Regulatory News

Albion Development VCT PLC

As required by the UK Listing Authority's Disclosure and Transparency Rule 4.2,
Albion Development VCT PLC today makes public its information relating to the
Half-yearly Financial Report (which is unaudited) for the six months to 30 June
2012. This announcement was approved by the Board of Directors on 16 August
2012.

The full Half-yearly Financial Report (which is unaudited) for the period to 30
June 2012, will shortly be sent to shareholders. Copies of the full Half-yearly
Financial Report will be shown via the Albion Ventures LLP website www.albion-
ventures.co.uk under the "Our Funds" section by clicking Albion Development VCT
PLC.

Investment objectives

Albion Development VCT PLC (the "Company") is a venture capital trust which
raised a total of £33.3 million through the issue of shares between 1999 and
2004. The C shares merged with the Ordinary shares in 2007.

A further £6.3 million was raised through an issue of new D shares in 2009/2010
and £3.2 million was raised for the Ordinary shares through the Albion VCTs
Linked Top Up Offers in 2011 and 2012. The funds raised will be invested in
accordance with the Company's existing investment policy.

The Company's investment policy is intended to provide investors with a regular
and predicable source of dividend income combined with the prospects of long
term capital growth. This is achieved by establishing a diversified portfolio of
holdings in smaller, unquoted companies whilst at the same time selecting and
structuring investments in such a way as to balance the risks normally
associated with investment in such companies. It is intended that this will be
achieved as follows:

* Through investment in a small number of higher risk companies with greater
growth prospects in sectors such as software and computer services, and
medical technology.

* This is balanced by investments that provide a strong income stream combined
with a stability of capital. These include freehold-based businesses in the
leisure sector, such as pubs and health clubs, as well as other sectors
including business services, environmental and healthcare. Such investments
will constitute the majority of investments by cost.

* In neither category do investee companies normally have any external
borrowings with a prior charge ranking ahead of the Company.

* Up to two-thirds of qualifying investments by cost comprise loan stock
secured with a first charge on the investee company's assets.

Financial calendar

Record date for second dividend 31 August 2012

Payment date for second dividend 28 September 2012

Financial year end 31 December 2012

Financial highlights (unaudited)

+--------------+-------------------------------+-------------------------------+
|  | Ordinary shares | D shares |
| +----------+----------+---------+----------+----------+---------+
|  | Unaudited| Unaudited| Audited| Unaudited| Unaudited| Audited|
| |six months|six months| year|six months|six months| year|
| | ended| ended| ended| ended| ended| ended|
| | 30 June| 30 June| 31 | 30 June| 30 June| 31 |
| | 2012| 2011| December| 2012| 2011| December|
| |(pence per|(pence per| 2011|(pence per|(pence per| 2011|
| | share)| share)| (pence| share)| share)| (pence|
| | | | per| | | per|
| | | | share)| | | share)|
| +----------+----------+---------+----------+----------+---------+
|Net asset | 73.90| 74.80| 75.50| 94.70| 91.70| 93.00|
|value | | | | | | |
| | | | | | | |
|Revenue return| 0.70| 0.60| 1.40| 1.00| 0.40| 1.60|
| | | | | | | |
|Capital | | | | | | |
|return/(loss) | 0.20| 1.20| 3.30| 2.50| (0.60)| 0.90|
+--------------+----------+----------+---------+----------+----------+---------+

  Ordinary shares C shares D shares (pence
(pence per share) (pence per share) per share) (i)
(i) (i)

Total shareholder net
asset value return to
30 June 2012

Total dividends paid
during the period ended:

  31 December 1999(ii) 1.00 - -

  31 December 2000 2.90 - -

  31 December 2001 3.95 - -

  31 December 2002 4.20 - -

  31 December 2003(iii) 4.50 0.75 -

  31 December 2004 4.00 2.00 -

  31 December 2005 5.20 5.90 -

  31 December 2006 3.00 4.50 -

  31 December 2007(iv) 5.00 5.36 -

  31 December 2008(iv) 12.00 12.86 -

  31 December 2009(iv) 4.00 4.29 -

  31 December 2010(iv) 8.00 8.58 1.00

  31 December 2011(iv) 5.00 5.36 2.50

  30 June 2012(iv) 2.50 2.68 1.75
--------------------------------------------------------
Total dividends paid to
30 June 2012 65.25 52.28 5.25

Net asset value as at
30 June 2012(iv) 73.90 79.18 94.70
--------------------------------------------------------
Total shareholder net
asset value return to
30 June 2012 139.15 131.46 99.95
--------------------------------------------------------

The Directors have declared a second dividend of 2.5 pence per Ordinary share
and 1.75 pence per D share payable on 28 September 2012 to shareholders on the
register as at 31 August 2012.

Notes
(i) Excludes tax benefits upon subscription.
(ii) Assuming subscription for Ordinary shares by the First Closing on 26
January 1999.
(iii) Those subscribing for C shares after 30 June 2003 were not entitled to the
interim dividend.
(iv) The C shares were converted into Ordinary shares on 31 March 2007, with a
conversion ratio of 1.0715 Ordinary shares for each C share. The net asset value
per share and all dividends paid subsequent to the conversion of the C shares to
the Ordinary shares are multiplied by the conversion factor of 1.0715 in respect
of the C shares return, in order to give an accurate picture of the shareholder
value since launch relating to the C shares.

Interim management report

Introduction
The results for Albion Development VCT PLC for the six months to the 30 June
2012 show a total return of 0.9 pence per Ordinary share and 3.5 pence per D
share. The net asset value per share is 73.9 pence for Ordinary shares after the
payment of a 2.5 pence per share dividend during the period and 94.7 pence for D
shares after the payment of a 1.75 pence per share dividend. Both classes of
shares showed a continued increase in investment income over the previous
period, while a rise in value of the more recent investments particularly
benefited the D shares.

Investment performance and progress
During the period, some £2.0 million was invested for the Ordinary share
portfolio and £452,000 for the D share portfolio in a number of existing
investee companies, principally to fund continued growth. Within this, further
investments were made in a number of our renewable energy businesses, including
Street by Street Solar and Regenerco (solar energy) and Alto Prodotto Wind (wind
turbines on brownfield and industrial sites in South Wales). The longer term
strategy for the VCT is for up to 20 per cent. of funds to be invested in
renewable energy, which we see as providing a stable and inflation-resistant
source of long term income.

In general, the investment portfolio has shown resilience, with the majority of
investee companies continuing to show growth during the period. The exceptions
have been those companies that have been either adversely affected by cuts in
public sector funding, or by a reduction in the budgets of customers who in turn
are exposed to the business and consumer sectors.
Set out at the bottom of this announcement is the sector diversification of the
portfolio of our investments as at 30 June 2012.

We are supporting companies with employees of 2,333.

Cancellation of share capital and reserves
At the Annual General Meeting on 15 June 2012, shareholders voted in favour of
the increase in the Company's distributable reserves by way of a reduction of
the Ordinary and D shares' share capital and cancellation of its capital
redemption and share premium reserves. This was approved by Court Order on 11
July 2012. This restructuring has added £20,651,724 and £3,125,887 to
distributable reserves for Ordinary and D shares respectively.

Risks and uncertainties and prospects
We remain concerned about the prospects of the UK and Global economies in view
of the increasingly recessionary environment.  Nevertheless, we believe that
many of the sectors in which we operate, and the investee companies which we
support, will be able to grow despite these broader economic issues. In
addition, it remains our general policy that investee companies have no external
bank borrowings, which is a continuing source of stability to the portfolio.
Overall, the underlying strength and diversity of the investment portfolio gives
us confidence in the longer term prospects for the VCT.

Other risks and uncertainties remain unchanged and are as detailed in note 13.

Albion VCTs Linked Top Up Offer 2011/2012
During the period from 1 January 2012 to 31 May 2012, the Company issued
2,017,961 Ordinary shares under the Albion VCTs Linked Top Up Offer launched in
November 2011. In aggregate, the Albion VCTs raised approximately £10.5 million
across seven of the VCTs managed by Albion Ventures LLP, of which Albion
Development VCT PLC's share was £1.5 million. The Offer closed on 31 May 2012.

The proceeds of the Offer are being used to provide further resources to the
Albion VCTs at a time when a number of attractive new investment opportunities
are arising.

Related party transactions
Details of material related party transactions for the reporting period can be
found in note 11 of this Half-yearly Financial report. Details of significant
events which have occurred since the end of the period are listed in note 10.

Share buy-backs
It remains the Company's policy to buy back shares in the market subject to the
overall constraint that such purchases are in the Company's interest. This
includes the maintenance of sufficient cash resources for investment in new and
existing investee companies and in continued payment of dividends to
shareholders. It is the Board's intention for such buy-backs to be in the region
of 10 to 15 per cent. discount to net asset value, so far as market conditions
and liquidity permit.

Results and dividends
As at 30 June 2012, the net asset value per Ordinary share was 73.9 pence (30
June 2011: 74.8 pence, 31 December 2011: 75.5 pence).

The D share net asset value per share at 30 June 2012 was 94.7 pence compared to
91.7 pence at 30 June 2011 and 93.0 pence at 31 December 2011.

The Ordinary share portfolio's total return before tax for the six months to 30
June 2012 was £306,000 compared to £539,000 for the six months to 30 June 2011,
and for the D shares it was a positive return of £230,000 compared to a loss of
£9,000.  Second dividends of 2.5 pence per Ordinary share and 1.75p per D share
will be paid on 28 September 2012 to those shareholders on the register on 31
August 2012.

Geoffrey Vero
Chairman
16 August 2012

Responsibility statement

The Directors, Geoffrey Vero, David Pinckney, Jonathan Thornton and Andy
Phillipps, are responsible for preparing the Half-yearly Financial Report. The
Directors have chosen to prepare this Half-yearly Financial Report for the
Company in accordance with United Kingdom Generally Accepted Accounting Practice
("UK GAAP").

In preparing these summarised Financial Statements for the period to 30 June
2012, we the Directors of the Company, confirm that to the best of our
knowledge:

(a) the summarised set of Financial Statements has been prepared in accordance
with the pronouncement on interim reporting issued by the Accounting Standards
Board;

(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);

(c) the summarised set of Financial Statements give a true and fair view in
accordance with UK GAAP of the assets, liabilities, financial position and
profit and loss of the Company for the six months ended 30 June 2012 and comply
with UK GAAP and Companies Act 1985 and 2006;  and

(d) the interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties' transactions and changes
therein).

The accounting policies applied to the Half-yearly Financial Report have been
consistently applied in current and prior periods and are those applied in the
Annual Report and Financial Statements for the year ended 31 December 2011.

This Half-yearly Financial Report has not been audited or reviewed by the
Auditor.

