Chairman's Statement
	The world economy is enjoying its strongest and most balanced period of growth for a decade. The US economy is still growing significantly but showing signs of the inevitable and desirable slowdown. Evidence is mounting that technology driven improvements in productivity have transformed US economic prospects and are enabling the slowdown to be modest.
	Europe is expected to achieve real GDP growth in excess of 3 per cent for the next two years and Asia has staged a remarkably strong rebound in economic activity. A global threat to economic growth is the rise in oil prices but with global oil output exceeding consumption it is expected that the current high oil price will weaken once the winter is over. Against this background, seaborne trade and shipping have experienced an improvement from the difficult trading climate that prevailed throughout 1999 and although some sectors are starting to show signs of stagnation the general outlook for shipping remains stable. The Confidence project has been a significant feature of our progress during the year. This innovative and technologically advanced venture now extends to a series of eighteen modern vessels and the fleet is developing an established position in the specialised project cargo business. Further investment has been committed to our project management services in China maintaining the strong position we have established in this market. The year has also seen expansion of our technical management fleet services in line with best practice. These developments must also be set against a shipping market background where rapid changes are underway. In response to globalisation, shipping in common with most business sectors is having to contemplate wide ranging consolidation and restructuring. Almost every sector of the industry is having to digest unprecedented levels of corporate activity. In particular the container industry is witnessing the birth of the mega carriers and a trend to larger capacity vessels. In parallel there is a growth in demand for more efficient feeder services to link with these new giants. The other fundamental changing the face of shipping has been the frenetic pace behind the development of information technology and the internet as important tools enabling new thinking and commercial advantage. Thus, the concept of logistics management and the supply chain have emerged with IT skills being used extensively in order to minimise intermediaries and to be more efficient in the control and distribution of goods from the factory to the customer. As the Group has continued to grow and become more fully invested the load on our management and administrative team increases. We are fortunate that our staff are so dedicated and enthusiastic. I should like to thank them for the valued part they have played in another important year. It would be unwise to underestimate the challenges that face us but I am in no doubt as to their commitment and determination to succeed. D I Williams November 2000