LONDON FINANCE AND INVEST. GRP PLC - Unaudited Preliminary Results for the year ended 30th June 2017, Dividend Declaration and Directorate Change

Release Date: 28/09/2017 11:06
Code(s): LNF
 
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Unaudited Preliminary Results for the year ended 30th June 2017, Dividend Declaration and Directorate Change

LONDON FINANCE & INVESTMENT GROUP P.L.C.
 (Incorporated in England with registered number 201151)
LSE code: LFI
JSE code: LNF
ISIN: GB0002994001
 (“Lonfin”, “the Company” or “the Group”)

Unaudited Preliminary Results for the year ended 30th June 2017
Dividend Declaration
Directorate Change

London Finance & Investment Group P.L.C. (LSE: LFI, JSE: LNF), the investment company `
whose assets primarily consist of Strategic Investments and a General Portfolio, today announces
its unaudited Preliminary Results for the year ended 30th June 2017, The Board's Dividend Declaration
and a Directorate Change.


Strategy, Business Model and Investment Policy

Lonfin is an investment company whose objective is to generate growth in shareholder value
in real terms over the medium to long term whilst maintaining a progressive dividend policy.

The Group's investment policy is to invest in a range of "Strategic", "General Portfolio" and
from time to time 'Other Investments'. General Portfolio Investments comprise liquid stock
market investments, both in equity instruments and bonds, and, at the Board's discretion,

"Other Investments" are typically property and other physical assets. Strategic Investments
are significant investments in smaller UK quoted companies and these are balanced by a
General Portfolio, which consists of a broad range of investments in major USA, UK and other
European companies which provides a diversified exposure to international equity markets.

In pursuance of the Group's Investing Policy, the Group's net assets per share for 2017
increased by 7% over the previous year to 65.6p and net assets per share have increased
108% over the last five years. Shareholders' dividends for 2017 have increased by 4.7% over
the previous year and by 37.5% over the last five years.

Results

Net assets have increased over the year by 7% from 61.4p per share to 65.6p per share

Strategic Investments have decreased in value, over the year, by 14%, from £12,417,000 to
£10,673,000 due to the sale of part of our investment in Finsbury Food Group Plc.

Profit on sale of strategic investments - £1,861,700 (see below)

Strategic investments are yielding 3.1% (2016 – 2.9%)

The General Portfolio has increased, adjusting for investment purchases and sales, over the
year, by 51% from £7,125,000 to £10,766,000

Fair value movement is £2,199,000

No significant increase in Group operating costs

A final dividend of 0.55 per share is recommended, making a total of 1.1p per share for the
year (2016 – 1.05p)

Of the £1,861,700 realised profit arising on the sale of strategic investments, £217,000 has
been recognised in the current year "other comprehensive income". The remaining profit has
been recognised in prior years as net unrealised fair value gains and a transfer from
unrealised to realised reserves has been made for this amount and is reflected in the
Consolidated Statement of Changes in Shareholders Equity.

In February this year, when we released our unaudited Interim Results, we announced that
the Board had decided to early adopt IFRS 9 with effect from the Interim accounting period.
As a result, the comparative figures for the year ended 30th June 2016 in the Consolidated
Statement of Total Comprehensive Income in these Accounts are restated. Accordingly, the
Company and its subsidiaries (“Group”) achieved an operating profit for the year, before
interest, tax and changes to the fair value adjustments of investments of £275,000, compared
to a restated operating profit for the previous year, before tax and changes to the fair value
adjustments of investments, of £239,000. The Total Comprehensive Income for the year,
comprising profit after tax and the other comprehensive income (the fair value adjustments,
net of tax, of Strategic Investments) was £1,658,000 compared to £3,858,000 for the previous
year. Basic earnings per share are 3.5p (2016- restated earnings per share of 5.4p) and
headline earnings per share are 1.0p (2016 – restated headline earnings per share of 1.9p).

Strategic Investments

Strategic Investments have reduced in value by £1,744,000 being the net proceeds            of
investment disposals of £2,438,000 and a fair value uplift in the remaining portfolio       of
investments of £476,000. The investment disposals gave rise to an historic cost profit      of
£1,862,000, of which £217,000 has been taken to the Consolidated Statement                  of
Comprehensive Income in the year under review.

