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UK Select Trust Limited

Half-Yearly Report and Condensed Unaudited Financial Statements for the six months ended 30 June 2009

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UK Select Trust Limited Contents Trust Information 2 Objectives 2 Financial Highlights 3 Cautionary Note 3 Directors and Advisors 4 Chairman’s Statement 5 Interim Management Report 6 Responsibility Statement 9 The Portfolio and Sector Distribution 10 Condensed Income Statement 14 Condensed Balance Sheet 16 Condensed Reconciliation of Movements in Equity Shareholders’ Funds 17 Condensed Cash Flow Statement 18 Notes to the Unaudited Financial Statements 19 Trust information UK Select Trust Limited's shares are listed on the London Stock Exchange. They can be bought or sold by investors through a stockbroker or by asking a professional adviser e.g. lawyer, accountant or bank manager to do so on their behalf.

UK Select Trust Limited's share price is published daily under Investment Companies in the Share Information Service in the Financial Times. In addition it is published every Monday on the business pages of The Guernsey Press and Star and Jersey Evening Post. Objectives UK Select Trust Limited UK Select Trust Limited is registered in Guernsey and is qualified as a UK Investment Trust Company. The Company invests over 80% of its gross assets by value in the UK and the investment policy aims to provide a total return to shareholders in excess of the net total return on the FTSE All Share Index and a progressive dividend policy.

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Financial Highlights

Six months

ended Six months

ended Year ended

30 June 2009 30 June 2008 31 December

2008 Net asset value per share 120.35p 154.57p 106.97p

Equity shareholders' interest (1) £24.75m £31.94m £22.17m Revenue return on ordinary activities for the financial period/year after taxation £0.10m £0.68m £ 1.04m Capital return/(loss) on ordinary activities for the financial year after taxation £3.22m £(0.91)m (£11.22)m Revenue return per ordinary share 0.48p 3.30p 5.04p Capital return/(loss) per ordinary share 15.57p (4.40)p (54.25)p

Dividend per ordinary share (2) 0.90p 0.90p 3.63p Share Price 109.50p 132.50p 86.25p Net asset value total return 12.92% (1.03)% (30.70)% FTSE All-Share total return (3.37)% (11.16)% (29.93)%

(1) During the period the Company purchased 446,709 ordinary shares of 10p from the market to be held in Treasury. 281,018 ordinary shares of 10p each from the shares held in Treasury were reissued during the period. 270,433 shares remain in Treasury at 30 June 2009. These are held for reissue and the Company does not intend to cancel these. (2) The dividend figures include the proposed dividend for the relevant financial period. Dividends An interim dividend of 0.90p per share will be paid for 2009 (Six months ended 30 June 2008: 0.90p). The Company will normally pay the final dividend in May each year. Cautionary Note and Forward Looking Statements The Interim Management Report (IMR) has been prepared solely to provide additional information to shareholders to assess the UK Select Trust Limited’s strategies and the potential for those strategies to succeed. The IMR should not be relied on by any other party or for any other purpose. The IMR contains certain forward-looking statements. These statements are made by the Directors in good faith based on the information available to them up to the time of their approval of this report and such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward looking information.

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Directors and Advisors JM Le Pelley, Non-executive Chairman. He joined the board in 1983. Other Directorships include AcenciA Debt Strategies Limited. DR Maltwood, Non-executive Director. He joined the board in 1997 after a career in stockbrocking in Jersey. He has held a number of positions including the Chairman and Director of a number of quoted companies. G Ross Russell, Non-executive Director. He joined the board in 1995. He is a Director of Forsight 3 Venture Capital Trust Plc and former Chairman of the Securities & Investment Institute and Deputy Chairman of the London Stock Exchange. JG West FCA, Non-executive Director. He joined the board in 1997. He is the Chairman of Gartmore Fledgling Trust Plc, Jupiter Second Enhanced Trust Plc, New City High Yield Fund Limited, and a Director of a number of public and private companies including British Assets Trust Plc and JP Morgan Income and Capital Trust plc. He is a former chief executive of Lazard Asset Management Limited. D Warr , Non-executive Director. He joined the board in 2006.He is an Executive Director of Intertrust International Management Limited, a Guernsey based fiduciary services business. He is a fellow of the Institute of Chartered Accountants in England and Wales. He is also Non Executive Chairman of FRM Diversified Alpha Limited and a Non-executive Director of Marwyn Materials Limited, Invista Foundation Property Trust Limited, Hemisphere Defensive (USD) Limited and Unigestion (Guernsey) Limited. Advisors Secretary and Registered Office Registrars Corporate Services (Guernsey) Limited Capita Registrars (Guernsey) Limited (resigned 18 August 2009) Longue Hougue Road Dorey Court St Sampson Admiral Park Guernsey GY2 4JN St Peter Port 0870 162 3100 Guernsey GY1 3BG 01481 727111 Kleinwort Benson (Channel Islands) Stockbrokers Fund Services Limited (appointed 18 August 2009) Intelli Corporate Finance Limited Dorey Court 29 Rutland Square Admiral Park Edinburgh St Peter Port EH1 2BW Guernsey GY1 3BG 0131 222 9400 01481 727111 Investment Manager Bankers and Custodian Scottish Widows Investment Partnership Limited HSBC Bank plc Edinburgh One 8 Canada Square Morrison Street London E14 5HQ Edinburgh EH3 8BE 0131 655 8500 Auditors Deloitte LLP Regency Court Glatengy Esplanade St Peter Port Guernsey GY1 3HW 01481 724011

