The Cayzer Trust Company Limited
Directors’ Report and Financial Statements
Year ended
Directors
Michael G Wyatt MBE (Chairman)
The Hon Charles Cayzer The Hon Mrs Gilmour Ian A Leeson MA FCA James MB Cayzer-Colvin William P Wyatt
Peter R Davies
Dominic V Gibbs MA ACA CTA Solicitor Secretary
Dominic V Gibbs MA ACA CTA Solicitor Registered Office
Cayzer House 30 Buckingham Gate London
SW1E 6NN
Directors’ report and financial statements
The directors present their report and the audited financial statements for the year to 31 March 2012. Results and dividends
The result for the year ended 31 March 2012, after taxation, amounted to a profit of £8.16m (2011 – loss £1.69m).
At the next Annual General meeting the directors intend to propose a final dividend of 4.0p per ordinary share, which, taken with the interim dividend of 2.0p paid on 1 June 2012, represents a total of 6.0p per ordinary share in respect of the year ended 31 March 2012. This represents an increase of 3.4% on the total dividends of 5.8p per ordinary share paid by the Company in respect of the year ended 31 March 2011.
Review of the business
The principal activity of the Company during the year continued to be that of a holding company. As at 31 March 2012, the Company’s principal investment was a 34.2% (2011 - 33.7%) interest in Caledonia, an approved investment trust. The market value of the holding in Caledonia at 31 March 2012 was £291.7m (2011 - £338.1m),
Other fixed and current asset investments, excluding short term deposits of £6.1m (2011 - £8.1m), had a market value of £31.7m as at 31 March 2012 (2011 - £28.6m).
Employee, community and social issues
The Company encourages its employees to develop their professional skills, and will invest in appropriate training and study support in the context of agreed programmes of professional development.
During the year political contributions of £15,000 (2011 - £15,000) were made to the Conservative Party. The Company also made charitable donations during the year amounting to £12,750 (2011 - £14,000).
Investment activity and future developments
Investment activity and future developments (continued)
The Company continues to maintain a portfolio of various international quoted companies drawn principally from large capitalisation stocks offering a relatively high dividend yield on which the Company does not have to pay tax. It is intended that this portfolio will be maintained for the long term, albeit that the Company has not resisted making realisations where its appraisal of market conditions has made this appropriate.
The Company continues in addition to hold smaller investments in AIM-listed and unquoted companies. The directors continue actively to review a number of other initiatives and notwithstanding that the Company is now relatively fully invested, the Company retains sufficient cash resources to exploit worthwhile buying opportunities in periods of market weakness.
Directors and their interests
The directors of the Company are listed above and all of the directors served throughout the year. In accordance with the articles of association, Michael Wyatt, The Hon Charles Cayzer, and James Cayzer-Colvin retired by rotation and, being eligible, offered themselves for election and were re-elected in December 2011.
Michael Wyatt will stand down as Chairman of the Company at the Company’s forthcoming Annual General Meeting and will be succeeded by The Hon Charles Cayzer.
Ian Leeson retires from the Company’s board by rotation at the Company’s Annual General Meeting and does not seek re-election. He joined the board in February 2001 during a period of some difficulty and tension in the Company’s affairs, and his sound judgement and patient good humour will be much missed.
The Hon Mrs Gilmour and Will Wyatt also retire from the Company’s board by rotation at the Company’s Annual General Meeting and, being eligible, offer themselves for re-election.
The board notes with sadness the death earlier this year of Sir James Cayzer, Bt., who served as a director of the Company for many years prior to his resignation in May 2001.
The interests of the directors and their families in the shares of the Company at 31 March 2012 are shown below. The holdings at 1 April 2011 are shown in brackets where any change has occurred during the year.
Ordinary 1p Shares Beneficial Non Beneficial
The Hon Charles Cayzer 3,783,504
680,601 1,425,326* – (1,617,917) James Cayzer-Colvin 16,595,212 24,667* Peter R Davies – 37,921,452* Dominic V Gibbs 29,054** 39,389,304* (37,695,245)
The Hon Mrs Gilmour 6,909,647** 11,591,795*
Ian A Leeson 1,287,300 –
Michael G Wyatt 1,343,664 3,584,462*
(4,662,462)
William P Wyatt 22,137,301 2,055,546*
Going Concern
The Company’s business activities, together with factors likely to affect its future development, financial position, and financial risk management objectives are described in the review of the business. The Company has considerable financial resources very significantly in excess of its liabilities. As a consequence, the directors believe the Company is well placed to manage its business risks. After considering the matter, the directors have concluded that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.