By order of the Board

Geoffrey Vero
Chairman
16 August 2012

Portfolio of investments (unaudited)
Ordinary shares

The following is a summary of qualifying fixed asset investments as at 30 June
2012:

+------------------+-----------------------------------------------------------+
|  | As at 30 June 2012 (unaudited) |
+------------------+-------------+------+-----------------+------+-------------+
| | | | | | Change in|
| | | | Cumulative| |value for the|
| | % voting| Cost|movement in value| Value| period *|
|Investee company | rights| £'000| £'000| £'000| £'000|
+------------------+-------------+------+-----------------+------+-------------+
|Asset-backed | | | | | |
|investments |  |  |  |  |  |
| | | | | | |
|The Weybridge Club| | | | | |
|Limited | 9.4| 1,520| (272)| 1,248| (20)|
| | | | | | |
|CS (Greenwich) | | | | | |
|Limited | 15.5| 800| 230| 1,030| 21|
| | | | | | |
|Radnor House | | | | | |
|School (Holdings) | | | | | |
|Limited | 4.2| 734| 216| 950| 10|
| | | | | | |
|The Street by | | | | | |
|Street Solar | | | | | |
|Programme Limited | 8.6| 862| 10| 872| 2|
| | | | | | |
|Kensington Health | | | | | |
|Clubs Limited | 4.9| 1,124| (359)| 765| (7)|
| | | | | | |
|Alto Prodotto Wind| | | | | |
|Limited | 7.8| 705| -| 705| (2)|
| | | | | | |
|Bravo Inns II | | | | | |
|Limited | 4.8| 690| (2)| 688| 22|
| | | | | | |
|CS (Brixton) | | | | | |
|Limited | 8.4| 356| 273| 629| 10|
| | | | | | |
|Regenerco | | | | | |
|Renewable Energy | | | | | |
|Limited | 3.0| 612| -| 612| (2)|
| | | | | | |
|Taunton Hospital | | | | | |
|Limited | 9.1| 576| (17)| 559| (18)|
| | | | | | |
|Tower Bridge | | | | | |
|Health Clubs | | | | | |
|Limited* | 7.9| 442| 114| 556| 18|
| | | | | | |
|The Q Garden | | | | | |
|Company Limited | 16.6| 1,198| (704)| 494| 4|
| | | | | | |
|The Charnwood Pub | | | | | |
|Company Limited | 3.3| 1,103| (663)| 440| 4|
| | | | | | |
|Nelson House | | | | | |
|Hospital Limited | 3.0| 277| 12| 289| 12|
| | | | | | |
|AVESI Limited | 8.0| 248| -| 248| -|
| | | | | | |
|TEG Biogas (Perth)| | | | | |
|Limited | 3.0| 182| 19| 201| 14|
| | | | | | |
|Bravo Inns Limited| 2.6| 230| (85)| 145| 4|
| | | | | | |
|Greenenerco | | | | | |
|Limited | 4.0| 140| -| 140| -|
| | | | | | |
|CS (Exeter) | | | | | |
|Limited | 8.3| 135| (15)| 120| 7|
| | | | | | |
|Premier Leisure | | | | | |
|(Suffolk) Limited | 6.5| 480| (372)| 108| (1)|
| | | | | | |
|CS (Norwich) | | | | | |
|Limited | 3.1| 50| 14| 64| 2|
| | | | | | |
|The Dunedin Pub | | | | | |
|Company VCT | | | | | |
|Limited | 6.2| 64| (3)| 61| -|
| | | | | | |
|City Screen | | | | | |
|(Liverpool) | | | | | |
|Limited | 4.5| 56| (9)| 47| 2|
| | | | | | |
|GB Pub Company VCT| | | | | |
|Limited | 9.1| 324| (297)| 27| (9)|
| | | | | | |
|Orchard Portman | | | | | |
|Hospital Limited | n/a| 9| -| 9| -|
| | | | | | |
|  |  |  |  |  |  |
+------------------+-------------+------+-----------------+------+-------------+
|Total asset-backed| | | | | |
|investments |  |12,917| (1,910)|11,007| 73|
+------------------+-------------+------+-----------------+------+-------------+

* as adjusted for additions, disposals and restructuring

+------------------------+-----------------------------------------------------+
|  | As at 30 June 2012 (unaudited) |
+------------------------+-----------+------+---------------+------+-----------+
| | | | | | Change in|
| | | | Cumulative| | value for|
| | | | movement in| | the period|
| | % voting| Cost| value| Value| *|
|Investee company | rights| £'000| £'000| £'000| £'000|
+------------------------+-----------+------+---------------+------+-----------+
|Growth investments |  |  |  |  |  |
| | | | | | |
|Blackbay Limited | 7.4| 819| 302| 1,121| 59|
| | | | | | |
|Peakdale Molecular | | | | | |
|Limited | 8.9| 908| 13| 921| 6|
| | | | | | |
|Lowcosttravelgroup | | | | | |
|Limited | 4.0| 435| 432| 867| 272|
| | | | | | |
|Hilson Moran Holdings | | | | | |
|Limited | 7.5| 532| 45| 577| 43|
| | | | | | |
|Mirada Medical Limited | 8.0| 240| 252| 492| 37|
| | | | | | |
|Mi-Pay Limited | 5.0| 677| (200)| 477| -|
| | | | | | |
|Helveta Limited | 4.1| 681| (260)| 421| -|
| | | | | | |
|Prime Care Holdings | | | | | |
|Limited | 9.4| 559| (248)| 311| (173)|
| | | | | | |
|Consolidated PR Limited | 21.7| 570| (261)| 309| (151)|
| | | | | | |
|Rostima Holdings Limited| 4.8| 94| 118| 212| (3)|
| | | | | | |
|Opta Sports Data Limited| 1.3| 165| 39| 204| 36|
| | | | | | |
|Masters Pharmaceuticals | | | | | |
|Limited | 1.0| 202| (7)| 195| 35|
| | | | | | |
|AMS Sciences Limited | | | | | |
|(formerly Xceleron | | | | | |
|Limited) | 4.2| 186| 9| 195| 10|
| | | | | | |
|Process Systems | | | | | |
|Enterprise Limited | 1.1| 118| 70| 188| 38|
| | | | | | |
|DySIS Medical Limited | 2.7| 423| (237)| 186| (47)|
| | | | | | |
|Chichester Holdings | | | | | |
|Limited | 10.6| 700| (559)| 141| 5|
| | | | | | |
|memsstar Limited | 1.8| 124| 1| 125| 1|
| | | | | | |
|Oxsensis Limited | 1.4| 213| (137)| 76| (55)|
| | | | | | |
|Abcodia Limited | 1.7| 60| -| 60| -|
| | | | | | |
|  |  |  |  |  |  |
+------------------------+-----------+------+---------------+------+-----------+
|Total growth investments|  | 7,706| (628)| 7,078| 113|
+------------------------+-----------+------+---------------+------+-----------+

+------------------------+-----------+------+---------------+------+-----------+
|Total qualifying | | | | | |
|investments |  |20,623| (2,538)|18,085| 186|
+------------------------+-----------+------+---------------+------+-----------+

*  as adjusted for additions, disposals and restructuring

Portfolio of investments (unaudited)
D shares

The following is a summary of qualifying fixed asset investments as at 30 June
2012:

+----------------------+-------------------------------------------------------+
|  | As at 30 June 2012 (unaudited) |
+----------------------+-------------+-----+----------------+-----+------------+
| | | | Cumulative| | Change in|
| | | | movement in| | value for|
| | % voting| Cost| value|Value|the period *|
|Investee company | rights|£'000| £'000|£'000| £'000|
+----------------------+-------------+-----+----------------+-----+------------+
|Radnor House School | | | | | |
|(Holdings) Limited | 4.6| 800| 248|1,048| 12|
| | | | | | |
|Nelson House Hospital | 8.6| 794| 36| 830| 35|
|Limited | | | | | |
| | | | | | |
|Regenerco Renewable | | | | | |
|Energy Limited | 8.0| 528| -| 528| (4)|
| | | | | | |
|Masters | | | | | |
|Pharmaceuticals | | | | | |
|Limited | 2.5| 506| (18)| 488| 88|
| | | | | | |
|TEG Biogas (Perth) | | | | | |
|Limited | 7.1| 428| 45| 473| 32|
| | | | | | |
|The Street by Street | | | | | |
|Solar Programme | | | | | |
|Limited | 3.8| 380| 3| 383| (8)|
| | | | | | |
|Hilson Moran Holdings | | | | | |
|Limited | 4.0| 284| 24| 308| 23|
| | | | | | |
|Bravo Inns II Limited | 1.6| 210| 11| 221| 7|
| | | | | | |
|Alto Prodotto Wind | | | | | |
|Limited | 1.5| 137| -| 137| (2)|
| | | | | | |
|AVESI Limited | 2.5| 76| -| 76| -|
| | | | | | |
|Abcodia Limited | 2.1| 75| -| 75| -|
+----------------------+-------------+-----+----------------+-----+------------+
|Total qualifying | | | | | |
|investments |  |4,218| 349|4,567| 183|
+----------------------+-------------+-----+----------------+-----+------------+

*  as adjusted for additions and disposals

Summary income statement (Combined) (unaudited)

+---------------+----+---------------------+---------------------+---------------------+
|  |  | Unaudited | Unaudited | Audited |
| | | six months ended | six months ended | year ended |
| | | 30 June 2012 | 30 June 2011 | 31 December 2011 |
+---------------+----+-------+-------+-----+-------+-------+-----+-------+-------+-----+
| | |Revenue|Capital|Total|Revenue|Capital|Total|Revenue|Capital|Total|
|  |Note| £'000| £'000|£'000| £'000| £'000|£'000| £'000| £'000|£'000|
+---------------+----+-------+-------+-----+-------+-------+-----+-------+-------+-----+
|  |  |  |  |  |  |  |  |  |  |  |
| | | | | | | | | | | |
|Gains on | | | | | | | | | | |
|investments | 3| -| 403| 403| -| 508| 508| -| 1,421|1,421|
| | | | | | | | | | | |
|Investment | | | | | | | | | | |
|income | 4| 583| -| 583| 447| -| 447| 1,038| -|1,038|
| | | | | | | | | | | |
|Investment | | | | | | | | | | |
|management fees|  | (82)| (246)|(328)| (80)| (239)|(319)| (162)| (484)|(646)|
| | | | | | | | | | | |
|Other expenses |  | (122)| -|(122)| (106)| -|(106)| (207)| -|(207)|
| +----+-------+-------+-----+-------+-------+-----+-------+-------+-----+
|Return on | | | | | | | | | | |
|ordinary | | | | | | | | | | |
|activities | | | | | | | | | | |
|before tax |  | 379| 157| 536| 261| 269| 530| 669| 937|1,606|
| | | | | | | | | | | |
|Tax | | | | | | | | | | |
|(charge)/credit| | | | | | | | | | |
|on ordinary | | | | | | | | | | |
|activities |  | (91)| 63| (28)| (60)| 52| (8)| (152)| 126| (26)|
| +----+-------+-------+-----+-------+-------+-----+-------+-------+-----+
|Return | | | | | | | | | | |
|attributable to| | | | | | | | | | |
|shareholders |  | 288| 220| 508| 201| 321| 522| 517| 1,063|1,580|
+---------------+----+-------+-------+-----+-------+-------+-----+-------+-------+-----+

Comparative figures have been extracted from the unaudited Half-yearly Financial
Report for the six months ended 30 June 2011 and the audited statutory accounts
for the year ended 31 December 2011.

The accompanying notes form an integral part of this Half-yearly Financial
Report.

The total column of this Summary income statement represents the profit and loss
account of the Company. The supplementary revenue and capital columns have been
prepared in accordance with The Association of Investment Companies' Statement
of Recommended Practice.

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

There are no recognised gains or losses other than the results for the periods
disclosed above. Accordingly, a Statement of total recognised gains and losses
is not required. The difference between the reported return on ordinary
activities before tax and the historical profit is due to the fair value
movements on investments. Accordingly, a note on historical cost profit and
losses has not been prepared.

Summary income statement (Ordinary shares) (unaudited)

+---------------+----+---------------------+---------------------+---------------------+
|  |  | Unaudited | Unaudited | Audited |
| | | six months ended | six months ended | year ended |
| | | 30 June 2012 | 30 June 2011 | 31 December 2011 |
+---------------+----+-------+-------+-----+-------+-------+-----+-------+-------+-----+
| | |Revenue|Capital|Total|Revenue|Capital|Total|Revenue|Capital|Total|
|  |Note| £'000| £'000|£'000| £'000| £'000|£'000| £'000| £'000|£'000|
+---------------+----+-------+-------+-----+-------+-------+-----+-------+-------+-----+
|  |  |  |  |  |  |  |  |  |  |  |
| | | | | | | | | | | |
|Gains on | 3| | | | | | | | | |
|investments | | -| 206| 206| -| 502| 502| -| 1,289|1,289|
| | | | | | | | | | | |
|Investment | | | | | | | | | | |
|income | 4| 457| -| 457| 372| -| 372| 827| -| 827|
| | | | | | | | | | | |
|Investment | | | | | | | | | | |
|management fees|  | (65)| (196)|(261)| (64)| (190)|(254)| (129)| (385)|(514)|
| | | | | | | | | | | |
|Other expenses |  | (96)| -| (96)| (81)| -| (81)| (159)| -|(159)|
| +----+-------+-------+-----+-------+-------+-----+-------+-------+-----+
|Return on | | | | | | | | | | |
|ordinary | | | | | | | | | | |
|activities | | | | | | | | | | |
|before tax |  | 296| 10| 306| 227| 312| 539| 539| 904|1,443|
| | | | | | | | | | | |
|Tax | | | | | | | | | | |
|(charge)/credit| | | | | | | | | | |
|on ordinary | | | | | | | | | | |
|activities |  | (71)| 50| (21)| (53)| 45| (8)| (120)| 100| (20)|
| +----+-------+-------+-----+-------+-------+-----+-------+-------+-----+
|Return | | | | | | | | | | |
|attributable to| | | | | | | | | | |
|shareholders |  | 225| 60| 285| 174| 357| 531| 419| 1,004|1,423|
+---------------+----+-------+-------+-----+-------+-------+-----+-------+-------+-----+
|Basic and | | | | | | | | | | |
|diluted return | | | | | | | | | | |
|per share | | | | | | | | | | |
|(pence)* | 6| 0.70| 0.20| 0.90| 0.60| 1.20| 1.80| 1.40| 3.30| 4.70|
+---------------+----+-------+-------+-----+-------+-------+-----+-------+-------+-----+

* Excluding treasury shares

Comparative figures have been extracted from the unaudited Half-yearly Financial
Report for the six months ended 30 June 2011 and the audited statutory accounts
for the year ended 31 December 2011.

