HAST.L Regulatory News (HAST)

HENDERSON VALUE TRUST PLC

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2014

This announcement contains regulated information

INVESTMENT OBJECTIVE

The Company exploits global opportunities to provide long-term growth to shareholders via a diversified, international, multi-strategy portfolio which offers access also to specialist funds including hedge and private equity. The Company aims to outperform the FTSE World Index on a total return basis.

CHAIRMAN'S STATEMENT

It is now 18 months since Henderson Global Investors took over the management of your Company. During that period major changes have been initiated. The portfolio changes are fully covered in the Managers' report.

The Board resolved to respond to investor concerns about past performance by making changes wherever necessary. We have changed the Manager, the Auditors and new Directors have been appointed.

Performance

The Company delivered share price and NAV total returns of 3.0% and 1.6% respectively during the year. Although modest, these were achieved during a period of major transition as Henderson reached the half-way point in its three-year restructuring plan for the Company's investment portfolio. We expect performance to improve steadily to acceptable and sustainable levels as the restructuring reaches completion and the new portfolio matures.

Performance was below the Company's FTSE World Index benchmark, which returned 11.9% during the period. As in the prior year, this reflected the fact that the benchmark return was driven by strong performance in some of the world's developed equity markets, particularly the US. In contrast, the Company's portfolio is biased towards specialist and alternative asset funds whose performance may be driven more by stock-specific or sector issues. In addition,

the Company has a significant weighting towards emerging markets. The Board will be reviewing the suitability of the benchmark, which has been in place since the Company's inception in 1991, in the first quarter of 2015.

Strategy

Henderson has adopted a clear and consistent strategy for the Company's investment portfolio since becoming the Company's Investment Manager on 1 April 2013. This has centred on three key elements:

• moving the Company away from deep-value investing and to focus all new investment on good-quality specialist and alternative asset funds which Henderson believes are capable of delivering acceptable returns;

• treating all legacy holdings on their individual merits in an effort to protect and maximise shareholder value across a complex and sometimes illiquid legacy portfolio; and

• adopting a transparent and disciplined approach to portfolio construction employing appropriate portfolio risk limits.

The Board supports the strategy outlined above and believes that Henderson is implementing its restructuring plan in a measured and methodical way. Although this means that the required changes to the Company's portfolio will not be fully complete for a further 18 months or so, the Board believes that the restructuring process will ultimately lead to a significant and sustainable improvement in the Company's long-term performance.

Dividend

Following the decision - announced in 2013 - of pursuing a more progressive dividend policy, the Company's recent investments have delivered a far higher investment income in the last year. Consequently, the board is proposing an increased dividend this year, 3.0p per share for 2014 (compared with 1.5p for 2013).

Board Changes

Peter Hulse retired as a Director at the AGM held in February 2014 and Shane Ross resigned as a Director and Chairman earlier this month. Daniel Hodson, Senior Independent Director and Audit Committee Chairman will step down from the Board at the conclusion of the AGM in December. On behalf of the Company I should like to thank Peter, Shane and Daniel for their many years' service as Directors, in particular during the recent difficult period of change when they put in weeks of work and travel way beyond the normal demands made of non-executive directors.

Graham Oldroyd will be appointed Chairman of the Audit Committee following Daniel Hodson retiring from the Board.

Tender Offers

The Board remains concerned at the consistently stubborn discount of the share price to net asset value. At the year end, the discount stood at 14.1%. We believe there are realistic prospects of a narrower discount bearing in mind imminent changes in the portfolio aimed at an improved performance and the knowledge that our new Managers are still only part way through their restructuring programme.

Nevertheless, in the meantime we are giving shareholders the chance to benefit from a tender offer for up to 10% of the outstanding shares of the Company at a discount of 2% to net asset value less costs. The cash provided for this offer has already been generated by Henderson from the portfolio inherited in April 2013. This offer will be followed by a second tender offer for 10% of the Company's shares expected to be at a discount of 5% to net asset value per share, but only if the Company's shares have traded at an average discount wider than 10% during the twelve months to 30 September 2016. These tender offers will be conditional upon the passing of the continuation vote in December 2014. Full details of the first tender offer will be announced next week when the tender offer documentation will be despatched to shareholders along with the Annual Report.

