STAVERT ZIGOMALA PLC INTERIM MANAGEMENT REPORT FOR THE HALF YEAR ENDING 30TH NOVEMBER 2011 The Directors confirm there has been a decrease in Shareholders funds during the period under review of £490,024 equivalent to a decrease of 8.65%. This compares with decreases in the FTSE 100 Index of 8.09%and the FTSE All Share Index of 9.14% during the same period. However the Directors consider that there is no directly comparable Index. Dividend and other income was a little better than the comparable period in the previous year but remains subdued because of constraints in dividends from the UK banking sector. The Directors do not consider that this situation is likely to improve in the near future. Your Directors have decided to declare an interim dividend for the ordinary stock units of 25p, the same rate as for commensurate period last year. The deferred stock accordingly will also receive the same dividend as last year. Although not covered by profit for the relevant period, the Company has considerable reserves of Retained Earnings available for payment of dividends. Risks and Uncertainties The principal risks and uncertainties facing the Company relate to the general performance of the UK stock market and our inability to dispose of securities in order to comply with the Listing Rules. Management There has been no changes in the Directors of the Company. Income Statement (Unaudited) 6 months ended 6 months ended Year ended 30th November 2011 30th November 31st May 2011 2010 £ £ £ Income from Fixed Assets Investments 94,501 85,186 158,193 Administrative Expenses 24,994 22,641 46,001 OPERATAING PROFIT 62,545 112,192 Profit on Disposal of Investments 180 37,792 23,086 Finance Income 3,370 3,537 6,701 Finance Costs (175) ----- (350) Profit on ordinary activities before taxation 72,882 103,699 141,629 Taxation on profit on ordinary 213 7,586 675 activities Profit for the Financial Period 72,669 96,113 140,954 Basic and diluted earnings per share (pence) Earnings per Ordinary Stock Unit 24.5p 32.2p 47.2p Earnings per Deferred Stock Unit 19.8p 26.4p 38.9p Statement of Financial Position (Unaudited) FIXED ASSETS £ £ £ Investments 4,636,270 4,794,166 5,135,618 CURRENT ASSETS Debtors 3,659 26,080 1,629 Cash at Bank 564,242 536,593 565,157 567,901 562,673 566,786 LIABILITIES: Trade and other payables 22,532 24,521 30,741 NET CURRENT ASSETS 545,369 538,152 536,045 NET ASSETS 5,181,639 5,332,318 5,671,663 CAPITAL AND RESERVES Called-up share capital 46,000 46,000 46,000 Revaluation reserve 3,184,724 3,262,036 3,639,990 Other reserves 1,600,941 1,615,467 1,600,761 Retained Earnings 349,974 400,806 384,912 SHAREHOLDERS' FUNDS 5,181,639 5,332,318 5,671,663 Statement of Cash Flows (Unaudited) £ £ £ Cash flows from operating activities Operating profit for the period 72,669 62,545 112,192 (Increase)/decrease in debtors (2,030) (10,977) 13,474 (Decrease)/increase in creditors (8,209) (1,062) 5,058 Net cash from operating activities 62,430 50,506 130,724 Taxation (212) ------ (675) Cash flows from investing activities Finance income 3,370 3,537 6,701 Acquisition of investments ----- (16,000) (16,000) Proceeds of disposal of Investments 43,327 52,633 (73,252) Net cash used in investing activities (46,697) (40,170) (63,953) Cash flows from financing activities Finance costs ----- ----- (350) Equity dividends paid (108,000) (108,000) (182,412) Net decrease in cash and cash equivalents (915) (17,324) (11,240) Cash and cash equivalents at period commencement 565,157 553,197 553,917 Cash and cash equivalents at period end 562,242 536,593 565,157 Notes to the Accounts For the half year ended 30th November 2011 1 Stavert Zigomala plc is a company domiciled in the United Kingdom. The financial statements of the Company as at 31st May 2011 are available on request from the Company's registered off at Artillery House, 15 Byrom Street, Manchester M3 4PF. 2. These interim financial statements have been prepared in accordance with the accounting policies as disclosed in Stavert Zigomala Plc's Annual Report of March 2011 These financial statements have not been audited nor reviewed by the auditors, and do not include all the information required for full annual financial statements. Those accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was not qualified and did not contain a statement under section 498 of the Companies Act 2006. The preparation of interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amount of assets and liabilities, income and expenses. Actual results may differ from these estimates. In preparing these interim financial statements, the significant judgments made by management in applying the Company's accounting policies were the same as those that applied to the financial statements for the year ended 31 May 2011. These interim financial statements are the responsibility of the Directors and were approved by the Board on 26th January 2012. 3. The Directors named below confirm, to the best of their knowledge, that this set of interim financial statements has been prepared in accordance with IAS 34 as adopted by the European Union and that the Interim Management Report includes a fair review of the information required by Sections 4.2.7 and 4.2.8 of the Disclosure and Transparency Rules of the United Kingdom Financial Services Authority. Directors E. N. Cooper - Chairman A. C Sullivan - Non-Executive Director 4. The earnings per Stock Unit have been based on the profits attributable to shareholders of £72,669 apportioned between the 200,000 Ordinary Stock Units and the 120,000 Deferred Stock Units in issue, in accordance with the provisions of the Company's Articles relating to the division of profits between the two classes of Stock. 5. The Directors estimate that if all the Company's investments were to be realised at their bid values at 30th November 2011 the taxation liability which would arise would not exceed £615,000, and for which no provision has been made. By Order of the Board Shareholder Information 1. The dividend of 8.75p per share on £1 8 3/4% Cumulative Redeemable Preference Shares, and interim dividends of 25p per Ordinary Stock Unit and 20.34p per Deferred Stock Unit will be paid on 5th March 2012 to the relevant holders registered on 17th February 2012 (record date). The ex dividend date is 15th February 2012. 2. This interim report is being to posted to shareholders and copies are available from the Registrars Stavert Zigomala Plc - Registered in England No. 194028 Registered Office - PO Box 233 Manchester M60 1QP Registrars - Hague Lambert Artillery House, 15 Byrom Street, Manchester M3 4PF