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ADC Zeros 2010 plc (ADC2)

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Wednesday 30 January, 2008

ADC Zeros 2010 plc

Interim Results

ADC Zeros 2010 plc
30 January 2008

ADC ZEROS 2010 PLC

PRELIMINARY ANNOUNCEMENT OF UNAUDITED RESULTS

For the period ended 30 November 2007



The six months ended 30 November 2007 saw the completion of a strategic review
of the Company's investment objective and policy and on 3 August 2007,
Shareholders approved the Board's proposals to realise the Company's assets in
an orderly manner and to return capital to Shareholders through a combination of
a capital return scheme and buy back programme. The first such return of capital
took place at the end of November 2007 with ZDP shareholders in ADC Zeros 2010
PLC receiving 51 pence per share.


                                                         30 November 2007
                                                                       £m
Total assets less current liabilities (Group)                       19.50
Less prior ranking liabilities:
ZDP 2010 shares                                                     (5.73)
ZDP 2012 shares                                                     (5.73)
Cover                                                                8.04



 Responsibility Statement



We confirm to the best of our knowledge:



(a)     the condensed set of financial statements has been prepared in
accordance with IAS 34;

(b)     the interim management report includes 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

(c)     the interim management report includes a fair view of the information
required by DTR 4.2.8R (disclosure of related party related party transactions
and changes therein).


John Milligan
Chairman

30 January 2008





Income Statement (unaudited)


                                            Six months ended     Six months ended           Year ended
                                            30 November 2007     30 November 2006          31 May 2007
                                                       £'000                £'000                £'000
Interest income                                            6                   10                   14
Total revenue                                              6                   10                   14
Loan interest                                            317                  297                  602
Gains/(losses) on held-at-fair-value
investments                                                -                    -                    -
                                                         323                  307                  616
Expenses
Management fees                                            -                    -                    -
Other operating expenses                                   -                    -                    -

Profit before finance costs and tax                      323                  307                  616
Finance costs
Zero dividend preference shares                        (317)                (297)                (602)

Profit before taxation                                     6                   10                   14
Taxation                                                (25)                  (2)                 (46)
Profit/(loss) after taxation                            (19)                    8                 (32)
Earnings per Ordinary share - basic

(pence)                                              (16.29)                16.00              (64.00)



All income is attributable to the equity holders of ADC Zeros 2010 PLC. There
are no minority interests.

All items in the above statement derive from continuing operations.



 Balance Sheet (unaudited)


                                                          At                   At                  At
                                            30 November 2007     30 November 2006         31 May 2007
                                                       £'000                £'000               £'000

Non-current assets
Held-at-fair-value investments                             -                    -                   -

Current assets
Cash and cash equivalents                                333                  256                 260
Trade and other receivables                            5,726                9,569               9,874
                                                       6,059                9,825              10,134

Current liabilities
Other payables                                         (250)                (181)               (225)
Net current assets                                     5,809                9,644               9,909
Total assets less current liabilities                  5,809                9,644             (9,909)

Non-current liabilities
Zero dividend preference shares                      (5,726)              (9,569)             (9,874)
Total net assets                                          83                   75                  35

Equity
Called up Ordinary share capital                         117                   50                  50
Revenue reserve                                         (34)                   25                (15)
Total shareholders' funds                                 83                   75                  35

Equity shareholders' funds                                83                   75                  35

Net asset value per share (pence)
ZDP 2010                                               65.44               109.36              112.85
Ordinary                                               71.14               150.00               70.00



Statement of Changes in Equity (unaudited)



                                                         Share     Revenue
For the six months ended 30 November 2007              Capital     reserve        Total
                                                         £'000       £'000        £'000
Net assets at 31 May 2007                                   50        (15)           35
Proceeds from parent company                                67           -           67
Net loss on ordinary activities after taxation               -        (19)         (19)
Net assets at 30 November 2007                             117        (34)           83



                                                         Share      Revenue
For the six months ended 30 November 2006              capital      reserve        Total
                                                         £'000        £'000        £'000
Net assets at 31 May 2006                                   50           17           67
Net profit on ordinary activities after taxation             -            8            8
Net assets at 30 November 2006                              50           25           75



                                                         Share     Revenue
For the year ended 31 May 2007                         capital     reserve        Total
                                                         £'000       £'000        £'000
Net assets at 31 May 2006                                   50          17           67
Net loss on ordinary activities after taxation               -        (32)         (32)
Net assets at 31 May 2007                                   50        (15)           35



Cash Flow Statement (unaudited)


                                                    Six months ended     Six months ended      Year ended
                                                    30 November 2007     30 November 2006     31 May 2007
                                                               £'000                £'000           £'000
Operating activities
Profit before tax                                                  6                    8              14
ZDP shares finance cost                                          317                  297             602
Sales of investments held at fair value

through profit and loss                                            -                  175             175
Increase in other receivables                                  (317)                (278)           (583)
Increase in other payables                                         -                    2               -
Net cash inflow from operating activities                          6                  204             208

Financing activities
Equity shares issued                                              67                    -               -
Net cash inflow from financing activities                         67                    -               -

Net increase in cash and cash equivalents                         73                  204             208
Cash and cash equivalents at start of period                     260                   52              52
Cash and cash equivalents at end of period                       333                  256             260



Notes to the Financial Statements (unaudited)



1.       Principal activities

The principal activity of the Company is that of an investment company within
the meaning of Section 266 of the Companies Act 1988.