Overall the Board believes that these tender offer proposals strike the right balance between responding to the Company's wide discount, preserving sufficient scale for the Company and leaving Henderson with adequate resources and flexibility to complete the reshaping of the Company's investment portfolio over the longer term.

Continuation Vote

The Company's performance still leaves room for improvement but we are cognisant that the Company remains in a period of transition following the appointment of Henderson to manage the Company's portfolio. In accordance with the Company's Articles of Association and as previously indicated to shareholders, we are proposing a continuation vote as an ordinary resolution at the AGM in December 2014.

The Board is unanimously recommending that shareholders vote in favour of this resolution. In reaching its recommendation the Board has considered a number of factors including: the Company's performance, the Managers' strategy for dealing with legacy issues, the discount at which the shares have been trading and the prospects for improvement in the rating of the shares in future, whilst recognising the benefits of a closed-ended structure to the effective execution of the Company's declared investment strategy.

At the same time, your Board has carried out a detailed review of the possible impact of the level of liquidity of the Company's underlying holdings were Henderson Value Trust to be discontinued. Our consideration has taken into account a number of factors including, being in a forced seller situation, the nature and illiquidity of certain investments in the portfolio, the length of time it would take to achieve a reasonable return for shareholders in securing realisations closer to net asset value together with potential volatility in future market conditions. Given the uncertainties and difficulties in undertaking such a realisation exercise and the Directors' belief that the Company will achieve a sustainable performance over the longer term that meets shareholder expectations, your Directors are of the unanimous view that the Company should continue. In accordance with the Articles of Association a further continuation vote will be put forward at the AGM to be held in respect of the financial year ending 30 September 2017 and at every third AGM thereafter.

I am delighted to have been appointed Chairman of your Company and to be leading a newly invigorated Board of Directors who have every confidence that Henderson Value Trust will achieve over the longer term a sustainable performance to satisfy the expectations of our shareholders. The future for Henderson Value Trust is now brighter than at any time in recent years.

Richard Gubbins

Chairman

FUND MANAGERS' REPORT

Key Achievements

The 30 September 2014 year-end marked 18 months since Henderson became the Company's Investment Manager and began the restructuring of the Company's investment portfolio.

We are now approximately half-way through the restructuring process which we estimate will take another 18 months to complete. This timeframe reflects that we are continuing with our strategy to pursue a measured approach to protecting and realising value from the Company's legacy portfolio. In addition, we are being disciplined in selecting only new investments which we believe meet our strict quality and target return thresholds.

Our key achievements to date during this 18 month period are outlined below.

• The Company's investment focus has been moved away from deep-value investing to an emphasis on building a portfolio of good-quality specialist and alternative asset funds.

• We have developed clear plans for all of the Company's legacy investments and also for long-term portfolio construction.

• Revised portfolio risk limits have been put in place and approved by shareholders.

• £45.5 million has been generated from the Company's legacy portfolio and £52.5 million has been invested by Henderson. At the year-end Henderson's selections represented 41% of the Company's total investments of £119.9 million and were performing satisfactorily.

• The Company's NAV and share price total returns have remained relatively stable during this period of major transition, despite a number of significant headwinds.

• Our marketing efforts have enabled us to start the process of rebuilding investor confidence and to raise the Company's market profile.

• We have increased the cash yield from the Company's investment portfolio in order to facilitate a significant and sustainable increase in the Company's level of dividend.

Although there is still much work to be done, we are becoming increasingly confident about the Company's prospects. We believe strongly that our focus on constructing a portfolio of good-quality specialist and alternative asset funds is laying the foundation for a significant improvement in the Company's performance.

Continuation Vote

The prospect of stronger performance, combined with the well-balanced tender offer proposals outlined in the Chairman's Statement should, we hope, persuade shareholders to vote in favour of the Company's continuation for a further three years at the Company's AGM in December. This will give us time to complete our restructuring of the Company's investment portfolio and to demonstrate that the Company's rare and differentiated investment mandate is once again capable of delivering strong growth for investors.

Performance during the Financial Year - ended 30 September 2014

The Company delivered positive share price and NAV total returns of 3.0% and 1.6% respectively during the financial year. Although these were still well below the 11.9% delivered by the FTSE World Index benchmark, they were achieved despite the fact that our restructuring of the Company's investment portfolio is still work-in-progress.

