Farmer Business Developments plc Annual Report 2017

Transcription

1 Farmer Busiess Developmets plc Aual Report 2017

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3 Cotets Chairma s Statemet 2 Board of Directors ad Other Iformatio 5 Report of the Directors 6 Idepedet Auditors Report 10 Fiacial Statemets: Cosolidated Icome Statemet 13 Cosolidated Statemet of Comprehesive Icome 14 Cosolidated Statemet of Chages i Equity 14 Cosolidated Balace Sheet 15 Cosolidated Statemet of Cash Flows 16 Compay Balace Sheet 17 Compay Statemet of Chages i Equity 18 Compay Statemet of Cash Flows 18 Notes to the Fiacial Statemets 19 Notice of Aual Geeral Meetig 50 Notes for Shareholders 51 Farmer Busiess Developmets plc 1 Aual Report 2017

4 Chairma s Statemet RESULTS I am pleased to report to you that Farmer Busiess Developmets plc ( the Group ) performed strogly i 2017 recordig a profit before iterest ad taxatio of 20.06m i 2017, which icludes a urealised revaluatio gai of 13.58m o our hotel ad associated property assets. This compares to the 7.16m profit before iterest ad taxatio achieved i We have also grow the Balace Sheet so that the value of our Shareholders Fuds icreased by 23% or 41.64m durig the year from m to m. O 24 November 2017, the Group acquired cotrol of Bulberry Properties Limited ( Bulberry ), the compay with developmet lad adjacet to the ew Willy Bradt Airport i Berli by icreasig its shareholdig i the compay to 61% for a cosideratio of 7.15m. From that date, the tradig results of Bulberry are icluded i our Cosolidated Icome Statemet. To assist shareholders i uderstadig our results for 2017, we have produced a Divisioal Summary Statemet below, which separates the results for the Group. Divisioal Summary Statemet FBD Hotels & Resorts Result Cotiuig 19,729 5,385 FBD Hotels & Resorts Result Discotiuig (icludes profit from sale) 110 2,312 Bulberry Properties (Berli) Result (122) - Farmer Busiess Developmets Ivestmet Result 347 (537) Profit before iterest ad taxatio 20,064 7,160 Divided Icome - 71 Iterest Icome 4, Iterest Expese (1,617) (1,806) Profit before taxatio 22,783 5,502 The Summary Statemet shows a strog performace by FBD Hotels & Resorts cotiuig busiess for 2017, cotributig a total of 19.73m to the Group s profit before iterest ad taxatio result, 6.15m beig its Operatig Profit (2016: 5.38m), a 14% icrease, ad 13.58m a et revaluatio uplift o its Spaish developmet lad ad resorts. The Bulberry Properties result reflects tradig from 24 November O the Ivestmet side, there was a et mark up of 0.35m for There was o divided icome i 2017, while et iterest amouted to 2.72m received, with iterest paid o bak loas offset by iterest receivable o loa otes i Bulberry. This resulted i a Group profit before taxatio for 2017 of 22.78m. FBD HOLDINGS PLC It is satisfyig to record that FBD Holdigs plc cotiued its recovery ad growth i profitability i 2017 with a 49.7m profit before tax. This improved fiacial performace is the result of the decisive ad ecessary actios take by maagemet over the past three years, which icluded a strog focus o their core Farm ad SME customers ad the lauch of their ew FBD brad. Farmer Busiess Developmets plc 2 Aual Report 2017

5 This successful strategy has eabled FBD Holdigs plc to resume divided paymets this year ad declare a divided of 24 cets per ordiary share. This is a very welcome developmet to our Compay ad vidicates your Board s policy of maitaiig our stake i FBD Holdigs plc as a log-term ivestmet. Our shareholders are proud to have bee fouder shareholders of the FBD group of compaies icludig FBD Isurace plc, which this year celebrates its 50th year i busiess. We value that associatio ad, while ackowledgig the support of other ivestors, our wish would be for FBD Holdigs plc to cotiue i Irish owership i the expectatio of both divided icome ad capital appreciatio. The FBD Holdigs plc share price performed very strogly durig 2017, risig from 6.89 to per share at 31 December 2017, ad this accouted for a additioal 27.5m o our balace sheet. Our 24.6% stake i FBD Holdigs plc is booked i our reserves ad accouted for 88.87m or 40% of our shareholder fuds value at year-ed. FBD INSURANCE DISCOUNT I wish to take this opportuity to remid our farmig shareholders, who hold at least 10,000 ordiary shares i our Compay, that their ivestmet is recogised ad rewarded through a discout of 10% o their isurace premiums with FBD Isurace ad also through this Compay s aual divideds. FBD Isurace has a prove track record of deliverig a superior product ad service to its core farmig customers. REVIEW OF INVESTMENTS Our Compay is primarily a ivestmet holdig compay. The ature of a ivestmet holdig compay is that year-o-year icome is ot aloe the idicative assurace of performace. I a ivestmet holdig compay, the growth of the asset value of the Balace Sheet is a itrisic part of the overall performace together with icome. a) FBD Hotels & Resorts ( FBDH&R ) FBDH&R is our sigle largest subsidiary represetig 96.92m or 43% of our Shareholders Fuds. The tradig performace of FBDH&R was strog i 2017, drive by growth i occupacy ad yield i its hotels ad strog property sales from its lad bak. Both the Irish ad Spaish markets performed strogly ad EBITDA (earigs before iterest, tax, depreciatio ad amortisatio) was 9.33m. Reveue per available room i Irelad was up 6%, while i Spai total leisure reveue icreased by 7%. Spai is ow the 2d most visited coutry i the world, with 82m visitors i 2017, a icrease of 17% i 2 years. FBDH&R etered a fourth property developmet with Taylor Wimpey at the La Cala Resort i Spai durig The developmet will cosist of 280 additioal uits, with 90 beig built o plots owed by FBDH&R ad 190 o plots joitly owed by FBDH&R ad Taylor Wimpey. This brigs to 656 the total umber of uits beig developed at La Cala, over four lad deals with Taylor Wimpey. The first property developmet lauched i late 2014 cosistig of 60 apartmets is completed ad haded over i full. Costructio cotiues o the secod property developmet ad to date 89 of the 103 uits have bee sold. Costructio works o the third developmet commeced i late 2017, the first 60 apartmet uits were lauched i early 2018 ad 13% of the uits have already bee sold. I late 2017, FBDH&R completed the 52 bedroom extesio, a state of the art luxury spa ad upgrade of the food ad beverage offerigs i Castlekock Hotel. Tradig o the refurbished hotel has bee strog i 2018 to date. FBDH&R s strog property sales performace is uderlyig the valuatio of its lad bak i La Cala ad a valuatio uplift of 13.6m has bee recogised i Overall, the outlook for the FBDH&R busiess is positive, our ivestmet has started to deliver strog returs ad we are cofidet this will cotiue ito the future. b) Bulberry Properties Limited (Berli Airport) Our ivestmet i developmet lads at Schöefeld adjacet to the ew Willy Bradt Airport i Berli remais our third largest iterest. Durig 2017, we ivested a further 7.1m to icrease our stake i Bulberry to 61% at a total cost of 26.8m ad were required to book all assets ad liabilities of Bulberry Farmer Busiess Developmets plc 3 Aual Report 2017

