Santumas Shareholdings Plc

Interim / Quarterly Report • Dec 30, 2014

Santumas Shareholdings plc

Amalgamated with Marsascala Development Limited, Santumas Contractors Limited and Calpabrin Properties (Investments) Limited

Britannia House 1, 9 Old Bakery Street, Valletta VLT 1450, Malta G.C. Telephones: (+356) 2123 1492 · 2125 0345 · 2122 1074 · Fax: (+356) 2123 9279 E-mail: santumas@maltanet.net · Web: www.santumasmalta.com

COMPANY ANNOUNCEMENT

The following is a Company Announcement issued by Santumas Shareholdings plc pursuant to the Malta Financial Services Authority Listing Rules.

Quote

During a meeting held on the 29th December 2014, the Board of Directors of Santumas Shareholdings plc approved the attached Interim Unaudited Financial Statements for the six months ended 31st October 2014.

The Interim Unaudited Financial Statements for the period ended 3185 October 2014 are also available for viewing on the company's website "www.santumasmalta.com".

Unquote

Michael Formosa Gauci Company Secretary

29th December 2014

Company Registration No .: C 35

SANTUMAS SHAREHOLDINGS PLC

Interim Report and Interim Financial Statements (unaudited)

31 October 2014

CONTENTS

	Pages
Directors and company information	2-3
Directors' report	4-5
Interim statement of comprehensive income	6
Interim statement of financial position	7
Interim statement of changes in equity	8
Interim statement of cash flows	ਹੈ
Notes to the interim financial statements	10 - 30

Supplementary Statements

	Statement number
Operating account
Investments	0119
Analysis of company portfolio	III
Key figures and ratios	IV

DIRECTORS AND COMPANY INFORMATION

REGISTRATION

Santumas Shareholdings ple was registered as a public limited liability company under the Companies Act, Cap. 386 of the Laws of Malta on 24 December 1997, with company registration number C35. The Company held a Collective Investment Scheme license from the Malta Financial Services Authority in terms of the Investment Services Act, 1994 until 9 October 2014. As at this date, the company has surrendered its license as a collective investment scheme (CIS) and de-listed its shares on the Malla Stock exchange as a CIS. On the same date Santumas Shareholding plc was admitted to listing on the Malta Stock Exchange as a Property Company.

DIRECTORS

Dr. Edward Firman, B.A., M.B.A., F.C.M.A., M.B.I.M., C.P.A. "La Encantada," Mons. E. Debono Street, Kappara, MALTA

Mr. Peter Paul Testaferrata Moroni Viani 19, J. Howard Street, San Pawl tat-Targa, MALTA

Chev. Anthony Demajo OCC. 41, G'Mangia Hill, Pieta, MALTA

Mr. Christopher Testaferrata Moroni Viani Villa Ammermann, Mdina Road, Balzan, MALTA.

Mr. Norbert Tabone (appointed 4 July 2014) ·Jeanor', Triq Nerik Xerri, Kirkop, MALTA

SECRETARY

Mr. Michael Formosa Gauci, B.A. (Acc.) Bus. Manag. T6F10 Favray Court, Tigne Point, Sliema, MALTA

REGISTERED OFFICE

Britannia House/1, 9, Old Bakery Street, Valletta, MALTA

AUDITORS

Ernst & Young Malta Limited Certified Public Accountants Regional Business Centre Achille Ferris Street Msida MSD 1751 MALTA

STOCKBROKERS

Rizzo Farrugia &Co. (Stockbrokers) Ltd Airways House. Third Floor, High Street, Sliema, MALTA

DIRECTORS AND COMPANY INFORMATION - continued

LEGAL ADVISORS

Dr. Rene Frendo Randon & Associates 222, Merchants Street Valletta. MALTA

Camilleri Preziosi Advocates Level 3, Valletta Buildings South Street, Valletta MALTA

BANKERS

HSBC Bank Malta plc 166. Archbishop Street Valletta VLT 1444 MALTA

AUDIT COMMITTEE

Dr. Edward Firman, B.A., M.B.A., F.C.M.A., M.B.I.M., C.P.A. "La Encantada," Mons. E. Debono Street, Kappara, MAI.TA

Chev. Anthony Demajo OCC. 41, G'Mangia Hill, Pieta, MALTA

Mr. Norbert Tabone (appointed 4 July 2014) ·Jeanor', Triq Nerik Xerri, Kirkop, MALTA

BACKGROUND

The Company was formed as the Malta New Issues Investment Co. Limited on 29 April 1963. The Company's name was changed on 11 May 1965 to Malta Shareholdings Limited when the Company was converted to a public company with the objects of carrying on the business of a finance trust in all branches. The name was changed again on 29 September 1978 to Santumas Shareholdings Limited. The Company's objects also provided for property development, with the main property development being the Santumas Estate at Marsascala.

Calpabrin Properties (Investments) Limited merged into Santumas Shareholdings Limited on 2 April 1987 and Marsascala Development Limited and Santumas Contractors Limited merged into Santumas Shareholdings Limited on 15 December 1989.

On 9 May 1996 the Company was licensed as a Collective Investment Scheme under the Investment Services Act, 1994 by the Malta Financial Services Centre. The Company was registered as a public limited liability company under the Companies Act, Cap. 386 of the Laws of Malta on 24 December 1997 thereby changing its name to Santumas Shareholdings plc.

On 12 December 2003 the Company's shares were accepted for listing on the Malta Stock Exchange.

On 9 October 2014. the company has surrendered its license as a collective investment scheme (CIS) and de-listed its shares on the Malta Stock Exchange as a CIS. On the same date, Santumas sharcholding plc was admitted to listing on the Malta Stock Exchange as a Property Company.

Bank of Valletta ple Republic Street Valletta MALTA

DIRECTORS' REPORT

The directors submit their report and financial statements for the six-month period ended 31 October 2014.

Results and dividends

The accounts presented to you are not audited as is the norm for an interim set of accounts. The interim statement of comprehensive income is set out on page 6.

The profit before tax for the six-month period to 31 October 2014 was EUR91,616 as compared to a profit of EUR198,871 for the corresponding period in 2013. There was a tax charge for the six months of EUR44.961 (2013: EUR42,500). The profit for the six-month period to 31 October 2014 was therefore EUR46,65 as against a profit of EUR156,371 for the six month period to 31 October 2013. The profit for the period was negatively impacted by costs related to the delisting and relisting of the Company on the Malta Stock Exchange involving a non- recurring charge of approximately EUR 70.000.

