GOWING BROS LIMITED — AGM Information 2007

Oct 10, 2007

G O W I N G S

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Investing Together for a Secure Future

Dear Shareholder

2007 Gowings AGM

Gowings’ 139[th] Annual General Meeting will be held at the same location as last year, being Doltone House on the upper deck of Jones Bay Wharf, 26 – 32 Pirrama Rd, Pyrmont, on Thursday 22 November 2007 at 10am. (Map overleaf). I have pleasure in inviting you to attend and enclose the Notice of Meeting, which lists the items for consideration or voting.

If you are attending, please bring this letter with you to assist registration.

If you are unable to attend, you are encouraged to complete the enclosed proxy form, which should be returned in the envelope provided or faxed to our share registry on 61 2 8235 8220 so that it is received by 12.00pm on Tuesday 20 November 2007.

Corporate shareholders will be required to complete the form “Appointment of Corporate Representative”, which may be obtained online at www.computershare.com.au (Investor Relations/Forms), or by contacting Computershare on 1300 855 080.

Annual Report

The Annual Report is expected to be available online at www.gowings.com during the week ending Friday 5 October. If you opted to receive a printed copy of the Annual Report, this will be sent separately at that time.

Shareholder Newsletters

The Results Commentary enclosed is the final newsletter which will automatically be sent to all shareholders by mail. In future, distribution will be via email, as advised in our letter of 28 August. If you wish to continue receiving newsletters, please email the name of your shareholding, contact name (if applicable), SRN/HIN and email address to info@gowings.com.

Yours faithfully

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Stephen Byers Company Secretary

GOWING BROS. LIMITED EST. 1868 ACN 000 010 471

SUITE 21, JONES BAY WHARF 26—32 PIRRAMA ROAD PYRMONT NSW 2009 TEL 61 2 9264 6321 FAX 61 2 9264 6240 www.gowings.com

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G O W I N G S

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Investing Together for a Secure Future

NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that the Annual General Meeting of Gowing Bros. Limited will be held at Doltone House, Jones Bay Wharf, 26 – 32 Pirrama Rd, Pyrmont, NSW 2009 on Thursday 22 November, 2007 at 10am.

The Explanatory Memorandum that accompanies and forms part of this Notice of Annual General meeting describes and explains in more detail the various matters set out below which are to be considered in the meeting.

ORDINARY BUSINESS

Item 1 Financial Statements & Reports

To receive and consider the Financial Statements and the Reports of the Directors and Auditors for the year ended 31 July 2007.

• Item 2

Remuneration Report

To consider and, if thought fit, pass the following resolution as a non-binding ordinary resolution:

“That the company’s Remuneration Report for the year ended 31 July, 2007 be adopted.”

Please note that the vote on this resolution is advisory only and does not bind the Directors or the Company.

Item 3 Election of Director

To consider and, if thought fit, pass the following resolution as an ordinary resolution:

“That Mr W. A. Salier, who retires by rotation in accordance with the company’s Constitution, being eligible and having offered himself for re-election, be re-elected a Director of the Company.”

EXPLANATION OF ORDINARY BUSINESS

A copy of the full Annual Report of the Company containing the Financial Report, Director’s Report and Auditor’s Report for the year ended 31 July, 2007 is expected to be available online at www.gowings.com during the week ending Friday 5 October and will be mailed separately at that time if a printed copy has been requested.

Explanation of Item 1

The Corporations Act 2001 (“Corporations Act”) requires the Financial Report, Director’s Report and Auditor’s Report to be laid before the meeting. There is no requirement in the Corporations Act or the Company’s Constitution for shareholders to vote on, approve or adopt these Reports. Shareholders will have a reasonable opportunity at the meeting to ask questions and make comments on these reports.

GOWING BROS. LIMITED EST. 1868 ACN 000 010 471

SUITE 21, JONES BAY WHARF 26—32 PIRRAMA ROAD PYRMONT NSW 2009 TEL 61 2 9264 6321 FAX 61 2 9264 6240 www.gowings.com

Explanation of Item 2

The Remuneration Report for the Company for the year ended 31 July, 2007 is set out in the Director’s Report in the section entitled “Remuneration Report”.

The report sets out the principles and the current arrangements for the remuneration of Directors and the executive management.

The Corporations Act requires that the Company in Annual General Meeting consider and vote on a resolution formally adopting the Remuneration Report. It should be noted that whatever resolution is passed in the meeting in respect of the Remuneration Report it shall have the effect of an advisory nature only and shall not be binding on the Directors or the Company.