6 Chairma s Statemet cotiued at Fair Value at the date of acquisitio. We ow carry the ivestmet i this subsidiary at 30.62m which represets 14% of our Shareholders Fuds. While completio of the ew airport has bee delayed, the Supervisory Board of Berli Bradeburg Airport Gmbh completed a detailed review i December 2017 ad aouced that the airport will ope i October As the populatio of the Berli-Bradeburg metropolita regio cotiues to grow, market setimet aroud the developmet lads is positive because of both excellet access to the city s road ad rail ifrastructure ad the prospect of the ew airport opeig. The recet sale of a developmet plot has put Bulberry i a fiacial positio to complete plaig ad ifrastructure improvemets, which is regarded as the best strategy to ehace value ad maximise shareholder value ad returs, by retaiig the most valuable lad to meet demad whe the airport opes. c) Other Ivestmets The remaiig 6.94m (3%) of our Balace Sheet cosists of a portfolio of smaller ivestmets ad cash, totallig 20.07m less debt fudig of 13.13m. These ivestmets iclude iteratioal equities ad private equity fuds, together with a Irish veture capital fud. A shoppig cetre i Geeva, which was the uderlyig asset i oe of our ivestmets, was sold at the ed of To date we have received 4.4m from our ivestmet, realisig a 625k profit. The liquidatio process has commeced for the Swiss compay that owed the shoppig cetre ad whe completed i 2018, we expect a fial distributio et of tax to be i excess of 2.15m. SHARE DEALING SERVICE The private grey market i the Compay s shares operated by Davy Select has cotiued to facilitate a steady volume of tradig, with a total of 219,885 shares traded i 2017 (2016: 220,500 shares) at a average price of 95 cets per share (2016: 95 cets). A represetative from Davy Select will atted the AGM to aswer shareholders questios. The Compay remais ope to ew farmer shareholders, however your Board s policy is to cotiue to maitai our character as a farmers compay. COMPANY WEBSITE Our Compay website is at www. FarmerBusiessDevelopmets.ie. The website provides ready access to useful ivestor iformatio, compay aoucemets ad details of how to trasfer shares, as well as the share trade volumes ad prices o our private grey market operated by Davy Select. SHARE REGISTRARS Lik Asset Services maage the registratio ad certificatio of share trasfers i the settlemet of estates ad i private trasactios betwee shareholders. They may be cotacted at or equiries@likgroup.ie. Please ote that Lik Asset Services, part of the Lik Group, acquired Capita Asset Services durig Apart from the chage i ame, there are o chages to terms of service. DIVIDEND For 2018, the Directors are pleased to recommed a divided of 6c per share (2017: 5c) o the ordiary shares, reflectig the Compay s positive performace. Your Board is committed to a sustaiable divided policy of usig available resources to beefit shareholders. CONCLUSION Our Compay has a growig Balace Sheet with the value of Shareholders Fuds beefittig i particular from the recovery of FBD Holdigs plc ad a excellet performace from our FBDH&R subsidiary. We have cofidece that these ivestmets, our Berli iterest ad smaller ivestmets will cotiue to perform well ad that our Compay will cotiue to reward our shareholders with superior returs. Thak you for your support. Padraig Walshe Chairma 04 May 2018 Farmer Busiess Developmets plc 4 Aual Report 2017

7 Board of Directors ad Other Iformatio BOARD OF DIRECTORS Appoited by Shareholders Padraig Walshe (Chairma) Jack Bayly James Kae (Vice Chairma) T.J. Maher Joh McCulle Hugh Rya Appoited by Co-ops Doal Buckley Michael Keedy Patrick Murphy Neil O Riorda Tommy Joe Tuffy Appoited by IFA Joh Brya Barry Doelly Kevi Kiersey Diarmuid Lally SECRETARY AND REGISTERED OFFICE Brya Barry, Farmer Busiess Developmets plc, Irish Farm Cetre, Bluebell, Dubli 12. Phoe: bryabarry@fbdevelopmets.ie SHARE REGISTRAR Lik Asset Services, Lik Registrars Limited, 2 Grad Caal Square, Grad Caal Harbour, Dubli 2. Phoe: equiries@likgroup.ie SHARE MARKET Davy Select, Davy House, 49 Dawso Street, Dubli 2. Phoe: davyselect@davy.ie BANKERS Allied Irish Baks, Lower Baggot St., Dubli 2. SOLICITORS Arthur Cox, Te Earlsfort Terrace, Dubli 2. AUDITORS Deloitte, Chartered Accoutats ad Statutory Audit Firm, Deloitte & Touche House, Earlsfort Terrace, Dubli 2. Farmer Busiess Developmets plc 5 Aual Report 2017

