Annual Financial Report

RNS Number : 8432C

ARGO Group Limited

14 March 2011

 



Argo Group Limited

("Argo" or the "Company")

Annual Report and Accounts for the Year ended 31 December 2010

Argo today announces its final results for the year ended 31 December 2010.

The Company will today make available its report and accounts for the year ended 31 December 2010 on the Company's website www.argogrouplimited.com.

Key highlights for the twelve months ended 31 December 2010

-     Steady performance across most of the Argo funds

-     Revenues US$10.9 million (2009: US$11.7 million)

-     Operating profit US$1.2 million (2009: US$0.9 million)

-     Profit before tax US$2.5 million (2009: US$2.4 million)

-     Maintained balance sheet strength - net assets US$44.5 million (2009: US$44.5 million) after dividend payment and share buybacks totalling US$1.7 million (2009: Nil)

-     Final dividend paid - 1.0p per share (2009: Nil) in respect of year ended 31 December 2009

-     Final dividend declared on 11 March 2011 - 1.2p per share (2009:1.0p) in respect of year ended 31 December 2010

Commenting on the results and outlook, Kyriakos Rialas, Chief Executive of Argo said:

"Argo has made very good progress in a particularly challenging and difficult environment. During the year we paid a dividend and carried out the successful buyback of shares whilst still maintaining our strong balance sheet and liquidity. Our profitability remains consistent and we have continued confidence about the future of the business and the outlook for new asset gathering."

Enquiries

Argo Group Limited

Andreas Rialas

020 7535 4000

Panmure Gordon

Dominic Morley

020 7459 3600

CHAIRMAN'S STATEMENT

Business and operational review

Argo is pleased to report another profitable set of results for the year ended 31 December 2010.

Argo's primary business is to deliver a diversified approach to investing in emerging markets. Its investment objective is to provide investors with absolute returns in the six funds that it manages by investing in, inter alia, fixed income, special situations, local currencies and interest rate strategies, private equity, real estate, quoted equities, high yield corporate debt and distressed debt, although not every fund invests in each of these asset classes. Argo has a performance track record dating back to 2000 and this year celebrates its tenth anniversary.

Emerging markets continued to see large investment inflows last year, with a high proportion destined for long-only mutual funds. We believe that higher volatility - as witnessed in recent weeks - may weaken the attractiveness of such funds and that emerging market inflows should in time benefit the more actively managed hedge fund strategies. Our marketing team identified a number of potential leads during the period under review, and it is hoped that the funds will be able to raise more new money during the course of 2011.

For the year ended 31 December 2010 the Group generated revenues of US$10.9 million (2009: US$11.7 million) with management fees accounting for US$10.0 million (2009: US$10.9 million); the largest funds have yet to regain their high-water mark. Cost reductions mitigated the impact of slightly lower revenues with total costs falling to US$9.7 million (2009: US$10.8 million) as a direct result of the cost saving initiatives the Group implemented earlier. Overall, operating profit for the year was US$1.2 million (2009: US$0.9 million) and earnings per share were US$0.03 (2009: US$0.04).

Argo has maintained its strong balance sheet with over US$27.5 million (2009: US$26.6 million) in net current assets.  The Group has held  its net asset position of US$44.5 million (2009: US$44.5 million) despite  paying a dividend of US$1.1 million (2009: Nil) and buying back shares at a total cost of US$605,000 (2009: Nil).The Company's investment in The Argo Fund ("TAF") continues to generate a return on assets well in excess of the prevailing rates available from bank deposits.

The Group employed 26 people (2009: 26) at the end of the year. In order to retain and properly incentivise its qualified personnel, the Company paid its employees variable compensation in the form of a cash bonus and intends to continue such practice in the aggregate amount of 30%-50% of profit before tax. It is also planned to issue stock options to further incentivise personnel and to align their interests with those of the shareholders of the Company.

Fund performance

Performance across the range of Argo funds was mixed for the year ended 31 December 2010, but the three main funds TAF, Argo Global Special Situations Fund SP ("AGSSF"), a segregated portfolio of the Argo Capital Investors Fund SPC, and Argo Distressed Credit Fund ("ADCF") all showed positive annual returns in the 8-10% range.  

The generally optimistic tone experienced in the first quarter of the year gave way to concern over the fiscal imbalances and credit metrics of peripheral European economies, most notably Greece and Ireland. Amidst mounting speculation concerning sovereign defaults, restructurings and the status of the Euro as a reserve currency, markets became very volatile and difficult to trade. Our hedge funds navigated the volatility by maintaining some short positions and then benefited from a better tone in the latter part of 2010.

The Argo Funds

Fund	Launch               date	2010   Year   total	2009 Year total	Since inception	Annualised performance	Sharpe      ratio	Down      months	AUM
		%	%	%	CAGR %			US$m
The Argo Fund	Oct-00	8.55	12.18	134.26	9.50	0.80	16 of 123	109.3
Argo Global Special Situations Fund	Aug-04	8.21	12.85	48.34	6.95	0.65	17 of 77	92.2
AGSSF Holdings	Feb-09	-1.50	7.72	6.10	3.40	0.45	11 of 23	80.4
Argo Distressed Credit Fund	Oct-08	10.32	11.06	23.12	9.58	1.39	8 of 27	22.8
Argo Real Estate Opportunities Fund	Aug-06	2.65	-78.47	-72.37	-29.38	N/A	N/A	35.9*
Argo Capital Partners Fund	Aug-06	-3.97	-2.83	20.80	4.50	N/A	N/A	62.6
Total								403.2

* NAV only officially measured twice a year, March and September.

TAF and AGSSF recorded a pleasing annual return of 8.55% and 8.21% respectively and ADCF continued to build a solid track record of returns achieving 10.32% in the year to 31 December 2010 after the 11.06% recorded in 2009.

AGSSF Holdings Limited ("AHL") comprises assets that are currently more difficult to liquidate. In the year ended 31 December 2010 it delivered a return of -1.50%, an improvement on the -5.49% in the six months to 30 June 2010 but down from 7.72% in the year to 31 December 2009. This performance was in part driven by exchange rate fluctuations and despite difficult market conditions we believe that we are nearer to creating liquidity events for investors in the Fund.

