Final Results

 

TIDMPGI 
 
RNS Number : 0874R 
PGI Group PLC 
23 April 2009 
 

 
 
PGI Group Plc 
 
 
Preliminary Statement of the Group's Results for the year ended 31 December 2008 
 
 
Chairman's statement 
 
 
 
 
The Group profit for the year, before tax, biological assets and hyperinflation 
adjustments, was GBP2,008,000, compared with GBP2,417,000 for 2007. 
 
 
The adjustments for the biological assets and hyperinflation in Zimbabwe are 
shown in a separate column. For the reasons I explained in my Chairman's 
statement when this presentation was introduced, they should be viewed with 
caution. 
 
 
Including these adjustments resulted in a Group loss before tax of GBP1,606,000 
(2007: Group profit before tax GBP3,618,000) 
 
 
The Food Group did well, improving its operating profit despite unusually dry 
conditions at the end of last season and large increases in input costs. The 
Malawi tea business benefited from much higher tea prices. 
 
 
Khal Amazi, our Zambian flower business, again increased production, to a total 
last year of 138 million stems. It maintained its profitability despite 
suffering some flood damage to the estate infrastructure in the middle of the 
year. 
 
 
Operating conditions in Zimbabwe were extremely difficult throughout the year. 
Inflation reached unprecedented levels and it became impossible to recruit 
enough labour. The estate produced barely half the volume of tea it had achieved 
in 2007. 
 
 
Jensen, the Group's Russian property management and investment operation, 
started the year reasonably well, but was then hit by the rapidly deteriorating 
market conditions in the second half. 
 
 
Further details of the Group's activities and performance are given in the 
Business Review. 
 
 
At the end of June, we announced an agreement with Stephen Wayne, at that time 
Chief Executive of the Group and Jensen's Chief Executive, to change the 
arrangements with him and with Jensen. Details were set out in a circular to 
shareholders, and the proposals were passed at a meeting on 24 July 2008. The 
full particulars of the transactions resulting from these arrangements and the 
effect on the Group's results are included in the Group's report and accounts. 
 
 
Sebastian Hobhouse was appointed Chief Executive when the transaction with Mr. 
Wayne was concluded. Mr Hobhouse has been a director for the past fifteen years, 
responsible for the Group's African businesses. Mr Wayne stood down from the 
Board, but remains Chief Executive of Jensen. 
 
 
These changes signal that we will concentrate on developing the Food Group for 
PGI's future growth. 
 
 
We are recommending an ordinary dividend of 0.25p per share (2007: 0.25p) 
payable on 5 August 2009 to Shareholders on the register on 1 May 2009. 
 
 
The Company has issued an announcement today regarding the board's proposal to 
cancel the listing of the Company's shares on the London Stock Exchange. For a 
number of reasons, including the small market capitalisation of the Company, the 
small free float, the limited trading in the Company's shares and the costs of 
compliance with the Listing Rules, the directors have come to the view that it 
is no longer in the Company's best interests to maintain its Listing. The 
directors of the Company have explored the possibility of the Company or the 
directors offering to buy the shares of members who would not wish to continue 
to hold them after the cancellation of the listing but, as a result of a number 
of regulatory requirements, the cost of doing so would have been prohibitively 
high to the Company. Nonetheless, shareholders who want to offer their shares 
for sale in the market before the listing is cancelled will still be able to do 
so. A circular will shortly be sent to shareholders setting out details of these 
proposals. 
 
 
The current year has started well, and rainfall in Southern Africa has been more 
or less normal. Tea prices appear to have stabilised at levels well above the 
average of the past five years. We are also benefiting from the strength of the 
US dollar, with all our overseas earnings denominated in that currency or 
currencies pegged to it. If these factors continue, we should produce a 
satisfactory result in 2009. 
 
 
As is always the case, our progress depends on the hard work and commitment of 
our employees. My thanks to all of them. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rupert Pennant-Rea 
Chairman 
23 April 2009 
  Business Review 
 
 
Strategy and objectives 
PGI Group Plc is listed on the main list of the London Stock Exchange. It has 
two business streams, a food group operating in Southern Africa and a property 
management division operating in Russia. 
 
 
The food group operates in Malawi, Zambia and Zimbabwe. The major products are 
tea, cut roses, fresh vegetables and nuts. The property management division, 
Jensen, is based in St. Petersburg. It manages funds that are invested in 
property and property development in that area. 
 
 
The Group's strategy is to continue to develop the food group organically and by 
acquisition focusing on businesses where there is a competitive advantage and 
the opportunity to develop a strong market position. 
 
 
The Group's objective is to create real shareholder value over the long term. In 
the shorter term, the Group aims to increase profits, earnings per share and 
dividends by more than the rate of inflation. 
 
 
Key performance indicators 
The Group monitors its overall performance by measuring the key performance 
indicators set out in the table below: 
+----------------------------------------------+------------------+----------------+ 
|                                              |             2008 |           2007 | 
+----------------------------------------------+------------------+----------------+ 
| Financial:                                   |                  |                | 
+----------------------------------------------+------------------+----------------+ 
| Adjusted earnings per share (pence) (1)      |             1.03 |           0.44 | 
+----------------------------------------------+------------------+----------------+ 
| Free Cashflow(GBP000) (2)                    |            1,646 |          (538) | 
+----------------------------------------------+------------------+----------------+ 
| Non Financial:                               |                  |                | 
+----------------------------------------------+------------------+----------------+ 
| Tea yield (3)                                |     3,100 kgs/ha |  3,448 kgs/ha  | 
+----------------------------------------------+------------------+----------------+ 
| Rose yield (4)                               |  310 stems /sq m |  302 stems /sq | 
|                                              |                  |              m | 
+----------------------------------------------+------------------+----------------+ 
 
  1.  Adjusted earnings per share is the profit after taxation and minorities (before 
  changes in the fair value of investment properties and biological assets and 
  movements relating to the hyperinflation adjustments for Zimbabwe and before the 
  exceptional profit arising on the restructuring of the arrangements with Mr. 
  Wayne and Jensen), divided by the average number of shares in the year. 
  2.  Free cashflow is the net cash flow from operating activities less net interest 
  and capital expenditure but before expenditure on new projects. 
  3.  Tea yield is the production of made tea per hectare from mature estates 
  excluding Zimbabwe . 
  4.  Rose yield is the production of cut stems per square meter of greenhouses. 
 
