Chief Executive's Statement
	Group profits before taxation for the year to 31 March 1999 amounted to �611,000 compared with �203,000 for the previous year. This performance has been achieved against a background of depressed shipping market conditions and following a continued programme of capital investment in China. The Board has recommended a final dividend of �160,000 compared to �140,000 last year.
	Results Our share of retained profits from Confidence Group were �351,000 for the period, a marked improvement of the loss �75,000 in the 1998 accounts. This is principally attributable to the profit on ship sales the balance of which should also help counteract anticipated poor trading conditions in 2000. A financial summary can be found in this site and a commentary on the main components of the group�s activities is made below. Shipping Another year of solid progress has been achieved in the company�s partnerships centred on developing a business around a modern fleet of project/multipurpose cargo vessels. The Confidence Series with principal vessel particulars of 9000DWT, 650 TEU and 300MT lifting capacity is now extended to sixteen vessels. In the last year suitable arrangements were agreed that led to contracts for a further four vessels being undertaken. Option agreements to build units seventeen through to twenty are held by the company and proposals are under review that may lead to the exercise of this position. This further expansion of the series has been assisted by two important developments. First, the Company establishing an investor group of complimentary skills and expertise to invest in shipping and shipping related projects and second, the participation of affiliates of Mammoet Shipping, the Dutch heavy lift specialist in four of the vessels in the Series. The Company�s established project management expertise in vessel design and supervision has been central to the expansion of the Series. Our office in Shanghai, working closely with the classification authorities, has been responsible for supervising the owners interests and this capability has significantly helped to raise the quality standards in the Confidence programme and more generally at Zhonghua Shipyard, Shanghai, China. Over the past year we have developed and built this part of our business and the Company now has a growing team of superintendents based in the Shanghai area with a contracted work programme extending over the next three years. During the past twelve months the Confidence Series has maintained a strong reputation for design, performance and reliability, particularly in the specialised project cargo business. These capabilities have enabled the fleet to be marketed as an ideal business expansion tool for project cargo transportation providers. In July this year Clipper Elite Carriers was formed with responsibility for the commercial management of the fleet. Clipper Elite Carriers will focus on project shipments and its mission is to become an industry leader in providing transport and logistical services worldwide rather than a provider of tonnage to operators. Eleven Confidence vessels have now been delivered and are successfully trading. Graig Ship Management is responsible for the fleet�s technical management. In 1997 accreditation under the International Safety Management Code combined with ISO 9002 was achieved with Det Norske Veritas providing Graig Ship Management with a sound platform for future development. The Company has continued to strengthen its ship management team operating from the Cardiff office during the period under review. Marine Fuel Oil North End Oil is a bunker broking and trading house established in London in 1987 in which the Company holds a 60% shareholding. Confronted with difficult trading conditions for the year under review North End Oil reported a loss of 26,000 compared to profits of �118,000 in the preceding year. Steps have been concluded to ensure that North End Oil operates on an independent basis no longer reliant on financial support from the Company. It�s banking arrangements have been restructured and are now based on invoice discounting supported by credit risk insurance over the majority of its debtor ledger. Cashless Systems In December last year the Debitek group in which the Company owned a 26% shareholding was sold to IVI Checkmate, the third largest electronic transaction solutions provider in North America, for USD5.0m in new IVI Checkmate shares. Debitek, operating out of its offices in Chattanooga designs, assembles and supplies stored value card payment systems to a wide range of user groups within the public and private sectors of the United States. As a result of this transaction the Company�s interest in the enlarged IVI Checkmate have been reduced to below 5% of its issued share capital. Our objective set in September 1993, of the repositioning of the Company to a tightly focused shipping group will mean that our policy will be to divest our interests from this investment during the current year. Investments We share the concerns expressed by some commentators about the high level of stock markets and during last year we elected to sell the majority of the Company�s equity portfolio including our remaining interest in Gerrard, a quoted financial services group on the London Stock Exchange. Outlook The repositioning strategy that has characterised the group over the past six years has had three elements - refocussing; performance improvement; and investment and growth. In terms of simplification, the group has been reorganised into a tightly focused shipping concern, numerous disposals of investments unrelated to shipping have been achieved and within shipping core activities worthy of investment and development have been identified. In the field of performance improvement, we have restructured the Board, strengthened top management, introduced appropriate independent representation to the Board debate and launched a culture change centred around growth, customer focus and management process whilst retaining our current strong cost control culture. The growth element of our repositioning strategy will come from a combination of aiming to be a maritime service provider tailored to our customer needs and an investment programme targeted at developing a strong position in our chosen sectors. The Confidence project has become an important focus and activity for the Company. Our vision is for the venture to become an integrated logistics business operating globally as a specialist in a growing niche market and capitalising on value opportunities that arise through developing customer and supplier partnerships, brand building and an emphasis on Information Technology. If this dynamic can be achieved there is strong evidence that the project will become accessible to the capital markets as an alternative and attractive valuation and funding source. H G Williams November 1999