8 Report of the Directors The Directors preset their Aual Report ad audited Fiacial Statemets for the year eded 31 December PRINCIPAL ACTIVITY, BUSINESS REVIEW AND PROSPECTS Farmer Busiess Developmets plc (the Group) is a ivestmet holdig compay. FBD Hotels & Resorts ( FBDH&R ) is the Groups largest ivestmet. The activities of FBDH&R cosist of hotel operatios i Irelad ad Spai ad ivestmet i properties associated with these activities. Farmer Busiess Developmet plc s other ivestmets are 24.6% (2016: 24.6%) of the ordiary share capital of FBD Holdigs plc, a 61% ivestmet i the Bulberry Group ad a diversified portfolio of ivestmets ad cash deposits. FBD Holdigs plc is a ivestmet holdig compay. The pricipal activity of its major subsidiary, FBD Isurace plc, is lookig after the isurace eeds of farmers, private idividuals ad busiess owers. Bulberry Group s pricipal activity is the owership ad developmet of lads adjacet to the ew Berli airport. The 2017 results for Farmer Busiess Developmets plc reflect a profit before taxatio of 22.78m (2016: 5.50m). After a tax charge of 5.84m (2016: 0.98m), the Group eared a profit after taxatio of 16.94m (2016: 4.52m). The Cosolidated Balace Sheet had Net Assets of m at 31 December 2017, up from m the previous year. These umbers are cosidered to be the key performace idicators of the Group. The Group declared ad paid a aual divided of 5 cets per ordiary share i 2017 (2016: 5 cet) totallig 2.59m (2016: 2.59m) ad preferece divideds of 0.15m (2016: 0.15m). Retaied profit for the year was 14.17m (2016: 2.29m). The major risks ad ucertaities facig the Group s operatig activities lie i the hospitality sector, the primary risk beig a dowtur i Irelad ad Spai ad the impact of Brexit that may dimiish demad for leisure ad busiess travel. I commo with all compaies operatig i this sector the Group faces risks ad ucertaities such as competitio ad icreasig costs. The geeral ecoomic ucertaity is also a risk for the Group. The Directors are of the opiio that the Group is well positioed to maage these risks. The major risks ad ucertaities facig the Group s ivestig activities arise from its exposure to iterest rate risk, market risk, foreig currecy risk ad credit risk through its ivestmets, which are explaied i ote 30. Withi the ivestmet portfolio, the pricipal idividual risk is due to the Group s sigificat ivestmet i the shares of FBD Holdigs plc, which makes up 40% of shareholder fuds. Over the last three years, FBD Holdigs plc have successfully executed a sigificat turaroud i their busiess ad ow look forward with cofidece to future profitability ad growth. FBD Holdigs plc recorded a profit after taxatio of 42.7m i 2017 ad subsequetly declared a divided of 24 cets per ordiary share. RESULTS Profit before taxatio 22,783 5,502 Taxatio (5,836) (975) Profit after taxatio 16,947 4,527 No-cotrollig iterests (29) (66) Currecy traslatio movemet Divided paid o 14% o-cumulative preferece shares (89) (89) Divided paid o 11% o-cumulative preferece shares (62) (62) Divided paid o ordiary shares (2,594) (2,594) Movemet o Reveue Reserves 14,173 2,290 Net Assets 246, ,518 Farmer Busiess Developmets plc 6 Aual Report 2017

9 DIRECTORS The ames of the curret Directors are listed o page 5. O 24 March 2017, Mr Joe Healy resiged as a Director appoited by Shareholders. At last year s Aual Geeral Meetig (AGM) o 7 Jue 2017, Mr James Kae retired as a Director appoited by the Co-operative Societies holdig shares i the Compay, i lie with the reductio i Board size approved by shareholders. At the same meetig, Mr Kae was elected as a Director appoited by Shareholders. O 17 August 2017, Mr Tommy Joe Tuffy, Mr Neil O Riorda ad Mr Michael Keedy retired as Directors appoited by the Co-operative Societies ad all were re-appoited. At the forthcomig AGM o 8 Jue 2018, Mr Hugh Rya ad Mr T.J. Maher will retire as Directors appoited by Shareholders. Mr Rya is ieligible for re-appoitmet, while Mr Maher is eligible ad is recommeded by the Directors for re-appoitmet by Shareholders. The Directors are recommedig that Mr Jer Bergi be elected by Shareholders as a Director at the AGM to fill the vacacy which has arise. The Compay has also received otice from a member, Mr Michael Chace, of his itetio to omiate Mr Bria Marshall for electio as a Director appoited by Shareholders at the AGM ad otice from Mr Marshall of his willigess to serve as a Director, if elected. DIRECTORS AND SECRETARY S INTERESTS The beeficial iterests of the Directors ad Secretary of the Compay ad their spouses, civil parters ad mior childre i the share capital of the Compay, at 31 December 2017 ad 1 Jauary 2017 were as follows: Number of Ordiary Shares of 0.13 each Number of 14% No- Cumulative Preferece Shares of 1.27 each Number of 11% No- Cumulative Preferece Shares of 0.13 each Directors: 31/12/17 01/01/17 31/12/17 01/01/17 31/12/17 01/01/17 Jack Bayly 52,575 52, ,000 3,000 Joh Brya 2,000 2, Doal Buckley Barry Doelly 11,110 6, Joe Healy (resiged 24 March 2017) N/A 1, James Kae 24,921 24, Michael Keedy 30,549 30, ,000 3,000 Kevi Kiersey 14,244 14, Diarmuid Lally 1,000 1, T.J. Maher Joh McCulle 12,567 12, ,000 3,000 Patrick Murphy 5,185 5, Neil O Riorda 3,500 1, Hugh Rya 22,869 22, Tommy Joe Tuffy 1,000 1, Padraig Walshe 10,369 10, Secretary Brya Barry 16,000 6, Farmer Busiess Developmets plc 7 Aual Report 2017