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Chairman’s Statement Review of Performance I am pleased to report that the Company produced an excellent result for the six months to 30 June 2009 with the net asset value rising by 12.92% on a total return basis. Strong stock selection was the driver of this performance and the key contributors are discussed in the Interim Management Report. This was in spite of the continuation of the volatile equity market environment which characterised much of 2008.

Share Price and discount The share price traded 26.6% higher over the six months under review while the discount at which your shares trade relative to their net asset value closed the period at 9.3%.

Gearing Although the Company has a borrowing facility of £2,000,000, it did not utilise any borrowings during the period under review.

Dividend The Board is pleased to announce an unchanged interim dividend of 0.90p per share. Prospects Following the sharp rally in equity markets investors now need evidence of recovering end demand in order to propel share prices higher. At present, the majority of companies exposed to the economic cycle are supporting their earnings through self help and cost cutting with very few management teams pointing to an improved outlook for their sales line. While the worst of the financial crisis may be behind us, it remains unclear as to how long it will take for the unprecedented monetary and fiscal easing to translate into economic recovery. The investment manager will continue actively to seek out opportunities for the Company to add value for all shareholders. J M Le Pelley Chairman 26 August 2009

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Interim Management Report

Introduction The FTSE All Share Index recorded a gain of 0.81% over the six months under review. This performance masked some extremely volatile equity market conditions in the period characterised by two very different quarters. The fall out from the financial crisis continued to weigh heavily on investor sentiment through the first quarter of the year sending share prices sharply lower. However, these losses were reversed through the second quarter as equity markets drew encouragement from several macro economic leading indicators showing signs of a stabilisation in activity levels. The start of the year saw renewed weakness in the financials sector as concerns mounted over the potential scale of bad debts facing the banking industry. However, the co-ordinated global monetary and fiscal response of pumping liquidity into the financial system continued in an attempt to revive debt markets which had effectively closed to the vast majority of the corporate sector. As a result, many companies were forced to turn to the equity market for funding and an unprecedented number of equity capital raisings were completed in the first half of the year. Tentative signs of economic stabilisation in the major Western economies combined with the relentless economic expansion in China provided a platform for equity markets to rally through the second quarter. The low yields available on sovereign debt and cash added weight to the relative attraction of equities as an asset class while the gradual thawing of debt markets lured investors further up the risk curve in search of returns. The growing belief that the worst of the financial crisis had passed heralded a change in sector leadership within the equity market. The banking sector was one of the best performers through the second quarter as investor focus shifted away from the carrying value of assets on the balance sheet to the strong underlying trading conditions being reported, particularly within investment banking. The resource based sectors were also strong performers during the period as commodity prices recovered sharply on the expectation that mounting inflationary pressures would be the likely outcome of the various monetary and fiscal stimulus packages implemented to stimulate demand. Mining stocks were among the largest gainers as the global growth theme returned and consolidation rumours swirled around the sector.

Performance The Company produced a very strong performance in the period with the net asset value posting an increase of 12.92% at the total return level. This was driven by strong stock selection and the active management of the portfolio to capture the trading opportunities presented by the volatility in equity markets. The Company has remained debt free through the first half of the year and this position is being closely monitored. The dislocation in debt markets provided the Company with the opportunity to acquire several investment grade corporate bonds offering a combined yield to maturity of over 8%. Marks and Spencer, British American Tobacco and WPP were among the blue chip bonds acquired and spreads have narrowed significantly since purchase providing an excellent return for the portfolio. The largest positive contributor to performance was the Company’s holding in KSK Power Ventur. KSK is a leading player in the delivery of captive and merchant power plants in India and was established in 2001 to take advantage of the rapid growth in power demand in the deregulating Indian power market. The group commands a fully integrated business model through its access to extensive local coal reserves providing the group with a significant competitive cost advantage over many of its rivals, forced to import coal from Indonesia.