Disclosure of information to the auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information, being information needed by the auditor in connection with preparing its report, of which the auditor is unaware. Having made enquiries of fellow directors and the Company’s auditor, each director has taken all the steps that he is obliged to take as a director in order to make himself aware of any relevant audit information and to establish that the auditor is aware of that information.
Re-appointment of auditor
In accordance with Section 485 of the Companies Act 2006, a resolution is to be proposed at the Annual General Meeting for reappointment of Ernst & Young LLP as the auditor of the Company.
By order of the board D V Gibbs
Secretary
Statement of directors' responsibilities
The directors are responsible for preparing the Directors’ Report and the financial statements in accordance with applicable law and regulations.
Company Law requires directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 judgments and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, 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.
Independent auditors' report to the members of The Cayzer Trust Company
Limited
We have audited the financial statements of The Cayzer Trust Company Limited for the year ended 31 March 2012 which comprise the Profit and Loss Account, the Balance Sheet, the Cash Flow Statement and the related notes 1 to 18. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the Directors’ Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the financial statements of the The Cayzer Trust Company to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
In our opinion the financial statements:
give a true and fair view of the state of the Company’s affairs as at 31 March 2012 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or certain disclosures of directors’ remuneration specified by law are not made;
we have not received all the the information and explanations we require for our audit.
James Stuart (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor London
PROFIT AND LOSS ACCOUNT
for the year ended 31 March 2012
Note 2012 2011
£ £
Income from investments 2 8,286,205 2,793,592
Interest received 263,111 98,032
Fee and Other Income 256,330 273,837
Administrative Expenses 3 (678,543) (869,708)
Operating Profit 8,127,103 2,295,753
(Loss) / Profit on investment disposals (3,267,842) 645,167
Writeback of / (Increase in ) investment impairment 8 3,298,691 (4,626,996)
Profit / (Loss) on ordinary activities before taxation 8,157,952 (1,686,076)
Tax on profit on ordinary activities 5 — —
Profit / (Loss) on ordinary activities after taxation 14 8,157,952 (1,686,076)
Dividends paid 6 (7,325,463) (2,020,817)
Movement in Profit/Loss account for the year 832,489 (3,706,893)
The Company has no recognised gains or losses other than those recognised in the Profit and Loss Account above and therefore no separate Statement of Total Recognised Gains or Losses is presented.
All items in the above statement derive from continuing operations.
BALANCE SHEET at 31 March 2012 Note 2012 2011 £ £ Fixed assets Tangible assets 7 69,239 59,083 Investments 8 258,914,411 255,489,380 258,983,650 255,548,463 Current assets Debtors 9 677,625 709,369
Current asset investments 10 250,000 250,000
Cash at bank and in hand 11 5,856,974 8,090,967
6,784,599 9,050,336
Creditors
Amounts falling due within one year 12 (560,826) (183,865)
Net current assets 6,223,773 8,866,471
Total assets less current liabilities 265,207,423 264,414,934
Creditors
Amounts falling due after more than one year 12 (80,000) (120,000)
Net current assets 265,127,423 264,294,934
Capital and reserves
Called up share capital 13 1,263,011 1,263,011
Profit and loss account 263,864,412 263,031,923
Shareholders' funds 14 265,127,423 264,294,934
Approved by the Board on 19 September 2012
M G Wyatt
Director
D V Gibbs
Director
CASH FLOW STATEMENT
for the year ended 31 March 2012
Note 2012 2011
£ £
Operating profit 8,127,103 2,295,753
Non cash expenses 4,250 —
Decrease / (Increase) in investment income accruals (10,399) 41,219
Increase in interest accruals (76,623) (10,103)
Decrease / (Increase) in debtors 56,245 (17,655)
Decrease in creditors (77,603) (49,155)
Net cash inflow from operating activities 8,022,973 2,260,059
2012 2011
£ £
Net cash inflow from operating activities 8,022,973 2,260,059
Taxation — 148,379
Capital (expenditure) / income and investment 15 (2,931,503) 446,351
Equity dividends paid 6 (7,325,463) (2,020,817)
(Decrease) / Increase in cash and cash equivalents (2,233,993) 833,972
Reconciliation of net cash flows to movement in net funds for the year ended 31 March 2012
Note 2012 2011
£ £
Opening balance of cash and cash equivalents 8,090,967 7,256,995
(Decrease) / Increase in cash and cash equivalents (2,233,993) 833,972
Closing balance of net funds 11 5,856,974 8,090,967
NOTES TO THE FINANCIAL STATEMENTS
1. Accounting policies Accounting convention
The financial statements are prepared under the historical cost convention and in accordance with applicable accounting standards.
