Registered number: 383326

RODELL PROPERTIES LIMITED

DIRECTORS' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2004

RODELL PROPERTIES LIMITED

COMPANY INFORMATION

DIRECTORS Rosemary Bechlar Stuart Hill Nina Temple (resigned 28th May 2004) Paul Robert Norman Simpson (appointed 28th May 2004)

SECRETARY

Peter Facey

COMPANY NUMBER

383326

REGISTERED OFFICE

6 Cynthia Street London N1 9JF

ACCOUNTANTS

Gotham Erskine Chartered Accountants Friendly House 52-58 Tabernacle Street London EC2A 4NJ

BANKERS

Co-operative Bank PLC 1, Islington High Street London N1 9TR

RODELL PROPERTIES LIMITED

CONTENTS

Page

Directors' report Accountants' report Profit and loss account Balance sheet Notes to the financial statements The following pages do not form part of the statutory accounts: Detailed profit and loss account and summaries

1 2 3 4 5-8

9 - 10

RODELL PROPERTIES LIMITED

DIRECTORS' REPORT For the year ended 31 March 2004

The directors present their report and the financial statements for the year ended 31 March 2004. STATEMENT OF DIRECTORS' RESPONSIBILITIES Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing those financial statements, the directors are required to: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. PRINCIPAL ACTIVITIES The principal activities of the Company are that of property ownership, management and equipment leasing. DIRECTORS The directors who served during the year and their beneficial interests in the company's issued share capital were: Ordinary Shares shares of 1 each 31/3/04 1/4/03 Rosemary Bechlar Stuart Hill Nina Temple (resigned 28th May 2004) Paul Robert Norman Simpson (appointed 28th May 2004) 10 10 -

The report of the directors has been prepared in accordance with the special provisions of Part VII of the Companies Act 1985 relating to small companies. This report was approved by the board on 27 November 2004 and signed on its behalf.

Peter Facey Secretary

Page 1

RODELL PROPERTIES LIMITED

ACCOUNTANTS' REPORT TO THE DIRECTORS ON THE UNAUDITED FINANCIAL STATEMENTS OF RODELL PROPERTIES LIMITED

In accordance with the engagement letter dated 27th January 2003, and in order to assist you to fulfil your duties under the Companies Act 1985, we have compiled the financial statements of the Company which comprise the Profit and Loss Account, the Balance Sheet and the related notes from the accounting records and information and explanations you have given to us. This report is made to the Company's Board of Directors, as a body, in accordance with the terms of our engagement. Our work has been undertaken so that we might compile the financial statements that we have been engaged to compile, report to the Company's Board of Directors that we have done so, and state those matters that we have agreed to state to them in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's Board of Directors, as a body, for our work or for this report. We have carried out this engagement in accordance with technical guidance issued by the Institute of Chartered Accountants in England and Wales and have complied with the ethical guidance laid down by the Institute relating to members undertaking the compilation of financial statements. You have acknowledged on the balance sheet for the year ended 31 March 2004 your duty to ensure that the company has kept proper accounting records and to prepare financial statements that give a true and fair view under the Companies Act 1985. You consider that the company is exempt from the statutory requirement for an audit for the year. We have not been instructed to carry out an audit of the financial statements. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the financial statements.

Gotham Erskine Chartered Accountants Friendly House 52-58 Tabernacle Street London EC2A 4NJ

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RODELL PROPERTIES LIMITED

PROFIT AND LOSS ACCOUNT For the year ended 31 March 2004

Note TURNOVER Administrative expenses OPERATING PROFIT Interest payable PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION TAX ON PROFIT ON ORDINARY ACTIVITIES PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION DIVIDENDS RETAINED PROFIT FOR THE FINANCIAL YEAR 11 3 2 1,

2004 200,096 (77,133) 122,963 (7,639) 115,324 (23,365) 91,959 (73,896) 18,063

2003 208,393 (78,215) 130,178 (6,105) 124,073 (26,086) 97,987 (50,000) 47,987

The notes on pages 5 to 8 form part of these financial statements.