The Argo Real Estate Opportunities Fund Limited ("AREOF") continues to operate in a particularly challenging and difficult environment in which regional and global property markets have remained weak. However, 2010 has seen a general stabilisation in the economic downturn, albeit at a low level, as the numbers of retailer bankruptcies and requests for rental concessions have materially decreased since the same period in 2009. Whilst AREOF has reported a further write down of investment property values in the financial year to 30 September 2010 it has successfully renegotiated and agreed terms with its bankers and continues to maintain tenant occupancy at around 97%-98%. Phase 3 of the 83,000 sqm Riviera Shopping City, Odessa, Ukraine was completed in summer 2010.  The Fund's adjusted Net Asset Value was US$35.9 million (€27.1 million) as at 30 September 2010, compared with US$37.8 million (€26.4 million) a year earlier.

Argo Capital Partners Fund ("ACPF"), a private equity fund closed to new subscriptions, is now invested in four projects. ACPF reported a negative return of 3.97% for the year (2009: -2.83%). This Fund has suffered mainly from the lack of liquidity and demand for private equity assets in emerging markets. Whilst the intention was to sell some portfolio investments in 2010 it is disappointing that difficult operating conditions hindered this process. However, in February 2010 we did exit with profit (two times money to the fund) from one of the smaller investments, a generic pharmaceutical company in Peru, through a sale to Teva Pharmaceutical and it is hoped that further disposals will occur in the current year.

Assets under management ("AUM")

During the year AUM decreased from US$439.5 million to US$403.2 million. Despite positive fund performance the Group experienced an 8.3% (US$36.3 million) decline in AUM largely due to continuing, albeit declining, net redemptions throughout the year and Euro/Dollar foreign exchange volatility. Since the year end redemptions have arisen solely in AGSSF, this being the only fund that has retained its original gate conditions.

Dividends and share purchase programme

Underlining the Board's confidence in the future prospects of the Group, the directors recommend a final dividend of 1.2p per share (2009: 1.0p). The final dividend will be paid on 22 June 2011 to shareholders who are on the Register of Members on 27 May 2011. The final dividend for the year ended 31 December 2009 of US$1,125,888 was paid on 23 June 2010 to ordinary shareholders who were on the Register of Members on 28 May 2010. Going forward, the Company intends, subject to its financial performance, to pay a final dividend each year.

During the year the directors authorised the repurchase of 3,268,126 shares at a total cost of US$605,000. The directors intend to continue with their share purchase programme on a rolling basis up to a maximum total value of US$2 million over a period of 12 months commencing from 1 April each year.

The directors firmly believe that a return of excess cash to shareholders through dividends and buy-backs will send a positive message to investors in the Company.

Outlook

The Board is satisfied with the Group's current cost base and its alignment with the lower AUM. Costs are appropriate and are reviewed periodically so as to optimise the efficient deployment of Company resources.

More emphasis is being placed on direct communication with existing and new fund investors with the purchase of two databases to assist in growing the funds with additional subscriptions.

Management has recently observed greater mobility and a new air of optimism in the market conditions that will affect positively the workout of some of the less liquid and private equity transactions in the funds. A significant number of man hours is being spent on such transactions and there is continuous communication with investors about the funds' performance.

The Group's priorities continue to be the achievement of consistent investment performance and increasing AUM both of which the Group has the capacity to achieve without a corresponding increase in costs. Emerging markets remain attractive and despite the continuing challenges posed by the global markets for asset gathering the Board is confident about the future of the business and believes that special situations strategies will outperform in the coming year.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

YEAR ENDED 31 DECEMBER 2010

		Year ended		Year ended
		31 December		31 December
		2010		2009
	Note	US$'000		US$'000
Management fees		10,034		10,900
Incentive fees		434		437
Other income		480		352
Revenue	2(e), 3	10,948		11,689
Legal and professional expenses		(614)		(866)
Management and incentive fees payable	2(f)	(444)		(263)
Operational expenses		(1,931)		(1,870)
Employee costs	4	(5,864)		(7,222)
Foreign exchange (loss)/gain		(134)		269
Amortisation of intangible assets	9	(651)		(692)
Depreciation	10	(99)		(119)
Operating profit	6	1,211		926
Interest income on cash and cash equivalents		57		134
Unrealised gain on investments		1,226		1,361
Profit on ordinary activities before taxation	3	2,494		2,421
Taxation	7	(267)		387
Profit for the year after taxation attributable to members of the Company	8	2,227		2,808
Other comprehensive income
Exchange differences on translation of foreign operations		(469)		785
Total comprehensive income for the year		1,758		3,593

		Year ended		Year ended
		31 December		31 December
		2010		2009
		US$		US$
Earnings per share (basic)	8	0.03		0.04
Earnings per share (diluted)	8	0.03		0.04

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2010

		At 31 December		At 31 December
		2010		2009
	Note	US$'000		US$'000
Assets
Non-current assets
Intangible assets	9	16,719		17,557
Fixtures, fittings and equipment	10	41		136
Loans and advances receivable	14	253		226
		17,013		17,919
Current assets
Investments	11	15,563		14,337
Trade and other receivables	12	1,312		1,972
Cash and cash equivalents	13	11,907		13,069
Loans and advances receivable	14	5		36
		28,787		29,414
Total assets	3	45,800		47,333
Equity and liabilities
Equity
Issued share capital	15	737		769
Share premium		32,199		32,772
Revenue reserve		13,749		12,648
Foreign currency translation reserve	2(d)	(2,139)		(1,670)
Total equity		44,546		44,519
Current liabilities
Trade and other payables	16	1,054		2,692
Taxation payable	7	200		122
Total current liabilities	3	1,254		2,814
Total equity and liabilities		45,800		47,333