 
 
The above table of KPI's indicates that the Group achieved increases in nearly 
all of the measures of performance and in most cases by significant amounts. The 
tea yield declined due to the prolonged dry weather in Malawi. 
 
Divisional review 
Food Group 
This division made an operating profit before biological assets and 
hyperinflation adjustments of GBP3,601,000 on a turnover of GBP21,219,000. 
Profitability increased by 6% on 2007. 
 
 
The division's turnover for 2008 is split between: 
 
 
Tea43% 
Cut Flowers                41% 
Vegetables                  11% 
Macadamia Nuts            5% 
 
 
Tea Businesses. 
We operate two tea businesses, Lujeri Tea Estates based in Mulanje, Malawi and 
Eastern Highlands Plantations in Honde Valley, Zimbabwe. Both businesses were 
affected by prolonged dry winter weather which reduced the crop intake. 
 
 
In Malawi the crop was 13% lower than 2007. This lower crop was offset by higher 
spot tea prices which increased by 40%. The full benefit of this was mitigated 
by the unprecedented increase in input costs of fertilizer and energy, though 
overall the effect was positive. 
 
 
Surrounding the Malawi tea fields are smallholder growers and Lujeri has a 
successful commercial relationship with about 5,500 farmers. Lujeri acquires 
their greenleaf and supplies them with extension services and material support 
to help them improve their yields and livelihood. During the year these farmers 
successfully achieved accreditation to the Fairtrade standard and this should 
lead to further development opportunities for them. 
 
 
In Zimbabwe just staying afloat has been a notable achievement. The effects of 
runaway inflation and the concomitant economic collapse made 2008 a year best 
forgotten. Labour availability reduced further and sourcing essential inputs for 
the business proved very tough. This translated into tea production that was 52% 
lower than 2007 and at the year end the business was operating at about one 
third of its productive capacity. 
 
 
The Lujeri business continued through the year to expend capital on replanting 
lower yielding seedling tea with both higher yielding and higher cup quality 
cultivars. This is being done under irrigation and it is proving successful at 
mitigating the risks of the variable rainfall. Further investments were made in 
our tea factories to ensure that they are fully compliant with all first world 
food factory requirements. 
 
 
Cut Flowers 
Our Zambian flower business, Khal Amazi, increased production by 7% to 138 
million stems. This business remains focused on the production of a full colour 
range of sweetheart roses and managing the cold chain from the greenhouse to the 
European customers. 
Khal Amazi developed its customer base further in the year and its roses can now 
be found in a wide range of European supermarkets. This market penetration 
allowed the company to maintain sales in a slowing market. During the year the 
cost of airfreight increased very significantly which put margins under 
pressure. Khal Amazi's tight cost control and economies of scale have allowed it 
to maintain profitability over this volatile period. 
 
 
Capital expenditure was limited to small increases in the productive area and 
improvements in the farm infrastructure 
 
 
Vegetables 
Chalimbana Fresh Produce operates a farm and packhouse that produces peas for 
export to European supermarkets. This business was unprofitable in 2008 which 
was very disappointing given the progress it had made over the previous two 
years in developing its markets. It proved impossible to both pass on to the 
customers the high airfreight cost increases and to maintain sales volumes in a 
slowing market. 
 
 
Macadamia Nuts 
We have macadamia orchards planted adjacent to tea fields in Malawi. The 794 
hectares in the ground have all been planted over the last 20 years and crop 
production has been rising every year as the orchards mature. In 2008 production 
increased by 25%. 
 
 
The orchard nuts are cracked into kernel at our purpose built factory at Thyolo 
in Malawi. This started operations in 2007 and operates to accredited 
international food factory standards. 
 
 
Russia property group 
This division made a loss of GBP708,000 on a turnover of GBP1,448,000. Profits 
in 2007 were GBP1,074,000 and the bulk of the loss was from write-downs in 
property valuations. 
 
 
Jensen group operates out of St Petersburg, Russia and is a property manager, to 
a small extent on its own balance sheet (GBP2.7 million) and to a greater extent 
as a manager to dedicated property funds (GBP124 million). 
 
 
The funds are invested in a wide range of properties, from St Petersburg city 
centre retail and residential to developments in the hinterland. 
 
 
The professionally appraised values of the properties held in the US$101 million 
fund raised by Jensen in 2006 decreased by 29% during the year ended 31 December 
2008. Following the disposal of one of the properties in July 2008, a 
distribution of US$20.2 million was made to investors in the fund. 
 
 
The slowing property market conditions curtailed sales activity in the second 
half. In August Jensen raised a new fund of $62.5million which was uninvested at 
the year end. 
 
 
Principal risks and uncertainties 
The Group's operations are based in Zimbabwe, Malawi, Zambia and Russia. The 
political, economic, legal and regulatory environments in the countries differ, 
in many respects, from those in more developed countries. Consequently, the 
Group results and assets could be affected by factors such as: political or 
labour unrest; violence and lack of law enforcement; expropriation of property; 
high inflation and interest rates not off-set by devaluations of the local 
currency and imposition or change of exchange controls. 
 
 
The financial risk management objectives and policies are set out in the Group's 
report and accounts. 
 
 
The Food Group businesses are affected by unexpected variations in weather 
patterns affecting the crops and variations in commodity prices. 
 
 
The Group operates a funded defined benefits pension plan. A material proportion 
of the assets of this scheme is invested in equities and the value of these 
assets will fluctuate in line with global equity markets. The liabilities of the 
scheme may also increase due to continuing improvements in the mortality rates. 
 