The Company is exempt from the requirement to prepare consolidated financial statements under section 405(2) of the Companies Act 2006, as the Company's subsidiary undertakings, taken together, are not material for the purpose of giving a true and fair view of the state of affairs of the Company. All subsidiary and associated undertakings are companies and are referred to as companies throughout these financial statements.
Investments
Investments are held in the balance sheet at cost less any amounts provided for permanent diminution in value. A provision for permanent diminution in value is recognised where the amount recoverable in respect of the investment is less than cost and the directors believe the reduction is permanent. The provision is
written back in the future to the extent that it is no longer necessary.
Note 8 discloses the market value of listed investments at the balance sheet date. For unlisted investments, note 8 discloses market value, where available, or the directors' valuation based on dealing prices, stockbrokers' valuations, net asset values or other information as appropriate.
Income
Dividends from associated companies are included in the profit and loss account on an ex-dividend basis. Dividends receivable from other equity shares are recognised as income when the shareholders' right to receive payment has been established, normally the ex-dividend date.
Interest income is included in the profit and loss account on an accruals basis.
Depreciation of tangible fixed assets
The provision for depreciation is calculated to write off the cost of each asset over its estimated useful life. Software is depreciated at 25% of cost on a straight line basis. No depreciation is provided on the artefacts.
Taxation
The charge for taxation is based on the profit for the year and takes into account taxation deferred because of timing differences between the treatment of certain items for accounting and taxation purposes.
Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more or a right to pay less or to receive more tax with the following exceptions:
1) Deferred tax assets are recognised only when, on the basis of available evidence, it is more likely than not that there will be taxable profits in the future against which the deferred tax asset can be offset. 2) No provision is made for tax on gains arising from valuation of investments except to the extent that, at
the balance sheet date, there is a binding agreement to dispose of the investments concerned.
Pension benefits
The Company participates in a multi-employer pension scheme which requires contributions to be made to a separately administered fund. Contributions to this fund are charged in the profit and loss account.
Provisions
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
2. Income from investments
2012 2011
£ £
Dividends from equity shares:
Listed UK:
Caledonia Investments plc 7,390,144 2,175,775
Other listed 890,576 600,379
8,280,720 2,776,154
Unlisted: 5,485 17,438
Total Income from investments 8,286,205 2,793,592
3. Administrative expenses
2012 2011
£ £
Staff and operating costs Note 4 (454,869) (685,405)
Audit fees (11,158) (10,893)
Other expenses (212,516) (173,410)
Total Administrative expenses (678,543) (869,708)
4. Staff costs
2012 2011
£ £
Salaries, bonuses and directors' fees (363,643) (376,335)
Phantom share options - exercised in year — (399)
Social security costs (41,994) (42,571)
Other pension costs (38,111) (40,978)
Pension Scheme Deficit — (200,000)
Other employee costs (11,121) (25,122)
Total Staff Costs (454,869) (685,405)
The average number of employees during the year was 5 (2011 - 6), which included a director.
Directors Remuneration
The total directors emoluments during the year amounted to £178,788 (2011 - £162,718).
During the year to 31 March 2012 certain employees were members of The Caledonia Pension Scheme ("the Scheme"), a defined benefits scheme. The Company is an associated employer within the Scheme and the contributions for the year amounted to £65,806 (2011 - £78,035).The Company is unable to identify its share of the underlying assets and liabilities and its participation in the Scheme is deemed for accounting purposes to be on a Defined Contribution Scheme.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
5. Taxation 2012 2011
£ £
Tax charged to the profit and loss account
Based on the profit for the year
Corporation tax at 26% — —
The Company is considered to be a close company as defined in the Income and Corporation Taxes Act 1988.
Factors affecting the tax charge for year 2012 2011
£ £
Profit on ordinary activities before taxation 8,157,952 (1,686,076)
Profit on ordinary activities at the standard rate of
corporation tax in the UK of 26% (2011: 28%) 2,121,068 (472,101)
Effects of
Non-taxable UK dividend income on investments (2,154,413) (782,205)
Expenses not deductible for tax purposes 8,523 5,934
Losses for the year unutilised 43,243 133,460
Short term timing difference (10,400)
Loss / (Gain) on investment disposals 849,639 (180,647)
(Writeback of) / Increase in Investment impairment (857,660) 1,295,559
Tax charged to the profit and loss account — —
Deferred taxation
No provision is made under FRS 19 for any notional liability to corporation tax on capital gains that would have arisen if all investments had been realised at the balance sheet date at the valuations included in these financial statements at note 9. A potential liability for taxation of £34,966,269 (2011 - £50,587,338) would arise before utilisation of capital losses.