Explanation of Item 3

In accordance with the Company’s Constitution a minimum of one-third of the Directors, being those longest in office since their last election, must retire from office at each Annual General Meeting. The retiring Directors may offer themselves for re-election if eligible. Accordingly, Mr W. A. Salier retires by rotation and being eligible offers himself for re-election.

Mr Salier has been a Director of Gowing Bros. since 1974 and Chairman since 1995. His association with the Gowing family and Gowing Bros. extends back over 37 years during which time he has witnessed and participated in the remarkable growth of the Company under the helm of Ted Gowing and John Gowing.

Mr Salier is a senior lawyer in Pigott Stinson, a long established Sydney law firm. He has practiced corporate law for 40 years and has advised major local and overseas corporations. He was for many years the examiner in company law for the Barristers and Solicitors Admission Board.

Mr Salier is a trustee/director of private foundations, estates, private trusts and companies with a combined portfolio exceeding $120 million.

Instructions on Voting by Proxy

• (i) A shareholder entitled to attend and vote is entitled to appoint not more than two (2) Proxies. (ii) When more than one (1) Proxy is appointed, each Proxy must be appointed to represent a specified proportion of the shareholder’s voting rights.

• (iii)

• A Proxy need not be a shareholder.

• (iv) The Proxy Form must be received at the registered office of the Company or its Registry not less than 46 hours before the appointed time of the meeting.

Questions for the Auditors

Questions for the Auditors must be received in writing at the above address a minimum of 5 days prior to the appointed time of the meeting and will be answered at the meeting.

By order of the Board:

JS Byers Secretary

All correspondence to: Computershare Investor Services Pty Limited, GPO Box 242, Melbourne Victoria 3001 Australia Enquiries (within Australia) 1300 855 080 (outside Australia) 61 3 9415 4000 Facsimile 61 3 9473 2118 www.computershare.com

000001 000 GOW MR JOHN SMITH 1 FLAT 123 123 SAMPLE STREET THE SAMPLE HILL SAMPLE ESTATE SAMPLEVILLE VIC 3030

Securityholder Reference Number (SRN)

I1234567890

I 1234567890 I ND

I/We being a member/s of Gowing Bros. Limited and entitled to attend and vote hereby appoint

or failing the individual or body corporate named, or if no individual or body corporate is named, the Chairman of the Meeting, as my/our proxy to act generally at the meeting on my/our behalf and to vote in accordance with the following directions (or if no directions have been given, as the proxy sees fit) at the Annual General Meeting of Gowing Bros. Limited to be held at Doltone House, Jones Bay Wharf, 26-32 Pirrama Rd, Pyrmont NSW on 22 November 2007 at 10.00am and at any adjournment of that meeting.

For Against Abstain*

2 That the Company's Remuneration Report for the year ended 31 July 2007, be adopted

3 That Mr W.A. Salier be re-elected as a Director of the Company

The Chairman of the Meeting intends to vote undirected proxies in favour of each item of business.

• If you mark the Abstain box for a particular item, you are directing your proxy not to vote on your behalf on a show of hands or on a poll and your votes will not be counted in computing the required majority on a poll.

In addition to signing the Proxy Form in the above box(es) please provide the information below in case we need to contact you.

G OW

1 3 P R

GOW_PROXY_182710/000001/000001/i

How to complete the Proxy Form

1 Your Address

This is your address as it appears on the company’s Share register. If this information is incorrect, please mark the box and make the correction on the form. Securityholders sponsored by a broker (in which case your reference number overleaf will commence with an ‘x’) should advise your broker of any changes. Please note, you cannot change ownership of your securities using this form.

2 Appointment of a Proxy

If you wish to appoint the Chairman of the Meeting as your proxy, mark the box. If the individual or body corporate you wish to appoint as your proxy is someone other than the Chairman of the Meeting please write the full name of that individual or body corporate in the space provided. If you leave this section blank, or your named proxy does not attend the meeting, the Chairman of the Meeting will be your proxy. A proxy need not be a securityholder of the company. Do not write the name of the issuer company or the registered securityholder in the space.

3 Votes on Items of Business

You may direct your proxy how to vote by placing a mark in one of the three boxes opposite each item of business. All your securities will be voted in accordance with such a direction unless you indicate only a portion of voting rights are to be voted on any item by inserting the percentage or number of securities you wish to vote in the appropriate box or boxes. If you do not mark any of the boxes on a given item, your proxy may vote as he or she chooses. If you mark more than one box on an item your vote on that item will be invalid.

