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Welsh Indl.Inv.Tst (WII)

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Thursday 22 December, 2005

Welsh Indl.Inv.Tst

Interim Results

                      WELSH INDUSTRIAL INVESTMENT TRUST plc

                          CHAIRMAN'S INTERIM STATEMENT

Dear Shareholder,

For  the  first time the interim accounts have been prepared in accordance  with
International  Financial  Reporting Standards ("IFRS").  This  has  resulted  in
additional  information being required and has necessitated a number of  changes
in  the traditional format of the statements which shareholders have received in
the past.

The  comparative  figures have also been revised to comply  with  IFRS  and  the
disclosures  required  by  IFRS 1 concerning the transition  from  UK  Generally
Accepted Accounting Principles to IFRS can be found in notes 7, 8 and 9 of these
interim  accounts.   As a result this interim statement is significantly  longer
than  in  the  past  and,  as  might be expected, has  incurred  a  much  higher
cost.

The  results  for  the half year ended 5th October 2005 show  a  profit  on  the
revenue  account of £75,000 compared with a profit of £78,000 for the comparable
period  last  year and a gain of £177,000 for the capital account as  against  a
loss of £793,000 for the same period last year.

Overall this has resulted in earnings per ordinary share of 18.7p against a loss
of 53.0p for the comparable period last year. This variance is mainly due to the
movement  in  the capital account with the Revenue earnings per share  remaining
fairly constant at 5.6p compared with 5.7p for the last interim period.

Consequently the Group's basic net asset value has risen from 446.8p as  at  5th
April  2005  to  459.2p as at 5th October 2005, an increase of  12.4p  or  2.8%.
Over  the same six month period the FTSE All Share Index increased from 2,479 to
2,721, an  increase of 9.76% and in the 12 month period to 5th October 2005  the
NAV  has increased by 30.75% against an increase in the FTSE All Share Index  of
16.6%.

Your  Board continues with its strategy of seeking investments in companies that
have  a  real  prospect  of high growth.   As in previous  years  the  Board  is
proposing no interim dividend.

A P Stirling
Chairman                                          21st December 2005.




                               WELSH INDUSTRIAL INVESTMENT TRUST plc

                                       INTERIM RESULTS 2005

                              UNAUDITED CONSOLIDATED INCOME STATEMENT
                             for the half year ended 5th October 2005

                        Six months to             Six months to              Year ended
                         5th October            5th October 2004           5th April 2005
                             2005
                                                    Restated                  Restated

                    Revenue Capital  Total    Revenue Capital  Total   Revenue  Capital  Total
                     £'000   £'000   £'000     £'000   £'000   £'000    £'000    £'000   £'000
Income:
Dividend and
Interest income         71       -      71       108       -     108      174        -     174

Other operating income  48       -      48        12       -      12      (14)       -     (14)

Total revenue          119       -     119       120       -     120      160        -     160

Gains/(losses) on
investments held at
fair value               -     177     177         -    (793)   (793)       -      499     499

                       119     177     296       120    (793)   (673)     160      499     659

Operating expenses     (42)      -     (42)      (40)      -     (40)     (79)       -     (79)

Profit before finance
costs and taxation      77     177     254        80    (793)   (713)      81      499     580

Finance costs           (2)      -      (2)       (2)      -      (2)      (4)       -      (4)

Profit before taxation  75     177     252        78    (793)   (715)      77      499     576

Taxation                 -       -       -         -       -       -        -        -       -

Profit/(loss) for
the period              75     177     252        78    (793)   (715)      77      499     576

Earnings per Ordinary                 18.7p                    (53.0)p                    42.7p
Share (Note 3)


The total column of this statement represents the Group's Income Statement, prepared in
accordance with IFRS. The revenue and capital columns are supplementary to this and are prepared
under guidance published by the Association of Investment Trust Companies.