 
Financial review 
Profits 
The profit before tax, before changes in the fair value of investment properties 
and biological assets, and movements relating to hyperinflation adjustments for 
Zimbabwe, amounted to GBP2,933,000 compared with GBP1,345,000 in 2007. The 
profits for 2008 include a profit of GBP711,000 relating to the restructuring of 
the arrangements with Mr S Wayne and Jensen, which were passed by shareholders 
in July 2008. 
 
 
Excluding this profit, the increase in profits before tax, as described above, 
was 65%. 
 
 
The Adjusted earnings per share as defined in the Key performance indicators, 
more than doubled from 0.44p to 1.03p. This was higher than the increase in the 
Adjusted profit before tax, adjusted on the same basis, mainly due to the lower 
tax charge. 
 
 
The loss before tax but after the adjustments for biological assets and 
hyperinflation amounted to GBP1,606,000. 
 
 
Taxation 
The taxation charge on the profits, before changes in the fair value of 
investment properties and biological assets, and movements relating to 
hyperinflation adjustment for Zimbabwe, amounted to GBP26,000 (2007: 
GBP655,000). 
 
 
The lower charge reflected a change in the mix of profits between overseas 
operations in areas with differing tax rates together with the increased 
utilisation of tax losses brought forward and adjustments in respect of prior 
periods. 
 
 
Dividend 
The Board is recommending an ordinary dividend of 0.25p per share (2007: 0.25p). 
 
 
Capital expenditure 
GBP1,565,000 was invested in capital expenditure in 2008 compared with 
GBP1,837,000 in 2007. 
 
 
The major items of expenditure were on agricultural development (the planting of 
tea under irrigation and the planting of new rose varieties). The remainder was 
on general infrastructure and factory improvements. 
 
 
Cash flow 
The Group's free cash flow amounted to GBP1,646,000 compared with an outflow of 
GBP538,000 in 2007. Free cash flow is computed as set out below: 
+------------------------------------------------+---------+-----+---------+ 
|                                                |  2008   |     |  2007   | 
+------------------------------------------------+---------+-----+---------+ 
|                                                |GBP'000  |     |GBP'000  | 
+------------------------------------------------+---------+-----+---------+ 
| Net cash from operating activities             |   3,441 |     |   1,109 | 
+------------------------------------------------+---------+-----+---------+ 
| Net interest cost                              |   (350) |     |   (454) | 
+------------------------------------------------+---------+-----+---------+ 
| Capital expenditure excluding expenditure on   | (1,445) |     | (1,193) | 
| new projects                                   |         |     |         | 
+------------------------------------------------+---------+-----+---------+ 
| Free cash flow                                 |   1,646 |     |   (538) | 
+------------------------------------------------+---------+-----+---------+ 
|                                                |         |     |         | 
+------------------------------------------------+---------+-----+---------+ 
 
 
Net debt 
The Group's net debt amounted to GBP3.273 million at 31 December 2008 (2007: 
GBP2.837 million). Approximately GBP3.56 million of the Group's net debt at the 
end of 2007 was denominated in US$ or currencies directly linked to the US$. The 
strengthening of the US$ and other currencies against the GBP during 2008 has 
increased the Group's reported net debt by GBP1.46 million. 
 
 
Excluding these exchange rate movements, net debt has decreased by GBP1.02 
million. 
 
 
Going concern basis 
The Group's financial position and its business activities together with the 
factors likely to affect its future development and performance are included in 
this Business Review. The principal risks and uncertainties that are likely to 
affect the Group's future development are also reviewed. A summary of the 
Group's policies and processes in respect of capital and financial risk 
management including foreign exchange, interest rate, credit and liquidity risks 
are included in the Group's report and accounts. 
 
 
The Group meets its day-to-day working capital and other funding requirements 
through a combination of medium-term loans and short-term overdraft lending. The 
overseas bank facilities have recently been renewed and the directors are not 
aware of any reason why these facilities should not be renewed in future. In 
addition the Group has significant positive bank balances. As a consequence, and 
after reviewing the current situation, the directors have a reasonable 
expectation that the Company and the Group have adequate resources to continue 
in operational existence for the foreseeable future. Accordingly, the Board has 
continued to adopt the going concern basis in preparing the Group's annual 
report and accounts for 2008. 
 
 
Financial risk management 
Details of the Group's financial risk management objectives and policies 
including capital management and capital structure are contained in the Group's 
report and accounts. 
 
 
Pensions 
The Group's defined benefit pension scheme valued in accordance with IAS19 
recorded a deficit of GBP4,449,000 (2007: GBP3,497,000). 
 
 
The increased deficit resulted from a decline in the value of the investments 
during the year, partly offset by an increase in the discount rate applied to 
the liabilities. 
 
 
Full details are contained in the Group's report and accounts. 
 
 
Corporate social responsibility 
Agriculture 
Our agricultural businesses are very long term by nature. For example tea has a 
productive life of 50 years if managed in a long term sustainable manner. As a 
result we actively manage our environment to ensure the long term health of our 
land and water resources. We pay particular attention to: 
  *  Soil conservation 
  *  Agrochemical and artificial fertilizer use 
  *  Biodiversity and the conservation of natural forest on our estates. 
  *  Water storage and preservation of the catchment. 
 
 
 
Social welfare 
We are large employers of people (12,246 in our food group) and have coherent 
and easily understood codes of conduct. We have higher standards than that 
required by local labour laws and we seek to improve upon them further following 
recommendations from our external accreditation schemes. 
 
 
External accreditation 
All of our businesses are subject to independent auditing by recognised standard 
setters. For the tea businesses these include Ethical Tea Partnership and 
Fairtrade. For the flowers they include MPS, ETI and BOPP. 
 