10 Report of the Directors cotiued DISCLOSURE OF INFORMATION TO AUDITORS I the case of each of the persos who are Directors at the time the Directors Report ad Fiacial Statemets are approved: a) So far as the Director is aware, there is o relevat audit iformatio of which the Compay s statutory auditors are uaware; ad b) Each Director has take all steps that ought to have bee take by the Director i order to make himself / herself aware of ay relevat audit iformatio ad to establish that the Compay s auditors are aware of that iformatio. This cofirmatio is give ad should be iterpreted i accordace with the provisios of Sectio 330 of the Compaies Act DIRECTORS COMPLIANCE STATEMENT As required by Sectio 225 of the Compaies Act 2014, the Directors ackowledge that the Directors are resposible for securig the Compay s compliace with its relevat obligatios; ad the Directors cofirm that the Directors have implemeted the followig three procedures i order to comply with the Directors obligatios: a) the drawig up of a compliace policy statemet settig out the Compay s policies that, i the Directors opiio, are appropriate to the Compay, ad demostrate compliace by the Compay with its relevat obligatios; b) the puttig i place of appropriate arragemets or structures that are, i the Directors opiio, desiged to secure material compliace with the Compay s relevat obligatios; ad c) the reviewig of ay arragemets or structures that are i place or beig put i place. AUDIT COMMITTEE I accordace with Sectio 167 of the Compaies Act 2014, the Compay established a audit committee. The audit committee s resposibilities iclude moitorig: a) the Compay s fiacial reportig process; b) the effectiveess of the Compay s systems of iteral cotrol ad risk maagemet; c) the Compay s statutory audit ad statutory fiacial statemets; ad d) reviewig the idepedece of the statutory auditor. DIRECTORS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS The Directors are resposible for preparig the Directors Report ad the Fiacial Statemets i accordace with the Compaies Act 2014 ad the applicable regulatios. Irish compay law requires the Directors to prepare Fiacial Statemets for each fiacial year. Uder the law, the Directors have elected to prepare the Fiacial Statemets i accordace with FRS 102 the Fiacial Reportig Stadard applicable i the UK ad Republic of Irelad ( relevat fiacial reportig framework ). Uder compay law, the Directors must ot approve the Fiacial Statemets uless they are satisfied that they give a true ad fair view of the assets, liabilities ad fiacial positio of the Compay as at the fiacial year ed date ad of the profit or loss of the Compay for the fiacial year ad otherwise comply with the Compaies Act I preparig those Fiacial Statemets, the Directors are required to: select suitable accoutig policies for the Paret Compay ad the Group Fiacial Statemets ad the apply them cosistetly; Farmer Busiess Developmets plc 8 Aual Report 2017

11 make judgemets ad estimates that are reasoable ad prudet; state whether the Fiacial Statemets have bee prepared i accordace with the applicable accoutig stadards, idetify those stadards, ad ote the effect ad the reasos for ay material departure from those stadards; ad prepare the Fiacial Statemets o the goig cocer basis uless it is iappropriate to presume that the Compay will cotiue i busiess. The Directors are resposible for esurig that the Compay keeps or causes to be kept adequate accoutig records which correctly explai ad record the trasactios of the Compay, eable at ay time the assets, liabilities, fiacial positio ad profit or loss of the Compay to be determied with reasoable accuracy, eable them to esure that the Fiacial Statemets ad Directors Report comply with the Compaies Act 2014, ad eable the Fiacial Statemets to be audited. They are also resposible for safeguardig the assets of the Compay ad hece for takig reasoable steps for the prevetio ad detectio of fraud ad other irregularities. SUBSIDIARIES The Compay s direct subsidiaries are listed i ote 31. SUBSEQUENT EVENTS O 23 February 2018, the Group refiaced 39m of its existig bak loas, icreasig the facility by a additioal 5m ad extedig the maturity date to February INDEPENDENT AUDITORS The auditors, Deloitte, Chartered Accoutats ad Statutory Audit Firm cotiue i office i accordace with Sectio 383(2) of the Compaies Act ACCOUNTING RECORDS The Directors have take appropriate measures to esure compliace with Sectios 281 to 285 of the Compaies Act The specific measures take are the use of suitably qualified accoutig persoel ad the maiteace of appropriate accoutig systems. The books of accout are located at Irish Farm Cetre, Bluebell, Dubli 12. ANNUAL GENERAL MEETING The otice of the Aual Geeral Meetig of the Compay which will be held at 12 oo o 8 Jue 2018 i the Irish Farm Cetre, Bluebell, Dubli 12, is set out o page 50. APPROVAL OF FINANCIAL STATEMENTS The Fiacial Statemets were approved by the Directors o 02 May Siged o behalf of the Board: Padraig Walshe Chairma James Kae Director 04 May 2018 Farmer Busiess Developmets plc 9 Aual Report 2017

12 Idepedet auditor s report To the members of Farmer Busiess Developmets plc Opiio o the fiacial statemets of Farmer Busiess Developmets plc I our opiio, the group ad compay fiacial statemets: give a true ad fair view of the assets, liabilities ad fiacial positio of the group ad compay as at 31 December 2017; ad of the profit of the group for the fiacial year the eded; ad have bee properly prepared i accordace with the relevat fiacial reportig framework ad, i particular, with the requiremets of the Compaies Act The fiacial statemets we have audited comprise: the Group fiacial statemets: Cosolidated Icome Statemet; Cosolidated Statemet of Comprehesive Icome; Cosolidated Statemet of Chages i Equity; Cosolidated Balace Sheet; Cosolidated Statemet of Cashflows; ad the related otes 1 to 37, icludig a summary of sigificat accoutig policies as set out i ote 1. the paret Compay fiacial statemets: the Compay Balace Sheet; the Compay Statemet of Chages i Equity; the Compay Statemet of Cashflows; ad the related otes 1 to 37, icludig a summary of sigificat accoutig policies as set out i ote 1. The relevat fiacial reportig framework that has bee applied i the preparatio of the group ad paret compay fiacial statemets is the Compaies Act 2014 ad FRS 102 The Fiacial Reportig Stadard applicable i the UK ad Republic of Irelad ( the relevat fiacial reportig framework ). BASIS FOR OPINION We coducted our audit i accordace with Iteratioal Stadards o Auditig (Irelad) (ISAs (Irelad)) ad applicable law. Our resposibilities uder those stadards are described below i the Auditor s resposibilities for the audit of the fiacial statemets sectio of our report. We are idepedet of group i accordace with the ethical requiremets that are relevat to our audit of the fiacial statemets i Irelad, icludig the Ethical Stadard issued by the Irish Auditig ad Accoutig Supervisory Authority, ad we have fulfilled our other ethical resposibilities i accordace with these requiremets. We believe that the audit evidece we have obtaied is sufficiet ad appropriate to provide a basis for our opiio. CONCLUSIONS RELATING TO GOING CONCERN We have othig to report i respect of the followig matters i relatio to which ISAs (Irelad) require us to report to you where: the directors use of the goig cocer basis of accoutig i preparatio of the fiacial statemets is ot appropriate; or the directors have ot disclosed i the fiacial statemets ay idetified material ucertaities that may cast sigificat doubt about the group s ad compay s ability to cotiue to adopt the goig cocer basis of accoutig for a period of at least twelve moths from the date whe the fiacial statemets are authorised for issue. Farmer Busiess Developmets plc 10 Aual Report 2017

