Maven Income 1 Regulatory News (MIG1)

11 Oct 2007 17:17

Aberdeen Income & Growth VCT PLC11 October 2007 Aberdeen Income and Growth VCT PLC Interim Announcement for the six months ended 31 August 2007 (unaudited) The Directors are pleased to announce the unaudited Interim Management Reportfor the six months ended 31 August 2007, this being the first statement toShareholders following the change of Company name from Murray VCT 4 PLC toAberdeen Income and Growth VCT PLC, effective from 25 July 2007. Highlights • Increase of 3.1% in NAV total return over the six months ended 31 August 2007. • NAV total return of 102.7p per share ("pps") at 31 August 2007; compared to 99.6 pps at 28 February 2007. • Interim dividends of 3.5pps declared. • 17 new unlisted and AIM investments made during the period under review. • Disposals generated net realised gain of £2,232,000. • Increase of 13.5% of the value of the AIM portfolio over the six months ended 31 August 2007, compared to an increase of 0.5% in the FTSE AIM All-Share Index. Performance The six month period ending 31 August 2007 has seen a further increase in NAVtotal return on the Ordinary Shares which rose over the period by 3.1% to reach102.7pps. The Net Asset Value ("NAV") per Ordinary Share at 31 August 2007 was77.4pps compared with 81.1pps as at 28 February 2007; dividends totalling 6.8ppswere paid to Shareholders in March and July 2007 which reduced the NAV at thetime of payment. There is no venture capital trust index with which to compare the performance ofthe Company; however, the value of the AIM portfolio rose by 13.5% over the sixmonth period, which compares with the increase in the AIM All-share Index whichrose by 0.5% over the same period. Unlisted investments held by Aberdeen Income and Growth VCT are valued inaccordance with the International Private Equity and Venture Capital ValuationGuidelines. Investments which are traded on the Alternative Investment Market(AIM) or a recognised stock exchange are valued at their bid price. Dividends The Company paid dividends totalling 6.8pps to Shareholders and has alsogenerated realised capital gains (which are shown in the table below) during thereporting period amounting to 6.3pps. The Board is now declaring an interimcapital dividend of 3.0pps, representing almost 50% of the gains realised duringthe six months ended 31 August 2007, to be paid along with an interim revenuedividend of 0.5pps on 7 December 2007 to Shareholders on the register on 9November 2007. Upon payment of these dividends, the Company will have paid10.3pps to Shareholders in the twelve-month period ending 31 December 2007,equivalent to an annual yield of 27.5% to a higher-rate taxpayer on themid-market share price of 50p as at 11 October 2007. Co-investment Aberdeen Income and Growth VCT has co-invested with other funds managed by theAberdeen Asset Management Group in a number of investments and expects tocontinue to do so. The advantage of this arrangement is that, by investingtogether, the funds are able to underwrite a wider range and size of transactionthan would be the case on a stand-alone basis. In addition, the Manager's staffco-investment scheme has continued to co-invest alongside the Company in eachinvestment made during the period. Regulatory changes The overall VCT market declined by approximately two thirds in the year to 5April 2007 which reflects the changes to the VCT regulations announced in thelast two Budgets. For funds raised after 5 April 2006, new restrictions on thesize of company in which VCTs can invest, where those investments are to betreated as qualifying, were introduced. The regulations introduced in the 2007Budget are particularly onerous in this regard, focussing on the maximum numberof employees in addition to placing a limit on the amount which can be raisedunder venture capital schemes by the investee company. However, those new 2007regulations do not affect the money raised originally by the Company which cancontinue to invest in the same scale and type of company that has helped driverecent performance improvement. Investment activity We are pleased to report an exceptionally strong period of new investmentactivity. During the six months to 31 August 2007, seven new unlistedinvestments and ten significant AIM investments were made. A total of £5.4million was invested during the six-month period. At 31 August 2007, theinvestment portfolio consisted of 74 active unlisted and AIM investments havinga total cost of £29.9 million. The