 
Carbon footprint 
We aim to progressively reduce our carbon footprint over time by substituting 
electricity sources with hydro electric schemes on our estates. 
  *  In Malawi we generate 1,000 KW from hydro electric which is about 25% of our 
  requirement 
  *  In Zimbabwe we are installing a 1,100KW hydro electric plant that will provide 
  up to 50% of our requirements. This plant is being funded by a development 
  partner for the benefit of the local community in the Honde valley. 
 
 
 
The tea and macadamia processing factories, require energy to run the dryers. We 
use eucalyptus timber specially grown on the estate for this purpose. We also 
have a programme to increase the efficiency of the boilers and dryers to reduce 
the energy requirement. 
 
 
Outlook 
A statement on the outlook is included in the Chairman's statement. 
  Consolidated income statement for the year ended 31 December 2008 
 
 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
|                             |       |                                       2008 |                                      2007 | 
+-----------------------------+-------+--------------------------------------------+-------------------------------------------+ 
|                             |       |         Result |                |          |         Result |                |         | 
|                             |       |         before |                |          |         before |                |         | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
|                             |       |     biological |     Biological |          |     biological |     Biological |         | 
|                             |       |                |                |          |                |                |         | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
|                             |       |         assets |         assets |          |         assets |         assets |         | 
|                             |       |            and |            and |          |            and |            and |         | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
|                             |       | hyperinflation | hyperinflation |          | hyperinflation | hyperinflation |   Total | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
|                             |       |    adjustments |    Adjustments |    Total |    adjustments |    adjustments |         | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
|                             | Notes |         GBP000 |         GBP000 |   GBP000 |         GBP000 |         GBP000 |  GBP000 | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| Continuing operations       |       |                |                |          |                |                |         | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| Revenue                     |       |         22,667 |           (99) |   22,568 |         18,713 |          (261) |  18,452 | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| Cost of sales               |       |       (11,459) |            (2) | (11,461) |        (8,768) |          (117) | (8,885) | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| Gross profit                |       |         11,208 |          (101) |   11,107 |          9,945 |          (378) |   9,567 | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
|                             |       |                |                |          |                |                |         | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| Distribution costs          |       |        (3,278) |              2 |  (3,276) |        (2,248) |            (8) | (2,256) | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| Administrative expenses     |       |        (5,419) |             32 |  (5,387) |        (5,902) |           (29) | (5,931) | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| Other operating income      |       |            819 |            (7) |      812 |            154 |             15 |     169 | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| Share of associate's        |       |          (103) |              - |    (103) |            132 |              - |     132 | 
| results                     |       |                |                |          |                |                |         | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
|                             |       |                |                |          |                |                |         | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| Fair value adjustment to:   |       |                |                |          |                |                |         | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| - investment properties     |       |          (747) |              - |    (747) |            916 |              - |     916 | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| - biological assets         |       |              - |        (3,559) |  (3,559) |              - |          1,438 |   1,438 | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| Operating profit/(loss)     |       |          2,480 |        (3,633) |  (1,153) |          2,997 |          1,038 |   4,035 | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
|                             |       |                |                |          |                |                |         | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| Finance revenue             |       |            151 |              - |      151 |             88 |              - |      88 | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| Finance costs               |       |          (623) |              6 |    (617) |          (668) |              6 |   (662) | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| Monetary working capital    |       |              - |             13 |       13 |              - |            157 |     157 | 
| hyperinflation adjustment   |       |                |                |          |                |                |         | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| Profit/(loss) before        |     3 |          2,008 |        (3,614) |  (1,606) |          2,417 |          1,201 |   3,618 | 
| taxation                    |       |                |                |          |                |                |         | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| Taxation                    |     4 |           (26) |            549 |      523 |          (655) |          (251) |   (906) | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| Profit/(loss) for the year  |       |          1,982 |        (3,065) |  (1,083) |          1,762 |            950 |   2,712 | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
|                             |       |                |                |          |                |                |         | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| Profit/(loss) attributable  |       |                |                |          |                |                |         | 
| to:                         |       |                |                |          |                |                |         | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| Equity holders of the       |       |          1,864 |        (2,324) |    (460) |            780 |            682 |   1,462 | 
| parent                      |       |                |                |          |                |                |         | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
| Minority interests          |       |            118 |          (741) |    (623) |            982 |            268 |   1,250 | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
|                             |       |          1,982 |        (3,065) |  (1,083) |          1,762 |            950 |   2,712 | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
|                             |       |                |                |          |                |                |         | 
+-----------------------------+-------+----------------+----------------+----------+----------------+----------------+---------+ 
 
 
+-----------------------------+-----+----------+--------+------------+----------+--------+----------+ 
|                             |     |          |        |            |          |        |          | 
|                             |     |    Pence |        |      Pence |    Pence |        |    Pence | 
+-----------------------------+-----+----------+--------+------------+----------+--------+----------+ 
| Earnings/(loss) per         |   5 |          |        |            |          |        |          | 
| ordinary share              |     |          |        |            |          |        |          | 
+-----------------------------+-----+----------+--------+------------+----------+--------+----------+ 
| From continuing and         |     |          |        |            |          |        |          | 
| discontinued operations:    |     |          |        |            |          |        |          | 
+-----------------------------+-----+----------+--------+------------+----------+--------+----------+ 
| - basic                     |     |     1.45 |        |     (0.36) |     0.60 |        |     1.13 | 
+-----------------------------+-----+----------+--------+------------+----------+--------+----------+ 
| Dividend per ordinary share |   6 |          |        |       0.25 |          |        |     0.25 | 
|                             |     |          |        |            |          |        |          | 
+-----------------------------+-----+----------+--------+------------+----------+--------+----------+ 
 
