Chief Executive's Statement
	The Group incurred a loss before tax for the year to 31 March 2000 amounting to �1.3m compared with a profit of �611,000 for the previous year. This depressed result is principally attributable to a write off of �1.4m as a result of a subsidiary of the company, North End Oil entering Administrative Receivership in March 2000. The Group�s activities in shipping have traded profitably during the year recording an operating profit of �411,000. A financial summary can be found on this site and a commentary on the main components of the Group�s activities is made below.
	Shipping Further progress has been achieved in the company�s partnerships centred on developing a business around a modern fleet of project cargo vessels. The Confidence fleet with principal vessel particulars of 9000dwt, 650 TEU, 300mt lifting capacity and a service speed of 16.5 knots is now extended to eighteen modern vessels of which three remain to be delivered. In addition, a number of shipping investment projects are under review which could see an expansion of the company�s fleet interests. As discussed in previous years the company has been looking for opportunities to acquire a suitable vessel. We are now pleased to report that the company has entered into a shipbuilding contract and will be taking delivery of a Confidence vessel early in the new year. During the year we have increased our commitment to our established project management expertise in vessel design and supervision in China with the opening of a third office in Shanghai. This marks a serious investment and commitment to China�s shipbuilding industry for Graig. The office will act as a regional marketing coordination office and supervise the work of the company�s offices in the Zhonghua and Jiangyang Shipyards. As a result of our experience in China our project managers and building supervisors in China, working closely with the classification authorities are able to offer an experienced and professional service through to delivery in newbuilding design, specification review, contract negotiations, plan approval, newbuilding supervision, and most other shipbuilding related matters. Currently our newbuilding services in China have been contracted to oversee the construction of some twenty five newbuildings since 1996. Over this period the Confidence fleet has made sound progress in developing its reputation for performance and reliability particularly in the specialised and demanding project cargo business. The fleet is marketed by Clipper Elite Carriers, a commercial management company with offices throughout the globe, that is focussed on project shipments and becoming an industry leader in providing transportation and logistical services worldwide in this niche. Numerous high profile contracts have been successfully executed and as a result the fleet has become the preferred carrier to a select group of partners and customers in the provision of an end to end transportation services. Fifteen Confidence vessels have now been delivered and are successfully trading. Graig Ship Management based in our Cardiff office is responsible for the fleet�s technical management. This division is fully accredited under the ISM code and over the past twelve months increased investment has been made in developing sophisticated IT systems aimed at providing powerful tools to add value and improve the Group�s ship management systems. Investments In March 2000, North End Oil a company in which the Group held a 60% shareholding entered Administrative Receivership as a result of a large debt becoming irrecoverable. Whilst we deeply regret the need for a company in which we have an investment having to go into receivership, fuel oil and bunker trading have been peripheral to Graig�s development plan with the contribution to Group�s profits from this activity falling substantially over the past three years. This event has resulted in a full impairment provision of �1.4m being charged to the Group�s profit and loss account. Outlook The recent broadening of the business into shipping development capital and the provision of certain global value added maritime services has given the Group a solid platform for growth. The further development of the Confidence project will continue to be an important focus and activity for us. Our vision is for the venture to become an integrated business and an industry leader worldwide operating in the specialised project cargo business. An emphasis on logistics management, developing key client and supplier partnerships, brand building and effective IT systems will be important challenges to overcome. The target markets for this venture have suffered from depressed demand events but now, against a backdrop of robust global economic growth, recovery in Asia Pacific and a strong oil market there is clear evidence of increased activity in our target niche. We expect these prospects to lead to a sustained upturn in market conditions and growth for this project. H G Williams November 2000