ALLTRUE INVESTMENTS PLC ("Alltrue" or "the Company")

REPORT AND ACCOUNTS 

CHAIRMAN'S STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2007

In the year to 31 December 2007 Group revenue rose to £1,812,000 up from £1,029,000 in 2006. Excluding the contribution from Information Exchange Limited ('IXL') which was sold in October 2007 the comparable figures are £1,416,000 and £407,000 respectively. The current operating subsidiaries, Falcon Securities (UK) Ltd ('Falcon') and Montague Pitman Stockbrokers Ltd ('MPS'), both traded profitably. Overall Group operating profits (excluding exceptional items) was £64,000 (including a contribution of £85,000 from IXL to date of disposal) which compares to an operating loss of £136,000 in 2006. On a Group basis the disposal of IXL realised a loss of £390,000 which has been shown in the Accounts as an exceptional item and is reflected in the Loss before Tax for the Group of £326,000.

As reported Alltrue sold its wholly owned subsidiary IXL back to the original vendors in exchange for their interest in Rubi Ltd, a special purpose vehicle that holds 50m Alltrue ordinary shares, being the original consideration paid by Alltrue for the acquisition of IXL, together with arrangements for the repayment by IXL of inter-company debt due to Alltrue amounting to £240,000. The commercial and business development performance of IXL did not ultimately meet the Board's initial expectations and it was felt that the IXL brand would be better able to develop outside the Alltrue Group. Nevertheless both companies have agreed to continue to work together to exploit the synergies already identified including participation by MPS at future IXL investor events. As a result of this transaction Simon Campbell and Alpesh Patel ceased to have any interest in Alltrue's ordinary shares and resigned as directors of Alltrue. More recently Mr Patel has been appointed a director of MPS.

With regard to the continuing operations, turnover within Falcon increased significantly largely as a reflection of activity through MPS under the Appointed Representative arrangements. Falcon recorded an operating profit of £85,970 (2006 £83,428). Activity in stockbroking services within both the cash market and through the third party spread betting services to Falcon's underlying high net worth and professional clients picked up in the early part of the second half of the year but again tailed off towards the close reflecting much more difficult general market conditions. Corporate broking fees were lower reflecting the downturn in corporate transactions. Retainer fees were also lower as a number of clients are investment vehicles whose shares were either suspended from trading or had their listing cancelled on AIM following changes to LSE rules in 2006.

The Board considers the performance of MPS was very creditable in what was a 'start up' year. The Appointed Representative arrangements came into force in March 2007 and despite significant expenditure to help establish its brand in the retail client sector MPS recorded an operating profit before tax of £38,708. MPS now has an established customer base to which it offers a range of advisory services both in small capitalisation and main market listed securities. The company also provides CFD trading services to more sophisticated retail clients and is now in a position to incorporate advice and dealing in ISA held securities and more recently has introduced an 'on line' white labelled spread betting capability through a recognised third party supplier.  

ALLTRUE INVESTMENTS PLC 

CHAIRMAN'S STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2007

This has been a year of establishing two complementary stockbroking businesses and given the economic climate the Board is very satisfied to be reporting a profit, on the operating level at least, and believes that given the momentum of each business the Group will be well placed to take advantage when market volumes and activity return to normal levels. I look forward to reporting further progress to you in the future.

For further information contact:

Leo Knifton - Chairman, Alltrue Investments Plc

Tel: 020 7251 3762

Roland Cornish - Beaumont Cornish Limited, Nominated Adviser

Tel: 020 7628 3396

The Report and Accounts have been posted to shareholders and are available on the website: www.alltrueinvestments.co.uk

ALLTRUE INVESTMENTS PLC 

CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2007

2007

2006

Notes

£'000

£'000

(As restated)

Revenue

1,812

1,029

Cost of sales

(476)

(339)

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Gross Profit 

1,336

690

Administrative expenses

(1,272)

(826)

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Operating profit

64

(136)

Finance costs

7

(20)

-

Finance income

7

20

19

Loss on disposal of subsidiary 

(390)

-

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─────────

Loss before tax

8

(326)

(117)

Tax

9

-

3

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─────────

Loss after tax

(326)

(114)

Minority interests

(4)

-

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─────────

Loss for the period

23

(330)

(114)

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Attributable to:

Equity holders of the parent company

(326)

(114)

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═══════

Earnings/(loss) per share before exceptional costs - basic and diluted

11

0.03p

(0.06p)

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═══════

Loss per share after exceptional costs - basic and diluted

11

(0.13p)

(0.05p)

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═══════

There is no difference between basic and diluted loss per share.

Discontinued activities - Profit after tax included above is £85,000.  

ALLTRUE INVESTMENTS PLC 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 

AS AT 31 DECEMBER 2007