REG-Lon.Fin.&Inv.Grp.: Annual Financial Report <Origin Href="QuoteRef">LFI.L</Origin>

London Finance & InvestmentAnnouncement

07/11/2016 13:05

Lon.Fin.&Inv.Grp.

Annual Financial Report

London Finance & Investment Group P.L.C.  (‘Lonfin’ or the ‘Company’)

Annual Report and Accounts and Annual General Meeting

The Company announces that, in accordance with Listing Rule 9.6.1., the
following documents have today been submitted to the UK Listing Authority and
will shortly be available for inspection via the National Storage Mechanism at
www.hemscott.com/nsm.do:
* Annual Report and Accounts for the year ended 30(th) June 2016 (‘the
Annual Report and Accounts 2016’);
* Notice of Annual General Meeting (included within the Annual Report and
Accounts 2016) of the Company to be held at 11.00 am on 30(th) November 2016
at 6 Middle Street, London EC1A 7JA; and
* Form of Proxy for the 2016 Annual General Meeting (included within the
Annual Report and Accounts 2016).
The above documents have been posted to shareholders. The Annual Report and
Accounts 2016 and Notice of Annual General Meeting are also available on the
website of City Group P.L.C., the Company Secretary, at www.city-group.com.

The Company's financial statements and information on important events that
have occurred during the financial year and their impact on the financial
statements were included in the Company’s preliminary announcement released
on 30(th) September 2016.  That information, together with the information
set out below, extracted from the Annual Report and Accounts 2016, constitutes
the material required by Disclosure and Transparency Rule 6.3.5. which is to
be communicated to the media in full unedited text through a Regulatory
Information Service.  This announcement is not a substitute for reading the
full Annual Report and Accounts 2016.  Page and note references in the text
below refer to page numbers and notes in the Annual Report and Accounts 2016.

Appendix

Business Environment, Financial Instruments & Principal Risks and
Uncertainties

The financial instruments of the Group, in addition to its investments,
comprise cash and borrowings to finance those investments.

As an investment company our principal risks and uncertainties arise from the
Group’s financial instruments, and are:

Stock market volatility and economic uncertainty

The Company’s investment performance will be affected by general economic
and market conditions. Although the Company cannot predict the level of growth
in the global economy, as with most businesses, it believes a period of weak
market growth will have an adverse effect on its investments. Volatility
relating to the Company’s investments, including movements in interest rates
and returns from equity and other investments will impact upon the value of
the Group’s investment portfolio.

Possible volatility of share prices of investments

A number of factors outside the control of the Company may impact the share
price performance of its investments. Such factors could include investor
sentiment, local and international stock market conditions, divergence of
results from analysts’ expectations, changes in earnings estimates by
analysts and changes in political and economic sentiment.  Exchange rate
movements will contribute to the volatility of prices of foreign stocks.

Dividend income

The ability of the companies that we invest in to pay dividends to
shareholders depends upon their profitability, cash flow and the extent to
which, as a matter of law, they have sufficient distributable reserves from
which any proposed dividends may be paid and the willingness of the boards of
such companies to pay. There can be no guarantee that the companies we invest
in will be able to sustain their dividend policies in the future.

Ability to make strategic investments

There are limited opportunities for the Company to make strategic investments
and therefore there is no guarantee that the Company will be able to do so at
a price the directors believes will represent fair value.

Liquidity of equity investments in strategic investments

Strategic investments may be made in the equity of “small cap” companies,
both listed and unlisted. There is a risk that due to the low level of
liquidity in the equity of these strategic investments the Company may not be
able to realise its investment, either at all, or at a price the Company
believes reflects fair value.

The depth and overlap of experience of directors means that there is no
key-man dependency.  Note 20 on page 26 sets out the policies of the Board,
which have remained substantially unchanged for the year under review, for
managing risks associated with its financial instruments.

In addition, the Company is exposed to investment risk arising from the
selection of investments which it mitigates by drawing on the investment
experience of its directors.

The Board does not consider that there is any further information relating to
environmental matters, employees, social, community and human rights issues
that it is necessary to report for an understanding of the development,
performance or position of the Company’s business.

