VIN.L Regulatory News (VIN)

VALUE AND INCOME TRUST PLC

ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED 31 MARCH 2012

SUMMARY

THE YEAR

·; Net Asset Value total return (with debt at par value) of 5.3% over one year and 71.7% over three years

·; Share price total return of 1.8% over one year and 136.9% over three years.

·; FTSE All-Share Index total return of 1.4% over one year and 67.9% over three years

·; Dividends for the year up 3.2% - increased for 25th consecutive year

DIVIDEND

The Directors recommend that a final dividend of 4.15 pence per share (2011 - 4.0 pence) is paid on 20 July 2012 to shareholders on the register on 22 June 2012. The ex-dividend date is 20 June 2012. An interim dividend of 3.9 pence per share (2011 - 3.8 pence) was paid on 6 January 2012.

CHAIRMAN'S STATEMENT

Over the year to 31 March 2012 Value and Income Trust's net asset value total return per share (that is taking the growth in net asset value and dividend together) increased by 0.9% with debt valued at market and by 5.3% with debt valued at par. Our equity portfolio had a good year and our property portfolio performed well in what was a difficult market for its type of property.

The share price total return was 1.8% while the FTSE All-Share Index ("the Index") total return was 1.4% over the same period. Over three years the share price total return was 136.9% compared to the increase in the Index of 67.9%. This result entitled OLIM to a performance fee of £792,663 under the existing investment management agreement. However, during the course of the year we renegotiated this agreement and a revised version was signed just after VIT's year end. OLIM offered to waive part of its fee for last year to reflect the terms of the new agreement and so the amount of the performance fee was reduced to £504,450.

The proposed final dividend of 4.15p would make total dividends for the year of 8.05p, an increase of 3.2%. Subject to approval at the Annual General Meeting, the final dividend would be payable on 20 July 2012 to shareholders on the register on 22 June 2012. The ex dividend date is 20 June 2012. The dividend has been increased every year since the change of investment policy in 1986.

Our two debentures have covenants attached to them. Information about these is included in note 12 to the financial statements; there is plenty of headroom in terms of both capital and income.

OLIM announced in September 2011 that it intended to split its business in two with the equity side remaining as a wholly-owned subsidiary of Close Brothers while the property activities were to be bought by a company formed by Matthew Oakeshott called OLIM Property. This was subject to FSA approval which was received in April 2012 and new

investment management agreements have been signed since then. As was stated at the time of the announcement, the same people are involved with the portfolio and the way in which VIT is run will not change.

David Back will be retiring at the conclusion of the Annual General Meeting. He was appointed a Director of the Company in 2000. VIT has benefitted from his long experience of the UK equity market; we are very grateful to him and he leaves with our best wishes for his retirement.

The prospects for dividend growth from our equities are encouraging and our properties are providing an attractive yield with no voids in the portfolio. Consequently we remain fully invested.

I hope that we shall see as many shareholders as possible at the Annual General Meeting on Friday 13 July 2012, which is to be held in Edinburgh this year. There will be a brief presentation on the investment outlook.

James Ferguson

8 June 2012

MANAGER'S REPORT

EQUITY PORTFOLIO

Market background

The year which ended in March 2012 saw wide swings in market levels, but overall the FTSE All Share Index fell by 2.1% in capital return terms, giving back a small part of the gains of the previous two years. Over the three years, since the nadir for equity markets, the Index has risen by 51.3%.

Our year began steadily with a marginal rise in the indices in the quarter to the end of June, but equity markets worldwide fell sharply during the summer to record the steepest quarterly falls in recent years. In the quarter to end September, the All Share Index fell by 14.5% to record a fall of 13.5% in the first half of our year. The background to the market collapse was the growing fear of a 'double dip' economic recession combined with the ever growing crisis in Europe, where Greece in particular was in need of further support in refinancing its sovereign debt.

Equity markets rose steadily in the second half of VIT's year, recovering most of the summer's downturn. In the final quarter of 2011 the background remained critical in Europe and forecasts for global growth in 2012 were downgraded, but investors began to appreciate the extreme undervaluation of companies and the opportunity to obtain the high and growing income achievable through investment in equities. As 2012 began, a settlement of the Greek funding crisis was agreed, and concerns about global growth diminished when the fourth quarter 2011 figures for US GDP were announced, showing growth at an annual rate of 3.0%. In the UK, company announcements were generally well received and dividends continued to grow, showing a rise of 11% in the first quarter of this year compared to a year earlier.