The accompanying notes form an integral part of this Half-yearly Financial
Report.

The total column of this Summary income statement represents the profit and loss
account of the Company. The supplementary revenue and capital columns have been
prepared in accordance with The Association of Investment Companies' Statement
of Recommended Practice.

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

There are no recognised gains or losses other than the results for the periods
disclosed above. Accordingly, a Statement of total recognised gains and losses
is not required. The difference between the reported return on ordinary
activities before tax and the historical profit is due to the fair value
movements on investments. Accordingly, a note on historical cost profit and
losses has not been prepared.

Summary income statement (D shares) (unaudited)

+---------------+----+---------------------+----------------------+---------------------+
|  |  | Unaudited | Unaudited | Audited |
| | | six months ended | six months ended | year ended |
| | | 30 June 2012 | 30 June 2011 | 31 December 2011 |
+---------------+----+-------+-------+-----+-------+-------+------+-------+-------+-----+
| | |Revenue|Capital|Total|Revenue|Capital| Total|Revenue|Capital|Total|
|  |Note| £'000| £'000|£'000| £'000| £'000| £'000| £'000| £'000|£'000|
+---------------+----+-------+-------+-----+-------+-------+------+-------+-------+-----+
|  |  |  |  |  |  |  |  |  |  |  |
| | | | | | | | | | | |
|Gains on | 3| | | | | | | | | |
|investments | | -| 197| 197| -| 6| 6| -| 132| 132|
| | | | | | | | | | | |
|Investment | 4| | | | | | | | | |
|income | | 126| -| 126| 75| -| 75| 211| -| 211|
| | | | | | | | | | | |
|Investment |  | | | | | | | | | |
|management fees| | (17)| (50)| (67)| (16)| (49)| (65)| (33)| (99)|(132)|
| | | | | | | | | | | |
|Other expenses |  | (26)| -| (26)| (25)| -| (25)| (48)| -| (48)|
| +----+-------+-------+-----+-------+-------+------+-------+-------+-----+
|Return/(loss) |  | | | | | | | | | |
|on ordinary | | | | | | | | | | |
|activities | | | | | | | | | | |
|before tax | | 83| 147| 230| 34| (43)| (9)| 130| 33| 163|
| | | | | | | | | | | |
|Tax |  | | | | | | | | | |
|(charge)/credit| | | | | | | | | | |
|on ordinary | | | | | | | | | | |
|activities | | (20)| 13| (7)| (7)| 7| -| (32)| 26| (6)|
| +----+-------+-------+-----+-------+-------+------+-------+-------+-----+
|Return/(loss) |  | | | | | | | | | |
|attributable to| | | | | | | | | | |
|shareholders | | 63| 160| 223| 27| (36)| (9)| 98| 59| 157|
+---------------+----+-------+-------+-----+-------+-------+------+-------+-------+-----+
|Basic and | 6| | | | | | | | | |
|diluted | | | | | | | | | | |
|return/(loss) | | | | | | | | | | |
|per share | | | | | | | | | | |
|(pence) | | 1.00| 2.50| 3.50| 0.40| (0.60)|(0.20)| 1.60| 0.90| 2.50|
+---------------+----+-------+-------+-----+-------+-------+------+-------+-------+-----+

Comparative figures have been extracted from the unaudited Half-yearly Financial
Report for the six months ended 30 June 2011 and the audited statutory accounts
for the year ended 31 December 2011.

The accompanying notes form an integral part of this Half-yearly Financial
Report.

The total column of this Summary income statement represents the profit and loss
account of the Company. The supplementary revenue and capital columns have been
prepared in accordance with The Association of Investment Companies' Statement
of Recommended Practice.

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

There are no recognised gains or losses other than the results for the periods
disclosed above. Accordingly, a Statement of total recognised gains and losses
is not required. The difference between the reported loss on ordinary activities
before tax and the historical profit is due to the fair value movements on
investments. Accordingly, a note on historical cost profit and losses has not
been prepared.

Summary balance sheet (Combined) (unaudited)

+------------------------------+----+------------+------------+----------------+
|  | | Unaudited| Unaudited| Audited|
| | |30 June 2012|30 June 2011|31 December 2011|
| |Note| £'000| £'000| £'000|
+------------------------------+----+------------+------------+----------------+
|  |  |  |  |  |
| | | | | |
|Fixed asset investments |  | 23,595| 20,622| 21,113|
| | | | | |
|  |  |  |  |  |
| | | | | |
|Current assets |  |  |  |  |
| | | | | |
|Trade and other debtors |  | 120| 621| 131|
| | | | | |
|Current asset investments |  | 1,630| -| 637|
| | | | | |
|Cash at bank and in hand | 9| 4,711| 8,563| 7,195|
| | +------------+------------+----------------+
|  |  | 6,461| 9,184| 7,963|
| | | | | |
|  |  |  |  |  |
| | | | | |
|Creditors: amounts falling due| | | | |
|within one year |  | (435)| (800)| (262)|
| | +------------+------------+----------------+
|Net current assets |  | 6,026| 8,384| 7,701|
| | +------------+------------+----------------+
|Net assets |  | 29,621| 29,006| 28,814|
| | +------------+------------+----------------+
|  |  |  |  |  |
| | | | | |
|Capital and reserves |  |  |  |  |
| | | | | |
|Called up share capital |  | 20,863| 20,294| 20,088|
| | | | | |
|Share premium |  | 1,129| 620| 636|
| | | | | |
|Capital redemption reserve |  | 2,203| 1,667| 1,917|
| | | | | |
|Unrealised capital reserve |  | (2,358)| (5,497)| (3,143)|
| | | | | |
|Special reserve |  | 6,094| 9,333| 7,379|
| | | | | |
|Treasury shares reserve |  | (2,668)| (2,633)| (2,699)|
| | | | | |
|Realised capital reserve |  | 2,148| 3,615| 2,713|
| | | | | |
|Revenue reserve |  | 2,210| 1,607| 1,923|
| | +------------+------------+----------------+
|Total equity shareholders' | | | | |
|funds |  | 29,621| 29,006| 28,814|
+------------------------------+----+------------+------------+----------------+

Comparative figures have been extracted from the unaudited Half-yearly Financial
Report for the six months ended 30 June 2011 and the audited statutory accounts
for the year ended 31 December 2011.

The accompanying notes form an integral part of this Half-yearly Financial
Report.

These Financial Statements were approved by the Board of Directors and
authorised for issue on 16 August 2012, and were signed on its behalf by


Geoffrey Vero
Chairman

Company number: 3654040

Summary balance sheet (Ordinary shares) (unaudited)

+------------------------------+----+------------+------------+----------------+
|  | | Unaudited| Unaudited| Audited|
| | |30 June 2012|30 June 2011|31 December 2011|
| |Note| £'000| £'000| £'000|
+------------------------------+----+------------+------------+----------------+
|  |  |  |  |  |
| | | | | |
|Fixed asset investments |  | 19,028| 17,794| 17,147|
| | | | | |
|  |  |  |  |  |
| | | | | |
|Current assets |  |  |  |  |
| | | | | |
|Trade and other debtors |  | 107| 605| 101|
| | | | | |
|Current asset investments |  | 880| -| 137|
| | | | | |
|Cash at bank and in hand | 9| 3,926| 5,025| 5,734|
| | +------------+------------+----------------+
|  |  | 4,913| 5,630| 5,972|
| | | | | |
|  |  |  |  |  |
| | | | | |
|Creditors: amounts falling due| | | | |
|within one year |  | (349)| (235)| (214)|
| | +------------+------------+----------------+
|Net current assets |  | 4,564| 5,395| 5,758|
| | +------------+------------+----------------+
|Net assets |  | 23,592| 23,189| 22,905|
| | +------------+------------+----------------+
|  |  |  |  |  |
| | | | | |
|Capital and reserves |  |  |  |  |
| | | | | |
|Called up share capital | 7| 17,681| 17,122| 16,912|
| | | | | |
|Share premium |  | 1,122| 618| 631|
| | | | | |
|Capital redemption reserve |  | 2,203| 1,667| 1,917|
| | | | | |
|Unrealised capital reserve |  | (2,681)| (5,523)| (3,269)|
| | | | | |
|Special reserve |  | 3,618| 6,666| 4,792|
| | | | | |
|Treasury shares reserve |  | (2,668)| (2,633)| (2,699)|
| | | | | |
|Realised capital reserve |  | 2,297| 3,721| 2,825|
| | | | | |
|Revenue reserve |  | 2,020| 1,551| 1,796|
| | +------------+------------+----------------+
|Total equity shareholders' | | | | |
|funds |  | 23,592| 23,189| 22,905|
| | +------------+------------+----------------+
|Net asset value per share | | | | |
|(pence) * |  | 73.90| 74.80| 75.50|
+------------------------------+----+------------+------------+----------------+

*excluding treasury shares

Comparative figures have been extracted from the unaudited Half-yearly Financial
Report for the six months ended 30 June 2011 and the audited statutory accounts
for the year ended 31 December 2011.

The accompanying notes form an integral part of this Half-yearly Financial
Report.

Summary balance sheet (D shares) (unaudited)

+------------------------------+----+------------+------------+----------------+
|  | | Unaudited| Unaudited| Audited|
| | |30 June 2012|30 June 2011|31 December 2011|
| |Note| £'000| £'000| £'000|
+------------------------------+----+------------+------------+----------------+
|  |  |  |  |  |
| | | | | |
|Fixed asset investments |  | 4,567| 2,828| 3,966|
| | | | | |
|  |  |  |  |  |
| | | | | |
|Current assets |  |  |  |  |
| | | | | |
|Trade and other debtors |  | 13| 16| 30|
| | | | | |
|Current asset investments |  | 750| -| 500|
| | | | | |
|Cash at bank and in hand | 9| 785| 3,538| 1,461|
| | +------------+------------+----------------+
|  |  | 1,548| 3,554| 1,991|
| | | | | |
|  |  |  |  |  |
| | | | | |
|Creditors: amounts falling due| | | | |
|within one year |  | (86)| (565)| (48)|
| | +------------+------------+----------------+
|Net current assets |  | 1,462| 2,989| 1,943|
| | +------------+------------+----------------+
|Net assets |  | 6,029| 5,817| 5,909|
| | +------------+------------+----------------+
|  |  |  |  |  |
| | | | | |
|Capital and reserves |  |  |  |  |
| | | | | |
|Called up share capital | 7| 3,182| 3,172| 3,176|
| | | | | |
|Share premium |  | 7| 2| 5|
| | | | | |
|Unrealised capital reserve |  | 323| 26| 126|
| | | | | |
|Special reserve |  | 2,476| 2,667| 2,587|
| | | | | |
|Realised capital reserve |  | (149)| (106)| (112)|
| | | | | |
|Revenue reserve |  | 190| 56| 127|
| | +------------+------------+----------------+
|Total equity shareholders' | | | | |
|funds |  | 6,029| 5,817| 5,909|
| | +------------+------------+----------------+
|Net asset value per share | | | | |
|(pence) * |  | 94.70| 91.70| 93.00|
+------------------------------+----+------------+------------+----------------+

*excluding treasury shares

Comparative figures have been extracted from the unaudited Half-yearly Financial
Report for the six months ended 30 June 2011 and the audited statutory accounts
for the year ended 31 December 2011.

The accompanying notes form an integral part of this Half-yearly Financial
Report.

