6-K 1 svi200606016k.txt REDEMPTION NOTICE SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF SECURITIES EXCHANGE ACT OF 1934 For the month of June, 2006 Commission File Number 000-27336 SVG Capital PLC 31 Gresham Street, London, England, EC2V 7QA Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.: Form 20-F.....x.... Form 40-F......... Indicate by check mark whether the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____ Indicate by check mark whether the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____ Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.: Yes......... No.....x.... (If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-_____________) NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA _______________________________________________________________________________ SVG Capital plc (FORMERLY KNOWN AS SCHRODER VENTURES INTERNATIONAL INVESTMENT TRUST PLC) REDEMPTION NOTICE TO HOLDERS OF THE GBP49,000,000 4 1/2 PER CENT. SUBORDINATED CONVERTIBLE BONDS DUE 2013 _______________________________________________________________________________ 22 May 2006 SVG Capital plc (formerly known as Schroder Ventures International Investment Trust plc) (the "Company") announces that, under the terms and conditions of its GBP49,000,000 4 1/2 per cent. Subordinated Convertible Bonds due 2013 (the "2013 Bonds"), it is now exercising its right to call for redemption of all the 2013 Bonds in issue. JPM Chase Bank (the "Conversion Agent") has despatched to the holders of the 2013 Bonds a notice redeeming the 2013 Bonds in issue (the "Notice"). Under the terms and conditions of the 2013 Bonds, the Company may, at any time on giving not less than 21 days' notice to the holders of the 2013 Bonds, redeem some or all of the 2013 Bonds at their principal amount plus accrued and unpaid interest thereon to, but excluding, the date fixed for redemption, if at any time on or after 21 May 2006 the average closing price of the Company's Ordinary Shares for 20 consecutive dealing days immediately prior to the issue of the Notice is equal to or greater than 130 per cent. of the conversion price of 480p, being 624p. The average closing price of the Company's Ordinary Shares over the 20 consecutive dealing days prior to the publication of the Notice was 787.23p. The closing price on Friday 19 May 2006, being the latest practicable date prior to the publication of the Notice, was 771p. The date fixed for redemption by the Company in the Notice is 13 June 2006 (the "Exercise Date"). Holders of 2013 Bonds may, prior to 3pm on Tuesday 6 June 2006, elect, in writing to the Conversion Agent to convert their 2013 Bonds into the Company's Ordinary Shares at the conversion price of 480p. The Company calculates the net asset value of its Ordinary Shares on a fully diluted basis, hence the conversion of the 2013 Bonds will have no impact on its diluted net asset value per Ordinary Share. For further information, please contact: SVG Capital plc Alice Todhunter 020 7010 8925 This announcement has been issued by the Company and is the sole responsibility of the Company. This announcement is for information purposes only and does not constitute an offer or an invitation to acquire or dispose of any securities or investment advice. This announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire Ordinary Shares in any jurisdiction in which such offer or solicitation is unlawful. This announcement may not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or not authorised. This announcement does not constitute an offer of securities for sale in the United States. The securities being sold have not been and will not be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration. There will be no public offer of securities in the United States. The Company will not be registered under the United States Investment Company Act of 1940. The distribution of this announcement and/or issue of Ordinary Shares in certain jurisdictions may be restricted by law. No action has been taken by the Company that would permit an offer of Ordinary Shares or possession or distribution of this announcement or any other offering or publicity material relating to Ordinary Shares in any jurisdiction where action for that purpose is required, other than in the United Kingdom. Persons into whose possession this announcement comes are required to inform themselves about and to observe any such restrictions. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised. SVG Capital PLC Date: 1 June, 2006 By:/s/John Spedding John Spedding Company Secretary For and on behalf of Schroder Investment Management Limited, Secretaries

SVG Capital's Value of SVG SVG Year Original holding Capital's Capital's Formed life (years) in the fund % holding (Pounds)'000 net assets % ------ ------------ ------------- -------------------- ------------ Europe Permira Europe I The first US$1 billion fund raised for private equity investment in Europe focusing on large and medium-sized leveraged buy-out opportunities. 1997 10 13.5 13,034 1.4 Permira Europe II Formed as the successor to Permira Europe I, the fund focuses on European buy-outs and buy-ins, in addition to growth capital investments. 2000 10 19.7 253,687 28.1 Permira Europe III Formed as the successor to Permira Europe II, the fund focuses on buy-outs/ins and growth capital investments in European businesses or of global businesses with a strong European presence. 2003 10 10.3 159,564 17.7 P123 A fund of Permira pan-European buy-out funds, with interests in Permira Europe I, II and III. 2003 15 38.6 80,762 8.9 Permira German Buy-Outs Established to invest in buy-outs of companies in Germany and some of its neighbouring countries. 1986 10* 29.7 10,171 1.1 Permira Italy II Established to make equity and near-equity investments in buy-outs and buy-ins, including development capital businesses, principally in Italy. 1993 10* 21.0 1,562 0.2 Permira UK III Established as Permira's third buy-out fund in the United Kingdom to invest in equity and near-equity investments in buy-outs, buy-ins, development capital businesses and turnarounds. 1993 10* 0.3 55 0.0 Permira UK Venture III Established to invest in a diversified portfolio of venture or development capital businesses and buy-outs principally in the United Kingdom 1990 10* 8.7 120 0.0 Permira UK Venture IV Established to follow the policies of the fully invested Permira UK Venture III. 1995 10* 4.2 962 0.1 SVG Diamond Holdings** A 3400 million Collateralised Fund Obligation of private equity funds. SVG Diamond comprised 3260 million investment grade bonds and preferred equity shares representing commitments of 3140 million at closing. 2004 22 35.7 1,031 0.1 ------- ---- Total Europe 520,948 57.6* ------- ----

Original SVG Capital's Value of SVG Year life holding in the Capital's Formed (years) fund % holding (Pounds)'000 ------ -------- -------------- -------------------- Asia Asia Pacific Trust Formed to invest in equity and near-equity investments in the high growth economies of the Asia Pacific region. This trust has been in liquidation since 1998. 1990 8* 6.4 825 Asia Pacific Fund II Established to make equity or near-equity investments in buy-outs, buy-ins, development capital businesses and turnarounds, principally in the Asia Pacific region with an emphasis on Australia, China, Hong Kong, India, Indonesia, Malaysia, Singapore and Thailand. 1994 10* 14.0 6,408 Schroder Ventures Asia Pacific Fund Established to make equity or near-equity investments in companies that have significant exposure to the Asia Pacific region. The fund focuses principally on management buy-outs and buy-ins, financial acquisitions and larger development capital opportunities. 1999 10 29.9 45,343 Co-investments with Asia Pacific Fund II and Schroder Ventures Asia Pacific Fund ------ 3,237 ------ The Japan Venture Fund III Established to invest directly or indirectly in equity and near- equity investments in a diversified portfolio of early-stage or development capital investments and leveraged and management buy-outs and buy-ins principally in Japan. 1997 10 20.3 641 The Japan Fund IV Established to invest in buy-out transactions in Japan across a range of industries and sectors. 2004 10 27.2 29,519 ------ Total Asia 85,973 ------

SVG Capital's net assets % ------------- Asia Asia Pacific Trust Formed to invest in equity and near-equity investments in the high growth economies of the Asia Pacific region. This trust has been in liquidation since 1998. 0.1 Asia Pacific Fund II Established to make equity or near-equity investments in buy-outs, buy-ins, development capital businesses and turnarounds, principally in the Asia Pacific region with an emphasis on Australia, China, Hong Kong, India, Indonesia, Malaysia, Singapore and Thailand. 0.7 Schroder Ventures Asia Pacific Fund Established to make equity or near-equity investments in companies that have significant exposure to the Asia Pacific region. The fund focuses principally on management buy-outs and buy-ins, financial acquisitions and larger development capital opportunities. 5.0 Co-investments with Asia Pacific Fund II and Schroder Ventures Asia Pacific Fund --- 0.4 --- The Japan Venture Fund III Established to invest directly or indirectly in equity and near- equity investments in a diversified portfolio of early-stage or development capital investments and leveraged and management buy-outs and buy-ins principally in Japan. 0.1 The Japan Fund IV Established to invest in buy-out transactions in Japan across a range of industries and sectors. 3.3 --- Total Asia 9.6 ---