The Company also faced some significant headwinds during the period. These included the strength of sterling and the underperformance of emerging markets compared with their developed counterparts. The Company's portfolio continues to contain a significant emerging market weighting whereas its benchmark is biased towards developed markets.

In addition, a number of the Company's holdings, both new and legacy, have a relatively low market beta with their performance being driven mainly by specific fund or sector issues rather than market movements. As a result, such holdings may not perform in line with markets in the short-term, but should have the potential to outperform over the longer-term, if they are of sufficient quality.

Finally, several funds purchased by Henderson during the year were themselves still deploying capital and had not yet achieved their full target returns.

Discount

The Company saw a modest narrowing of its year-end share price discount to NAV per share from 15.6% to 14.1%. Whilst this improvement is welcome, the discount remains too high. Ultimately, it is improved investment performance and stronger demand for the Company's shares that will most likely lead to a sustained narrowing of the discount. In the meantime, we believe that the tender offer proposals outlined in the Chairman's Statement demonstrate the Board's determination to address this issue proactively.

Contribution Analysis

The tables below show the five top and bottom contributors to the gross total return of the Company's investment portfolio (including cash and cash equivalents) during the financial year.

Source: Henderson

The top five contributors included two of our preferred legacy holdings, Oryx International Growth Fund Limited and the long/short SW Mitchell Small Cap European Fund, both of which delivered good returns as the UK and European small cap sectors performed well during the period. Ecofin Water and Power Opportunities plc, an investor in utility and utility-related companies, benefited from good NAV growth and improved governance. NB Private Equity Partners Limited, one of Henderson's new selections, also performed well as parts of the private equity sector continued to produce attractive returns. Finally, Value Partners China Greenchip Limited, a fund which invests in Hong Kong and Chinese listed growth stocks, and one of the Company's longest-standing investments, managed once again to deliver an attractive return.

The bottom five contributors, all of which were legacy holdings, were headed by Baring Vostok Investments Limited cell, a Channel Islands listed vehicle whose sole asset is a holding in Yandex Inc., the NASDAQ-listed Russian internet search engine. Yandex Inc. has, like most Russian investments, been volatile during 2014. It should, however, be noted that the company's trading performance continues to be robust and its stock price at the time of writing is still higher than on 1 April 2013. iO Adria Limited, a very illiquid Croatian real estate fund listed in Bermuda, finally lost its battle to restructure its bank debt and its relatively small remaining value was marked-down to zero. International Oil & Gas Technology Limited, a highly illiquid UK-listed investor in companies with technologies which improve productivity in the oil and gas sector, had a torrid year and required further funding to enable it to continue with the realisation of its remaining portfolio of three companies. The Company subscribed £0.1 million to the fund-raising. Denholm Hall Russia Arbitrage Fund B - Investment, an illiquid holding invested in a poor performing portfolio of property-related assets in Russia, continued to suffer NAV erosion. Finally, BlackRock World Mining Trust plc suffered as a result of uncertainty in the mining sector.

Overall, investments made by Henderson since becoming the Company's investment manager contributed 2.3% to the Company's gross total return during the financial year ended 30 September 2014. This compared with 0.0% (zero) from the Company's remaining legacy holdings.

Portfolio Construction

At the year-end the Company held 58 investments. When fully restructured, the Company's investment portfolio will contain approximately 40 high-conviction holdings held across two tranches of "core" and "tactical" selections. Core holdings will comprise around 75% of portfolio value and will be a mixture of listed and unlisted stocks with an emphasis on a bottom-up selection process. They will typically be held for an average of three years. The rest of the portfolio will contain tactical investments. They will be mainly listed and will be held for shorter periods to take advantage of particular special situations or sector-specific opportunities. In all cases investments will be required to satisfy our due diligence process in relation to quality and projected levels of financial return.

At the year-end the Company's portfolio construction could be summarised as follows:

Source: Henderson

During the year our new purchase programme continued to focus on developing the listed part of the Company's core portfolio tranche. At the year end the core portfolio contained a total of 25 investments with a value of £84.2 million representing 70% of total investments. 16 of these were Henderson selections along with nine legacy holdings. Some of the new purchases are described in more later in this report. More changes are still needed, but this part of the portfolio is now relatively stable.

