Results from just two of our holdings since August.

  GallifordTry produced another set of good figures and its order book continues to grow.
                   Sales increased by.     31%
                   Profit increased by.    24%
                   Dividend up by.     28%

And a forecast of yet another attractive dividend increase next year makes this a really good long term holding.

INTERCONTINENTAL HOTELS produced third quarter figures well up to expectations, with an increase in REVPAR of 4.8%,and following the Hong Kong and Paris sales, some 95% of revenue will now be fee income which should ensure a sound future profit base. The decision on the distribution of the surplus £900 million from asset sales is to be announced in February.

Following the decisions of the CEOs of both IHG and Compass to join other Boards, viz Marks and Spencer's and Tesco, we have made our additional new investments in the Hotel and Catering Industry in Accor Group Hotels and in Sodexo, both of which are excellent businesses where the CEO is fully committed to managing their companies and not dissipating their time with non executive appointments.
Accor a French company is one of the world's largest hotel groups trading primarily as Sofitel -Novotel-Ibis -Mercure and MGallery and is a broader friendly tourist based business with a strong presence in French orientated countries and in LatinAmerica, as compared with IHG.
Sodexo is also a French company, similar and in competition with Compass and has worldwide interests. Here in England its catering contracts include ASCOT- RHS Hampton Court -Bateaux Mouches Thames cruises and major public companies and it is a particularly customer friendly business. We also like its contribution to education and constructive development in the 50 + countries in which it operates.

Looking ahead to the end of the year and our portfolio, we have an interim statement from Persimmon which should more than live up to expectations, and AGM's at Redrow and Gallifordtry which should be encouraging, followed by a trading statement from TaylorWimpey, and then the final figures from Compass on November 26th.