VIN.L Regulatory News (VIN)

31 March 2013

Net asset value per share valuing debt at par (including income)

298.2p

Net asset value per share valuing debt at market value (including income)

269.8p

Ordinary share price

210.8p

Discount of ordinary share price to net asset value per share valuing debt at market value (including revenue)

21.9%

Total interim dividend and proposed final dividend per share

8.30p

Total assets less current liabilities

£171.2m

 Year ended

 Year ended

 31 March 2013

 31 March 2012

 Revenue

 Capital

 Total

 Revenue

 Capital

 Total

 £'000

 £'000

 £'000

 £'000

 £'000

 £'000

Investment income

 Dividend income

4,669

-

4,669

4,459

-

4,459

 Rental income

3,562

-

3,562

3,398

-

3,398

 Interest income on short-term deposits

2

-

2

1

-

1

 Other operating income

3,564

-

3,564

3,399

-

3,399

 Other comprehensive income

 Unrealised losses on investment properties

-

(2,302)

(2,302)

-

(798)

(798)

8,233

(2,302)

5,931

7,858

(798)

7,060

 Gains and losses on investments

 Realised gains on held-at-fair-value investments

-

4,400

4,400

-

105

105

 Unrealised gains on held-at-fair-value investments

-

18,417

18,417

-

3,782

3,782

 Total income

8,233

20,515

28,748

7,858

3,089

10,947

 Expenses

 Investment management fees

(312)

(854)

(1,166)

(292)

(1,184)

(1,476)

 Other operating expenses

(513)

-

(513)

(421)

-

(421)

 Finance costs

(3,501)

-

(3,501)

(3,505)

-

(3,505)

 Total expenses

(4,326)

(854)

(5,180)

(4,218)

(1,184)

(5,402)

 Profit before tax

3,907

19,661

23,568

3,640

1,905

5,545

 Taxation

-

390

390

-

182

182

 Profit for the period

3,907

20,051

23,958

3,640

2,087

5,727

 Earnings per ordinary share (pence)

8.58

44.02

52.60

7.99

4.58

12.57

The total column of this statement represents the Statement of Comprehensive Income of the Group, prepared in accordance with IFRS.

The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the

Association of Investment Companies. All items in the above statement derive from continuing operations. All income is attributable to the equity holders of Value and Income Trust PLC, the parent company. There are no minority interests.

The Board is proposing a final dividend of 4.30p per share, making a total dividend of 8.30p per share for the year ended 31 March 2013 (2012 - 8.05p per share) which, if approved, will be payable on 19 July 2013.

 Year ended

 Year ended

 31 March 2013

 31 March 2012

 Revenue

 Capital

 Total

 Revenue

 Capital

 Total

 £'000

 £'000

 £'000

 £'000

 £'000

 £'000

 Investment income

 Dividend income

4,669

-

4,669

5,609

-

5,609

 Rental income

1,348

-

1,348

1,277

-

1,277

 Other operating income

1,348

-

1,348

1,277

-

1,277

 Other comprehensive income

 Unrealised (losses)/gains on investment properties

-

(442)

(442)

-

70

70

6,017

(442)

5,575

6,886

70

6,956

 Gains and losses on investments

 Realised gains/(losses) on held-at-fair-value investments

-

4,555

4,555

-

(97)

(97)

 Unrealised gains on held-at-fair-value investments

-

16,865

16,865

-

2,150

2,150

 Total income

6,017

20,978

26,995

6,886

2,123

9,009

 Expenses

 Investment management fees

(208)

(610)

(818)

(194)

(957)

(1,151)

 Other operating expenses

(386)

-

(386)

(280)

-

(280)

 Finance costs

(1,851)

-

(1,851)

(1,852)

-

(1,852)

 Total expenses

(2,445)

(610)

(3,055)

(2,326)

(957)

(3,283)

 Profit before tax

3,572

20,368

23,940

4,560

1,166

5,726

 Taxation

18

-

18

1

-

1

 Profit for the period

3,590

20,368

23,958

4,561

1,166

5,727

 Earnings per ordinary share (pence)

7.88

44.72

52.60

10.01

2.56

12.57

The total column of this statement represents the Statement of Comprehensive Income of the Company prepared in accordance with IFRS.