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Interim Management Report (continued) Performance (continued) The structural growth story in energy demand within emerging markets such as India has been a key theme running through the Company’s portfolio for the last three years. Great Eastern Energy has been another successful holding and looks well placed to continue to benefit from the growing demand for energy in India. The company operates a portfolio of coal bed methane licences which will supply gas into the local market in West Bengal. Potential customers for Great Eastern’s gas are currently paying significantly higher prices for their fuel requirements, providing a clear arbitrage opportunity to switch to Great Eastern’s locally supplied, and hence cheaper, gas. The Company participated in a number of equity issues announced during the period which benefited performance. Several of these capital raisings were forced on companies due to the prevailing conditions in debt markets and as a result were priced at distressed valuations. Wolseley, Liberty International and Taylor Wimpey all fell into this category and the three holdings have subsequently been sold at profits ranging from 30% to 110%. The Company also supported equity issues from existing holdings, Berkeley Group and KSK Power, which both raised money to fund growth opportunities and these positions have been retained. Principal risks and uncertainties The major risks associated with the Company are credit, liquidity and market risk. The Company has established policies to manage these risks. Further information on the principal long term risks and uncertainties of the Company is included in our latest annual report in Note 17. The related party transactions entered into in the first six months of this financial year have not had a material effect on the performance of the Company. Details of the related party transactions are shown in Note 10 to the Half-yearly report. There are a number of potential risks and uncertainties which would have a material impact on the Company’s performance over the remaining six months of the financial year and could cause actual results to differ materially from expected and historic results, the key risks identified have been outlined as follows: Regulatory risk: The Company operates in a complicated regulatory environment and faces a number of regulatory risks. Breaches of regulations, such as the UK Listing Authority Listing Rules and the Companies (Guernsey) Law, 2008, could lead to a number of serious outcomes and reputational damage. The Board monitors compliance with regulations by reviewing internal control reports. Interest rate risk: The Company’s interest rate sensitive assets and liabilities mainly comprise of cash at bank. The cash at bank is subject to floating rates. No hedging is undertaken in respect of this interest rate risk. As such the Board does not believe the Company suffers any material interest rate risk. Gearing risk: The use of the long-term loan facility increases the Company’s potential exposure to gearing risk. During the period ended 30 June 2009 the Company did not use its loan facility and therefore had a nil balance outstanding at the period end. The Company is also required to ensure that the borrowing does not at any time exceed 45% of the Adjusted Gross Asset Value.

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Interim Management Report (continued) Outlook The unprecedented wave of monetary and fiscal stimulus initiatives announced around the world over the past eighteen months will inevitably precipitate inflationary pressures as demand starts to recover. On this basis we continue to favour companies with pricing power exposed to the global growth theme where rising commodity prices remains a central plank of our strategy. Industries including mining, oil and gas and emerging market power are very well paced to continue benefiting from the structural growth opportunity in developing economies such as China and India.

The portfolio also continues to favour companies in a strong financial position which are not being penalised by expensive debt and have the opportunity to acquire competitors, weakened by the financial crisis, at an interesting time in the economic cycle. The fund remains underweight domestic sales reflecting our view that the UK economy is in a relatively weak global position through its high borrowings and bleak employment outlook.

The key risk to equity markets remains a further deterioration in macro economic data as we move through the second half of the year. This would send a strong signal to investors that the corporate profits cycle has not yet troughed and would likely prompt a switch back out of risk assets including equities into cash and sovereign debt. The outlook statements from companies in the upcoming corporate earnings season will be pivotal in determining the direction of equity markets through the third and fourth quarters.

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Responsibility Statement We confirm that to the best of our knowledge:

• the half-yearly report has been prepared in accordance with IAS 34 'Interim Financial Reporting'; • the interim management report includes a fair review of the important events during the first six

months of 2009 and provides a fair review of the risks and uncertainties faced by the Company in the remaining six months of the year, as required by Disclosure and Transparency Rules ("DTR") 4.2.7R; and

• the interim management report includes a fair review of related party transactions and changes therein, as required by DTR 4.2.8R.