Value of SVG SVG SVG Capital's Capital's Capital's Year Original holding Holding net formed life (years) in the fund % (Pounds)'000 assets % ------ ------------ ------------- ------------ --------- North America Schroder Canadian Buy-Out Fund III Established to invest principally in buy-outs, buy-ins, leveraged build-ups and development capital opportunities in Canada. 2000 10 26.6 1,177 0.1 Co-investments with Schroder Canadian Buy-Out Fund III and SV Investments Fund I 5,177 0.6 SV Life Sciences Fund II Formerly known as Schroder Ventures International Life Sciences Fund II. SV Life Sciences Fund II invests in a diversified portfolio of life sciences companies principally in the United States and Europe. The majority of these investments will be in early-stage opportunities. 1999 10 16.7 20,344 2.2 SV Life Sciences Fund III Formerly known as International Life Sciences Fund III. The successor to SV Life Sciences Fund II, established to invest in a diversified portfolio of life sciences companies principally in the United States and Europe. The majority of these investments will be in early-stage opportunities. 2002 10 19.1 19,787 2.2 SV Investments Fund I Established to invest in larger development capital and mid-size buy-outs in the United States, with a particular focus on media, telecommunications and technology sectors. 1999 10 25.9 21,676 2.4 ------- ----- Total North America 68,161 7.5 ------- ----- Total private equity funds and co-investments 675,082 74.7 ------- ----- Public equity funds and other investments 28,643 3.2 ------- ----- Total investment portfolio 703,725 77.9 ------- ----- Other assets less total liabilities 199,274 22.1 ------- ----- Total Net Assets 902,999 100.0 ------- -----

Increase Transfer value Increase in at 31 December in accrued Increase in 2005 in respect Accrued accrued benefit Accrued Transfer transfer Transfer of increase benefit at benefit due to benefit at value at value net of value at benefit 31 December due to other 31 December 31 December director's 31 December (excluding 2004 inflation factors 2005++ 2004 contributions 2005++ inflation) (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ ------------ ------------- ------------ --------------- N E H Ferguson + 115 1 1 117 1,737 629 2,366 9 A C Williams 93 3 6 102 1,197 350 1,547 97

Total Total emoluments emoluments Annual Year to Annual Year to Salary & Benefits bonus 31 December Salary & Benefits bonus 31 December fees in kind Section 2005 fees in kind Section 2004 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ N E H Ferguson + 224 1 167 392 313 1 500 814 A C Williams 297 1 550 848 288 1 500 789 D Buffini 16 - - 16 - - - - F Finlay 32 - - 32 9 - - 9 C J Govett - - - - 21 - - 21 A J Habgood 36 - - 36 30 - - 30 E W Koning 24 - - 24 26 - - 26 J J McLachlan 46 - - 46 75 - - 75 D Raeburn 36 - - 36 30 - - 30 C Sinclair 35 - - 35 - - - - A F Sykes - - - - 6 - - 6 Aggregate emoluments 746 2 717 1,465 798 2 1,000 1,800

During the year Exercise dates+ --------- ------------------------- --------- ------------------------------------ At 31 At 31 December Options Options Options December Exercise 2004 granted exercised lapsed 2005 price Earliest Latest --------- ------- --------- ------- --------- -------- ------------- ------------- N E H Ferguson 715,446 - - - 715,446 410.00p 21 June 2004 20 June 2011 Section 357,724 - - - 357,724 410.00p 21 June 2005 20 June 2011 Section 404,484 - - - 404,484 334.50p 5 April 2005 4 April 2012 Section 349,840 - - - 349,840 392.75p 13 March 2006 12 March 2013 Section 363,256 - - - 363,256 479.00p 12 March 2007 11 March 2014 - 250,704 - - 250,704 564.00p 23 March 2008 22 March 2015 A C Williams 373,983 - - - 373,983 410.00p 21 June 2004 20 June 2011 Section 186,992 - - - 186,992 410.00p 21 June 2005 20 June 2011 Section 272,645 - - - 272,645 334.50p 5 April 2005 4 April 2012 Section 239,847 - - - 239,847 392.75p 13 March 2006 12 March 2013 Section 248,851 - - - 248,851 479.00p 12 March 2007 11 March 2014 - 242,957 - - 242,957 564.00p 23 March 2008 22 March 2015 Total 3,513,068 493,661 - - 4,006,729

For the year ended 31 December 2005 ------------------------------------- Revenue Capital return return Total ------------ ------------ ------------ Notes (Pounds)'000 (Pounds)'000 (Pounds)'000 ----- ------------ ------------ ------------ Gains on investments - gains on fair value through profit and loss - 142,451 142,451 Exchange (losses)/gains on other items (63) 994 931 (63) 143,445 143,382 Operating income Investment income 4 21,314 - 21,314 Other operating income 4 12,054 - 12,054 Total operating income 33,368 - 33,368 Operating expenses Administrative expenses 5 (14,079) - (14,079) Other operating expenses - (517) (517) Total expenses (14,079) (517) (14,596) Operating profit/(loss) 19,289 (517) 18,772 Finance costs 8 (4,588) - (4,588) Profit/(loss) before tax 14,638 142,928 157,566 Tax 10 (328) (527) (855) Profit/(loss) for the year 14,310 142,401 156,711 Attributable to: Equity holders of the parent 14,300 142,274 156,574 Minority interest 10 127 137 Earnings per share From continuing activities Basic 12 123.7p Diluted 12 113.7p

For the year ended 31 December 2004 (restated) ------------------------------------- Revenue Capital return return Total ------------ ------------ ------------ (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ Gains on investments - gains on fair value through profit and loss - 134,799 134,799 Exchange (losses)/gains on other items (75) 112 37 (75) 134,911 134,836 Operating income Investment income 2,212 - 2,212 Other operating income 8,959 - 8,959 Total operating income 11,171 - 11,171 Operating expenses Administrative expenses (10,839) - (10,839) Other operating expenses - (928) (928) Total expenses (10,839) (928) (11,767) Operating profit/(loss) 332 (928) (596) Finance costs (5,402) - (5,402) Profit/(loss) before tax (5,145) 133,983 128,838 Tax 72 - 72 Profit/(loss) for the year (5,073) 133,983 128,910 Attributable to: Equity holders of the parent (5,075) 133,899 128,824 Minority interest 2 84 86 Earnings per share From continuing activities Basic 113.7p Diluted 97.8p

For the year ended For the year ended 31 December 2005 31 December 2004 ------------------------------------- ------------------------------------- Revenue Capital Revenue Capital return return Total return return Total ------------ ------------ ------------ ------------ ------------ ------------ Notes (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 Gains on investments - gains on fair value through profit and loss - 143,203 143,203 - 134,903 134,903 Exchange gains on other items - 997 997 - 187 187 - 144,200 144,200 - 135,090 135,090 Operating income Investment income 4 21,081 - 21,081 2,212 - 2,212 Other operating income 4 392 - 392 92 - 92 Total operating income 21,473 - 21,473 2,304 - 2,304 Operating expenses Administrative expenses 5 (1,868) - (1,868) (1,477) - (1,477) Other operating expenses - (517) (517) - (928) (928) Total expenses (1,868) (517) (2,385) (1,477) (928) (2,405) Operating profit/(loss) 19,605 (517) 19,088 827 (928) (101) Finance costs 8 (4,588) - (4,588) (5,402) - (5,402) Profit/(loss) before tax 15,017 143,683 158,700 (4,575) 134,162 129,587 Tax 10 (276) (379) (655) 85 - 85 Profit/(loss) for the year 14,741 143,304 158,045 (4,490) 134,162 129,672 Earnings per share From continuing activities Basic 12 124.8p 114.4p Diluted 12 114.8p 98.4p