The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the

Association of Investment Companies. All items in the above statement derive from continuing operations.

All income is attributable to the equity holders of Value and Income Trust PLC, the parent company. There are no minority interests.

Group

Company

As at

As at

As at

As at

31 March 2013

31 March 2012

31 March 2013

31 March 2012

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

ASSETS

Non current assets

Investments held at fair value through profit or loss

123,815

101,197

136,779

115,713

Investment properties held at fair value through profit or loss

46,225

48,250

17,850

18,175

170,040

149,447

154,629

133,888

Current assets

Cash and cash equivalents

2,140

3,726

2,038

3,320

Other receivables

689

277

673

276

2,829

4,003

2,711

3,596

TOTAL ASSETS

172,869

153,450

157,340

137,484

Current liabilities

Other payables

(1,701)

(2,114)

(1,172)

(1,538)

TOTAL ASSETS LESS CURRENT LIABILITIES

171,168

151,336

156,168

135,946

Non-current liabilities

Debenture stock

(35,325)

(35,349)

(20,325)

(20,349)

Deferred tax

-

(390)

-

-

(35,325)

(35,739)

(20,325)

(20,349)

NET ASSETS

135,843

115,597

135,843

115,597

EQUITY ATTRIBUTABLE TO EQUITY SHAREHOLDERS

Called up share capital

4,555

4,555

4,555

4,555

Share premium

18,446

18,446

18,446

18,446

Retained earnings

112,842

92,596

112,842

92,596

TOTAL EQUITY

135,843

115,597

135,843

115,597

Net Asset Value per ordinary share (pence)

298.23

253.78

298.23

253.78

Group

Year ended 31 March 2013

Year ended 31 March 2012

Share

Share

Retained

Total

Share

Share

Retained

Total

capital

premium

earnings

capital

premium

earnings

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Net assets at 31 March 2012

4,555

18,446

92,596

115,597

4,555

18,446

90,462

113,463

Net profit for the year

-

-

23,958

23,958

-

-

5,727

5,727

Dividends paid

-

-

(3,712)

(3,712)

-

-

(3,593)

(3,593)

Net assets at 31 March 2013

4,555

18,446

112,842

135,843

4,555

18,446

92,596

115,597

Company

Year ended 31 March 2013

Year ended 31 March 2012

Share

Share

Retained

Total

Share

Share

Retained

Total

capital

premium

earnings

capital

premium

earnings

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Net assets at 31 March 2012

4,555

18,446

92,596

115,597

4,555

18,446

90,462

113,463

Net profit for the year

-

-

23,958

23,958

-

-

5,727

5,727

Dividends paid

-

-

(3,712)

(3,712)

-

-

(3,593)

(3,593)

Net assets at 31 March 2013

4,555

18,446

112,842

135,843

4,555

18,446

92,596

115,597

2013

2012

£'000

£'000

£'000

£'000

Cash flows from operating activities

Dividend income received

4,346

4,413

Rental income received

3,427

3,379

Interest received

2

1

Operating expenses paid

(2,037)

(1,445)

Taxation paid

(9)

-

NET CASH FROM OPERATING ACTIVITIES

5,729

6,348

Cash flows from investing activities

Purchase of investments

(12,315)

(10,416)

Sale of investments

12,237

12,571

NET CASH (OUTFLOW)/INFLOW FROM

INVESTING ACTIVITIES

(78)

2,155

Cash flow from financing activities

Interest paid

(3,525)

(3,528)

Dividends paid

(3,712)

(3,593)

NET CASH OUTFLOW FROM FINANCING ACTIVITIES

(7,237)

(7,121)

NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS

(1,586)