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RODELL PROPERTIES LIMITED

BALANCE SHEET As at 31 March 2004

31 March 2004 Note FIXED ASSETS Tangible fixed assets Investments 4 5 1,801,725 356,847 2,158,572 CURRENT ASSETS Debtors Cash at bank and in hand 6 50,674 248,346 299,020 CREDITORS: amounts falling due within one year NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CAPITAL AND RESERVES Called up share capital Revaluation reserve Other reserves Profit and loss account SHAREHOLDERS' FUNDS 11 11 8 60 633,518 1,961,638 (269,207) 2,326,009

31 March 2003 1,810,409 405,800 2,216,209

49,652 220,339 269,991

(131,583) 167,437 2,326,009

(179,300) 90,691 2,306,900

60 633,518 1,960,592 (287,270) 2,306,900

The directors consider that the company is entitled to exemption from the requirement to have an audit under the provisions of section 249A(1) of the Companies Act 1985 and members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 249B(2) of the Act. The directors acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with section 221 of the Companies Act 1985, and for preparing financial statements which give a true and fair view of the state of affairs of the company as at 31 March 2004 and of its profit for the year then ended in accordance with the requirements of section 226, and which otherwise comply with the requirements of the Act relating to the financial statements so far as applicable to the company. The financial statements have been prepared in accordance with the special provisions of Part VII of the Companies Act 1985 relating to small companies and in accordance with the Financial Reporting Standard for Smaller Entities (effective June 2002). The financial statements were approved by the board on 27 November 2004 and signed on its behalf. Stuart Hill Director The notes on pages 5 to 8 form part of these financial statements.

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RODELL PROPERTIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2004

1.

ACCOUNTING POLICIES 1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention as modified by the revaluation of and in accordance with the Financial Reporting Standard for Smaller Entities (effective June 2002). 1.2 Cash flow The financial statements do not include a cash flow statement because the company, as a small reporting entity, is exempt from the requirement to prepare such a statement under the Financial Reporting Standard for Smaller Entities (effective June 2002). 1.3 Turnover Turnover comprises rents receivable and investment income. 1.4 Tangible fixed assets and depreciation Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases: Buildings improvement Fixtures and fittings 10% of cost 10% of cost

2.

OPERATING PROFIT The operating profit is stated after charging: 31/3/04 31 March 2004 Depreciation of tangible fixed assets Pension costs During the year, no director received any emoluments (2003 - nil). 8,684 1,666 31/3/03 31 March 2003 8,685 1,319

3.

TAXATION 31/3/04 31 March 2004 Analysis of tax charge in year UK corporation tax on profits of the year Under /(Over) provision for previous years Tax on profit on ordinary activities 23,365 23,365 25,031 1,055 26,086 31/3/03 31 March 2003

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RODELL PROPERTIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2004

4.

TANGIBLE FIXED ASSETS Land, Furniture, buildings fittings and and improvement equipment Cost or valuation At 1 April 2003 and 31 March 2004 Depreciation At 1 April 2003 Charge for the year At 31 March 2004 Net book value At 31 March 2004 At 31 March 2003 1,797,871 1,802,974 3,854 1,801,725 7,435 1,810,409 5,668 5,103 10,771 24,469 3,581 28,050 30,137 8,684 38,821 1,808,642 31,904 1,840,546 Total

At cost Surplus on valuation:

Cost or valuation of freehold properties at 31 March 2004 is as follows: At Cost 1,175,124 Surplus on valuation 633,518 1,808,642

A valuation of the freeholds was carried out by Baker Lambie, Chartered Surveyors of Myddleton Square, London EC1 in February, 2001. Their estimation of the value was 1,803,000 on an open market vacant possession basis.

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RODELL PROPERTIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2004

5.

