RECENT ANNOUNCEMENTS

 

Directors Shareholding 9 April 2008
Interim Results 31 March 2008
Chairman's Statement 31 December 2007
Result of AGM 12 December 2007
Directors Shareholding 27 November 2007
Directors Shareholding 23 November 2007
Directors Shareholding 22 November 2007
Preliminary Announcement 9 November 2007
Directors Shareholding 18 May 2007
Directors Shareholding 5 April 2007
Interim report December 2006 30th March 2007
Total Voting Rights 21st December 2006
Results of AGM 12th December 2006
Directors Purchase of Stock Units 8th November 2006
Preliminary Statement 1st November 2006
Notice of Final Results 12th September 2006
Directors Purchase of Stock Units 11th September 2006
Directors Purchase of Stock Units 22nd August 2006
Directors Purchase of Stock Units 4th August 2006
Directors Purchase of Stock Units 4th August 2006
Directors Purchase of Stock Units 4th August 2006
Directors Purchase of Stock Units 4th August 2006
Directors Purchase of Stock Units 2nd August 2006
Directors Purchase of Stock Units 1st August 2006
Directors Purchase of Stock Units 1st August 2006
Move to AIM 25th July 2006
Results of Extraordinary General Meeting 28th June 2006
Non-Statutory Accounts December 2005 26th June 2006
EGM for Change to AIM 9th June 2006
Change of Ex-Dividend Date 2nd May 2006
Second Interim Results December 2005 28th Apr 2006
Directors Purchase of Stock Units 3rd Jan 2006
Directors Purchase of Stock Units 24th Nov 2005
Directors/PDMR Shareholdings 3rd Nov 2005
Directors/PDMR Shareholdings 3rd Nov 2005
Directors/PDMR Shareholdings 28th Oct 2005
Directors Purchase of Stock Units 19th Oct 2005
Directors/PDMR Shareholdings 22nd Sep 2005
Directors/PDMR Shareholdings 14th Sep 2005
Transaction in Own Shares 13th Sep 2005
Interim Results June 2005 9th Sep 2005
Reporting Day Extension for Half Year Figures 15th Jun 2005
Directors Purchase of Stock Units 16th May 2005
Directors Purchase of Stock Units 6th May 2005
Change in Date of AGM 6th May 2005
Disposal of Danby Registrars Limited 20th Jan 2005
Disposal of Danby Registrars Limited 29th Nov 2004
Disposal of Danby Registrars Limited 5th Nov 2004
Directors Purchase of Stock Units 22nd Oct 2004
Disposal of Danby Registrars Limited 15th Oct 2004
Directors Purchase of Stock Units 29th Jun 2004
Directors Purchase of Stock Units 30th Dec 2003
Directors Purchase of Stock Units 30th Dec 2003
Directors Purchase of Stock Units 31st Oct 2003
Directors Purchase of Stock Units 20th Oct 2003
Directors Purchase of Stock Units 6th Oct 2003
Directors Purchase of Stock Units 19th Sep 2003
Directors Purchase of Stock Units 18th Sep 2003
Merger 8th Sep 2003


 
 
 
  9 April 2008 - Directors Shareholding  
 

El Oro and Exploration Company plc (the "Company")

Directors Shareholding

The Company has been informed of the following transactions in stock units by Directors of the Company as follows:

The Hon. Mrs EC Parish, a non-executive Director of the Company, sold 1,750 ordinary 5 pence stock units in the Company at £6.30 per stock unit. This sale comprises 1,750 stock units sold on behalf of an account of her grandchildren who are minors and that Mr. CRW Parish and Mrs. EW Houston are trustees.

Mrs. EW Houston, a non-executive Director of the Company, purchased 1,750 ordinary 5 pence stock units in the Company at £6.32 per stock unit. Mrs. EW Houston purchased the 1,750 stock units on her own behalf.

Mrs. EW Houston, a non-executive Director of the Company, sold 12,964 ordinary 5 pence stock units in the Company at £5.90 per stock unit. Mrs. EW Houston sold the 12,964 stock units on her own behalf.