Property

There has been no movement on the property portfolio over the six months. The conversion works on the Paceville property have been taken in hand which will allow the premises to be split into two independent commercial outlets.

Portfolio

The period under review has seen a positive fair value movement of EUR 28,341 as compared to a positive fair value movement of EUR 100,079 for the corresponding period last year.

The level of investment income has made a positive contribution to the period with dividend income amounting to EUR87,659 as compared to EUR101,377 for the corresponding period in 2013. The company remains cautious in its approach to investment as markets continue to display a degree of uncertainty although estimates for local GDP growth do offer some cause for optimism. The Company continues to hold cash deposits on which it earns market rates of interest, which however it is ready to exploit as and when the opportunity arises.

Net asset value

At 31 October 2014 the Net Assel Value per share of the Company stood at EUR4.010; as adjusted for a 1 for 10 bonus issue in September 2014. As at 30th April 2014 the Net Asset Value per share stood at EUR4.383 though if adjusted for the bonus issue this would have stood at EUR3.985. Thus on a like for like basis the NAV has seen a marginal increase of EUR0.025c since April 2014.

This contrasts with the share price of EUR2.2 in October 2014; the shares as at the end of November 2014 are trading at EUR2 per share.

DIRECTORS' REPORT - continued

Malta Stock Exchange

Trading in company shares on the local market remained thin as has been the case since admission to the official list of the Malta Stock Exchange on 12 December 2003. The share price continues to lag behind the Net Asset Value, a situation not unusual. As at 30 November 2014 the Company's shares are trading at a 50.13% (April 2014: 54.33%) discount to net asset value.

Directors

The directors for the six months to 31 October 2014 were listed on page 2.

Risk warning

The company is not a normal trading, manufacturing or Services Company, but it has a number of assets that are not immediately realisable. As a consequence the price of its shares and the income (if any) there from can go down as well as up and investors may not realize the amount of their initial investment. Past performance is no guide to future performance.

The directors' report was approved by the Board of Directors and signed on its behalf by:

Chev. Anthony Demajo Director

29 December 2014

Ir. C. Testaferrata Moroni Viani Director

INTERIM STATEMENT OF COMPREHENSIVE INCOME

	Notes	Six months to 31 October 2014 BUR	Six months to 31 October 2013 EUR
REVENUE
Investment income	4	190,483	156.782
Increase in fair values of financial assets	13	28,341	100,079
Total revenue		218,824	256,861
EXPENSES
Administrative expenses	6	126,976	57.628
Finance costs	5	232	362
Total expenses		127,208	57.990
Profit before tax		91,616	198.871
Income tax expense	8	(44,961)	(42.500)
Profit for the period		46,655	156.371
Total comprehensive income for the period		46,655	156,371
Profit per share	9	0.027	0.092

The accounting policies and explanatory notes on pages 10 to 30 form an integral part of the financial statements.

INTERIM STATEMENT OF FINANCIAL POSITION

as at 31 October 2014

	Notes	31 October 2014 EUR unaudited	30 April 2014 EUR
ASSIBITS
Non-current assets
Investment properties	-11	3,090,592	3.097.200
Property, plant and equipment	12	93,465	95.800
Financial assets at fair value through profit or loss	13	3,966,110	3.918.368
		7,150,167	7,111,368
Current assets
Receivables	14	46,573	61,608
Cash at bank	15	732,480	681.486
		779.053	743.094
TOTAL ASSETS		7,929,220	7,854,462
EQUITY AND LIABILITIES
Capital and reserves
Issued capital	16	1,007,444	969.704
Share premium	17	262,746	262.746
Revaluation reserve	17	50,563	51,213
Dividend reserve	17
Other reserves	17	2,695,060	2,672,324
Retained carnings	17	3,329,840	3.343.011
		7,345,653	7,298,998
Non-current liabilities
Deferred tax liability	18	362,684	362.418
Current liabilities
Interest-bearing borrowings	19		19.491
Payables	20 1	207,511	163,133
Income tax payable		13,372	10,422
		220,883	193.046
Total liabilities		583,567	555.464
TOTAL EQUITY AND LIABILITIES		7,929,220	7.854.462
Net asset value per share	21	4.010	4.383

The accounting policies and explanatory notes on pages 10 to 30 form an integral part of the financial statements.

The financial statements on pages 6 to 30 were authorised for issue by the board of directors on 29 December 2014 and signed on its behalf by!

Chev. Anthony Demajo Director

Mr. C. Testaferrata Moroni Viani Director

INTERIM STATEMENT OF CHANGES IN EQUITY

	Issued capital a BUIR	Share premium EUR	Revaluation reserve DUR	reserves BUR	Other Dividend reserve POLITIC	Retained earnings FUR	Total Bur
FINANCIAL PERIOD ENDED 31 October 2014
At I May 2014	969,704	262,746		51,213 2.672,324		3,343,011	7,298,998
Total comprehensive income for the period						46,655	46.655
Re-denomination of shares (note 16)	(53,857)		91,597			(37,740)
Bonus issue (note 16)	91.597		(91,597)
Increase in fair value of financial assets				28,341		(28.341)
Decrease in the fair value of ground rents				(5,605)		5,605
Depreciation transfer for land and buildings, net of deferred tax			(650)			650
Financial period ended at 31 October 2014	1,007,444	262,746	50,563	2,695,060	-	3,329,840 7,345,653
FINANCIAL PERIOD ENDED 31 October 2013
	969 704	262.746		51,356 2,288,451	100,000	3,149,339 6,821,596
for the period						156,371	156,371
					(100,000)	-	(100,000)
						2,487	2,487
At I May 2013 Total comprehensive income Dividend distributed Unclaimed dividend forfeited Increase in fair value of financial assets				73,509	-	(73,509)
Increase in fair value of investment property				ਹੈਤੇ		(93)
Depreciation transfer for land and buildings, net of deferred tax			635			(635)

The accounting policies and explanatory notes on pages 10 to 30 form an integral part of the financial statements.

8

INTERIM STATEMENT OF CASH FLOWS

	Six months to	Six months to
Notes	31 October 2014	31 October 2013
	EUR	EUR
	91,616	198,871
12		2,319
13		(100.079)
1100		(106)
ਦੇ		362
4		(18,320)
		14,232
	44,251	16,389
		(38,270)
		57,158
	15,339	17,963
	90,118	150.519
	(19,401)	(104,728)
	(19,401)	(104.728)
		(100,000)
		(362)
	(232)	(100,362)
	70,485	(54.571)
ા ર	661,995	1.005.039
115	732,480	950,468
	5 ਦੇ	2,335 (28,341) 6,608 232 (16,121) 15,817 (41,618) (232)

The accounting policies and explanatory notes on pages 10 to 30 form an integral part of the financial statements.