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

YEAR ENDED 31 DECEMBER 2010

	Issued share capital	Share premium	Revenue reserve	Foreign currency translation reserve	Total
	2009	2009	2009	2009	2009
	US$'000	US$'000	US$'000	US$'000	US$'000
As at 1 January 2009	769	32,772	9,840	(2,455)	40,926
Total comprehensive income
Profit for the period after taxation	-	-	2,808	785	3,593
As at 31 December 2009	769	32,772	12,648	(1,670)	44,519

	Issued share capital	Share premium	Revenue reserve	Foreign currency translation reserve	Total
	2010	2010	2010	2010	2010
	US$'000	US$'000	US$'000	US$'000	US$'000
As at 1 January 2010	769	32,772	12,648	(1,670)	44,519
Total comprehensive income
Profit for the period after taxation	-	-	2,227	(469)	1,758
Transactions with owners recorded directly in equity
Dividends to equity holders (Note 15)	-	-	(1,126)	-	(1,126)
Purchase of own shares (Note 15)	(32)	(573)	-	-	(605)
As at 31 December 2010	737	32,199	13,749	(2,139)	44,546

CONSOLIDATED STATEMENT OF CASH FLOWS

YEAR ENDED 31 DECEMBER 2010

		Year ended		Year ended
		31 December		31 December
		2010		2009
	Note	US$'000		US$'000
Net cash inflow from operating activities	18	932		3,003
Cash flows from investing activities
Interest received on cash and cash equivalents		57		134
Purchase of current asset investments	11	-		(11,000)
Purchase of fixtures, fittings and equipment	10	(8)		(23)
Net cash used in investing activities		49		(10,889)
Cash flows from financing activities
Repurchase of own shares		(605)		-
Dividends paid		(1,126)		-
Net cash used in financing activities		(1,731)		-
Net decrease in cash and cash equivalents		(750)		(7,886)
Cash and cash equivalents at 1 January 2010 and 1 January 2009		13,069		20,058
Foreign exchange (loss)/gain on cash and cash equivalents		(412)		897
Cash and cash equivalents as at 31 December 2010 and 31 December 2009		11,907		13,069

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2010

1.       CORPORATE INFORMATION

         The Company was incorporated on 14 February 2008 in the Isle of Man under the Companies Act 2006 and started to trade on 13 June 2008.  Its registered office is at 33-37 Athol Street, Douglas, Isle of Man, IM1 1LB and the principal place of business is at 10 Vasilissis Frederikis Street, 1066 Nicosia, Cyprus. The principal activity of the Company is that of a holding company and the principal activity of the wider Group is that of an investment management business. The functional and presentational currency of the Group undertakings is US dollars.  The Group has 26 (2009: 26) employees.

         Wholly owned subsidiaries                                                   Country of incorporation

Argo Capital Management (Cyprus) Limited	Cyprus
Argo Capital Management Limited	United Kingdom
Argo Capital Management Property Limited	Cayman Islands
Argo Capital Management (Asia) Pte. Ltd.	Singapore
North Asset Management Srl	Romania
North Asset Management Sarl	Luxembourg
Argo Investor Services AG	Switzerland

2.       ACCOUNTING POLICIES

(a)     Accounting convention

         These consolidated financial statements have been prepared on a historical cost basis, except for the revaluation of certain financial instruments, and in accordance with International Financial Reporting Standards. 

          These accounts have been prepared on the basis that the Company is a going concern.

(b)    Basis of consolidation

         The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries. Subsidiaries are consolidated from the date upon which control is transferred to the Company and cease to be consolidated from the date upon which control is transferred from the Company.

         Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the Company. All intra-group transactions, balances, income and expenses are eliminated on consolidation.

(c)    Business combinations

        The acquisition of subsidiaries is accounted for using the acquisition method. The cost of the acquisition is measured at the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed and equity instruments issued by the Group in exchange for control of the acquiree, plus any costs directly attributable to the business combination.

         The acquiree's identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 are recognised at their fair value at the acquisition date.

        Goodwill             

        Goodwill arising on the consolidation represents the excess of the cost of the acquisition over the Company's interest in the fair value of the identifiable assets and liabilities of a subsidiary at the date of acquisition. Any excess of the Company's interest in the fair value of the identifiable assets and liabilities over the cost of the acquisition (negative goodwill) is immediately recognised in the Consolidated Statement of Comprehensive Income. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. Goodwill which is recognised as an asset is reviewed at least annually for impairment. Any impairment is recognised immediately in the Consolidated Statement of Comprehensive Income.

         Intangible assets

The Group's principal intangible asset is a fund management contract recorded at directors' valuation at the date of acquisition. The directors' valuation is based on the underlying share price of the vendor and its assets under management at the time of acquisition. This intangible asset has a finite life and is amortised on a straight line basis over the period of the contract. Impairment tests are undertaken annually to determine any diminution in the recoverable amount below carrying value. The Group does not capitalise internally generated goodwill or intangible assets.

         Impairment of intangible assets  

                  At each balance sheet date the Group reviews the carrying amounts of its intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any.

         Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have been adjusted.

                  If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

(d)    Foreign currency translation

The consolidated financial statements are expressed in US dollars. Transactions denominated in currencies other than US dollars have been translated at the rate of exchange prevailing at the date of the transaction.  Assets and liabilities in other currencies are translated to US dollars at the rates of exchange prevailing at the balance sheet date. The resulting profits or losses are reflected in the Consolidated Statement of Comprehensive Income.

For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group's foreign operations are translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the year. Exchange differences arising, if any, are classified as equity and transferred to the Group's foreign currency translation reserve.  Such translation differences are recognised in the Consolidated Statement of Comprehensive Income as income or as expenses in the year of the operation's disposal.

(e)    Revenue

        Revenue is recognised to the extent that it is probable that economic benefit will flow to the Group and the revenue can be reliably measured.

        Management and incentive fees receivable

        The Group recognises revenue for providing management services to mutual funds. Revenue accrues on a monthly basis on completion of management services and is based on the assets under management of each mutual fund. 

