market risk, including currency risk, interest rate risk and other price risk;

(ii) liquidity risk; and

(iii) credit risk

The Company Secretary, in close cooperation with the Board of Directors and the Investment Manager, coordinates the Group's risk management. The policies for managing each of these risks are summarised below and have been applied throughout the period.

(i) Market risk

The fair value or future cash flows of a financial instrument held by the Group may fluctuate because of changes in market prices. This market risk comprises currency risk, interest rate risk and other price risk. The Board of Directors reviews and agrees policies for managing these risks, which policies have remained substantially unchanged from those applying in the year ended 31 March 2010. The Investment Manager assesses the exposure to market risk when making each investment decision and monitors the overall level of market risk on the whole of the investment portfolio on an ongoing basis.

Currency risk

The functional and presentational currency of the Group is Sterling and, therefore, the Group's principal exposure to foreign currency risk comprises investments priced in other currencies, principally US Dollars. The Investment Manager monitors the Group's exposure to foreign currencies and reports to the board on a regular basis. The Investment Manager measures the risk to the Group of the foreign currency exposure by considering the effect on the net asset value and income of a movement in the rates of exchange to which the Group's assets, liabilities, income and expenses are exposed.

Income denominated in foreign currencies is converted to Sterling on receipt.

The Group's financial assets comprise fixed and equity investments, trade receivables and cash balances.

The Group finances its investment activities through the Group's Ordinary Share capital and reserves. The Group's financial liabilities comprise trade payables.

Interest rate risk

Interest rate movements may affect:

· the fair value of the investments in fixed rate securities;

· the level of income receivable on cash deposits.

The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account when making investment decisions. The Board reviews on a regular basis the values of the unquoted loans to companies in which private equity investment is made. Interest rate risk is not significant to the Group.

Other price risk

Other price risks (i.e. changes in market prices other than those arising from currency risk or interest rate risk) may affect the value of investments.

The Group's exposure to price risk comprises mainly movements in the value of the Group's investments.

The Board of Directors manages the market price risks inherent in the investment portfolios by ensuring full and timely access to relevant investment information from the Investment Manager. The Board meets regularly and at each meeting reviews investment performance. The Board monitors the Investment Manager's compliance with the Group's objectives and is directly responsible for investment strategy and asset allocation.

(ii) Liquidity risk

This is the risk that the Group will encounter difficulty in meeting obligations associated with financial liabilities.

Liquidity risk is significant as the Group invests in unlisted equities and other investments that may not be readily realisable.

In accordance with the Group's policy, the Investment Manager monitors the Company's liquidity risk, and the Board of Directors reviews it.

(iii) Credit risk

The Group does not have any significant exposure to credit risk arising from any one individual party. Credit risk is spread across a number of counterparties, each having an immaterial effect on the Group's cash flows, should a default happen.

By order of the Board

Walid Chatila Rupert Evans

Director Director

11 November 2010 11 November 2010

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the six months ended 30 September 2010, expressed in £ sterling

		Six months ended 30 September	Six months ended 30 September	Year ended 31 March
		2010	2009	2010
	Notes	£	£	£
Income	2 (a)
Interest		27,447	197,239	451,310
Dividends and investment income		1,165,746	1,179,003	1,766,236

		1,193,193	1,376,242	2,217,546

Realised losses on investments	2 (g)	(2,339,640)	(1,034,886)	(1,480,675)
Unrealised gain on revaluation of investments	2 (g)	6,075,383	11,375,113	13,432,513
Gain/(loss) on foreign currency translation	2 (f)	626	(12,492)	(18,297)

Income from investments		4,929,562	11,703,977	14,151,087

Expenses	2 (j)
Management and Investment Adviser's fee		273,578	253,032	523,255
Custodian fees		7,335	9,962	17,894
Administration fees		26,579	25,226	51,496
Registrar and transfer agent fees		5,422	10,822	14,763
Transaction costs		31,468	51,644	132,580
Directors' fees and expenses		93,736	92,352	132,580
Audit fees		24,082	12,534	36,500
Insurance		4,401	5,264	10,500
Legal and professional fees		120,942	143,179	225,544
Other expenses		12,783	23,938	492,593

Total expenses		600,326	627,953	1,637,705

Net income for the period / year before taxation		4,329,236	11,076,024	12,513,382
Withholding tax on dividends		122,492	222,358	275,063
Net income for the period / year		4,206,744	10,853,666	12,238,319


Earnings per share - basic and diluted	7	£0.20	£0.47	£0.54

All items in the above statement are derived from continuing operations.