NOTES TO THE INTERIM FINANCIAL STATEMBNIS

CORPORATE INFORMATION 119

Santumas Sharcholdings plc is a public limited company incorporated and domiciled in Malta whose shares are publicly traded.

On 9 October 2014, the company has surrendered its license as a collective investment scheme (C15) and delisted its shares on the Malta Stock Exchange as a CIS. On the same date, Santumas shareholding ple was admitted to listing on the Malta Stock Exchange as a Property Company.

2. BASIS OF PREPARATION

The unaudited interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU).

The unaudited interim financial statements are prepared under the historical cost convention, except for leasehold property under property, plant and equipment, investment properties and financial assess at fair value through profit and loss that have been measured at fair value.

Statement of compliance

These financial statements are prepared in accordance with International Financial Reporting Standards as adopted for use in the European Union and comply with the Companies Act, Cap. 386 of the Laws of Malta.

3.1 CHANGES IN ACCOUNTING POLICIES

Standards, interpretations and amendments to published standards as endorsed by the European Union which are effective in the current year

The accounting policies adopted are consistent with those of the previous financial year, except for the following amendments to IFRS effective as of 1 May 2014.

• · IFRS 10 Consolidated financial statements (as endorsed by the EU with delayed effective date for financial years beginning on or after 1 January 2014)
• · IFRS 11 Joint Arrangements (as endorsed by the EU with delayed effective date for linancial years beginning on or after 1 January 2014)
• · IFRS 12 Disclosures of interests in other entities (as endorsed by the FU with delayed effective date for financial years beginning on or after 1 January 2014)
• IAS 27 Revised Separate financial statements (as endorsed by the EU with delayed effective date for financial years beginning on or after 1 January 2014)
• · IAS 28 Revised Investments in associates and joint ventures (as endorsed by the EU with delayed effective date for financial years beginning on or after 1 January 2014)
• · IAS 32 Amendments Financial Instruments Presentation Offsetting of financial assets and financial liabilities presentation (effective for financial years beginning on or after 1 January 2014)
• · IAS 36 Amendments Recoverable Amount Disclosures for Non-Financial Assets (effective for financial years beginning on or after 1 January 2014)
• IAS 39 Amendments Novation of Derivatives and Continuation of Hedge Accounting (as effective . date for financial years beginning on or after 1 January 2014)
• · IFRS 10, IFRS 12, and IAS 27 Amendments Investment Entities (effective for financial years beginning on or after 1 January 2014)
• · IFRS 10, IFRS 11, and IFRS 12 Amendments Transition Guidance (effective for financial years beginning on or after 1 January 2014)
• · IFRIC Interpretation 21 Levies (effective for financial years beginning on or after 1 January 2014)

3.1 CHANGES IN ACCOUNTING POLICIES - continued

Standards, interpretations and amendments that are not yet adopted by the EU

• · IAS 27 Amendments Equity method in separate financial statements (effective for financial years beginning on or after 1 January 2016)
• · IAS 16 and IAS 41 Bearer Plants (effective for financial years beginning on or after 1 January 2016)
• · IAS 16 and IAS 38 Clarification of acceptable methods of depreciation (effective for financial years beginning on or after 1 January 2016)
• · IFRS 9 Financial instruments (effective for financial years beginning on or after 1 January 2018)
• · IFRS 7 Amendment Disclosure for initial application of IFRS 9 (effective for financial years beginning on or after 1 January 2015)
• · IFRS 11 Amendment Accounting for acquisitions of interests in joint operations (effective for financial years beginning on or after 1 January 2016)
• IFRS 14 Regulatory deferral accounts (effective for financial years beginning on or after 1 January 2016)
• IAS 19 Amendments Defined benefit plans: Employee contributions (effective for financial years beginning on or after 1 January 2014)
• · IFRS 15 Revenue from contracts with customers (effective for financial years beginning on or after I January 2017)
• · IFRS 10 and IAS 28 Amendments Sale or contributions of assets between an investor and its associate or joint venture (effective for financial years beginning on or after 1 January 2016)
• · Annual Improvements to IFRSs 2010-2012 Cycle
• Annual Improvements to IFRSs 2011-2013 Cycle
• Annual Improvements to IFRSs 2012-2014 Cycle

Except as explained below, the changes resulting from these standards are not expected to have a material effect on the financial statements of the Company:

IFRS 9. · Financial Instruments' introduces a logical approach for the classification of financial assets driven by cash flow characteristics and the business model in which an asset is held. The new model also results in a single impairment model being applied to all financial instruments. As part of IFRS 9 the IASB has introduced a new, expected loss impairment model that will require more timely recognition of expected credit losses. Specifically, the new Slandard requires entities to account for expected credit losses from when financial instruments are first recognised and it lowers the threshold for recognition of full lifetime expected losses. IFRS 9 also introduces a substantially-reformed model for hedge accounting with enhanced disclosures about risk management activity. The new model represents a substantial overhaul of hedge accounting that aligns the accounting treatment with risk management activities. The standard is effective for periods beginning on or after I January 2018. The Company will assess the effect that the standard will have on the financial statements in due course.

3.2 SUMMARY OF SICNIFICANT ACCOUNTING POLICIES

The significant accounting policies used in the preparation of these financial statements are set out below:

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue is reliably measured. The following specific revenue criteria must also be met before revenue is recognised:

Investment income

Interest income is included in the statement of comprehensive income on an accruals basis using the effective interest rate method that is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument to the net carrying amount of the financial asset.

Ground rents and other rents are included in the statement of comprehensive income on an accrual basis. Dividend income is included in the statement of comprehensive income when the right to receive the payment is established.

Upon disposal of investment properties consisting of land, leasehold property and ground rents capitalised, the difference between the proceeds from disposal and the carrying amount is recognised as a gain or loss through the statement of comprehensive income.

Taxes

Current income tax

Current income tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date.

Deferred income tax

Deferred taxation is provided using the liability method, on temporary differences, at the reporting date, arising between the tax bases of assets and liabilities and their carrying values for financial reporting purposes. Deferred income tax liabilities are recognised for all laxable temporary differences, except:

• · where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination, and at the time of transaction, affects neither the accounting profit nor taxable profit or loss; and
• · in respect of taxable temporary differences associated with investments in subsidiaries and an associate, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foresccable future.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantially enacted at the reporting date.