         Incentive fees generally arise monthly or annually, however for the Argo funds incentive fees may arise monthly, annually or on realisation of an investment. In addition, for the Argo Real Estate Opportunities Fund Ltd (managed by Argo Capital Management Property Ltd) incentive fees may be triggered at any time on realisation of a property asset.

        Management and incentive fees receivable (continued)

        The management and incentive fees receivable from the Argo Real Estate Opportunities Fund Ltd are defined in the management contract between that company and Argo Capital Management Property Ltd. The management contract has a fixed term expiring on 26 July 2013.

(f)     Management and incentive fees payable

        The Group pays management and incentive fees based on a proportion of fees receivable from mutual funds. Fees payable are accrued on a monthly basis consistent with revenue streams earned.

(g)    Depreciation

Plant and equipment is initially recorded at cost and depreciated on a straight-line basis over the expected useful lives of the assets as follows:

Leasehold                                                                         33 1/3% per annum

Fixtures and fittings                                                            10% to 33 1/3% per annum

Office equipment                                                               10% to 33 1/3% per annum

Computer equipment and software                                       20% to 33 1/3% per annum

(h)    Investments held at fair value through profit or loss

                 All investments are classified as held at fair value through profit or loss. Investments are initially recognised at fair value. Transaction costs are expensed as incurred.

         After initial recognition, investments are measured at fair value, with unrealised gains and losses on investments and impairment of investments recognised in the Consolidated Statement of Comprehensive Income.  Investments held at fair value in managed mutual funds are valued at fair value of the net assets as provided by the administrators of those funds. Investments in the management shares of The Argo Fund Ltd, Argo Capital Investors Fund SPC, Argo Capital Partners Fund Ltd, Argo Distressed Credit Fund Limited and AGSSF Holdings Limited are stated at fair value, being the recoverable amount.

(i)     Trade date accounting

                  All 'regular way' purchases and sales of financial assets are recognised on the 'trade date', i.e. the date that the entity commits to purchase or sell the asset. Regular way purchases or sales are purchases or sales of financial assets that require delivery of the asset within the time frame generally established by regulation or convention in the market place.

(j)     Financial instruments

Financial assets and liabilities are recognised on the Consolidated Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Non-derivative financial instruments include trade and other receivables, cash and cash equivalents, loans and borrowings and trade and other payables. The initial and subsequent measurement of non-derivative financial instruments is dealt with below.

         Trade and other receivables

Trade and other receivables do not carry any interest and are stated at their original invoice amount as reduced by appropriate allowances for estimated irrecoverable amounts. An estimate for doubtful debts is made when collection is no longer probable. Bad debts are written off when identified.

        Cash and cash equivalents

        Cash and cash equivalents are defined as cash in hand, demand deposits and short-term, highly liquid investments which are readily convertible to known amounts of cash, subject to insignificant risk of changes in value, and have a maturity of less than six months from the date of acquisition.

         For the purposes of the cash flow statement, cash and cash equivalents consist of cash in hand and bank deposits.

Trade payables

Trade payables are not interest bearing and are stated at their nominal value.

(k)     Loans and borrowings

                  All loans and borrowings payable are initially recognised at cost, calculated as the fair value of the consideration received less issue costs where applicable. After initial recognition, all interest-bearing loans and borrowings are subsequently measured at amortised cost. Amortised cost is calculated by using the effective interest method, taking into account any issue costs, and discounts and premiums on settlement.

                  All loans and borrowings receivable are initially recognised at cost and subsequently measured at amortised cost.

 (l)    Current taxation

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amounts are those enacted or substantially enacted by the balance sheet date.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the Consolidated Statement of Comprehensive Income because it excludes items of income or expense that are taxable or deductible in other periods or because it excludes items that are never taxable or deductible. 

(m)    Deferred taxation

                  Deferred income tax is provided for using the liability method on temporary timing differences at the balance sheet date between the tax basis of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax liabilities are recognised in full for all temporary differences. Deferred tax assets are recognised for all deductible temporary differences, carried forward unused tax credits and unused tax losses to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and carry-forward of unused tax credits and unused losses can be utilised.

         The carrying amount of deferred income tax assets is revalued at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that is probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability settled, based on tax rates that have been enacted or substantively enacted at the balance sheet date.

 (n)    Accounting estimates, assumptions and judgements

The preparation of the consolidated financial statements necessitates the use of estimates, assumptions and judgements. These estimates, assumptions and judgements affect the reported amounts of assets, liabilities and contingent liabilities at the balance sheet date as well as affecting the reported income and expenses for the year.  Although the estimates are based on management's knowledge and best judgment of information and financial data, the actual outcome may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis.  Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that and prior periods, or in the period of the revision and future periods if the revision affects both current and future periods.

In the process of applying the Group's accounting policies, which are described above, management has made the following judgements that have the most significant effect on the amounts recognised in the consolidated financial statements:

-     Management and incentive fees

-     Intangibles (see note 9)

It has been assumed that, when available, the audited financial statements of the funds under the Group's management will confirm the net asset values used in the calculation of management and performance fees receivable.

(o)    Operating leases

Costs in respect of operating leases are charged on a straight line basis over the lease term. Benefits, such as rent free periods, received and receivable as incentives to take on operating leases are spread on a straight line basis over the lease term, or, if shorter than the full lease term, over the period to the review date on which the rent is first expected to be adjusted to the prevailing market rent.

(p)    Financial Instruments and Fair Value Hierarchy

The following represents the fair value hierarchy of financial instruments measured at fair value in the Statement of Financial Position. The hierarchy groups financial assets and liabilities into three levels based on the significance of inputs used in measuring the fair value of the financial assets and liabilities. The fair value hierarchy has the following levels:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The level within which the financial asset or liability is classified is determined based on the lowest level of significant input to the fair value measurement.