Mrs. EW Houston, a non-executive Director of the Company, purchased 12,964 ordinary 5 pence stock units in the Company at £5.90 per stock unit. This purchase comprises 12,964 stock units purchased on behalf of an account of her children, three of whom are minors, that Mrs. EW Houston and Mr CRW Parish are trustees of.

Mr. Robert E. Wade, a non-executive Director of the Company, purchased 2,000 stock units at £5.96 per stock unit in the Company.

Mr. CRW Parish, an executive director of the Company, sold 10,000 ordinary 5 pence stock units in the Company at £5.70 per stock unit. This sale comprises 10,000 stock units sold on his own account.

Mr CRW Parish, an executive director of the Company, purchased 10,000 ordinary 5 pence stock units in the Company at £5.703 per stock unit. This purchase comprises 10,000 stock units purchased on behalf of a family trust that Mr CRW Parish is a trustee of.

In addition, the holdings for The Hon. Mrs. EC Parish and Mr CRW Parish have been adjusted to reflect the reallocation of underlying trust accounts. As a result of this, 5,271 stock units have been reallocated from The Hon. Mrs. EC Parish's beneficial holding to Mr CRW Parish's beneficial and non-beneficial holdings in the Company.

Following these dealings:

The Hon. Mrs. EC Parish has a beneficial holding in the Company, following the notification of this sale, of 331,463 stock units representing 3.08% of the Company. This represents an interest of 3.08% in the total voting rights of the Company.

Mrs. EW Houston has a beneficial holding in the Company, following the notification of these transactions, of 1,091,023 representing 10.12% of the Company together with a non-beneficial holding of 564,303 stock units, representing 5.24% of the Company. This represents an interest of 15.36% in the total voting rights of the Company.

Mr CRW Parish has a beneficial holding in the Company, following the notification of these transactions, of 911,614 stock units representing 8.46% of the Company together with a non-beneficial holding of 1,599,493 stock units, representing 14.84% of the Company. This represents an interest of 23.30% in the total voting rights of the Company.

Mr. RE Wade holds 67,712 stock units, representing 0.63% of the Company. This represents an interest of 0.63% in the total voting rights of the Company.

For further information, please contact:

C Robin Woodbine Parish: Chairman
El Oro and Exploration Company plc
Tel: 020 7581 2782

Philip Secrett: Nominated Adviser
Grant Thornton Corporate Finance
Tel: 020 7383 5100

  8 March 2008 - Interim Results  
 

El Oro and Exploration Company plc (the "Company") announces its interim results for the six months ended 31 December 2007.

The interim results for the six months ended 31 December 2007 will be posted to shareholders and are available on the Company?s website www.eloro.co.uk. Extracts from these financial statements are set out below.

For further information, please contact:

C Robin Woodbine Parish: Chairman
Steven McKeane: Company Secretary
El Oro and Exploration Company plc
Tel: 020 7581 2782

Philip Secrett: Nominated Adviser
Grant Thornton Corporate Finance
Tel: 020 7383 5100

  31 December 2007 - Chairman's Statement  
 

CHAIRMAN'S STATEMENT

Results for the period ended 31 December 2007

The Group profit before tax for the six months to 31 December 2007 was £4,810,071 (six months to 31 December 2006: £3,049,025). Group net assets at 31 December 2007 under IFRS, taking all assets at fair value were £81,588,816 equal to 757p per stock unit, (31 December 2006: £77,167,354 equal to 712p per stock unit).

?When them as wallers in sin thinks they?s getting by with it, she said, that?s when He strikes em in His holy wrath. He jest bides His time?. ?Cormac McCarthy - The Orchard Keeper?.

The results for the half-year have since been overshadowed, by continuing turmoil in the financial markets; the collapse of funds such as Peloton, Focus and Carlyle Capital amongst others, and more significantly the rescue of Bear Stearns, underline the gravity of storms swirling through Western economies. An analysis of the indebtedness of some Baltic and East European nations, along with Iceland and Turkey, can only exacerbate this sense of foreboding.