Under this method the Company is required to make provision for deferred income taxes on the revaluation of certain non-current assets. Such deferred tax is charged or credited directly to the statement of comprehensive income, and is charged or credited directly to equity if the tax relates to items that are eredited or charged in the same or a different period, directly to equity.

Deferred tax assets are recognised only to the extent that future taxable profit will be available such that realisation of the related tax benefit is probable.

3.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Foreign currency translation

The financial statements are presented in Euro, which is the Company's functional and presentation currency. Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the finctional currency rate of exchange ruling at the year-end date. All differences are taken to the statement of comprehensive income. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

Investment properties consisting of land, buildings and leasehold property

Investment properties, consisting of properties not occupied by the Company and held to earn rentals and for capital appreciation, are regarded as long term investments.

All investments are measured initially at cost, being the consideration given, including acquisition charges associated with the investment. The carrying amount includes the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria are met; and excludes the costs of day servicing of an investment property. Subsequent to initial recognition, investment properties are stated at fair value, which reflects market conditions at the year-end date. This is based on market valuations performed by independent professional architects every two years or earlier whenever their fair values differ materially from their carrying amounts. In the year when a market valuation is not performed, an assessment of the fair value is performed to reflect market conditions at the year-end date. Gains or losses on changes in the fair values of investment properties are taken to the statement of comprehensive income in accordance with IAS 40 "Investment Properties". Unrealised gains are subsequently transferred to other reserves in accordance with the requirements of the Companies Act, Cap. 386 of the Laws of Malta.

Investment properties are derecognised when either they have been disposed of or when the investment. property is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of an investment property are recognised in the statement of comprehensive income in the year of retirement or disposal.

Investment properties consisting of ground rents capitalised

On 30 April 1990, the directors capitalised ground rent. The value of this asset was included with long term assets with a resultant increase in the capitalisation reserves. Up to 30 April 2001. ground rents were revalued in the financial statements after capitalising the net annual amount receivable at 8% per annum. As from the year ended 30 April 2002, the capitalisation rate was changed to 5% per annum. The capitalisation rate reflects the fair value of the capitalised ground rent.

Property, plant and equipment

Property, plant and equipment are initially recorded at cost. Leasehold property is subsequently measured at fair value less depreciation and impairment. All other property, plant and equipment, are subsequently stated at cost amounts less accumulated depreciation and accumulated impairment in value, if any.

Leasehold premises consists of property that is occupied by the Company as its offices.

3.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Property, plant and equipment - continued

It is Company policy to carry out regular professional market valuation of leasehold which is frequently enough to ensure that the fair value of the revalued asset does not differ materially from its carrying amount. To the extent that a revaluation results in an increase in the asset, the increase is credited to the revaluation reserve within equity. To the extent that a revaluation results in a decrease in the carrying amount of the asset, the decrease is charged against the revaluation reserve to the extent that the decrease does not exceed the amount held in the revaluation reserve in respect of that same asset, any excess of the decrease is taken to the statement of comprehensive income. The accumulated depreciation at the date of the revaluation is climinated against the gross carrying amount of the asset and the net amount restated to the revalued amount of the asset.

Depreciation of property, plant and equipment

Depreciation is provided on property, plant and equipment, other than leasehold property, at rates calculated to write off the cost, less estimated residual value based on prices prevailing at the date of acquisition, of each asset on a straight line basis over the expected useful life,

The annual rates used for this purpose are:

	0/0
Fixtures and fittings	15
Equipment	33.3
Improvements to premises	10

Depreciation is provided on leasehold property to write off the valuation on a straight line basis over the remaining period of the lease.

Each year, the difference between the depreciation based on the revalued carrying amount of the assel (the depreciation charged to the statement of comprehensive income) and depreciation based s original cost, is transferred from the revaluation reserve to retained earnings.

Impairment of non-financial assets

The Company assesses at each reporting date whether there are indications of impairment for all nonfinancial assets. If any such amount exists, or when impairment testing for an assel is required, the Company makes an estimate of the asset's recoverable amount. Where the carrying amount of an asset exceds its recoverable amount, the asset is considered impaired and is written down to the recoverable amount.

Investments and other financial assets

Financial assets within the scope of IAS 39 are classified as financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, or available-for-sale linancial assets, as appropriate. When financial assets are recognised initially, they are measured at fair value, plus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs.

The Company determines the classification of its financial assets on initial recognition and, where allowed and appropriate, re-evaluates this designation at each financial year end. The Company classifies its financial assets as fair value through profit or loss and loans and receivables. The Company does not hold financial assets classified as held-to-maturity and available-for-sale.

3.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Investments and other financial assets - continued

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss includes financial assets held for trading and financial assets designated upon initial recognition as at fair value through profit or loss.

Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term. Derivatives, including separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments or a financial guarantee contract. Gains or losses on investments held for trading are recognised in the statement of comprehensive income.

The Company assesses whether embedded derivatives are required to be separated from host contracts when the Company first becomes party to the contract. Reassessment only occurs if there is a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required.

Receivables

Receivables are recognised and carried at original invoice amount less an allowance for any uncollectible amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable.

Receivables are recognized and carried at cost.

Frir value

The fair value of investments that are actively traded in organised financial markets is determined by reference to quoted market bid prices at the close of business on the reporting date. For investments where there is no active market, fair value is determined using valuation techniques include using recent arm's length market transactions; reference to the current market value of another instrument which is substantially the same; discounted cash flow analysis or other valuation models.

Impairment of financial assets

The Company assesses at each reporting date whether a financial assel or group of financial assets is impaired.

Assets carried at amortised cost

If there is objective evidence that an impairment loss on assets carried at amortised cost has been incurred. the amount of the loss is measured as the difference between the assel's carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not been incurred) discounted at the financial asset s original effective interest rate (i.e. the effective interest rate computed at initial recognition). The carrying amount of the asset is reduced through use of an allowance account. The amount of the loss shall be recognised in the Statement of Comprehensive Income.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the imparment was recognised, the previously recognised impairment loss is reversed, to the extent that the carrying value of the asset does not exceed its amortised cost at the reversal date. Any subsequent reversal of an impairment loss is recognized in the Statement of Comprehensive Income.