Within UK equities, mid-sized companies were more resilient than large companies with a fall of just 0.5%. High yielding companies performed best with a rise of 0.5% in the FTSE Higher Yield Index. Overseas equity markets fell by more than the UK market. The FTSE World Index recorded a fall of 2.7% and the worst performing area was the FTSE Emerging Markets Index which fell by 11.5%. In the currency markets the dollar was unchanged against the pound over the year but the euro fell by 6% to close our year at 1.20 to the pound. In the fixed interest markets, gilt yields fell significantly: ten year dated stocks began the year yielding 3.7% but by end March 2012 the return had fallen to 2.2%. The FTSE Gilt All Stocks Index gave a total return of 14.4% over the year. In the commodity markets, the oil price rose by 4.7% but copper fell by 10.3%, amid concerns over global economic growth.

Performance

VIT's equity performance over the year was significantly ahead of the All Share Index. In capital terms the portfolio rose by 2.5%, which was 4.6% above the Index return. Including income, the total return was +6.6%, compared with the total return on the All Share Index of +1.4%. The construction of our portfolio, with its bias towards higher yielding mid-sized companies, benefitted from market trends in those areas.

Our holdings in the global industrial sectors again outperformed with particular strength in Spectris (+32%), Croda (+26%), and Rotork (+17%). Babcock, despite operating mainly in the UK, rose by 28%. Our holdings in the banking and mining sectors fell by more than 10%, but our allocation to those sectors was well below the market average.

Portfolio

With dividends growing at three times the rate of inflation and a high starting yield on the market, our strategy continued to be one of full investment all through the year. In stock selection we continued to overweight the sectors operating in the faster growing economies of the world, and the defensive areas of the UK economy. We continued to underweight the resource and financial sectors. We avoided companies operating in the troubled countries of the Eurozone.

Transactions during the year totalled £17.3m, with net sales of £1.5m made to fund property purchases by VIT from Audax Properties plc. Forth Ports plc was taken over for cash early in our year and we sold the holding in Wincanton as the problems in Europe continued to escalate. We sold Interserve in order to consolidate the holding in Carillion, which we believe is a stronger company operating in the construction markets in the Middle East and the UK. We sold Stobart when the company announced a major change in strategy, which entailed a conflict of interest with its directors. We bought a new holding in Inmarsat, which provides global mobile satellite communications services, but sold it later when it issued a trading statement showing a decline in its core maritime business. We added to several existing companies as opportunities arose. At the end of March we were fully invested with a portfolio of 34 companies and an overall net yield of 4.5%.

Outlook

During the last year forecasts for economic growth have been downgraded several times from the expectations of a year ago. As expected, consumers have experienced a year ago. As expected, consumers have experienced a severe reduction in disposable income, suffering higher taxes, steeply rising inflation, stagnant wages, rising unemployment and, recently, rising mortgage interest rates. Despite public sector spending cuts, the fiscal deficit remains high and there is little prospect of reducing government debt in the life of this parliament. These two areas of economic concern and the ongoing strains in Europe have caused the sharp decline in the rate of growth of output. Whereas a year ago the Office for Budgetary Responsibility forecast UK GDP to grow at 1.7% in 2011 and 2.5% in 2012, the outcome for 2011 was only 0.7% and the current expectation for 2012 is only 0.8%.

Despite these gloomy statistics, UK quoted companies are generally in good health. In the calendar year 2011 earnings and dividends grew by 14% and the positive trend is continuing so far in 2012, though a little more slowly. The corporate sector refinanced itself in 2009 where necessary and with over half of UK earnings arising from interests overseas, UK plc gives a much broader exposure to world economic growth than just the growth forecast for this country. The retail sector has suffered greatly from the squeeze on consumers and several well regarded businesses have ceased trading, but elsewhere company balance sheets are well financed and many companies have found scope for efficiency savings, thus preserving their profits and earnings.

