Our portfolio has once again produced an excellent return in the past five months,
with increased profits and dividends. Capital Values are static pending the final
outcome of the Brexit negotiations, and a satisfactory conclusion should result
In further growth in all our holdings

REVIEW OF MAJOR HOLDINGS

Hotels and Catering
  Accor Group. SA
    Continues with its planned expansion as a broad based hotel/ leisure group
    with further acquisitions in Asia and Africa plus strategic investments with
    partners in South America and the United States.
    Profit for the six months rose to €291 million with a further €2179 million from
    asset disposal providing funds to continue major expansion. Profit for the full
    year is forecast at €700 million with a further dividend increase.

Intercontinental Hotels Plc
    Continues to grow but nothing inspiring here thus we have reduced our
    holding although this is a good business with increasing profits and dividends.

N H Hotels. SA
    Minor Hotels Group from Thailand bought a deal breaking 38% holding here
    which precluded other bidders and is to takeover this potentially very attractive
    group, thus we disposed of our holding.

Building and Construction

Persimmon Plc
   Sales, profits and dividends all continue to grow in this York based group which
   has the best profit margins in the industry, aided by subsidiaries producing timber
   frames, bricks and tiles.
   Profits for the six months to June increased by 13% and, with future sales orders
   already 6% ahead of last year, we expect a further profit and dividend increase
   in 2019 giving a yield of over 10%. The group trading names of Persimmon and
   Charles Church are well regarded nationally.
   Net cash funds now £1154 million. (£1109 million)

Taylorwimpey. Plc
   A similar sales and profits position to Persimmon with a high dividend yield. We
   have increased our holding here where the group includes a rapidly growing
   subsidiary in Spain.
   Net cash funds now £529 million (£429 million)

Redrow. Plc
  Based in Flint in North Wales, it has major developments in the outer London
  area and has grown rapidly based on a reputation for quality and efficiency.
  Profit in the year to June increased by 21% and dividend by 65% with the
  Group moving into a net cash position for the first time, and forecasting a
  further profit and dividend rise in 2019.

Media Interests
   These continue to expand with our omnichannel content creation business
   moving into new offices in Holborn and increasing both its client base and
   product range.
   Film and Television interests continue to grow with new offices acquired in
   Glasgow as an adjunct to its base at Battersea Studios in London.