Revenue Capital Share Other Total Share Share reserve reserve option reserves equity capital premium (restated) (restated) reserve (restated) holders (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ ------------ ------------ ------------ For the year ended 31 December 2005 Profit for the year - - 14,300 142,274 - - 156,574 Issue of share options - - - - 1,425 - 1,425 Issue of shares via placing 6,000 30,000 - - - - 36,000 Issue costs - (492) - - - - (492) Changes in equity for the year ended 31 December 2005 6,000 29,508 14,300 142,274 1,425 - 193,507 Balance at 31 December 2004 122,530 72,622 (13,201) 422,945 1,250 102,704 708,850 Balance at 31 December 2005 128,530 102,130 1,099 565,219 2,675 102,704 902,357 For the year ended 31 December 2004 Profit for the period - - (5,075) 133,899 - - 128,824 Issue of share options - - - - 907 - 907 Issue of shares on conversion of bonds 9,875 29,508 - - - (7,333) 32,050 Changes in equity for the year ended 31 December 2004 9,875 29,508 (5,075) 133,899 907 (7,333) 161,781 Balance at 31 December 2003 112,655 43,114 (8,126) 289,046 343 110,037 547,069 Balance at 31 December 2004 122,530 72,622 (13,201) 422,945 1,250 102,704 708,850

Minority Total interest (restated) (Pounds)'000 (Pounds)'000 ------------ ------------ For the year ended 31 December 2005 Profit for the year 137 156,711 Issue of share options - 1,425 Issue of shares via placing - 36,000 Issue costs - (492) Changes in equity for the year ended 31 December 2005 137 193,644 Balance at 31 December 2004 505 709,355 Balance at 31 December 2005 642 902,999 For the year ended 31 December 2004 Profit for the period 86 128,910 Issue of share options - 907 Issue of shares on conversion of bonds - 32,050 Changes in equity for the year ended 31 December 2004 86 161,867 Balance at 31 December 2003 419 547,488 Balance at 31 December 2004 505 709,355

Revenue Capital Share Other Share Share reserve reserve option reserves Total capital premium (restated) (restated) reserve (restated) (restated) (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ ------------ ------------ ------------ For the year ended 31 December 2005 Profit for the year - - 14,741 143,304 - - 158,045 Issue of share options - - - - 1,425 - 1,425 Issue of shares via placing 6,000 30,000 - - - - 36,000 Issue costs - (492) - - - - (492) Changes in equity for the year ended 31 December 2005 6,000 29,508 14,741 143,304 1,425 - 194,978 Balance at 31 December 2004 122,530 72,622 (10,746) 423,340 1,250 102,704 711,700 Balance at 31 December 2005 128,530 102,130 3,995 566,644 2,675 102,704 906,678 For the year ended 31 December 2004 Profit for the period - - (4,490) 134,162 - - 129,672 Issue of share options - - - - 907 - 907 Issue of shares on conversion of convertible bonds 9,875 29,508 - - - (7,333) 32,050 Changes in equity for the year ended 31 December 2004 9,875 29,508 (4,490) 134,162 907 (7,333) 162,629 Balance at 31 December 2003 112,655 43,114 (6,256) 289,178 343 110,037 549,071 Balance at 31 December 2004 122,530 72,622 (10,746) 423,340 1,250 102,704 711,700

As at As at 31 December 2005 31 December 2004 Notes (Pounds)'000 (Pounds)'000 (restated) ----- ---------------- ----------------------- Non-current assets Property, plant and equipment 13 1,099 1,161 Investments designated as fair value through profit and loss 14 703,725 729,272 Deferred tax asset 38 74 ------- ------- 704,862 730,507 ------- ------- Current assets Financial assets 17 40,565 - Other receivables 17 4,965 4,390 Cash and cash equivalents 17 205,006 25,148 250,536 29,538 ------- ------- Total assets 955,398 760,045 ------- ------- Current liabilities Other payables 18 (8,152) (7,763) Tax payable 18 (42) - (8,194) (7,763) ------- ------- Total assets less current liabilities 947,204 752,282 ------- ------- Non-current liabilities Convertible loan notes 19 (42,989) (42,374) Deferred staff compensation 19 (689) (553) Deferred tax liability 19 (527) - (44,205) (42,927) ------- ------- Net assets 902,999 709,355 ------- ------- Equity Called up share capital 21 128,530 122,530 Share premium account 22 102,130 72,622 Capital redemption reserve 23 3,204 3,204 Share purchase reserve 24 92,054 92,054 Share option reserve 25 2,675 1,250 Convertible loan notes - equity 26 7,446 7,446 Capital reserve 27 565,219 422,945 Revenue reserve 28 1,099 (13,201) Capital and reserves attributable to equity holders of the parent 902,357 708,850 Minority interest 642 505 ------- ------- Total equity 902,999 709,355 ------- ------- Net asset value per ordinary share - undiluted 29 702.1p 578.5p - diluted 29 667.8p 558.2p

As at As at 31 December 31 December 2004 Notes 2005 (restated) ----- ------------ ------------ (Pounds)'000 (Pounds)'000 Non-current assets Investments designated as fair value through profit and loss 14 677,281 697,827 Investment in subsidiaries 16 61,775 46,536 ------- ------- 739,056 744,363 ------- ------- Current assets Financial assets 17 40,565 - Other receivables 17 2,506 1,835 Cash and cash equivalents 17 170,102 11,445 213,173 13,280 ------- ------- Total assets 952,229 757,643 ------- ------- Current liabilities Other payables 18 (2,183) (3,569) (2,183) (3,569) ------- ------- Total assets less current liabilities 950,046 754,074 ------- ------- Non-current liabilities Convertible loan notes 19 (42,989) (42,374) Deferred tax liability 19 (379) - (43,368) (42,374) ------- ------- Net assets 906,678 711,700 ------- ------- Equity Called up share capital 21 128,530 122,530 Share premium account 22 102,130 72,622 Capital redemption reserve 23 3,204 3,204 Share purchase reserve 24 92,054 92,054 Share option reserve 25 2,675 1,250 Convertible loan notes - equity 26 7,446 7,446 Capital reserve 27 566,644 423,340 Revenue reserve 28 3,995 (10,746) ------- ------- Total equity 906,678 711,700 ------- ------- Net asset value per ordinary share - undiluted 29 705.4p 580.8p - diluted 29 670.7p 560.2p

As at As at 31 December 31 December 2004 2005 (restated) ------------ ------------ Notes (Pounds)'000 (Pounds)'000 Interest income 3,583 1,293 Other income 29,659 11,537 Expenses (13,507) (10,262) Interest paid (3,357) (5,223) Tax paid (244) (31) Net cash from/(used in) operating activities 30 16,134 (2,686) Investing activities Capital distributions from public equity funds 6,674 1,394 Capital distributions from private equity funds 268,113 143,924 Purchases of public equity funds/other investments (17,672) (4,699) Calls paid to private equity funds (89,117) (159,477) Purchase of warehoused funds (39,016) - Purchases of property, plant and equipment (131) (1,004) Net cash from/(used) in investing activities 128,851 (19,862) Financing Share placing 36,000 - Issue and listing costs of ordinary shares (510) (9) Net cash from/(used in) financing activities 35,490 (9) Net increase/(decrease) in cash and cash equivalents 180,475 (22,557) Cash and cash equivalents at beginning of year 25,148 47,668 Effect of foreign exchange rates on cash and cash equivalents (617) 37 Cash and cash equivalents at end of year 205,006 25,148

As at As at 31 December 31 December 2004 2005 (restated) Notes (Pounds)'000 (Pounds)'000 ----- ------------ ------------ Interest income 2,372 973 Other income 18,335 1,869 Expenses (4,284) (2,373) Interest paid (3,357) (5,223) Tax (paid)/recovered (267) 84 Net cash from/(used in) operating activities 30 12,799 (4,670) Investing activities Capital distributions from public equity funds 6,674 1,394 Capital distributions from private equity funds 247,314 134,075 Purchases of public equity funds/other investments (17,672) (4,699) Calls paid to private equity funds (86,231) (156,070) Purchase of warehoused funds (39,016) - Investment in subsidiary (150) (1,250) Net cash from/(used) in investing activities 110,919 (26,550) Financing Share placing 36,000 - Issue and listing costs of ordinary shares (510) (9) Net cash from/(used in) financing activities 35,490 (9) Net increase/(decrease) in cash and cash equivalents 159,208 (31,229) Cash and cash equivalents at beginning of year 11,445 42,487 Effect of foreign exchange rates on cash and cash equivalents (551) 187 Cash and cash equivalents at end of year 170,102 11,445