following new investments were made during the reporting period: Investment Date Activity Investment cost Website £'000Unlisted Adler & Allan June 2007 Handling, transport, clean-up 499 www.adlerandallan.co.ukHoldings and disposal of oil and sewage based waste. Camwatch March 2007 Provider of CCTV monitoring 786 www.cctv-monitoring.net and installation services. Cyclotech May 2007 Provider of services to the 348 www.cyclotech.com energy sector. Funeral March 2007 Operator of funeral director 776 no website availableServices businesses.Partnership ID Support March 2007 Installation and maintenance 746 www.id-group.co.ukServices of CCTV security systems, airHoldings conditioning and industrial refrigeration systems for UK leisure and retail businesses. Lime March 2007 Company formed to acquire 696 no website availableInvestments branded premium-end or niche food and beverage businesses. MS Industrial April 2007 Provider of industrial 546 www.msis.uk.comServices cleaning and waste management services to the oil and industrial sectors. Other 202 Total unlisted investment 4,599 AIM Bglobal April 2007 Provider of smart meters www.bglobalmetering.com allowing the remote reading of 25 electricity and gas meters, and data management. Concateno March 2007 Provider of services for the www.concateno.com testing of employees for drugs 61 and alcohol. Essentially July 2007 Sports marketing, media www.essentiallygroup.comGroup management and professional 49 services group. eXpansys April 2007 Re-seller of mobile and www.expansys.com wireless technology products 30 over the internet. Formation Group June 2007 Provider of wealth management 108 www.formationgroupplc.com and related professional services. Mount June 2007 Manufacturer, stockist and www.mountengineering.comEngineering distributor of engineering 49 products for a range of industrial markets. Neuropharm March 2007 Developer of pharmaceuticals 100 www.neuropharm.co.ukGroup for neuro-development disorders. SDI Group June 2007 Specialist in the design, www.sdigroup.com build and support of automated 96 warehouse handling systems within the retail distribution sector. St Helen's April 2007 Provider of corporate advisory www.sthelenscapital.comCapital services. 50 Worthington May 2007 Installation and maintenance 200 www.worthington-nicholls.co.ukNicholls Group of air conditioning units in the hotel and retail markets. Other 25 Total AIM investment 793 Total investment 5,392 Portfolio developments Unlisted investments Following the eight successful realisations during the year ending 28 February2007 which resulted in the payment of the capital dividends in December 2006,March and July 2007 to Shareholders, two further unlisted realisations haveoccurred in the reporting period as shown in the table immediately followingthis review. The sale of Enterprise Food Group is the final realisation in aseries of disposals which has seen total proceeds of £1,059,000 compared to theoriginal investment cost of £598,000. RMS Europe was sold in a secondarymanagement buy-out generating proceeds of £1,481,000 compared to the originalcost of £784,000. The proceeds were in line with an earlier approach from atrade buyer which did not proceed. The realisations from Astraeus and ELEAdvanced Technologies are partial repayments of loan stocks in line with theterms of those investments. The proceeds from EIG (Investments) are in respectof deferred consideration on finalisation of the completion accounts followingthe sale of that company in January 2007 on which a gain of £705,000 had alreadybeen accounted for. During the reporting period, seven new substantial unlisted investments havebeen added to the portfolio. We are pleased to note that each has traded in linewith, or ahead of, its business plan since investment; however, it is likely tobe some time before these investments reach a level of maturity which enablesprofitable exits to be negotiated. The Board continues to take a prudent view on the valuation of unlistedinvestments and there has been a net reduction in the value of the portfolio by£403,000 as at 31 August 2007. Provisions taken against a small number of legacyinvestments have been offset by increased valuations of companies where tradinghas improved and earnings are forecast to increase. AIM investments The AIM portfolio has continued to be actively managed during the reportingperiod resulting in net realised gains over cost of £1,209,000; details of thesetransactions can be found in the table below. In addition