 
  Consolidated Balance sheet at 31 December 2008 
 
 
+---------------------------------------+---------------+----------+----------+ 
|                                       |               |        Group        | 
+---------------------------------------+---------------+---------------------+ 
|                                       |               |     2008 |     2007 | 
+---------------------------------------+---------------+----------+----------+ 
|                                       |               |   GBP000 |   GBP000 | 
+---------------------------------------+---------------+----------+----------+ 
| ASSETS                                |               |          |          | 
+---------------------------------------+---------------+----------+----------+ 
| Non-current assets                    |               |          |          | 
+---------------------------------------+---------------+----------+----------+ 
| Goodwill                              |               |    2,833 |    2,047 | 
+---------------------------------------+---------------+----------+----------+ 
| Biological assets                     |               |   14,121 |   12,984 | 
+---------------------------------------+---------------+----------+----------+ 
| Property, plant and equipment         |               |   12,893 |   10,435 | 
+---------------------------------------+---------------+----------+----------+ 
| Investment properties                 |               |    1,726 |    2,208 | 
+---------------------------------------+---------------+----------+----------+ 
| Investments                           |               |          |          | 
+---------------------------------------+---------------+----------+----------+ 
| - associates                          |               |      327 |      320 | 
+---------------------------------------+---------------+----------+----------+ 
| - other                               |               |       59 |       45 | 
+---------------------------------------+---------------+----------+----------+ 
|                                       |               |   31,959 |   28,039 | 
+---------------------------------------+---------------+----------+----------+ 
| Current assets                        |               |          |          | 
+---------------------------------------+---------------+----------+----------+ 
| Inventories                           |               |    3,033 |    2,262 | 
+---------------------------------------+---------------+----------+----------+ 
| Trade and other receivables           |               |    2,226 |    1,983 | 
+---------------------------------------+---------------+----------+----------+ 
| Other financial assets                |               |       77 |       17 | 
+---------------------------------------+---------------+----------+----------+ 
| Cash and cash equivalents             |               |    2,682 |    2,006 | 
+---------------------------------------+---------------+----------+----------+ 
|                                       |               |    8,018 |    6,268 | 
+---------------------------------------+---------------+----------+----------+ 
| Assets classified as held for sale    |               |    1,408 |        - | 
+---------------------------------------+---------------+----------+----------+ 
|                                       |               |    9,426 |    6,268 | 
+---------------------------------------+---------------+----------+----------+ 
| Total assets                          |               |   41,385 |   34,307 | 
+---------------------------------------+---------------+----------+----------+ 
| EQUITY AND LIABILITIES                |               |          |          | 
+---------------------------------------+---------------+----------+----------+ 
| Equity attributable to equity holders |               |          |          | 
|                 of the parent company |               |          |          | 
+---------------------------------------+---------------+----------+----------+ 
| Share capital                         |               |   32,401 |   32,365 | 
+---------------------------------------+---------------+----------+----------+ 
| Share premium account                 |               |      425 |      425 | 
+---------------------------------------+---------------+----------+----------+ 
| Capital redemption reserve            |               |      250 |      250 | 
+---------------------------------------+---------------+----------+----------+ 
| Revaluation reserve                   |               |      676 |      457 | 
+---------------------------------------+---------------+----------+----------+ 
| Retained earnings                     |               | (12,989) | (16,746) | 
+---------------------------------------+---------------+----------+----------+ 
|                                       |               |   20,763 |   16,751 | 
+---------------------------------------+---------------+----------+----------+ 
| Minority interests                    |               |    4,286 |    3,920 | 
+---------------------------------------+---------------+----------+----------+ 
| Total equity                          |               |   25,049 |   20,671 | 
+---------------------------------------+---------------+----------+----------+ 
| Non-current liabilities               |               |          |          | 
+---------------------------------------+---------------+----------+----------+ 
| Interest bearing loans and borrowings |               |    1,208 |    1,552 | 
|                                       |               |          |          | 
+---------------------------------------+---------------+----------+----------+ 
| Other payables                        |               |      202 |      177 | 
+---------------------------------------+---------------+----------+----------+ 
| Provision for deferred tax            |               |    1,944 |    2,600 | 
| liabilities                           |               |          |          | 
+---------------------------------------+---------------+----------+----------+ 
| Defined pension plan deficit          |               |    4,449 |    3,497 | 
+---------------------------------------+---------------+----------+----------+ 
|                                       |               |    7,803 |    7,826 | 
+---------------------------------------+---------------+----------+----------+ 
| Current liabilities                   |               |          |          | 
+---------------------------------------+---------------+----------+----------+ 
| Interest bearing loans and borrowings |               |    4,747 |    3,291 | 
+---------------------------------------+---------------+----------+----------+ 
| Trade and other payables              |               |    2,915 |    2,229 | 
+---------------------------------------+---------------+----------+----------+ 
| Other financial liabilities           |               |        - |        9 | 
+---------------------------------------+---------------+----------+----------+ 
| Current tax liabilities               |               |      449 |      281 | 
+---------------------------------------+---------------+----------+----------+ 
|                                       |               |    8,111 |    5,810 | 
+---------------------------------------+---------------+----------+----------+ 
| Liabilities directly associated with  |               |          |          | 
+---------------------------------------+---------------+----------+----------+ 
| the assets classified as held for     |               |      422 |        - | 
| sale                                  |               |          |          | 
+---------------------------------------+---------------+----------+----------+ 
|                                       |               |    8,533 |    5,810 | 
+---------------------------------------+---------------+----------+----------+ 
| Total liabilities                     |               |   16,336 |   13,636 | 
+---------------------------------------+---------------+----------+----------+ 
| Total equity and liabilities          |               |   41,385 |   34,307 | 
+---------------------------------------+---------------+----------+----------+ 
 