13 OTHER INFORMATION The directors are resposible for the other iformatio. The other iformatio comprises the iformatio icluded i the Reports ad Cosolidated Fiacial Statemets for the year eded 31 December 2017, other tha the fiacial statemets ad our auditor s report thereo. Our opiio o the fiacial statemets does ot cover the other iformatio ad, except to the extet otherwise explicitly stated i our report, we do ot express ay form of assurace coclusio thereo. I coectio with our audit of the fiacial statemets, our resposibility is to read the other iformatio ad, i doig so, cosider whether the other iformatio is materially icosistet with the fiacial statemets or our kowledge obtaied i the audit or otherwise appears to be materially misstated. If we idetify such material icosistecies or apparet material misstatemets, we are required to determie whether there is a material misstatemet i the fiacial statemets or a material misstatemet of the other iformatio. If, based o the work we have performed, we coclude that there is a material misstatemet of this other iformatio, we are required to report that fact. We have othig to report i this regard. RESPONSIBILITIES OF DIRECTORS As explaied more fully i the Directors Resposibility Statemet, the directors are resposible for the preparatio of the fiacial statemets ad for beig satisfied that they give a true ad fair view ad otherwise comply with the Compaies Act 2014, ad for such iteral cotrol as the directors determie is ecessary to eable the preparatio of fiacial statemets that are free from material misstatemet, whether due to fraud or error. I preparig the fiacial statemets, the directors are resposible for assessig the group s ad compay s ability to cotiue as a goig cocer, disclosig, as applicable, matters related to goig cocer ad usig the goig cocer basis of accoutig uless the directors either ited to liquidate the group ad compay or to cease operatios, or have o realistic alterative but to do so. AUDITOR S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtai reasoable assurace about whether the fiacial statemets as a whole are free from material misstatemet, whether due to fraud or error, ad to issue a auditor s report that icludes our opiio. Reasoable assurace is a high level of assurace, but is ot a guaratee that a audit coducted i accordace with ISAs (Irelad) will always detect a material misstatemet whe it exists. Misstatemets ca arise from fraud or error ad are cosidered material if, idividually or i the aggregate, they could reasoably be expected to ifluece the ecoomic decisios of users take o the basis of these fiacial statemets. As part of a audit i accordace with ISAs (Irelad), we exercise professioal judgmet ad maitai professioal scepticism throughout the audit. We also: Idetify ad assess the risks of material misstatemet of the fiacial statemets, whether due to fraud or error, desig ad perform audit procedures resposive to those risks, ad obtai audit evidece that is sufficiet ad appropriate to provide a basis for our opiio. The risk of ot detectig a material misstatemet resultig from fraud is higher tha for oe resultig from error, as fraud may ivolve collusio, forgery, itetioal omissios, misrepresetatios, or the override of iteral cotrol. Obtai a uderstadig of iteral cotrol relevat to the audit i order to desig audit procedures that are appropriate i the circumstaces, but ot for the purpose of expressig a opiio o the effectiveess of the group compay s iteral cotrol. Evaluate the appropriateess of accoutig policies used ad the reasoableess of accoutig estimates ad related disclosures made by the directors. Farmer Busiess Developmets plc 11 Aual Report 2017

14 Idepedet Auditors Report cotiued To the members of Farmer Busiess Developmets plc Coclude o the appropriateess of the directors use of the goig cocer basis of accoutig ad, based o the audit evidece obtaied, whether a material ucertaity exists related to evets or coditios that may cast sigificat doubt o the group ad compay s ability to cotiue as a goig cocer. If we coclude that a material ucertaity exists, we are required to draw attetio i our auditor s report to the related disclosures i the fiacial statemets or, if such disclosures are iadequate, to modify our opiio. Our coclusios are based o the audit evidece obtaied up to the date of the auditor s report. However, future evets or coditios may cause the group to cease to cotiue as a goig cocer. Evaluate the overall presetatio, structure ad cotet of the fiacial statemets, icludig the disclosures, ad whether the fiacial statemets represet the uderlyig trasactios ad evets i a maer that achieves fair presetatio. Obtai sufficiet appropriate audit evidece regardig the fiacial iformatio of the busiess activities withi the group to express a opiio o the cosolidated fiacial statemets. The group auditor is resposible for the directio, supervisio ad performace of the group audit. The group auditor remais solely resposible for the audit opiio. We commuicate with those charged with goverace regardig, amog other matters, the plaed scope ad timig of the audit ad sigificat audit fidigs, icludig ay sigificat deficiecies i iteral cotrol that the auditor idetifies durig the audit. This report is made solely to the compay s members, as a body, i accordace with Sectio 391 of the Compaies Act Our audit work has bee udertake so that we might state to the compay s members those matters we are required to state to them i a auditor s report ad for o other purpose. To the fullest extet permitted by law, we do ot accept or assume resposibility to ayoe other tha the compay ad the compay s members as a body, for our audit work, for this report, or for the opiios we have formed. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS Opiio o other matters prescribed by the Compaies Act 2014 Based solely o the work udertake i the course of the audit, we report that: We have obtaied all the iformatio ad explaatios which we cosider ecessary for the purposes of our audit. I our opiio the accoutig records of the group were sufficiet to permit the fiacial statemets to be readily ad properly audited. The compay fiacial statemets are i agreemet with the accoutig records. I our opiio the iformatio give i the directors report is cosistet with the fiacial statemets ad the directors report has bee prepared i accordace with the Compaies Act MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION Based o the kowledge ad uderstadig of the group ad its eviromet obtaied i the course of the audit, we have ot idetified material misstatemets i the directors report. We have othig to report i respect of the provisios i the Compaies Act 2014 which require us to report to you if, i our opiio, the disclosures of directors remueratio ad trasactios specified by law are ot made. Kevi Sheeha For ad o behalf of Deloitte Chartered Accoutats ad Statutory Audit Firm Deloitte & Touche House, Earlsfort Terrace, Dubli 2 04 May 2018 Farmer Busiess Developmets plc 12 Aual Report 2017