Related Party Disclosures

Lonfin and its wholly owned subsidiary, Lonfin Investments Limited, owns 43.8%
of its associated company, Western Selection PLC (‘Western’), of which Mr.
D.C. Marshall, Mr L.H. Marshall, Mr. J. M. Robotham and Mr. E.J Beale are
directors.  Mr. D.C. Marshall and Mr. J. M. Robotham's shareholdings in
Lonfin are set out in the accompanying Directors’ Report.

Lonfin and Western hold shares in Finsbury Food Group Plc and Northbridge
Industrial Services Plc respectively.  Mr. D.C. Marshall is a director of
Northbridge Industrial Services plc and Mr. E. J. Beale is a director of
Finsbury Food Group Plc.

Mr. D. C. Marshall and Mr. L. H. Marshall are directors and Mr. E.J. Beale is
the non-executive Chairman of Marshall Monteagle PLC and Mr D. C. Marshall and
Mr J. M. Robotham are shareholders in Marshall Monteagle PLC which in turn is
a substantial shareholder in Halogen Holdings PLC.  Mr. D. C. Marshall is
Chairman of Halogen Holdings PLC and Mr L. H. Marshall and Mr. E. J. Beale are
directors of Halogen Holdings PLC.

Lonfin and Western own City Group PLC (‘City Group’) in the ratio 51.4%
and 48.6% respectively.  City Group provides offices and company secretarial
and administrative services to various companies in the UK and abroad most of
which are associated with Lonfin and Western including all of the above
companies.

City Group operates as a shared service centre and does not seek to make a
profit from the provision of its standard services to these related parties. 
The various company secretarial, accounting, and directors’ fees received by
City Group from those companies, their associates and subsidiaries, total
£255,000 (2015 - £204,000) for the year under review.  At the reporting
date the aggregate balance due in respect of fees invoiced was £85,000 (2015
- £194,000) and no fees have been paid in advance (2015 - nil). Settlement is
within normal credit terms.

As disclosed in Notes 12 and 13, the Company was owed £6,000 from City Group
on current account and it owed City Group £45,000 for fees.  The Company was
also owed £3,758,000 by Lonfin Investments Limited as disclosed in Note 10.

Other than as disclosed above, no director was interested in any contract
between the directors, the Company and any other related party that subsisted
during or at the end of the financial year.

Statement of Directors’ Responsibilities in Respect of the Accounts

As set out above, the following responsibility statement is repeated here
solely for the purpose of complying with Disclosure and Transparency Rule
6.3.5. This statement relates to and is extracted from page 37 of the Annual
Report and Accounts 2016. Responsibility is for the full Annual Report and
Accounts 2016 not the extracted information presented in this announcement or
the preliminary announcement released on 30(th) September 2016.

The directors are responsible for preparing the Directors’ Report and the
financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each
financial year.  Under that law the directors have elected to prepare the
financial statements in accordance with International Financial Reporting
Standards (IFRSs) as adopted by the European Union.  Under company law the
directors must not approve the financial statements unless they are satisfied
that they give a true and fair view of the state of affairs of the Company and
of the profit or loss of the Company for that period.

In preparing these financial statements, the directors are required to:
* select suitable accounting policies and then apply them consistently;
* make judgements and accounting estimates that are reasonable and prudent;
* prepare financial statements in accordance with IFRSs as adopted by the
European Union       subject to any material departures disclosed and
explained in the financial statements;
* prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company’s transactions and disclose with
reasonable accuracy at any time the financial position of the Company and
enable them to ensure that the financial statements comply with the Companies
Act 2006.  They are also responsible for safeguarding the assets of the
Company and hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.

Each of the directors whose names and functions are listed on page 1 confirms
that to the best of each person’s knowledge and belief:
* the financial statements, prepared in accordance with IFRSs as adopted by
the EU, give a true and fair view of the assets, liabilities, financial
position and profit of the Group and the Company; and
* the Directors’ Report contained in the Annual Report includes a fair
review of the development and performance of the business and the position of
the Group and the Company, together with a description of the principle risks
and uncertainties that they face.
* Considers that the Annual Report, taken as a whole, is fair, balanced and
understandable and provides the information necessary for shareholders to
assess the Company’s performance, business model and strategy.
Enquiries to:

London Finance & Investment Group
P.L.C.:                    020 7796 9060



Copyright (c) 2016 PR Newswire Association,LLC. All Rights Reserved