Europe will continue to worry economists and investors, and currently Spain's interest rates are under the spotlight as it attempts its latest refinancing of Government debt. If the situation becomes critical again, we expect further tranches of quantitative easing to take pace, and we certainly expect base rate to remain low, in view of the fragile rate of economic growth and the necessity to stimulate it, in order to begin to tackle the mountain of our government debt. Inflation has been falling but the steep rise in energy prices so far in 2012 may cause renewed upward pressure. Our equity market remains on an attractive valuation at a historic price earnings ratio of 10x and a yield of 3.5%.

OLIM Limited

PROPERTY PORTFOLIO

The Market

UK commercial property, as measured by the Investment Property Databank (IPD), gave an average total return of 8% in 2011. This reflected an income yield of 6%, plus 2% capital growth.

The retail and industrial warehouse property sectors both returned 7% with capital values marginally ahead. Office capital values rose by 3% to give a total return of 10%, driven purely by the recovery in the Central London office values from their collapse in 2008-9. Provincial office values remained under pressure. Average capital values of properties in the IPD Index peaked in the third quarter of 2011 and have since declined slowly. Transaction volumes in the investment property market are running around half their long term averages, which means valuers are shorter of evidence and further behind the curve than usual in picking up recent market weakness, especially in the rental value component of valuations. The gap between rents being paid by existing tenants and those which could be achieved on reletting has been widening.

Average rental values showed a similar trend to capital values, rising marginally in the first three quarters of 2011 and slipping since, with no net change over 2011 as a whole. Office rental values were up by 2% (again, purely the Central London effect) while retail and industrial rental values fell by 1%. Rental income actually received on portfolios included in the IPD showed little change over the year, as void rates remained high by historic standards at 7%, and rent reviews produced little uplift because many properties are now overrented, and tenants are negotiating harder, making it more difficult to maintain rental income. When leases expire, tenants now negotiate as if they were taking a new lease and typically request a rent free period or capital contribution and monthly rent payments even if they are happy to stay, and often a rent reduction as well.

Property values are now being pulled up by high yields and down by falling rents. Property let at affordable rents to strong covenants on long leases, preferably with inflation-linked or fixed-rent reviews, is getting steadily scarcer and more valuable, even with no economic - and therefore open market rental value - growth. But with average unexpired lease lengths on properties in the IPD index now down to 7 years, against 12 after the last recession 20 years ago, and overrenting now outweighing reversions, most UK commercial property is falling in value. Property rents, like unemployment, lag the real economy and, like unemployment, they need some real economic growth - about 1% to 1.5% a year - to stay level in real terms. So falling rental values for most types of commercial property in most parts of Britain are likely for at least the next two years, and maybe more, unless the economy accelerates back to its traditional 2%-3% post-recession real growth rates soon.

Average property capital values are likely to fall by about 5% over 2012 as a whole, with average rental values down by perhaps 2%, to give positive total returns of about 2%. But index-linked properties at yields 5% or 6% above index-linked gilts offer outstanding value. With little sign of growth in the UK economy at present and unemployment still rising, there may not be much difference this year between the performance of the different property sub sectors - City of London office values, for example are clearly suffering from oversupply and weakening tenant demand although the West End market remains tight. But for all property types, security of income will drive outperformance.

The banks are now pressing on with disposals of distressed assets to cash buyers who are known as reliable performers. Royal Bank and Bank of Scotland and the Irish banks have hundreds of billions of property exposure, and many property loans taken out in the boom years will need to be refinanced. Where banks had previously been prepared to maintain loans where interest payments were still being met in full although the capital ratios had been breached, they are no longer waiting for tenant demand to recover, but are appointing receivers to make disposals. Much of the property on which banks lent is highly risky and only saleable at yields well into double figures, but there is plenty of solid, if unfashionable income-producing stock now also coming through. In recent months banks have also been selling large packages of nonperforming property loans to hedge funds, who are aggressively enforcing their security and disposing of the underlying properties.