4 Appointment of a Second Proxy

You are entitled to appoint up to two proxies to attend the meeting and vote on a poll. If you wish to appoint a second proxy, an additional Proxy Form may be obtained by telephoning the company's Share registry or you may copy this form.

To appoint a second proxy you must:

• (a) on each of the first Proxy Form and the second Proxy Form state the percentage of your voting rights or number of securities applicable to that form. If the appointments do not specify the percentage or number of votes that each proxy may exercise, each proxy may exercise half your votes. Fractions of votes will be disregarded.

• (b) return both forms together in the same envelope.

5 Signing Instructions

You must sign this form as follows in the spaces provided:

Individual: where the holding is in one name, the holder must sign.

Joint Holding: where the holding is in more than one name, all of the securityholders should sign.

Power of Attorney: to sign under Power of Attorney, you must have already lodged this document with the registry. If you have not previously lodged this document for notation, please attach a certified photocopy of the Power of Attorney to this form when you return it.

Companies: where the company has a Sole Director who is also the Sole Company Secretary, this form must be signed by that person. If the company (pursuant to section 204A of the Corporations Act 2001) does not have a Company Secretary, a Sole Director can also sign alone. Otherwise this form must be signed by a Director jointly with either another Director or a Company Secretary. Please indicate the office held by signing in the appropriate place.

If a representative of a corporate Securityholder or proxy is to attend the meeting the appropriate "Certificate of Appointment of Corporate Representative" should be produced prior to admission. A form of the certificate may be obtained from the company's Share registry or at www.computershare.com .

Lodgement of a Proxy

This Proxy Form (and any Power of Attorney under which it is signed) must be received at an address given below no later than 46 hours before the commencement of the meeting at 10.00am on 22 November 2007. Any Proxy Form received after that time will not be valid for the scheduled meeting.

Documents may be lodged:

IN PERSON Registered Office - Unit 21 26-32 Pirrama Road Pyrmont NSW 2009 Share Registry - Computershare Investor Services Pty Limited, Level 2, 60 Carrington Street, Sydney NSW 2000 Australia BY MAIL Registered Office - Unit 21 26-32 Pirrama Road Pyrmont NSW 2009 Share Registry - Computershare Investor Services Pty Limited, GPO Box 242, Melbourne VIC 3001 Australia BY FAX 61 3 9473 2118

Investing together for a secure future

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An Exce ptional Year

C o n t i n u i n g G r o w t h i n S h a r e h o l d e r W e a l t h

$3.16 $3.87 $4.71 $2.70 $2.98 $3.61 $4.27 $2.84 $2.59 $2.45 $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 2003 2004 2005 2006 2007 Gross Assets Per Share Net Assets After Providing for Tax on Unrealised Capital Gains Share Price The year ended 31 July 2007 was an exceptional year for our company. Gross assets per share grew by 24.3% to $4.71 as a result of strong appreciation in the underlying value of all asset classes. Gross assets grew to a milestone $201 million from $170 million in the prior year after the payment of $4.3 million in dividends and buying back $4.1 million of the company’s shares. The directors have declared a final dividend of 5c per share. In addition,a special dividend of 5c has also been declared following significant capital gains of $11 million realised during the year. Amount Franking Special 5c 100% fully franked LIC capital gains Final 5c 100% fully franked LIC capital gains Interim 5c 100% fully franked ordinary Total 15c Final Dividend plus Special Dividend	$3.16 $3.87 $4.71 $2.70 $2.98 $3.61 $4.27 $2.84 $2.59 $2.45 $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 2003 2004 2005 2006 2007 Gross Assets Per Share Net Assets After Providing for Tax on Unrealised Capital Gains Share Price The year ended 31 July 2007 was an exceptional year for our company. Gross assets per share grew by 24.3% to $4.71 as a result of strong appreciation in the underlying value of all asset classes. Gross assets grew to a milestone $201 million from $170 million in the prior year after the payment of $4.3 million in dividends and buying back $4.1 million of the company’s shares. The directors have declared a final dividend of 5c per share. In addition,a special dividend of 5c has also been declared following significant capital gains of $11 million realised during the year. Amount Franking Special 5c 100% fully franked LIC capital gains Final 5c 100% fully franked LIC capital gains Interim 5c 100% fully franked ordinary Total 15c Final Dividend plus Special Dividend	_ Before providing for tax on unrealised gains_ Shareholder Returns 1 Year 3 Year 5 Year Opening net assets per share $3.87 $2.84 $2.53 Closing net assets per share $4.71 $4.71 $4.71 Increase in net assets $0.84 $1.87 $2.18 Dividends paid $0.10 $0.27 $0.44 Total return $0.94 $2.14 $2.62 % Total Return 24.3% 75.4% 103.6% % Average Annual Return 24.3% 25.1% 20.7% Recurring Earnings Doubled*
		Income Statement 2007 2006
		$000 $000 %
		Interest income 2,599 1,216 114%
		Listed equities income 4,655 3,147 48%
		Private equities income 185 487 (62%)
		Investment property income 386 684 (44%)
		Operating expenses (2,249) (2,430) (7%)
		Interest expense (973) (786) 24%
		Recurring earnings 4,603 2,318 99%
		Realised capital gains
		Listed equities 5,829 83 6923%
		Private equities 5,139 - na
		Investment properties 176 18,965* (99%)
		Development properties 167 291 (43%)
		Other 165 796 (79%)
		Total realised capital gains 11,476 20,135 881%
		Unrealised gains – private equity 1,409 1,285 10%
		Unrealised gains – property 2,611 - na
		Net profit before tax 20,099 23,738 (15%)
	Final* 5c 100% fully franked LIC capital gains	Income tax (expense) credit (4,763) 1,778 (368%)
	Interim 5c 100% fully franked ordinary	Minority interest - 6 na
	Total 15c	Net profit after tax 15,336 25,522 (40%)