Summary reconciliation of movements in shareholders' funds (Combined)
(unaudited)

+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+
| |Called-| | | | | | | | |
| | up| | Capital|Unrealised| |Treasury|Realised| | |
| | share| Share|redemption| capital| Special| shares| capital| Revenue| |
|  |capital|premium| reserve| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
| | | | | | | | | | |
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+
|As at 1 | | | | | | | | | |
|January | | | | | | | | | |
|2012 | | | | | | | | | |
|(audited) | 20,088| 636| 1,917| (3,143)| 7,379| (2,699)| 2,713| 1,923|28,814|
| | | | | | | | | | |
|Net realised| | | | | | | | | |
|gains on | | | | | | | | | |
|investments | -| -| -| -| -| -| 5| -| 5|
| | | | | | | | | | |
|Unrealised | | | | | | | | | |
|gains on | | | | | | | | | |
|investments | -| -| -| 398| -| -| -| -| 398|
| | | | | | | | | | |
|Transfer of | | | | | | | | | |
|unrealised | | | | | | | | | |
|losses to | | | | | | | | | |
|realised | | | | | | | | | |
|losses | -| -| -| 387| -| -| (387)| -| -|
| | | | | | | | | | |
|Capitalised | | | | | | | | | |
|investment | | | | | | | | | |
|management | | | | | | | | | |
|fees | -| -| -| -| -| -| (246)| -| (246)|
| | | | | | | | | | |
|Tax relief | | | | | | | | | |
|on costs | | | | | | | | | |
|charged to | | | | | | | | | |
|capital | -| -| -| -| -| -| 63| -| 63|
| | | | | | | | | | |
|Cancellation| | | | | | | | | |
|of own | | | | | | | | | |
|treasury | | | | | | | | | |
|shares | (20)| -| 20| -| (31)| 31| -| -| -|
| | | | | | | | | | |
|Issue of | | | | | | | | | |
|equity (net | | | | | | | | | |
|of costs) | 1,061| 493| -| -| -| -| -| -| 1,554|
| | | | | | | | | | |
|Own shares | | | | | | | | | |
|purchased | | | | | | | | | |
|for | | | | | | | | | |
|cancellation| (266)| -| 266| -| (345)| -| -| -| (345)|
| | | | | | | | | | |
|Revenue | | | | | | | | | |
|return | | | | | | | | | |
|attributable| | | | | | | | | |
|to | | | | | | | | | |
|shareholders| -| -| -| -| -| -| -| 288| 288|
| | | | | | | | | | |
|Transfer | | | | | | | | | |
|from special| | | | | | | | | |
|reserve to | | | | | | | | | |
|revenue | | | | | | | | | |
|reserve | -| -| -| -| (909)| -| -| 909| -|
| | | | | | | | | | |
|Dividends | | | | | | | | | |
|paid | -| -| -| -| -| -| -| (909)| (909)|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+
|As at 30 | | | | | | | | | |
|June 2012 | | | | | | | | | |
|(unaudited) | 20,863| 1,129| 2,203| (2,358)| 6,094| (2,668)| 2,148| 2,210|29,621|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+

(Combined) (unaudited)

+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+
| |Called-| | | | | | | | |
| | up| | Capital|Unrealised| |Treasury|Realised| | |
| | share| Share|redemption| capital| Special| shares| capital| Revenue| |
|  |capital|premium| reserve| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
| | | | | | | | | | |
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+
|As at 1 | | | | | | | | | |
|January | | | | | | | | | |
|2011 | | | | | | | | | |
|(audited) | 19,388| 37| 1,426| (5,063)| 10,497| (2,633)| 2,860| 1,406|27,918|
| | | | | | | | | | |
|Net realised| | | | | | | | | |
|gains on | | | | | | | | | |
|investments | -| -| -| -| -| -| 1,448| -| 1,448|
| | | | | | | | | | |
|Unrealised | | | | | | | | | |
|losses on | | | | | | | | | |
|investments | -| -| -| (940)| -| -| -| -| (940)|
| | | | | | | | | | |
|Transfer of | | | | | | | | | |
|unrealised | | | | | | | | | |
|losses to | | | | | | | | | |
|realised | | | | | | | | | |
|losses | -| -| -| 506| -| -| (506)| -| -|
| | | | | | | | | | |
|Capitalised | | | | | | | | | |
|investment | | | | | | | | | |
|management | | | | | | | | | |
|fees | -| -| -| -| -| -| (239)| -| (239)|
| | | | | | | | | | |
|Tax relief | | | | | | | | | |
|on costs | | | | | | | | | |
|charged to | | | | | | | | | |
|capital | -| -| -| -| -| -| 52| -| 52|
| | | | | | | | | | |
|Purchase of | | | | | | | | | |
|own treasury| | | | | | | | | |
|shares | (241)| -| 241| -| (305)| -| -| -| (305)|
| | | | | | | | | | |
|Issue of | | | | | | | | | |
|equity (net | | | | | | | | | |
|of costs) | 1,147| 583| -| -| -| -| -| -| 1,730|
| | | | | | | | | | |
|Transfer | | | | | | | | | |
|from special| | | | | | | | | |
|reserve to | | | | | | | | | |
|revenue | | | | | | | | | |
|reserve | -| -| -| -| (859)| -| -| 859| -|
| | | | | | | | | | |
|Revenue | | | | | | | | | |
|return | | | | | | | | | |
|attributable| | | | | | | | | |
|to | | | | | | | | | |
|shareholders| -| -| -| -| -| -| -| 201| 201|
| | | | | | | | | | |
|Dividends | | | | | | | | | |
|paid | -| -| -| -| -| -| -| (859)| (859)|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+
|As at 30 | | | | | | | | | |
|June 2011 | | | | | | | | | |
|(unaudited) | 20,294| 620| 1,667| (5,497)| 9,333| (2,633)| 3,615| 1,607|29,006|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+

(Combined) (unaudited)

+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
| |Called-| | | | | | | | |
| | up| | Capital|Unrealised| |Treasury|Realised| | |
| | share| Share|redemption| capital| Special| shares| capital| Revenue| |
|  |capital|premium| reserve| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
| | | | | | | | | | |
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
|As at 1 | | | | | | | | | |
|January | | | | | | | | | |
|2011 | | | | | | | | | |
|(audited) | 19,388| 37| 1,426| (5,063)| 10,497| (2,633)| 2,860| 1,406| 27,918|
| | | | | | | | | | |
|Net realised| | | | | | | | | |
|gains on | | | | | | | | | |
|investments | -| -| -| -| -| -| 1,340| -| 1,340|
| | | | | | | | | | |
|Unrealised | | | | | | | | | |
|gains on | | | | | | | | | |
|investments | -| -| -| 81| -| -| -| -| 81|
| | | | | | | | | | |
|Transfer of | | | | | | | | | |
| unrealised | | | | | | | | | |
|losses to | | | | | | | | | |
|realised | | | | | | | | | |
|losses | -| -| -| 1,839| -| -| (1,839)| -| -|
| | | | | | | | | | |
|Capitalised | | | | | | | | | |
|investment | | | | | | | | | |
|management | | | | | | | | | |
|fees | -| -| -| -| -| -| (484)| -| (484)|
| | | | | | | | | | |
|Tax relief | | | | | | | | | |
|on costs | | | | | | | | | |
|charged to | | | | | | | | | |
|capital | -| -| -| -| -| -| 126| -| 126|
| | | | | | | | | | |
|Purchase of | | | | | | | | | |
|own treasury| | | | | | | | | |
|shares | -| -| -| -| -| (462)| -| -| (462)|
| | | | | | | | | | |
|Cancellation| | | | | | | | | |
|of treasury | | | | | | | | | |
|shares | (250)| -| 250| -| (396)| 396| -| -| -|
| | | | | | | | | | |
|Purchase of | | | | | | | | | |
|own shares | | | | | | | | | |
|for | | | | | | | | | |
|cancellation| (241)| -| 241| -| (306)| -| -| -| (306)|
| | | | | | | | | | |
|Issue of | | | | | | | | | |
|equity (net | | | | | | | | | |
|of costs) | 1,191| 599| -| -| -| -| -| -| 1,790|
| | | | | | | | | | |
|Transfer | | | | | | | | | |
|from special| | | | | | | | | |
|reserve to | | | | | | | | | |
|realised | | | | | | | | | |
|reserve | -| -| -| -| (1,705)| -| -| 1,705| -|
| | | | | | | | | | |
|Transfer | | | | | | | | | |
|from special| | | | | | | | | |
|reserve to | | | | | | | | | |
|realised | | | | | | | | | |
|capital | | | | | | | | | |
|reserve | -| -| -| -| (711)| -| 711| -| -|
| | | | | | | | | | |
|Revenue | | | | | | | | | |
|return | | | | | | | | | |
|attributable| | | | | | | | | |
|to | | | | | | | | | |
|shareholders| -| -| -| -| -| -| -| 517| 517|
| | | | | | | | | | |
|Dividends | | | | | | | | | |
|paid | -| -| -| -| -| -| -| (1,705)|(1,705)|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
|As at 31 | | | | | | | | | |
|December | | | | | | | | | |
|2011 | | | | | | | | | |
|(audited) | 20,088| 636| 1,917| (3,143)| 7,379| (2,699)| 2,713| 1,923| 28,814|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+

*Included within these reserves is an amount of £5,426,000 (30 June 2011:
£6,425,000; 31 December 2011: £6,173,000) which is considered distributable. The
special reserve has been treated as distributable in determining the amounts
available for distribution.

Summary reconciliation of movements in shareholders' funds (Ordinary shares)
(unaudited)

+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+
| |Called-| | | | | | | | |
| | up| | Capital|Unrealised| |Treasury|Realised| | |
| | share| Share|redemption| capital| Special| shares| capital| Revenue| |
|  |capital|premium| reserve| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
| | | | | | | | | | |
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+
|As at 1 | | | | | | | | | |
|January | | | | | | | | | |
|2012 | | | | | | | | | |
|(audited) | 16,912| 631| 1,917| (3,269)| 4,792| (2,699)| 2,825| 1,796|22,905|
| | | | | | | | | | |
|Net realised| | | | | | | | | |
|gains on | | | | | | | | | |
|investments | -| -| -| -| -| -| 5| -| 5|
| | | | | | | | | | |
|Unrealised | | | | | | | | | |
|losses on | | | | | | | | | |
|investments | -| -| -| 201| -| -| -| -| 201|
| | | | | | | | | | |
|Transfer of | | | | | | | | | |
|unrealised | | | | | | | | | |
|losses to | | | | | | | | | |
|realised | | | | | | | | | |
|losses | -| -| -| 387| -| -| (387)| -| -|
| | | | | | | | | | |
|Capitalised | | | | | | | | | |
|investment | | | | | | | | | |
|management | | | | | | | | | |
|fees | -| -| -| -| -| -| (196)| -| (196)|
| | | | | | | | | | |
|Tax relief | | | | | | | | | |
|on costs | | | | | | | | | |
|charged to | | | | | | | | | |
|capital | -| -| -| -| -| -| 50| -| 50|
| | | | | | | | | | |
|Cancellation| | | | | | | | | |
|of own | | | | | | | | | |
|treasury | | | | | | | | | |
|shares | (20)| -| 20| -| (31)| 31| -| -| -|
| | | | | | | | | | |
|Issue of | | | | | | | | | |
|equity (net | | | | | | | | | |
|of costs) | 1,055| 491| -| -| -| -| -| -| 1,546|
| | | | | | | | | | |
|Own shares | | | | | | | | | |
|purchased | | | | | | | | | |
|for | | | | | | | | | |
|cancellation| (266)| -| 266| -| (345)| -| -| -| (345)|
| | | | | | | | | | |
|Revenue | | | | | | | | | |
|return | | | | | | | | | |
|attributable| | | | | | | | | |
|to | | | | | | | | | |
|shareholders| -| -| -| -| -| -| -| 225| 225|
| | | | | | | | | | |
|Transfer | | | | | | | | | |
|from special| | | | | | | | | |
|reserve to | | | | | | | | | |
|revenue | | | | | | | | | |
|reserve | -| -| -| -| (798)| -| -| 798| -|
| | | | | | | | | | |
|Dividends | | | | | | | | | |
|paid | -| -| -| -| -| -| -| (798)| (798)|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+
|As at 30 | | | | | | | | | |
|June 2012 | | | | | | | | | |
|(unaudited) | 17,681| 1,122| 2,203| (2,681)| 3,618| (2,668)| 2,297| 2,020|23,592|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+

(Ordinary shares) (unaudited)