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




                  WELSH INDUSTRIAL INVESTMENT TRUST plc
                           INTERIM RESULTS 2005

          UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
                 for the half year ended 5th October 2005

                                    Half year ended 5th October 2005
                               Ordinary
                               Share          Capital    Retained
                               capital        reserve    earnings          Total
                               £'000            £'000       £'000          £'000
Balance as at 5th
April, 2005                       67            5,725         240          6,032

Profit for the period              -              177          75            252

Ordinary dividend paid
(Note 4)                           -                -         (85)           (85)

Balance at 5th
October, 2005                     67            5,902         230          6,199


                                    Half year ended 5th October, 2004
                                         (Restated - see note 8)
                               Ordinary
                               Share          Capital    Retained
                               capital        reserve    earnings          Total
                               £'000            £'000       £'000          £'000
Balance as at
5th April, 2004                   67            5,226         248          5,541

Profit for the period              -             (793)         78           (715)

Ordinary dividend paid
(Note 4)                           -                -         (85)           (85)

Balance at 5th
October, 2004                     67            4,433         241          4,741


                                       Year ended 5th April, 2005
                                         (Restated - see note 7)
                               Ordinary
                               Share          Capital    Retained
                               capital        reserve    earnings          Total
                               £'000            £'000       £'000          £'000
Balance as at
5th April, 2004                   67            5,226         248          5,541

Profit for the period              -              499          77            576

Ordinary dividend paid
(Note 4)                           -                -         (85)           (85)

Balance at  5th
April, 2005                       67            5,725         240          6,032



                   WELSH INDUSTRIAL INVESTMENT TRUST plc
                           INTERIM RESULTS 2005

                    UNAUDITED CONSOLIDATED BALANCE SHEET
                            as at 5th October 2005

                             5th                5th                  5th
                         October            October                April
                            2005               2004                 2005
                                           Restated             Restated
                                        (see note 8)         (see note 7)

Assets                     £'000              £'000                £'000
Non current assets
 Investments held
 at fair value             5,953              4,690                5,691

Total non current
assets                     5,953              4,690                5,691

Current assets
 Other accrued income
 and prepaid expenses          7                  8                    4

 Other current assets         54                 13                   47

 Cash and cash equivalents   263                108                  368

                             324                129                  419

Total assets               6,277              4,819                6,110

Current liabilities
 Trade and other payables    (33)               (33)                 (31)

 Current tax payable           -                  -                   (2)

Total current liabilities    (33)               (33)                 (33)

Total assets less
current liabilities        6,244              4,786                6,077

Non-current liabilities
 8.75% Cumulative
 Preference shares           (45)               (45)                 (45)

Net assets                 6,199              4,741                6,032

Capital and reserves
 Ordinary share capital       67                 67                   67

 Capital reserve           5,902              4,433                5,725

 Retained earnings           230                241                  240

Total equity               6,199              4,741                6,032

Net asset value
per ordinary share         459.2p             351.2p               446.8p
(Note 6)



                   WELSH INDUSTRIAL INVESTMENT TRUST plc
                            INTERIM RESULTS 2005

                 UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
                   for the  Half Year to 5th October 2005

                   6 months to 5th      6 months to 5th           Year Ended
                      October 2005         October 2004       5th April 2005
                             £'000                £'000                £'000
Cashflow from operating activities

 Investment income received    104                  120                  169

 Deposit interest received       3                    2                    5

 Share dealing profit/(loss)     1                  (11)                 (26)

 Other income rec                2                    -                    1

 Other cash payments           (47)                 (47)                 (79)

Net cash flows from
operating activities            63                   64                   70

Cash flows from investing activities

 Purchase of investments      (440)                (186)                (420)

 Sale of investments           355                  189                  682

                               (85)                   3                  262

Cash flows from financing activities

 Preference dividends paid       -                    -                   (4)

 Equity dividends paid         (83)                 (83)                 (84)

                               (83)                 (83)                 (88)

(Decrease)/increase in
cash and cash equivalents     (105)                 (16)                 244

Cash and cash equivalents at
start of period                368                  124                  124

Cash and cash equivalents at
end of period                  263                  108                  368


Notes to the Financial Statements

1.   Accounting policies.
     The financial statements of the Group have been prepared in accordance with
     International  Financial Reporting Standards ("IFRS")  as  adopted  by  the
     European  Union.  These comprise standards and interpretations approved  by
     the  International  Accounting  Standards  Board  ("IASB"),  together  with
     interpretations  of  the  International Accounting Standards  and  Standing
     Interpretations   Committee  approved  by  the   International   Accounting
     Standards Committee ("IASC") that remain in effect, to the extent that IFRS
     have been adopted by the European Union.

