By using the same investment techniques that help our clients succeed, the Asset Holdings division invests the Group's own capital, as well as capital raised from outside investors, in corporate, shipping and property assets. The Group's Asset Holdings are carried out primarily through its subsidiary company, White Knight Holdings (WKH). WKH is a public unlisted company with over 1,500 institutional, corporate and private shareholders. SFS Group has a 70% direct stake in WKH and acts as its Executive Manager through a Discretionary Management Agreement. WKH's core business activities are described in more detail below.

The total property portfolio (as re-valued at end of 2004 ) is around £41M (€71M) and represents over 32% of SFS Group's total assets. The properties which total 2,800 hectares comprise primarily:

The Group acquired the majority of the above properties during the first half of 2000. From 2003 onwards, development has commenced on 5% of the land bank in addition to more active trading (both selling, buying and replacing) in order to better optimise the property portfolio return and improve its yield.

Through its 51% subsidiary, Waverland Investments , the Group has committed $62M (€52M) to the building of four Handy Size Bulk Carriers in China which have been Bare Boat chartered for a period of 12 years to a large Canadian charterer/operator with a guaranteed buy back by the charterer after 12 years for $36M (€43M). The four ships were delivered between January 2002 and August 2003. Waverland's turnover during 2004 was USD7.68 million.

At the end of April 2005, the Group acquired a controlling stake of 52% in the public, not listed shipping group Lemissoler Shipping Co. Ltd which is based in Limassol, Cyprus . Lemissoler's main activities are ship owning, third party ship management and a container liner feeder service in the Baltic Sea. Lemissoler's turnover during 2004 was CYP6.38 million.

The Group has invested in a number of private companies in Cyprus in an attempt to turn them around and either list them on the CSE or trade sell them. The total assets at the end of 2003 of these Private Equity investments is £25M (€43M) or 20% of the SFS Group's total assets. These investments are long term by their nature and in total produce acceptable returns on investment between the third and seventh year of investment. The majority of the Private Equity investments had turned cash positive since 2003.

The Group's Private Equity investments are geared towards food processing and trading, construction industry tools and materials trading, multi-purpose function hall operations and restaurants.

The major private equity sub-groups and their subsidiaries are:

Carmount Group -a leading importer and wholesaler in Cyprus of light machinery, hand and power tools, paint and related products, fencing, cast iron manholes and construction industry related consumables. Carmount Group's turnover during 2004 was CYP6.15 million.

The major trading companies within this sub-group are:

Chrikar Trading Group - a leading importer and wholesaler in Cyprus of commodities, raw materials, ethnic and general foodstuffs for the catering industry, hotels, supermarkets, bakeries etc. Chrikar Group's turnover during 2004 was CYP5.65 million.

The major trading companies within this sub-group are:

Regis Milk Industries -the oldest and leading ice cream manufacturer in Cyprus with a market share during 2004 exceeding 30%. The company also imports and sells the EVGA greek ice creams alongside its own brand. Regis's turnover during 2004 was CYP2.94 million.

Coyio -a medium sized edible nuts, dried fruits and confectionery processing company based near Limassol. The company excels in the areas of hygiene and quality of food processing. Coyio's turnover during 2004 was CYP0.54 million.

Forumfront -is the company operating the Group owned Monte Caputo multi-function centre outside the sea-side town of Limassol . Monte Caputo is the largest purpose built multi-function hall of its kind in Cyprus . It has hosted over the last five years beauty pageants, music contests, business conferences & conventions, exhibitions, televised bingos and numerous wedding receptions.