Lon.Fin.&Inv.Grp. Annual Financial Report

 
TIDMLFI 
 
Lon.Fin.&Inv.Grp. 
 
                            Annual Financial Report 
 
     London Finance & Investment Group P.L.C.  ('Lonfin' or the 'Company') 
 
             Annual Report and Accounts and Annual General Meeting 
 
The Company announces that, in accordance with Listing Rule 9.6.1., the 
following documents have today been submitted to the UK Listing Authority and 
will shortly be available for inspection via the National Storage Mechanism at 
www.hemscott.com/nsm.do: 
 
  * Annual Report and Accounts for the year ended 30th June 2016 ('the Annual 
    Report and Accounts 2016'); 
  * Notice of Annual General Meeting (included within the Annual Report and 
    Accounts 2016) of the Company to be held at 11.00 am on 30th November 2016 
    at 6 Middle Street, London EC1A 7JA; and 
  * Form of Proxy for the 2016 Annual General Meeting (included within the 
    Annual Report and Accounts 2016). 
 
The above documents have been posted to shareholders. The Annual Report and 
Accounts 2016 and Notice of Annual General Meeting are also available on the 
website of City Group P.L.C., the Company Secretary, at www.city-group.com. 
 
The Company's financial statements and information on important events that 
have occurred during the financial year and their impact on the financial 
statements were included in the Company's preliminary announcement released on 
30th September 2016.  That information, together with the information set out 
below, extracted from the Annual Report and Accounts 2016, constitutes the 
material required by Disclosure and Transparency Rule 6.3.5. which is to be 
communicated to the media in full unedited text through a Regulatory 
Information Service.  This announcement is not a substitute for reading the 
full Annual Report and Accounts 2016.  Page and note references in the text 
below refer to page numbers and notes in the Annual Report and Accounts 2016. 
 
Appendix 
 
Business Environment, Financial Instruments & Principal Risks and Uncertainties 
 
The financial instruments of the Group, in addition to its investments, 
comprise cash and borrowings to finance those investments. 
 
As an investment company our principal risks and uncertainties arise from the 
Group's financial instruments, and are: 
 
Stock market volatility and economic uncertainty 
 
The Company's investment performance will be affected by general economic and 
market conditions. Although the Company cannot predict the level of growth in 
the global economy, as with most businesses, it believes a period of weak 
market growth will have an adverse effect on its investments. Volatility 
relating to the Company's investments, including movements in interest rates 
and returns from equity and other investments will impact upon the value of the 
Group's investment portfolio. 
 
Possible volatility of share prices of investments 
 
A number of factors outside the control of the Company may impact the share 
price performance of its investments. Such factors could include investor 
sentiment, local and international stock market conditions, divergence of 
results from analysts' expectations, changes in earnings estimates by analysts 
and changes in political and economic sentiment.  Exchange rate movements will 
contribute to the volatility of prices of foreign stocks. 
 
Dividend income 
 
The ability of the companies that we invest in to pay dividends to shareholders 
depends upon their profitability, cash flow and the extent to which, as a 
matter of law, they have sufficient distributable reserves from which any 
proposed dividends may be paid and the willingness of the boards of such 
companies to pay. There can be no guarantee that the companies we invest in 
will be able to sustain their dividend policies in the future. 
 
Ability to make strategic investments 
 
There are limited opportunities for the Company to make strategic investments 
and therefore there is no guarantee that the Company will be able to do so at a 
price the directors believes will represent fair value. 
 
Liquidity of equity investments in strategic investments 
 
Strategic investments may be made in the equity of "small cap" companies, both 
listed and unlisted. There is a risk that due to the low level of liquidity in 
the equity of these strategic investments the Company may not be able to 
realise its investment, either at all, or at a price the Company believes 
reflects fair value. 
 
The depth and overlap of experience of directors means that there is no key-man 
dependency.  Note 20 on page 26 sets out the policies of the Board, which have 
remained substantially unchanged for the year under review, for managing risks 
associated with its financial instruments. 
 
In addition, the Company is exposed to investment risk arising from the 
selection of investments which it mitigates by drawing on the investment 
experience of its directors. 
 
The Board does not consider that there is any further information relating to 
environmental matters, employees, social, community and human rights issues 
that it is necessary to report for an understanding of the development, 
performance or position of the Company's business. 
 
Related Party Disclosures 
 
Lonfin and its wholly owned subsidiary, Lonfin Investments Limited, owns 43.8% 
of its associated company, Western Selection PLC ('Western'), of which Mr. D.C. 
Marshall, Mr L.H. Marshall, Mr. J. M. Robotham and Mr. E.J Beale are 
directors.  Mr. D.C. Marshall and Mr. J. M. Robotham's shareholdings in Lonfin 
are set out in the accompanying Directors' Report. 
 