By contrast, the 13 investments held in the tactical tranche of the portfolio at the year-end were all legacy holdings earmarked for disposal at some point over the next 18 months. The tactical tranche is therefore currently a holding-pen as we seek to maximise value for these investments which, at the year-end, had a value of £18.5 million, or 16% of total investments.

At the year-end the investment portfolio also contained a further 20 legacy holdings that are in some form of realisation process, a number of which are relatively illiquid, This self-liquidating tranche of the Company's portfolio had a year-end value of £17.2 million, or 14% of total investments. Most of these holdings are of acceptable quality and, we believe, over the next 18 months, have the potential to generate cash proceeds slightly above their combined carrying value.

We therefore expect that the existing tactical tranche of the portfolio combined with investments currently in their own realisation process are capable of generating cash of around £40 million over the next 18 months. This, together with the £16.4 million of freely accessible cash and cash equivalents already held by the Company at the year-end, will provide the funding for the completion of our portfolio restructuring and for any tender offers.

Portfolio Activity

Purchases

The first of our two key priorities outlined in last year's annual report was to continue to deploy the Company's capital in a measured way into good-quality specialist and alternative asset funds across the Company's five target investment areas. These are funds focused on specialist sectors and geographies or else the private equity, hedge or property markets.

We invested a total of £31.6 million during the year. This was spread across seven completely new holdings, five additions to previous Henderson selections and two modest investments in legacy holdings.

Our investment activity was centred mainly on certain specialist sectors which we believe offered compelling risk-adjusted returns. These included the credit sector where we invested in funds focused on secured loans, distressed debt and property lending. There were also attractive opportunities in the renewable energy sector. In addition, we invested in one high quality long/short European equity hedge fund in order to start rebuilding the Company's hedge fund sleeve. Some of the specific investment highlights during the year are described below.

In the credit fund arena we invested £4.0 million into Blackstone/ GSO Loan Financing Limited, a UK-listed vehicle with an experienced and market-leading manager focused on the European secured loans market. We increased our position in the UK-listed NB Distressed Debt Investment Fund Limited by investing £5.0 million in its new Global Share class which is targeting distressed debt opportunities in Europe, Australia and the US. We also added £1.6 million to our holding in Real Estate Credit Investments PCC Limited, a UK-listed vehicle focused increasingly on UK property direct lending opportunities where traditional bank funding is now much harder to obtain.

In the renewable energy sector we added £0.6 million to our position in The Renewables Infrastructure Group Limited, a UK-listed fund with a high-quality portfolio of fully operational, cash generative wind and solar projects in the UK and France. We also made a €7.5 million commitment to Renewable Energy and Infrastructure Fund II, an unlisted fund with a mandate to develop a diversified portfolio of renewable energy projects across Europe. The managers of both these funds have extensive and successful experience of the renewable energy sector.

We invested £5.0 million in BlackRock European Hedge Fund Limited while it was briefly re-opened to investors during the summer. The fund has a strong track record and its long/short mandate provides scope for good performance in all market conditions.

It should be noted that nearly all of our investment activity during the year was focused on increasing the quality of the core tranche of the Company's investment portfolio (see Portfolio Construction). We did, however, make one of our own tactical tranche investments during the year. This was a £2.3 million investment in BlackRock Latin American Investment Trust plc which was purchased to take advantage of what we believed to be oversold Latin American markets at the end of 2013. We subsequently exited this investment in September 2014 having achieved our target return.

Sales, Redemptions and Capital Returns

£24.5 million of cash was generated from the legacy portfolio during the year through over 50 separate events including sales, redemptions and capital returns.

In some cases disposals followed periods of good share performance from holdings which would not, longer-term, form part of the Company's core portfolio. A good example of this was Northern

Investors Company plc, a UK-listed private equity fund focused on small and medium sized businesses in northern England. This fund adopted a realisation strategy in 2011 which has to date been executed well leading to significant returns of cash. The resulting narrowing of the fund's discount created an attractive exit point generating a total of £2.1 million for the Company. Other UK-listed investments sold following good performance were Crystal Amber Fund Limited (£1.8 million) and Jupiter European Opportunities Trust plc (£2.1 million), a CFD holding.