     The  disclosures required by IFRS 1 concerning the transition from UK  GAAP
     to  IFRS  are  given in notes 7, 8 and 9.  These financial  statements  are
     presented  in pounds sterling because that is the currency of  the  primary
     economic environment in which the Group operates.  The financial statements
     of  the Group for the year ending 5th April, 2006 will also be prepared  in
     accordance with IFRS as adopted by the European Union.

     Basis of preparation
     The  financial  statements  have been prepared under  the  historical  cost
     convention,  as modified by the revaluation of investments.  The  principal
     accounting  policies  adopted  are  set out  below.   Where  presentational
     guidance set out in the Statement of Recommended Practice ("the SORP")  for
     investment  trusts issued by the Association of Investment Trust  Companies
     ("the  AITC") in January 2003 is consistent with the requirements of  IFRS,
     the  directors have sought to prepare the financial statements on  a  basis
     compliant with the recommendations of the SORP.

     Basis of consolidation
     The  consolidated financial statements incorporate the financial statements
     of the Company and its subsidiary undertakings made up to 5th October 2005.
     All  intra-group transactions, balances, income and expenses are eliminated
     on consolidation.

     Presentation of Income Statement
     In  order  to better reflect the activities of an investment trust  company
     and   in  accordance  with  guidance  issued  by  the  AITC,  supplementary
     information which analyses the Income Statement between items of a  revenue
     and  capital nature has been presented alongside the Income Statement.  Net
     capital  returns  may  not be distributed by way of a  dividend.   The  net
     revenue  is the measure the directors believe appropriate in assessing  the
     Group's compliance with certain requirements set out in section 842 of  the
     Income and Corporation Taxes Act 1988.

     Investments in associates
     An associate is an entity over which the Group is in a position to exercise
     significant   influence,  but  not  control  or  joint   control,   through
     participation  in  the  financial and operating  policy  decisions  of  the
     entity. The Group's associates are accounted for in accordance with IAS  39
     Financial   Instruments:  Recognition  and  Measurement   ("IAS   39")   as
     investments  designated  at  fair  value  through  profit  and  loss,   and
     therefore,  in  accordance  with paragraph  1  of  IAS  28  Investments  in
     Associates ("IAS 28"), equity accounting is not required.

     Segmental reporting
     A  business segment is a group of assets and operations that are subject to
     risks and returns that are different from those of other business segments.
     The  group  comprises of one business segment only: the  Investment  Trust.
     This  is consistent with internal reporting.  All revenues are derived from
     operations   within  the  United  Kingdom  and  consequently  no   separate
     geographical segment information is provided.

     Income
     Dividend and interest income
     Income  from listed securities and interest receivable on bank deposits  is
     accounted  for  on  a  receivable basis. Interest receivable  on  loans  is
     accounted for on an accruals basis.

     Expenses
     All  expenses and interest payable are accounted for on an accruals  basis.
     All  expenses  are  allocated  to revenue except  the  expenses  which  are
     incidental to the disposal of an investment are deducted from the  disposal
     proceeds of the investment.

     Taxation
     The  tax  expense  represents  the sum of the  tax  currently  payable  and
     deferred tax.

     The  tax currently payable is based on taxable profit for the year. Taxable
     profit  differs from profit before tax as reported in the income  statement
     because  it  excludes  items  of income or  expense  that  are  taxable  or
     deductible  in  other years and it further excludes items  that  are  never
     taxable  or deductible. The Group's liability for current tax is calculated
     using  tax  rates that have been enacted or substantively  enacted  by  the
     balance sheet date.

     In line with the recommendations of the SORP, the allocation method used to
     calculate tax relief on expenses presented against capital returns  in  the
     supplementary information in the income statement is the "marginal  basis".
     Under this basis, if taxable income is capable of being offset entirely  by
     expenses presented in the revenue column of the income statement,  then  no
     tax relief is transferred to the capital return column.

     Deferred  tax  is  the  tax  expected  to  be  payable  or  recoverable  on
     differences between the carrying amounts of assets and liabilities  in  the
     financial  statements  and  the  corresponding  tax  bases  used   in   the
     computation of taxable profit, and is accounted for using the balance sheet
     liability  method. Deferred tax liabilities are recognised for all  taxable
     temporary differences and deferred tax assets are recognised to the  extent
     that  it  is probable that taxable profits will be available against  which
     deductible temporary differences can be utilised.

     Investment  trusts  which have approval under section  842  of  the  Income
     Corporation Taxes Act 1988 are not liable for taxation on capital gains.