1,382

Cash and cash equivalents at 1 April 2012

3,726

2,344

Cash and cash equivalents at 31 March 2013

2,140

3,726

2013

2012

£'000

£'000

£'000

£'000

Cash flows from operating activities

Dividend income received

4,346

5,563

Rental income received

1,287

1,308

Interest received

-

-

Operating expenses paid

(1,557)

(1,001)

Taxation paid

(9)

-

NET CASH FROM OPERATING ACTIVITIES

4,067

5,870

Cash flows from investing activities

Purchase of investments

(10,501)

(9,629)

Sale of investments

10,738

10,118

Increase in loan to subsidiary

1

45

NET CASH INFLOW

FROM INVESTING ACTIVITIES

238

534

Cash flow from financing activities

Interest paid

(1,875)

(1,875)

Dividends paid

(3,712)

(3,593)

NET CASH OUTFLOW FROM FINANCING ACTIVITIES

(5,587)

(5,468)

(1,282)

936

Cash and cash equivalents at 1 April 2012

3,320

2,384

Cash and cash equivalents at 31 March 2013

2,038

3,320

Notes to the Accounts

1

Accounting policies

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs)

which comprise standards and interpretations approved by the International Accounting Standards Board (IASB)approved by the International Accounting Standards Committee (IASC) that remain in effect, and to the extent that they have been adopted by the European Union.

The functional and reporting currency of the Group is pounds sterling because that is the currency of the primary

 economic environment in which the Group operates.

(a) Basis of preparation

The financial statements have been prepared on a going concern basis and on the historical cost basis, except for the

revaluation of certain financial assets. The principal accounting policies adopted are set out below. Where presentational

guidance set out in the Statement of Recommended Practice Financial Statements of Investment Trust Companies and

Venture Capital Trusts (the SORP) issued by the Association of Investment Companies (AIC) in January 2009

is consistent with the requirements of IFRSs, the directors have sought to prepare the financial statements on a basis

compliant with the recommendations of the SORP.

The directors are of the opinion that the Group is engaged in a single segment of business, being investment business.

(b) Going concern

The financial position of the Group as at 31 March 2013 is shown in the Statement of Financial Position. The cash flows of the Group for the year ended 31 March 2013, which are not untypical, are set out in the Group Statement of Cash Flows. The Group had fixed debt totalling £35,325,000 as at 31 March 2013. None of the borrowings is repayable before 2021. The Group had no short term borrowings. As at 31 March 2013, the Group's total assets less current liabilities exceeded its total non current liabilities by a factor of over four. The assets of the Group consist mainly of securities and investment properties that are held in accordance with the Group's investment policy. Most of these securities are readily realisable, even in volatile markets. The Directors, who have reviewed carefully the Group's forecasts for the coming year, consider that the Group has adequate financial resources to enable it to continue in operational existence for the foreseeable future. Accordingly the Directors believe that it is appropriate to continue to adopt the going concern basis in preparing the Group's accounts.

(c) Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entity controlled by

the Company (its subsidiary). Control is achieved where the Company has the power to govern the financial and

operating policies of an investee entity so as to obtain benefits from its activities. All intra-group transactions, balances,

income and expenses are eliminated on consolidation. The investment in the subsidiary is recognised at fair value in the

financial statements of the Company. This is considered to be the net asset value of the shareholders' funds, as shown

in its Statement of Financial Position.

Audax Properties PLC, a wholly owned subsidiary of the Company, charges expenses wholly to income.

On consolidation, however, an adjustment is made to charge 70% of the investment management fee paid by

Audax Properties PLC to capital. The allocation has no effect on the total return of the Company or the Group.

(d) Presentation of Statement of Comprehensive Income

In order to reflect better the activities of an investment trust company and in accordance with guidance issued by the AIC,

supplementary information which analyses the Statement of Comprehensive Income between items of a revenue and capital

nature has been presented alongside the Statement of Comprehensive Income. In accordance with the Company's Articles

net capital returns may not be distributed by way of dividend.

Additionally the net revenue is the measure that the directors believe to be appropriate in assessing the

Company's compliance with certain requirements set out in sections 1158-1160 of the Corporation Tax Act 2010.