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 September 2010, expressed in £ sterling

		30 September 2010	30 September 2009	31 March 2010
	Notes	£	£	£

Non-current assets
Investments designated at fair value through profit or loss		41,726,203	44,617,393	51,162,498

Current assets
Other receivables	2 (c)	80,748	88,812	102,333
Dividends and interest receivable		171,225	207,557	173,230
Amounts due from brokers		22,455	153,332	12,687
Cash and cash equivalents	2 (d)	9,343,390	5,469,891	195,000

		9,617,818	5,919,592	483,250
Total assets		51,344,021	50,536,985	51,645,748

Current liabilities
Overdraft		-	-	1,116,352
Amounts due to brokers		66,440	959,415	34,632
Creditors and accrued expenses	2 (e)	372,010	327,665	456,761

		438,450	1,287,080	1,607,745
Net assets		50,905,571	49,249,905	50,038,003

Shareholders' equity
Called up share capital	3	10,314,310	11,422,913	11,252,912
Share premium	3	42,696,509	42,696,509	42,696,509
Capital redemption reserve		1,246,500	1,246,500	1,246,500
Other reserves	4	(3,351,748)	(6,116,017)	(5,157,918)

Total equity shareholders' funds		50,905,571	49,249,905	50,038,003

Net Asset Value per Share - basic and diluted	7	£2.47	£2.16	£2.22

This interim report was approved by the Board of Directors on 11 November 2010 and signed on its behalf by:

Walid Chatila Rupert Evans

Director Director

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months ended 30 September 2010, expressed in £ sterling

	Share capital	Share premium	Capital redemption reserve	Other reserves	Total
	£	£	£	£	£

Balance at 1 April 2010	11,252,912	42,696,509	1,246,500	(5,157,918)	50,038,003

Total comprehensive income for the period	-	-	-	4,206,744	4,206,744

Transactions with owners, recorded directly in equity
Contributions, redemptions and distributions to shareholders
· Cancellation of shares	(938,602)	-	-	(2,400,574)	(3,339,176)

Total transaction with owners	(938,602)	-	-	(2,405,574)	(3,339,176)

Balance at 30 September 2010	10,314,310	42,696,509	1,246,500	(3,351,748)	50,905,571

	Share capital	Share premium	Capital redemption reserve	Other reserves	Total
	£	£	£	£	£

Balance at 1 April 2009	11,888,325	42,696,509	1,246,500	(16,066,313)	39,765,021

Total comprehensive income for the year	-	-	-	12,238,319	12,238,319

Transactions with owners, recorded directly in equity
Contributions, redemptions and distributions to shareholders
· Cancellation of shares	(635,413)	-	-	(1,329,924)	(1,965,337)

Total transaction with owners	(635,413)	-	-	(1,329,924)	(1,965,337)

Balance at 31 March 2010	11,252,912	42,696,509	1,246,500	(5,157,918)	50,038,003

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

for the six months ended 30 September 2010, expressed in £ sterling

		Six months ended	Six months ended	Year ended
		30 September 2010	30 September 2009	31 March 2010
	Notes	£	£	£

Net cash inflow from operating activities	5	13,603,292	5,945,068	156,185

Financing Activities
Cancellation of shares		(3,339,176)	(1,368,782)	(1,965,337)
Bank overdraft		(1,116,352)	-	1,116,352
Cash flow from financing activities		(4,455,528)	(1,368,782)	(848,985)

Net increase / (decrease) in cash and cash equivalents		9,147,764	4,576,286	(692,800)

Cash and cash equivalents at beginning of period / year		195,000	906,097	906,097
Exchange movements		626	(12,492)	(18,297)

Cash and cash equivalents at end of period / year		9,343,390	5,469,891	195,000

NOTES TO THE CONDENSED SET OF CONSOLIDATED FINANCIAL STATEMENTS

a) General

Oryx International Growth Fund limited (the "Company") was incorporated in Guernsey on 2 December 1994 and commenced activities on 3 March 1995.

The Company is a Guernsey Authorised Closed-Ended Investment Scheme and is subject to the Authorised Closed-Ended Investment Scheme Rules 2008.