Sadly, in no wise is this the story of events unforetold: the consistent condemnation of derivatives from the hallowed halls of Omaha and Pasadena, warnings from the Governor of the Bank of England and the unremitting Cassandra-like criticism of the US credit boom by the late Dr. Richebacher amongst others, were all happily ignored in the Gadarene rush to amass ever more Gargantuan empires based, as it now appears, on foundations of sand.

The monstrous maelstrom mowing down the mighty and the minnows has made the proud and powerful into mendicant monks seeking salvage from the Federal Reserve or the Bank of England; meanwhile their erstwhile leaders set off into the sun clutching their Brobdingnagian booty, regardless of seeming success or apparent failure.

We have not been immune to declines in the price of property assets as the market anticipates a falling residential and commercial property market. With a wearyingly familiar sense of inevitability, where market conditions of themselves are challenging, Government action has or will exacerbate the situation: in the case of property by imposing rates on vacant property, along with the ridiculous HIPS on residential property; in the case of our Brewery Estate investments, by the malicious assault on smoking within the confines of the pubs, followed hard on its heels by the determination to banish the sale of cigarette vending machines; the decline in profits is beginning to become apparent, albeit in the dim light of dawn. This attack on the pub sector has been compounded by raising the tax on alcohol over and above inflation. Historically, well managed and monitored pubs have presented a secure and agreeable venue for moderate drinking and convivial encounter; wholly at variance with the effects of the G overnment?s 24-hour drinking and changes to the licensing laws; to which a Parliamentary committee has attributed the spread of lager louts in city centres, and other unattractive phenomena.

As if this madness was not enough, the eponymous Harman now proposes to ban repartee and terms of endearment from bars and stores, to give those litigious members of society another chance to sue for supposed or imagined slights. What a desperate state of affairs, to see our vocabulary monitored by the legal profession, under the guise of preventing ?sex discrimination? and our hostelries emasculated and age-old beverages consigned to history by ministers and civil-servants in their plush glass palaces drinking lattes and frattes, whilst imposing ever-more onerous taxes and restrictions on the traditional tipples and tittle-tattle of the British people.

This urge to interfere and 'act', rather than 'sitting pretty, doing nothing' is only too apparent, now that the Government has seen the light and embraced the birth of a new Nuclear Age: sadly, it sold Westinghouse, the leader in that field, to Toshiba, in the same futile fashion it flicked away Qinetiq to Carlyle, and our historic Gold reserves: all first-class National assets.

The British Government has paid obscene obeisance to the European Union, ignoring every promise and poll to align us with that unholy herd, and now assaults the Old Commonwealth and its rights of entry, despite the longevious and formidable ties of blood, trade, tradition and civilisation shared over so many years, with its huge contribution to trade and economy for all parties. Such a perverse policy reaches its nadir in the refusal of residence rights to the Gurkha soldiers who have fought so valiantly to defend us; whilst Post Offices and Village Schools fall to the same Statist or Stalinist philosophy; hill farms and the landscape are discarded, and non-doms are sacrificed for a mess of pottage; playing-fields, including those of Jersey, are pillaged, and even mince-meat, a staple of the beef industry, is confronted with a mad new EU directive; it is remarkable indeed, given the vast reduction in public swimming pools, despite an obligation for their provision, and almost complete destruction of diving-boards, that England can suddenly discover a European Diving Champion.

The attack on ?Risk? is now a central plank of national ?elf and safety? policy, producing generations less and less able to cope with the every day and more substantial crises of life. It also engenders a vast infrastructure which, as the FSA has proved, is horrendously expensive and ultimately incapable of dealing with situations once resolved discreetly, or managed with a raised eyebrow in the confines of the old establishment, but mostly driven by common sense and discernment.

The necessity and obligation facing our economy to cut both taxes and spending significantly has been denied by all parties, particularly the Conservatives in their Cyclops-post-Odysseus blindness driven by the inchoate urging of their spineless strategists. The symbolism of Banana Republic?s arrival in Britain is perhaps apposite.