     The  carrying  amount of deferred tax assets is reviewed  at  each  balance
     sheet  date  and reduced to the extent that it is no longer  probable  that
     sufficient  taxable profits will be available to allow all or part  of  the
     assets to be recovered.

     Deferred tax is calculated at the rates that are expected to apply  in  the
     period when the liability is settled or the asset realised. Deferred tax is
     charged  or  credited in the income statement, except when  it  relates  to
     items  charged or credited directly to equity, in which case  the  deferred
     tax is also dealt with in equity.

     Investments

     (i)  Securities
          Purchases and sales of listed investments are recognised on the  trade
          date,  the  date  on which the Group commit to purchase  or  sell  the
          investment. All investments are designated upon initial recognition as
          held at fair value, and are measured at subsequent reporting dates  at
          fair  value,  which is either the bid price or the last traded  price,
          depending on the convention of the exchange on which the investment is
          quoted.  Fair values for unquoted investments, or for investments  for
          which there is only an inactive market, are established by taking into
          account   the  guidelines  issued  by  the  British  Venture   Capital
          Association as follows:
          (i)  Investments which have been made in the last 12 months are valued
               at cost in the absence of overriding factors;
          (ii) Investments  in  companies at an early stage of  development  are
               also valued at cost in the absence of overriding factors;
          (iii)      Where  investments  have gone beyond  the  stage  in  their
               development  in  (ii) above, the shares may be valued  by  having
               regard  to  a  suitable price-earnings ratio  to  that  company's
               historic  post-tax  earnings  or  the  net  asset  value  of  the
               investment; and
          (iv) Where  a  value  is indicated by a material arm's  length  market
               transaction  by  a third party in the shares of a  company,  that
               value may be used.

      (ii)Loan Stock
          Loan  stock  is valued at fair value, being the net present  value  of
          future cash flows using an appropriate interest rate.

          Gains  and  losses  on  investments are  analysed  within  the  income
          statement as capital.

     Trade and other receivables
     Other  receivables do not carry any interest and are short term  in  nature
     and are accordingly stated at their nominal value as reduced by appropriate
     allowances for estimated irrecoverable amounts.

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

     Dividends payable
     All  dividends are recognised in the period in which they are  approved  by
     shareholders.

     Bank borrowings
     All  bank  loans 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.  Amortised cost is calculated  by
     taking  into account any discount or premium on settlement.  The  costs  of
     arranging any interest-bearing loans are capitalised and amortised over the
     life of the loan.

     Trade and other payables
     Other  payables  are not interest-bearing and are stated at  their  nominal
     value.

2.   Comparative information
     The financial information contained in this interim report does not
     constitute statutory accounts as defined in section 240 of the Companies
     Act 1985. The financial information for the half years ended 5th October
     2005 and 5th October 2004 has not been audited.

     The information for the year ended 5th April, 2005 has been extracted from
     the latest published audited financial statements, as restated to comply
     with IFRS (see note 7). The audited financial statements for the year ended
     5th April, 2005 have been filed with the Registrar of Companies. The report
     of the auditors on those financial statements contained no qualification or
     statement under section 237(2) or (3) of the Companies Act 1985.

3    Earnings per share.
     The earnings per share figure is based on the net gain for the half year of
     £252,000 (half year ended 5th October 2004: Loss £(715,000); year ended 5th
     April, 2005: £576,000) and on 1,350,000 ordinary shares.

     The earnings per ordinary share figures detailed above can be further
     analysed between revenue and capital as follows:-

                           Half year     Half year
                           ended 5th     ended 5th      Year ended
                        October 2005  October 2004  5th April 2005
                                          Restated        Restated
                                        (see note8)     (see note7)
                               £'000         £'000           £'000
     Net revenue profit           75            78              77
     Net capital profit          177          (793)            499

     Net total profit            252          (715)            576

     The weighted average number of ordinary shares in issue during each of the
     periods was 1,350,000



     Earnings per share        Pence         Pence           Pence
     Revenue                     5.6           5.7             5.7
     Capital                    13.1         (58.7)           37.0

     Total earnings per share   18.7         (53.0)           42.7

4.   Dividends.
                           Half year     Half year
                           ended 5th     ended 5th      Year ended
                        October 2005  October 2004  5th April 2005
                               £'000         £'000           £'000
     Amounts recognised as
     distributions to equity
     holders in the period:

     Final dividend for the
     year ended 5th April 2005
     of 6.3p (2004: 6.3p) per
     share                        85            85              85

                                  85            85              85

5.   Share capital.
     (i)  Ordinary
     1,350,000 ordinary shares were in issue throughout the periods covered in
     this statement.