The UK economy is bumping along the bottom, with marginal rises and falls quarter by quarter but no clear growth pattern established. Pressures in the Eurozone affect confidence and growth here, but the USA is recovering. Estimates for UK GDP growth in 2012 have been downgraded, with no more than 0.5% - 1% growth now likely at best. Manufacturing is benefiting from a competitive exchange rate but it now only represents 10% of our economy, construction remains depressed, and bank lending to small and medium sized businesses has dried up. Consumer confidence is fragile, with the full effect of the public sector job cuts only now being felt, but although inflation has stayed higher for longer than expected, it is now clearly on the way, down, both at the factory gate and retail level. However average earnings growth at 1% is still well below retail price inflation, so the squeeze on real wages will continue for most of 2012. The Bank of England Monetary Policy Committee's repeated doses of quantitative easing are unlikely to restart economic growth unless they can be targeted to small business and be part of a wider stimulus package to boost business and consumer confidence. Larger businesses generally enjoy strong balance sheets and liquidity but are reluctant to invest.

Britain's credit rating remains strong, but we still have a substantial public sector deficit which will only fall slowly so long as economic growth remains so weak. Unless and until economic recovery is clearly back on as firm a track as after previous recessions, the balance of risk and reward is clearly still in favour of safe property let at affordable rents to strong tenants on long, preferably index-linked leases.

The Portfolio

VIT's property portfolio produced a total return of 7% over the year to March, just above the IPD Monthly Index return over the same period.

We concentrate on properties with strong income streams to meet the fixed interest payments on our long-term debt. These have also produced good long-term capital performance. The total return on our property portfolio has averaged 11% a year over the past 3 years, 5% over 5 years, 14% over 10 years, and 15% over the 25 years since the start. These returns are well above the IPD averages.

We sold a short lease property in St Andrews for £0.7m, 21% above valuation, during the year, and have sold the Hereford property at the latest valuation figure of £0.6m since the year end. The sales were at an average net yield of 6.8%. Also since the year end, we have bought a small supermarket in Devon for £0.5m at a net initial yield of 7% on a 20 year lease with R.P.I.-linked rent reviews.

All properties are fully let on full repairing and insuring leases, with upward only rent reviews and an average unexpired lease length of 13 years. 99% of the rental income is reviewed five yearly, with one-third index-linked.

The property portfolio is matched with £35 million of long term, fixed rate loans - £20 million of VIT 9 3/8% Debenture Stock repayable in 2026 and £15 million of 11% Debenture Stock, issued by our subsidiary Audax Properties plc and repayable in 2021. Because those Debenture Stocks were issued at a premium, their effective interest cost averaged 9%. We believe this is the right way to finance long-term property investment and we do not intend to replace it with shorter term bank debt. The turmoil in the property and banking markets over the past five years reinforces that view.

Results of Independent Revaluation

The VIT property portfolio, including properties held within our subsidiary Audax Properties plc, was subject to an independent professional revaluation by Jones Lang LaSalle at 31 March 2012.

The revaluation showed a value of £48,250,000; properties within VIT were valued at £18,175,000 while Audax Properties plc totalled £30,075,000. Our properties are revalued independently every six months, at 30 September and 31 March.

They showed little change in capital value over the full year, with a marginal rise in the first half and fall in the second half year. Twenty-six of the properties valued at 31 March 2012 were freehold or the Scottish equivalent and one is held on a long lease with 45 years to run.

OLIM Property Limited

BUSINESS REVIEW

The Directors have prepared this Business Review in accordance with the requirements of Section 417 of the Companies Act 2006.

A review of the Company's activities is given in the Chairman's Statement and the Investment Managers' Report, which includes likely future developments of the business.

Aims of the Company

Value and Income Trust ('VIT') is an investment trust whose shares are listed on the London Stock Exchange. VIT invests in higher-yielding, less fashionable areas of the UK commercial property and quoted equity markets, particularly in medium and smaller sized companies. VIT aims for long term real growth in dividends and capital value without undue risk.

Investment Policy

VIT's policy is to invest in quoted UK equities, UK commercial property and cash or near cash securities. It is VIT's policy not normally to invest in overseas shares or in unquoted companies. UK equities usually account for between half and three-quarters of the total portfolio and property for a quarter to a half but the asset allocation may go outside these ranges if relative market levels and investment value, or a desired increase in cash or near cash securities, make it appropriate.

VIT focuses on the fundamental values and incomes of the businesses in which it invests - their profitability, cashflows, balance sheets, management and products or services - and the location, tenants and leases of its property investments. The share portfolio has always yielded more than the FTSE All-Share Index. VIT has held between 30 and 40 individual shareholdings and between 20 and 30 individual properties in recent years, but both these ranges may change as market conditions or the size of each portfolio vary in future. No individual shareholding will account for more than 10% of the equity portfolio at the time of purchase.