to the realised gains shown below, unrealised gains over thevaluations as at February 2007 amounting to £163,000 were achieved during aperiod when the market, towards the end of the reporting period, became moreunstable. The shares which achieved the largest gains were Amazing Holdings(£92,000), Axeon (£69,000), Neuropharm Group (£45,000) and Tanfield Group(£197,000). These gains were partially offset by unrealised losses on 1st DentalLaboratories (£42,000), Imprint (£75,000), Synexus Clinical Research (£88,000)and Worthington Nicholls Group (£161,000). The reduction in Worthington NichollsGroup followed a trading statement at the end of June which did not meet marketexpectations and the share price fell by 35%. The company made a further tradingstatement in mid-August, after which the share price fell by a further 40%compared to the cost of investment and management changes have ensued. AIM has been volatile in recent weeks in line with markets generally, but theCompany's AIM portfolio has achieved an increase of 13.5% for the six monthperiod which compares to the increase in the AIM All-share Index of 0.5% for thesame period. Realisations The following table shows all sales from the investment portfolio made by theCompany during the reporting period: Year first Exit Cost of shares Sales Realised gain/ invested disposed of proceeds (loss) £'000 £'000 £'000 Unlisted Astraeus 2007 Partial 135 135 - EIG (Investments) 2005 Deferred consideration - 59 59 ELE Advanced Technologies 2000 Partial 149 149 - Enterprise Food Group 2003 Complete - 267 267 RMS Europe 2004 Complete 784 1,481 697 Others 3 3 - Total unlisted 1,071 2,094 1,023 AIM Assetco 2003 Complete 56 105 49 AT Communications Group 2005 Partial 257 290 33 Careforce 2004 Complete 137 195 58 Cello Group 2004 Partial 149 222 73 eXpansys 2007 Partial 20 25 5 Inspicio 2005 Complete 71 124 53 Tanfield Group 2004 Partial 83 1,041 958 Others 146 126 (20) Total AIM 919 2,128 1,209 Total 1,990 4,222 2,232 Risk and uncertainties The Board has reviewed the principal risks and uncertainties facing the Companyin the second half of its financial year and these are unchanged from those thatit faced at the start of the year. The Directors ensure that the Companycontinues to comply with the venture capital trust regulations and mitigates therisk associated with investment in smaller unlisted and AIM quoted companies.The Manager closely monitors the position of the Company to ensure that itcomplies with the various tests at all times and, in order to minimise theCompany's exposure to investment risk, the Manager has constructed a portfolioof investments in over 70 unlisted and AIM quoted companies across a diverserange of industrial sectors in the United Kingdom. Outlook Following a number of profitable exits in 2006, in contrast, during the firsthalf of 2007 the Company has invested in a number of new transactions whichoffer significant medium-term return potential. The Manager hopes to maintainthe momentum in completing new unlisted investments as the process of rebuildingthis element of the portfolio continues. The strategy applied by the Manager is to use its extensive UK network toidentify suitable private companies and invest the majority of the portfolio inprivate equity transactions which offer growth and a healthy running yield, intandem with an actively managed AIM business primarily focused on new companiesseeking an IPO on that market. AIM investments are traded out as soon as marketliquidity permits, providing the opportunity for early capital gains if thecompany proves attractive to retail investors post IPO. Going forward, theManager believes that this dual approach on AIM and private equity provides theoptimum return model for VCT investors. Aberdeen Income and Growth VCT PLCSummary of Investment Changes For the six months ended 31 August 2007 Valuation Net investment/ Appreciation/ Valuation (disinvestment) (depreciation) 28 February 2007 31 August 2007 £'000 % £'000 £'000 £'000 £'000Unlisted investments Equities 5,994 20.9 (703) 860 6,151 22.4 Preference shares 750 2.6 50 (553) 247 0.9 Loan stock 7,675 26.7 3,158 (215) 10,618 38.7 14,419 50.2 2,505 92 17,016 62.0 AIM investments Equities 6,165 21.4 (1,335) 652 5,482 20.0 Listed investments Fixed income 975 3.4 1,262 - 2,237 8.2 Total investments 21,559 75.0 2,432 744 24,735 90.2 Other net assets 7,186 25.0 (4,476) - 2,710 9.8 Net assets 28,745 100.0 (2,044) 744 27,445 100.0 Aberdeen Income and Growth VCT PLCInvestment Portfolio Summary