15 Cosolidated Icome Statemet For the fiacial year eded 31 December 2017 Restated Notes Turover cotiuig operatios 4 53,780 51,047 Turover discotiued operatios 4-5,417 Turover 4 53,780 56,464 Cost of sales (8,029) (9,507) GROSS PROFIT 45,751 46,957 Staff costs 5 (22,619) (23,320) Admiistrative expeses (17,608) (19,151) Profit o sale of hotel ,578 Operatig profit cotiuig operatios 5,480 3,752 Operatig profit discotiuig operatios (icludes profit from sale) ,312 GROUP OPERATING PROFIT 5,590 6,064 Revaluatio Gais o Hotel, Golf ad Ivestmet Properties 12 13,583 - Fair value gai / (loss) o ivestmets (1,736) Profit o sale of ivestmets ,204 Reversal of egative goodwill arisig o sale of lad PROFIT BEFORE INTEREST AND TAXATION 20,064 7,160 Iterest icome ad other similar items 7 4, Iterest payable ad similar expeses 8 (1,617) (1,806) PROFIT BEFORE TAXATION 9(a) 22,783 5,502 Taxatio 10 (5,836) (975) PROFIT AFTER TAXATION 16,947 4,527 Attributable to o-cotrollig iterests 28 (29) (66) PROFIT FOR THE FINANCIAL YEAR 16,918 4,461 The Fiacial Statemets were approved by the Board o 02 May Farmer Busiess Developmets plc 13 Aual Report 2017

16 Cosolidated Statemet of Comprehesive Icome For the fiacial year eded 31 December 2017 Restated Notes Profit for the fiacial year 16,918 4,461 OTHER COMPREHENSIVE INCOME Currecy traslatio movemet Urealised gais o ivestmets classified as available for sale 13 27,473 2,389 TOTAL COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR 44,391 7,424 Cosolidated Statemet of Chages i Equity For the fiacial year eded 31 December 2017 Called up share capital preseted as equity Revaluatio reserve Reveue reserves Capital Redemptio reserve Preferece share capital No-cotrollig iterest Total equity Notes 000s At 1 Jauary ,117 51, ,222 4,074 1, ,773 Restated Profit for the Year , ,527 Other Comprehesive Icome - 2, ,963 Divideds approved ad paid (2,745) (2,745) At 31 December Restated 32 7,117 53, ,512 4,074 1, ,518 No-cotrollig iterest arisig o acquisitio of subsidiary ,261 22,261 Profit for the year , ,947 Other comprehesive icome - 27, ,473 Divideds approved ad paid (2,745) (2,745) At 31 December ,117 81, ,685 4,074 1,196 23, ,454 Farmer Busiess Developmets plc 14 Aual Report 2017

17 Cosolidated Balace Sheet At 31 December 2017 Restated Notes NON CURRENT ASSETS Tagible fixed assets , ,641 Ivestmets available for sale 13 88,874 61,401 Ivestmets desigated as FVTPL 15 20,065 42,748 Negative goodwill (470) (161) Deferred taxatio asset 18(a) 1,421 1, , ,047 CURRENT ASSETS Ivetories 19 76,597 12,831 Debtors 20(a) 10,840 10,201 Cash ad cash equivalets 9,433 12,540 96,870 35,572 CURRENT LIABILITIES CREDITORS: Amouts fallig due withi oe year 22(a) (70,546) (27,255) NET CURRENT ASSETS 26,324 8,317 TOTAL ASSETS LESS CURRENT LIABILITIES 273, ,364 NON CURRENT LIABILITIES: Amouts fallig due after oe year 22(c) (27,308) (41,846) NET ASSETS 246, ,518 CAPITAL AND RESERVES Called up share capital preseted as equity 26 7,117 7,117 Reserves 215, ,395 SHAREHOLDERS FUNDS EQUITY INTERESTS 222, ,512 Preferece share capital 27 1,196 1,196 SHAREHOLDERS FUNDS ATTRIBUTABLE TO THE OWNERS 223, ,708 No-cotrollig iterests 28 23, TOTAL EQUITY 246, ,518 The Fiacial Statemets were approved by the Board o 02 May 2018 ad siged o its behalf by: Padraig Walshe Chairma James Kae Director The accompayig otes o pages 19 to 49 form a itegral part of the Fiacial Statemets. Farmer Busiess Developmets plc 15 Aual Report 2017

18 Cosolidated Statemet of Cash Flows For the fiacial year eded 31 December 2017 Notes OPERATING ACTIVITIES Net cash iflow from operatig activities 29(a) 789 4,682 CASH FLOW FROM INVESTING ACTIVITIES Purchase of tagible fixed assets (8,219) (2,402) Net cash iflow o sale of hotel 66 11,057 Sale of quoted ad uquoted ivestmets 15 5,119 5,876 Purchase of quoted ad uquoted ivestmets 15 (1,284) (631) Purchase of subsidiary (et of cash acquired) 17 (7,015) - NET CASH (OUTFLOW) / INFLOW FROM INVESTMENT ACTIVITIES (11,333) 13,900 CASH FLOW FROM FINANCING ACTIVITIES Proceeds from ew bak borrowigs 17,500 - Repaymets of loa obligatios (7,318) (9,643) Ordiary ad preferece divideds paid 14 (2,745) (2,745) NET CASH INFLOW / (OUTFLOW) FROM FINANCING ACTIVITIES 7,437 (12,388) (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS FOR THE YEAR (3,107) 6,194 Cash ad cash equivalets at the begiig of the year 12,540 6,346 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 9,433 12,540 Farmer Busiess Developmets plc 16 Aual Report 2017

19 Compay Balace Sheet At 31 December 2017 Notes NON CURRENT ASSETS Ivestmets desigated as FVTPL 15 20,065 42,748 Ivestmet i subsidiaries , ,568 Deferred taxatio asset 18 (c) 1,250 1, , ,566 CURRENT ASSETS Debtors 20(b) Cash ad cash equivalets CURRENT LIABILITIES CREDITORS: Amouts fallig due withi oe year 22(b) (42,996) (46,478) NET CURRENT LIABILITIES (42,279) (45,556) TOTAL ASSETS LESS CURRENT LIABILITIES 208, ,010 CREDITORS: Amouts fallig due after more tha oe year 22(d) (9,000) - NET ASSETS 199, ,010 CAPITAL AND RESERVES Called up share capital preseted as equity 26 7,117 7,117 Reserves 191, ,697 ORDINARY SHAREHOLDERS FUNDS 198, ,814 Preferece share capital 27 1,196 1,196 TOTAL SHAREHOLDERS FUNDS 199, ,010 The Fiacial Statemets were approved by the Board o 02 May 2018 ad siged o its behalf by: Padraig Walshe Chairma James Kae Director The accompayig otes o pages 19 to 49 form a itegral part of the Fiacial Statemets. Farmer Busiess Developmets plc 17 Aual Report 2017