 
  Consolidated Cash flow statements for the year ended 31 December 2008 
 
 
+---------------------------------------+---------------+----------------+-----------------+ 
|                                       |               |                            Group | 
+---------------------------------------+---------------+----------------------------------+ 
|                                       |               |           2008 |            2007 | 
+---------------------------------------+---------------+----------------+-----------------+ 
|                                       |               |      Including |       Including | 
|                                       |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
|                                       |               | hyperinflation |  hyperinflation | 
+---------------------------------------+---------------+----------------+-----------------+ 
|                                       |               |    adjustments |     adjustments | 
+---------------------------------------+---------------+----------------+-----------------+ 
|                                       |               |         GBP000 |          GBP000 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Operating activities                  |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| (Loss)/profit before tax from         |               |        (1,606) |           3,618 | 
| continuing operations                 |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Adjustments to reconcile              |               |                |                 | 
| (loss)/profit before tax to net cash  |               |                |                 | 
| flows                                 |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Non-cash:                             |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Depreciation of property, plant       |               |          1,289 |             823 | 
| and equipment                         |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Disposal of property, plant and       |               |           (10) |              53 | 
| equipment                             |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
|     Disposal of investment property   |               |             60 |               - | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Additional retirement benefit         |               |          (265) |           (200) | 
| costs                                 |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
|     Share based payments              |               |             50 |              60 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Disposal of shares to minority        |               |              9 |               4 | 
| interests                             |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
|     Net finance costs                 |               |            466 |             574 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Non cash payments under revised       |               |          (499) |               - | 
| arrangements                          |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
|     Fair value adjustments            |               |          4,246 |         (2,354) | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Share of net losses/(profit) of       |               |            103 |           (132) | 
| associates                            |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Hyperinflation indexation             |               |             73 |             508 | 
| adjustment                            |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Monetary working capital              |               |           (13) |           (157) | 
| hyperinflation adjustment             |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Working capital adjustments:          |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Increase in inventories               |               |          (771) |           (159) | 
+---------------------------------------+---------------+----------------+-----------------+ 
| (Increase)/decrease in trade and      |               |          (303) |           (241) | 
| other receivables                     |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Increase in trade and other           |               |            702 |              38 | 
| payables                              |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Exchange difference on working        |               |            310 |           (881) | 
| capital                               |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Oversea tax paid                      |               |          (400) |           (445) | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Net cash from operating activities    |               |          3,441 |           1,109 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Cash flows from investing activities  |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Capital expenditure                   |               |        (1,565) |         (1,837) | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Disposal of property, plant and       |               |             10 |               - | 
| equipment                             |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Disposal of investment property       |               |            404 |               - | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Interest received                     |               |            151 |             156 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Receipts from/(additions to)          |               |              8 |               9 | 
| investments (net)                     |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Net cash from investing activities    |               |          (992) |         (1,672) | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Cash flows from financing activities  |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Issue of shares (net of expenses)     |               |             36 |              44 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Payment of loans                      |               |        (1,053) |             163 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Interest paid                         |               |          (501) |           (610) | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Dividends paid to equity holders of   |               |          (324) |           (323) | 
| the parent                            |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Dividends and other payments to       |               |          (615) |           (228) | 
| minority interests (net)              |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Distributions from property fund      |               |           (25) |             (1) | 
| (net)                                 |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Net cash from financing activities    |               |        (2,482) |           (955) | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Net (decrease)/increase in cash and   |               |           (33) |         (1,518) | 
| cash equivalents                      |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Cash and cash equivalents at          |               |          (459) |             959 | 
| beginning of period                   |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Effects of exchange rate changes on   |               |          (544) |             100 | 
| cash and cash equivalents             |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Cash and cash equivalents at end of   |               |        (1,036) |           (459) | 
| period                                |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Cash and cash equivalents comprise:   |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Cash                                  |               |          2,682 |           2,006 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Overdrafts                            |               |        (3,718) |         (2,465) | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Cash and cash equivalents             |               |        (1,036) |           (459) | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Interest bearing loans and borrowings |               |        (4,747) |         (3,291) | 
| due within one year                   |               |                |                 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Less: short term debt                 |               |          1,029 |             826 | 
+---------------------------------------+---------------+----------------+-----------------+ 
| Overdrafts                            |               |        (3,718) |         (2,465) | 
+---------------------------------------+---------------+----------------+-----------------+ 
 
 
  Consolidated statement of changes in equity 
 
 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
|                               |         |                        Attributable to equity |           |         | 
|                               |         |                        holders of the Company |           |         | 
+-------------------------------+---------+-----------------------------------------------+-----------+---------+ 
|                               |         |      Share |             |          |         |           |         | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
|                               |         |    premium |             |          |         |           |         | 
|                               |         |          & |             |          |         |           |         | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
|                               |         |    capital |             |          |         |           |         | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
|                               |   Share | redemption | Revaluation | Retained |         |  Minority |   Total | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
|                               | capital |   reserves |     reserve | earnings |   Total | interests |  equity | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
|                               |  GBP000 |     GBP000 |      GBP000 |   GBP000 |  GBP000 |    GBP000 |  GBP000 | 
|                               |         |            |             |          |         |           |         | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| Balance at 1 January 2008     |  32,365 |        675 |         457 | (16,746) |  16,751 |     3,920 |  20,671 | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| Changes in equity for 2008    |         |            |             |          |         |           |         | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| Hyperinflation indexation     |       - |          - |           - |       72 |      72 |         - |      72 | 
| movement                      |         |            |             |          |         |           |         | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| Exchange differences on       |         |            |             |          |         |           |         | 
| translation of net oversea    |         |            |             |          |         |           |         | 
| assets:                       |         |            |             |          |         |           |         | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| - before hyperinflation       |       - |          - |          69 |    6,315 |   6,384 |     1,558 |   7,942 | 
| indexation                    |         |            |             |          |         |           |         | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| - hyperinflation indexation   |       - |          - |           - |    (320) |   (320) |         - |   (320) | 
| movement                      |         |            |             |          |         |           |         | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| Revaluation of property       |       - |          - |         218 |        - |     218 |        54 |     272 | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| Actuarial loss (net) of       |       - |          - |           - |  (1,101) | (1,101) |         - | (1,101) | 
| defined benefits pension plan |         |            |             |          |         |           |         | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| Deferred tax on property      |       - |          - |        (68) |       49 |    (19) |      (17) |    (36) | 
| revaluations                  |         |            |             |          |         |           |         | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| Net (expense)/income          |       - |          - |         219 |    5,015 |   5,234 |     1,595 |   6,829 | 
| recognised directly in equity |         |            |             |          |         |           |         | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| Loss for the year             |       - |          - |           - |    (460) |   (460) |     (623) | (1,083) | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| Total recognised income       |       - |          - |         219 |    4,555 |   4,774 |       972 |   5,746 | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| Issue of new ordinary shares  |         |            |             |          |         |           |         | 
| (net of expenses):            |         |            |             |          |         |           |         | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| - exercise of share options   |      36 |          - |           - |        - |      36 |         - |      36 | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| Purchase of treasury shares   |       - |          - |           - |    (499) |   (499) |         - |   (499) | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| Share-based payment           |       - |          - |           - |       50 |      50 |         - |      50 | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| Dividend paid                 |       - |          - |           - |    (324) |   (324) |         - |   (324) | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| Dividend paid to minority     |       - |          - |           - |        - |       - |     (439) |   (439) | 
| interests                     |         |            |             |          |         |           |         | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| Distributions from property   |       - |          - |           - |     (25) |    (25) |     (197) |   (222) | 
| fund (net)                    |         |            |             |          |         |           |         | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| Disposal of shares to         |       - |          - |           - |        - |       - |         9 |       9 | 
| minority interests            |         |            |             |          |         |           |         | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| Advances from non-equity      |       - |          - |           - |        - |       - |        21 |      21 | 
| minority interests (net)      |         |            |             |          |         |           |         | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
| Balance at 31 December 2008   |  32,401 |        675 |         676 | (12,989) |  20,763 |     4,286 |  25,049 | 
+-------------------------------+---------+------------+-------------+----------+---------+-----------+---------+ 
 