There is an unrecognised deferred tax asset of £13,800,450 (2011 - £13,939,880) which relates to capital
losses and an unrecognised deferred tax asset of £130,235 (2011 - £279,444) which relates to unutilised expenses. The deferred tax asset would only be recovered if the Company were to generate sufficient taxable capital
profits and sufficient taxable profits on income in the future to utilise these losses. It is considered too uncertain that the Company will generate sufficient taxable capital and income profits in the future to utilise thee losses and therefore no deferred tax asset has been recognised.
Legislation already enacted at the balance sheet date meant that with effect from 1 April 2012 the corporate tax rate reduced to 24% (from 26%) which is the rate used in the unrecognised deferred tax balances set out above. Subsequent reductions in the rate of 1% each year are expected until the rate reaches 22% from 1 April 2014, and these are to be dealt with by future legislation. The maximum impact of the reduction in the tax rate to 22% on closing unrecognised balances is set out below:
Unrecognised deferred tax liability on investments (before utilisation of capital losses) - £32,052,413 (a reduction of £2,913,856. Unrecognised deferred tax asset on capital losses £12,650,413 (reduction of £1,150,037) and on unrecognised deferred tax asset on unutilised expenses £119,382 (a reduction of £10,853).
6. Dividends 2012 2011
£ £
Ordinary dividends in respect of profits of the year ended:
31 March 2010
Interim of 4.0p paid 31 March 2010 —
Final dividend of 1.6p paid 3 December 2010 2,399,721 2,020,817
31 March 2011
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
6. Dividends (cont)
An interim dividend of 2.0p in respect of the year ended 31 March 2012 was declared in May 2012 and payable on on 1 June 2012. A final dividend of 4.0p will be recommended by the directors for approval at the Annual
General Meeting in December 2012.
7. Tangible fixed assets
Software Artefacts Total
£ £ £ Cost Opening balance 18,577 59,083 77,660 Additions — 14,406 14,406 Disposals / Writedowns — (4,250) (4,250) Closing balance 18,577 69,239 87,816 Depreciation Opening balance 18,577 — 18,577
Charge for year — — —
Closing balance 18,577 — 18,577
Opening net book value 1 April 2011 — 59,083 59,083
Closing net book value 31 March 2012 — 69,239 69,239
8. Investments
Listed Unlisted Total
£ £ £ Cost As at 1 April 2011 255,747,105 4,695,421 260,442,526 Additions 5,891,696 104,803 5,996,499 Disposals (5,375,085) (495,074) (5,870,159) As at 31 March 2012 256,263,716 4,305,150 260,568,866
Provision for Permanent Diminuition in Value
As at 1 April 2011 (4,626,996) (326,150) (4,953,146)
Provision made during the year — — —
Written back on disposals 3,298,691 — 3,298,691
As at 31 March 2012 (1,328,305) (326,150) (1,654,455)
Opening net book value 1 April 2011 251,120,109 4,369,271 255,489,380
Closing net book value 31 March 2012 254,935,411 3,979,000 258,914,411
Market value at 31 March 2011 362,883,747 3,646,934 366,530,681
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
8. Investments (continued)
Proportion
Name Country Holding of shares held
Subsidiaries
Cayzer Limited England Ordinary 100%
Cayzer Development Capital Limited England Ordinary 100%
Cayzer Finance Limited England Ordinary 100%
Cayzer Holdings Limited England Ordinary 100%
Cayzer Investment Management Limited England Ordinary 100%
Cayzer Investments Limited England Ordinary 100%
Cayzer and Partners Limited England Ordinary 100%
Cayzer Property Development Limited England Ordinary 100%
Cayzer Property Investments Limited England Ordinary 100%
Cayzer Property Management Limited England Ordinary 100%
The Clan Line Steamers Limited Scotland Ordinary 100%
All of the subsidiary companies are dormant companies.