The deflation of domestic residences whose rise had created the credit boom both in Britain and the United States is now making its sombre black marks in the history books: quite possibly further wreckage may yet descend from the ether as the deflated balloon subsides across the Western world and beyond. This has profound and negative consequences for consumer spending which is no longer underpinned by an annual increase in the value of an underlying asset. For the first time since 1945 the share of equity held by the individual in homes in the United States has fallen below 50%.

Proverbs 11 v 13 state; ?Happy is the man that findeth wisdom and the man that getteth understanding. For the merchandise of it is better than the merchandise of silver and the gain thereof than fine gold.?

Wisdom and vision have been sadly lacking amongst our political and business leaders and the day of Reckoning is upon them. Given this absence, our vision is for the continued accumulation of the alternative, both Silver and Gold and the shares thereof. We congratulate Colin Loosemore of Archipelago in finally securing the remit to develop the exciting mine at Toka Tindung. We have visited other promising projects in Chile and Argentina whilst remaining wary of political interference in various parts of the world. The inability of South Africa to provide adequate power for its burgeoning population and industry has enhanced metal prices for both Gold and Platinum. We are also increasing our exposure to the production of food, fertilizer and agricultural products and are heartened by the continued rise in MP Evans, an outstanding performer in the portfolio.

In conclusion the outlook for retail and housing remains distinctly gloomy, whilst the continuing rise in inter-bank rates bodes ill for the entire financial sector. We would be surprised albeit happy at any pick up in property prices.

We are however well placed in our traditional areas of strength particularly Basic Resources, Energy and Precious Metals. We would expect the latter especially to thrive in the current climate, and will attempt to restrain our excitement.

My thanks are due to my peripatetic Directors, our numerous advisers around the world, and the increasingly formidable team in Cheval Place led by Steve McKeane, Abbie playing in Midfield, and Vicky solid in defence: the Rooney, Ronaldo, Vidic triumvirate. Onwards to Victory.

Robin Woodbine Parish
31 March 2008

CONSOLIDATED INCOME STATEMENT

(Unaudited)

for the six months ended 31 December

six months to 31 December 2007

six months to 31 December 2006

£

£

Revenue

1,326,876

6,978,291

Movement in fair value

8,661,186

(199,439)

Impairment loss on available for sale investments

(3,140,729)

(2,174,506)

Expenses

(922,373)

(909,295)

Profit before finance costs and taxation

5,924,960

3,695,051

Finance costs:

Banks

1,114,889

646,026

1,114,889

646,026

Profit before taxation

4,810,071

3,049,025

Taxation

1,511,254

870,816

Profit for the period

3,298,817

2,178,209

Earnings per stock unit (basic and diluted)

30.44p

20.10p

CONSOLIDATED STATEMENT OF CHANGES IN INCOME AND EXPENSE

(Unaudited)

for the six months ended 31 December

six months to 31 December 2007

six months to 31 December 2006

£

£

Profit for the period

3,298,817

2,178,209

Revaluation of available for sale (AFS) investments during the period

(1,182,555)

9,835,193

Deferred tax on revaluation of AFS investments during the period

441,047

(2,950,558)

Total recognised income and expense for the period

2,557,309

9,062,844

CONSOLIDATED STATEMENT OF CHANGES IN INCOME AND EXPENSE

(Unaudited)

As at 31 December

31 December 2007

31 December 2006

Assets

£

£

Non-current assets

Property, plant and equipment

716,127

734,895

Investment properties

504,504

444,933

1,220,631

1,179,828

Current assets

Trade and other receivables

128,025

191,408

Financial assets:

Available for sale investments

126,012,539

116,492,915

Financial assets - fair valued through the income statement:

Commodities

2,892,093

2,146,315

Cash and cash equivalents

1,505,262

236,565

Liabilities

Current liabilities

Financial liabilities:

Borrowings

16,285,214

23,564,269

Trade and other payables

915,462

422,470

Current tax liabilities

1,276,394

1,211,438

18,477,070

25,198,177

Net current assets

112,060,849

93,869,026

Non-current liabilities

Borrowings

15,000,000

-

Deferred taxation

16,692,664

17,881,500

31,692,664

17,881,500

Net assets

81,588,816

77,167,354

Stockholders' equity

Ordinary stock units

538,825

539,210

Share premium

6,017

6,017

Capital redemption reserve

347,402

347,018

Merger reserve

3,564

3,564

Other reserves

43,682,572

42,653,699

Retained earnings reserve

37,010,436

33,617,846

Total equity

81,588,816

77,167,354

CONSOLIDATED CASH FLOW STATEMENT

(Unaudited)

for the six months ended 31 December

six months to 31 December 2007

six months to 31 December 2006

£

£

Cash flow from operating activities

4,868,131

569,923

Income taxes paid

(1,219,555)

(503,787)

3,648,57

66,136

Cash flow from investing activities

-

(271,780)

Cash flow from financing activities

(2,529,519)

(1,922,508)

Net increase/(decrease) in cash and cash equivalents

1,119,057

(2,128,152)

Cash and cash equivalents at 30 June

(30,891,807)

(20,648,219)

Effect of foreign exchange rate changes

301,747

(259,132)

Cash and cash equivalents at 31 December

(29,471,003)

(23,035,503)

NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL INFORMATION

The Unaudited Consolidated Interim Financial Information (?Financial Information?) for the six months ended 31 December 2007 does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The Financial Information has been prepared using accounting policies and principles consistent with those applied in the preparation of the audited accounts of El Oro and Exploration Company plc for the year ended 30 June 2007. No changes were made to those policies in the preparation of this Financial Information. The Directors have elected not to adopt IFRS 8 "Operating Segments" early.

There was an interim dividend of 13.2 pence paid on 25 October 2007 in relation to the year ended 30 June 2007.

The Financial Information was approved by a Committee of the Board of Directors on 31 March 2007.

The Financial Information has not been subject to review or audit by the Group's Auditor, PriceWaterhouseCoopers LLP.

REVENUE

(Unaudited)

for the six months ended 31 December

six months to 31 December 2007

six months to 31 December 2006

£

£

Dividends from listed available for sale investments

1,043,902

1,006,036

Dividends from unlisted available for sale investments

244,751

146,775

Net gains/(losses) on fair value through the income statement investments

326,355

(80,828)

Net profit on available for sale investments realised

7,024,971

5,993,499

Currency translation gains/(losses)

1,309,860

(110,619)

Other income

38,223

23,428

Other income

9,988,062

6,978,291

NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL INFORMATION

RESERVES

Share premium

Capital redemption

Merger

Other

Retained earnings

At 1 July 2007

6,017

347,402

3,564

49,482,060

35,134,116

Movement in period in values of AFS assets

(1,182,555)

Tax provided on above

441,047

Fair value of AFS investments recycled to income statement

(7,024,971)

Tax relief on above

1,966,991

Profit for the period

3,298,818

Dividends paid

(1,422,498)

At 31 December 2007

6,017

347,402

3,564

43,682,572

37,010,436

RESERVES

Share premium

Capital redemption

Merger

Other

Retained earnings

At 1 July 2006

6,017

344,442

3,564

38,069,136

33,005,519

Purchase and cancellation of own shares

2,576

(271,780)

Movement in period in values of AFS assets

9,835,193

Tax provided on above

(2,950,558)

Fair value of AFS investments recycled to income statement

(3,285,817)

Tax relief on above

985,745

Profit for the period

2,178,209

Dividends paid

(1,294,102)

At 31 December 2006

6,017

347,018

3,564

42,653,699

33,617,846

  12 December 2007 - Result of AGM  
 

El Oro and Exploration Company plc (the "Company") announces that at the Company's Annual General Meeting held today, all of the resolutions were duly passed.