Western Selection P.L.C. (“Western”)

The Group owns 7,860,515 ordinary shares, being 43.8%, of the issued share capital of
Western.

On 26th September 2017, Western announced unaudited preliminary results showing a profit
after tax of £850,000 for the year to 30th June 2017 (2016 – profit after tax, of £64,000).
Earnings per share were 4.7p (2016 – earnings per share – 0.4p).

Western paid an interim dividend of 1.1p in March this year and proposes a final dividend of
1.1p making 2.2p for the year (2016 – 2.1p). Western's net assets at market value at 30th
June 2017 were £17,125,000 equivalent to 95p per share, an increase of 20% from 79p last
year.
Our share of the net assets of Western, including the value of Western's investments at
market value, was £7,500,000 (2016 - £6,227,000). The fair value for Western recorded in
the Statement of Financial Position is the market value of £3,773,000 (2016 - £3,537,000).
This represents 18% (2016 – 26%) of the net assets of the group.

Western's objective is to generate growth in value for shareholders over the medium to long
term and pay a progressive dividend. Western's business model is to take sizeable minority
stakes in relatively small companies usually before or as their shares are admitted to trading
on one of the UK's stock exchanges and have directors in common through which they can
provide advice and support for these growing companies.

These may or may not become associated companies. The aim is that these companies
(“Core Holdings”) will grow to a stage at which Western's support is no longer required and its
stake can be sold over time into the relevant stock market. Companies that are targeted as
Core Holdings will have an experienced management team, a credible business model and
good prospects for growth.

Western is a strategic investment which is technically a subsidiary of the Company that has
not been consolidated due to the application of the investment entity exemption under IFRS
10.
David Marshall is the Chairman of Western and. Michael Robotham and Edward Beale are
non-executive directors. Western's main Core Holdings are Northbridge Industrial Services
Plc, Swallowfield Plc, Bilby Plc and Tudor Rose International Limited.

An extract from Western's announcement relating to its main Core Holdings is set out below:

   Core Holdings

   Northbridge Industrial Services plc (“Northbridge”)
   Northbridge hires and sells specialist industrial equipment to a non-cyclical customer base.
   With offices or agents in the UK, USA, Dubai, Germany, Belgium, France, Australia, New
   Zealand, Singapore, Brazil, Korea and Azerbaijan, Northbridge has a global customer
   base. This includes utility companies, the oil and gas sector, shipping, construction and
   the public sector. The product range includes loadbanks, transformers and oil tools.
   Further    information    about     Northbridge      is  available    on    their   website:
   www.northbridgegroup.co.uk

   Northbridge, which is admitted to trading on AIM, announced its results for the year ended
   31st December 2016 on 25th April 2017 and recorded a loss after tax of £6,298,000 for
   the year. No dividend was recommended by Northbridge and no dividends were received
   by Western from Northbridge during the year.

   Western holds 3,223,632 Northbridge shares which represents approximately12.45% of
   Northbridge's issued share capital. The value of this investment at 30th June 2017 was
   £3,320,000 (2016 - £2,772,000) which represents approximately 19% (2016 - 19%) of
   Western's net assets.

   David Marshall is a non-executive director of Northbridge.

   Swallowfield plc (“Swallowfield”)
   Swallowfield is a market leader in the development, formulation, manufacture and supply
   of cosmetics, toiletries and related household products for global brands and retailers
   operating in the cosmetics, personal care and household goods market. Further
   information about Swallowfield is available on their website: www.swallowfield.com

   Swallowfield, which is admitted to trading on AIM, announced its annual results for the 52
   weeks ended 24th June 2017 on 19th September 2017 and recorded a profit after tax of
   £2,572,000 compared to a profit after tax of £2,001,000 for the comparable period last
   year. Dividends of £66,900 were received from Swallowfield during the year (2016 –
   £52,000). A final dividend of 3.5p per share has been declared and, if approved, Western
   will receive a further £52,500 of income in December 2017.