In relation to trade receivables, a provision for impairment is objective evidence (such as the probability of insolvency or significant financial difficulties of the debtor) that the Company will not be able to collect all of the amounts due under the original terms of the carrying amount of the receivable is reduced through use of an allowance account. Impaired debts are derecognised when they are assessed as uncollectible.

3.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Cash and cash equivalents

Cash and cash equivalents are composed of cash at bank and short term deposits. For the purposes of the statement of cash flows, cash and cash equivalents consist of cash equivalents, as defined above, net of outstanding bank overdrafts.

Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount reported in the statements of financial position when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously.

Trade and settlement date accounting

All "regular way" purchases and sales of financial assets are recognised on the "trade date," that is, the date the Company commits to purchase or sell the asset. Regular way purchases and sales are purchases and sales of financial assets that require delivery of assets within the frame generally established by regulation or convention in the market place.

Provisions

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the obligation can be made.

Contingent liabilities and contingent assets are not recognised. A contingent liability is disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. A contingent asset is disclosed where an inflow of economic benefits is probable.

Borrowing costs

Borrowing costs are recognised as an expense in the period in which they are incurred.

Employee benefits

The Company contributes towards the State pension in accordance with local legislation. Short-term employee benefit obligations are measured on undiscounted basis and recognised as an expense in the statement of comprehensive income in the period they are incurred.

Events after the reporting date

Events after the reporting date are those events, favourable, that occur between the reporting date and the date when the financial statements are authorised for issue. Adjusting events require the Company to adjust the amounts recognised in its financial statements while non-adjusting events do not require any adjustments to the amounts recognised in the financial statements.

3.3 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

In preparing the financial statements, the directors are required to make judgments, estimates and assumptions that affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgment are inherent in the formation of estimates. Actual results in the future could differ from such estimates and the differences may be material to the financial statements. These estimates are reviewed on a regular basis and if a change is needed, it is accounted in the period the changes become known.

3.3 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS - continued

The most significant judgements and estimates are as follows:

Revaluation of property, plant and equipment and investment properties

The Company carries its investment properties at fair value, with changes in fair value being recognised in the income statement. In addition, it measures land and buildings at revalued amounts with changes in fair value being recognised in other comprehensive income. This is based on market valuations performed by independent professional architects every two years. In the year when market valuations are not performed by the independent professional architect, an assessment of the fair value of investment properties consisting of land and building is performed to reflect market conditions at the year-end date. The last market valuation was performed in April 2014.

In the opinion of the management, except for the accounting estimates, assumptions and judgments made in the course of preparing these financial statements are not difficult, subjective or complex to a degree which would warrant their description as significant in terms of the requirements of IAS 1 (revised) -* Presentation of Financial Statements'

INVESTMENT INCOME 4.

	Six months to	Six months to
	31 October 2014	31 October 2013
	BUR	EUR
Dividends	87.659	101.377
Interest income	16,121	18.320
Ground rents	16.703	17.415
Other income	70.000	19.670
	190,483	156.782

5 FINANCE COSTS

	Six months to ETR	Six months to 31 October 2014 31 October 2013 Eiur
Interest on bank overdrafts	232	362

NOTES TO THE INTERIM FINANCIAL STATEMENTS - continued

6. EXPENSES BY NATURE

	Six months to 31 October 2014	Six months to 31 October 2013
	BUR	FUR
Staff costs (note 7a)	20.497	18.967
Auditors' remuneration	3,596	6.496
Depreciation of property, plant and equipment (note 12)	2,335	2.319
(Gain)/loss on exchange	744	(708)
Custodian fees	3.483	3.494
Professional fees (note i)	74.785	8.440
Other expenses	21.536	18,620
Total administrative expenses	126,976	57.628

i. Professional fees include costs relating to the surrender of the collective investment scheme (CIS) licence, the de-listing from a CIS and listing as a property company.

7. EMPLOYEE INFORMATION

a) Staff costs

The total employment costs were as follows:

	Six months to 31 October 2014	Six months to 31 October 2013
	BUR	EUR
Salaries	19,243	17,748
Social security costs	1.254	1.219
	20.497	18.967

b) Staff numbers

The average number of persons employed by the Company during the period was as follows:

	Six months to 31 October 2014 31 October 2013 Number	Six months to Number
Administration	2	2

8. INCOME TAX EXPENSE

Major components of income tax expense for the periods ended 31 October 2014 and 2013 are:

Six months to 31 October 2014	Six months to 31 October 2013
EUR	EUR
44,568	42.433
393	67
44.961	42.500

The income tax on profit differs from the theoretical income tax expense that would apply on the Company's profit before tax using the applicable tax rate in Malta of 35% (2013; 35%) as follows:

	Six months to 31 October 2014 COR	Six months to 31 October 2013 EUR
Profit before tax	91.616	198.871
Theoretical tax expense at 35%	32,066	69.605
Tax effect of:
income subject to lower tax rate	(18,993)	(3.687)
Gains not subject to tax	(10,930)	(35.028)
- expenses not deductible for tax purposes	41,597	13,541
- investment income not subject to further tax	(1,649)	(1931)
other differences	2,870
Income tax expense	44,961	42.500

9. PROFIT PER SHARE

The profit per share of 9.39 cents (2013: 18.27 cents) is calculated on the profit after taxation attributable to the ordinary shareholders, divided by the average number of ordinary shares in issue and ranking for dividend during the period.

	Six months to 31 October 2014 BOUT	Six months to 31 October 2013 BUR
Profit for the period	46,655	156,371
	31 October 2014 Number	31 October 2013 Number*
Average number of ordinary shares in issue	1,697,028	1,697.028
	Six months to 31 October 2014 cents	Six months to 31 October 2013 cents*
Profit per share	2.75	9.24

* The average number of ordinary shares and the profit per share were revised in line with the increase in share capital by way of a bonus issue (note 16).

10. DIVIDENDS PAID

	Six months to 31 October 2014 BUR	Six months to 31 October 2013 EUR
Dividends declared and paid		100.000

11. INVESTMENT PROPERTIES

Land and buildings EUR	capitalisation ાં કરી નર	Total EUR
1.836.586	619.574	2.456.160
313.676		313.676
327.638	(274)	327,364
2.477.900	619.300	3.097.200
	(6.608)	(6.608)
2,477,900	612,692	3,090,592
		Ground rents

11. INVESTMENT PROPERTIES - continued

a. Land and building

Fair value

An independent valuation of the Company's investment property land and buildings was performed by valuers to determine the fair value as at 30 April 2014. The fair value movements were credited to profit and loss and are presented within Revaluations.