20 Compay Statemet of Chages i Equity For the fiacial year eded 31 December 2017 Called up share capital preseted as equity Reveue reserves Capital Redemptio reserve Preferece share capital Total equity Notes 000s At 1 Jauary , ,398 4,074 1, ,785 Profit for the year 9(b) - 1, ,970 Divideds paid ad approved 14 - (2,745) - - (2,745) At 31 December , ,623 4,074 1, ,010 Profit for the year 9(b) - 27, ,653 Divideds paid ad approved 14 - (2,745) - - (2,745) At 31 December , ,531 4,074 1, ,918 Compay Statemet of Cash Flows For the fiacial year eded 31 December 2017 OPERATING ACTIVITIES Notes Net cash outflow from operatig activities 29 (b) (626) (2,526) CASH FLOW FROM INVESTING ACTIVITIES Sale of quoted ad uquoted ivestmets 15 5,119 5,876 Purchase of quoted ad uquoted ivestmets 15 (1,284) (631) Loa repaymet received from related compay 16 1,189 - Ivestmet i subsidiary 17 (7,146) - NET CASH (OUTFLOW) / INFLOW FROM INVESTMENT ACTIVITIES (2,122) 5,245 CASH FLOW FROM FINANCING ACTIVITIES Proceeds from ew bak borrowigs 8,500 - Loa repaymet (3,000) (2,000) Ordiary ad preferece divideds paid 14 (2,745) (2,745) NET CASH INFLOW / (OUTFLOW) FROM FINANCING ACTIVITIES 2,755 (4,745) INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS FOR THE YEAR 7 (2,026) Cash ad cash equivalets at the begiig of the year 10 2,036 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR Farmer Busiess Developmets plc 18 Aual Report 2017

21 Notes to the Fiacial Statemets For the fiacial year eded 31 December STATEMENT OF ACCOUNTING POLICIES A) GENERAL INFORMATION AND BASIS OF PREPARATION AND ACCOUNTING The Group Fiacial Statemets have bee prepared uder the historical cost covetio as modified to iclude certai items at fair value, ad i accordace with the Compaies Acts 2014 ad Fiacial Reportig Stadard 102 (FRS 102) issued by the Fiacial Reportig Coucil. B) BASIS OF CONSOLIDATION The cosolidated Fiacial Statemets iclude the Fiacial Statemets of the Compay ad its subsidiary udertakigs, made up to 31 December I subsidiary udertakigs, cotrol is achieved where the Compay has the power to gover the fiacial ad operatig policies of a ivestee etity so as to obtai beefits from its activities. The accoutig policies of the subsidiaries are i lie with those used by the Group. All itra Group trasactios, balaces, icome ad expeses are elimiated o cosolidatio. The acquisitio of subsidiaries is accouted for usig the acquisitio method. The cost of acquisitio is measured as the aggregate of the fair values, at the date of exchage, of assets give, liabilities icurred or assumed, ad equity istrumets issued by the Group i exchage for cotrol of the acquiree, plus ay costs directly attributable to the busiess combiatio. The acquiree s idetifiable assets, liabilities ad cotiget liabilities that meet the coditios for recogitio uder FRS102 are recogised at their fair value at the acquisitio date. C) NEGATIVE GOODWILL The excess of the et amout of idetifiable assets, liabilities ad provisios for cotiget liabilities recogised i accordace with FRS 102 over the cost of the busiess combiatio is recogised as egative goodwill o the face of the Balace Sheet at the acquisitio date. Ay excess exceedig the fair value of o-moetary assets acquired is recogised i the Cosolidated Icome Statemet i the periods expected to be beefited. D) TURNOVER Turover recogised i the Cosolidated Icome Statemet accout represets the total ivoice value of goods or services supplied to customers outside the Group durig the year, excludig VAT ad discouts. Turover is recogised to the extet that the Group obtais the right to cosideratio i exchage for its performace. Where paymets are received i advace of goods or services provided, the amouts are recorded as deferred icome ad icluded as part of creditors due withi oe year. Turover o property sales is recogised o sigig of agreemets ad whe the etity has trasferred the sigificat risks ad rewards of owership of the property ad the amout of reveue ca be measured reliably. E) TAXATION AND DEFERRED TAXATION Curret tax, icludig Irish corporatio tax ad foreig tax, is provided at amouts expected to be paid (or recovered) usig the tax rates ad laws that have bee eacted or substatively eacted by the balace sheet date. Deferred tax arises i respect of all timig differeces at the reportig date. Timig differeces are differeces betwee taxable profits ad total comprehesive icome as stated i the fiacial statemets that arise from the iclusio of icome ad expeses i tax assessmets i periods differet from those i which they are recogised i the fiacial statemets. Farmer Busiess Developmets plc 19 Aual Report 2017

22 Notes to the Fiacial Statemets cotiued 1. STATEMENT OF ACCOUNTING POLICIES cotiued E) TAXATION AND DEFERRED TAXATION (cotiued) Deferred tax assets are recogised oly to the extet that is probable that they will be recovered agaist the reversal of deferred tax liabilities or other future taxable profits. They are regarded as recoverable to the extet that, o the basis of available evidece, it ca be regarded as more likely tha ot that there will be suitable taxable profits from which the future reversal of the uderlyig timig differeces ca be deducted. Deferred tax relatig to property, plat ad equipmet measured usig the revaluatio model ad ivestmet property is measured usig the tax rates ad allowaces that apply to the sale of the asset. Where items recogised i other comprehesive icome or equity are chargeable to or deductible for tax purposes, the resultig curret or deferred tax expese or icome is preseted i the same compoet of comprehesive icome or equity as the trasactio or other evet that resulted i the tax expese or icome. Curret tax assets ad liabilities are offset oly whe there is a legally eforceable right to set off the amouts ad the Compay iteds either to settle o a et basis or to realise the asset ad settle the liability simultaeously. Deferred tax assets ad liabilities are offset oly if: a) the Compay has a legally eforceable right to set off curret tax assets agaist curret tax liabilities; ad b) the deferred tax assets ad deferred tax liabilities relate to icome taxes levied by the same taxatio authority o the Compay ad the Compay iteds either to settle curret tax liabilities ad assets o a et basis, or to realise the assets ad settle the liabilities simultaeously, i each future period i which sigificat amouts of deferred tax liabilities or assets are expected to be settled or recovered. F) FOREIGN CURRENCY The idividual fiacial statemets of each compay i the Group are stated i the currecy of the primary ecoomic eviromet i which it operates (its fuctioal currecy). The fuctioal ad the presetatio currecy of the Group Fiacial Statemets is Euro, deoted by the symbol. Trasactios i currecies other tha Euro are recorded at the rates of exchage prevailig o the dates of the trasactios. Moetary assets ad liabilities i foreig currecies have bee traslated ito Euro at closig rates at the reportig date. Gais ad losses o traslatio are recogised i the Cosolidated Icome Statemet i the period i which they arise except whe they relate to items for which gais ad losses are recogised i equity. No-moetary items are traslated at the exchage rate at the date of trasactio. G) RETIREMENT BENEFITS The Group operates a umber of defied cotributio schemes. Costs arisig i respect of the Group s defied cotributio schemes are charged to the cosolidated icome statemet as a expese as they fall due. H) DIVIDENDS Divided icome from ivestmets is recogised whe the shareholders rights to receive paymet have bee established. Divided distributio to the Compay s shareholders is recogised as a liability i the Group s Fiacial Statemets i the period i which the divideds are approved. Farmer Busiess Developmets plc 20 Aual Report 2017