   Western sold 500,000 Swallowfield shares, realising a profit of £845,000, during the year.
   At the reporting date, being 30th June 2017, Western held 1,500,000 shares which was
   8.90% of Swallowfield's issued share capital. The market value of our reduced holding in
   Swallowfield on 30th June 2017 had increased to £5,700,000 from the value of our holding
   at 30th June 2016 of £3,400,000. The value of this investment represents approximately
   33% (2016 - 24%) of Western's net assets.

   Edward Beale is a non-executive director of Swallowfield.

   Bilby Plc (“Bilby”)
   Bilby is an established, and award winning, provider of gas installation, maintenance and
   general building services to local authority and housing associations across London and
   South East England. They have a strategy of growing organically and by acquisition.
   Further information about Bilby is available on their website: www.bilbyplc.com.

   During the year Western invested £190,000 in acquiring 362,912 shares in Bilby. Western
   now holds 2,699,280 Bilby shares which represents approximately 6.8% of Bilby's issued
   share capital. The market value of this investment on 30th June 2017 was £1,917,000
   which represents approximately 11% of Western's net assets.

   Bilby, which is admitted to trading on AIM, announced its results for the year ended 31st
   March 2017 on 26th June 2017 showing a profit before tax and non-underlying items of
   £64,000 compared to a restated profit before tax and non-underlying items of £718,000 for
   the 14 month period ended 31st March 2016. Dividends of £53,000 were received from
   Bilby during the year (2016 - £58,000). Bilby announced a final dividend of 1.5p per share
   which was paid in July 2017 and which provided Western with further income of £40,500.




   Tudor Rose International Limited (previously Hartim Limited)(“Tudor Rose
   International”)
   Tudor Rose International works closely with a number of leading UK branded fast-moving
   consumer goods companies, offering a complete sales, marketing and logistical service.
   Based in Stroud, Gloucestershire, Tudor Rose International sells into 78 countries
   worldwide including USA, Spain, Portugal, Italy, Czech Republic, Russia, Turkey, South
   Africa, Saudi Arabia, UAE, Malaysia, Australia and China.

   Western holds 441,090 A ordinary shares in Tudor Rose International which represents
   49.5% of the issued ordinary shares in Tudor Rose International. In February 2017,
   Western subscribed for £1,000,000 redeemable preference shares in Tudor Rose
   International at a par value of 1p per share. These shares were subscribed for by
   converting Western's previous loan to Tudor Rose International of £500,000 and paying a
   further £500,000. Subsequent to the year end, the Company has made available to Tudor
   Rose International a working capital facility of £500,000 bearing interest at the rate of 6%
   per annum and which has been fully draw down.

   Tudor Rose International, which is a private company, has a 31st December year end,
   generated trading profits before tax in the year to 30th June 2017 of £63,100. Turnover in
   the period was £17,145,000 (2016 - £18,542,000). Western's share of a profit after tax for
   the twelve months to 30th June 2017 was £49,550 (2016 – £35,000) and the fair value of
   the investment at 30th June 2017 was £1,647,000 (2016 - £1,290,000) being 10% (2016 –
   9 %) of Western's net assets.

   Western has two nominees on the board of Tudor Rose International: Edward Beale and
   David Marshall.

Finsbury Food Group plc (“Finsbury”)
Finsbury is one of the largest producers and suppliers of premium cakes, bread and morning
goods in the UK and currently supplies most of the UK's major supermarket chains. Further
information about Finsbury, which is admitted to trading on AIM, is available on its website:
www.finsburyfoods.co.uk

During the year, Lonfin disposed of 2,000,000 shares in Finsbury for £2,438,000, realising an
historic cost profit of £1,861,700. At 30th June 2017, Lonfin held 6,000,000 Finsbury shares,
representing approximately 4.6% of Finsbury's issued share capital. The market value of the
holding was £6,900,000 as at 30th June 2017 (cost - £1,724,000) and represents
approximately 34% (2016 – 46%) of Lonfin's net assets.

On 18th September 2017, Finsbury announced audited profits on continuing operations after
tax and minority interests of £12,958,000 for the 52 weeks ended 1st July 2017 (2016 -
£12,754,000).

