Net liabilities:                                                         GBP0.03 
million 
Income receivable recognised in year:               GBP61,000 
Valuation basis:                                                    Earnings 
multiple 
 
Bluebell Telecom Services Limited ('Bluebell') (formerly Vulcan Services II 
Limited) 
Bluebell provides landline, mobile and data solutions to businesses, helping to 
cut costs and improve efficiency through simple rationalisation and more 
effective deployment of voice and data services 
 
+-------------------+---+----------+---+-----------+ 
| Asset class       |   |     Cost |   | Valuation | 
+-------------------+---+----------+---+-----------+ 
| A Ordinary shares |   |   GBP24,000 |   |    GBP24,000 | 
+-------------------+---+----------+---+-----------+ 
| Loan stock        |   |  GBP201,000 |   |   GBP226,000 | 
+-------------------+---+----------+---+-----------+ 
| Total             |   |  GBP225,000 |   |   GBP250,000 | 
+-------------------+---+----------+---+-----------+ 
 
Investment date:                                                  September 2010 
Equity held:                                                           0.50% 
Last audited accounts:                                       N/A* 
Revenues:                                                             N/A* 
Profit before interest & tax:                                N/A* 
Net assets:                                                            N/A* 
Income receivable recognised in year:               GBP9,000 
Valuation basis:                                                    Earnings 
multiple 
 
*The first year's statutory accounts are yet to be produced 
 
Hydrobolt Limited 
Hydrobolt is a specialist manufacturer of high integrity fasteners for the oil 
and gas and energy sectors. 
 
+-------------------+---+----------+---+-----------+ 
| Asset class       |   |     Cost |   | Valuation | 
+-------------------+---+----------+---+-----------+ 
| A Ordinary shares |   |    GBP8,000 |   |    GBP34,000 | 
+-------------------+---+----------+---+-----------+ 
| B Ordinary shares |   |   GBP51,000 |   |    GBP51,000 | 
+-------------------+---+----------+---+-----------+ 
| Loan stock        |   |  GBP138,000 |   |   GBP138,000 | 
+-------------------+---+----------+---+-----------+ 
| Total             |   |  GBP197,000 |   |   GBP223,000 | 
+-------------------+---+----------+---+-----------+ 
 
Investment date:                                                  April 2008 
Equity held:                                                           0.9% 
Last audited accounts:                                       31 March 2010 
Revenues:                                                         GBP14.5 million 
Profit before interest & tax:                                 GBP1.5 million 
Net assets:                                                             GBP1.6 
million 
Income receivable recognised in year:               GBP20,000 
Valuation basis:                                                    Earnings 
multiple 
 
 
Directors' Responsibility Statement 
 
The directors are responsible for preparing the Directors' Report and the 
financial statements in accordance with applicable law and regulations. 
 
Company law requires the directors to prepare financial statements for each 
financial year. Under that law the directors have elected to prepare the 
financial statements in accordance with United Kingdom Generally Accepted 
Accounting Practice (United Kingdom Accounting Standards and applicable laws). 
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 
and profit or loss of the company for that period. In preparing these financial 
statements, the directors are required to: 
 
 ·            select suitable accounting policies and then apply them 
consistently; 
 ·            make judgments and accounting estimates that are reasonable and 
prudent; 
 ·            state whether applicable UK Accounting Standards have been 
followed, subject to any material departures disclosed and explained in the 
financial statements; and 
 ·            prepare the financial statements on the going concern basis unless 
it is inappropriate to presume that the company will continue in business. 
 
 
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. 
 
In so far as each of the directors is aware: 
 
 ·            there is no relevant audit information of which the company's 
auditor are unaware; and 
 ·            the directors have taken all steps that they ought to have taken to 
make themselves aware of any relevant audit information and to establish that 
the auditor are aware of that information. 
 
 
The directors are responsible for the maintenance and integrity of the corporate 
and financial information included on the company's website. Legislation in the 
United Kingdom governing the preparation and dissemination of financial 
statements may differ from legislation in other jurisdictions. 
The Directors confirm, to the best of their knowledge, that: 
 
 ·            the financial statements, prepared in accordance with the 
applicable set of accounting standards, give a true and fair view of the assets, 
liabilities, financial position and profit or loss of the company; and 
 
 ·            the management 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 they face. 
 
 
 
On behalf of the board 
 
 
 
Stuart Brocklehurst 
Chairman 
16 May 2011 
 
 
 
Income Statement 
                                                   +---------------------+ 
                                                   | Year to 31 January  | 
                                                   |        2011         | 
                                                   |                     | 
                                                   |Revenue Capital Total| 
                                                   |                     | 
                                              Notes|   GBP'000    GBP'000  GBP'000| 
                                                   |                     | 
                                                   |                     | 
                                                   |                     | 
Loss on disposal of fixed asset investments    10  |      -     (6)   (6)| 
                                                   |                     | 
Gain on disposal of current asset investments  12  |      -       6     6| 
                                                   |                     | 
                                                   |                     | 
                                                   |                     | 
Fixed asset investment holding gains           10  |      -     195   195| 
                                                   |                     | 
                                                   |                     | 
                                                   |                     | 
Investment income                               2  |    378       -   378| 
                                                   |                     | 
                                                   |                     | 
                                                   |                     | 
Investment management fees                      3  |   (42)   (125) (167)| 
                                                   |                     | 
                                                   |                     | 
                                                   |                     | 
Other expenses                                  4  |  (202)       - (202)| 
                                                   |                     | 
                                                   |                     | 
                                                   |                     | 
Return on ordinary activities before tax           |    134      70   204| 
                                                   |                     | 
                                                   |                     | 
                                                   |                     | 
Taxation on return on ordinary activities       6  |    (2)       -   (2)| 
                                                   |                     | 
                                                   |                     | 
                                                   |                     | 
Return on ordinary activities after tax            |    132      70   202| 
                                                   |                     | 
Earnings per share - basic and diluted          8  |   1.5p    0.8p  2.3p| 
                                                   +---------------------+ 
 
 
 
  * The 'Total' column of this statement is the profit and loss account of the 
    Company; the supplementary revenue return and capital return columns have 
    been prepared under guidance published by the Association of Investment 
    Companies. 
  * All revenue and capital items in the above statement derive from continuing 
    operations. 
  * The Company has only one class of business and derives its income from 

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