- Full Year Results

During a meeting of the Board of Directors held on 13 January, the preliminary profit statement for the year ended 31 October 2003 was approved. During the period the company registered a loss on ordinary activities before tax of Lm361,113 (2002: Lm309,179). The loss per share dropped from 2c to 3.6c. Shareholders' funds as at 31 October 2004 amounted to Lm3.6 million resulting in a net asset value per share of 35.7c.

Turnover for the year amounted to Lm2.2 million down from Lm2.5 million in 2002. Revenue per available room declined by 12% to Lm13.11. The weak demand led to further pressure on room rates. Efforts made to source more business from the UK market gave positive results. The company's food and beverage activities gave satisfactory returns. Trading conditions continue to test management as the climiate becomes more and more competitive.

The Directors expect that the 2004 financial year will not be an exception. The Directors foresee that the return of the company to profitability cannot rely only on the recovery of the leisure travel segment. Mindful of the need to exploit the full potential of the company's assets, the Board has approved a plan to convert a number of guest rooms into timeshare apartments over a three-year period. The Directors intend to use the profits from the sale of the timeshare apartments to creat a sinking fund for the redemption of the company's listed debt securities in 2007.

The Board of Directors is not proposing the payment of a dividend. The Annual General Meeting is scheduled for 18 March 2004.

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