VIT has had a long standing policy, since 1986, of increasing its exposure to equities and, particularly, to property through the judicious use of borrowings. All borrowings have been long term debentures to provide secure long term funding, avoiding the risks associated with short term funding of having to sell illiquid assets at a low point in markets if loans have to be repaid. Gearing has varied between a quarter and two-fifths of the total portfolio. VIT will not raise new borrowings if total net borrowings would then represent more than half of the total assets.

Principal Risks and Uncertainties

The Directors have identified the principal risks and uncertainties which affect the Company's business and these are detailed in Note 20 to the Financial Statements.

Additional risks include:

- Discount volatility: the Company's shares may trade at a price which represents a discount to its underlying net asset value; and

- Regulatory risk: the Company operates in a complex regulatory environment and faces a number of regulatory risks. Breaches of regulations, such as Sections 1158 - 1159 of Corporation Tax Act 2010 (formerly Section 842 of the Income and Corporation Taxes Act 1988), the UKLA Listing Rules or the Companies Act, could lead to a number of detrimental outcomes and reputational damage. The Audit and Management Engagement Committee monitors compliance with regulations by reviewing internal control reports from the Administrator and the Investment Manager, OLIM Limited ('OLIM').

Key Performance Indicators

The Directors have identified the Company's share price total return and net asset value total return, relative to the FTSE All-Share Index (total return) and the Company's dividend growth, relative to the Retail Prices Index, as the three key performance indicators for determining the progress of the Company and the relevant figures may be found in 'The Year' above

Results and Dividend

The Directors recommend that a final dividend of 4.15 pence per share (2011 - 4.0 pence) is paid on 20 July 2012 to shareholders on the register on 22 June 2012. The ex-dividend date is 20 June 2012. An interim dividend of 3.9 pence per share (2011 - 3.8 pence) was paid to shareholders on 6 January 2012.

Table 1 shows the revenue reserve position and dividends paid and payable by the Group and the Company, under the former basis of accounting, subject to shareholders' approval of the proposed final dividend at the forthcoming Annual General Meeting.

Table 1 Group and Company revenue reserves

Principal Activity and Status

The business of the Company is that of an investment trust and the Directors do not envisage any change in this activity in the foreseeable future. The Company is registered as a public limited company in Scotland under company number SC 50366 and is an investment company as defined by Section 833 of the Companies Act 2006.

The Company has been approved by HM Revenue & Customs as an investment trust for the purposes of Sections 1158 - 1159 of Corporation Tax Act 2010 (formerly Section 842 of the Income and Corporation Taxes Act 1988) for the year ended 31 March 2011. The Directors are of the opinion, under advice, that the Company has conducted its affairs for the year ended 31 March 2012 so as to be able to continue to obtain approval as an investment trust under Sections 1158 - 1159 of Corporation Tax Act 2010 (formerly Section 842 of the Income and Corporation Taxes Act 1988) for that year, although approval for that year would be subject to review were there to be any enquiry under the Corporation Tax Self-Assessment regime.

The Company's affairs have also been conducted in such a way as to permit its ordinary shares to be included in Individual Savings Accounts and the Directors intend that the ordinary shares will continue to be eligible in the future. The Company makes no political donations or expenditures or donations for charitable purposes and, in common with most investment trusts, has no employees.

Share Capital

As at 31 March 2011 and 31 March 2012, the Company had 45,549,975 ordinary shares of 10p nominal in issue. Each ordinary share entitles the holder to one vote on a show of hands and, on a poll, to one vote for every share held.

Investment Management

During the year ended 31 March 2012, investment management of the Company's assets and responsibility for the Company's operations was delegated to OLIM Limited ("OLIM"). OLIM was employed under a contract which could be terminated by either party on giving one year's notice. OLIM received an annual investment management fee of £972,140, excluding VAT, calculated as 2/3 of 1% of the VIT Group of Companies' total assets less current liabilities ("VIT total assets").