By order of the Board

JM Le Pelley D Warr Directors

26 August 2009

Scottish Widows Investment Partnership (“SWIP”) is one of the largest asset management companies in the UK. They actively manage funds across a broad range of asset types and are major investors in global and pan-European equity markets, as well as property, fixed interest and cash. SWIP manages money for a large number of investors with a wide variety of investment objectives. The investor’s needs can be met by investing in SWIP’s diverse fund range or through a bespoke portfolio. SWIP’s flexible investment style also enables them to meet their client objectives in all market conditions. They have a rigorous investment process, which emphasises their own independent fundamental research. This gives them a depth of information and insight that is not available to the market generally. With £82.7 billion* of funds as at 30 June 2009 under management and the backing of their parent company, Lloyds Banking Group plc, clients can have confidence in their stability and position of strength. Their size and market leadership have also allowed them to attract and retain one of the UK’s strongest and most experienced investment teams. SWIP believes that the expertise of their investment teams and the comprehensive research that they conduct is key to providing consistently superior returns for their clients. *Source: SWIP

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The Portfolio as at 30 June 2009

Company Market

Value Activity

£'000 1 BG Group Plc 1,761

Formerly British Gas. Involved in oil and gas transmission and distribution as well as power generation.

2 HSBC 1,687 Large UK – based financial services group.

3 Barclays Bank Plc 1,596 Large UK – based financial services group. 4 Xstrata 1,564 Coal, copper, zinc and alloys mining company.

5 KSK Power Ventur Plc 1,457 Engaged in emerging opportunities in the power development market.

6 AstraZeneca 1,310 One of the world’s largest pharmaceutical companies 7 BP 1,151 One of the world’s largest energy companies, providing fuel, energy

and pertrochemicals. 8 Vodafone 1,061 The largest mobile telecommunications network in the world. 9 Royal Dutch Shell 1,036 One of the world’s largest energy companies which explore, produce

and market oil, gas and chemicals. 10 Berkeley Group Holdings Plc 927 UK-based housebuilder and developer 11 WPP 911 Communications services company providing advertising, media and

consultancy services. 12 Hardy Oil and Gas Plc 889 AIM listed oil and gas exploration company. 13 Great Eastern Energy

Corporation 761 US-based energy provider.

14 BAE Systems 747 Global defence, security and aerospace company. 15 Unilever 733 Consumer nutrition, hygiene and personal care goods 16 British American Tobacco 710 The world’s most international tobacco group. 17 Venture Production 647 Petroleum and natural gas exploration company. 18 Indus Gas 609 Oil and gas exploration and development company based in India. 19 Friends Provident Plc 464 International financial services provider. 20 Kingfisher 416 Europe’s largest home improvement retailer. 21 Marks & Spencer 414 Retailer of clothing, food and home products 22 Dolphin Capital Investors 365 Real Estate Holding and Development. 23 Trading Emissions 360 UK Listed fund investing in a range of tradable environmental

permits. 24 Healthcare Locums 299 Specialist healthcare recruitment company. 25 Resolution Asset

Management 291 Offer a broad spectrum of funds to cater for the differing investment

needs.

26 Ingenious Media Plc 214 Advisory and investment firm is now Europe’s largest private investor in the media sector.

27 Bat International Finance 196 International tobacco company. 28 ZincOx Resources Plc 150 British based zinc mining company 29 Leed Petroleum 131 Oil and gas exploration and production company focussed on the

Gulf of Mexico. 30 Cadogan Petroleum 123 An independent oil and gas exploration, development and production

company. 31 Arden Partners 112 Institutional stockbroker specialising in small, midcap and AIM

companies. 32 British Sky Broadcasting 98 Operate a pay television broadcast service, broadband and telephony

services in the UK and Ireland.

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The Portfolio as at 30 June 2009 (continued) 33 Aurora Russia 73 Investment vehicle established to make investments in small and

mid-sized Russian companies. 34 Resaca Exploitation 60 US – based independent oil and gas exploitation company. 35 Legal and General 42 UK – based financial services company. 36 Eatonfield Group 33 Commercial and residential property developer with a focus on

Wales and the North of England. 37 Candover Investments 23 UK Based investment firm that specialises in corporate buyouts. 38 Bowleven 20 Exploration, developing and producing oil and gas. 39 Newfound NV 10 Developer and operator of up-market holiday resorts.

Total Valuation 23,451 These holdings represent 100% of the total valuation.