As at 31 August 2007 Book cost Valuation % of net % of % of equity equity held by otherInvestment Nature of business £'000 £'000 assets held clients* Transys Projects Provider of engineering services 825 2,874 10.4 20.9 20.9 to the rail industry TLC (Tender Loving Operator of daycare nurseries 1,516 1,516 5.5 23.2 -Childcare) House of Dorchester Speciality chocolate 910 1,338 4.8 44.2 - manufacturer PSCA International Producer of publications aimed 660 1,257 4.6 7.6 15.5 at public sector officials MoneyPlus Group Arranger and manager of debt 750 1,016 3.7 15.0 16.0 management plans and IVAs Homelux Nenplas Manufacturer of tile trims and 522 986 3.6 8.9 36.1 related products Martel Instruments Manufacturer of hand-held 796 796 2.9 11.3 22.1Holdings printers and terminals Camwatch Provider of CCTV monitoring and 786 786 2.9 14.8 28.6 installation services Funeral Services Operator of funeral directors 776 776 2.8 7.4 24.6Partnership Oliver Kay Holdings Distributor of fresh produce to 771 771 2.8 4.9 15.1 the on-trade catering industry ID Support Services Provider of CCTV security and 746 746 2.7 7.9 25.4Holdings air conditioning systems Lime Investments Shell company set up to acquire 696 696 2.5 26.6 53.4 branded niche food and beverage businesses MS Industrial Provider of industrial cleaning 546 546 2.0 9.3 35.7Services and waste management services Adler & Allan Provider of environmental 499 499 1.8 2.2 38.8Holdings services for the disposal of liquid waste PLM Dollar Group Provider of on-shore helicopter 402 402 1.5 4.6 26.2 services Sanastro Provider of business to business 750 402 1.5 9.6 3.5 financial publishing ELE Advanced Provider of precision 192 371 1.4 11.3 -Technologies engineering services Cyclotech Provider of services to the 348 348 1.3 4.8 15.3 energy sector Voxsurf Provider of software development 750 221 0.8 4.8 - Driver Hire Supplier of temporary drivers 203 203 0.7 1.1 43.6Investments Group Enpure Holdings Provider of project engineering 100 100 0.4 0.4 79.2 in the water and waste water sector The BigWord Holdings Provider of translation services 99 99 0.4 - - Buildstore Provider of on-line services to 98 0.4 0.6 7.0 self-build home owners 98 Other unlisted investments (15) 9,594 169 0.6 23,335 17,016 62.0 AIM Strategic Retail Retailer of home furnishings 700 569 2.1 2.0 2.0 Concateno Provider of services for the 332 483 1.8 0.7 1.8 testing of employees for drugs and alcohol Tanfield Group Manufacturer of zero emission 31 441 1.6 0.1 0.1 vehicles and powered access platforms Cello Group Provider of marketing and media 310 433 1.6 0.8 0.3 services Amazing Holdings Leisure and hotel developer 251 312 1.1 0.8 1.4 Avanti Provider of communications 283 280 1.0 0.5 0.9Communications Group integration services Synexus Clinical Manager of clinical trials 328 251 0.9 1.8 1.3Research Axeon Developer of semi-conductor 185 250 0.9 1.0 5.1 intellectual properties Hasgrove Provider of communication 168 204 0.7 0.7 1.4 services in public relations Individual Restaurant operator 133 192 0.7 0.4 0.8Restaurant Company System C Healthcare Provider of information services 311 158 0.6 0.6 0.7 and IT systems to the healthcare sector Autoclenz Provider of valeting services 185 148 0.5 1.4 0.3 Neuropharm Group Developer of pharmaceuticals for 100 145 0.5 0.2 0.5 neuro-development disorders Formation Group Provider of wealth management 108 135 0.5 0.3 1.1 and related professional services Brulines (Holdings) Provider of data systems that 112 132 0.5 0.4 0.8 monitor the flow rate of beer in public houses Mattioli Woods Provider of pension consultancy, 59 123 0.5 0.3 - troubleshooting and administration services Fountains Provider of land management 136 122 0.5 0.7 0.7 services Imprint Provider of recruitment and 204 118 0.4 0.2 0.4 search services Public Recruitment Provider of temporary staff to 447 118 0.4 0.7 0.5Group the public sector Neutrahealth Provider of BioCare products to 91 104 0.4 0.6 1.3 health practitioners and specialist retailers Tangent Provider of digital printing and 99 102 0.4 0.5 0.9Communications marketing services SDI Group Specialist in the design, build 96 100 0.4 0.3 0.7 and support of automated warehouse systems St Helen's Capital Provider of corporate advisory 50 84 0.3 2.3 7.0 services Hexagon Human Provider of executive search and 73 76 0.3 0.2 0.5Capital recruitment services 1st Dental Provider of dental laboratory 180 60 0.2 1.4 -Laboratories services Essentially Group Sports marketing, media 49 49 0.2 0.9 7.2 