+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+
| |Called-| | | | | | | | |
| | up| | Capital|Unrealised| |Treasury|Realised| | |
| | share| Share|redemption| capital| Special| shares| capital| Revenue| |
|  |capital|premium| reserve| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
| | | | | | | | | | |
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+
|As at 1 | | | | | | | | | |
|January | | | | | | | | | |
|2011 | | | | | | | | | |
|(audited) | 16,220| 37| 1,426| (5,083)| 7,752| (2,633)| 2,924| 1,377|22,020|
| | | | | | | | | | |
|Net realised| | | | | | | | | |
|gains on | | | | | | | | | |
|investments | -| -| -| -| -| -| 1,448| -| 1,448|
| | | | | | | | | | |
|Unrealised | | | | | | | | | |
|losses on | | | | | | | | | |
|investments | -| -| -| (946)| -| -| -| -| (946)|
| | | | | | | | | | |
|Transfer of | | | | | | | | | |
|unrealised | | | | | | | | | |
|losses to | | | | | | | | | |
|realised | | | | | | | | | |
|losses | -| -| -| 506| -| -| (506)| -| -|
| | | | | | | | | | |
|Capitalised | | | | | | | | | |
|investment | | | | | | | | | |
|management | | | | | | | | | |
|fees | -| -| -| -| -| -| (190)| -| (190)|
| | | | | | | | | | |
|Tax relief | | | | | | | | | |
|on costs | | | | | | | | | |
|charged to | | | | | | | | | |
|capital | -| -| -| -| -| -| 45| -| 45|
| | | | | | | | | | |
|Purchase of | | | | | | | | | |
|own treasury| | | | | | | | | |
|shares | (241)| -| 241| -| (305)| -| -| -| (305)|
| | | | | | | | | | |
|Issue of | | | | | | | | | |
|equity (net | | | | | | | | | |
|of costs) | 1,143| 581| -| -| -| -| -| -| 1,724|
| | | | | | | | | | |
|Transfer | | | | | | | | | |
|from special| | | | | | | | | |
|reserve to | | | | | | | | | |
|revenue | | | | | | | | | |
|reserve | -| -| -| -| (781)| -| -| 781| -|
| | | | | | | | | | |
|Revenue | | | | | | | | | |
|return | | | | | | | | | |
|attributable| | | | | | | | | |
|to | | | | | | | | | |
|shareholders| -| -| -| -| -| -| -| 174| 174|
| | | | | | | | | | |
|Dividends | | | | | | | | | |
|paid | -| -| -| -| -| -| -| (781)| (781)|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+
|As at 30 | | | | | | | | | |
|June 2011 | | | | | | | | | |
|(unaudited) | 17,122| 618| 1,667| (5,523)| 6,666| (2,633)| 3,721| 1,551|23,189|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+

(Ordinary shares) (unaudited)

+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
| |Called-| | | | | | | | |
| | up| | Capital|Unrealised| |Treasury|Realised| | |
| | share| Share|redemption| capital| Special| shares| capital| Revenue| |
|  |capital|premium| reserve| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
| | | | | | | | | | |
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
|As at 1 | | | | | | | | | |
|January | | | | | | | | | |
|2011 | | | | | | | | | |
|(audited) | 16,220| 37| 1,426| (5,083)| 7,752| (2,633)| 2,924| 1,377| 22,020|
| | | | | | | | | | |
|Net realised| | | | | | | | | |
|gains on | | | | | | | | | |
|investments | -| -| -| -| -| -| 1,314| -| 1,314|
| | | | | | | | | | |
|Unrealised | | | | | | | | | |
|losses on | | | | | | | | | |
|investments | -| -| -| (25)| -| -| -| -| (25)|
| | | | | | | | | | |
|Transfer of | | | | | | | | | |
|unrealised | | | | | | | | | |
|losses to | | | | | | | | | |
|realised | | | | | | | | | |
|losses | -| -| -| 1,839| -| -| (1,839)| -| -|
| | | | | | | | | | |
|Capitalised | | | | | | | | | |
|investment | | | | | | | | | |
|management | | | | | | | | | |
|fees | -| -| -| -| -| -| (385)| -| (385)|
| | | | | | | | | | |
|Tax relief | | | | | | | | | |
|on costs | | | | | | | | | |
|charged to | | | | | | | | | |
|capital | -| -| -| -| -| -| 100| -| 100|
| | | | | | | | | | |
|Purchase of | | | | | | | | | |
|own treasury| | | | | | | | | |
|shares | -| -| -| -| -| (462)| -| -| (462)|
| | | | | | | | | | |
|Cancellation| | | | | | | | | |
|of shares | | | | | | | | | |
|out of | | | | | | | | | |
|treasury | (250)| -| 250| -| (396)| 396| -| -| -|
| | | | | | | | | | |
|Purchase of | | | | | | | | | |
|own shares | | | | | | | | | |
|for | | | | | | | | | |
|cancellation| (241)| -| 241| -| (306)| -| -| -| (306)|
| | | | | | | | | | |
|Issue of | | | | | | | | | |
|equity (net | | | | | | | | | |
|of costs) | 1,183| 594| -| -| -| -| -| -| 1,777|
| | | | | | | | | | |
|Transfer | | | | | | | | | |
|from special| | | | | | | | | |
|reserve to | | | | | | | | | |
|revenue | | | | | | | | | |
|reserve | -| -| -| -| (1,547)| -| -| 1,547| -|
| | | | | | | | | | |
|Transfer | | | | | | | | | |
|from special| | | | | | | | | |
|reserve to | | | | | | | | | |
|realised | | | | | | | | | |
|capital | | | | | | | | | |
|reserve | -| -| -| -| (711)| -| 711| -| -|
| | | | | | | | | | |
|Revenue | | | | | | | | | |
|return | | | | | | | | | |
|attributable| | | | | | | | | |
|to | | | | | | | | | |
|shareholders| -| -| -| -| -| -| -| 419| 419|
| | | | | | | | | | |
|Dividends | | | | | | | | | |
|paid | -| -| -| -| -| -| -| (1,547)|(1,547)|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
|As at 31 | | | | | | | | | |
|December | | | | | | | | | |
|2011 | | | | | | | | | |
|(audited) | 16,912| 631| 1,917| (3,269)| 4,792| (2,699)| 2,825| 1,796| 22,905|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+

*Included within these reserves is an amount of £2,586,000 (30 June 2011:
£3,782,000; 31 December 2011: £3,445,000) which is considered distributable. The
special reserve has been treated as distributable in determining the amounts
available for distribution.

An amount of £798,000 has been transferred from the special reserve to the
revenue reserve representing dividends paid from the revenue reserve.

Summary reconciliation of movements in shareholders' funds (D shares)
(unaudited)

+------------+-------+-------+----------+----------+--------+--------+--------+-----+
| |Called-| | | | | | | |
| | up| | Capital|Unrealised| |Realised| | |
| | share| Share|redemption| capital| Special| capital| Revenue| |
|  |capital|premium| reserve| reserve|reserve*|reserve*|reserve*|Total|
| | | | | | | | | |
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000|£'000|
+------------+-------+-------+----------+----------+--------+--------+--------+-----+
|As at 1 | | | | | | | | |
|January | | | | | | | | |
|2012 | | | | | | | | |
|(audited) | 3,176| 5| -| 126| 2,587| (112)| 127|5,909|
| | | | | | | | | |
|Unrealised | | | | | | | | |
|gains | -| -| -| 197| -| -| -| 197|
| | | | | | | | | |
|Capitalised | | | | | | | | |
|investment | | | | | | | | |
|management | | | | | | | | |
|fees | -| -| -| -| -| (50)| -| (50)|
| | | | | | | | | |
|Tax relief | | | | | | | | |
|on costs | | | | | | | | |
|charged to | | | | | | | | |
|capital | -| -| -| -| -| 13| -| 13|
| | | | | | | | | |
|Issue of | | | | | | | | |
|equity (net | | | | | | | | |
|of costs) | 6| 2| -| -| -| -| -| 8|
| | | | | | | | | |
|Revenue | | | | | | | | |
|return | | | | | | | | |
|attributable| | | | | | | | |
|to | | | | | | | | |
|shareholders| -| -| -| -| -| -| 63| 63|
| | | | | | | | | |
|Transfer | | | | | | | | |
|from special| | | | | | | | |
|reserve to | | | | | | | | |
|revenue | | | | | | | | |
|reserve | -| -| -| -| (111)| -| 111| -|
| | | | | | | | | |
|Dividends | | | | | | | | |
|paid | -| -| -| -| -| -| (111)|(111)|
+------------+-------+-------+----------+----------+--------+--------+--------+-----+
|As at 30 | | | | | | | | |
|June 2012 | | | | | | | | |
|(unaudited) | 3,182| 7| -| 323| 2,476| (149)| 190|6,029|
+------------+-------+-------+----------+----------+--------+--------+--------+-----+

+------------+-------+-------+----------+----------+--------+--------+--------+-----+
| |Called-| | | | | | | |
| | up| | Capital|Unrealised| |Realised| | |
| | share| Share|redemption| capital| Special| capital| Revenue| |
|  |capital|premium| reserve| reserve|reserve*|reserve*|reserve*|Total|
| | | | | | | | | |
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000|£'000|
+------------+-------+-------+----------+----------+--------+--------+--------+-----+
|As at 1 | | | | | | | | |
|January | | | | | | | | |
|2011 | | | | | | | | |
|(audited) | 3,168| -| -| 20| 2,745| (64)| 29|5,898|
| | | | | | | | | |
|Unrealised | | | | | | | | |
|gains on | | | | | | | | |
|investments | -| -| -| 6| -| -| -| 6|
| | | | | | | | | |
|Capitalised | | | | | | | | |
|investment | | | | | | | | |
|management | | | | | | | | |
|fees | -| -| -| -| -| (49)| -| (49)|
| | | | | | | | | |
|Tax relief | | | | | | | | |
|on costs | | | | | | | | |
|charged to | | | | | | | | |
|capital | -| -| -| -| -| 7| -| 7|
| | | | | | | | | |
|Issue of | | | | | | | | |
|equity (net | | | | | | | | |
|of costs) | 4| 2| -| -| -| -| -| 6|
| | | | | | | | | |
|Transfer | | | | | | | | |
|from special| | | | | | | | |
|reserve to | | | | | | | | |
|revenue | | | | | | | | |
|reserve | -| -| -| -| (78)| -| 78| -|
| | | | | | | | | |
|Revenue | | | | | | | | |
|return | | | | | | | | |
|attributable| | | | | | | | |
|to | | | | | | | | |
|shareholders| -| -| -| -| -| -| 27| 27|
| | | | | | | | | |
|Dividends | | | | | | | | |
|paid | -| -| -| -| -| -| (78)| (78)|
+------------+-------+-------+----------+----------+--------+--------+--------+-----+
|As at 30 | | | | | | | | |
|June   2011 | | | | | | | | |
|(unaudited) | 3,172| 2| -| 26| 2,667| (106)| 56|5,817|
+------------+-------+-------+----------+----------+--------+--------+--------+-----+

(D shares) (unaudited)

+------------+-------+-------+----------+----------+--------+--------+--------+-----+
| |Called-| | | | | | | |
| | up| | Capital|Unrealised| |Realised| | |
| | share| Share|redemption| capital| Special| capital| Revenue| |
|  |capital|premium| reserve| reserve|reserve*|reserve*|reserve*|Total|
| | | | | | | | | |
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000|£'000|
+------------+-------+-------+----------+----------+--------+--------+--------+-----+
|As at 1 | | | | | | | | |
|January | | | | | | | | |
|2011 | | | | | | | | |
|(audited) | 3,168| -| -| 20| 2,745| (64)| 29|5,898|
| | | | | | | | | |
|Net realised| | | | | | | | |
|gains on | | | | | | | | |
|investments | -| -| -| -| -| 26| -| 26|
| | | | | | | | | |
|Unrealised | | | | | | | | |
|gains on | | | | | | | | |
|investments | -| -| -| 106| -| -| -| 106|
| | | | | | | | | |
|Capitalised | | | | | | | | |
|investment | | | | | | | | |
|management | | | | | | | | |
|fees | -| -| -| -| -| (99)| -| (99)|
| | | | | | | | | |
|Tax relief | | | | | | | | |
|on costs | | | | | | | | |
|charged to | | | | | | | | |
|capital | -| -| -| -| -| 26| -| 26|
| | | | | | | | | |
|Issue of | | | | | | | | |
|equity (net | | | | | | | | |
|of costs) | 8| 5| -| -| -| -| -| 13|
| | | | | | | | | |
|Transfer | | | | | | | | |
|from special| | | | | | | | |
|reserve to | | | | | | | | |
|revenue | | | | | | | | |
|reserve | -| -| -| -| (158)| -| 158| -|
| | | | | | | | | |
|Revenue | | | | | | | | |
|return | | | | | | | | |
|attributable| | | | | | | | |
|to | | | | | | | | |
|shareholders| -| -| -| -| -| -| 98| 98|
| | | | | | | | | |
|Dividends | | | | | | | | |
|paid | -| -| -| -| -| -| (158)|(158)|
+------------+-------+-------+----------+----------+--------+--------+--------+-----+
|As at 31 | | | | | | | | |
|December | | | | | | | | |
| 2011 | | | | | | | | |
|(audited) | 3,176| 5| -| 126| 2,587| (112)| 127|5,909|
+------------+-------+-------+----------+----------+--------+--------+--------+-----+

*Included within these reserves is an amount of £2,517,000 (30 June 2011:
£2,617,000; 31 December 2011: £2,602,000) which is considered distributable. The
special reserve has been treated as distributable in determining the amounts
available for distribution.