Sector Distribution as at 30 June 2009

1 Resources 33.9%

2 Basic industrials 14.9% 3 General industrials 0.0% 4 Non-cyclical consumer goods 0.0% 5 Cyclical services 17.9% 6 Non-cyclical services 0.0% 7 Utilities 3.5% 8 Information technology 5.0% 9 Financials 24.8%

1 Resources

2 Basic industrials

3 General industrials

4 Non-cyclical consumergoods

5 Cyclical services

6 Non-cyclical services

7 Utilities

8 Information andtechnology

9 Financials

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The Portfolio as at 30 June 2009 (continued)

Sector Distribution as at 30 June 2009 Total 30-Jun 2009 Sector Classification % Resources Oil and Gas 29.1 Oil Equipment and Services -

Metals -

29.1 Basic industrials Construction and building materials - Mining 6.9 Chemicals - Electronics and electrical equipment 5.9

12.8 General industrials Industrial transportation - Automobiles and parts -

- Non-cyclical consumer goods Tobacco 3.7 Pharmaceuticals and biotechnology 5.3

9.0 Cyclical services Support services 1.2 Leisure, entertainment and hotels 11.2 Food and Drug Retailers 3.0

15.4 Non-cyclical services Telecommunication services -

- Utilities Aerospace & defence 3.0 Utilitiles other -

3.0 Information and technology Software and computer services 4.3

4.3

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The Portfolio as at 30 June 2009 (continued)

Sector Distribution as at 30 June 2009 (continued)

Financials Banks 13.3 Specialty and other finance - Real Estate 1.6 Investment companies 4.3 Life assurance 2.0

21.3 Net current assets/(liabilities) 5.2 Total assets less current liabilities 100.0 Borrowings -

Net assets 100.0

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Condensed Income Statement for the six months ended 30 June 2009 (unaudited)

Six months ended 30 June 2009

Six months ended 30 June 2008 Notes Revenue Capital Total Revenue Capital Total

£’000 £’000 £’000 £’000 £’000 £’000Gains/(losses) on investments Net realised gains on financial assets and liabilities held at fair value through profit or loss 5 - 4,532 4,532 - 1,772 1,772Net changes in unrealised (depreciation)/appreciation on financial assets and liabilities held at fair value through profit or loss 5 - (1,242) (1,242) - (2,462) (2,462)Net foreign exchange gain - - - - - -

- 3,290 3,290 - (690) (690)

Income Other income 3 290 - 290 944 - 944

Expenses Investment management fees 14 43 57 21 62 83Performance fee 8 23 31 11 32 43Administration fees 72 - 72 58 - 58Registrars’ fees 7 - 7 7 - 7Auditors’ fees 5 - 5 8 - 8Directors’ fees 10 41 - 41 41 - 41Other expenses 44 - 44 72 - 72Total operating expenses before finance costs 191 66 257 218 94 312

Operating profit/(loss) before finance costs and tax 99 3,224 3,323 726 (784) (58)

Finance costs Interest payable - - - 42 127 169

Profit before tax 99 3,224 3,323 684 (911) (227)Taxation - - - - - -

Net Profit 99 3,224 3,323 684 (911) (227)

Basic and diluted return per Ordinary Share 4 0.48p 15.57p 16.05p 3.30p (4.40)p (1.10)p

The total column of this statement is the Income Statement of the Company, with the revenue and capital columns representing supplementary information. All revenue and capital items in the above statement derive from continuing operations. All income is attributable to the ordinary shareholders of the Company. The notes on pages 19 to 24 are an integral part of these financial statements.

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Condensed Income Statement (continued) for the six months ended 30 June 2009 (unaudited)

Year ended 31 December 2008

Notes Revenue Capital Total £’000 £’000 £’000

Gains/(losses) on investments Net realised gains on financial assets and liabilities held at fair value through profit or loss 5 - (5,526) (5,526) Net changes in unrealised (depreciation)/appreciation on financial assets and liabilities held at fair value through profit or loss 5 - (5,409) (5,409) Net foreign exchange gain - - -

- (10,935) (10,935)

Income Other income 3 1,449 - 1,449

Expenses Investment management fees 38 115 153 Performance fee - - - Administration fees 84 - 84 Registrars’ fees 19 - 19 Auditors’ fees 21 - 21 Directors’ fees 10 82 - 82 Other expenses 105 - 105 Total operating expenses before finance costs 349 115 464

Operating profit/(loss) before finance costs and tax 1,100 (11,050) (9,950)

Finance costs Interest payable 58 174 232

Profit before tax 1,042 (11,224) (10,182) Taxation - - -

Net Profit 1,042 (11,224) (10,182) Basic and diluted return per Ordinary Share 4 5.04p (54.25)p (49.21)p

The total column of this statement is the Income Statement of the Company, with the revenue and capital columns representing supplementary information. All revenue and capital items in the above statement derive from continuing operations. All income is attributable to the ordinary shareholders of the Company. The notes on pages 19 to 24 are an integral part of these financial statements.