management and professional services group AT Communications Provider of communications 44 48 0.2 0.2 0.1Group integration services Mount Engineering Manufacturer, stockist and 49 47 0.2 0.3 2.9 distributor of engineering products Spectrum Interactive Provider of payphones and 209 41 0.1 0.7 0.9 internet access terminals Citel Technologies Provider of integrated solutions 166 39 0.1 - 0.5 for the telephony and communications sector Worthington Nicholls Installation and maintenance of 200 39 0.1 0.1 1.4Group air conditioning units in the hotel market Leisure & Gaming Provider of on-line gaming 314 32 0.1 0.3 0.3 services Bglobal Provider of smart meters 17 20 0.1 0.1 0.4 allowing remote reading of electricity and gas meters Award International Provider of merchandising 366 17 0.1 10 21.8Holdings materials sourcing services eXpansys Seller of mobile and wireless 10 10 - - 0.3 technology products over the internet Elevation Events Provider of events management 200 - - 3.4 7.2Group services 6,596 5,482 20.0 Listed fixed income Treasury 4.0% 2009 1,237 1,240 4.5 Treasury 5.0% 2008 999 997 3.7 2,236 2,237 8.2 Total investments 32,167 24,735 90.2 *Other clients of the Aberdeen Asset Management Group. Aberdeen Income and Growth VCT PLC Income Statement Six months ended 31 August 2007 (unaudited) Revenue Capital Total £'000 £'000 £'000 Investment income and deposit 771 - 771interestInvestment management fees (58) (234) (292)Other expenses (105) - (105)Gains on investments - 744 744Profit on ordinary activities before 608 510 1,118taxation Tax on ordinary activities (168) 168 -Profit on ordinary activities after 440 678 1,118taxation Earnings per share (pence) 1.2 1.9 3.1 Aberdeen Income and Growth VCT PLC Income Statement Six months ended 31 August 2006 (unaudited) Revenue Capital Total £'000 £'000 £'000 Investment income and deposit 253 - 253interestInvestment management fees (40) (161) (201)Other expenses (77) - (77)Gains on investments - 765 765Profit on ordinary activities before 136 604 740taxation Tax on ordinary activities (14) 14 -Profit on ordinary activities after 122 618 740taxation Earnings per share (pence) 0.4 1.7 2.1 Aberdeen Income and Growth VCT PLC Income Statement Year ended 28 February 2007 (audited) Revenue Capital Total £'000 £'000 £'000 Investment income and deposit 687 - 687interestInvestment management fees (141) (563) (704)Other expenses (193) - (193)Gains on investments - 2,748 2,748Profit on ordinary activities before 353 2,185 2,538taxation Tax on ordinary activities (51) 51 -Profit on ordinary activities after 302 2,236 2,538taxation Earnings per share (pence) 0.8 6.3 7.1 A Statement of Total Recognised Gains and Losses has not been prepared, as all gains andlosses are recognised in the Income Statement. All items in the above statement are derived from continuing operations. The Company has onlyone class of business and derives its income from investments made in shares, securities andbank deposits. The total column of this statement is the Profit and Loss Account of the Company. The accompanying Notes are an integral part of the Financial Statements. Aberdeen Income and Growth VCT PLC Reconciliation of movements in Shareholders' funds Six months ended Six months ended 31 August 2006 31 August 2007 Year ended 28 February 2007 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Opening Shareholders' funds 28,745 28,488 28,488Total profit for the year 1,118 740 2,538Repurchase and cancellation of shares - (299) (356)Dividends paid - revenue (284) (286) (286)Dividends paid - capital (2,134) (573) (1,639)Closing Shareholders' funds 27,445 28,070 28,745 The accompanying Notes are an integral part of the Financial Statements. Aberdeen Income and Growth VCT PLC Balance Sheet 31 August 31 August 28 February 2007 2006 2007 (unaudited) (unaudited) (audited) £'000 £'000 £'000Fixed assetsInvestments 24,735 26,023 21,559 Current assetsDebtors 1,040 1,799 899Cash and overnight deposits 1,819 439 6,922 2,859 2,238 7,821 CreditorsAmounts falling due within one year 149 191 635 Net current assets 2,710 2,047 7,186Net assets 27,445 28,070 28,745 Capital and reservesCalled up share capital 3,546 3,556 3,546Share premium account 17,235 17,235 17,235Realised capital reserve 2,618 (3,459) 452Unrealised capital reserve (6,758) (3,550) (5,270)Capital redemption reserve 339 329 339Profit and loss account 10,465 13,959 12,443Net assets attributable to Ordinary 27,445 28,070 28,745Shareholders Net Asset Value per Ordinary Share (pence) 77.4 78.9 