OLIM was also entitled to a performance fee, charged wholly to capital, if the total positive returns to shareholders from their investment in VIT exceeded the total return on the FTSE All-Share Index by more than ten percentage points in any three-year period. The objective of the performance bonus was to give the investment manager ten per cent of the additional value generated for shareholders by such out-performance. Accordingly, OLIM was contractually entitled to a performance fee of £792,663 for the year ended 31 March 2012. The Directors and OLIM have agreed that a performance fee of £504,450, excluding VAT, be payable to OLIM. This figure is calculated as if total investment management fees payable to OLIM for the year ended 31 March 2012, including the performance fee, were capped at 1% of VIT total assets as under the new agreements set out below.

With effect from 5 April 2012, responsibility for providing property investment management services to the Company was transferred from OLIM to OLIM Property Limited ("OLIM Property"). OLIM continues to provide equity investment management services to the Company. Under two separate investment management agreements entered into by the Company, both of which may be terminated by either party on giving one year's notice, OLIM and OLIM Property receive an investment management fee of 2/3 of 1% of VIT total assets, which is allocated 2/3 to OLIM and 1/3 to OLIM Property.

OLIM and OLIM Property are also entitled to a performance fee subject to the achievement of certain criteria. The objective is to give the Managers a performance fee of 10% of any outperformance of the VIT share price total return ("VIT SPTR") over the FTSE All-Share Index share price total return ("FTSE SPTR"), the fee only becoming payable on the excess once a minimum outperformance of 10% has been achieved since 31 March 2011.

The performance fee will be paid annually in respect of performance over the preceding three years. The fee will be payable only if the VIT SPTR has been positive over the period and, in addition, the NAV total return has been positive and has exceeded the FTSE SPTR over the period.

The maximum performance fee payable in any year will be 1/3 of 1% of total VIT assets and will be divided 1/3 to OLIM Property and 2/3 to OLIM. The fee will be wholly charged to capital.

An additional fee is payable to Aberdeen Asset Management PLC for company secretarial and administrative services.

The non-executive Directors review the terms and conditions of the appointment of OLIM and OLIM Property on a regular basis. Following the most recent review, the Directors are satisfied that the continuing appointment of OLIM and OLIM Property as investment managers, on the current terms, is in the best interests of shareholders as a whole as the Company benefits from the expertise of the specialised teams of investment professionals at OLIM and OLIM Property. In the event of termination on less than the agreed notice period, compensation is payable in lieu of the unexpired notice period.

By order of the Board

Aberdeen Asset Management PLC

Secretaries

Edinburgh

8 June 2012

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

The financial statements are published on the Company's website which is maintained by, OLIM: www.olim.co.uk. The maintenance and integrity of the corporate and financial information relating to the Company is the joint responsibility of the Directors, OLIM and OLIM Property. The work carried out by the Auditor does not involve consideration of the maintenance and integrity of this website and, accordingly, the Auditor accepts no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. Visitors to the website need to be aware that legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors are required to prepare the Group financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and Article 4 of the European Union IAS Regulation and have also chosen to prepare the parent company financial statements in accordance with IFRSs as adopted by the European Union. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, International Accounting Standard 1 requires that Directors:

·; properly select and apply accounting policies;

·; present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

·; provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and

·; make an assessment of the Company's ability to continue as a going concern.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Responsibility Statement

The Directors confirm to the best of their knowledge, that:

·; the Financial Statements, prepared in accordance with IFRSs as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and

·; the Directors' Report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.

For and on behalf of the Board of Value and Income Trust PLC.

James Ferguson

Chairman

8 June 2012

VALUE AND INCOME TRUST PLC

GROUP STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 March 2012

VALUE AND INCOME TRUST PLC

COMPANY STATEMENT OF COMPREHENSIVE INCOME

VALUE AND INCOME TRUST PLC

STATEMENT OF FINANCIAL POSITION

As at 31 March 2012

VALUE AND INCOME TRUST PLC

STATEMENT OF CHANGES IN EQUITY

VALUE AND INCOME TRUST PLC

GROUP STATEMENT OF CASH FLOWS

For the year ended 31 March 2012

VALUE AND INCOME TRUST PLC

COMPANY STATEMENT OF CASH FLOWS

For the year ended 31 March 2012

VALUE AND INCOME TRUST PLC

NOTES TO FINANCIAL STATEMENTS