DUNCAN LAWRIE (IOM) LIMITED ABRIDGED FINANCIAL STATEMENTS 31 DECEMBER 2013

Registered Number 27397

DUNCAN LAWRIE (IOM) LIMITED

ABRIDGED FINANCIAL STATEMENTS 2013

Contents

Page

Report of the independent auditor

3

Directors‟ statement

4

Statement of financial position

5

Notes to the abridged financial statements

6-8

1

DUNCAN LAWRIE (IOM) LIMITED

SHARE CAPITAL Authorised, issued and fully paid £6,800,000 in shares of £1 each

DIRECTORS M B Parden (Chairman)* W M Dawson (Deputy Chairman)* N C Gautrey (Managing Director) S N Quayle J Corlett* J Spellman* (* Non Executive Director)

SECRETARY S N Quayle

REGISTERED OFFICE 14/15 Mount Havelock, Douglas, Isle of Man, IM1 2QG Tel 01624 - 620770 Fax 01624 - 676315 Registered Number 27397 Isle of Man

AUDITOR PricewaterhouseCoopers LLC Sixty Circular Road Douglas Isle of Man IM1 1SA

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DUNCAN LAWRIE (IOM) LIMITED

REPORT OF THE INDEPENDENT AUDITOR ON THE ABRIDGED FINANCIAL STATEMENTS TO THE MEMBERS OF DUNCAN LAWRIE (IOM) LIMITED The accompanying abridged financial statements, which comprise the summary statement of financial position as at 31 December 2013 and related notes are derived from the audited financial statements of Duncan Lawrie (IOM) Limited for the year ended 31 December 2013. We expressed an unmodified audit opinion on those financial statements in our report dated 11 April 2014. The abridged financial statements do not contain all the disclosures required by International Financial Reporting Standards (IFRSs) as adopted by the EU. Reading the abridged financial statements, therefore, is not a substitute for reading the audited financial statements of Duncan Lawrie (IOM) Limited. Directors’ Responsibility for the Abridged Financial Statements The directors are responsible for the preparation of the abridged financial statements in accordance with the Financial Services Act 2008 and the regulations („the Financial Services Rule Book‟) made thereunder. Auditor’s Responsibility Our responsibility is to express an opinion on the abridged financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing (ISA) 810 Engagements to Report on Summary Financial Statements. This report, including the opinion, has been prepared for and only for the company‟s members as a body in accordance with Rule 2.26 of the Financial Services Rule Book and for no other purpose. Opinion In our opinion, the abridged financial statements derived from the audited financial statements of Duncan Lawrie (IOM) Limited for the year ended 31 December 2013 are consistent, in all material respects, with those financial statements, in accordance with the applicable requirements of the Financial Services Act 2008 and the regulations made thereunder.

PricewaterhouseCoopers LLC Chartered Accountants Sixty Circular Road Douglas Isle of Man 11 April 2014

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DUNCAN LAWRIE (IOM) LIMITED

DIRECTORS’ STATEMENT The directors are responsible for the maintenance and integrity of the company‟s website. Legislation in the Isle of Man governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The auditor has issued an unqualified report on the full annual financial statements. Their report on the full annual financial statements contained no statement under the Isle of Man Financial Services Act 2008 – Financial Services Rule Book, Section 127.4 of the Isle of Man Companies Act 1931 and Sections 15.4 and 15.6 of the Isle of Man Companies Act 1982. The abridged financial statements on pages 5 to 8 are a direct extract from the full financial statements approved by the board on 11 April 2014, as required by Rule 2.26 of the Financial Services Rule Book.

4

DUNCAN LAWRIE (IOM) LIMITED

Statement of financial position As at 31 December 2013 Note

2013 £

2012 £

2,898 70,899,045 12,413,370 17,188,544 1,166,445 554,325 68,925 190,777

8,592 78,540,446 17,025,334 16,351,716 1,166,445 532,626 285,590 172,022

102,484,329

114,082,771

Liabilities Customer accounts Other liabilities Accruals and deferred income

92,843,471 168,977 119,280

104,070,123 405,050 156,116

Total liabilities

93,131,728

104,631,289

6,800,000 2,552,601 9,352,601

6,800,000 2,651,482 9,451,482

102,484,329

114,082,771

Assets Cash in hand Loans and advances to banks Loans and advances to customers Available for sale investments Shares in group undertakings Property, plant and equipment Other assets Prepayments and accrued income

4

Total assets

Equity Share capital Retained earnings Total equity

5

Total equity and liabilities

The abridged financial statements on pages 5 to 8 were approved by the board of directors and authorised for issue on 11 April 2014. They were signed on its behalf by:

N. C. Gautrey (Director)

S. N Quayle (Director)

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DUNCAN LAWRIE (IOM) LIMITED

Notes to the Abridged Financial Statements For the year ended 31 December 2013 1.