Effective date, periods commencing ----------------------- International Financial Reporting Standards (IFRS) IFRS 1 Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards and IFRS 6 Exploration for and Evaluation of Mineral Resources 1 January 2006 IFRS 4 Amendments to International Financial Reporting Standards IAS 39 Financial Instruments: Recognition and Measurement IFRS 4 Insurance Contracts Financial Guarantee 1 January 2006 Contracts IFRS 6 IFRS 6 Exploration for and Evaluation of Mineral Resources 1 January 2006 IFRS 6 Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards and IFRS 6 Exploration for and Evaluation of Mineral Resources 1 January 2006 IFRS 7 IFRS 7 Financial Instruments: Disclosures 1 January 2007 International Accounting Standards (IAS) IAS 1 Amendments to IAS 1 Presentation of Financial Statements Capital Disclosures 1 January 2007 IAS 19 Amendment to IAS 19 Employee Benefits Actuarial Gains and Losses, Group Plans and Disclosures 1 January 2006 IAS 21 Amendment to IAS 21 The Effects of Changes in Foreign Exchange Rates Net Investment in a Foreign Operation 1 January 2006 IAS 39 Amendment to IAS 39 Financial Instruments: Recognition and Measurement Cash Flow Hedge Accounting of Forecast Intragroup Transactions 1 January 2006 IAS 39 Amendments to International Financial Reporting Standards IAS 39 Financial Instruments: Recognition and Measurement IFRS 4 Insurance Contracts Financial Guarantee Contracts 1 January 2006 International Financial Reporting Interpretations Committee (IFRIC) IFRIC 4 Determining whether an Arrangement contains a Lease 1 January 2006 IFRIC 5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds Incorporating an Amendment to IAS 39 Financial Instruments: Recognition and Measurement 1 January 2006 IFRIC 6 Liabilities arising from Participating in a Specific Market - Waste Electrical and Electronic Equipment 1 December 2005 IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies 1 March 2006 IFRIC 8 Scope of IFRS 2 1 May 2006 IFRIC 9 Reassessment of Embedded Derivatives 1 June 2006

For the year ended 31 December 2005 For the year ended 31 December 2004 ------------------------------------- ------------------------------------- Investment Investment management management and and Investing advisory Investing advisory activities services Total activities services Total Group (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ----- ------------ ------------ ------------ ------------ ------------ ------------ Total operating income 22,574 10,794 33,368 2,545 8,626 11,171 Share option costs - (1,425) (1,425) - (907) (907) Other administrative expenses (1,919) (10,735) (12,654) (1,530) (8,402) (9,932) Other operating expenses (517) - (517) (928) - (928) Operating profit/(loss) 20,138 (1,366) 18,772 87 (683) (596) Finance costs (4,588) - (4,588) (5,402) - (5,402) Gains on fair value through profit and loss 142,439 12 142,451 134,798 1 134,799 Exchange gains/(losses) 997 (66) 931 188 (151) 37 Profit before tax 158,986 (1,420) 157,566 129,671 (833) 128,838 Total assets 945,672 9,726 955,398 752,558 7,487 760,045 Total liabilities (45,620) (6,779) (52,399) (45,644) (5,046) (50,690) Net assets 900,052 2,947 902,999 706,914 2,441 709,355

For the year ended 31 December 2005 For the year ended 31 December 2004 ------------------------------------- ------------------------------------- Investment management Investment and management Investing advisory Investing and advisory activities services Total activities services Total Company (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------- ------------ ------------ ------------ ------------ ------------ ------------ Total operating income 21,473 - 21,473 2,304 - 2,304 Share option costs - - - - - - Other administrative expenses (1,868) - (1,868) (1,477) - (1,477) Other operating expenses (517) - (517) (928) - (928) Operating profit/(loss) 19,088 - 19,088 (101) - (101) Finance costs (4,588) - (4,588) (5,402) - (5,402) Gains on fair value through profit and loss 143,203 - 143,203 134,903 - 134,903 Exchange gains 997 - 997 187 - 187 Profit before tax 158,700 - 158,700 129,587 - 129,587 Total assets 952,229 - 952,229 757,643 - 757,643 Total liabilities (45,551) - (45,551) (45,943) - (45,943) Net assets 906,678 - 906,678 711,700 - 711,700

For the year For the year For the year ended For the year ended ended 31 December ended 31 December 31 December 2005 31 December 2004 2005 Group Company 2004 Group Company (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ Income from investments: Income from money market instruments 2,999 2,999 1,092 1,092 Income from Funds and co-investments 17,724 17,491 1,120 1,120 Interest on warehoused funds 591 591 - - Other operating income: Income from investment advisory services 10,603 - 8,550 - Other interest receivable and other income 1,451 392 409 92 33,368 21,473 11,171 2,304 Represented by: Interest 4,842 3,783 1,501 1,184 Income from investment advisory services 10,603 - 8,550 - Income from funds and co-investments 17,724 17,491 1,120 1,120 Other income 199 199 - - 33,368 21,473 11,171 2,304

For the year For the year For the year For the year ended ended ended ended 31 December 31 December 31 December 31 December 2005 2004 Group 2004 2005 Group Company (restated) Company (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ Fees payable to Schroder Investment Management Limited 388 345 451 407 Directors' remuneration 1,465 345 1,800 197 Share option costs (note 21) 1,425 - 907 - Staff costs (note 6) 7,561 - 5,201 - Depreciation (note 13) 193 - 161 - General expenses 2,851 1,036 2,212 817 Auditors' remuneration - Statutory audit fees 183 142 91 56 - Regulatory reporting 5 - 4 - - Other assurance services - - - - - Other services 8 - 12 - 14,079 1,868 10,839 1,477

For the year For the year ended ended 31 December 31 December 2005 2004 Number Number ------------ ------------ Full-time employees 32 24 Seconded staff 3 4 35 28

For the year ended For the year ended For the year ended For the year ended 31 December 2005 31 December 2005 31 December 2004 31 December 2004 Group Company Group Company (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------------ ------------------ ------------------ ------------------ Defined benefit schemes 1,118 - 172 - Money purchase schemes 264 - 248 - 1,382 - 420 -

For the year ended For the year ended For the year ended 31 December 31 December 31 December 2004 Group 2005 Group 2005 Company (restated) (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------------ ------------------ ------------------ Convertible loan note interest 2,199 2,199 3,787 Amortisation of issue and listing costs plus premium to redemption reconvertibles 615 615 129 Loan facility finance costs 1,541 1,541 1,202 Amortisation of loan facility issue costs 233 233 237 Other interest - - 47 4,588 4,588 5,402

For the year ended 31 December 2004 Company (restated) (Pounds)'000 ------------------ Convertible loan note interest 3,787 Amortisation of issue and listing costs plus premium to redemption reconvertibles 129 Loan facility finance costs 1,202 Amortisation of loan facility issue costs 237 Other interest 47 5,402

For the year ended 31 December 2005 For the year ended 31 December 2004 ------------------------------------- ------------------------------------- Revenue Capital Total Revenue Capital Total Group (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ----- ------------ ------------ ------------ ------------ ------------ ------------ Current tax Corporation tax 42 - 42 - - - Double taxation relief - - - - - - 42 - 42 - - - Income tax suffered by the venture funds 9 - 9 - - - Overseas tax (3) - (3) 2 - 2 Prior year adjustment 318 - 318 (74) - (74) Total current tax (note 10(b)) 366 - 366 (72) - (72) Deferred tax Deferred tax 36 527 563 - - - Prior year adjustment (74) - (74) - - - Total deferred tax (note 19) (38) 527 489 - - - Total tax (credit)/charge 328 527 855 (72) - (72)

For the year ended 31 December 2005 For the year ended 31 December 2004 -------------------------------------- ------------------------------------- Revenue Capital Total Revenue Capital Total Company (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------- ------------ ------------ ------------ ------------ ------------ ------------ Current tax Corporation tax - - - - - - Double taxation relief - - - - - - - - - - - - Income tax suffered by the venture funds 9 - 9 - - - Overseas tax - - - - - - Prior year adjustment 267 - 267 (85) - (85) Total current tax (note 10(b)) 276 - 276 (85) - (85) Deferred tax Deferred tax - 379 379 - - - Total deferred tax (note 19) - 379 379 - - - Total tax (credit)/charge 276 379 655 (85) - (85)

