It is with great pleasure that I welcome you to this year's Annual General Meeting of our company and to present you the company's annual report and accounts for the year ended December 31, 2007.

ECONOMIC AND BUSINESS ENVIRONMENT
This year under review was a very crucial period in Nigeria, not only for political activity but also for economic and other reasons. There was a change in government at all levels sequel to a general election which was held in April.

The banking and pensions reforms had favourable reply in the supply of funds to the economy. Money supply increased to support the small and medium enterprises in addition to increased government spending on infrastructure projects with a favourable impact on the capital market. Restiveness in the Niger Delta – the oil producing region of the country negatively affected business and economic activities in the area and contributed to surge I crude oil prices globally.

High crude oil prices of US $100per barrel impacted positively on the country's earnings and external reserves standing at about US$52 BILLION BY December, 2007. Rising crude oil with the resultant high cost of energy and infrastructural deficit had negative impact on the cost of production resulting in operational cost.

During the period, the pump price of petrol was increased from N 65/litre to N 70/litre. The country maintained a single digit inflation rate  6.4% well below the 9% projected by the federal government in 2007. Interest rates were on the decline and foreign rate was stable at N 117 to N124 to US$, on the back of improved external reserves.

The government directive on armoured vehicles in place of bullion and patrol vans impacted negatively on our sales for last quarter of 2007.

FINANCIAL PERFORMANCE
Despite the difficult operating condition, the company managed its resources efficiently thereby posting an improved result for the year.

The company achieved a turnover of N 1.9b, a growth of 13% and a trading profit before Tax of N 235.1m.

DIVIDEND
The board has recommended for your approval a dividend of N200m.   This represents 167 kobo for every share held.

BOARD CHANGE
Mr. Hope I. Uwagboe was appointed to the board of the company effective 16th October, 2007 as Finance Director. In accordance with the Articles of Association, Mr. Steve Koch is to retire by rotation and being eligible offer himself for re-election.

YEAR 2008 OUTLOOK
The dividends of the restructuring concluded in 2007 are already manifest in the improved performance of the company.

With the sustenance of economic policies and reform agenda of the current administration alongside expansion in non-oil sector of the economy will improve in 2008. We are encouraged by the government ‘s effort at controlling inflation, enforcement of the rule of law, zero tolerance for corruption and robust fiscal policy.  We believe these policies if vigorously pursued and implemented will impact positively on GDP which drive our performance and result.

Management effort will continue particularly in the areas of improved efficiencies, cost control, market share growth, and improved customers' service.

CONCLUSION

Fellow shareholders, in the course of the past year, management and staff had remained resilient in the face of intense competition to achieve these results. I wish at this stage to express my appreciation to them for their hard work and commitment.

To our esteemed customers, we thank you for your patronage and our shareholders, for their continued valuable support and understanding. I also wish to thank my colleagues on the Board for their guidance and support.

Thank you for your attention. God bless.

Larry E. Ettah
Chairman