(e) Income

Dividend income from investments is recognised as revenue for the period on an ex-dividend basis. Where no ex-dividend

date is available, dividends receivable on or before the period end are treated as revenue for the period.

Where the Group has elected to receive dividend income in the form of additional shares rather than cash, the amount of

cash dividend foregone is recognised as income. Any excess in the value of shares received over the amount of cash

dividend foregone is recognised as a gain in the income statement.

Interest receivable from cash and short term deposits and interest payable is accrued to the end of the period.

Rental is recognised on a straight line basis over the period of the relevant lease. Lease incentives, where material, are

spread evenly over the term of the lease. Other income is recognised as earned.

(f) Expenses and Finance Costs

All expenses and finance costs are accounted for on an accruals basis. Expenses are presented as capital where a

connection with the maintenance or enhancement of the value of investments can be demonstrated. In this respect, the

investment management fees are allocated 30% to revenue and 70% to capital to reflect the Board's expectations of long

term investment returns. Any performance fees payable are allocated to capital, reflecting the fact that, although they are

calculated on a total return basis, they are expected to be attributable largely to capital performance. It is normal practice for investment trust companies to allocate finance costs to capital on the same basis as the investment management fee

allocation. However, as the Company has a significant exposure to property, and property companies do

not charge finance costs to capital, the directors consider it inappropriate to allocate finance costs to capital.

(g) Taxation

Deferred tax is recognised in respect of all temporary differences that have originated but not reversed at the date of the

Statement of Financial Position, where transactions or events that result in an obligation to pay more tax in the future or the

right to pay less tax in the future have occurred at the date of the Statement of Financial Position.

This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the temporary differences can be deducted. Due to the Company's status as an investment trust company, and the intention to continue to meet the conditions required to retain approval for the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments.

This is not the case for the subsidiary company and hence the Group where such provision is made, calculated at the tax

rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or

credited in accordance with the accounting treatment of the item which gives rise to the requirement for that provision.

(h) Dividends payable

Interim dividends are recognised as a liability in the period in which they are paid as no further approval is required in

respect of such dividends. Final dividends are recognised as a liability only after they have been approved by shareholders

in general meeting.

(i) Investments

All investments have been designated upon initial recognition as fair value through profit or loss.

Investments are recognised and derecognised on the trade date where a purchase or sale is under a contract whose terms

require delivery within the timeframe established by the market concerned, and are initially measured at fair value.

Subsequent to initial recognition, investments are recognised at fair value through profit or loss. For listed investments,

this is deemed to be bid market prices or closing prices for SETS stocks sourced from the London Stock Exchange.

SETS is the London Stock Exchange electronic trading service covering most of the market including all FTSE 100

constituents and most liquid FTSE 250 constituents along with some other securities. Gains and losses arising from changes in fair value are included in net profit or loss for the period as a capital item in the Statement of Comprehensive Income and are ultimately recognised in the retained earnings.

As disclosed in Note 20, the group leases out all of its properties on operating leases. A property held under

an operating lease is classified and accounted for as an investment property where the group holds it to earn rental,

capital appreciation or both. Any such property leased under an operating lease is carried at fair value. Fair value is

established by half-yearly professional valuation on an open market basis by Jones Lang LaSalle, Chartered Surveyors

and Valuers, and in accordance with the RICS Valuation Professional Standards. The determination of fair value by Jones Lang LaSalle is supported by market evidence. It is not more heavily based on other factors because of the nature of the properties and the availability of comparable market data.

(j) Cash and cash equivalents

Cash and cash equivalents comprises deposits held with banks.

(k) Non - current liabilities

All loans and borrowings are initially recognised at cost, being the fair value of the consideration received, less issue

costs where applicable. After initial recognition, all interest-bearing loans and borrowings are subsequently measured at

amortised cost. Amortised cost is calculated by taking into account any discount or premium on settlement. The costs of

arranging any interest-bearing loans are capitalised and amortised over the life of the loan.