 (q)   Changes in accounting policies

New standards and interpretations not yet adopted

A number of new standards, amendments to standards and interpretations are not yet effective for the year, and have not been applied in preparing these consolidated financial statements:

New/Revised International Accounting Standards/International        Financial Reporting Standards (IAS/IFRS)	Effective date (accounting periods commencing  after)
IAS 24  Related Party Disclosures -  Revised definition of related parties	1 January 2011
IFRS 7  Financial Instruments: Disclosures - Addition of explicit statement that           qualitative disclosures to be made in the context of quantitative           disclosures	1 January 2011
IFRS 7  Financial Instruments: Disclosures - Amendments relating to enhancing           disclosures about transfers of financial assets	1 July 2011
IAS 1    Presentation of Financial Statements - Amendments clarifying that the           analysis of other comprehensive income may be presented either in the           Statement of Changes in Equity or in the notes to the accounts	1 January 2011
IAS 32  Financial Instruments: Presentation -  Amendments relating to                classification of rights issues	1 February 2010
IFRS 9  Financial Instruments - part of IASB's wider project to replace IAS 39           Financial Instruments: Recognition and Measurement. The standard           retains but simplifies the mixed measurement model and establishes two           primary measurement categories for financial assets and liabilities:           amortised costs and fair  value. The guidance on IAS 39 on impairment           of financial assets and hedge accounting continues to apply	1 January 2013
IAS 12  Deferred Tax: Recovery of Underlying Assets - Amendments introduce           presumption that carrying amount of the underlying assets will normally           be through sale	1 January 2012
IFRS 3  Business Combinations  - Improvements clarifying contingent           consideration arising in a business combination; limitation on accounting           policy choice to measure non-controlling interests upon initial           recognition and  expansion on the requirement to allocate the market-           based measure of replacement awards between the consideration           transferred and post-combination remuneration applies to           all replacement awards	1 July 2010
IAS 27  Consolidated and Separate Financial Statements  - Amendments clarify           that the consequential amendments to IAS 21 The Effects of Changes           in Foreign Exchange Rates, IAS 28 and IAS 31 resulting from IAS 27           (2008) should be applied prospectively, with the exception of           amendments resulting from renumbering	1 July 2010

The directors do not expect the adoption of these standards and interpretations to have a material impact on the Group's financial statements in the period of initial application, except for IFRS 9 Financial Instruments, which becomes mandatory for the Group's 2013 consolidated financial statements and could change the classification and measurement of financial assets. The Group does not plan to adopt this standard early and the extent of the impact has not been determined.

Any standard adopted during the year has presentational impact only; it is therefore not necessary to adjust comparative information.

(r)     Dividends payable

Interim and final dividends are recognised when declared.

3.      SEGMENTAL ANALYSIS

The Group operates as a single asset management business.

The operating results of the companies set out in note 1 above are regularly reviewed by the directors of the Group for the purposes of making decisions about resources to be allocated to each company and to assess performance. The following summary analyses revenues, profit or loss, assets and liabilities:

	Argo Group Ltd	Argo Capital Management (Cyprus) Limited	Argo Capital Management Limited	Argo Capital Management Property Limited	Other	Year ended 31 December
	2010	2010	2010	2010	2010	2010
	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000
Revenues from external customers	-	7,845	38	3,063	2	10,948
Intersegment revenues	3,084	-	3,057	-	547	6,688
Reportable segment  profit/(loss)	3,692	1,699	(1,283)	(1,737)	127	2,498
Intersegment profit/(loss)	3,084	(4,500)	3,057	(2,257)	547	(69)
Reportable segment assets	47,455	5,112	4,622	2,881	603	60,673
Reportable segment liabilities	88	514	851	80	43	1,576

Revenues, profit or loss, assets and liabilities may be reconciled as follows:	Year ended
	31 December
	2010
	US$'000
Revenues
Total revenues for reportable segments	17,636
Elimination of intersegment revenues	(6,688)
Group revenues	10,948
Profit or loss
Total profit for reportable segments	2,498
Elimination of total intersegment losses	69
Other unallocated amounts	(73)
Profit on ordinary activities before taxation	2,494
Assets
Total assets for reportable segments	60,673
Elimination of intersegment receivables	(325)
Elimination of Company's cost of investments	(14,548)
Group assets	45,800
Liabilities
Total liabilities for reportable segments	1,576
Elimination of intersegment payables	(322)
Group liabilities	1,254

	Argo Group Ltd	Argo Capital Management (Cyprus) Limited	Argo Capital Management Limited	Argo Capital Management Property Limited	Argo Investor Services Ltd	Other	Year ended  31 December
	2009	2009	2009	2009	2009	2009	2009
	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000
Revenues from external customers	-	8,587	-	3,085	-	17	11,689
Intersegment revenues	11,705	-	3,409	-	-	574	15,688
Reportable segment profit/(loss)	10,863	(8,272)	(2,068)	304	(2,349)	(105)	(1,627)
Intersegment profit/(loss)	11,705	(15,424)	3,409	-	(226)	574	38
Reportable segment assets	45,463	4,070	6,801	5,300	76	475	62,185
Reportable segment liabilities	56	911	1,602	405	26	117	3,117

Revenues, profit or loss, assets and liabilities may be reconciled as follows:	Year ended
	31 December
	2009
	US$'000
Revenues
Total revenues for reportable segments	27,377
Elimination of intersegment revenues	(15,688)
Group revenues	11,689
Profit or loss
Total loss for reportable segments	(1,627)
Elimination of total intersegment profits	(38)
Other unallocated amounts	4,086
Profit on ordinary activities before taxation	2,421
Assets
Total assets for reportable segments	62,185
Elimination of intersegment receivables	(304)
Elimination of Company's cost of investments	(14,548)
Group assets	47,333
Liabilities
Total liabilities for reportable segments	3,117
Elimination of intersegment payables	(303)
Group liabilities	2,814

4.      EMPLOYEE COSTS

	Year ended		Year ended
	31 December		31 December
	2010		2009
	US$'000		US$'000
Wages and salaries	5,399		6,571
Social security costs	421		550
Pension costs	-		41
Other	44		60
	5,864		7,222

5.      KEY MANAGEMENT PERSONNEL REMUNERATION

   Included in employee costs are payments to:

	Year ended		Year ended
	31 December		31 December
	2010		2009
	US$'000		US$'000
Directors and key management personnel	3,561		3,680

          The remuneration of the Directors of the Company for the year was as follows:

					Year ended	Year ended
					31 December	31 December
	Salaries	Fees	Benefits	Cash bonus	2010	2009
	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000
Executive Directors
Kyriakos Rialas	226	-	-	304	530	558
Andreas Rialas	223	-	2	475	700	738
Non-Executive Directors
Michael Kloter	-	74	-	-	74	70
David Fisher	-	39	-	-	39	39
Ken Watterson	-	39	-	-	39	39

6.      OPERATING PROFIT

Operating profit is stated after charging:

	Year ended		Year ended
	31 December		31 December
	2010		2009
	US$'000		US$'000
Auditors' remuneration	111		117
Depreciation	99		119
Amortisation	651		692
Directors' fees	2,592		2,543
Operating lease payments	530		624

7.      TAXATION

         Taxation rates applicable to the parent company and the Cypriot, UK, Singaporean, Luxembourg, Swiss and Romanian subsidiaries range from 0% to 28% (2009: 0% to 28%).

         Income Statement

	Year ended		Year ended
	31 December		31 December
	2010		2009
	US$'000		US$'000
Taxation charge/(credit) for the year on Group companies	273		(387)
Over provision in respect of prior years	(6)		-
Tax on profit on ordinary activities	267		(387)

The tax charge/(credit) for the year can be reconciled to the profit per the Consolidated Statement of Comprehensive Income as follows:

	Year ended		Year ended
	31 December		31 December
	2010		2009
	US$'000		US$'000
Profit before tax	2,494		2,421
Applicable Isle of Man tax rate for Argo Group Limited of 0%	-		-
Timing differences	16		(7)
Non-deductible expenses	16		11
Non-taxable income	(14)		(12)
Other adjustments	(4)		(131)
Tax effect of different tax rates of subsidiaries operating in other jurisdictions	253		(248)
Tax charge	267		(387)

         Balance Sheet

	At 31 December		At 31 December
	2010		2009
	US$'000		US$'000
Corporation tax payable	200		122

8.      EARNINGS PER SHARE

         Earnings per share is calculated by dividing the net profit for the period by the weighted average number of shares outstanding during the period.

	Year ended		Year ended
	31 December		31 December
	2010		2009
	US$'000		US$'000
Net profit for the year after taxation attributable to members	2,227		2,808
	No. of shares		No. of shares
Weighted average of ordinary shares for basic earnings per share	75,150,213		76,931,620
Effect of dilution	-		-
Weighted average number of ordinary shares for diluted earnings per share	75,150,213		76,931,620

	Year ended		Year ended
	31 December		31 December
	2010		2009
	US$		US$
Earnings per share (basic)	0.03		0.04
Earnings per share (diluted)	0.03		0.04

9.      INTANGIBLE ASSETS

	Fund management contracts
	US$'000
Cost
At 1 January 2009	18,490
Foreign exchange movement	247
At 31 December 2009	18,737
Foreign exchange movement	(79)
At 31 December 2010	18,658
Amortisation and impairment
At 1 January 2009	380
Amortisation of Argo business intangible assets	692
Foreign exchange movement	108
At 31 December 2009	1,180
Amortisation of Argo business intangible assets	651
Foreign exchange movement	108
At 31 December 2010	1,939
Net book value
At 31 December 2009	17,557
At 31 December 2010	16,719

The Group tests intangible assets annually for impairment, or more frequently if there are indications that the intangible assets may be impaired.  The recoverable amounts of the intangible assets that have been reviewed for impairment are separately identifiable business units within the Group.  The value in use approach has been used as the businesses were not considered saleable in their current form due to certain factors, the main being reliance on certain key individuals.

At the balance sheet date the carrying value of goodwill was US$14.9m (2009: US$14.9m).

The key assumptions on which the directors have based their five year discounted cash flow analysis are a pre-tax discount rate of 15% (2009: 15%), an inflation rate of 5% (2009: 5%) and a growth in assets under management (which determine management and performance fee income) of 10% to 12.5% (2009: 15% to 20%), with 3.0% to 3.75% (2009: 4.5% to 6%) of this estimated to be from annual profits. The assumption of growth in assets under management has been based on the historic performance of the funds. The calculations use cash flow projections based on actual operating results. The result of this review has been compared to the carrying value of goodwill and accordingly the directors have concluded that there is no impairment to goodwill. As an added sensitivity, if the estimated discount rate applied to the discounted cash flows had been 25% higher (2009: 25% higher) or the growth rate of assets under management had been 25% lower (2009: 25% lower) there would still have been no impairment of goodwill as the net present value of future cash flows would still have been higher than the carrying value of goodwill.

At the balance sheet date the carrying value of the Argo Real Estate Opportunities Fund Limited management contract is US$1.8m (2009: US$2.6m), net of amortisation. The intangible asset has been amortised over 5 years and 44 days, being the remaining period of the contract from the date of acquisition.

10.     FIXTURES, FITTINGS AND EQUIPMENT

	Fixtures, fittings & equipment
	US$ '000
Cost
At 1 January 2009	315
Additions	23
Disposals	(25)
Foreign exchange movement	(14)
At 31 December 2009	299
Additions	8
Disposals	-
Foreign exchange movement	(12)
At 31 December 2010	295
Accumulated Depreciation
At 1 January 2009	78
Depreciation charge for period	119
Disposals	(3)
Foreign exchange movement	(31)
At 31 December 2009	163
Depreciation charge for period	99
Disposals	-
Foreign exchange movement	(8)
At 31 December 2010	254
Net book value
At 31 December 2009	136
At 31 December 2010	41

11.     INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

		At 31 December		At 31 December
		2010		2010
Holding	Investment in management shares	Total cost		Fair value
		US$ '000		US$ '000
10	The Argo Fund Ltd	-		-
10	Argo Capital Investors Fund SPC	-		-
10	Argo Capital Partners Fund	-		-
100	Argo Distressed Credit Fund Ltd	-		-
100	AGSSF Holdings Ltd	-		-
		-		-