Finsbury paid an interim dividend of 1.0p and has recommended to its shareholders a final
dividend of 2.0p per share, making 3.0p for the year (2016 – 2.8p). The final dividend, if
approved, will be paid in December and will provide the Company with further income of
£120,000.

Edward Beale was a non-executive director of Finsbury up until 23rd November 2016.



General Portfolio

The investments comprising the General Portfolio at 30th June 2017 are listed below.

Composition of General Portfolio
At 30th June 2017

                                                           £000                           %
British American Tobacco                                    513                          4.8
Investor                                                    503                          4.7
Phillip Morris International Inc                            460                          4.3
Schindler                                                   459                          4.3
Henkel                                                      437                          4.1
Unilever                                                    419                          3.9
Nestle                                                      405                          3.8
Heineken Holding                                            404                          3.6
HSBC Holding                                                391                          3.6
Diageo                                                      386                          3.6
LVMH Moet Hennessey                                         383                          3.6
Reckitt Benckiser Group                                     381                          3.5
Pernod Ricard                                               356                          3.3
3M Co                                                       353                          3.3
Danone                                                      347                          3.2
Kimberley Clark Corp                                        338                          3.1
L'Oreal                                                     338                          3.1
ABB Zurich                                                  338                          3.1
Linde                                                       335                          3.1
Givaudan                                                    324                          3.0
United Technologies Corp                                    319                          3.0
Anheuser Busch Inbev                                        317                          2.9
Chevron Corp                                                313                          2.9
Exxon Mobil Corp                                            311                          2.9
Brown Forman (B)                                            308                          2.9
Imperial Brands                                             307                          2.9
Procter & Gamble Co                                         303                          2.8
BASF                                                        299                          2.8
Becton Dickinson & Co                                       210                          2.0
Compagnie Financiere Richemont                              209                          1.9

                                                         10,766                        100.0



Analysis by currency                                       £000                           %
Euro                                                      3,215                         29.8
Sterling                                                  2,398                         22.3
US Dollar                                                 2,915                         27.1
Swiss Franc                                                  1,735                         16.1
Swedish Kroner                                                 503                          4.7

                                                            10,766                        100.0


The portfolio is diverse with material interests in Food and Beverages, Natural Resources,
Chemicals and Tobacco. We believe that the portfolio of quality companies we hold has the
potential to outperform the market in the medium to long term.

At 30th June 2017, the number of holdings in the General Portfolio was 30 (2016 – 26). We
have increased the amount invested in the General Portfolio over the year by £2,767,000
(2016 - decreased by £20,000).

The opening value of our General Portfolio investments at 30th June 2016 was £7,124,863
which compared with a cost of such investments at the same date of £3,285,706. After
investment purchases (including purchase costs) during the year of £2,854,593 and
investment sales (including selling expenses) during the same period of £206,560, the value
of the General Portfolio investments as at 30th June 2017 had increased by 51% to
£10,765,695.

Directorate Change

Michael Robotham, a non-executive director, will be retiring from the Board of Lonfin at the
Company's forthcoming Annual General Meeting (“AGM”) to be held on 5th December 2017.

For itself and on behalf of the shareholders, the Board would like to thank Michael for his
considerable dedication and service to the Company.

Notwithstanding the loss to the Board of Lloyd Marshall, who passed away last November,
and Michael Robotham, after he has retired at the AGM, the Board is satisfied that it has, for
the time being, a sufficient spread of skills, experience and support to operate the Company.

Operations and Employees

All of our operations and those of Western, except investment selection, are outsourced to
our subsidiary, City Group PLC (“City Group”). City Group also provides office
accommodation, company secretarial and head office finance services to a number of other
companies. City Group has responsibility for the initial identification and appraisal of potential
new strategic investments for the Company and the day to day monitoring of existing strategic
investments and employs 8 people.

Significant Events since the end of the financial year

On 30th August 2017, a new relationship agreement between the Company and Coutts & Co
was signed in relation to the Company's existing credit revolving facility. This extended the
available facilities to 30th September 2022 and set an interest rate of 2.75% per annum
above the banks base rate (3% as at 30th August 2017).