We also sought opportunities to reduce certain illiquid legacy investments which, although of longer-term core tranche quality, were too large a part of the portfolio. For example, we found £3.3 million of market liquidity for the Company's successful investment in Oryx International Growth Fund Limited, a UK-listed activist investor in UK and US small cap companies. As a result, this holding represented a more comfortable 4.6% of the Company's total investments at the year-end compared with 6.8% the year before.

Less positively, it was necessary to sell several legacy holdings which we believed had uncertain or deteriorating prospects. For example, we disposed of the Company's entire holding in Baker Steel Resources Trust plc, a UK-listed investor in early-stage natural resource companies, for £0.7 million. This followed a period of poor NAV performance and reflected our concerns regarding the outlook for some of the fund's investee companies. In view of the uncertainties created by the situation in the Ukraine, we also exited the Company's investment in JP Morgan Russian Securities plc, a CFD holding. This realised £0.5 million as we sought to reduce exposure to Russia, one of the largest geographic weightings in the Company's legacy portfolio. This sale, combined with capital returns from Prosperity Voshkod Fund Limited and Baring Vostok Investments Limited cell, helped us to manage Russian exposure down to 10% of the Company's total investments at the year-end compared with 14% the previous year.

We also received a steady flow of cash from investments that are in some form of realisation process. Although this self-liquidating tranche of the Company's portfolio comprises relatively illiquid holdings, investment quality is generally acceptable. Two unlisted funds performed particularly well following successful exits from their own investments. These were Century Capital Partners IV, L.P. (private equity in US financial services) and Zouk Solar Opportunities Limited (UK and Italian solar parks). These funds produced combined cash proceeds of £3.8 million.

Marketing Activities

The second of our two key priorities outlined in last year's annual report was to increase significantly our marketing activities to generate renewed interest in the Company's shares. This process began in earnest at the start of the calendar year, by which time we had refocused the Company's investment strategy on quality rather than deep-value investing, adopted a preferred portfolio construction, put in place revised portfolio risk limits and made a number of initial investments and disposals.

Our marketing efforts have taken several forms. A significant number of meetings and calls have been held with existing, previous and potential shareholders. We have also obtained a good level of national and trade media coverage and have communicated regularly with the market through the Company's Henderson sponsored website. As a result of these efforts it has been pleasing to see some buying interest despite the fact that the Company is going through a major portfolio restructuring. More generally, we have managed to increase the market's level of awareness regarding the changes at the Company. On the assumption that the continuation vote is passed, we will renew our marketing efforts early in 2015.

Dividend

In last year's annual report we mentioned that a number of our initial new investment selections would increase the level of cash yield from the Company's portfolio and that this would help to facilitate the development of a more progressive dividend policy. During the financial year ended 30 September 2014 we continued to seek new investments with attractive income characteristics. As a result, the Board has been able to announce a dividend of 3.0p per share compared with last year's 1.5p, an increase of 100%. Although the Company will continue to seek most of its total return from capital growth, we do believe shareholders have welcomed our successful initiative to increase the cash component of the Company's total return.

Outlook

At the time of writing world equity markets have just experienced another period of nervousness regarding levels of global growth. Although the US and UK economies are performing reasonably well, doubts over the Eurozone and China combined with a degree of geopolitical instability have increased short-term concerns amongst investors.

Although these macro-economic issues influence our thinking to some degree, they are not our main focus. We are not "top-down" asset allocators. Our job is to construct a portfolio of specialist and alternative asset funds which, over the longer-term, can consistently outperform our mainly developed world equity market benchmark. Building such a portfolio is largely a "bottom-up" exercise, identifying managers who have particular expertise in specialist markets or sectors. In addition, it is imperative that we focus on funds with good quality assets, by which we mean assets with genuine growth and income potential and, ideally, good defensive characteristics. Our due diligence processes for fund selection are therefore key to the Company's long-term success, and we will not compromise on our quality, entry price and target return requirements.

We are becoming increasingly positive about the outlook for the Company for a number of reasons. For example, our new purchases are performing satisfactorily even though, in some cases, they have yet to complete their own capital deployment programmes and are therefore not yet contributing their full target return. We also continue to identify a good flow of new investment opportunities and have made three more good-quality investments in the private equity, hedge fund and property sectors since the year-end. The legacy portfolio is generating good levels of cash flow for redeployment in higher-quality funds and also to finance the proposed cash returns to shareholders. Finally, the Company's dividend has been increased significantly.