An amount of £111,000 has been transferred from special reserve to the revenue
reserve representing dividends paid from the revenue reserve.

Summary cash flow statement (Combined) (unaudited)

+----------------------+----+----------------+----------------+----------------+
|  | | Unaudited| Unaudited| Audited|
| | |six months ended|six months ended| year ended|
| | | 30 June 2012| 30 June 2011|31 December 2011|
| |Note| £'000| £'000| £'000|
+----------------------+----+----------------+----------------+----------------+
|Operating activities |  |  |  |  |
| | | | | |
|Investment income | | | | |
|received |  | 566| 330| 873|
| | | | | |
|Deposit interest | | | | |
|received |  | 66| 41| 93|
| | | | | |
|Dividend income | | | | |
|received |  | -| -| 19|
| | | | | |
|Other income received |  | -| -| 1|
| | | | | |
|Investment management | | | | |
|fees paid |  | (324)| (315)| (643)|
| | | | | |
|Administrative | | | | |
|expenses paid |  | (124)| (123)| (224)|
| | +----------------+----------------+----------------+
|Net cash flow from | | | | |
|operating activities | 8| 184| (67)| 119|
| | +----------------+----------------+----------------+
|  |  |  |  |  |
| | | | | |
|Taxation |  |  |  |  |
| | | | | |
|UK corporation tax | | | | |
|received |  | 10| 140| 125|
| | +----------------+----------------+----------------+
|  |  |  |  |  |
| | | | | |
|Capital expenditure | | | | |
|and financial | | | | |
|investments |  |  |  |  |
| | | | | |
|Purchase of fixed | | | | |
|asset investments |  | (2,446)| (2,399)| (5,311)|
| | | | | |
|Disposal of fixed | | | | |
|asset investments |  | 466| 1,813| 4,932|
| | | | | |
|Purchase of current | | | | |
|asset investments |  | (1,000)| -| (500)|
| | +----------------+----------------+----------------+
|Net cash flow from | | | | |
|investing activities |  | (2,980)| (586)| (879)|
| | +----------------+----------------+----------------+
|  |  |  |  |  |
| | | | | |
|Equity dividends paid |  |  |  |  |
| | | | | |
|Dividends paid (net of| | | | |
|cost of issuing shares| | | | |
|under the Dividend | | | | |
|Reinvestment Scheme) |  | (833)| (801)| (1,585)|
| | +----------------+----------------+----------------+
|Net cash flow before | | | | |
|financing |  | (3,619)| (1,314)| (2,220)|
| | +----------------+----------------+----------------+
|  |  |  |  |  |
| | | | | |
|Financing |  |  |  |  |
| | | | | |
|Purchase of own shares|  | (350)| (306)| (768)|
| | | | | |
|Issue of share capital| | | | |
|(net of costs) |  | 1,485| 1,671| 1,671|
| | +----------------+----------------+----------------+
|Net cash flow from | | | | |
|financing |  | 1,135| 1,365| 903|
| | +----------------+----------------+----------------+
|Cash flow in the | |  | | |
|period | 9| (2,484)| 51| (1,317)|
+----------------------+----+----------------+----------------+----------------+

Summary cash flow statement (Ordinary shares) (unaudited)

+----------------------+----+----------------+----------------+----------------+
| | | Unaudited| Unaudited| Audited|
| | |six months ended|six months ended| year ended|
| | | 30 June 2012| 30 June 2011|31 December 2011|
|  |Note| £'000| £'000| £'000|
+----------------------+----+----------------+----------------+----------------+
|Operating activities |  |  |  |  |
| | | | | |
|Investment income | | | | |
|received |  | 443| 286| 755|
| | | | | |
|Deposit interest | | | | |
|received |  | 38| 18| 55|
| | | | | |
|Dividend income | | | | |
|received |  | -| -| 19|
| | | | | |
|Other income received |  | -| -| 1|
| | | | | |
|Investment management | | | | |
|fees paid |  | (258)| (249)| (511)|
| | | | | |
|Administrative | | | | |
|expenses paid |  | (91)| (101)| (174)|
| | | | | |
|Interclass account | | | | |
|movement |  | -| (495)| -|
| | +----------------+----------------+----------------+
|Net cash flow from | | | | |
|operating activities | 8| 132| (541)| 145|
| | +----------------+----------------+----------------+
|  |  |  |  |  |
| | | | | |
|Taxation |  |  |  |  |
| | | | | |
|UK corporation tax | | | | |
|received |  | 10| 140| 125|
| | +----------------+----------------+----------------+
|  |  |  |  |  |
| | | | | |
|Capital expenditure | | | | |
|and financial | | | | |
|investments |  |  |  |  |
| | | | | |
|Purchase of fixed | | | | |
|asset investments |  | (2,031)| (1,250)| (3,131)|
| | | | | |
|Disposal of fixed | | | | |
|asset investments |  | 430| 1,813| 4,906|
| | | | | |
|Purchase of current | | | | |
|asset investments |  | (750)| -| -|
| | +----------------+----------------+----------------+
|Net cash flow from | | | | |
|investing activities |  | (2,351)| 563| 1,775|
| | +----------------+----------------+----------------+
|  |  |  |  |  |
| | | | | |
|Equity dividends paid |  |  |  |  |
| | | | | |
|Dividends paid (net of| | | | |
|cost of issuing shares| | | | |
|under the Dividend | | | | |
|Reinvestment Scheme) |  | (734)| (729)| (1,441)|
| | +----------------+----------------+----------------+
|Net cash flow before | | | | |
|financing |  | (2,943)| (567)| 604|
| | +----------------+----------------+----------------+
|  |  |  |  |  |
| | | | | |
|Financing |  |  |  |  |
| | | | | |
|Purchase of own shares|  | (350)| (306)| (768)|
| | | | | |
|Issue of share capital| | | | |
|(net of costs) |  | 1,485| 1,671| 1,671|
| | +----------------+----------------+----------------+
|Net cash flow from | | | | |
|financing |  | 1,135| 1,365| 903|
| | +----------------+----------------+----------------+
|Cash flow in the | | | | |
|period | 9| (1,808)| 798| 1,507|
+----------------------+----+----------------+----------------+----------------+

Summary cash flow statement (D shares) (unaudited)

+----------------------+----+----------------+----------------+----------------+
|  | | Unaudited| Unaudited| Audited|
| | |six months ended|six months ended| year ended|
| | | 30 June 2012| 30 June 2011|31 December 2011|
| |Note| £'000| £'000| £'000|
+----------------------+----+----------------+----------------+----------------+
|Operating activities |  |  |  |  |
| | | | | |
|Investment income | | | | |
|received |  | 123| 44| 118|
| | | | | |
|Deposit interest | | | | |
|received |  | 28| 23| 38|
| | | | | |
|Investment management | | | | |
|fees paid |  | (66)| (66)| (132)|
| | | | | |
|Administrative | | | | |
|expenses paid |  | (33)| (22)| (50)|
| | | | | |
|Interclass account | | | | |
|movement |  | -| 495| -|
| | +----------------+----------------+----------------+
|Net cash flow from | | | | |
|operating activities | 8| 52| 474| (26)|
| | +----------------+----------------+----------------+
|  |  |  |  |  |
| | | | | |
|Taxation |  |  |  |  |
| | | | | |
|UK corporation tax | | | | |
|paid |  | -| -| -|
| | +----------------+----------------+----------------+
|  |  |  |  |  |
| | | | | |
|Capital expenditure | | | | |
|and financial | | | | |
|investments |  |  |  |  |
| | | | | |
|Purchase of fixed | | | | |
|asset investments |  | (415)| (1,149)| (2,180)|
| | | | | |
|Disposal of fixed | | | | |
|asset investments |  | 36| -| 26|
| | | | | |
|Purchase of current | | | | |
|asset investments |  | (250)|  | (500)|
| | +----------------+----------------+----------------+
|Net cash flow from | | | | |
|investing activities |  | (629)| (1,149)| (2,654)|
| | +----------------+----------------+----------------+
|  |  |  |  |  |
| | | | | |
|Equity dividends paid |  |  |  |  |
| | | | | |
|Dividends paid (net of| | | | |
|cost of issuing shares| | | | |
|under the Dividend | | | |  |
|Reinvestment Scheme) |  | (99)| (72)| (144)|
| | +----------------+----------------+----------------+
|Net cash flow before | | | | |
|financing |  | (676)| (747)| (2,824)|
| | +----------------+----------------+----------------+
|  |  |  |  |  |
| | | | | |
|Financing |  |  |  |  |
| | | | | |
|Issue of share capital| | | | |
|(net of costs) |  | -| -| -|
| | +----------------+----------------+----------------+
|Net cash flow from | | | | |
|financing |  | -| -| -|
| | +----------------+----------------+----------------+
|Cash flow in the | | | | |
|period | 9| (676)| (747)| (2,824)|
+----------------------+----+----------------+----------------+----------------+

Notes to the unaudited summarised financial statements (unaudited)

1. Accounting convention
The financial statements have been prepared in accordance with the historical
cost convention, modified to include the revaluation of investments, in
accordance with applicable United Kingdom law and accounting standards and with
the Statement of Recommended Practice "Financial Statements of Investment Trust
Companies and Venture Capital Trusts" ("SORP") issued by The Association of
Investment Companies ("AIC") in January 2009. Accounting policies have been
applied consistently in current and prior periods.

2. Accounting policies
Investments
Unquoted equity investments, debt issued at a discount, and convertible bonds
In accordance with FRS 26 "Financial Instruments Recognition and Measurement",
unquoted equity investments, debt issued at a discount and convertible bonds are
designated as fair value through profit or loss ("FVTPL"). Fair value is
determined by the Directors in accordance with the September 2009 International
Private Equity and Venture Capital Valuation Guidelines (IPEVCV guidelines).

Desk top reviews are carried out by independent RICS qualified surveyors by
updating previously prepared full valuations for current trading and market
indices.  Full valuations are prepared by similarly qualified surveyors but in
full compliance with the RICS Red Book.

Fair value movements on equity investments and gains and losses arising on the
disposal of investments are reflected in the capital column of the Income
statement in accordance with the AIC SORP. Realised gains or losses on the sale
of investments are reflected in the realised capital reserve, and unrealised
gains or losses arising from the revaluation of investments are reflected in the
unrealised capital reserve.

Warrants and unquoted equity derived instruments
Warrants and unquoted equity derived instruments are only valued if their
exercise or contractual terms would allow them to be exercised as at the balance
sheet date, and if there is additional value to the Company in exercising or
converting as at the balance sheet date. Otherwise these instruments are held at
nil value. The valuation techniques used are those used for the underlying
equity investment.

Unquoted loan stock
Unquoted loan stock (excluding convertible bonds and debt issued at a discount)
is classified as loans and receivables in accordance with FRS 26 and carried at
amortised cost using the Effective Interest Rate method less impairment.
Movements in respect of capital provisions are reflected in the capital column
of the Income statement and are reflected in the realised capital reserve
following sale, or in the unrealised capital reserve on revaluation.

For all unquoted loan stock, fully performing, renegotiated, past due and
impaired, the Board considers that the fair value is equal to or greater than
the security value of these assets.