On 20th September 2017, Western made available to Tudor Rose International a working
capital facility of £500,000 bearing interest at a rate of 6% per annum which has been fully
drawn down.

Dividend

The Board recommends a final dividend of 0.55p per share, making a total of 1.1p per ordinary share
for the year (2016 – 1.05p). Subject to shareholders' approval at the Company's AGM to be held on
5th December 2017, the dividend will be paid on 15th December 2017 to those shareholders on the
register at the close of business on 24th November 2017. Shareholders on the South African
register will receive their dividend in South African rand converted from sterling at the closing rate of
exchange on 19th September 2017 being GBP1= ZAR 18.0089.

In respect of the normal gross cash dividend, and in terms of the South African Tax Act, the following
dividend tax ruling only applies to those shareholders who are registered on the South African
register on Friday 15th September 2017. All other shareholders are exempt.

    - The number of shares in issue now and as at the dividend declaration date is
    31,207,479;
    - The dividend has been declared from income reserves, which funds are sourced from
    the Company's main bank account in London and is regarded as a foreign dividend by
    South African shareholders; and
    - The Company's UK Income Tax reference number is 948/L32120.



Dividend dates:

 Last date to trade (SA)                               Tuesday, 21 November 2017


 Shares trade ex-dividend (SA)                     Wednesday, 22 November 2017
 Shares trade ex-dividend (UK)                      Thursday, 23 November 2017
 Record date (UK and SA)                               Friday, 24 November 2017
 Pay date                                              Friday, 15 December 2017

The JSE Listings Requirements require disclosure of additional information in relation to any
dividend payments.

Shareholders registered on the South African register are advised that the dividend
withholding tax will be withheld from the gross final dividend amount of 9.90489 SA cents per
share at a rate of 20% unless a shareholder qualifies for an exemption; shareholders
registered on the South African register who do not qualify for an exemption will therefore
receive a net dividend of 7.92392 SA cents per share. The dividend withholding tax and the
information contained in this paragraph is only of direct application to shareholders registered
on the South African register, who should direct any questions about the application of the
dividend withholding tax to Computershare Investor Services (Pty) Limited, Tel: +27 11 370
5000.

Share certificates may not be de-materialised or re-materialised between Wednesday, 22nd
November 2017 and Friday, 24th November 2017, both days inclusive. Shares may not be
transferred between the registers in London and South Africa during this period either.

Outlook

We believe our mix of Strategic Investments and a General Portfolio gives us every chance of
outperforming the broader market in the medium to long term notwithstanding any short term
volatility in markets, currencies and commodities.

Future Developments

The future development of the Group is dependent on the success of the Group's Investment
Strategy in the light of economic and equity market developments and the continued support
of its Shareholders. The Board will maintain the current Investment Policy for the foreseeable
future and has no plans to change the policy.



28 September 2017
The annual report and accounts will be finalised shortly and sent to shareholders.

This announcement contains inside information for the purposes of Article 7 of EU Regulation
596/2014.

The directors of the Company accept responsibility for the contents of this announcement.

For further information, please contact:

London Finance & Investment Group P.L.C.: 020 7796 9060
(David Marshall/Edward Beale)

Johannesburg Sponsor:
Sasfin Capital (a member of the Sasfin group)


Consolidated Statement of Total Comprehensive Income
For the year ended 30th June
                                                                                               Restated
Operating Income                                                                       2017       2016
                                                                                       £000       £000

Dividends received                                                                      608        550
Rental and other income                                                                 109         82
Profits on sales of investments                                                           3          4
Management service fees                                                                 296        252
                                                                                      1,016        888
Administrative expenses
Investment operations                                                                  (352)      (346)
Management services                                                                    (389)      (303)
Total administrative expenses                                                          (741)      (649)
Operating profit                                                                        275        239

Unrealised changes in the carrying value of General Portfolio investments               989      1,379
Interest payable                                                                        (33)       (16)
Profit before taxation                                                                1,231      1,602
Tax expense                                                                            (121)       106
Profit after taxation                                                                 1,110      1,708
Non-controlling interest                                                                 (7)       (15)
Profit attributable to shareholders                                                   1,103      1,693