     (ii) Preference
     In addition there were in issue 225,000 8.75% cumulative preference shares
     of 20p each. The preference dividend is cumulative and payable in one
     instalment on 5th April every year, and is deemed to accrue evenly from day
     to day. The voting rights of the preference shareholders are restricted to
     resolutions to winding up the company, or to vary the special rights
     attached to the preference shares, in which event each shareholder is
     entitled to one vote. Upon the winding up of the company the preference
     shareholders rank first in the return of capital, being however restricted
     to the nominal amount paid up, together with any arrears of the preference
     dividend. Under International Accounting Standard 32 the preference share
     capital is classified as a liability and hence the dividend is shown as a
     finance cost and the capital element as a non-current liability.


6.   Net asset value per ordinary share.
     The net asset value per ordinary share is based on the net assets
     attributable to the equity shareholders of £6,199,000 (half year ended 5th
     October 2004: £4,741,000 as restated; year ended 5th April 2005: £6,032,000
     as restated) and on 1,350,000 ordinary shares, being the number of ordinary
     shares in issue at each period end.


7.   (a) Restatement of balances as at and for the year ended 5 April 2005.
     At 6th April 2005 the Company adopted International Financial Reporting
     Standards. In accordance with IFRS 1 (First Time Adoption of International
     Financial Reporting Standards) the following is a reconciliation of the
     results as at and for the year ended 5th April 2005, previously reported
     under the applicable UK Accounting Standards and the SORP, to the restated
     IFRS results.

                                   (Audited)    Effect of    Restated
                                  Previously   transition   5th April
                                reported 5th      to IFRS        2005
                                  April 2005
                            Notes      £'000        £'000       £'000
     Investments             1         5,721          (30)      5,691
     Current assets                      419                      419
     Creditors: amounts
     falling due within
     one year                2          (118)          85         (33)

     Total assets less
     current liabilities               6,022                    6,077

     Non-current liabilities 3             -          (45)        (45)

     Net assets                        6,022                    6,032

     Capital and reserves
     Called up share capital 3           112          (45)         67
     Capital reserve         1         5,755          (30)      5,725
     Revenue reserve /
     Retained earnings       2           155           85         240

     Total shareholders'
     funds                             6,022                    6,032

     Notes to the reconciliation
   1.   Investments are designated as held at fair value under IFRS and are carried
      at bid prices which total their fair value at £5,691,000. Previously under UK
      GAAP they were carried at mid prices with liquidity discounts as appropriate.
      The aggregate differences, being a downward revaluation of £30,000, also
      decrease capital reserves.

   2.   No provision has been made for the dividend on the ordinary shares for the
      year ended 5 April 2005 of £85,050. Under IFRS the dividend is not recognised
      until approved by the shareholders.

   3.   The 8.75% Cumulative Preference shares are designated under IFRS as a
      liability rather than equity and hence the dividend is shown as a finance cost
      and the capital element as a non-current liability.


     (b) Reconciliation of the Statement of Total Return to the Income Statement
     for the year ended 5th April 2005.
     Under IFRS the Income Statement is the equivalent of the Statement of Total
     Return reported previously.

                                                      2005
                                        Notes        £'000
     Total transfer to reserves per the                514
     Statement of Total Return
     Add back dividends proposed          1             85
     Investments held at fair value
     changed from mid to bid basis at     2            (23)
     5th April 2004 and 5th April 2005

     Net profit per the Income                         576
     Statement


     Notes to the reconciliation
  1.   Ordinary dividends declared and paid during the period are dealt with
     through the Statement of Changes in Equity.

  2.   The portfolio valuations at 5th April 2004 and 5th April 2005 are required
     to be valued at bid-price under IFRS. These values differ from the previous
     valuations by £30,000 and £7,000 respectively.


8.   (a) Restatement of balances as at and for the period ended 5th October 2004.
     At 6th April 2005 the Company adopted International Financial Reporting
     Standards. In accordance with IFRS 1 (First Time Adoption of International
     Financial Reporting Standards) the following is a reconciliation of the
     results as at and for the period ended 5th October 2004, previously
     reported under the applicable UK Accounting Standards and the SORP, to the
     restated IFRS results.