For the For the For the year ended year ended year ended 31 December 31 December 31 December 2005 2005 2004 Group Company Group (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ Profit before tax 157,566 158,700 128,838 Corporation tax at 30% 47,270 47,610 38,651 Effects of: Non-taxable capital gains (43,034) (43,260) (40,474) Non deductible expenses 191 170 286 Difference between accounting and taxable income from funds (2,354) (2,354) 786 Losses brought forward utilised in the year (2,443) (2,166) (5) Depreciation of items not eligible for capital allowances - - - Restriction to current tax re prior year adjustments - - 25 Income of subsidiary not taxable (315) - (57) Income taxable at higher rates 3 - - UK income tax 9 9 - Prior year adjustments re overseas tax 11 - (74) Prior year adjustments re UK corporation tax 244 267 - Marginal relief - UK smaller companies rate of tax (9) - - Temporary differences arising in the period on which deferred tax is not recognised 315 - 518 Options costs temporarily disallowed in the period on which deferred tax is not recognised 427 - 272 Overseas deferred tax 527 379 - Foreign exchange on consolidation 5 - - Total tax (credit)/charge for the year (Note 10(a)) 855 655 (72)

For the year ended 31 December 2004 Company (Pounds)'000 ------------ Profit before tax 129,587 Corporation tax at 30% 38,876 Effects of: Non-taxable capital gains (40,527) Non deductible expenses 278 Difference between accounting and taxable income from funds 786 Losses brought forward utilised in the year - Depreciation of items not eligible for capital allowances 8 Restriction to current tax re prior year adjustments 25 Income of subsidiary not taxable - Income taxable at higher rates - UK income tax - Prior year adjustments re overseas tax (85) Prior year adjustments re UK corporation tax - Marginal relief - UK smaller companies rate of tax - Temporary differences arising in the period on which deferred tax is not recognised 562 Options costs temporarily disallowed in the period on which deferred tax is not recognised - Overseas deferred tax - Foreign exchange on consolidation - Total tax (credit)/charge for the year (Note 10(a)) (85)

For the For the For the For the year ended year ended year ended year ended 31 December 31 December 31 December 31 December 2004 2004 2005 2005 Group Company Group Company (restated) (restated) (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ Earnings for the purposes of basic earnings per share being netprofit attributable to equity holders of the parent 156,574 158,045 128,824 129,672 Effect of dilutive potential ordinary shares: Interest on convertible loan notes (net of tax) 1,970 1,970 2,072 2,072 Earnings for the purposes of diluted earnings per share 158,544 160,015 130,896 131,744 Number Number Number Number ------------ ------------ ------------ ------------ Number of shares Weighted average number of ordinary shares for the purposes ofbasic earnings per share 126,590,127 126,590,127 113,329,674 113,329,674 Effect of dilutive potential ordinary shares: Share options 2,599,452 2,599,452 1,151,085 1,151,085 Convertible loan notes 10,208,333 10,208,333 19,408,520 19,408,520 Weighted average number of ordinary shares for the purposes of diluted earnings per share 139,397,912 139,397,912 133,889,279 133,889,279 Earnings per share Basic 123.7p 124.8p 113.7p 114.4p Diluted 113.7p 114.8p 97.8p 98.4p

Telecom- munications Leasehold Computer and office improvements equipment equipment Art Total (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ ------------ Cost At 1 January 2005 586 507 308 37 1,438 Additions 11 105 10 - 126 Disposals - (44) - - (44) Exchange translation 1 7 3 - 11 At 31 December 2005 598 575 321 37 1,531 Depreciation At 1 January 2005 39 194 44 - 277 Charge for the year 60 94 39 - 193 Disposals - (44) - - (44) Exchange translation 1 4 1 - 6 At 31 December 2005 100 248 84 - 432 Net book value At 31 December 2005 498 327 237 37 1,099 At 1 January 2005 547 313 264 37 1,161

Telecom- munications Leasehold Computer and office improvements equipment equipment Art Total (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ ------------ Cost At 1 January 2004 150 353 100 - 603 Additions 577 159 231 37 1,004 Disposals (140) (2) (22) - (164) Exchange translation (1) (3) (1) - (5) At 31 December 2004 586 507 308 37 1,438 Depreciation At 1 January 2004 65 99 40 - 204 Charge for the year 47 99 15 - 161 Disposals (73) (2) (11) - (86) Exchange translation - (2) - - (2) At 31 December 2004 39 194 44 - 277 Net book value At 31 December 2004 547 313 264 37 1,161 At 1 January 2004 85 254 60 - 399

Public Public Private equity Private equity equity funds and equity funds and funds and other Total funds and other Total co-investments investments portfolio co-investments investments portfolio Fair value through 2005 2005 2005 2004 2004 2004 profit or loss assets (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ---------------------------------- -------------- ------------ ------------ -------------- ------------ ------------ Valuation brought forward 714,093 15,179 729,272 567,431 8,184 575,615 Calls and purchases payable 89,117 17,672 106,789 159,477 4,699 164,176 Distributions and sales receivable (268,113) (6,674) (274,787) (143,924) (1,394) (145,318) Gains on investments 139,985 2,466 142,451 131,109 3,690 134,799 Valuation carried forward 675,082 28,643 703,725 714,093 15,179 729,272

Public Public Private equity Private equity equity funds and equity funds and funds and other Total funds and other Total co-investments investments portfolio co-investments investments portfolio 2005 2005 2005 2004 2004 2004 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 -------------- ------------ ------------ -------------- ------------ ------------ Valuation brought forward 682,648 15,179 697,827 537,938 8,184 546,122 Calls and purchases payable 86,231 17,672 103,903 156,070 4,699 160,769 Distributions and sales receivable (247,314) (6,674) (253,988) (134,075) (1,394) (135,469) Gains on investments 127,073 2,466 129,539 122,715 3,690 126,405 Valuation carried forward 648,638 28,643 677,281 682,648 15,179 697,827

31 December 2005 31 December 2004 ------------------------- ------------------------- Group Company Group Company (restated) (restated) (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ Private equity funds and co-investments Europe 520,433 513,083 556,576 549,644 Total Europe 520,433 513,083 556,576 549,644 Asia Asia Pacific 55,813 45,310 50,898 34,262 Japan 30,160 21,613 23,752 15,911 Total Asia 85,973 66,923 74,650 50,173 North America Canada 4,196 4,196 11,537 11,537 United States* 64,480 64,436 71,330 71,294 Total Americas 68,676 68,632 82,867 82,831 Total private equity funds and co-investments 675,082 648,638 714,093 682,648 Public equity funds (UK investment focus): Strategic Equity Capital plc 14,775 14,775 - - SVG UK Focus Fund 11,041 11,041 9,724 9,724 Strategic Recovery Fund 1,968 1,968 5,455 5,455 Total UK listed equity funds 27,784 27,784 15,179 15,179 Other investments 859 859 - - Total investment portfolio 703,725 677,281 729,272 697,827

Year ended Year ended 31 December 31 December 2004 2005 Company Company (restated) (Pounds)'000 (Pounds)'000 ------------ ------------ Cost at the beginning of the year 29,612 27,455 Cash contribution 150 1,250 Capital contribution in respect of options granted over SVG Capital shares 1,425 907 Cost at the end of the year 31,187 29,612 Net unrealised gain on investment 30,588 16,924 Carrying value at the end of the year 61,775 46,536

Profit after tax Country of Number and Capital and for registration, class of reserves at the year ended incorporation shares/units 31 December 31 December and held by the Group 2005 2005 Company and business operation Group holding (Pounds)'000 (Pounds)'000 -------------------------------------- ------------- ------------- ------- ------------ ---------------- The Platinum Trust (unit trust) - investment Guernsey 23,112 'A' units(1) 99% 55,243 13,803 900 'B' units(1) 90% SVG Advisers Limited - advisory and administration services UK 4,250,000 Ordinary Shares(2) 100% 2,454 (1,509) SVG North America, Inc. - broker/dealer US 3,000 Common Shares(3) 100% 112 12 SVG Advisers, Inc. - investment adviser US 100 Common Shares(4) 100% 200 (40) SVG Investment Managers Limited - investment manager UK 250,000 Ordinary Shares(5) 100% 375 30