Holding	Investment in ordinary shares	Total cost		Fair value
		US$ '000		US$ '000
66,435	The Argo Fund Ltd	14,343		15,563
		14,343		15,563

		At 31 December		At 31 December
		2009		2009
Holding	Investment in management shares	Total cost		Fair value
		US$ '000		US$ '000
10	The Argo Fund Ltd	-		-
10	Argo Capital Investors Fund SPC	-		-
10	Argo Capital Partners Fund Ltd	-		-
100	Argo Distressed Credit Fund Ltd	-		-
100	AGSSF Holdings Ltd	-		-
		-		-

Holding	Investment in ordinary shares	Total cost		Fair value
		US$ '000		US$ '000
66,435	The Argo Fund Ltd	14,343		14,337
		14,343		14,337

12.     TRADE AND OTHER RECEIVABLES                                               

	At 31 December		At 31 December
	2010		2009
	US$ '000		US$ '000
Trade receivables	1,060		1,166
Other receivables	41		677
Prepayments and accrued income	211		129
	1,312		1,972

         The directors consider that the carrying amount of trade and other receivables approximates their fair value. All trade receivable balances are recoverable within one year from the balance sheet date.

13.     CASH AND CASH EQUIVALENTS

Included in cash and cash equivalents is a balance of US$100,000 (2009: US$103,000) which represents a bank guarantee in respect of credit cards issued to Argo Capital Management Property Limited. Due to the nature of this balance it is not freely available.

14.     LOANS AND ADVANCES RECEIVABLE

	At 31 December		At 31 December
	2010		2009
	US$'000		US$'000
Deposits on leased premises - current	5		36
Deposits on leased premises - non-current	253		226
	258		262

         The deposits on leased premises are retained by the lessor until vacation of the premises at the end of the lease term as follows:

	At 31 December		At 31 December
	2010		2009
	US$'000		US$'000
Current:
Lease expiring within one year	5		36

	At 31 December		At 31 December
	2010		2009
	US$'000		US$'000
Non-current:
Lease expiring in second year after balance sheet date	33		-
Lease expiring in third year after balance sheet date	220		226
	253		226

15.     SHARE CAPITAL

   The Company's authorised share capital is unlimited ordinary shares with a nominal value of US$0.01.

	31 December	31 December	31 December	31 December
	2010	2010	2009	2009
	No.	US$'000	No.	US$'000
Issued and fully paid
Ordinary shares of US$0.01 each	73,663,494	737	76,931,620	769
	73,663,494	737	76,931,620	769

The directors recommend a final dividend of 1.2p per share (2009: 1.0p) for the year ended 31 December 2010. The final dividend for the year ended 31 December 2009 of US$1,125,888 was paid on 23 June 2010 to ordinary shareholders who were on the Register of Members on 28 May 2010. Going forward, the Company intends, subject to its financial performance, to pay a final dividend each year.

In addition, the directors authorised the repurchase of 750,000 shares on 6 April 2010, 1,518,126 shares on 2 June 2010 and 1,000,000 shares on 30 September at respective purchase prices of US$0.20, US$0.18 and US$0.20 per share.

16.     TRADE AND OTHER PAYABLES

	At 31 December		At 31 December
	2010		2009
	US$ '000		US$ '000
Trade and other payables	49		44
Other creditors and accruals	1,005		2,648
	1,054		2,692

         Trade and other payables are normally settled on 30-day terms.

17.     OBLIGATIONS UNDER OPERATING LEASES

Operating lease payments represent rentals payable by the Group for certain of its business premises.  The leases have no escalation clauses or renewal or purchase options and no restrictions imposed on them.

As at the balance sheet date, the Group had outstanding future minimum lease payments under non-cancellable operating leases, which fall due as follows.

	At 31 December		At 31 December
	2010		2009
	US$ '000		US$ '000
Operating lease liabilities:
Within one year	440		527
In the second to fifth years inclusive	305		607
Present value of minimum lease payments	745		1,134

18.     RECONCILIATION OF NET CASH INFLOW FROM OPERATING ACTIVITIES TO                   

   PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION

	Year ended		Year ended
	31 December		31 December
	2010		2009
	US$ '000		US$ '000
Profit on ordinary activities before taxation	2,494		2,421
Interest income	(57)		(134)
Amortisation of intangible assets	651		692
Depreciation	99		119
(Decrease)/increase in payables	(1,638)		1,975
Decrease in receivables	97		259
Increase in fair value of current asset investments	(1,226)		(1,361)
Loss on disposal of fixtures, fittings & equipment	-		23
Net foreign exchange loss/(gain)	134		(269)
Income taxes repaid/(paid)	378		(722)
Net cash inflow from operating activities	932		3,003

19.     RELATED PARTY TRANSACTIONS

          71% of revenue derives from funds in which two of the Company's directors, Andreas Rialas and Kyriakos Rialas, have an influence through the provision of investment advisory services.

Michael Kloter, the non-executive chairman, is also partner in a legal firm which supplies services to the Group. This firm charged US$7,180 (2009: US$45,986) for services rendered to the Group in the year.

20.     FINANCIAL INSTRUMENTS

(a)     Use of financial instruments

                   The wider Group has maintained sufficient cash reserves not to use alternative financial instruments to finance the Group's operations. The Group has various financial assets and liabilities such as trade and other receivables, loans and advances, cash, short-term deposits, and trade and other payables which arise directly from its operations.

                   The Group's non-subsidiary investments in funds were entered into with the purpose of providing seed capital for these funds.

(b)     Market risk

                   Market risk is the risk that a decline in the value of assets adversely impacts on the profitability of the Group, either as a result of an asset not meeting its expected value or through the decline of assets under management generating lower fees. The principal exposures of the Group are in respect of its seed investments in its own funds. Lower management fee and incentive fee revenues could result from a reduction in asset values.

