Our portfolio continues to prosper in particular with our hotel and catering holdings.
IHG has been much in the news with the anticipated acquisition of Starwood by Marriott now agreed, after a failed last ditch attempt by a Chinese Group to increase the offer. Thus IHG remains independent but is now well behind Marriott and Hilton in size.Interest in the shares continues with the large anticipated special dividend due in May and another good year forecast.
We have increased our position in Accor which is now more pro active having absorbed Raffles and Fairmont into the group.
In catering Compass Group continues its steady growth in profits and share value with expansion of its customer base strong in North America.
In the building industry we have disposed of our holding in Gallifordtry, even though its results were good because its construction division is much involved in Scotland where economic activity is slowing and likely to get worse as the drive for independence grows with likely financial instability. In turn we have invested further in REDROW Plc with a soundly based customer base throughout England and Wales, and potential substantial profits expected in the next 2/3 years.

Pending the Referendum Vote in June we do not expect any major changes as all our holdings should continue to prosper whatever the outcome.

Our managed client business has had a record three months with increased business in Europe unlikely to be effected by political changes.In the past month I have visited leisure interests in France and Spain where business looks very encouraging on the back of tourism problems in Greece,Turkey and the Middle East.

A quick visit to San Sebastián confirmed to me that Spain's Basque Country now has the finest restaurants in Europe and in the Maria Christina Hotel a unique and superb operation within the Starwood Chain, which Marriott could not improve.