For further information, please contact:

C Robin Woodbine Parish: Chairman
Steven McKeane: Company Secretary
El Oro and Exploration Company plc
Tel: 020 7581 2782

Philip Secrett: Nominated Adviser
Grant Thornton Corporate Finance
Tel: 020 7383 5100

  27 November 2007 - Directors Shareholding  
 

El Oro and Exploration Company plc was informed on 23 November 2007 of the following purchase of 1,000 stock units at 665.0 pence per share by Robert E Wade, a non-executive Director of the Company on 23 November 2007. Following the notification of this purchase Mr Wade holds 65,712 stock units, representing 0.61% of the Company, which represents an interest of 0.61% in the total voting rights of the Company.

For further information, please contact:

C Robin Woodbine Parish: Chairman
El Oro and Exploration Company plc
Tel: 020 7581 2782

Philip Secrett: Nominated Adviser
Grant Thornton Corporate Finance
Tel: 020 7383 5100

  23 November 2007 - Directors Shareholding  
 

El Oro and Exploration Company plc was informed on 22 November 2007 of the following purchases of stock units by Directors of the Company on 20 November 2007 as follows:

The Hon. Mrs EC Parish, an executive director of the Company, purchased 4,326 ordinary 5 pence stock units in the Company at £6.65 per stock unit. This purchase comprises:

  • 1,442 stock units purchased on behalf of the account of her grandchildren who are not minors and that Mr CRW Parish is a trustee; and
  • 2,884 stock units purchased on behalf of the account of her grandchild who is a minor and that Mr CRW Parish is a trustee.

Mr CRW Parish, an executive director of the Company, purchased 674 ordinary 5 pence stock units in the Company at £6.65 per stock unit. The purchase of 674 stock units that Mr CRW Parish were made on behalf of himself

Following these dealings:

Mr CRW Parish has a beneficial holding in the Company, following the notification of this purchase, of 910,669 stock units representing 8.45% of the Company together with a non-beneficial holding of 1,583,954 stock units, representing 14.70% of the Company. This represents an interest of 23.15% in the total voting rights of the Company.

The Hon. Mrs EC Parish has a beneficial holding in the Company, following the notification of this purchase, of 336,734 stock units representing 3.12% of the Company. This represents an interest of 3.12% in the total voting rights of the Company.

For further information, please contact:

C Robin Woodbine Parish: Chairman
El Oro and Exploration Company plc
Tel: 020 7581 2782

Philip Secrett: Nominated Adviser
Grant Thornton Corporate Finance
Tel: 020 7383 5100

  22 November 2007 - Directors Shareholding  
 

El Oro and Exploration Company plc was informed on 20 November 2007 of the following purchases of stock units by directors of the Company on 20 November 2007 as follows:

The Hon. Mrs EC Parish, an executive director of the Company, purchased 945 ordinary 5 pence stock units in the Company at £7.05 per stock unit. This purchase comprises:

  • 465 stock units purchased on behalf of the account of her grandchild who is a minor and that Mr CRW Parish is a trustee;
  • 135 stock units purchased on behalf of the account of her grandchild who is a minor and that Mr CRW Parish is a trustee;
  • 200 stock units purchased on behalf of the account of her grandchild who is a minor and that Mr CRW Parish is a trustee; and
  • 145 stock units purchased on behalf of the account of her grandchild who is a minors and that Mr CRW Parish is a trustee.

Mr CRW Parish, an executive director of the Company, purchased 555 ordinary 5 pence stock units in the Company at £7.05 per stock unit. This purchase comprises:

  • 555 stock units purchased on behalf of family trusts that Mr CRW Parish is a trustee of.

Following these dealings:

Mr CRW Parish has a beneficial holding in the Company, following the notification of this purchase, of 909,995 stock units representing 8.44% of the Company together with a non-beneficial holding of 1,583,954 stock units, representing 14.70% of the Company. This represents an interest of 23.14% in the total voting rights of the Company.

The Hon. Mrs EC Parish has a beneficial holding in the Company, following the notification of this purchase, of 332,408 stock units representing 3.08% of the Company. This represents an interest of 3.08% in the total voting rights of the Company.