 (c)    Capital risk management

         The primary objective of the Group's capital management is to ensure that the Company has sufficient cash and cash equivalents on hand to finance its ongoing operations. This is achieved by ensuring that trade receivables are collected on a timely basis and that excess liquidity is invested in an optimum manner. This is achieved by placing fixed short-term deposits or using interest bearing bank accounts.

                   At the year-end cash balances were held at Royal Bank of Scotland, Laiki Bank, Bank of Cyprus, United Overseas Bank, Bancpost and UBS AG.

(d)     Credit/counterparty risk

         The Group will be exposed to counterparty risk on parties with whom it trades and will bear the risk of settlement default. Credit risk is concentrated in the funds under management as detailed in note 11.  Trade receivables are normally settled on 30-day terms.

         The Group's principal financial assets are bank and cash balances, trade and other receivables and investments held at fair value through profit or loss. These represent the Company's maximum exposure to credit risk in relation to financial assets and are represented by the carrying amount of each financial asset in the balance sheet.

(e)     Liquidity risk

         Liquidity risk is the risk that the Group may be unable to meet its payment obligations. This would be the risk of insufficient cash resources and liquid assets, including bank facilities, being available to meet liabilities as they fall due.

                   The main liquidity risks of the Group are associated with the need to satisfy payments to creditors. Trade receivables and trade payables are on 30-day terms.

(f)      Foreign exchange risk

         Foreign exchange risk is the risk that the Group will sustain losses through adverse movements in currency exchange rates.

        The Group is subject to short-term foreign exchange movements between the calculation date of fees in currencies other than US dollars and the date of settlement.  The Group holds cash balances in US dollars, Sterling, Singapore dollars, Swiss Francs, Romanian Lei and Euros.

                   If there was a 5% increase or decrease in the exchange rate between the US dollar and the other operating currencies used by the Group at 31 December 2010 the exposure would be a profit or loss to the Consolidated Statement of Comprehensive Income of approximately US$74,000 (2009: US$266,000).

(g)     Interest rate risk

The interest rate profile of the Group at 31 December 2010 is as follows:        

	Total as per balance sheet	Variable interest rate instruments*	Fixed  interest rate instruments	Instruments on which no interest is receivable
	US$ '000	US$ '000	US$ '000	US$ '000
Financial Assets
Financial assets at fair value    through profit or loss	15,563	-	-	15,563
Loans and receivables	1,570	-	-	1,570
Cash and cash equivalents	11,907	600	8,282	3,025
	29,040	600	8,282	20,158
Financial liabilities
Financial liabilities at fair value   through profit or loss	1,054	-	-	1,054

* Changes in the interest rate may cause movements.

The average interest rate at the year end was 0.5%. Any movement in interest rates would have an immaterial effect on the profit/loss for the period.

The interest rate profile of the Group at 31 December 2009 is as follows:        

	Total as per balance sheet	Variable interest rate instruments*	Fixed  interest rate instruments	Instruments on which no interest is receivable
	US$ '000	US$ '000	US$ '000	US$ '000
Financial Assets
Financial assets at fair value    through profit or loss	14,337	-	-	14,337
Loans and receivables	2,234	-	-	2,234
Cash and cash equivalents	13,069	2,300	7,343	3,426
	29,640	2,300	7,343	19,997
Financial liabilities
Financial liabilities at fair value   through profit or loss	2,692	-	-	2,692

* Changes in the interest rate may cause movements.

The average interest rate at the year end was 0.3%. Any movement in interest rates would have an immaterial effect on the profit/loss for the period.

(h)    Fair value           

         The carrying values of the financial assets and liabilities approximate the fair value of the financial assets and liabilities and can be summarised as follows:

		At 31 December		At 31 December
		2010		2009
		US$ '000		US$ '000
Financial Assets
Financial assets at fair value through profit or loss		15,563		14,337
Loans and receivables		1,570		2,234
Cash and cash equivalents		11,907		13,069
		29,040		29,640
Financial Liabilities
Trade and other payables		1,054		2,692

Financial assets and liabilities, other than investments, are either repayable on demand or have short repayment dates. The fair value of investments is stated at the redemption prices quoted by fund managers and is based on the fair value of the underlying net assets of the funds because, although the funds are listed, there is no active market. Redemption gates are currently imposed by the funds thereby limiting the Group's ability to realise the value of its investments in a timely manner.

Fair value hierarchy

The table below analyses financial instruments measured at fair value at the end of the reporting period by the level of the fair value hierarchy (see note 2).

                    At 31 December 2010

	Level 1	Level 2	Level 3	Total
	US$ '000	US$ '000	US$ '000	US$ '000
Financial assets at fair value through profit or loss	-	15,563	-	15,563

                        At 31 December 2009

	Level 1	Level 2	Level 3	Total
	US$ '000	US$ '000	US$ '000	US$ '000
Financial assets at fair value through profit or loss	-	14,337	-	14,337

21.     CLAIM RELATING TO LAWSUIT AGAINST FORMER GROUP COMPANY

Argo Group Limited ("Argo") has been named as an additional defendant in a lawsuit filed against Absolute Capital Management Holdings Limited (now named ACMH Limited ("ACMH")) and others. The suit has been filed in the United States District Court for the District of Colorado, by an investor in several of ACMH's investment funds. This litigation arose after the demerger of Argo from ACMH. The plaintiff, The Cascade Fund LLLP ("Cascade"), has made a number of claims against ACMH. In the event that Cascade's claim against ACMH proves successful, Cascade is seeking to include Argo assets as part of the ACMH asset pool available to it by way of compensation.

Argo considers that the courts of Colorado do not have jurisdiction over it and that the claim against Argo is wholly without merit. In April 2010 the Colorado court dismissed Cascade's action against ACMH for failure to state a claim, following which Cascade filed a second amended complaint. Argo subsequently filed a motion to dismiss Cascade's second amended complaint, which motion is pending before the court. Argo intends to continue to vigorously defend its position.

22.     EVENTS AFTER THE BALANCE SHEET DATE

         The directors consider that there has been no event since the year end that has a significant effect on the Group's position.

 

END

 

 

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