Annual Report for the year ended 31 December 2008

Wdb capital
The Group’s investment in the WDB Capital uK Equity Fund limited
reduced from 94.79% to 50.20% during 2008. The fund is expected
to be deconsolidated in 2009 as the Group’s investment falls below
50%, as a result the assets and liabilities of the fund are presented
as held-for-sale.
WDB Capital’s principal activity is that of investment fund manager to
WDB Capital uK Equity Fund limited. From the initial seeding of £10m
by the Group made on the 24 september 2007 to the 31 December
2008 the fund returned a net positive net return of 14.26% and in
the calendar year 2008 a positive net return of 9.53%. in light of the
exceptionally challenging environment for equity markets the Group is
pleased with the funds performance. Reflecting the funds success,
WDB Capital uK Equity Fund limited was nominated in the “New Fund
of the Year” Category at the 2008 EuroHedge awards. The fund has
seen significant inflows throughout 2008 and continues to in 2009.
Infrastructure, culture and employees
2008 continued to create significant challenges for our infrastructure as
we responded to the increased market volatility, whilst managing organic
and acquisitive growth and the re-balancing across our business model.
it is due in no small part to the continued professionalism of our employees
that the Group has weathered such conditions whilst delivering a robust
performance. i would like to express my continuing thanks to all our
employees who continue to work hard through the current difficult
market conditions.
CHIEF ExECUTIVE’S REPORT CONTiNuED
OUTLOOK
Outlook
The Board has stressed the need for a strong and liquid Balance sheet
for some considerable time, the Group retains this asset and has protected
stakeholders interests by doing so. in the environment which we all face,
i believe this liquidity provides your group with substantial opportunity.
it is very firmly my belief that the Group will have opportunities to exercise
this leverage, whether through acquisition as demonstrated at the end of
2008 with the demise of Kaupthing and the unique opportunity this provided
to acquire singer & Friedlander investment management, or indeed through
even more dynamic opportunities that will inevitably occur as our industry
changes further in the coming months.
i firmly believe the Group can and will extend itself to capitalise on these
opportunities, whilst continuing to pay an increasing dividend year on year
to shareholders.
i am pleased to report very encouraging trading in the first quarter, which
has been achieved almost completely from our recurring based revenue
streams. Williams de Broë is now one of the fastest-growing private client
fund management businesses in the uK, and Evolution securities is also
expanding its business, most recently with the creation of a strong Fixed
income trading capability.
i would like to thank my Non-executive Board colleagues who have
remained supportive of this strategy over the past two years.
Alex Snow
Chief Executive Officer
8 April 2009
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