For unquoted loan stock, the amount of the impairment is the difference between
the asset's cost and the present value of estimated future cash flows,
discounted at the effective interest rate. The future cash flows are estimated
based on the fair value of the security less estimated selling costs.

Investments are recognised as financial assets on legal completion of the
investment contract and are de-recognised on legal completion of the sale of an
investment.

Current asset investments
Contractual future contingent receipts on the disposal of fixed asset
investments are designated at fair value through profit or loss and are
subsequently measured at fair value.

Dividend income is not recognised as part of the fair value movement of an
investment, but is recognised separately as investment income through the
revenue reserve when a share becomes ex-dividend.

Loan stock accrued interest is recognised in the Balance sheet as part of the
carrying value of the loans and receivables at the end of each reporting period.

It is not the Company's policy to exercise control or significant influence over
investee companies. Therefore in accordance with the exemptions under FRS 9
"Associates and joint ventures", those undertakings in which the Company holds
more than 20 per cent. of the equity are not regarded as associated
undertakings.

Investment income
Unquoted equity income
Dividend income is included in revenue when the investment is quoted ex-
dividend.

Unquoted loan stock and other preferred income
Fixed returns on non-equity shares and debt securities are recognised on a time
apportionment basis using the effective interest rate over the life of the
financial instrument. Income which is not capable of being received within a
reasonable period of time is reflected in the capital value of the investment.

Bank interest income
Interest income is recognised on an accruals basis using the rate of interest
agreed with the bank.

Investment management fees and other expenses
All expenses have been accounted for on an accruals basis. Expenses are charged
through the revenue account except the following which are charged through the
realised capital reserve:

* 75 per cent. of management fees are allocated to the capital account to the
extent that these relate to an enhancement in the value of the investments
and in line with the Board's expectation that over the long term 75 per
cent. of the Company's investment returns will be in the form of capital
gains; and
* expenses which are incidental to the purchase or disposal of an investment
are charged through the realised capital reserve.

Performance incentive fee
In the event that a performance incentive fee crystallises, the fee will be
allocated between revenue and realised capital reserves based upon the
proportion to which the calculation of the fee is attributable to revenue and
capital returns.

Taxation
Taxation is applied on a current basis in accordance with FRS 16 "Current tax".
Taxation associated with capital expenses is applied in accordance with the
SORP. In accordance with FRS 19 "Deferred tax", 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 financial statements. Deferred tax assets are recognised to the
extent that it is regarded as more likely than not that they will be recovered.

The Directors have considered the requirements of FRS 19 and do not believe that
any provision should be made for deferred tax.

Dividends
In accordance with FRS 21 "Events after the balance sheet date", dividends
declared by the Company are accounted for in the period in which the dividend
has been paid or approved by shareholders in an Annual General Meeting.

Reserves
Share premium
This reserve accounts for the difference between the price paid for shares and
the nominal value of the shares, less issue costs and transfers to the special
reserve.

Capital redemption reserve
This reserve accounts for amounts by which the issued share capital is
diminished through the repurchase and cancellation of the Company's own shares.

Unrealised capital reserve
Increases and decreases in the valuation of investments held at the year end
against cost are included in this reserve.

Special reserve
The cancellation of the share premium account has created a special reserve that
can be used to fund market purchases and subsequent cancellation of own shares,
the payment of dividends, to cover gross realised losses and for other
distributable purposes.

Treasury shares reserve
This reserve accounts for amounts by which the distributable reserves of the
Company are diminished through the repurchase of the Company's own shares for
treasury.

Realised capital reserve
The following are disclosed in this reserve:

* gains and losses compared to cost on the realisation of investments;
* expenses, together with the related taxation effect, charged in accordance
with the above policies; and
* dividends paid to equity holders.

D shares
Until such time that D shares are converted into Ordinary shares, all
investments and returns attributable to this class of share will be separately
identifiable from the existing Ordinary shares. All residual expenses will be
allocated in the ratio of the respective Net Asset Values of each class of
share.

3. Gains on investments

Combined

  Audited
Unaudited Unaudited year ended
six months ended six months ended 31 December
30 June 2012 30 June 2011 2011
£'000 £'000 £'000
--------------------------------------------------------------------------------
Unrealised gains/(losses) on
fixed asset investments held
at fair value through profit
or loss account 228 (670) (6)

Unrealised
reversals/(impairments) on
fixed asset investments held
at amortised cost 170 (270) 87
--------------------------------------------------
Unrealised gains/(losses) sub-
total 398 (940) 81
--------------------------------------------------

Realised gains on investments
held at fair value through
profit or loss account 5 329 224

Realised gains on investments
held at amortised cost - 1,119 1,116
--------------------------------------------------
Realised gains sub-total 5 1,448 1,340

--------------------------------------------------
  403 508 1,421
--------------------------------------------------

Ordinary shares

  Audited
Unaudited Unaudited year ended
six months ended six months ended 31 December
30 June 2012 30 June 2011 2011
£'000 £'000 £'000
--------------------------------------------------------------------------------
Unrealised gains/(losses) on
fixed asset investments held
at fair value through profit
or loss account 56 (648) 266

Unrealised
reversals/(impairments) on
fixed asset investments held
at amortised cost 145 (298) (291)
--------------------------------------------------
Unrealised gains/(losses) sub-
total 201 (946) (25)
--------------------------------------------------

Realised gains on investments
held at fair value through
profit or loss account 5 329 224

Realised gains on investments
held at amortised cost - 1,119 1,090
--------------------------------------------------
Realised gains sub-total 5 1,448 1,314

--------------------------------------------------
  206 502 1,289
--------------------------------------------------

D shares

  Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2012 30 June 2011 31 December 2011
£'000 £'000 £'000
--------------------------------------------------------------------------------
Unrealised gains/(losses) on
fixed asset investments held
at fair value through profit
or loss account 172 (22) (272)

Unrealised reversals on fixed
asset investments held at
amortised cost 25 28 378
---------------------------------------------------
Unrealised gains sub-total 197 6 106
---------------------------------------------------

Realised gains on investments
held at amortised cost - - 26
---------------------------------------------------
Realised gains sub-total - - 26

---------------------------------------------------
  197 6 132
---------------------------------------------------

Investments valued on an amortised cost basis are unquoted loan stock
instruments.

4. Investment income

Combined

  Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2012 30 June 2011 31 December 2011
£'000 £'000 £'000
--------------------------------------------------------------------------------
Income recognised on
investments held at fair
value through profit or loss
account

UK dividend income - - 19

Income from convertible bonds
and discounted debt 100 18 91
---------------------------------------------------
  100 18 110
---------------------------------------------------
Income recognised on
investments held at amortised
cost

Return on loan stock
investments 429 363 801

Bank deposit interest 54 66 127
---------------------------------------------------
  483 429 928
---------------------------------------------------
  583 447 1,038
---------------------------------------------------

Ordinary shares

  Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2012 30 June 2011 31 December 2011
£'000 £'000 £'000
--------------------------------------------------------------------------------
Income recognised on
investments held at fair
value through profit or loss
account

UK dividend income - - 19

Income from convertible bonds
and discounted debt 63 10 37
---------------------------------------------------
  63 10 56
---------------------------------------------------
Income recognised on
investments held at amortised
cost

Return on loan stock
investments 356 326 700

Bank deposit interest 38 36 71
---------------------------------------------------
  394 362 771
---------------------------------------------------
  457 372 827
---------------------------------------------------

D shares

  Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2012 30 June 2011 31 December 2011
£'000 £'000 £'000
---------------------------------------------------
Income recognised on
investments held at fair
value through profit or loss
account

Income from convertible bonds
and discounted debt 37 8 54
---------------------------------------------------
  37 8 54
---------------------------------------------------
Income recognised on
investments held at amortised
cost

Return on loan stock
investments 73 37 101

Bank deposit interest 16 30 56
---------------------------------------------------
  89 67 157
---------------------------------------------------
  126 75 211
---------------------------------------------------

All of the Company's income is derived from operations based in the United
Kingdom.

5. Dividends

Ordinary shares

  Unaudited Unaudited Audited
  six months ended six months ended year ended
  30 June 2012 30 June 2011 31 December 2011
  £'000 £'000 £'000
--------------------------------------------------------------------------------
Dividend of 2.5p per share
paid on 31 May 2011 - 781 776

Dividend of 2.5p per share
paid on 30 September 2011 - - 771

Dividend of 2.5p per share
paid on 31 May 2012 799 - -
---------------------------------------------------
  799 781 1,547
---------------------------------------------------

D shares

  Unaudited Unaudited Audited
  six months ended six months ended year ended
  30 June 2012 30 June 2011 31 December 2011
  £'000 £'000 £'000
--------------------------------------------------------------------------------
Dividend of 1.25p per share
paid on 31 May 2011 - 78 79

Dividend of 1.25p per share
paid on 30 September 2011 - - 79

Dividend of 1.75p per share
paid on 31 May 2012 111 - -
---------------------------------------------------
  111 78 158
---------------------------------------------------

The Directors have declared a dividend of 2.5 pence per Ordinary share (total
approximately £798,000) and 1.75 pence per D share (total approximately
£111,000), payable on 28 September 2012 to shareholders on the register as at
31 August 2012.

6. Basic and diluted return/(loss) per share

Ordinary shares Unaudited Unaudited Audited
six months six months year ended
ended ended 31 December
30 June 2012 30 June 2011 2011
--------------------------------------------------------------------------------
  Revenue Capital Revenue Capital Revenue Capital

Return attributable to Ordinary
shares (£'000) 225 60 174 357 419 1,004

Weighted average shares in issue 31,422,426 30,545,742 30,630,649

Return/(loss)  per Ordinary 0.70 0.20 0.60 1.20 1.40 3.30
share (pence)

D shares Unaudited Unaudited Audited
six months six months year ended
ended ended 31 December
30 June 2012 30 June 2011 2011
--------------------------------------------------------------------------------
  Revenue Capital Revenue Capital Revenue Capital

Return/(loss) attributable to D 27 (36) 98 59
shares (£'000) 63 160

Weighted average shares in issue 6,354,787 6,336,572 6,342,448

Return/(loss)  per D share 1.00 2.50 0.40 (0.60) 1.60 0.90
(pence)

There are no convertible instruments, derivatives or contingent share agreements
in issue for Albion Development VCT PLC hence there are no dilution effects to
the return per share. The basic return per share is therefore the same as the
diluted return per share.

7. Share capital

Unaudited Unaudited Audited
Ordinary shares 30 June 2012 30 June 2011 31 December 2011
--------------------------------------------------------------------------------
Allotted, called up and
fully paid shares of 50
pence each

Number of shares 35,361,459 34,244,164 33,823,795

Nominal value of allotted
shares (£'000) 17,681 17,122 16,912

Voting rights (number of
shares net of treasury
shares) 31,933,459 31,000,468 30,356,399

Under the terms of the Dividend Reinvestment Scheme Circular dated 27 August
2008, the following Ordinary shares, of nominal value 50 pence were allotted:

Mid-market
price on issue
Issue price date
Number of shares (pence per (pence per Net proceeds
Date of allotment issued share) share) £'000
--------------------------------------------------------------------------------

31 May 2012 92,099 74.20 68.50 60

During the period from 1 January to 31 May 2012, the Company issued the
following New Ordinary shares of nominal value 50 pence under the Albion VCTs
Linked Top Up Offer:

Mid-market
price on issue
Issue price date
Number of shares (pence per (pence per Net proceeds
Date of allotment issued share) share) £'000
--------------------------------------------------------------------------------

10 January 2012 513,073 77.80 63.50 378

20 March 2012 556,839 77.80 61.50 410

5 April 2012 853,075 77.80 61.50 627

31 May 2012 94,974 78.50 68.50 71
-------------------- -------------
  2,017,961     1,486
-------------------- -------------

During the period to 30 June 2012 the Company purchased 533,000 Ordinary shares
for cancellation at a cost of £345,000 representing 1.8 per cent. of the
Ordinary shares in issue as at 1 January 2012.

During the period to 30 June 2012 the Company also cancelled 39,396 treasury
shares.

The total number of Ordinary shares held in treasury as at 30 June 2012 was
3,428,000 (30 June 2011: 3,243,696; 31 December 2011: 3,467,396) representing
9.7 per cent. of the shares in issue as at 30 June 2012.