Other comprehensive income/(expense)
Unrealised changes in the carrying value of Strategic investments                        77      2,323
Profit on sale of investments                                                           217        385
Other taxation -
Deferred tax                                                                             99       (543)
Corporation tax                                                                        (238)         -
Total Other Comprehensive Income                                                        555      2,165

Total Comprehensive Income attributable to owners of the parent                       1,658      3,858

Reconciliation of headline earnings

Basic and diluted earnings per share                                                   3.5p        5.4p
Adjustment for the unrealised changes in the carrying value of investments, net
of tax                                                                                (2.5)p     (3.5)p
Headline earnings per share                                                             1.0p       1.9p



Consolidated Statement of Financial Position
At 30th June
                                                                  2017      2016
                                                                  £000      £000
Non-current Assets
 Property, Plant and Equipment                                       14        22
 Investments                                                     10,673    12,417
                                                                 10,687    12,439
Current Assets
 Listed investments                                              10,766     7,125
 Trade and other receivables                                        220       272
 Cash at bank                                                       222       588
                                                                 11,208     7,985
Current Liabilities
 Trade and other payables after tax                                (486)     (316)

Net Current Assets                                               10,722     7,669

Deferred Taxation                                                  (829)     (850)
Total Assets less Current Liabilities                            20,580    19,258

Capital and Reserves
 Called up share capital                                          1,560     1,560
 Share premium account                                            2,320     2,320
 Unrealised profits and losses on investments                     8,265     8,539
 Share of retained realised profits and losses of subsidiaries    3,794     1,821
 Company's retained realised profits and losses                   4,544     4,928
 Capital and reserves attributable to owners                     20,483    19,168
 Non-controlling equity interests                                    97        90
Total Capital and Reserves                                       20,580    19,258


Company Statement of Financial Position
At 30th June

                                                                  2017      2016
                                                                  £000      £000
Non-current Assets
Investments in Group companies                                    1,071     3,847

Current Assets
Listed investments                                               10,766     7,125
Trade and other receivables                                          26        27
Cash and cash equivalents                                           101       451
                                                                 10,893     7,603
Current Liabilities
 Trade and other payables: falling due within the year             (117)      (93)
Net Current Assets                                               10,776     7,510
Deferred Taxation                                                  (408)     (330)
Total Assets less Current Liabilities                            11,439    11,027
Capital and Reserves
 Called up share capital                                          1,560     1,560
 Share premium account                                            2,320     2,320
 Unrealised profits and losses on investments                     3,015     2,219
                                                                  6,895     6,099
Realised Profit and Loss
 Balance at 1st July                                              4,928     5,412
 Net Loss for the period                                            (41)     (172)
 Dividends paid                                                    (343)     (312)
Balance at 30th June                                              4,544     4,928
Equity shareholders’ funds                                       11,439    11,027
                  .
                  Registered in England and Wales – Number 201151


                  Consolidated Statement of Cash Flows
                  For the year ended 30th June
                                                                                                                          Restated
                                                                                                          2017                   2016
                                                                                                          £000                   £000
                  Cash flows from operating activities

                  Profit before tax                                                                      1,231                  1,602
                  Adjustments for non-cash -
                  Finance expense                                                                           33                      16
                  Depreciation charges                                                                       8                       9
                  Unrealised changes in the fair value of investments                                     (989)                 (1,379)
                  Decrease/(Increase)in trade and other receivables                                         52                     (55)
                  (Decrease)/Increase in trade and other payables                                          (66)                     96
                  Overseas Taxes paid                                                                      (45)                    (28)
                  Net cash inflow from operating activities                                                224                     261

                  Cash flows from investment activity

                   (Increase)/Decrease in current asset investments                                     (2,652)                    56
                   Disposal of investment                                                                2,438                  1,984
                  Net cash inflow/(outflow) from investment activity                                      (214)                 2,040