31 December 2005 31 December 2004 ------------------------- ------------------------- Group Company Group Company Financial assets (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ---------------------------- ------------ ------------ ------------ ------------ Warehoused fund investments* 40,565 40,565 - - ------ ------ ----- ----- 40,565 40,565 - -

31 December 2005 31 December 2004 ------------------------- ------------------------- Group Company Group Company Other receivables (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 -------------------------------------- ------------ ------------ ------------ ------------ Amounts falling due within one year: Amounts owed by group undertakings - 187 - - Interest receivable 1,803 1,722 461 461 Prepayments and other debtors 1,524 597 1,570 1,374 Accrued investment advisory fee income 1,638 - 2,359 - ----- ----- ----- ----- 4,965 2,506 4,390 1,835

31 December 2005 31 December 2004 ------------------------- ------------------------- Group Company Group Company Cash and cash equivalents (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------------------------------- ------------ ------------ ------------ ------------ Bank balances and short-term deposits 36,978 2,074 14,161 458 Money market funds 40,713 40,713 10,987 10,987 Treasury bills 127,315 127,315 - - ------- ------- ------ ------ 205,006 170,102 25,148 11,445

31 December 2005 31 December 2004 ------------------------- ------------------------- Group Company Group Company Other payables (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------------------------------ ------------ ------------ ------------ ------------ Amounts owed to group undertakings - 93 - 309 Interest payable and similar charges 684 684 301 301 Other creditors and accruals 7,468 1,406 7,462 2,959 8,152 2,183 7,763 3,569

For the For the For the For the year ended year ended year ended year ended 31 December 31 December 31 December 31 December 2005 2005 2004 2004 Group Company Group Company (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ Current tax liability - corporation tax Balance brought forward - - - - Corporation tax charged to income statement (note 10(a)) 42 - - - Balance carried forward 42 - - -

31 December 31 December 2005 2004 ------------ ------------ Group Company Group Company (restated) (restated) (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ 4.5% Subordinated Convertible Bonds 2013 - Nominal 49,000 49,000 49,000 49,000 Unamortised premium, issue and listing costs (6,011) (6,011) (6,626) (6,626) Convertible loan notes 42,989 42,989 42,374 42,374 Deferred staff compensation 689 - 553 - Deferred tax liability 527 379 - - 44,205 43,368 42,927 42,374

(less than) 1 year 1 - 5 years (greater than) 5 years Total (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------------ ------------ ---------------------- ------------ As at 31 December 2005 Operating lease obligation 400 900 - 1,300 As at 31 December 2004 Operating lease obligation 100 1,200 100 1,400

31 December 2005 31 December 2004 ------------------------- ------------------------- Group Company Group Company (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ Authorised: 200,000,000 shares of (Pounds)1.00 each 200,000 200,000 200,000 200,000 Allotted, called up and fully paid: Opening balance of 122,529,853 shares of (Pounds)1.00 each 122,530 122,530 112,655 112,655 Issue of ordinary shares on conversion of bonds - - 9,875 9,875 Placing of new ordinary shares 6,000 6,000 - - Closing balance of 128,529,853 shares of (Pounds)1.00 each 128,530 128,530 122,530 122,530

Options Options Options 31 December 31 December granted exercised lapsed Exercise 2005 2004 Latest in the in the in the price number number Issue date exercise date year year year per share in issue in issue ---------- ------------- --------- --------- ------- --------- ----------- ----------- June 2001 June 2011 - - - 410.0p 2,798,773 2,798,773 June 2001 June 2011 - - - 405.5p 28,359 28,359 April 2002 April 2012 - - - 335.0p 14,476 14,476 April 2002 April 2012 - - - 334.5p 1,333,476 1,333,476 March 2003 March 2013 - - - 397.50 18,616 18,616 March 2003 March 2013 - - - 392.75 1,183,570 1,183,570 October 2003 October 2013 - - 4,969 493.0p 51,723 56,692 March 2004 March 2014 - - 861 479.0p 1,292,882 1,293,743 March 2004 March 2014 - - - 492.0p 33,351 33,351 March 2005 March 2015 1,117,696 - 5,836 564.0p 1,111,860 - March 2005 March 2015 29,412 - - 569.5p 29,412 - 1,147,108 - 11,666 7,896,498 6,761,056

2005 2004 ---- ---- Dividend yield (%) 0 0 Expected share price volatility (%) 19 21 Historical volatility (%) 19 21 Risk-free interest rate (%) 4.8 4.5 Expected life of options (years) 5.7 5.7 Weighted average share price (pence) 570 492

31 December 2005 31 December 2004 ------------------------- ------------------------- Group Company Group Company (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ Balance brought forward 72,622 72,622 43,114 43,114 Premium on shares issued on conversion of bonds - - 29,508 29,508 Premium on issue of shares via placing 29,508 29,508 - - Balance carried forward 102,130 102,130 72,622 72,622

31 December 31 December 2005 2004 ------------ ------------ Group Company Group Company (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ Balance brought forward 1,250 1,250 343 343 Fair value charge re options issued 1,425 1,425 907 907 Balance carried forward 2,675 2,675 1,250 1,250

31 December 2005 31 December 2004 ------------------------- ------------------------ Group Company Group Company (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ Balance brought forward 7,446 7,446 14,779 14,779 Released on conversion of bonds - - (7,333) (7,333) Balance carried forward 7,446 7,446 7,446 7,446

31 December 2005 31 December 2004 ------------------------- ------------------------- Group Company Group Company (restated) (restated) (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ Balance brought forward 422,945 423,340 289,046 289,178 Profit for the year 142,274 143,304 133,899 134,162 Balance carried forward 565,219 566,644 422,945 423,340

31 December 2005 31 December 2004 ------------------------ ------------------------ Group Company Group Company (restated) (restated) (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ Balance brought forward (13,201) (10,746) (8,126) (6,256) Profit/(loss) for the year 14,300 14,741 (5,075) (4,490) Balance carried forward 1,099 3,995 (13,201) (10,746)

2005 2004 ------------------------- ------------------------- Group Company Group Company (restated) (restated) (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ Basic 702.1p 705.4p 578.5p 580.8p Diluted 667.8p 670.7p 558.2p 560.2p

Year Year Year Year ended ended ended ended 31 December 31 December 31 December 31 December 2005 2005 2004 2004 Group Company Group Company (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ Profit/(loss) from operations 18,772 19,088 (596) (101) Adjustments for: Depreciation of property, plant and equipment 193 - 78 - Share option expense 1,425 - 907 - Operating cash flows before movements in working capital 20,390 19,088 389 (101) (Increase)/decrease in receivables (813) (726) 1,448 517 Increase/(decrease) in payables 158 (1,939) 731 53 Cash generated by operations 19,735 16.423 2,568 469 Taxes (paid)/recovered (244) (267) (31) 84 Interest paid (3,357) (3,357) (5,223) (5,223) Net cash from/(used) in operating activities 16,134 12,799 (2,686) (4,670)

Net cash/ Cash and Short-term Long-term For the year ended 31 December 2005 cash equivalents debt debt (debt) Group (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ----------------------------------- ---------------- ------------ ------------ ------------ Balance brought forward 25,148 - (42,374) (17,226) Foreign exchange movements (617) - - (617) Debt conversion - - - - Amortisation of issue and listing costs and convertible premium to redemption - - (615) (615) Cash flow 180,475 - - 180,475 Balance carried forward 205,006 - (42,989) 162,017 Cash and Short-term Long-term Net cash/ For the year ended 31 December 2004 cash equivalents debt debt (debt) Group (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ----------------------------------- ---------------- ------------ ------------ ------------ Balance brought forward 47,668 - (74,312) (26,644) Foreign exchange movements 37 - - 37 Debt conversion - - 32,067 32,067 Amortisation of issue and listing costs and convertible premium to redemption - - (129) (129) Cash flow (22,557) - - (22,557) Balance carried forward 25,148 - (42,374) (17,226) Cash and Short-term Long-term Net cash/ For the year ended 31 December 2005 cash equivalents debt debt (debt) Company (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ----------------------------------- ---------------- ------------ ------------ ------------ Balance brought forward 11,445 - (42,374) (30,929) Foreign exchange movements (551) - - (551) Debt conversion - - - - Amortisation of issue and listing costs and convertible premium to redemption - - (615) (615) Cash flow 159,208 - - 159,208 Balance carried forward 170,102 - (42,989) 127,113 Cash and Short-term Long-term Net cash/ For the year ended 31 December 2004 cash equivalents debt debt (debt) Company (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ----------------------------------- ---------------- ------------ ------------ ------------ Balance brought forward 42,487 - (74,312) (31,825) Foreign exchange movements 187 - - 187 Debt conversion - - 32,067 32,067 Amortisation of issue and listing costs and convertible premium to redemption - - (129) (129) Cash flow (31,229) - - (31,229) Balance carried forward 11,445 - (42,374) (30,929)