We are now half-way through our restructuring of the Company's investment portfolio. We have a clear strategy and are endeavouring to build a good-quality portfolio. We hope that shareholders will vote to give us the opportunity to "finish the job" by voting in favour of the Company's continuation this December.

Ian Barrass and James de Bunsen

Fund Managers

INVESTMENT PORTFOLIO

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks facing the Company are market related and include market price, foreign exchange, interest rate, liquidity and credit risk.

Market risk exists where there are changes in share prices, equity valuations, interest rates and the liquidity of financial instruments. The Company addresses this risk by owning a diversified portfolio of investments covering a range of market capitalisation, sectors and geographic regions. Market price risk management is part of the Company management process and is typical of equity related investment. The portfolio is managed so as to minimise the effects of adverse price movements and results from detailed and continuing analysis with an objective of maximising overall returns to shareholders.

Liquidity risk exists where the Company is a forced seller of its investments at times where there may not be sufficient demand for these assets. Although some holdings are unlisted or trade on illiquid markets and are by their nature less liquid than larger companies, the Company maintains a long term investment view and is rarely required to sell its investments in a forced manner. In addition, the Company maintains an overdraft facility to ensure that the Company is not a forced seller of its investments.

Interest rate risk exists where the returns generated from the investments are less than the cost of borrowing. This risk has been mitigated by operating with a relatively small level of gearing at most times. The level will only be increased where an opportunity exists to add to net asset value performance.

Credit risk exists where a counterparty fails to discharge an obligation or commitment entered into with the Company. Henderson monitor counterparty risk as part of the overall investment management process. This risk is reduced by using counterparties that are substantial, well financed organisations which are reviewed on a regular basis. Most investment transactions are conducted on-market and are delivery versus payment. The Company's principal counterparties are bankers State Street, money market funds provider Deutsche Bank and CFD provider UBS. Henderson only use for trade execution broker organisations that are authorised by the Financial Conduct Authority.

Some of the Company's investments are in funds, some of which are unquoted, exposed to less developed markets and may be seen as carrying a higher degree of risk. The Board believe that these risks are mitigated through portfolio diversification, in-depth analysis, and the experience of Henderson and a rigorous internal control culture. The use of CFDs involves counterparty risk exposure. Additional risks faced by the Company are summarised below:

Investment Strategy

The performance of the portfolio may not match the performance of the benchmark through divergent geographic, sector or stock selection. In addition, the Company may be affected by economic conditions. Henderson has a clearly defined investment philosophy and manages a broadly diversified portfolio to mitigate this risk.

Discount

The level of the discount varies depending upon performance, market sentiment and investor appetite. The Company has the ability to issue and purchase its own shares which can reduce discount volatility.

Regulatory/Operational

Failure to comply with applicable legal and regulatory requirements could lead to a suspension of the Company's shares, fines or a qualified audit report. A breach of Section 1158 of the Corporation Tax Act 2010 could lead to the Company being subject to corporation tax on realised capital gains. Failure of Henderson or third party service providers could prevent accurate reporting and monitoring of the Company's financial position. The Board regularly considers the risks associated with the Company and receives both formal and regular reports from Henderson and third party service providers addressing these risks.

STATEMENT OF DIRECTORS' RESPONSIBILITIES (UNDER DTR 4.1.12)

Each of the Directors confirms that, to the best of their knowledge:

· the financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), give a true and fair view of the assets, liabilities, financial position and profit of the Company; and

· the Annual Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

The Directors consider that the Annual Report, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's performance, business model and strategy.

For and on behalf of the Board

Richard Gubbins

Chairman

INCOME STATEMENT

The total column of this statement represents the income statement of the Company.

The Company had no recognised gains or losses other than those recognised in the Income Statement.

No operations were acquired or discontinued in the year.

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

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

BALANCE SHEET

CASH FLOW STATEMENT

Net cash at the end of the year comprises cash held at bank of £129,000 (2013: £1,381,000), cash held at UBS related to CFD transactions of £2,641,000 (2013: £8,773,000) and balances held at money market funds of £16,250,000 (2013: £11,672,000).

NOTES TO THE FINANCIAL STATEMENTS

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

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