Lonfin and Western hold shares in Finsbury Food Group Plc and Northbridge 
Industrial Services Plc respectively.  Mr. D.C. Marshall is a director of 
Northbridge Industrial Services plc and Mr. E. J. Beale is a director of 
Finsbury Food Group Plc. 
 
Mr. D. C. Marshall and Mr. L. H. Marshall are directors and Mr. E.J. Beale is 
the non-executive Chairman of Marshall Monteagle PLC and Mr D. C. Marshall and 
Mr J. M. Robotham are shareholders in Marshall Monteagle PLC which in turn is a 
substantial shareholder in Halogen Holdings PLC.  Mr. D. C. Marshall is 
Chairman of Halogen Holdings PLC and Mr L. H. Marshall and Mr. E. J. Beale are 
directors of Halogen Holdings PLC. 
 
Lonfin and Western own City Group PLC ('City Group') in the ratio 51.4% and 
48.6% respectively.  City Group provides offices and company secretarial and 
administrative services to various companies in the UK and abroad most of which 
are associated with Lonfin and Western including all of the above companies. 
 
City Group operates as a shared service centre and does not seek to make a 
profit from the provision of its standard services to these related parties. 
The various company secretarial, accounting, and directors' fees received by 
City Group from those companies, their associates and subsidiaries, total GBP 
255,000 (2015 - GBP204,000) for the year under review.  At the reporting date the 
aggregate balance due in respect of fees invoiced was GBP85,000 (2015 - GBP194,000) 
and no fees have been paid in advance (2015 - nil). Settlement is within normal 
credit terms. 
 
As disclosed in Notes 12 and 13, the Company was owed GBP6,000 from City Group on 
current account and it owed City Group GBP45,000 for fees.  The Company was also 
owed GBP3,758,000 by Lonfin Investments Limited as disclosed in Note 10. 
 
Other than as disclosed above, no director was interested in any contract 
between the directors, the Company and any other related party that subsisted 
during or at the end of the financial year. 
 
Statement of Directors' Responsibilities in Respect of the Accounts 
 
As set out above, the following responsibility statement is repeated here 
solely for the purpose of complying with Disclosure and Transparency Rule 
6.3.5. This statement relates to and is extracted from page 37 of the Annual 
Report and Accounts 2016. Responsibility is for the full Annual Report and 
Accounts 2016 not the extracted information presented in this announcement or 
the preliminary announcement released on 30th September 2016. 
 
The directors are responsible for preparing the Directors' Report and the 
financial statements in accordance with applicable law and regulations. 
 
Company law requires the directors to prepare financial statements for each 
financial year.  Under that law the directors have elected to prepare the 
financial statements in accordance with International Financial Reporting 
Standards (IFRSs) as adopted by the European Union.  Under company law the 
directors must not approve the financial statements unless they are satisfied 
that they give a true and fair view of the state of affairs of the Company and 
of the profit or loss of the Company for that period. 
 
In preparing these financial statements, the directors are required to: 
 
  * select suitable accounting policies and then apply them consistently; 
  * make judgements and accounting estimates that are reasonable and prudent; 
  * prepare financial statements in accordance with IFRSs as adopted by the 
    European Union       subject to any material departures disclosed and 
    explained in the financial statements; 
  * prepare the financial statements on the going concern basis unless it is 
    inappropriate to presume that the Company will continue in business. 
 
The directors are responsible for keeping adequate accounting records that are 
sufficient to show and explain the Company's transactions and disclose with 
reasonable accuracy at any time the financial position of the Company and 
enable them to ensure that the financial statements comply with the Companies 
Act 2006.  They are also responsible for safeguarding the assets of the Company 
and hence for taking reasonable steps for the prevention and detection of fraud 
and other irregularities. 
 
Each of the directors whose names and functions are listed on page 1 confirms 
that to the best of each person's knowledge and belief: 
 
  * the financial statements, prepared in accordance with IFRSs as adopted by 
    the EU, give a true and fair view of the assets, liabilities, financial 

    position and profit of the Group and the Company; and 
  * the Directors' Report contained in the Annual Report includes a fair review 
    of the development and performance of the business and the position of the 
    Group and the Company, together with a description of the principle risks 
    and uncertainties that they face. 
  * Considers that the Annual Report, taken as a whole, is fair, balanced and 
    understandable and provides the information necessary for shareholders to 
    assess the Company's performance, business model and strategy. 
 
Enquiries to: 
 
London Finance & Investment Group P.L.C.:                    020 7796 9060 
 
 
 
END 
 

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November 07, 2016 08:00 ET (13:00 GMT)