81.1 The accompanying Notes are an integral part of the Financial Statements. Aberdeen Income and Growth VCT PLC Cash Flow Statement Six months Six months Year ended ended ended 28 February 2007 31 August 2007 31 August 2006 (unaudited) (unaudited) (audited) £'000 £'000 £'000Operating activitiesInvestment income received 618 276 1,065Deposit interest received 56 9 44Investment management fees paid (621) (531) (700)Secretarial fees paid (25) (25) (50)Cash paid to and on behalf of Directors (31) (38) (64)Other cash payments (68) (63) (89)Net cash (outflow)/inflow from operating (71) (372) 206activities Financial investmentPurchase of investments (8,974) (3,152) (6,283)Sale of investments 6,360 4,858 15,038Net cash (outflow)/inflow from financial (2,614) 1,706 8,755investment Equity dividends paid (2,418) (855) (1,925)Net cash (outflow)/inflow before financing (5,103) 479 7,036 FinancingRepurchase of Ordinary Shares - (282) (356)Net cash outflow from financing - (282) (356)(Decrease)/increase in cash (5,103) 197 6,680 The accompanying Notes are an integral part of the Financial Statements. Aberdeen Income and Growth VCT PLC Notes to the Financial Statements 1. Accounting policies The financial information for the six months ended 31 August 2007 and the sixmonths ended 31 August 2006 comprises non-statutory accounts within the meaningof Section 240 of the Companies Act 1985. The financial information contained inthis report has been prepared on the basis of the accounting policies set out inthe Annual Report and Financial Statements for the year ended 28 February 2007. The results for the year ended 28 February 2007are extracted from the fullaccounts for that year, which received an unqualified report from the Auditorsand have been filed with the Registrar of Companies. 2. Movement in reserves Share Realised Unrealised Capital Profit and capital capital redemption loss account premium reserve reserve reserve account £'000 £'000 £'000 £000 £'000 At 28 February 2007 17,235 452 (5,270) 339 12,443Gains on sales of investments - 2,232 - - -Net decrease in value of investments - - (1,488) - -Investment management fees - (234) - - -Dividends paid - - - - (2,418)Tax effect of capital items - 168 - - -Profit on ordinary activities after 440taxation - - - -As at 31 August 2007 17,235 2,618 (6,758) 339 10,465 3. Returns per Ordinary Share The returns per Ordinary Share are based on the following figures: Six months ended 31 August 2007 £'000 Weighted average number of Ordinary 35,463,992Shares in issueRevenue return £440,000Capital return £678,000 Other information The Net Asset Value per Ordinary Share has been calculated using the number ofOrdinary Shares in issue at 31 August 2007 of 35,463,992. A summary of investment changes for the six months under review and aninvestment portfolio summary as at 31 August 2007 are attached above. A full copy of the Interim Report and Financial Statements will be printed andissued to Shareholders. Copies of this announcement will be available to the public at the office ofAberdeen Asset Management PLC, 149 St Vincent Street, Glasgow G2 5NW and at theregistered office of the Company, One Bow Churchyard, Cheapside, London EC4M9HH. Directors' responsibility statement The implementation of the EU Transparency Obligations Directive and theassociated amendments to the rules laid down by the UK Listing Authority requirethe Directors to confirm their responsibilities in relation to the preparationand publication of the Interim Management Report and Financial Statements. The Directors confirm that, to the best of their knowledge: • the Financial Statements for the six months ended 31 August 2007 havebeen prepared in accordance with applicable accounting standards and with theStatement of Recommended Practice "Financial Statements of Investment TrustCompanies" ("the SORP") issued in December 2005; • the Interim Management Report includes a fair review of theinformation required by DTR 4.2.7R in relation to the indication of importantevents during the first six months, and of the principal risks and uncertaintiesfacing the Company during the second six months, of the year ending 28 February2008; and • the Interim Management Report includes adequate disclosure of theinformation required by DTR 4.2.8R in relation to related party transactions andany changes therein. On behalf of the Board Murray Johnstone Limited Secretary 11 October 2007 This information is provided by RNS The company news service from the London Stock Exchange