23 1. STATEMENT OF ACCOUNTING POLICIES cotiued I) TANGIBLE FIXED ASSETS AND DEPRECIATION All tagible fixed assets are iitially recorded at historic cost. Followig iitial recogitio, the group values hotel ad golf assets at cost less ay accumulated depreciatio ad ay accumulated impairmet losses. At each reportig date, the directors of the group review the carryig value of its hotel ad golf assets to determie if there is ay idicatio that those assets have suffered a impairmet loss or reversal of a previous impairmet. Depreciatio is provided at rates calculated to write off the cost, less residual value based o prices prevailig at the date of acquisitio, of each asset evely over its expected useful life, over a five to seve-year period. I the case of lad ad buildigs expected useful life is fifty years. J) REVALUATION OF INVESTMENT PROPERTIES Ivestmet properties for which fair value ca be measured reliably without udue cost or effort o a ogoig basis are measured at fair value aually with ay chage recogised i the Cosolidated Icome Statemet. As part of the successful restructurig of the group s debt facilities that was siged subsequet to the fiacial year ed 2017, the group s bakers obtaied idepedet valuatios i 2017 o the group s property assets. The idepedet valuatios idicated a fair value gai o ivestmet property assets. The directors have take accout of these valuatios whe bookig a fair value gai o ivestmet property assets i the curret fiacial year ed. K) INVENTORIES Ivetories acquired as part of a acquisitio are valued at fair value, otherwise they are valued at the lower of cost ad et realisable value after makig due allowace for ay obsolete or slow movig items. Cost icludes all expediture icurred i brigig ivetories to their preset locatio ad coditio. Net realisable value is the estimated sellig price, less further costs expected to be icurred to completio ad disposal. Ivetories iclude developmet lad which the Group ited to dispose ad / or develop i the short to medium term. L) FINANCIAL INSTRUMENTS Fiacial Istrumets are recogised ad measured i accordace with Sectio 12.2(b) of FRS 102 which adopts the provisios of IAS 39 Fiacial Istrumets: Recogitio ad Measuremet. Fiacial Istrumets are recogised i the Cosolidated Balace Sheet whe the Group becomes a party to the cotractual provisios of the istrumet. (i) Ivestmets classified as fair value through profit or loss (FVTPL) Fiacial assets are classified as FVTPL whe the fiacial asset is either held for tradig or it is desigated as FVTPL. A fiacial asset is classified as held for tradig if: it has bee acquired pricipally for the purpose of sellig i the ear term; or o iitial recogitio, it is a part of a portfolio of idetified fiacial istrumets that the Group maages together ad has a recet actual patter of short-term profit-takig; or it is a derivative that is ot desigated ad effective as a hedgig istrumet. Farmer Busiess Developmets plc 21 Aual Report 2017

24 Notes to the Fiacial Statemets cotiued 1. STATEMENT OF ACCOUNTING POLICIES cotiued L) FINANCIAL INSTRUMENTS (cotiued) A fiacial asset other tha a fiacial asset held for tradig may be desigated as FVTPL upo iitial recogitio if: such desigatio elimiates or sigificatly reduces a measuremet or recogitio icosistecy that would otherwise arise; or the fiacial asset forms part of a group of fiacial assets or fiacial liabilities or both, which is maaged ad its performace is evaluated o a fair value basis, i accordace with the Group s documeted risk maagemet or ivestmet strategy, ad iformatio about the groupig is provided iterally o that basis; or it forms part of a cotract cotaiig oe or more embedded derivatives, the etire combied cotract (asset or liability) may be desigated as FVTPL. Fiacial assets at FVTPL are stated at fair value, with ay gais or losses arisig o re-measuremet recogised i the Cosolidated Icome Statemet. (ii) Available for sale ivestmets (AFS) Available for sale ivestmets of the Group iclude its shareholdig i FBD Holdigs plc. This ivestmet is stated at fair value, usig the closig bid price, with urealised gais ad losses recogised as a revaluatio surplus or deficit i the revaluatio reserve i the year i which they arise. I the accouts of the subsidiary compay, Farmer Busiess Developmets Assets Ltd, the ivestmet is stated at fair value usig the closig bid price, with urealised gais ad losses reflected through the Cosolidated Icome Statemet. (iii) Deposits Term deposits with baks comprise cash held for the purpose of ivestmet. Demad deposits with baks are held for operatig purposes. (iv) Loas ad receivables Loas are iitially measured at fair value plus trasactio costs ad subsequetly carried at amortised cost less ay impairmet usig the effective iterest rate method. The effective iterest method is a method of calculatig the amortised cost of a debt istrumet ad of allocatig iterest icome over the relevat period. The effective iterest rate is the rate that exactly discouts estimated future cash receipts through the expected life of the debt istrumet, or, where appropriate, a shorter period, to the et carryig amout of iitial recogitio. Iterest is charged o the loas at the market rate. (v) Ivestmet i Group compay Fiacial assets represetig the Compay s ivestmet i subsidiary udertakigs are stated at cost less provisio for ay permaet dimiutio i value. Farmer Busiess Developmets plc 22 Aual Report 2017