Associates Activity:
Caledonia Investments plc Investment Trust England Ordinary 34.2%
Crewkerne Investments Limited Investment England Ordinary 49.5%
The cost of associated and subsidiary companies are as follows:
2012 2011
£ £
Subsidiary companies 2,765 2,765
Associated companies
Caledonia Investments plc 226,357,583 226,247,773
Crewkerne Investments Limited 1,095,178 1,095,178
227,452,761 227,342,951
The following additional information is taken from the audited accounts of the Company's associates as at 31 March 2012.
Caledonia Crewkerne
Investments Investments Total
£ m £ m £ m
Turnover 115.3 0.0 115.3
Loss before tax (96.2) 0.0 (96.2)
Taxation (2.0) 0.0 (2.0)
Loss after tax (98.2) 0.0 (98.2)
Non-current assets 1,196.6 0.0 1,196.6
Current assets 78.5 1.9 80.4
Current liabilities (53.8) 0.0 (53.8)
Non-current liabilities (103.2) 0.0 (103.2)
Net assets 1,118.1 1.9 1,120.0
Non-equity share capital 0.0 (0.2) (0.2)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
9. Debtors 2012 2011
£ £
Trade debtors 8,400 83,207
Sundry debtors and prepayments 40,965 23,133
Due from subsidiary companies 5 5
Due on sale of investments 286,270 348,792
VAT receivable 895 2,164
Accrued fee income 147,000 145,000
Accrued investment and interest income 194,090 107,068
Total Debtors 677,625 709,369
10. Current asset investments
2012 2011
£ £
Cost
Floating rate note 250,000 250,000
Market value 250,000 251,675
The floating rate note comprises of one note currently held at 1.73456% which matures on 27 April 2012.
11. Cash at bank and in hand
2012 2011
£ £
Cash at bank and in hand 6,974 25,967
Short-term deposits 5,850,000 8,065,000
Total Cash at bank and in hand 5,856,974 8,090,967
12. Creditors
2012 2011
£ £
Amounts falling due within one year:
Due to subsidiary companies 12 12
Trade creditors 438,752 27,111
PAYE & NIC 12,206 14,961
Pension Scheme Shortfall 40,000 40,000
Accruals 69,856 101,781
560,826 183,865
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
13. Share capital
2012 2011
£ £
Authorised
41,952,898,558 ordinary shares of 1p each 419,528,986 419,528,986
Allotted, issued and fully paid
126,301,085 ordinary shares of 1p each 1,263,011 1,263,011
14. Reconciliation of shareholders' funds and movement on reserves
Profit and Share
loss account capital Total
£ £ £
As at 1 April 2010 266,738,816 1,263,011 268,001,827
Loss for the year ended 31 March 2011 (1,686,076) — (1,686,076)
Dividends paid (2,020,817) — (2,020,817)
As at 31 March 2011 263,031,923 1,263,011 264,294,934
Profit for the year ended 31 March 2012 8,157,952 — 8,157,952
Dividends paid (7,325,463) — (7,325,463)
Shareholders Funds as at 31 March 2012 263,864,412 1,263,011 265,127,423
15. Analysis of cash flows
Capital expenditure and financial investment
2012 2011
£ £
Purchase of fixed asset investments (5,581,937) (6,014,480)
Sale of fixed asset investments 2,664,840 5,479,601
Sale of current asset investments — 1,000,000
Purchase of fixed assets (14,406) (18,770)
(2,931,503) 446,351
Management of liquid resources
2012 2011
£ £
Net cash outflow / (inflow)
-Decrease / (Increase) in short-term deposits 2,215,000 (845,000)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
16. Related party transactions
Transactions with related parties, as defined by FRS 8, not disclosed elsewhere in the financial statements are described below.
The Company held 34.2% (2011 - 33.7%) of the issued share capital of Caledonia Investments plc at 31 March 2012. Caledonia Group Services Limited and Buckingham Gate Limited, both wholly owned subsidiaries of Caledonia Investments plc were due fees of £118,047 for the year ending 31 March 2012 (2011- £113,055) for the provision and servicing of the company premises.
Administration fees of £9,620 for the year ending 31 March 2012 (2011- £6,500) were receivable from Caledonia Group Services Limited at year end.
Net dividends received during the year from associated companies amounted to £7,395,629 (2011 - £2,177,613).
17. Operating leases Leases as lessee
Non-cancellable operating lease rentals are payable as follows:
2012 2011
£ £
Less than one year 91,908 91,285
Between one and five years 367,683 366,350
After five years 57,450 148,830
Total lease payments 517,041 606,465
During the year £118,047 (2011 - £113,055) was recognised as an expense in the income statement in respect of operating leases.
18. Capital Commitments