The investment activities of the Company are managed by North Atlantic Value LLP ('the Investment Manager') and the administration of the Company is delegated to BNP Paribas Fund Services (Guernsey) Limited ('the Administrator').

2. Accounting Policies

Basis of Preparation

The financial statements of the Company are prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and International Accounting Standards and Standing Interpretations Committee interpretations approved by the International Accounting Standards Committee ("IASC") that remain in effect, together with applicable legal and regulatory requirements of Guernsey Law. The condensed set of financial statements included in this half-yearly financial report are unaudited and have been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting. The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statements as applied in the Company's latest annual audited financial statements.

The financial statements have been prepared on the historical cost basis except for the inclusion at fair value of certain financial instruments. The principal accounting policies are set out below. The preparation of financial statements in conformity with International Financial Reporting Standards requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. It also requires the Board of Directors to exercise its judgement in the process of applying the Company's accounting policies.

Adoption of new standards

The following new standards came into force for periods commencing 1 April 2010.

IFRS 8 Operating Segments (revised April 2009)

IAS 1 Presentation of Financial Instruments (revised April 2009)

IAS 7 Statements of Cash Flows (revised April 2009)

IAS 32 Financial Instruments: Presentation (revised 2009)

IAS 36 Impairment of Assets (revised April 2009)

IAS 39 Financial Instruments: Recognition and measurement (revised April 2009)

The adoption of these standards did not have a material impact on the financial statements of the Company.

The Directors believe that other pronouncements which are in issue but not yet operative or adopted by the Company will not have a material impact on the financial statements of the Company.

Going Concern

The Directors believe it is appropriate to adopt the going concern basis in preparing the financial statements as, after due consideration, the Directors consider that the Group has adequate resources to continue in operational existence for the foreseeable future.

a) Income recognition

Dividend income is recognised when the right to receive income is established. Usually this is the ex-dividend date for equity securities. Deposit interest is accrued on a day-to-day basis. Loan interest is accounted for using the effective interest method. All income is shown gross of any applicable withholding tax.

b) Investments

Classification

All investments of the Company, together with its subsidiaries ('the Group'), are designated into the financial assets at fair value through profit or loss category. The investments are purchased mainly for their capital growth and the portfolio is managed, and performance evaluated, on a fair value basis in accordance with the Group's documented investment strategy. Therefore the Directors consider that this is the most appropriate classification.

This category comprises financial instruments designated at fair value though profit or loss upon initial recognition - these include financial assets that are not held for trading purposes and which may be sold. These are principally investments in listed and unlisted equities.

Measurement

Financial instruments are measured initially at fair value being the transaction price. Subsequent to initial recognition, all instruments classified as fair value through profit or loss are measured at fair value with changes in their fair value recognised in the Statement of Comprehensive Income. Transaction costs are separately disclosed in the Statement of Comprehensive Income.

Financial instruments are measured initially at fair value being the transaction price. Subsequent to initial recognition on trade date, all instruments classified as fair value through profit or loss are measured at fair value with changes in their fair value recognised in the Statement of Comprehensive Income. Transaction costs are separately disclosed in the Statement of Comprehensive Income.

Listed investments have been valued at the bid market price ruling at the Statement of Financial Position date. In the absence of the bid market price, the closing price has been taken, or, in either case, if the market is closed on the Statement of Financial Position date, the bid market or closing price on the preceding business day.

Unlisted investments are valued in accordance with the International Private Equity and Venture Capital Association (IPEVCA) guidelines. Their valuation includes all factors that market participants would consider in setting a price. The primary valuation techniques employed to value the unlisted investments are earnings multiples, recent transactions and the net asset basis. Cost is considered appropriate for early stage investments. The relevance of this methodology can be eroded over time and in these cases the carrying values will be adjusted to reflect fair value.

For certain of the Group's financial instruments, including cash and cash equivalents, interest and dividends and interest receivable and amounts due to and from broker, the carrying amounts approximate fair value due to their immediate or short-term maturity.

Derecognition of financial assets occur when the rights to receive cash flows from financial instruments expire or are transferred and substantially all of the risks and rewards of ownership have been transferred.

Fair value measurement should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering market participant assumptions, IFRS 7 establishes a fair value hierarchy that gives the highest priority to unadjusted quoted prices in active markets (Level 1) and lowest priority to unobservable inputs (Level 3). The three levels of the value hierarchy are as follows.