The Company's investment property land and buildings consists mainly of plots of land with a carying amount of EUR2,075,100 together with other commercial buildings with a carrying amount of EUR402,800. The investment property has been categorised to fall within level 2 of the fair valuation hierarchy. The different levels in the fair value hierarchy have been defined in Note 13.

The Company's policy is to recognise transfers into and out of fair value hierarchy levels as of the date of the event or change in circumstances that caused the transfer. There were no transfers between levels during the year. For all properties, their current use equates to the highest and best use.

Valuation techniques and inputs

For level 2 fair value of the investment property land and buildings, the valuation was determined primarily by the comparable method together with the capitalisation method which are based on directly on observable inputs which do not require a significant level of adjustments.

	Comparable method EUR	Capitalisation method EUR	l otal EUR
Plots of land	2,075,100		2.075.100
Commercial buildings	62.800	340.000	402.800
	2,137,900	340.000	2,477,900

Comparable method: Market prices

based on database of valuations and sales of properties in the relevant area;

Capitalisation method: Future rental cash inflows

based on the actual location, type and quality of the properties and external evidence such as current market rents for similar properties: based on actual location, size and quality of the properties and taking into account market data at the valuation date.

b. Ground rents

Capitalisation rates

Ground rents on property are received annually into perpetuity. Property, on which ground rent is receivable, may also have ground rent payable. Ground rent income relates to ground rent capitalisation.

These ground rents are redeemable and the ground rent capitalisation represents the redemption amount. The valuation of ground rents is determined by the capitalisation method, as explained for land and buildings. The capitalisation rate is however determined by reference to local legislation.

No redemption took place during the year.

NOTES TO THE FINANCIAL STATEMENTS - continued

12. PROPERTY, PLANT AND EQUIPMENT

	Leasehold buildings and improvements EUR	Fixtures fittings & equipment EUR	Total EUR
Cost or valuation
At 1 May 2013	109.043	35.479	144,522
Revaluation	1,280		1,280
Transfer (*)	(2,089)		(2.089)
At 30 April 2014	108.234	35.479	143.713
Additions
At 31 October 2014	108,234	35,479	143,713
Depreciation
At 1 May 2013	9.885	35.479	45,364
Charge for the year	4.638		4,638
Transfer (*)	(2.089)		(2,089)
At 30 April 2014	12.434	35.479	47.913
Charge for the period	2.335		2.335
At 30 October 2014	14,769	35.479	50,248
Net book value
At 30 October 2014	93,465		93,465
At 30 April 2014	95.800		95-800

* This transfer relates to the accumulated depreciation as at the revaluation date that was eliminated against the gross carrying amount of the revalued asset.

Leasehold buildings were acquired in the financial year ended 30 April 1993 at a cost of EUR34,097. The remaining life of the lease is 39 years.

Subsequently these leasehold buildings were revalued in April 2014 at EUR95,800. An independent valuation of the leasehold buildings was performed by same valuers for investment property land and building. The valuation for this commercial building was determined by the comparable method. It has been categorised to fall within level 2 of the fair valuation hierarchy. There were no transfers between levels during the year. The different levels in the fair value hierarchy have been defined in Note 13.

Had leasehold buildings not been included in the financial statements at revaluation less accumulated depreciation, the carrying amount at 30 April 2014, based on cost less accumulated depreciation charged on cost. would have been EUR21,317 (April 2014: EUR21,601).

Fully depreciated fixtures, fittings and equipment are still in use.

13. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets at fair value through profit or loss include financial assess designated upon initial recognition as at fair value through profit or loss. This designation results in more relevant information because this group of financial assets is managed and its performance is evaluated on a fair value basis.

	31 October 2014 EUR	30 April 2014 EUR
Non-current
	3,966,110	3.918.368
The table below analyses the nature of the financial assets:
	31 October 2014	30 April 2014
	EUR	EUR
Equity securities	2,088,131	1.987.449
Bonds	507,005	471,108
Managed funds	1,370,974	1,459,811
	3,966,110	3,918,368
Fair values a.
	31 October 2014	30 April 2014

Local	EUIR	EUR
Quoted on the Malta Stock Exchange	3,934,329	3.888.929
Unquoted	31,781	29.439
	3,966,110	3.918.368

Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair values are observable, either directly or indirectly

Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.

	I otal FUR	Level I EUR	Level 2 Port
Fair value as at 31 October 2014	3,966,110	3,934,329	31,781
Fair value as at 30 April 2014	3.918.368	3.888.929	29.439

NOTES TO THE INTERIM FINANCIAL STATEMENTS - continued

13. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS - continued

b. Acquisition costs

	31 October 2014 BUR	30 April 2014 EUR
Local
Quoted on the Malta Stock Exchange	3,916,867	3.897,466
Unquoted	16,894	16.894
	3,933,761	3,914,360
Fair value movements: C.
	Six months to	Six months to
	31 October 2014	31 October 2013
	EUR	EUR
Local
Quoted on the Malta Stock Exchange	25,999	100.079
Unquoted	2,342
	28,341	100.079
14. RECEIVABLES
	31 October 2014	30 April 2014

Bill R	EUR
29,374	27.542
	16.476
10,706	5.711
6.493	11.879
46,573	61.608

i. Ground rents are received annually and are non-interest bearing. Ground rents receivable are past due but not impaired. The ageing analysis is as follows:

		Past due but not impaired
	Total	< Vear	1-2 years	2-5 years	>5 years
31 October 2014	29,374	11,484	2.564	7.311	8.015
30 April 2014	27,542	7.849	4.437	5.699	9.557

15. CASH AND CASH EQUIVALENTS

Cash and cash equivalents included in the statement of cash flows comprise the following statement of financial position amounts:

I Diuir 732,480	EUIR 681.486 (19.491)
752.480	661.995
31 October 2014	30 April 2014
1 Di Onlik	EUR
2,329,372	2,329,372
1,007,444	969.704

On 24 September 2014, the shareholders resolved to approve the re-denomination of the nominal value of the share capital from EUR0.582343 to EUR0.55 per share resulting in share capital of EUR53.857. The company also issued 166,540 ordinary shares of EUR0.55 by way of a bonus issue resulting in an increase of EUR91,597.

17. RESERVES

16.

Share premium

The share premium account represents the excess over the nominal value of proceeds from the issue of shares in the Company's capital at a value above nominal value. This reserve is not available for distribution.