 
  Notes to the Preliminary Statement 
 
 
1. Basis of preparation and significant accounting policies 
These financial statements, from which the information in this preliminary 
statement has been derived, have been prepared in accordance with International 
Financial Reporting Standards ('IFRS') adopted by the European Union and they 
therefore comply with Article 4 of the EU IAS Regulation. They have been 
prepared on the historical cost basis, except for biological assets and 
investment properties which have been measured at fair value. They have also 
been prepared on the going concern basis as set out in the Business Review. 
 
 
The consolidated and company financial statements are presented in sterling and 
all values are rounded to the nearest thousand (GBP000) except where otherwise 
indicated. 
 
 
2. Status of financial information 
The financial information contained in this preliminary announcement does not 
constitute the company's consolidated statutory financial statements for the 
years ended 31 December 2008 or 2007, but is derived from those financial 
statements. 
 
 
The comparative figures for the year ended 31 December 2007 are an extract from 
the full accounts for that year which have been filed with the Registrar of 
Companies and on which the auditors have made a report under Section 235 of the 
Companies Act 1985. 
 
 
3. Segmental reporting 
The Group's primary reporting segments are the following business sectors: 
Food Group     - Tea, roses, vegetables and macadamia nuts. 
Investment property management     - Properties in St. Petersburg, Russia. 
 
 
+-----------------------------+----------------+-----------------+---------+----------------+-----------------+---------+ 
| By activity                 |                                                                         Segment results | 
+-----------------------------+-----------------------------------------------------------------------------------------+ 
|                             |                                       2008 |                                       2007 | 
+-----------------------------+--------------------------------------------+--------------------------------------------+ 
|                             |         Result |                 |         |         Result |                 |         | 
|                             |         before |                 |         |         before |                 |         | 
+-----------------------------+----------------+-----------------+---------+----------------+-----------------+---------+ 
|                             |     biological |      Biological |         |     biological |      Biological |         | 
+-----------------------------+----------------+-----------------+---------+----------------+-----------------+---------+ 
|                             |         assets |          assets |         |         assets |          assets |         | 
|                             |            and |             and |         |            and |             and |         | 
+-----------------------------+----------------+-----------------+---------+----------------+-----------------+---------+ 
|                             | hyperinflation |  hyperinflation |         | hyperinflation |  hyperinflation |         | 
+-----------------------------+----------------+-----------------+---------+----------------+-----------------+---------+ 
|                             |    adjustments |      adjustment |   Total |     adjustment |      adjustment |   Total | 
+-----------------------------+----------------+-----------------+---------+----------------+-----------------+---------+ 
|                             |         GBP000 |          GBP000 |  GBP000 |         GBP000 |          GBP000 |  GBP000 | 
+-----------------------------+----------------+-----------------+---------+----------------+-----------------+---------+ 
| Food Group                  |          3,601 |         (3,633) |    (32) |          3,388 |           1,038 |   4,426 | 
+-----------------------------+----------------+-----------------+---------+----------------+-----------------+---------+ 
| Investment property         |          (708) |               - |   (708) |          1,074 |               - |   1,074 | 
| management                  |                |                 |         |                |                 |         | 
+-----------------------------+----------------+-----------------+---------+----------------+-----------------+---------+ 
| Central costs net of sundry |          (413) |               - |   (413) |        (1,465) |               - | (1,465) | 
| income                      |                |                 |         |                |                 |         | 
+-----------------------------+----------------+-----------------+---------+----------------+-----------------+---------+ 
|                             |          2,480 |         (3,633) | (1,153) |          2,997 |           1,038 |   4,035 | 
+-----------------------------+----------------+-----------------+---------+----------------+-----------------+---------+ 
| Net finance costs           |          (472) |               6 |   (466) |          (580) |               6 |   (574) | 
+-----------------------------+----------------+-----------------+---------+----------------+-----------------+---------+ 
| Monetary working capital    |              - |              13 |      13 |              - |             157 |     157 | 
| hyperinflation adjustment   |                |                 |         |                |                 |         | 
+-----------------------------+----------------+-----------------+---------+----------------+-----------------+---------+ 
| Profit/(loss) before tax    |          2,008 |         (3,614) | (1,606) |          2,417 |           1,201 |   3,618 | 
+-----------------------------+----------------+-----------------+---------+----------------+-----------------+---------+ 
| Taxation                    |           (26) |             549 |     523 |          (655) |           (251) |   (906) | 
+-----------------------------+----------------+-----------------+---------+----------------+-----------------+---------+ 
| Profit/(loss) for the year  |          1,982 |         (3,065) | (1,083) |          1,762 |             950 |   2,712 | 
| from continuing operations  |                |                 |         |                |                 |         | 
+-----------------------------+----------------+-----------------+---------+----------------+-----------------+---------+ 
The investment property management segment includes a loss of GBP103,000 (2007: 
profit GBP132,000) in respect of the results of the associated company. 
 