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Condensed Balance Sheet As at 30 June 2009 (unaudited)

Notes

30 June 2009

30 June 2008 31 December 2008 £’000 £’000 £’000 Non-current assets Financial assets at fair value through profit or loss 5 23,451 33,744 19,989

Total non-current assets 23,451 33,744 19,989

Current assets Receivable from brokers 996 597 1,153 Other receivables 527 87 76 Cash at bank 203 23 1,298

Total current assets 1,726 707 2,527

Total assets 25,177 34,451 22,171

Liabilities

Current Liabilities Payable to brokers 4 - 224 Payables 428 514 121 Total current liabilities 432 514 345 Non-current liabilities Borrowings 6 - 2,000 - Total non-current liabilities - 2,000 - Total liabilities 432 2,514 345

Net assets attributable to holders of equity shares 24,745 31,937 22,171

Equity shareholders’ funds Share Capital 7 2,083 2,083 2,083 Own shares held in treasury 7 (397) (245) (168) Reserves 23,059 30,099 20,256 24,745 31,937 22,171

Number of ordinary shares in issue (net of treasury shares) 7 20,560,051 20,661,272 20,725,742 Net asset value per share 8 120.35p 154.57p 106.97p

These financial statements were approved by the Board of Directors on 26 August 2009 and signed on behalf of the Board by: JM Le Pelley D Warr Director Director The notes on pages 19 to 24 are an integral part of these financial statements.

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Condensed Reconciliation of Movements in Equity Shareholders’ Funds For the six months ended 30 June 2009 (unaudited)

Equity share

capital

Own shares held in

treasury Share

premium

Capital redemption

reserve

Capital reserve-realised

Capital reserve-

unrealised Revenue

reserve Total £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 At 1 January 2009 2,083 (168) 5,422 4,308 8,320 (1,847) 4,053 22,171 Shares repurchased during the period - (463) - - - - - (463) Premium arising on share elections -2008 final dividend - - - - - - (332) (332) Dividend and scrips - 234 - - - - (234) - Net profit - - - - 4,512 (1,242) 99 3,369 At 30 June 2009 2,083 (397) 5,422 4,308 12,832 (3,089) 3,586 24,745

There are no other recognised Income and Expenses for the six months ended 30 June 2009 For the year ended 31 December 2008 (audited)

Equity share

capital

Own shares held in

treasury Share

premium

Capital redemption

reserve

Capital reserve-realised

Capital reserve-

unrealised Revenue

reserve Total £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 At 1 January 2008 2,083 (176) 5,422 4,308 14,139 3,281 3,724 32,781 Shares repurchased during the year - (280) - - - (7) - (287) Premium arising on share elections -2007 final dividend - - - - - - (316) (316) -2008 interim dividend - - - - - - (109) (109) Dividend and scrips - 288 - - - 288 (288) 288 Net profit - - - - (5,819) (5,409) 1,042 (10,186) At 31 December 2008 2,083 (168) 5,422 4,308 8,320 (1,847) 4,053 22,171

There are no other recognised Income and Expenses for the year ended 31 December 2008 The notes on pages 19 to 24 are an integral part of these financial statements.

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Condensed Cash flow statement For the six months ended 30 June 2009 (unaudited)

Six months ended Year ended

30 June 2009 30 June 2008 31 December

2008 Notes £’000 £’000 £’000 Cash flows from operating activities

Payment on purchase of investments (37,386) (61,687) (125,206)

Proceeds from sale of investments 37,045 64,548 131,109

Cash received from investments 237 1,068 1,373

Other income 24 14 54

Investment management fee paid (57) (83) ( 153)

Other cash payments (162) (105) (263)

Net cash (outflow)/inflow from operating activities (300) 3,755 6,914

Cash flows from financing activities

Interest paid - (269) (326)

Share repurchase (463) (279) ( 1)

Equity dividends paid (332) (320) (425)

Repayment of long term loan - (3,200) (5,200)

Net cash outflow from financing activities (795) (4,068) (5,952)

Net (decrease)/increase in cash and cash equivalents (1,095) (313) 962

Cash and cash equivalents at the beginning of the period 1,298 336 376

Cash and cash equivalents at the end of the period 203 23 1,298

The notes on pages 19 to 24 are an integral part of these financial statements.