The directors have declared a final dividend of 5c per share. In addition, a special dividend of 5c has also been declared following significant capital gains of $11 million realised during the year.

Special*	5c	100% fully franked LIC capital gains
Final*	5c	100% fully franked LIC capital gains
Interim	5c	100% fully franked ordinary
Total	15c

* Prior year profit included one-off gain on sale of Market St property.

* Record date: 11 October 2007

Investing together for a secure future

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Diversified Investme nt Portfolio

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Listed
Equities
80%
2007: $201m
Cash
6% Property Private
5%
Equity
9%
Listed
Equities
58%
2006: $170m
Private
Cash Property Equity
34% 2% 6%
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Cash and Interest Bearing Securities ($12m)

Cash on hand and short term interest bearing securities represented 6% or $12 million of our total portfolio at year end. Cash balances reduced systematically during the year as new investments were made, predominantly in listed equities, and to a lesser extent in our managed private equity portfolio.

Post year end, the company increased its cash holdings by selling various fully priced listed equities. These funds will be redeployed selectively as value and stability reemerge in global markets.

P r o p e r t y I n v e s t m e n t s ( $ 1 1 m )

The company had gross property investments of $24.6 million or $11m after debt in various retail, commercial, industrial and residential properties.

Property investments are made on an opportunistic basis where higher returns can be generated relative to our listed equity portfolio. Property investments are generally made with joint venture partners where we can assume a relatively passive investment role.

Current year property investment highlights include:

Dundee Beach Tourist Park

The company purchased a freehold 26 acre tourist park on prime beachfront land located an hour south east of Darwin. During the year, a development approval was successfully obtained to allow for significant facility upgrades. Post year end, the company is considering a profitable sale of the property following a conditional offer being received.

Norton Street Leichhardt Retail Reconfiguration

The valuation of our joint venture Norton Street retail property increased 47% or $1.9 million following a significant tenant reconfiguration to maximise future rental yields. New tenants, including Westpac, were secured under favourable long term leases. The building’s occupancy rate is 100%. An expression of interest campaign is currently being run to evaluate the potential sale of the building.

Bong Bong Street Bowral Retail Development

The valuation of our joint venture Bong Bong Street retail property increased 17% or $0.6 million following development completion during the year. The building is near full occupancy on lease terms slightly better than our original forecast. An expression of interest campaign is also being run to determine its current value and sale potential.

Cash holdings will further increase if various investment properties currently being marketed are sold.

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L i s t e d E q u i t i e s ( $ 1 6 0 m )

The listed equity portfolio including Australian and international shares delivered a 29.2% return for the year ending 31 July 2007.

We continue to monitor emerging global trends which will drive significant shifts in future consumption, behaviour and economies.

International diversification assisted us to outperform the Australian market in the final quarter of the year.

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Consumer
Global Equties Discretionary
Resources 3% 9% Consumer Stap
17% 4%
Energy
Industrials 4%
12%
Health Care
4% Financials
47%
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Strong share price performances in our listed Australian portfolio include the following companies.