For further information, please contact:

C Robin Woodbine Parish: Chairman
El Oro and Exploration Company plc
Tel: 020 7581 2782

Philip Secrett: Nominated Adviser
Grant Thornton Corporate Finance
Tel: 020 7383 5100

  9th November 2007 - Preliminary Announcement  
 

CHAIRMAN'S STATEMENT

The Group profit before tax for the year ended 30 June 2007 was £5,427,232 (eighteen months to 30 June 2006 was £12,018,986). The Group?s net assets at 30 June 2007 under IFRS were £85,511,983 or 793.5 pence per stock unit (2006: £71,970,463 or 668.0 pence per stock unit).

The Board has declared a first and only interim dividend of 13.2p per stock unit for the full year ended 30 June 2007, with the dividend paid on 25 October 2007 to Members registered on the books of the Company at the close of business on 5 October 2007.

?Rock of Ages, cleft for me, let me hide myself in thee?.

Sadly, neither the spiritual solace once so confidently proclaimed from Britain?s pulpits in Cathedrals and Chapels, nor the solidity and security of the Banking system, seem sufficient today to provide shelter from the financial storms confronting Western economies. Weighed down by the leaden lump of unrestrained government spending, individual indebtedness and excess consumption, personal and governmental profligacy threaten the very foundations of our financial system: an assault ameliorated and deferred, but not deterred, by easing of interest rates, initially in the United States.

The sale to Liggett Group by Jesse Boot of the company he had built with such prescience and persistence over the previous 40 years, hugely enhancing and endowing Nottingham in the process even if unrecognised by its Castle museum, preceded the 1929 stock market crash. It remained for his son Lord Trent to re-purchase it with the help of British financiers. There are disturbing similarities to be seen in its recent sale to its deputy chairman and KKR, where the banks have been unable to offload the bonds issued to finance the deal; more recently we have witnessed the collapse of the Qatari-backed bid for Sainsbury?s, where the pension fund was thankfully defended by the eponymous and formerly executive-family: these are potent portents that a Rubicon may have been crossed in the ability to finance substantial deals on one hand, and the more mundane buy-to-let housing deals on the other. Stories of very substantial write-downs on recently built new apartments abound, echoing those of abandoned houses and streets within the United States: all bodes badly for property prices and the banks that have provided finance.

The first 12 months of results following the transition to AIM (as opposed to the preceding 18 month period), whilst not reaching the heady heights ascended previously, mingled with markets reaching their pinnacle in June and early July. This was before the iceberg of sub-prime, promulgated by the purveyors of mortgages to the NINJA market (No Income No Job), holed the supposedly impregnable ship of the financial sector. Property stocks had already begun to buckle under the weight of potential over-supply and increased borrowing costs: hence holdings such as Daejan fell from the inflated level reached on admittance to the FTSE 250 heights to a price at which they, amongst others, sell at a deep discount to assets.

We took the opportunity of converting some of our Greene King loan notes, issued on the takeover of Hardys and Hanson, into Lowland Investment Trust and British Portfolio Trust eschewing the certainty of fixed interest and repayable loan notes for the vagaries of the equity market: a sector that, whatever the short-term doubts, has hugely out-performed the fixed interest sector.

The accounts refer in more detail to the IFRS and UK GAAP treatments of appreciation. Credit is due to Steven McKeane for dealing with the thorny problem of ?impaired value? and the complex calculations required for valuing stocks that have fallen in price for a sustained period of time: we use six months as a guide.

This is also symptomatic of the complexities of modern accounting standards, of which ?mark to market? or ?mark to model? are perhaps the most seditious and dangerous. The caution that once prevailed within the portfolio of marking at lower of ?market or cost? has been supplanted by marking at market; thus exposing portfolio values to the greater volatility seemingly establishing itself today. More dangerous still is a practice utilised by some hedge funds for their portfolio valuations, which is termed ?mark to model? where a potentially self-administered theoretical valuation is applied, especially in the U.S. to funds whose value may be highly questionable, not to mention negligible. The removal of ?pre-emption? is now proposed, transferring power from current to future shareholders; over and above that, MIFID with its ?Day of the Triffids? connotation is another bureaucratic imposition spreading despair and frustration in the Financial community, with no apparent gain.