(l) Adoption of new and revised Accounting Standards

At the date of authorisation of these financial statements, the following Standard and Interpretations were in issue but not yet effective;

 - Amendments to IFRS 7 - Disclosures: Offsetting Financial Assets and Financial Liabilities (effective for annual periods beginning on or after 1 January 2013).

 - Amendments to IFRS 10 - Definition of Investment Entity (early adoption permitted) (effective for annual periods beginning on or after 1 January 2014).

 - IFRS 9 - Financial Instruments: Classification and Measurement (effective for annual periods beginning on or after 1 January 2015).

 - IFRS 10 - Consolidated Financial Statements (early adoption permitted) (effective for annual periods beginning on or after 1 January 2013).

 - IFRS 11 - Joint Arrangements (early adoption permitted) (effective for annual periods beginning on or after 1 January 2013).

 - IFRS 12 - Disclosure of Interests in Other Entities (early adoption permitted) (effective for annual periods beginning on or after 1 January 2013).

 - IFRS 13 - Fair Value Measurement (effective for annual periods beginning on or after 1 January 2013).

 - Annual Improvements and Amendments to IFRS (2009-2011) - IFRS 1 First - time Adoption of International Financial Reporting Standards, IAS 1 Presentation of Financial Statements, IAS 16 Property, Plant and Equipment, IAS 32 Financial Instruments: Presentation, IAS 34 Interim Financial Reporting. (effective for annual periods beginning on or after 1 January 2013).

 - Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance (Amendments to IFRS 10, IFRS 11 and IFRS 12) (effective for annual periods beginning on or after 1 January 2013).

 - Amendments to IAS 19 - Employee Benefits (effective for annual periods on or after 1 January 2013).

 - IAS 27 - Separate Financial Statements (early adoption permitted) (effective for annual periods beginning on or after 1 January 2013).

 - IAS 28 - Investments in Associates and Joint Ventures (early adoption permitted) (effective 1 January 2013).

 - Amendments to IAS 32 - Offsetting Financial Assets and Financial liabilities (effective for annual periods beginning on or after 1 January 2014).

The Directors anticipate that adoption of these Standards and Interpretations in future periods will have no material financial impact on the financial statements of the Company. The Company concludes however that certain additional disclosures may be necessary on their application.

2

Approval and Publication of Statutory Financial Statements and Annual General Meeting

The financial information contained within this preliminary results announcement does not constitute the Company's statutory financial statements for the years ended 31 March 2013 or 31 March 2012 but is derived from those financial statements.

Statutory financial statements for the year ended 31 March 2012 have been delivered to the Registrar of Companies. The independent auditor's report in respect of the year ended 31 March 2012 was unqualified and did not contain statements under Section 498 of the Companies Act 2006.

The preliminary results announcement for the year ended 31 March 2013 was approved by the Board of Directors on 24 May 2013.

The Independent Auditor has reported on the financial statements for the year ended 31 March 2013. As in previous years, there is an emphasis of matter in relation to the treatment of finance costs.

The Annual Report and Statutory Financial Statements for the year ended 31 March 2013 will be posted to shareholders in June 2013 and copies will thereafter be available for download from www.olim.co.uk or by contacting the Managers., OLIM Limited or OLIM Property Limited, Pollen House, 10/12 Cork Street, London, W1S 3NP, (telephone 020 7439 4400) or from the Secretaries, Maven Capital Partners UK LLP, Kintyre House, 205 West George Street, Glasgow G2 2LW.

The statutory financial statements for the year ended 31 March 2013 will be delivered to the Registrar of Companies following the Company's Annual General Meeting which is to be held at the offices of Shepherd and Wedderburn LLP, 1 Exchange Crescent, Conference Square, Edinburgh, EH3 8UL on Friday 12 July 2013 at 12.30pm.

Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise and may well be affected by exchange rate movements. Investors may not get back the amount they originally invested.

For Value and Income Trust PLC

Maven Capital Partners UK LLP

Secretaries

24 May 2013