2.       Accounting policies

The financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS). The Company financial statements have been
prepared in accordance with IFRS as adopted by the European Union and as applied
in accordance with the provisions of the Companies Act 1985. The principal
accounting policies adopted by the Company are set out below.



(a)     Basis of accounting

The accounting policies which follow set out those policies which apply in
preparing the financial statements for the period 1 June 2006 to 31 May 2007.



The financial statements are presented in Sterling, which is the currency of the
primary environment in which it operates. All values are rounded to the nearest
thousand pounds (£'000) except when otherwise indicated.



(b)     Valuation of Investments

Investments are held at cost through the Income Statement.



For financial assets acquired, the cost is the fair value of the consideration.
Subsequent to initial recognition, all listed investments are measured at their
quoted bid prices without deduction for the estimated future selling costs.



Unlisted investments are valued by the Directors at fair value having regard to
the International Private Equity and Venture Capital Guidelines. They are valued
at cost unless subsequent financings or other circumstances indicate a different
valuation is appropriate. When a valuation is undertaken consideration is given
to the most recent information available, including the latest trading figures,
performance against forecast, management's view of prospects and the price of
any transactions in the security.



Realisable value in the short term could differ materially from the amount which
investments are included in the accounts.



(c)     Movements in fair value

Changes in the fair value of all held-at-fair-value assets are taken to the
Income Statement.



On disposal, realised gains and losses are also recognised in the Income
Statement.



(d)     Income

Dividends receivable on equity shares are brought into account on the
ex-dividend date. Dividends receivable on equity shares where no ex-dividend
date is quoted are brought into account when the Company's right to receive the
payment is established. Fixed returns on non-equity shares are recognised on a
time apportioned basis so as to reflect the effective yield on shares. Other
returns on non-equity shares are recognised when the right to the return is
established.



The fixed return on a debt security is recognised on a time apportioned basis so
as to reflect the effective yield on the debt security. Where the Company has
elected to receive its dividends in the form of additional shares rather than in
cash, then the amount of cash dividend is recognised as income. Any excess in
value of the shares received over the amounts of the cash is recognised in
capital reserves.



(e)     Expenses and interest payable

All expenses are accounted for on an accruals basis. Remuneration of the
Company's auditors is borne by the Company's parent.



(f)      Taxation

The charge for taxation is based on the taxable profits for the period. Deferred
taxation is accounted for using the balance sheet liability method. Deferred tax
liabilities are recognised for all taxable temporary differences. Deferred tax
assets are recognised to the extent it is probable that taxable profits will be
available against which is deductible temporary differences can be utilised.



(g)     Dividends payable

Dividends are recognised from the date on which they are declared ex-dividend.



(h)     Cash and cash equivalents

Cash comprises cash in hand and demand deposits. Cash equivalents are
short-term, highly liquid investments that are readily convertible to known
amounts of cash and that are subject to insignificant risk of changes in value.



(i)       Foreign currency translation

Transactions involving foreign currencies are converted at the rate ruling at
the date of the transaction.



Foreign currency monetary assets and liabilities are translated into Sterling at
the rate ruling on the balance sheet date. Foreign exchange differences arising
on translation are recognised in the Income Statement.



(j)      Zero dividend preference shares

Zero dividend preference shares are treated as a liability of the Company,
calculated on the effective yield basis.



3.         Income

The breakdown of income was as follows:-


                                            30 November 2007      30 November 2006      31 May 2007
Income from investments                     £'000                 £'000                 £'000
UK unfranked investment income              -                     7                     7
                                            -                     7                     7
Other income
Deposit income                              6                     3                     7
                                            6                     10                    14



4.     Earnings per Ordinary share and net asset value per share


                                                        Six months ended     Six months ended        Year ended

                                                        30 November 2007     30 November 2006       31 May 2007
Net revenue attributable to Ordinary shareholders              £(19,000)               £8,000         £(32,000)
Equity shareholders funds                                        £83,000              £75,000           £35,000
The number of Ordinary shares in issue at the end
of the period on which the earnings and net asset

Value were calculated was:                                       116,667               50,000            50,000
The number of Zero dividend preference shares in
issue at the end of the period on which net asset
value was calculated was:                                      8,750,000            8,750,000         8,750,000
Revenue earnings per Ordinary share                             (16.29)p               16.00p          (64.00)p
Net asset value per Ordinary share                                71.14p              150.00p            70.00p
Net asset value per Zero dividend preference share                65.44p              109.36p           112.85p



5.     Interim Report



The financial information for the six months ended 30 November 2007 and the
period to 30 November 2006 comprises non-statutory accounts within the meaning
of Section 240 of the Companies Act 1985. The financial information for the
period ended 31 May 2007  has been abridged from published accounts that have
been delivered to the Registrar of Companies on which the report of the auditors
was unqualified. The Interim Report has been prepared on the same basis as the
Annual Report. Copies of the Interim Report will be posted to shareholders in
due course and further copies will be available from the Registered Office, 10
Queen's Terrace, Aberdeen AB10 1YG.





Aberdeen Asset Management PLC
Secretaries

30 January 2008














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