Floating Fixed Non-interest rate rate bearing Total (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ Currency denomination of assets at 31 December 2005: Sterling 45,191 - 41,456 86,647 Euro 31,553 127,315 520,164 679,032 US dollar 922 - 153,279 154,201 Japanese yen - - 30,160 30,160 Canadian dollar 25 - 4,196 4,221 ------ ------- ------- ------- 77,691 127,315 749,255 954,261 ------ ------- ------- ------- Floating Fixed Non-interest rate rate bearing Total (Pounds)'000 (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ ------------ Currency denomination of assets at 31 December 2004: Sterling 23,814 - 24,899 48,713 Euro 1,306 - 551,096 552,402 US dollar 12 - 122,228 122,240 Japanese yen - - 23,752 23,752 Canadian dollar 16 - 11,687 11,703 ------ ------- ------- ------- 25,148 - 733,662 758,810 ------ ------- ------- -------

IFRS format UK GAAP adjustments in IFRS UK GAAP only format (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ Fixed assets Non-current assets Tangible fixed assets 399 - 399 Property, plant and equipment Fixed asset investments Funds and co-investments 560,287 (560,287) Listed UK equities 8,184 (8,184) Money market instruments 41,877 (41,877) 568,471 568,471 Investments designated as fair value through profit and loss 610,348 (41,877) 568,870 Current assets Current assets Debtors 6,718 - 6,718 Other receivables Cash at bank 5,791 41,877 47,668 Cash and cash equivalents 12,509 41,877 54,386 - 623,256 Total assets Current liabilities Current liabilities Creditors: amounts falling due within one year (8,111) - (8,111) Other payables Net current assets 4,398 Total assets less current liabilities 615,145 - 615,145 Total assets less current liabilities Non-current liabilities Creditors: due after more than one year (88,108) 88,108 (87,619) (87,619) Convertible loan notes (489) (489) Deferred staff compensation Minority interest - non-equity (100) 100 Minority interest - equity (319) 319 Net assets 526,618 419 527,037 Net assets Capital and reserves Equity Called up share capital 112,655 - 112,655 Called up share capital Share premium account 43,114 - 43,114 Share premium account Capital redemption reserve 3,204 - 3,204 Capital redemption reserve Share purchase reserve 92,054 - 92,054 Share purchase reserve Capital reserve 281,902 - 281,902 Capital reserve Revenue reserve (6,311) - (6,311) Revenue reserve 526,618 Equity attributable to equity holders of the parent 419 419 Minority interest Equity shareholders' funds 526,618 419 527,037 Total equity Net asset value per ordinary share - undiluted 467.5p - 467.5p - diluted 458.7p - 458.7p

UK GAAP UK GAAP in IFRS format Adjustments IFRS (Pounds)'000 (Pounds)'000 (Pounds)'000 -------------- ------------ ------------ Non-current assets Property, plant and equipment 399 - 399 Investments designated as fair value through profit and loss 568,471 7,144 575,615 ------- ------ ------- 568,870 576,014 ------- ------ ------- Current assets Other receivables 6,718 - 6,718 Cash and cash equivalents 47,668 - 47,668 54,386 54,386 ------- ------ ------- Total assets 623,256 630,400 ------- ------ ------- Current liabilities Other payables (8,111) - (8,111) ------- ------ ------- Total assets less current liabilities 615,145 622,289 ------- ------ ------- Non-current liabilities Convertible loan notes (87,619) 13,307 (74,312) Deferred staff compensation (489) - (489) ------- ------ ------- Net assets 527,037 20,451 547,488 ------- ------ ------- Equity Called up share capital 112,655 - 112,655 Share premium account 43,114 - 43,114 Capital redemption reserve 3,204 - 3,204 Share purchase reserve 92,054 - 92,054 Share option reserve - 343 343 Convertible loan notes - equity - 14,779 14,779 Capital reserve 281,902 7,144 289,046 Revenue reserve (6,311) (1,815) (8,126) Equity attributable to equity holders of the parent 526,618 547,069 Minority interest 419 - 419 ------- ------ ------- Total equity 527,037 20,451 547,488 ------- ------ ------- Net asset value per ordinary share - undiluted 467.5p 18.1p 485.6p - diluted 458.7p 6.3p 465.0p

IFRS format UK GAAP adjustments in IFRS UK GAAP only format (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ Fixed assets Non-current assets Tangible fixed assets Property, plant and 1,161 - 1,161 equipment Fixed asset investments Funds and co-investments 688,198 (688,198) Listed UK equities 15,179 (15,179) Money market instruments 10,987 (10,987) Investments designated as fair value through profit and 703,377 703,377 loss 74 74 Deferred tax asset 714,364 (10,913) 704,612 Current assets Current assets Debtors 4,390 - 4,390 Other receivables Cash at bank 14,161 10,987 25,148 Cash and cash equivalents 18,551 10,987 29,538 74 734,150 Total assets Current liabilities Current liabilities Creditors: amounts falling due within one year (7,763) - (7,763) Other payables Net current assets 10,788 Debtors: amounts falling due after more than one year 74 (74) Total assets less current liabilities Total assets less current 726,387 - 726,387 liabilities Non-current liabilities Creditors: due after more than one year (49,479) 49,479 (48,926) (48,926) Convertible loan notes (553) (553) Deferred staff compensation Minority interest - non-equity (100) 100 Minority interest - equity (405) 405 Net assets 676,403 505 676,908 Net assets Capital and reserves Equity Called up share capital 122,530 - 122,530 Called up share capital Share premium account 72,622 - 72,622 Share premium account Capital redemption reserve 3,204 - 3,204 Capital redemption reserve Share purchase reserve 92,054 - 92,054 Share purchase reserve Capital reserve 397,050 - 397,050 Capital reserve Revenue reserve (11,057) - (11,057) Revenue reserve Equity attributable to equity 676,403 holders of the parent 505 505 Minority interest Equity shareholders' funds 676,403 505 676,908 Total equity Net asset value per ordinary share - undiluted 552.0p - 552.0p - diluted 539.7p - 539.7p

UK GAAP IFRS in IFRS format Adjustments IFRS (Pounds)'000 (Pounds)'000 (Pounds)'000 -------------- ------------ ------------ Non-current assets Property, plant and equipment 1,161 - 1,161 Investments designated as fair value through profit and loss 703,377 25,895 729,272 Deferred tax asset 74 - 74 ------- ------- 704,612 730,507 ------- ------- Current assets Other receivables 4,390 - 4,390 Cash and cash equivalents 25,148 - 25,148 29,538 - 29,538 ------- ------- Total assets 734,150 760,045 ------- ------- Current liabilities Other payables (7,763) - (7,763) ------- ------- Total assets less current liabilities 726,387 752,282 ------- ------- Non-current liabilities Convertible loan notes (48,926) 6,552 (42,374) Deferred staff compensation (553) - (553) Net assets 676,908 32,447 709,355 Equity Called up share capital 122,530 - 122,530 Share premium account 72,622 - 72,622 Capital redemption reserve 3,204 - 3,204 Share purchase reserve 92,054 - 92,054 Share option reserve - 1,250 1,250 Convertible loan notes - equity reserve - 7,446 7,446 Capital reserve 397,050 25,895 422,945 Revenue reserve (11,057) (2,144) (13,201) Equity attributable to equity holders of the parent 676,403 708,850 Minority interest 505 - 505 ------- ------ ------- Total equity 676,908 32,447 709,355 ------- ------ ------- Net asset value per ordinary share - undiluted 552.0p 26.5p 578.5p - diluted 539.7p 18.5p 558.2p