 
4. Taxation 
+-------------------------------------------------------------+----+----+----+--------+ 
|                                                             |    2008 |        2007 | 
+-------------------------------------------------------------+---------+-------------+ 
|                                                             |  GBP000 |      GBP000 | 
+-------------------------------------------------------------+---------+-------------+ 
| Continuing operations                                       |         |             | 
+-------------------------------------------------------------+---------+-------------+ 
| Current taxation:                                           |         |             | 
+-------------------------------------------------------------+---------+-------------+ 
|     UK corporation tax                                      |     274 |         183 | 
+-------------------------------------------------------------+---------+-------------+ 
|     Double taxation relief                                  |   (274) |       (183) | 
+-------------------------------------------------------------+---------+-------------+ 
|                                                             |       - |           - | 
+-------------------------------------------------------------+---------+-------------+ 
| Foreign tax:                                                |         |             | 
+-------------------------------------------------------------+---------+-------------+ 
|     Current tax on income for the period                    |     420 |         250 | 
+-------------------------------------------------------------+---------+-------------+ 
|     Adjustment in respect of prior periods                  |    (81) |        (26) | 
+-------------------------------------------------------------+---------+-------------+ 
|                                                             |     339 |         224 | 
+-------------------------------------------------------------+---------+-------------+ 
| Deferred taxation:                                               |         |        | 
+------------------------------------------------------------------+---------+--------+ 
|     Origination and reversal of temporary differences            |    (13) |    213 | 
+------------------------------------------------------------------+---------+--------+ 
| Potential tax due on property revaluations and fair value        |   (728) |    471 | 
| adjustments                                                      |         |        | 
+------------------------------------------------------------------+---------+--------+ 
|     Adjustment in respect of prior periods                       |   (121) |    (2) | 
+------------------------------------------------------------------+---------+--------+ 
|                                                                  |   (862) |    682 | 
+------------------------------------------------------------------+---------+--------+ 
| Total tax (credit)/expense reported in the income statement for  |   (523) |    906 | 
| continuing operations                                            |         |        | 
+-------------------------------------------------------------+----+----+----+--------+ 
 
5. Earnings/(loss) per ordinary share 
Basic 
Basic earnings/(loss) per ordinary share is calculated by dividing the result 
attributable to equity holders of the Company by the weighted average number of 
ordinary shares in issue during the year. 
 
 
+----------+-----------+-----------+ 
|          |      2008 |      2007 | 
+----------+-----------+-----------+ 
|          | Thousands | Thousands | 
+----------+-----------+-----------+ 
| Weighted |   128,398 |   129,406 | 
| average  |           |           | 
| number   |           |           | 
| of       |           |           | 
| ordinary |           |           | 
| shares   |           |           | 
| in issue |           |           | 
+----------+-----------+-----------+ 
 
 
+--------------------------------------------+----------------+----------------+----------------+----------------+ 
|                                            |              2008               |              2007               | 
+--------------------------------------------+---------------------------------+---------------------------------+ 
|                                            |         Result |         Result |         Result |         Result | 
|                                            |         before |          after |         before |          after | 
+--------------------------------------------+----------------+----------------+----------------+----------------+ 
|                                            |     biological |     biological |     biological |     biological | 
+--------------------------------------------+----------------+----------------+----------------+----------------+ 
|                                            |         assets |         assets |         assets |         assets | 
|                                            |            and |            and |            and |            and | 
+--------------------------------------------+----------------+----------------+----------------+----------------+ 
|                                            | hyperinflation | hyperinflation | hyperinflation | hyperinflation | 
|                                            |                |                |                |                | 
+--------------------------------------------+----------------+----------------+----------------+----------------+ 
|                                            |    adjustments |    adjustments |    adjustments |    adjustments | 
+--------------------------------------------+----------------+----------------+----------------+----------------+ 
|                                            |         GBP000 |         GBP000 |         GBP000 |         GBP000 | 
+--------------------------------------------+----------------+----------------+----------------+----------------+ 
| Profit/(loss) for the year attributable to |          1,864 |          (460) |            780 |          1,462 | 
| the equity holders of the Company          |                |                |                |                | 
+--------------------------------------------+----------------+----------------+----------------+----------------+ 
 
 
+--------------------------------------------+----------+------------+----------+----------+ 
|                                            |    pence |      pence |    pence |    pence | 
+--------------------------------------------+----------+------------+----------+----------+ 
| Basic earnings/(loss) per ordinary share   |     1.45 |     (0.36) |     0.60 |     1.13 | 
+--------------------------------------------+----------+------------+----------+----------+ 
 
 
6. Dividend paid and proposed 
+------------------------------------------------------------+--------+--------+ 
|                                                            |   2008 |   2007 | 
+------------------------------------------------------------+--------+--------+ 
|                                                            | GBP000 | GBP000 | 
+------------------------------------------------------------+--------+--------+ 
| Declared and paid during the year                          |        |        | 
+------------------------------------------------------------+--------+--------+ 
| Equity dividends on ordinary shares:                       |        |        | 
+------------------------------------------------------------+--------+--------+ 
| Dividend for 2007 of 0.25p per share, paid in August 2008  |    324 |    323 | 
+------------------------------------------------------------+--------+--------+ 
 
 
A dividend for 2008 of 0.25p per share has been recommended for payment on 5 
August 2009. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 FR BLGDSUUDGGCX