                  Cash flows from financing

                   Interest paid                                                                           (33)                    (16)
                   Equity dividends paid                                                                  (343)                   (312)
                   Net drawdown/(repayment) of loan facilities                                               -                  (1,500)
                  Net cash outflow from financing                                                         (376)                 (1,828)

                  (Decrease)/Increase in cash and cash equivalents                                        (366)                   473
                  Cash and cash equivalents at the beginning of the year                                   588                    115
                  Cash and cash equivalents at end of the year                                             222                    588




                  Consolidated Statement of Changes in Shareholders’ Equity

                               Ordinary       Share         Restated         Restated    Restated    Restated           Non-        Total
                                 Share     Premium        Unrealised         Share of    Retained       Total     Controlling      Equity
                                Capital    Account         Profits on    Undistributed   Realised                   Interests
                                                        Investments         Results of   Profits &
                                                                          Subsidiaries    Losses
                                   £000         £000             £000             £000       £000       £000            £000         £000
Year ended 30 June 2016
Balances at 1 July 2015            1,560       2,320             6,304             26       5,412      15,622             75       15,697
Profit for the Year                    -            -            1,180             685       (172)      1,693             15        1,708
Other Comprehensive
                                       -            -            1,055          1,110            -      2,165               -       2,165
Income/(Expense)
Total comprehensive income             -            -            2,235           1,795       (172)      3,858             15        3,873
Dividends paid and total
transactions with                      -            -                -               -       (312)      (312)               -        (312)
shareholders
Balances at 30 June 2016           1,560       2,320             8,539          1,821       4,928      19,168             90       19,258


Year ended 30 June 2017
Balances at 1 July 2016              1,560      2,320           8,539            1,821      4,928        19,168            90   19,258
Profit for the Year                      -           -           913              231          (41)       1,103            7     1,110
Other Comprehensive
                                         -           -         (1,187)           1,742           -          555             -     555
Income/(Expense)
Total comprehensive income               -           -           (274)           1,973         (41)       1,658            7     1,665
Dividends paid and total
transactions with                        -           -              -                -       (343)         (343)            -     (343)
shareholders
Balances at 30 June 2017             1,560      2,320           8,265            3,794      4,544        20,483            97   20,580
                    Notes:

                    1.       Basic earnings per share and Headline earnings per share

                             Basic earnings per share, based on the profit attributable to the shareholders after tax
                             and non-controlling interests of £1,103,000 (2016 restated - £1,693,000) and on
                             31,207,479 shares (2016 – 31,207,479) being the weighted average of the number of
                             shares in issue during the year.

                              Headline earnings are required to be disclosed by the JSE.
                             Headline earnings per share are based on the profit attributable to the shareholders after
                             tax and non-controlling interests, before unrealised changes in the fair value of
                             investments net of tax, of £309,000 (2016 - £589,000) and on 31,207,479 (2016 –
                             31,207,479) shares being the weighted average of the number of shares in issue during
                             the year.

                             The adjustments for the unrealised changes in the carrying value of investments, net of tax
                             of £(794,000) and 2016 restated £(1,104,000)

                    2.       Net assets per share

                             The net assets per share are calculated taking investments at fair value and on
                             31,207,479 shares (2016 – 31,207,479) being the weighted average of the number of
                             shares in issue during the year.

                    3.       The financial information in this preliminary announcement of audited group results
                             does not constitute the company's statutory accounts for the years ended 30th June
                             2017 or 30th June 2016 but is derived from those accounts. The accounts have been
                             prepared in accordance with International Financial Reporting Standards (IFRS) as
                             adopted by the European Union and with those parts of the Companies Act 2006
                             applicable to companies reporting under IFRS. The accounts are prepared on the
                             historical cost bases, except for certain assets and liabilities which are measured at
                             fair value, in accordance with IFRS and comply with IAS 34. The audited accounts
                             for the group for the year ended 30th June 2016 were reported on with an unqualified
                             audit report and have been delivered to the Registrar of Companies.



                             Copies of this notification are held at the Company's office, 6 Middle Street, London,
                             EC1A 7JA (tel. 020 7796 9060) and are available for a period of 14 days from the
                             date of this announcement.

           United Kingdom
           28 September 2017

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