FIXED ASSET INVESTMENTS Listed investments Cost At 1 April 2003 Redemption of treasury stock At 31 March 2004 405,800 (48,953) 356,847 405,800 (48,953) 356,847 Total

Listed investments The market value of the listed investments at 31 March 2004 was 350,014 (2003 - 444,596) . 6. DEBTORS 2004 Due within one year Trade debtors Other debtors Amount due from New Politics Network ACT recoverable 11,795 1,855 32,918 4,106 50,674 6,364 8,715 29,460 5,113 49,652 2003

7.

CREDITORS: Amounts falling due within one year 2004 Loans Payments received on account Trade creditors Corporation tax Social security and other taxes Other creditors 90,664 2,458 22,358 12,023 4,080 131,583 2003 135,664 2,806 1,357 29,514 5,454 4,505 179,300

The loan is unsecured and from New Politics Network. Interest is charged at 2% above base rate, and paid annually. The loan is repayable on demand.

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RODELL PROPERTIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2004

8.

SHARE CAPITAL 2004 Authorised 100 Ordinary Shares shares of 1 each Allotted, called up and fully paid 60 Ordinary Shares shares of 1 each 60 60 100 100 2003

9.

FREEHOLD REVALUATION RESERVE Surplus on revaluation of properties in February 2001 633,518

10.

INVESTMENT AND PROPERTY REALISATION RESERVE Surplus on sale of freehold properties 1981 to 1990 Net surplus on sale of securities 1983 to 2001 Deficit on maturity of securities 2001-02 Deficit on maturity of securities 2002-03 Surplus on maturity of securities 2003-04 At 31 March 2004 1,871,097 113,038 (2,838) (20,705) 1,047 1,961,638

11.

RESERVES Profit and loss account At 1 April 2003 Profit retained for the year At 31 March 2004 (287,270) 18,063 (269,207)

12.

PENSION COMMITMENTS There were annual commitments amounting to 1,666 (2003: 1,319) under defined pension contribution schemes. The arrears at the year end were 278 (2003: Nil).

13.

RELATED PARTY TRANSACTIONS - NEW POLITICS NETWORK New Politics Network, an unincorporated association, has beneficial ownership of 100% of the share capital. The company recharged employment and office costs totalling 40,555 (2003: 38,831) and paid 7,639 (2003: 6,015) as interest on a loan (note 7). At the year end, New Politics Network owed the company 32,917 (2003: 29,326) and was owed 90,664 (2003: 135,664) for the loan.

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RODELL PROPERTIES LIMITED

DETAILED TRADING AND PROFIT AND LOSS ACCOUNT For the year ended 31 March 2004 31/3/03 31 March 2003 208,393

Page TURNOVER Less: OVERHEADS Overheads and rental outgoings 10 10

31 March 2004 200,096

(77,133)

(78,215)

OPERATING PROFIT Interest payable

122,963 (7,639)

130,178 (6,105)

PROFIT FOR THE YEAR

115,324

124,073

For management information only.

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RODELL PROPERTIES LIMITED

SCHEDULE TO THE DETAILED ACCOUNTS For the year ended 31 March 2004

31 March 2004 TURNOVER Rental and recharge income Investment income - government stock Bank interest Other interest received 171,685 25,020 3,391 200,096

31/3/03 31 March 2003 171,891 33,343 3,150 9 208,393

31 March 2004 RENTAL OUTGOINGS Staff salaries Staff national insurance Staff pensions Printing and stationery Legal and professional Cleaning Leased telecom line Repairs and maintenance Depreciation - freehold properties Sub total 47,457 4,892 1,666 1,266 695 2,599 1,820 182 5,104 65,681

31/3/03 31 March 2003 43,973 4,099 1,319 164 1,160 1,272 406 4,330 5,104 61,827

ADMINISTRATIVE EXPENSES Accountancy Bank charges Penalties and surcharges Rates Water Light and heat Security and services Insurances Sundry Depreciation - equipment Sub total

2,000 553 375 2,797 85 40 1,436 85 500 3,581 11,452

2,400 416 1,396 2,899 81 133 3,290 1,805 387 3,581 16,388

Total

77,133

78,215

For management information only.

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