Chairman's Satement
	Despite the pronounced economic downturn in Asia in 1998 the US economy has been able to continue its robust performance and provide an important support to world trade avoiding the scenario of world industrial recession.
	In addition to these depressed demand events most sectors of shipping have experienced over capacity and trade imbalances. Against this background shipping market conditions have remained weak and it is expected that the group�s profitability in the current year will suffer as a result of this economic climate. Now, at the threshold of a new century there are some signs that the economies in Europe as well as Japan and Asia Pacific are starting to recover leading to an improved outlook for the global economy, seaborne trade and shipping. The Confidence project has been the principal feature of our progress during the year. This innovative and technologically advanced venture now extends to a Series of sixteen vessels. Important new partnerships have been established with other complimentary and prominent concerns in support of this expansion. Our project management services in China have been successful in winning several newbuilding supervision opportunities maintaining the strong position we have established in this market. All sectors of shipping are seeing consolidation activity and are becoming more heavily regulated. For modern shipping to outperform it must promote companies that are specialists, that have an ability to add value to the basic transportation function with a large enough fleet to enable the combined operations to efficiently serve a blue chip customer base in order to achieve high utilisation and a premium return on its assets. Timely entry and exit alongside other complimentary organisations that are financially committed will also be important. Our aim is to position the group with its partners so that it may realise these opportunities. In November this year Tony Bevan decided that the time had come to stand back from the company which he joined some ten years ago and I would like to thank him for his dedicated service and important contribution to our affairs over this period. His position as Finance Director will be succeeded by Mr. Christopher Davies an FCA with some 20 years experience in finance both in industry and in a professional advisory capacity. I am also pleased to welcome Mr. Christopher Williams, Director Corporate Finance who joins us from MeesPierson a Dutch Merchant Bank with a global presence in ship finance activities and Mr. Christopher Hilton, joint Company Secretary and a partner at Eversheds, to the Board affairs. Collectively, these appointments will strengthen senior management and decision making at Board level in the group. I would also like to thank all those who contributed to our results and for their considerable efforts during the past year, our 80th anniversary year since incorporation. Good people are the key to successful business and we must not forget how fortunate we are in this respect. D I Williams November 1999