Level 1: Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date;

Level 2: Inputs reflect quoted prices of similar assets and liabilities in active markets and quoted prices of identical assets and liabilities in markets that are considered to be inactive, as well as inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and

Level 3: Inputs that are unobservable for the asset or liability and reflect the Investment Manager's own assumptions in accordance with the accounting policies disclosed within note 2 to the financial statements.

b) Other receivables

Other receivables do not carry any interest and are short term in nature and are accordingly stated at their amortised cost as reduced by appropriate allowances for impairment.

c) Cash and cash equivalents

Cash and cash equivalents consist of cash in hand and short term deposits in banks with original maturities of less than three months.

d) Other accruals and payables

Other accruals and payables are not interest bearing and are stated at their amortised cost.

e) Foreign currency translation

Items included in the Group's financial statements are measured using the currency of the primary economic environment in which it operates (the "functional currency"). This is the pound sterling which reflects the Group's primary activity of investing in sterling securities. The Group's shares are also issued in sterling.

Foreign currency assets and liabilities have been translated at the exchange rates ruling at the Balance Sheet date. Transactions in foreign currency during the period have been translated into pounds sterling at the spot exchange rate in effect at the date of the transaction. Realised and unrealised gains and losses on currency translation are recognised in the consolidated Statement of Comprehensive Income.

g) Realised and unrealised gains and losses

Realised gains and losses arising on the disposal of investments are calculated by reference to the cost attributable to those investments and the sales proceeds, and are included in the consolidated Statement of Comprehensive Income. Unrealised gains and losses arising on investments held at the consolidated Statement of Financial Position date are also included in the consolidated Statement of Comprehensive Income.

h) Financial liabilities

All bank loans and borrowings are initially recognised at cost, being the fair value of the consideration received, less issue costs where applicable. After initial recognition, all interest bearing loans and borrowings are subsequently measured at amortised cost. Any difference between cost and redemption value has been recognised in the consolidated Statement of Comprehensive Income over the period of the borrowings on an effective interest basis.

Financial liabilities are derecognised from the consolidated Statement of Financial Position only when the obligations are extinguished either through discharge, cancellation or expiration.

i) Equity

Share Capital represents the nominal value of equity shares.

Share Premium represents the excess over nominal value of the fair value of consideration received for equity shares, net of expenses of the share issue. Share premium is debited for the excess of redemption price over par value of shares.

Other Reserves and the Capital Redemption Reserve include all current and prior results as disclosed in the consolidated Statement of Comprehensive Income. Other Reserves also includes the excess over nominal value of the fair value of consideration deducted on share buy-backs.

j) Expenses

Expenses are recognised in the consolidated Statement of Comprehensive Income upon utilisation of the service or at the date they are incurred.

k) Consolidation

These consolidated financial statements comprise the financial statements of the Company and its wholly owned subsidiary undertakings, Baltimore plc and American Opportunity Trust PLC, both UK registered. Subsidiaries are those entities controlled by the Company. Control exists when the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The financial statements have been prepared using uniform accounting policies for like transactions and other events in similar circumstances. All intra-group balances and transactions are eliminated in full in preparing the consolidated financial statements.

3. Share Capital and Share Premium

a) Authorised Share Capital

	Number of Shares	£
Authorised:
Ordinary shares of 50p each	90,000,000	45,000,000

b) Ordinary Shares - 1 April 2010 to 30 September 2010


Ordinary Shares of 50p each and Management Shares of 50p each	Number of Shares	Share Capital £	Share Premium £
At 1 April 2010	22,505,825	11,252,912	42,696,509
Share buy back	(1,877,204)	(938,602)	-
At 30 September 2010	20,628,621	10,314,310	42,696,509

During June 2010, the Company repurchased for cancellation 1,482,971 shares at an average price of 172p per Share. A further 394,233 shares were repurchased for cancellation at an average price of 200p per share in August 2010.