Revaluation reserve

This reserve arises from the revaluation of leasehold property. This reserve is not available for distribution.

Other reserves

Other reserves represent unrealised gains on investment properties, and increase in fair values of financial assets that are not available for distribution.

Dividend reserve

The dividend reserve represents dividends proposed which have not been recognised as a liability at the reporting date.

18. DEFERRED TAX LIABILITY

The liability for deferred tax for the period/year is analysed as follows:

31 October 2014	30 April 2014
BUIR	EUR
362,418	323.275
(127)	38.989
393	154
362,684	362.418

Deferred income taxes are calculated on all temporary differences under the liability method using a principal tax rate of 35% and capital gains tax of 12%. Deferred income tax as at period/year end relates to the following:

	31 October 2014 DUR	30 April 2014 EUR
Revaluation of leasehold property	9.802	9.929
Revaluation of investment properties	351,908	351,632
Interest receivable	974	857
	362,684	362.418

Subsequent to the reporting period, a different tax treatment on the transfer of immovable property, had been announced.

19. INTEREST-BEARING BORROWINGS

	31 October 2014	30 April 2014
	TE UR	EUR
Bank overdraft (note 15)		19.491

As at end of April 2014, the Company had a bank overdraft facility amounting to EUR427,000 for the purposes of working capital finance, including portfolio investment, and small autonomous disbursements. The bank finance was secured by a cash pledge of EUR444,580 held with the same bank, Upon the surrender of the Collective Investment Scheme license, the company did not renew the banking facility.

Interest was charged at the rate of 1.25% per annum over the banks' base rate. The average rates of interest on the Company's borrowings were 3.5%

PAYABLES 20.

31 October 2014 BUR	30 April 2014 EUR
90,926	88.006
56,495	17,174
60.090	57.953
207,511	163.133

i. Ground rents are paid annually and are non-interest bearing. Ground rents are settled upon receipt of claim.

21. NET ASSET VALUE PER ORDINARY SHARE

The net asset value per share is calculated by dividing the net asset value by the number of ordinary shares in issue. During the period under review, the net asset value per share has decreased from EUR4.383 to EUR4.010. The reduction was the result of the capitalisation of reserves during the period (note 16). If the net asset value per share in 2013 had to be adjusted for the bonus issue. it would have stood at EUR3.985.

22. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's principal financial liabilities are composed of interest-bearing borrowings and payables. The main purpose of these financial liabilities is to raise finance for the Company's operations. The Company has various financial assets such as financial assets at fair value through profit and loss, receivables and cash at bank, which arise directly from its operations.

The Company did not enter into derivative transactions. It is, and has been throughout the year, the Company's policy that no trading in derivatives shall be undertaken.

The main risks arising from the Company's financial instruments are credit risk, liquidity risk and market risk (which is composed of foreign exchange currency risk, interest rate risk and equity price risk). The board of directors reviews and agrees policies for managing each of these risks which are summarised below.

Credit risk

Credit risk is the risk that counterparty will not meet its obligation under a financial instrument leading to a financial loss. The Company is exposed to credit risk from its operating activities primarily from investments classified as fair value through profit or loss, receivables and deposits with banks.

The Company trades only with recognised, creditworthy third parties. Credit risk relating to financial assets is addressed through careful selection of the issuers of securities bought by the Company. The Company obtains expert technical advice from its stockbrokers and monitors the markets for changes in the credit status of companies in which securities are held.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in notes 13, 14 and 15. The directors are of the opinion that these amounts are recoverable in full. Cash at bank are placed with quality financial institutions. Other than ground rents receivable, mentioned in the following paragraph, none of the financial assets are neither past due nor impaired. Therefore, the Company has no significant concentration of credit risk.

NOTES TO THE INTERIM FINANCIAL STATEMENTS - continued

22. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES - continued

Credit risk - continued

No provisions have been made against ground rent receivables since the Company is entitled to enforce these amounts on the basis of contracts on which the property giving rise to the ground rents is available as a security.

The Company's exposure to concentration of risk as at 30 October 2014, arising from financial instruments exceeding 10% of the Net Asset Value of the Company with the same counterparty, amounted to EUR1,370,975 (18.7% of NAV), EUR1,031,547 (14.0% of NAV), and EUR1,138,955 (15.5% of NAV). As at 30 April 2014 these exposures amounted to EUR1,459,811 (20.0% of NAV), EUR1,108,901 (15.2% of NAV), and EUR1,025,779 (14.1% of NAV).

Liquidity risk

Liquidity risk is the risk that the Company will be unable to meet its payment obligations when they fall due. The Company monitors its risk to a shortage of funds using a recurring liquidity planning tool. This tool considers the maturity of its financial liabilities and projected cash flows from operations.

The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of interest-bearing borrowings and payables.

Market risk

Market risk is the risk that the fair value of financial assets will fluctuate due to changes in the market variables such as exchange rates, interest rates and equity prices.

Foreign exchange currency risk

The Company has sterling denominated cash in bank equivalent to EUR2,449 (April 2014: EUR2,334) and transactional currency exposures arising from its US dollar denominated financial assets at fair value through profit or loss with a carrying amount equivalent to EUR62,802 (April 2014: EUR43,401). The Company monitors movements in the currencies in which these assets are held although they do not significantly affect the Company's statement of financial position.

Interest rate risk

The bank overdrafts are subject to rates of interest determined by the banks, which may be revised at the banks' discretion depending on movements in banks' base rates. The Company's favourable bank balances earn interest at rates determined by the banks. In view of the Company's marginal net cash and cash equivalents, the amount of interest rates risk is not considered to be significant.

The Company's financial assels are not significantly influenced by changes in interest rates since most holdings are equity and managed funds. A reasonably possible change in interest rates is not expected to have a significant effect on the fair value of fixed interest rate bonds.

Equity price risk

Equity price risk is the risk that the fair values of equities decrease as the result of changes in the levels of equity indices and the value of individual stocks.

22. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES - continued

The effect on the statement of comprehensive income (as a result of a change in the fair value of equity instruments held at fair value through profit or loss at 31 October and 30 April) due to a reasonably possible change in the Malta Stock Exchange index, with all other variables held constant is as follows:

	Change in equity price	Effect on profit before tax
	0/0	EUR '000
31 October 2014	4/-4	167/(167)
31 October 2013	3/-3	134/(134)

Fair values

At 31 October 2014 and 30 April 2014, the carrying amounts of financial assets at fair value through profit or loss, cash at bank, receivables, interest-bearing borrowings and payables approximated their fair values.