                                   (Audited)    Effect of    Restated
                                  Previously   transition 5th October
                                reported 5th      to IFRS        2004
                                October 2004
                            Notes      £'000        £'000       £'000
    Investments              1         4,711          (21)      4,690
    Current assets                       129                      129
    Creditors: amounts
    falling due within
    one year                 2           (31)          (2)        (33)

    Total assets less
    current liabilities                4,809                    4,786

    Non-current liabilities  2             -          (45)        (45)

    Net assets                         4,809                    4,741

    Capital and reserves
    Called up share capital  2           112          (45)         67
    Capital reserve          1         4,454          (21)      4,433
    Revenue reserve /
    Retained earnings        2           243           (2)        241
    Equity shareholders' funds         4,809                    4,741

    Notes to the reconciliation
  1.   Investments are designated as held at fair value under IFRS and are carried
     at bid prices which total their fair value at £4,690,000. Previously under UK
     GAAP they were carried at mid prices with liquidity discounts as appropriate.
     The aggregate differences, being a downward revaluation of £21,000, also
     decrease capital reserves.

  2.   The 8.75% Cumulative Preference shares are designated under IFRS as a
     liability rather than equity and hence the dividend is shown as a finance cost
     and the capital element as a non-current liability.

     (b) Reconciliation of the Statement of Total Return to the Income Statement
     for the period ended 5th October   2004.
     Under IFRS the Income Statement is the equivalent of the Statement of Total
     Return reported previously.

                                                   2004
                                         Notes    £'000

     Total transfer to reserves per the            (648)
     Statement of Total Return
     Adjustment to previously reported
     reserves                              1        (51)
     Investments held at fair value
     changed from mid to bid basis at
     5th April 2004 and 5th October 2004   2        (14)
     Accrual in respect of dividend on
     cumulative preference shares now
     deemed a finance cost                 3         (2)

     Net loss per the Income Statement             (715)

     Notes to the reconciliation
  1    An adjustment is required as a result of an error in previously reported
     capital reserves.

  2    The portfolio valuations at 5th April 2004 and 5th October 2004 are
     required to be valued at bid-price under IFRS. These values differ from the
     previous valuations by £8,000 and £22,000 respectively.

  3    The 8.75% cumulative preference shares are designated under IFRS as a
     liability and the dividend is deemed a finance cost to be accrued over the
     period.


9.   Restatement of opening balances as at 5th April 2004.
     In accordance with IFRS 1 (First Time Adoption of International Financial
     Reporting Standards) the following is a reconciliation of the balance sheet
     as at 5th April 2004, previously reported under the applicable UK
     Accounting Standards and the SORP, to the restated IFRS balance sheet.

                                   (Audited)    Effect of    Restated
                                  Previously   transition   5th April
                                reported 5th      to IFRS        2004
                                  April 2004
                            Notes      £'000        £'000       £'000
     Investments             1         5,486           (8)      5,478
     Current assets                      139                      139
     Creditors: amounts
     falling due within
     one year                2          (116)          85         (31)

     Total assets less
     current liabilities               5,509                    5,586

     Non-current liabilities 3             -          (45)        (45)

     Net assets                        5,509                    5,541
     Capital and reserves
     Called up share capital 3           112          (45)         67
     Capital reserve         1         5,234           (8)      5,226
     Revenue reserve /
     Retained earnings       2           163           85         248

     Equity shareholders' funds        5,509                    5,541

     Notes to the reconciliation
  1.   Investments are designated as held at fair value under IFRS and are carried
     at bid prices which total their fair value at £5,478,000. They were carried at
     mid prices previously under UK GAAP with liquidity discounts as appropriate. The
     aggregate differences, being a downward revaluation of £8,000, also decrease
     capital reserves.

  2.   No provision has been made for the dividend on the ordinary shares for the
     year ended 5th April 2004 of £85,050. Under IFRS this is not recognised until
     approved by shareholders.

  3.   The 8.75% Cumulative Preference shares are designated under IFRS as a
     liability rather than equity and hence the dividend is shown as a finance cost
     and the capital element as a non-current liability.


10.  Cash Flow Statement.
     The impact of IFRS on the Cash Flow Statement is not significant other than
     in presentational changes.
                                                                                                 

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