INVESTMENT EXAMPLES: CURRENT INVESTMENTS

Cosalt (LSE:CSLT)
Marine and Offshore personal safety

When Hanover joined the board in March 2007 Cosalt was an underperforming conglomerate, with diverse interests in Marine Safety, School Uniforms and Holiday Homes.

Hanover has since overseen 4 acquisitions and 2 disposals, transforming the group into a pure play Marine & Offshore personal safety business.

Operational improvements have resulted in core margins improving from 3% to 9%, and the group is now well positioned to pursue a global buy and build strategy.

   » Cosalt Website

Singer Capital Markets (Private)
Brokerage firm

Hanover took a significant stake in this well-capitalised UK small-mid cap brokerage firm, which was acquired by management from the administrators of Kaupthing Singer and Friedlander bank and subsequently integrated the majority of the senior and front-office team of small-cap broker Teathers, formerly owned by Landsbanki. Matthew Peacock is Chairman.

   » Singer Website

Spirent (LSE:SPT)
Telecoms test and measurement

Hanover was part of a consortium of investors that took control of Spirent's board in late 2006.

The investment strategy was to increase shareholder value through targeted cost cutting program and the return of cash to shareholders through a share buy back scheme.

Since Hanover's involvement over £130m has been returned to shareholders, and EBIT margins have expanded from 3% to 17%.

   » Spirent Website

INVESTMENT EXAMPLES: PAST INVESTMENTS

4imprint (LSE:FOUR)
Branded marketing & promotional products

Hanover built up a 27% stake in 4imprint during 2003, having identified several hidden problems holding back profits.

With the support of other major shareholders, Hanover took control of the board, and installed a new management team to overhaul the US operations.

Performance
In the 24 months after Hanover's involvement EBITA increased 5x, and cash balances 58% above market expectations were delivered.

Return: 2.8x (IRR: 300%)

TDX: The Debt Exchage (Private)
Financial services intermediary

Hanover was a founder investor in this financial services intermediary focused on debt management.

Through active board involvement Hanover oversaw a period of significant revenue and profit growth before exiting in a sale to a private equity buyer in Q4 2008.

Return: >20x

Elementis (LSE:ELM)
Global leader in Chromium chemicals

Hanover built up a 15% stake in Elementis during early 2005, and took control of the board in June 2005 having identified an opportunity to increase value through:

• Cutting bulk capacity and boosting margins
• Divesting of Rubber division
• Reducing overhead
• Increasing the transparency of reporting

Performance
FY06 PBT of £30m delivered, vs. market expectations of £16m before our involvement. Rerating from 6.2x to 8.0x T+2 EV/EBITDA.

Return: 2.5x (IRR 99%)