Company	Share Price Increase	Holding
Everest Babcock and Brown	177%	$1,270,115
Regional Express Holdings	84%	$522,000
West Australian Newspapers*	77%	$1,726,889
Aspen Group	73%	$2,838,712
Blackmores Limited	73%	$4,665,668
Vision Systems Limited*	71%	$1,501,569
Australian Agricultural Co	69%	$921,000
Alesco Corporation Limited	57%	$5,130,000
Harvey Norman Limited	54%	$2,380,500
Australian Stock Exchange	50%	$5,469,075
Babcock & Brown Limited	46%	$1,014,840
Fleetwood Corporation	46%	$961,611
Woolworths Limited	43%	$4,912,200
Macquarie Airports	42%	$1,311,000
Aditya Birla Minerals Limited	42%	$1,038,000
Rinker Group Limted*	41%	$1,558,502
Coffey International	40%	$1,003,718
Souls Private Equity Limited	39%	$1,250,000
Nomad Building Solutions	38%	$308,000
Invocare Limited	38%	$2,799,000
ARB Corporation Limited	34%	$2,125,000
Macquarie Bank	33%	$5,396,078
BHP Billiton Limited	33%	$17,366,061
WOTIF.COM Holdings	33%	$588,000
Lend Lease Corporation	31%	$465,750
Rural Press Limited*	31%	$1,797,922
Imdex Limited	30%	$300,000
Carlton Investments	30%	$4,354,835
Soul Pattinson & Co Limited	27%	$4,960,000
Hills Industries Limited	26%	$3,202,866
RIO Tinto Limited	25%	$6,701,760

Ideally we would prefer to invest in such trends through a leading Australian company. However, many industries are simply not well represented in Australia.

During the final quarter of the year, the company made 6 initial investments, which generated a 14% return over the 3 month period to year end. In particular, TomTom rose 46% and was sold post year end due to its significant rise in valuation and inherent uncertainty in global credit markets.

Company	Trend	Investment Thesis
Apple Inc, USA	Increasing	Leading the world in delivery of
	penetration of the	mobile digitisation.
	internet, convergence of technologies and digitisation of media,	Makes complex products cool and easy to use.
	entertainment and	Strong culture of innovation, brand,
	communication.	marketing, execution, strategy,
		vertical integration and
		management.
Archer Daniels	Increasing	Largest agribusiness company in the
Midland, USA	consumption of soft	world.
	commodities from developing nations and use of biofuels.	Strengths include strong management, significant intellectual property, vertical integration, barriers
		to entry, and economies of scale.
Deere & Co,	Rising commodity	Largest supplier of agricultural farm
USA	prices have increased	equipment in the world. Market share
	farm incomes. Farmers	is twice as large as CAT.
	are purchasing new and larger equipment to take advantage of	Growing market share and export sales.
	the up cycle.	Best brand, strong management,
		strong business model,
		financialisation, weak USD
		beneficiary, rising export sales.
Dairy Equities,	Rising incomes in	Provides exposure to Fonterra.
NZ	populous developing	Fonterra is a co-op owned by 11,000
	countries is increasing	NZ dairy farmers.
	the demand for milk products.	Fonterra controls 95% of NZ's milk supplies and accounts for 30% of the
		global export market.
Textron, USA	Rising personal and	Leading corporate jet manufacturer
	corporate wealth is	with 2 year backorder book (45% of
	increasing demand	earnings).
	for more efficient travel. Increasing airport security and administrative	Bell Helicopter in restructuring mode + benefiting from increasing military spend (25%).
	regulations is	Financialisation 15%.
	increasing travel times.	Strong mgt implementing 6-sigma philosophies.
TomTom, USA	Satnav penetration	Best positioned with leading
	increasing worldwide	products, highest R&D, highest
	as technology	market share and largest operational
	improves and costs	scale.
	are reduced.	Strong management strategically
		positioning company with proposed
		purchase of TeleAtlas Maps.

• Denotes sold during year

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Investing together for a secure future

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Managed Private Equities ($18m)

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Crescent Capital ANZ Business Equity
Fund I Fund
15% 13% AMP Fund III
12%
Macquarie Wholesale
Co-Investment Fund Macquarie European
19% Infrastructure Fund
9%
Everest Babcock &
Crescent Capital Brown Opportunity
Fund II Fund
27% 5%
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Investments in managed private equity accounted for 9% of our investment portfolio at year end. Gowings currently has $17.9 million invested across 6 different managers with further commitments of $8 million to be called.