General information

Duncan Lawrie (IOM) Limited (“the company”) is a company incorporated in the Isle of Man under the Companies Acts 1931 to 2004. The address and registered office is given on page 2. The Duncan Lawrie Private Banking Group is a conservatively managed financial services business concerned primarily with the preservation of our clients‟ assets. Accordingly, the Group‟s policies and practices are effectively geared to minimising risk throughout our banking and investment management operations. This is perhaps best illustrated by a shareholder constraint which specifies that the Bank is restricted from lending more than the aggregate of its share capital and reserves (excluding loans backed by cash deposits or bank guarantee). Thus the vast majority of our depositors‟ funds are not used for commercial lending but are placed by us with a select group of major banks in the interbank market and also in government instruments, where they are actively reviewed and monitored by our Group Asset and Liability Committee. In addition, we do not trade in or hold any investments for our own account, nor do we take material positions in foreign currencies. Our policy of matching our deposit and loan books in terms of both liquidity and interest rate risk further highlights our conservative approach.

2.

Parent company and ultimate parent company

The parent company of Duncan Lawrie (IOM) Limited at 31 December 2013 and 31 December 2012 was Duncan Lawrie International Holdings Limited. The ultimate holding company as at 31 December 2013 and 31 December 2012 was Camellia PLC. Duncan Lawrie (IOM) Limited is incorporated in the Isle of Man whilst Camellia PLC is incorporated in England and Wales, its financial statements being filed with the Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ. The Camellia Foundation is interested in a majority holding of Camellia PLC‟s issued ordinary share capital, which interest is held by Camellia Holding AG. The Camellia Foundation is a trust, the income of which is utilised for charitable, educational and humanitarian causes at the discretion of the trustees.

3.

Principal Subsidiary Companies Shares held & voting rights %

Country of Incorporation

Activity

Dunman Nominees Limited 100 ordinary shares of £1 each

100%

Isle of Man

Nominee

Duncan Lawrie Offshore Services Limited 50,000 ordinary shares of £1 each

100%

Isle of Man

Corporate & Trust Service Provider

Shula Limited 5,001 ordinary „A‟ shares of £1 each 4,999 ordinary „B‟ shares of £1 each

100%

Isle of Man

Property Investment

All shares noted above are ordinary shares.

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DUNCAN LAWRIE (IOM) LIMITED

Notes to the Abridged Financial Statements For the year ended 31 December 2013 4.

Loans and advances to banks 2013 £

2012 £

Amounts due from group banking undertakings Placements with other banks

951,482 69,947,563

1,190,155 77,350,291

Total

70,899,045

78,540,446

5.

Share capital £

Issued as at 1 January 2013 New shares issued Issued as at 31 December 2013

6,800,000 6,800,000

Issued as at 1 January 2012 New shares issued Issued as at 31 December 2012

6,000,000 800,000 6,800,000

£ Ordinary shares of £ 1 each: Authorised, issued and fully paid as at 31 December 2013

6,800,000

Authorised, issued and fully paid as at 31 December 2012

6,800,000

New shares were authorised, issued and fully paid up on 27 January 2012 and were issued to Duncan Lawrie International Holdings Limited the company‟s immediate parent.

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DUNCAN LAWRIE (IOM) LIMITED

Notes to the Abridged Financial Statements For the year ended 31 December 2013 6.

Contingent liabilities

Guarantees given to secure: customers‟ liabilities – Intergroup customers‟ liabilities – Other

2013 Contract or underlying principal amount £

2012 Contract or underlying principal amount £

1,985,000 1,450,000 3,435,000

3,776,052 3,776,052

The above contingent liabilities were secured by either property, bank guarantee or other assets in both the current and preceding year at their fair value. Isle of Man Depositors Compensation Scheme During 2013 the company paid no further contributions to an earlier Scheme in respect of the 2008 default by Kaupthing Singer and Friedlander (Isle of Man) Limited (“Kaupthing S&F”). The company made three annual contributions of £205,508 to the Scheme in the years 2009, 2010 and 2011 (totalling £616,524). On 10 September 2012 the company was informed by the Scheme Manager that an interim distribution would be made from the Scheme, and on 15 October 2012 the company received £371,365, equivalent to 60.24% of total contributions made, and on 8 August 2013 the company received £91,064, equivalent to 14.77% of total contributions made, as disclosed in the statement of comprehensive income. The total return to date is now approximately 75%. The value and timing of any potential future distributions to the company is not yet known and as such no further provision for receipts has been made.

7.

Audited Financial Statements

Copies of the full audited financial statements are available on request at our registered office (page 2).

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