Directors Report

PRINCIPAL ACTIVITIES AND REVIEW OF THE BUSINESS

Property investment, development and management remain the principal activities of the Group, added to which some diversification towards developing and running Business Centres in both London and Tonbridge is proving very successful. Thus giving more income from the commercial sector with less dependence on the volatile domestic rental scene, although skilful management of the portfolio by the Lettings Manager has ensured voids have been negligible.

The continuing excellent relationship with Notting Hill Housing Trust and with a large part of the Company’s borrowings being on fixed rates has ensured predictable financial control is exercised.

The Battersea Park Road Business Centre with 13 ‘state of the art’ new build apartments opened in April has proved to be most successful, with all flats being occupied and nearly all of the 21 offices being taken. In addition the success of the Tonbridge Business Centre continues, thanks to the team of ladies and their manager whose experience and good direction has successfully guided the London team towards their excellent start. With confidence the Group can almost certainly begin the planned doubling of the Tonbridge Business Centre early next year.

The usual independent professional valuation of the portfolio by Douglas Duff Chartered Surveyors, has shown an encouraging growth in the asset base in excess of £60m. In addition the Group’s directors have prudently organised a substantial cash reserve of £7.5m to be put to good use when opportunities occur to invest further, a recipe which has shown to be a shrewd strategy in past economic downturns.

The Board has continued to ensure the Group follows a carefully planned and conservative policy, with well-controlled borrowing ratios of below 50% of asset values. This will prove to be valuable as we approach uncertain times in the financial and property markets.

Following a remarkably successful year, the clear direction and decisive nature of the management team gives great optimism for further developments in taking the Group from strength to strength.

The Board would like to thank all members of staff for their continuing unstinted support and loyalty