Another questionable requirement is the need to account for dividends on declaration as opposed to receipt ? a measure whose wisdom has been challenged by Northern Rock?s cancellation of its previously declared dividend. This recalls the catastrophic collapse of Burmah Oil in 1974, and its bailout by the Government. At least there the embedded value of its holding in BP shares provided significant salve for the taxpayers? wounds. No such Aladdin?s Cave is apparent in Northern Rock: perhaps only Pandora?s Box.

We are reminded of events 40 years ago, when dissuaded by wiser and more experienced counsel, from seeking a higher yield from an advertised deposit taker by the adage that, ?higher interest implies higher risk?; sadly a neighbour?s dividend cash was swallowed when the firm in question went bust; just as Orkney Council, years later and not privy to the City gossip which might have forewarned it, lost its rate payers? money in BCCI. That lesson is still being learnt as First Quantum, which excels in its mining of copper and coping with the intricacies of Africa, placed funds on advice from its bankers? HSBC, with Coventree in Canada, along with other mining firms, only to find its ability to repay called into question in the sub-prime debacle. The dire results from Merrill Lynch show how far the mighty have fallen, in the pursuit of those extra points of interest: a folly perpetuated by our present Prime Minister and his Treasury cohorts when selling our Gold at US $ 250 per ounce, partly because it had no yield.

The preservation of capital in the face of the grotesque imbalance in the financial sector, both government and private, has now become the principal challenge confronting us: this at a time when government spending is running amok, disarray over levels of depositor protection is every day apparent and the Governor of the Bank of England considers himself restrained from covert action by a European directive, which is subsequently attributed to an imposition by the Treasury. The folly of the division of supervisory and regulatory roles is now fully exposed. As we watch the Lifeboat tossing amongst the tumultuous waves, we realise that the Chancellor is no Grace, nor is he the Special One. We are not heartened by the prospect of being led by politicians from either main party lacking evident practical experience in business or finance.

In the case of Europe, the refusal of our current Prime Minister to consider a referendum of a new (or old) Treaty means the EC will continue with its increasingly confrontational and Statist policies, devoid of entrepreneurial inspiration, such as the malign attack on Microsoft, which almost single-handedly has transformed the way in which world business operates. The imbedded deficits in France, the debt levels of Spain, the fractured society of government-less Belgium, dubious financial practices and levels of local subsidy, combined with the soaring level of the Euro, not to mention dismal demographics and a declining birth rate amongst the original population, threaten the very structure of the European Union and as such, are symptoms and part of a quagmire best avoided.

Meanwhile our own Government threatens the stability of the United Kingdom by its unannounced, uninvited and unapproved-by-the-electorate level of immigration: indiscriminate between the cognoscenti and contributors from riff-raff from sundry sections of the globe, many with no historical allegiance or connection to Britain. Their entry seems to be expedited or ignored, whilst the departure of British citizens from its airports is subjected to almost unbearable intrusion and inconvenience, with its adverse effects on business. The threat to stability has been highlighted in areas such as Cambridge; age-old balances and checks within our indigenous population are undone, and the faith and self-assurance of our society is assailed, whilst the Health Service and Housing are burdened with its insatiable demands, and an exorbitant level of tax is exacted on those citizens too compliant or too immobile to avoid its clutches. Housing, education, health and our landscape are increasingly confronted with dereliction and their provision denied to British tax-payers; the Armed Forces, already cut to the bone, under-equipped and stretched to breaking point, are to be reduced further, if reports regarding the Navy are to be believed; even centuries? old Village Schools, such as Lydbury North?s, face closure by a Shropshire Council hell-bent on cutting its peripheries, ignoring excellence and creating ever larger and more inaccessible monolithic structures; those great pinnacles of education, Oxford and Cambridge are accused of elitism, the crime to which they should be most assiduously aspiring.

The release of Foot and Mouth virus from a government-owned laboratory is a consequence of the chronic malaise and incompetence that has permeated the hitherto sound structures of the British Government where the diversion or reduc