Unaudited Unaudited Audited
D shares 30 June 2012 30 June 2011 31 December 2011
--------------------------------------------------------------------------------
Allotted, called up and fully paid

Number of shares 6,365,184 6,346,706 6,352,652

Nominal value of allotted shares
(£'000) 3,182 3,172 3,176

Voting rights (number of shares net
of treasury shares) 6,365,184 6,346,706 6,352,652

Under the terms of the Dividend Reinvestment Scheme Circular dated 5 April
2011, the following D shares, of nominal value 50 pence were allotted:

Mid-market
price on issue
Issue price date
Number of shares (pence per (pence per Net proceeds
Date of allotment issued share) share) £'000
--------------------------------------------------------------------------------

31 May 2012 12,532 93.10 92.00 8

The Company does not hold any D shares in treasury as at 30 June 2012.

8. Reconciliation of revenue return on ordinary activities before taxation to
net cash flow from operating activities

Combined

  Audited
Unaudited Unaudited year ended
six months ended six months ended 31 December
30 June 2012 30 June 2011 2011
£'000 £'000 £'000
--------------------------------------------------------------------------------
Revenue return on ordinary
activities before tax 379 261 669

Investment management fee
charged to capital (246) (239) (484)

Movement in accrued amortised
loan stock interest 40 (35) (18)

Decrease/(increase) in
operating debtors 1 (535) (33)

Increase/(decrease) in
operating creditors 10 481 (15)
---------------------------------------------------
Net cash flow from operating
activities 184 (67) 119
---------------------------------------------------

Ordinary shares

  Audited
Unaudited Unaudited year ended
six months ended six months ended 31 December
30 June 2012 30 June 2011 2011
£'000 £'000 £'000
--------------------------------------------------------------------------------
Revenue return on ordinary
activities before tax 296 227 539

Investment management fee
charged to capital (196) (190) (385)

Movement in accrued amortised
loan stock interest 28 (33) 19

Increase in operating debtors (8) (524) (15)

Increase/(decrease) in
operating creditors 12 (21) (13)
---------------------------------------------------
Net cash flow from operating
activities 132 (541) 145
---------------------------------------------------

D shares

  Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2012 30 June 2011 31 December 2011
£'000 £'000 £'000
--------------------------------------------------------------------------------
Revenue return on ordinary
activities before tax 83 34 130

Investment management fee
charged to capital (50) (49) (99)

Movement in accrued amortised
loan stock interest 12 (2) (37)

Decrease/(increase) in
operating debtors 9 (11) (18)

(Decrease)/increase in
operating creditors (2) 502 (2)
---------------------------------------------------
Net cash flow from operating
activities 52 474 (26)
---------------------------------------------------

9. Analysis of change in cash during the period

Combined

  Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2012 30 June 2011 31 December 2011
£'000 £'000 £'000
--------------------------------------------------------------------------
Beginning of the period 7,195 8,512 8,512

Net cash flow (2,484) 51 (1,317)
---------------------------------------------------
End of the period 4,711 8,563 7,195
---------------------------------------------------

Ordinary shares

  Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2012 30 June 2011 31 December 2010
£'000 £'000 £'000
--------------------------------------------------------------------------
Beginning of the period 5,734 4,227 4,227

Net cash flow (1,808) 798 1,507
---------------------------------------------------
End of the period 3,926 5,025 5,734
---------------------------------------------------

D shares

  Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2012 30 June 2011 31 December 2011
£'000 £'000 £'000
--------------------------------------------------------------------------
Beginning of the period 1,461 4,285 4,285

Net cash flow (676) (747) (2,824)
---------------------------------------------------
End of the period 785 3,538 1,461
---------------------------------------------------

10. Post balance sheet events
        Since 30 June 2012, the Company has completed the following material
transactions:

* AMS Sciences Limited, £17,000;
* Dragon Hydro limited, £78,000;
* Rostima Holdings Limited, £7,000; and
* Nelson House Hospital Limited, £33,000

At the Annual General Meeting on 15 June 2012, shareholders voted in favour of
the increase in the Company's distributable reserves by way of a reduction of
the Ordinary and D shares' nominal value from 50 pence to 1 penny per share and
the cancellation of its capital redemption and share premium reserves. This was
approved by Court Order on 11 July 2012. This restructuring has added
£20,651,724 and £3,125,887 to distributable reserves for Ordinary and D shares
respectively.

11. Related party transactions
The Manager, Albion Ventures LLP, is considered to be a related party by virtue
of the fact that it is party to a management agreement with the Company. During
the period, services of a total value of £328,000 (six months ended 30 June
2011: £319,000; year ended 31 December 2011: £646,000), were purchased by the
Company from Albion Ventures LLP. At the financial period end, the amount due to
Albion Ventures LLP in respect of these services was £163,000 (30 June 2011:
£163,000; 31 December 2011: £162,000).

During the period the Company raised new funds through the Albion VCTs Linked
Top Up Offer 2011/2012 as detailed in note 7. The total cost of the issue of
these shares was 5.5 per cent. of the sums subscribed. Of these costs, an amount
of £6,740 was paid to the Manager, Albion Ventures LLP, in respect of receiving
agent services. There were no sums outstanding in respect of receiving agent
services at the year end.

Albion Ventures LLP holds 331 fractional entitlement shares of the Company as a
result of the conversion of C shares to Ordinary shares in March 2007. These
shares will be sold for the benefit of the Company at a future date.

Albion Ventures LLP also holds 14,000 Ordinary shares as a result of the failure
of an original subscriber to pay cleared funds on initial subscription.

12. Going concern
The Board's assessment of liquidity risk remains unchanged since the last Annual
Report and Financial Statements for the year ended 31 December 2011, and is
detailed on page 30 of those accounts. The Company has adequate cash and liquid
resources. The portfolio of investments is diversified in terms of sector, and
the major cash outflows of the Company (namely investments, dividends and share
buy-backs) are within the Company's control. Accordingly, after making diligent
enquiries, the Directors have a reasonable expectation that the Company has
adequate resources to continue in operational existence for the foreseeable
future. For this reason, the Directors have adopted the going concern basis in
preparing this Half-yearly Financial Report and this is in accordance with
'Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009'
published by the Financial Reporting Council.
13. Risks and uncertainties

The Board considers that the Company faces the following major risks and
uncertainties:

1. Economic risk
Changes in economic conditions, including, for example, interest rates, rates of
inflation, industry conditions, competition, political and diplomatic events and
other factors could substantially and adversely affect the Company's prospects
in a number of ways.

To reduce this risk, in addition to investing equity in portfolio companies, the
Company often invests secured loan stock and has a policy of not permitting any
external bank borrowings within portfolio companies. Additionally, the Manager
has been rebalancing the sector exposure of the portfolio with a view to
reducing reliance on consumer led sectors.

2. Investment risk
This is the risk of investment in poor quality assets which reduces the capital
and income returns to shareholders, and negatively impacts on the Company's
reputation. By nature, smaller unquoted businesses, such as those that qualify
for venture capital trust purposes, are more fragile than larger, long
established businesses.

To reduce this risk, the Board places reliance upon the skills and expertise of
the Manager and its strong track record for investing in this segment of the
market. In addition, the Manager operates a formal and structured investment
process, which includes an Investment Committee, comprising investment
professionals from the Manager and at least one external investment
professional. The Manager also invites; and takes into account, comments from
non-executive Directors of the Company on investments discussed at the
Investment Committee meetings. Investments are actively and regularly monitored
by the Manager (investment managers normally sit on portfolio company boards)
and the Board receives reports on each investment as part of the Manager's
report at quarterly board meetings. It is the policy of the Company for
portfolio companies to not normally have external borrowings.

3. Valuation risk
The Company's investment valuation method is reliant on the accuracy and
completeness of information that is issued by portfolio companies. In
particular, the Directors may not be aware of or take into account certain
events or circumstances which occur after the information issued by such
companies is reported.

As described in note 2, the unquoted equity investments, convertible loan stock
and debt issued at a discount held by the Company are valued at fair value
through profit or loss in accordance with the International Private Equity and
Venture Capital Valuation Guidelines. These guidelines set out recommendations,
intended to represent current best practice on the valuation of venture capital
investments. These investments are valued on the basis of forward looking
estimates and judgements about the business itself, its market and the
environment in which it operates, together with the state of the mergers and
acquisitions market, stock market conditions and other factors. In making these
judgements the valuation takes into account all known material facts up to the
date of approval of the Financial Statements by the Board. All other unquoted
loan stock is measured at amortised cost.

4. Venture Capital Trust approval risk
The Company's current approval as a venture capital trust allows investors to
take advantage of tax reliefs on initial investment and ongoing tax free capital
gains and dividend income. Failure to meet the qualifying requirements could
result in investors losing the tax relief on initial investment and loss of tax
relief on any tax-free income or capital gains received. In addition, failure to
meet the qualifying requirements could result in a loss of listing of the
shares.

To reduce this risk, the Board has appointed the Manager, who has a team with
significant experience in venture capital trust management, used to operating
within the requirements of the venture capital trust legislation. In addition,
to provide further formal reassurance, the Board has appointed
PricewaterhouseCoopers LLP as its taxation advisors. PricewaterhouseCoopers LLP
report quarterly to the Board to independently confirm compliance with the
venture capital trust legislation, to highlight areas of risk and to inform on
changes in legislation.

5. Compliance risk
The Company is listed on The London Stock Exchange and is required to comply
with the rules of the UK Listing Authority, as well as with the Companies Act,
Accounting Standards and other legislation. Failure to comply with these
regulations could result in a delisting of the Company's shares, or other
penalties under the Companies Act or from financial reporting oversight bodies.

Board members and the Manager have experience of operating at senior levels
within quoted businesses. In addition, the Board and the Manager receive regular
updates on new regulation from its auditor, lawyers and other professional
bodies.

6. Internal control risk
Failures in key controls, within the Board or within the Manager's business,
could put assets of the Company at risk or result in reduced or inaccurate
information being passed to the Board or to shareholders.

The Audit Committee meets with the Manager's internal auditors, Littlejohn LLP,
at least once a year, receiving a report regarding the last formal internal
audit performed on the Manager, and providing the opportunity for the Audit
Committee to ask specific and detailed questions. During the year the Board met
with the internal audit Partner of Littlejohn LLP to discuss the most recent
Internal Audit Report on the Manager. The Manager has a comprehensive business
continuity plan in place in the event that operational continuity is threatened.
Further details regarding the Board's management and review of the Company's
internal controls through the implementation of the Turnbull guidance are
detailed on page 30 of the full Annual Report and Financial Statements for the
year ended 31 December 2011.

Measures are in place to mitigate information risk in order to ensure the
integrity, availability and confidentiality of information used within the
business.

7. Reliance upon third parties risk
The Company is reliant upon the services of Albion Ventures LLP for the
provision of investment management and administrative functions. There are
provisions within the management agreement for the change of Manager under
certain circumstances (for further detail, see the management agreement
paragraph on page 23 of the Annual Report and Financial Statements for the year
ended 31 December 2011). In addition, the Manager has demonstrated to the Board
that there is no undue reliance placed upon any one individual within Albion
Ventures LLP.

8. Financial risks
By its nature, as a venture capital trust, the Company is exposed to investment
risk (which comprises investment price risk and cash flow interest rate risk),
credit risk and liquidity risk. The Company's policies for managing these risks
and its financial instruments are outlined in full in note 19 to the Financial
Statements for the year ended 31 December 2011.

All of the Company's income and expenditure is denominated in sterling and hence
the Company has no foreign currency risk. The Company is financed through equity
and does not have any borrowings. The Company does not use derivative financial
instruments for speculative purposes.

14. Other information
The information set out in this Half-yearly Financial Report does not constitute
the Company's statutory accounts within the terms of section 434 of the
Companies Act 2006 for the periods ended 30 June 2012 and 30 June 2011, and is
unaudited. The information for the year ended 31 December 2011 does not
constitute statutory accounts within the terms of section 434 of the Companies
Act 2006 but is derived from the audited statutory accounts for the financial
year, which were unqualified and which have been delivered to the Registrar of
Companies.

15. Publication
This Half-yearly Financial Report is being sent to shareholders and copies will
be made available to the public at the registered office of the Company,
Companies House, the National Storage Mechanism and also electronically at
www.albion-ventures.co.uk under the 'Our Funds' section.

Split of portfolio by valuation as at 30 June 2012:
http://hugin.info/141803/R/1634468/524770.pdf

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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: Albion Development VCT PLC - Ordinary Shares via Thomson Reuters ONE
[HUG#1634468]