4. Other reserves

	31 March 2010 £	Movement £	30 September 2010 £
Net investment income	2,332,432	470,375	2,802,807
Realised gain on investments	22,491,290	(2,339,640)	20,151,650
Loss on foreign currency transactions	(902,669)	626	(902,043)
Unrealised loss on revaluation of investments held	(22,224,694)	6,075,383	(16,149,311)
Repurchase of ordinary shares	(5,525,387)	(2,400,574)	(7,925,961)
Repurchase of warrants	(8,179)	-	(8,179)
Discount on repurchase of Convertible Loan Stock	(1,320,711)	-	(1,320,711)
	(5,157,918)	1,806,170	(3,351,748)

5. Cash Flows from Operating Activities

	Six months ended 30 September	Six months ended 30 September	Year ended 31 March
	2010	2009	2010
	£	£	£
Net income for the period / year	4,206,744	10,853,666	12,238,319

Realised losses on investments	2,339,640	1,034,886	1,480,675
Movement in unrealised loss on revaluation of investments	(6,075,383)	(11,375,113)	(13,432,513)
Loss / (gain) on foreign currency translation	(626)	12,492	18,297

	(3,736,369)	(10,327,735)	(11,933,541)

Purchase of investments	(4,553,845)	(9,750,871)	(26,543,064)
Proceeds from sale of investments	17,747,923	14,799,391	25,873,952

	13,194,078	5,048,520	(669,112)

Decrease in dividends and interest receivable	2,005	111,319	145,646
Decrease in other receivables	21,585	280,053	266,532
(Decrease)/increase in creditors and accrued expenses	(84,751)	(20,755)	108,341

	(61,161)	370,617	520,519
	13,603,292	5,945,068	156,185

6. Reconciliation of Net Asset Value to Published Net Asset Value

	30 September		30 September		31 March
	2010		2009		2010
Ordinary Shares	£	£ per share	£	£ per share	£	£ per share
Published Net Asset Value	52,083,568	2.52	50,460,569	2.21	51,262,157	2.27
Management Shares in issue	-	-	1	(0.00)	-	-
Unrealised loss on revaluation of investments at bid / mid price (ref note below)	(1,167,997)	(0.05)	(1,195,665)	(0.05)	(1,173,154)	(0.05)
Reduction in value of Subsidiary	(10,000)	(0.00)	(15,000)	(0.00)	(51,000)	(0.00)
Net Asset Value attributable to shareholders	50,905,571	2.47	49,249,905	2.16	50,038,003	2.22

Note: In accordance with International Financial Reporting Standards, as adopted by the European Union, the Group's long investments have been valued at bid price in the Financial Statements. However, in accordance with the Group's principal documents the Net Asset Value reported each month reflects the investments being valued at the closing, last or mid-market (as the Directors in all circumstances consider appropriate) price as notified to the Group on the valuation day by a member of the stock exchange concerned. Certain investments remain at fair value as determined in good faith by the Directors.

7. Earnings per Share and Net Asset Value per Share

The calculation of basic earnings per share for the Ordinary Share is based on a profit of £4,206,744 (30 September 2009 - £10,853,666, 31 March 2010 - £12,238,319) and the weighted average number of shares in issue during the period of 21,556,871 shares (30 September 2009 - 23,112,553 shares, 31 March 2010 - 22,855,527 shares). In accordance with IAS 33 - Earnings per Share, the diluted earnings per share is also disclosed. At 30 September 2010 there was no difference in the diluted earnings per share calculation for the Ordinary Shares.

The calculation of Net Asset Value per Ordinary Share is based on a Net Asset Value of £50,905,571 (30 September 2009 - £49,249,905, 31 March 2010 - £50,038,003) and the number of shares in issue at the period end of 20,628,621 shares (30 September 2009 - 22,845,825 shares, 31 March 2010 - 22,505,825 shares). The diluted Net Asset Value per share is also disclosed. At 30 September 2010 there was no difference in the diluted Net Asset Value per share calculation for the Ordinary Shares.

8. Related Parties

The Manager and Investment Adviser are considered to be related parties. The fees paid are included in the Consolidated Statement of Comprehensive Income. At 30 September 2010 £92,436 included in creditors and accrued expenses was payable to the Investment Adviser.

The Directors are also considered to be related parties and their fees are disclosed in the Consolidated Statement of Comprehensive Income. At 30 September 2010 £33,523 included in creditors and accrued expenses was payable to the Directors.

There were no transactions between the Company and its subsidiaries in the period.

Enquiries:

Sara Bourne

BNP Paribas Fund Services (Guernsey) Limited Tel: 01481 750858

Hugh Field

Arbuthnot Securities Limited Tel: 020 7012 2000