Current year returns from our private equity portfolio have been the best on record and were fundamental in providing significant capital gains to pay the special dividend declared.

Key highlights are set out below;

– Crescent Capital Partial sale of interest in manager One of the earliest private equity investments made was as a founding investor in the manager of Crescent Capital for $350,000. We are pleased to report Gowings sold part of this investment during the year for $2.4 million. In addition, Gowings retains an interest in the manager for Crescent Fund’s I and II.

Crescent Fund II – 7 times realisation

Crescent Capital sold a mining services business during the year which accounted for approximately 12.2c in the dollar of the fund’s investments at cost. The proceeds from sale resulted in a distribution to Gowings of 90.3c or $3.6 million.

AMP Capital Fund III – 6 times realisation

Shortly after year end, AMP Capital sold a water business to Alesco which accounted for approximately 9c in the dollar of the fund’s investments at cost. The proceeds from sale resulted in a distribution to Gowings of 53c or $1.1 million received in August 2007.

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45%
39%
40%
35% 31% 31%
30%
25%
18% 19%
20%
15%
10%
5%
na na
0%
Annual Compound Return Since Inception (IRR)
AMP Fund III
Infrastructure Fund
ANZ Business Equity Fund Everest Babcock & Brown Opportunity Fund Crescent Capital Fund I Macquarie Wholesale Co- Investment Fund Crescent Capital Fund II Macquarie European
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* Investments in these funds are less than 12 months old and are carried at cost.

Gowings has been investing in managed private equity funds for approximately 10 years. In essence, Gowings acts as a fund-of-funds providing access to the best managers and diversification of underlying investments.

Our investment philosophy is to use our relationships to access managers with a unique advantage as follows:

Fund	Competitive Advantage
	Access to baby boomers that
AMP Fund III	have an association with AMP
	and require liquidity / exit.
ANZ Business Equity	Source deals through 400
Fund	business bank lenders
Crescent Capital	Small manager with strong origination capabilities
Everest Babcock & Brown Opportunity	Benefits from relationship with Babcock & Brown
Fund
Macquarie European Infrastructure Fund	First mover advantage having specialist infrastructure and
	operational expertise
Macquarie Wholesale Co-Investment Fund	Proven ability to selectively co- invest alongside various
	managers

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Investing together for a secure future

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Investment Philosophy - The Art of the Long View

Outlook and Market Update

The Gowings motto is “investing together for a secure future”.

As a long term investor, achieving secure long term returns is paramount for the company.

Following our year end, the Australian market along with all western and most Asian markets, experienced significant uncertainty after credit markets in America froze as difficulties emerged in the sub-prime home mortgage market.

The Gowing family started the company in 1868 and continues to use the company as its principal wealth creation and preservation vehicle.

The company, under 4 generations of the Gowing family, has prospered through 139 years of economic booms and busts, world wars and market crashes. The company’s origins were in retailing which soon led to significant property investments being made across Sydney’s CBD. At one stage, the Gowings Market Street building completed in 1929 was the tallest building in the city. Gowings has also had an early interest in equity investments being one of the founding investors in Woolworths. In the 1950’s, a significant re-allocation of capital was made into listed equities. Since then, listed equities have become the primary generator of wealth for our shareholders and currently represent 80% of our investment portfolio.

Investments continue to be made across different asset classes to take advantage of changing cycles and valuations. The decision to sell the Market Street building last year proved very timely given a large portion of the proceeds has gone on to earn another 24% during the current year.

The speed and severity of the resulting sell-off of marketable securities was unexpected by us and many other market participants. Precipitous falls in several of our strongest companies seemed to us unwarranted. The sell-off occurred during what was to become one of the strongest reporting seasons ever with exceptional results being delivered by BHP, Woolworths and Blackmores, to name a few.

Gowings believes the current investment outlook remains strong as characterised by the highest rate of global economic growth experienced in a century.

The current correction provided us with an impetus to strengthen the portfolio by selling several stocks we considered to be fully priced stocks. Our portfolio’s cash weighting post year end has increased to $27 million from $12 million at 31 July 2007. Gowings also has a $10m finance facility in place, which in addition to our current cash holdings, places the company in a strong position to buy quality companies on any further market weakness.

Through our network of existing and new relationships, we seek to make investments on a direct or wholesale basis where fundamentals are compelling. These relationships allow us to obtain access to select opportunities not available to the wider investment community or retail investors such as private equity, institutional placements and co-investments alongside private equity funds.