IFRS UK GAAP Adjustments IFRS (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ Gains on investments - gains on fair value through profit and loss 116,130 18,669 134,799 Exchange (losses)/gains on liquid assets (45) 82 37 ------- ------ ------- 116,085 18,751 134,836 ------- ------ ------- Operating income Investment income 2,212 - 2,212 Other operating income 8,959 - 8,959 ------- ------ ------- 11,171 - 11,171 ------- ------ ------- Operating expenses Administrative expenses (9,932) (907) (10,839) Other operating expenses (928) - (928) ------- ------ ------- (10,860) (907) (11,767) ------- ------ ------- Operating profit/(loss) 311 (907) (596) Finance costs (5,980) 578 (5,402) Profit before tax 110,416 18,422 128,838 Tax 72 - 72 ------- ------ ------- Profit for the year 110,488 18,422 128,910 ------- ------ -------

IFRS format UK GAAP adjustments in IFRS UK GAAP only format (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ Fixed asset investments Non-current assets Funds and co-investments 530,794 (530,794) Listed UK equities 8,184 (8,184) Money market instruments 41,877 (41,877) 538,978 538,978 Investments designated as fair value through profit and loss Investment in subsidiaries 35,538 - 35,538 Investment in subsidiaries 616,393 (41,877) 574,516 Current assets Current assets Debtors 3,190 - 3,190 Other receivables Cash at bank 610 41,877 42,487 Cash and cash equivalents 3,800 41,877 45,677 - 620,193 Total assets Current liabilities Current liabilities Creditors: amounts falling due within one (4,297) - (4,297) Other payables year Net current assets (497) Total assets less current liabilities 615,896 - 615,896 Total assets less current liabilities Non-current liabilities Creditors: due after more than one year (87,619) 87,619 (87,619) (87,619) Convertible loan notes Net assets 528,277 - 528,277 Net assets Capital and reserves Equity Called up share capital 112,655 - 112,655 Called up share capital Share premium account 43,114 - 43,114 Share premium account Capital redemption reserve 3,204 - 3,204 Capital redemption reserve Share purchase reserve 92,054 - 92,054 Share purchase reserve Capital reserve 282,034 - 282,034 Capital reserve Revenue reserve (4,784) - (4,784) Revenue reserve Equity shareholders' funds 528,277 - 528,277 Total equity Net asset value per ordinary share - undiluted 468.9p - 468.9p - diluted 460.0p - 460.0p

UK GAAP in IFRS IFRS format Adjustments IFRS (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ Non-current assets Investments designated as fair value through profit and loss 538,978 7,144 546,122 Investment in subsidiaries 35,538 343 35,881 ------- ------ ------- 574,516 582,003 ------- ------ ------- Current assets Other receivables 3,190 - 3,190 Cash and cash equivalents 42,487 - 42,487 45,677 45,677 ------- ------ ------- Total assets 620,193 627,680 ------- ------ ------- Current liabilities Other payables (4,297) - (4,297) Total assets less current liabilities 615,896 623,383 Non-current liabilities Convertible loan notes (87,619) 13,307 (74,312) ------- ------ ------- Net assets 528,277 20,794 549,071 ------- ------ ------- Equity Called up share capital 112,655 - 112,655 Share premium account 43,114 - 43,114 Capital redemption reserve 3,204 - 3,204 Share purchase reserve 92,054 - 92,054 Share option reserve - 343 343 Convertible loan notes - equity - 14,779 14,779 Capital reserve 282,034 7,144 289,178 Revenue reserve (4,784) (1,472) (6,256) ------- ------ ------- Total equity 528,277 20,794 549,071 ------- ------ ------- Net asset value per ordinary share - undiluted 468.9p 18.5p 487.4p - diluted 460.0p 6.4p 466.4p

IFRS format UK GAAP adjustments in IFRS UK GAAP only format (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ Fixed asset investments Non-current assets Funds and co-investments 656,753 (656,753) Listed UK equities 15,179 (15,179) Money market instruments 10,987 (10,987) 671,932 671,932 Investments designated as fair value through profit and loss Investment in subsidiaries 45,286 - 45,286 728,205 (10,987) 717,218 Current assets Current assets Debtors 1,835 - 1,835 Other receivables Cash at bank 458 10,987 11,445 Cash and cash equivalents 2,293 10,987 13,280 730,498 Total assets Current liabilities Current liabilities Creditors: amounts falling due within one year (3,569) - (3,569) Other payables Net current assets (1,276) Total assets less current liabilities Total assets less current 726,929 - 726,929 liabilities Non-current liabilities Creditors: due after more than one year (48,926) 48,926 (48,926) (48,926) Convertible loan notes Net assets 678,003 - 678,003 Net assets Capital and reserves Equity Called up share capital 122,530 - 122,530 Called up share capital Share premium account 72,622 - 72,622 Share premium account Capital redemption reserve 3,204 - 3,204 Capital redemption reserve Share purchase reserve 92,054 - 92,054 Share purchase reserve Capital reserve 397,445 - 397,445 Capital reserve Revenue reserve (9,852) - (9,852) Revenue reserve Equity shareholders' funds 678,003 - 678,003 Total equity Net asset value per ordinary share - undiluted 553.3p - 553.3p - diluted 540.8p - 540.8p

UK GAAP in IFRS IFRS format Adjustments IFRS (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ Non-current assets Investments designated as fair value through profit and loss 671,932 25,895 697,827 Investment in subsidiaries 45,286 1,250 46,536 ------- ------ ------- 717,218 744,363 ------- ------ ------- Current assets Other receivables 1,835 - 1,835 Cash and cash equivalents 11,445 - 11,445 13,280 13,280 ------- ------ ------- Total assets 730,498 757,643 ------- ------ ------- Current liabilities Other payables (3,569) - (3,569) ------- ------ ------- Total assets less current liabilities 726,929 754,074 ------- ------ ------- Non-current liabilities Convertible loan notes (48,926) 6,552 (42,374) ------- ------ ------- Net assets 678,003 33,697 711,700 ------- ------ ------- Equity Called up share capital 122,530 - 122,530 Share premium account 72,622 - 72,622 Capital redemption reserve 3,204 - 3,204 Share purchase reserve 92,054 - 92,054 Share option reserve - 1,250 1,250 Convertible loan notes - equity reserve - 7,446 7,446 Capital reserve 397,445 25,895 423,340 Revenue reserve (9,852) (894) (10,746) ------- ------ ------- Total equity 678,003 33,697 711,700 ------- ------ ------- Net asset value per ordinary share - undiluted 553.3p 27.5p 580.8p - diluted 540.8p 19.4p 560.2p

IFRS UK GAAP Adjustments IFRS (Pounds)'000 (Pounds)'000 (Pounds)'000 ------------ ------------ ------------ Gains on investments - gains on fair value through profit and loss 116,234 18,669 134,903 Exchange gains on liquid assets 105 82 187 ------- ------ ------- 116,339 18,751 135,090 ------- ------ ------- Operating income Investment income 2,212 - 2,212 Other operating income 92 - 92 ------- ------ ------- 2,304 - 2,304 ------- ------ ------- Operating expenses Administrative expenses (1,477) - (1,477) Other operating expenses (928) - (928) ------- ------ ------- (2,405) - (2,405) ------- ------ ------- Operating loss (101) - (101) Finance costs (5,980) 578 (5,402) Profit before tax 110,258 19,329 129,587 Tax 85 - 85 ------- ------ ------- Profit for the year 110,343 19,329 129,672 ------- ------ -------

2004 Manager/ 2005 (restated) Adviser (Pounds)'000 (Pounds)'000 ------------------------- ------------ ------------ Permira Europe II Permira 253,687 371,992 Permira Europe III Permira 159,564 80,893 P123 SVGA 80,762 63,888 Schroder Ventures Asia Pacific Fund Symphony Capital Partners 45,343 32,322 The Japan Fund IV MKS Consulting 29,519 13,996 SV Investments Fund I SV Investment Partners 21,676 27,370 SV Life Sciences Fund II SV Life Sciences Advisers 20,344 30,135 SV Life Sciences Fund III SV Life Sciences Advisers 19,787 11,136 Strategic Equity Capital plc SVG IM 14,775 - Permira Europe I Permira 13,034 22,207 ------- ------- 658,491 653,939 ------- -------

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