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Notes to the Condensed Set of Financial Statements (unaudited) 1. General information UK Select Trust Limited is a UK Investment Trust Company incorporated under The Companies (Guernsey) Law, 2008, with its registered office at Dorey Court, Admiral Park, St Peter Port, Guernsey. UK Select Trust Limited's shares are listed on the London Stock exchange. The objective of the Company is to invest over 80% of its gross assets by value in the UK and the investment policy aims to provide a total return to shareholders in excess of the net total return on the FTSE All Share Index and a progressive dividend policy. The half-yearly report has not been audited or reviewed by the auditors Deloitte LLP pursuant to the Auditing Practices Board guidance on 'Review of Interim Financial Information’. The information presented for the year ended 31 December 2008 does not constitute the statutory financial statements of the Company. A copy of the annual report and audited financial statements for that year have been delivered to the Guernsey Financial Services Commission. The auditors' report on those financial statements was unqualified. 2. Accounting Policies a. Basis of presentation The half-yearly report for the six months ended 30 June 2009 has been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union. The half-yearly report should be read in conjunction with the annual financial statements for the year ended 31 December 2008, which have been prepared in accordance with International Financial Reporting Standards. b. Standards and interpretations The accounting policies applied in the half-yearly report are consistent with those of the annual financial statements for the year ended 31 December 2008, as described in those financial statements. At the date of authorisation of these statements, the following standards and interpretations were in issue but not yet effective:

IFRS 8 ‘Operating Segments’ (Effective for annual periods beginning on or after 1 January 2009); and

Amendments to IAS 1: ‘Presentation of financial statements - A revised presentation’ (Effective for annual periods beginning on or after 1 January 2009).

The Directors believe that other pronouncements, which are in issue but not yet operative or adopted by the Company, will not have a material impact on the financial statements of the Company.

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Notes to the Condensed Set of Financial Statements (unaudited) (continued) 3. Other income

Six months ended Year ended 30 June 30 June 31 December 2009 2008 2008 £'000 £'000 £'000

Dividends 266 935 1,449 Interest 11 9

54

Other income 13 - 22

Total income 290 944 1,449

4. Basic and diluted return per ordinary share

Six months ended Six months ended Year ended

30 June 2009 30 June 2008 31 December 2008 Revenue Capital Total Revenue Capital Total Revenue Capital Total £ £ £ £ £ £ £ £ £

Return/(loss) 0.48p 15.57p 16.05p 3.30p (4.40)p (1.10)p 5.04p (54.25)p (49.21)p

Revenue return per ordinary share is based on the net revenue on ordinary activities of £99,000 (Six months ended 30 June 2008: £684,000. Year ended 31 December 2008: £1,042,000.) and on 20,707,544 ordinary shares, being the weighted average number of ordinary shares in issue during the period (Six months ended 30 June 2008:20,699,258 . Year ended 31 December 2008: 20,689,850). Capital return per ordinary share is based on a net capital return for the financial period of £3,224,000 (Six months ended 30 June 2008: capital loss £ 911,000. Year ended 31 December 2008: capital loss £11,224,000) and on 20,707,544 ordinary shares, being the weighted average number of ordinary shares in issue during the period (Six months ended 30 June 2008: 20,699,258. Year ended 31 December 2008: 20,689,850).

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Notes to the Condensed Set of Financial Statements (unaudited) (continued)

5. Investments Six months ended Six months ended Year ended 30 June 2009 30 June 2008 31 December 2008

Fair

Value % of net

assets Fair

Value % of net

assets Fair

Value % of net

assets £'000 £'000 £'000 Financial assets at fair value

through profit or loss Designated at fair value through profit or loss

- Listed securities

23,451 94.87

33,744 105.70

19,989 90.16

23,451 94.87

33,744 105.70

19,989 90.16 Six months ended Year ended

30 June 30 June 31

December 2009 2008 2008 £'000 £'000 £'000

Opening book cost 22,116 33,008

33,008

Opening unrealised appreciation

(2,127) 3,281

3,281

Opening valuation 19,989 36,289

36,289

Movements in the period/year:

Purchases at cost 37,386 61,824

125,431

Sales - proceeds

(37,214) (63,679)

(130,796)

- realised gains on sales 4,532 1,772

(5,526)

Increase/(decrease) in unrealised appreciation (1,242) (2,462)

(5,409)

Closing valuation 23,451 33,744

19,989 Comprising:

Closing book cost 26,820 32,924

22,116 Closing unrealised (depreciation)/appreciation

(3,369) 820

(2,127)

Closing valuation 23,451 33,744

19,989

22

Notes to the Condensed Set of Financial Statements (unaudited) (continued) 6. Borrowings The Company has a revolving 5 year loan facility, secured on the assets of the Company, which is due to expire on 23 September 2012 with an aggregate principal amount of £2,000,000, for the purposes of future investment. Interest is payable at a rate of six month sterling LIBOR plus 0.6% and the borrowing is held at amortised cost. During the period, interest of £nil (Six months ended 30 June 2008: £169,416. Year ended 31 December 2008: £231,502) was paid. A fee of 0.30% per annum is payable on the undrawn amount of this facility (1). Further, the Company is required to comply with the following financial covenants imposed by the bank:

• the Company is required to ensure that the borrowing does not at any time exceed 45% of the Adjusted Gross Asset Value;

• the Company is required to maintain the Net Worth at not less that £20,000,000; and • the Company is required to ensure that the investment portfolio includes holdings in not less that

30 separate businesses. (1) The loan is secured on the assets of the Company. 7. Share capital

30 June 30 June 31 December 2009 2008 2008

£'000 £’000 £'000

Authorised

100,000,000 ordinary shares of 10p each 10,000 10,000

10,000

250,000 5% cumulative preference restrictive voting shares of £1 each 250 250

250

10,250

10,250

10,250

The holders of the five per cent cumulative preference restrictive voting shares shall be entitled, out of profits for dividend, to a fixed cumulative preferential dividend at the rate of five per cent per annum and in a winding-up or on a return of capital shall be entitled to repayment of capital in priority to the ordinary shareholders. The ordinary shareholders carry the right to receive any surplus income and in winding-up any surplus assets, after repayment of the preference capital and dividends as above.

23

Notes to the Condensed Set of Financial Statements (unaudited) (continued) 7. Share capital (continued)

30 June

2009 31 December

2008

£'000 £'000 Issued, called up and fully paid:

20,830,484 ordinary shares of 10p each (2008: 20,830,484) 2,083 2,083

30 June 2009

Own Shares held in

treasury Shares in issue

Shares £'000 Shares £'000 Balance at 1 January 2009 (104,742)

(168) 20,830,484 2,083

Shares purchased and held in treasury (446,709)

(463) - - Shares issued in lieu of dividends from treasury 281,018 234 - -

Balance at 30 June 2009 (270,433)

(397)

20,830,484

2,083 31 December 2008

Own shares held in

treasury Shares in issue

Shares £'000 Shares £'000 Balance at 1 January 2008 (118,413) 176 20,830,484 2,083

Shares purchased for cancellation - -

- -

Shares issued in lieu of dividends - -

- -

Shares purchased and held in treasury (202,916)

(280)

- - Shares issued in lieu of dividends from treasury 216,587 288 - -

Balance at 31 December 2008 (104,742)

(168)

20,830,484

2,083

During the period no shares were purchased for cancellation (Year ended 31 December 2008: nil).

24

Notes to the Condensed Set of Financial Statements (unaudited) (continued)

7. Share capital (continued) On 27 April 2009, 180,000 shares were purchased for Treasury at a total cost including expenses of £176,400. On 5 June 2009, 266,709 shares were purchased for Treasury at a total cost including expenses of £286,712. On 8 May 2009, 281,018 shares were issued to shareholders who elected to receive them in lieu of a final cash dividend for 2008. Ordinary shares of 10p each, fully paid were issued to shareholders from the Treasury reserves account held by the Company. 8. Net asset value per share Net asset value per ordinary share is based on net assets attributable to the ordinary shareholders of £24,745,000 (year ended 31 December 2008: £22,171,000) and on 20,561,051 (year ended 31 December 2008: 20,725,742 ) ordinary shares, being the number of ordinary shares in issue at the end of the period.

10. Related party transactions The members of the Board of Directors are listed on page 4 of the half-yearly report. Fees earned by the Directors of the Company during the period were £40,500 (year ended 31 December 2008: £81,000) of which £20,250 (year ended 31 December 2008: £20,250) was outstanding at the period end. The investment manager, Scottish Widows Investment Partnership Limited exercises discretion over 28.42% (2008: 29.28%) of shares in the Company, on behalf of their clients, and earned investment management fees of £57,129 (year ended 31 December 2008: £ 153,587) during the period of which £31,099 (2008: £27,958) was outstanding at the period end and a performance fee of £31,099 (year ended 31 December 2008: £Nil) which was outstanding at the period end. The basis of calculation of these fees is detailed in note 3 of the annual financial statements. On 18 August 2009 Corporate Services (Guernsey) Limited resigned and the Company appointed Kleinwort Benson (Channel Islands) Funds Services Limited as provider of administrative and accounting services. Administrative fees (including the accounting fee) for the period ended 30 June 2009 totalled £72,000 (year ended 31 December 2008: £84,000) of which £Nil (year ended 31 December 2008: £38,333) was outstanding at the period end. 11. Events after the balance sheet date There have been no significant events after balance sheet date which in the opinion of the Board of Directors require disclosure in the financial statements.