Capital management

The primary objective of the Company's capital management is to ensure that it maintains healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust capital structure, the Company may adjust dividend payments to shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during the period ended 31 October 2014 and year ended 30 April 2014.

23. SHAREHOLDINGS AS AT 31 OCTOBER 2014

As at 31 October 2014

Substantial direct interests

	Number of shares	Nominal value of shareholding EUR	Percentage shareholding 0/0
	649.696	357.333	35.5
	120.846	66.465	6.6
One Sixth (Investments) Limited	106.332	58.483	5.8
Ms Fabrizia Frendo Randon	95.888	52.738	5.2
	972.762	535.019	53.1
Shareholders number	Shareholders percentage	Shares number	Shares percentage
76	31.5		1.0
33			1.2
94	39.0	203.971	11:1
38	15.8	1.587.310	86.7
241	100.0	1.831.716	100.0
		13.7	17.572 22,863

NOTES TO THE INTERIM FINANCIAL STATEMENTS - continued

23. SHAREHOLDINGS AS AT 31 OCTOBER 2014-continued

As at 30 April 2014

Substantial direct interests

Shareholder		Number of shares	Nominal value of shareholding Totul R	Percentage shareholding 0/0
Mercury plc		590.633	343.951	35.5%
The heirs of Mr. I. J. Burridge		109,860	63,976	6.6%
One Sixth (Investments) Limited		96.665	56.292	5.8%
Ms. Fabrizia Frendo Randon		87.171	50.763	5.2%
		884.329	514.982	53.1%
Size of Shareholding	Shareholders number	Shareholders percentage	Shares number	Shares percentage
1 - 500	83	34.3%	19.458	1.2%
501 - 1,000	41	16.9%	32.012	1.9%
1,001 - 5.000	84	34.7%	194,155	11.7%
5.00 and over	34	14.1%	1,419,551	85.2%
	242	100.0%	1.665.176	100.0%

24. RELATED PARTY TRANSACTIONS

The Company did not enter into any material transactions with related parties.

25. CONTINGENT LIABILITY

The Company has received a notice from the Commissioner of Inland Revenue pursuant to the exemption order of 4 September 2010, in which notice it is allegedly indicated that a tax balance of EUR 155,516 is due. According to the Company's records, the amount claimed is under dispute in its entirety.

SUPPLEMENTARY STATEMENTS

	Statement
Operating account
Investments	=
Analysis of company portfolio	111
Key figures and ratios	IV

OPERATING ACCOUNT

	Six months to 31 October 2014 CUR	Six months to 31 October 2013 EUR
INVESTMENT INCOME
Dividends	87,659	101.377
Interest income	16,121	18,320
Ground rents	16,703	17.415
Other income	70,000	19.670
	190.483	156.782
ADMINISTRATIVE EXPENSES
Salaries and NI contributions	20,497	18.967
MFSA Collective Investment Scheme fees	3,000	2.500
Custodian fees	3,483	3.494
Malta Stock Exchange costs	93	278
Advertising and promotional expenses	4.441	4,489
Telecommunications	1,368	1,138
Water and electricity	726	502
Stationery and postages	1,081	1.085
Insurances	380	316
Professional and legal fees	74.785	8,440
Auditors' remuneration	3,596	6,496
Travelling expenses	3,484	3.584
Computer operating and leasing expenses	1,050	1.165
Annual registration fee	1,200	1,200
Sundry expenses	4,713	2.363
Depreciation of property, plant and equipment	2,335	2.319
Loss (gain) on exchange	744	(708)
	126,976	57,628
FINANCE COSTS	232	362
OPERATING PROFIT	63.275	98,792

Statement II

INVESTMENTS

LOCAL QUOTED

Banks Bank of Valletta Plc HSBC Bank Malta Plc FIMBank Plc

Investment funds Amalgamated Investments Sicav Plc

Government Malta Government Stocks

Telecommunications Loqus Holdings Plc GO Pic

Breweries and beverages Simonds Farsons Cisk Plc

Insurance Middlesea Insurance Plc

Marina services Grand Harbour Marina Plc

Airlines and airports Malta Int. Airport Plc

Postal services MaltaPost Plc

LOCAL UNQUOTED

Investment funds The Malta Development Fund Limited

Insurance Citadel Insurance Plc

ANALYSIS OF COMPANY PORTFOLIO

31 October 2014 Market 0/a value of Clir total Financial assets at fair value through profit and loss 1,498,467 20.96 1,387,315 19.40 304,680 4.26 326,294 4.56 1.38 98,532 149,631 2.09 0.18 13,020 1.96 139,800 0.68 48,371 3,966,110 55.47	Market value EUR 1,496,594 1,476,151 270,000 247,149 98,218 139 999 12,740 134,520 42.997 3,918,368	30 April 2014 0/0 of total 21.04 20.76 3.80 3.48 0.38 1.97 0.18 1.89 0.60 55.10	Market value FEUR 1,507,325 1,389,878 156,550 196,867 84,224 133,924 13,020 115,200 38,638 3,635,626	30 April 2013 0/0 of total 24.35 22.45 2.53 3.18 1.36 2.16 0.21 1.86 0.62 58.72
				22 00
				6.74
				0.93
				1001
93,465 1.31	95.800	1.34	99,158	1.60
44.53	3,193,000	44 90	2,555,318	41.28
100	7.111,368	100.00	6,190,944	100.00
1,966,700 62,800	27.51 6.27 0.88 8.57	1,966,700 448,400 62,800 619,300 9/0	27.66 6.31 0.88 8.71	1,361.928 417.205 57,453 619,574 31 October 2014 31 October 2013 30 April 2014 0/0

KEY FIGURES AND RATIOS

Six months to
31 October 2014	30 April 2014	30 April 2013
1,697,028	1.665.176	1.665.176
2.75	34 16	30.93
0.64%	7.79	7.55
4.01	4.38	4.10

Notes

• 11 Actual number of shares in issue.
• Earnings per share are computed by dividing the profit/loss for the period/year by the average number of 2 shares in issue.
• 3 Return on capital employed is calculated by dividing the profit/loss for the period/year by the shareholders' funds at the end of the year.
  • 4 Dividend cover is calculated by dividing the profit for the periodiyear by the dividends for the year.
  • 5 Dividend per share is computed by dividend paid during for the periodlyear by the average number of shares in issue.
• 6 Net asset value per share is computed by dividing the net assets by the average number of shares in issue.