Avarae Global Coins : Annual Report and Accounts together with Notice of AGM - 31.03.2016

Avarae Global Coins plc

Incorporated and registered in the Isle of Man Registration Number: 4526V

Audited Report and Accounts for the Year ended 31 March 2016

Contents
Company Information	3
Directors' report	4
Introduction	4
Investing policy	4
The coin-dealing sector	4
Avarae's investments	5
Financial results	6
Dividend	7
Tender offer and delisting	7
Outlook	7
Incorporation	8
Statement of Directors' responsibilities	8
Principal activity	8
Results and dividends	8
Directors' remuneration and interests	9
Substantial shareholdings	9
Corporate Governance	9
Relationship with shareholders	10
Annual General Meeting	10
Statement as to disclosure of information to auditors	11
Auditors	11
Report of the independent auditors	12
Statement of Comprehensive Income	14
Statement of Financial Position	15
Cash Flow Statement	16
Statement of Changes in Equity	17
Notes to the Financial Statements	18

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Company information

Directors	Nigel Gautrey(Appointed 8 Jan 2016) Diane Clarke (Resigned 8 Jan 2016)
Matthew Wood
August Berting (Resigned 23 Sep 2015)
Clement Chambers Kay Cregeen (Alternate) (Resigned 14 Aug 2015) Chris Shimmin (Alternate) (Resigned 8 Jan 2016)
Registered Office	Ground Floor West Suite Exchange House 54-58 Athol Street Douglas Isle of Man IM1 1JD
Numismatic Advisory Panel	The Rt Honourable Sir John Wheeler J.P. DL Clement Chambers
Nominated Advisor and Broker	WH Ireland Limited 24 Martin Lane London EC4R 0DR
Auditors	Baker Tilly Isle of Man LLC PO Box 95 2a Lord Street Douglas Isle of Man IM99 1HP
Advocates	Appleby 33 Athol Street Douglas Isle of Man IM1 1LB
Registrars	Neville Registrars Limited 18 Laurel Lane Halesowen B63 3DA

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Directors' Report

Introduction

We are pleased to present the annual report for the year ended 31 March 2016. During the year under review, the Company continued to manage its portfolio of rare and high quality coins.

Avarae Global Coins plc ("Avarae" or the "Company") provides access for institutional investors and individuals wanting to diversify their investment portfolios away from the traditional asset classes such as equities, property and bonds without the need to be an expert in the coin- collecting sector. The principal objective of the Company, which has not changed since its admission to AIM ("Admission") in 2006, is to achieve capital growth for its shareholders through the purchase, holding and sale of the rarest and highest quality segment of the coin- collecting sector in various countries around the world.

Investing policy

Since Admission, we have built up an impressive portfolio of extremely high quality, rare coins which we intend to hold both for the long-term, i.e. 3 to 5 years, in order to achieve capital growth for our shareholders, and also the short-term, in order to take advantage of short-term trading opportunities, as the market for rare coins continues to grow. The value of each investment ranges from a few hundred pounds up to several hundreds of thousands of pounds.

The Board's decision on whether to acquire or dispose of a coin or coin collection is made on the recommendation of its industry expert independent Advisory Panel ("Panel") that assesses and approves all coin trading related activities. The Panel members are Sir John Wheeler and Clement Chambers, both of whom have significant expertise in the field of numismatics.

A principal objective of the Company is to achieve long-term capital growth through the appreciation in value of the coins acquired. Compound annual returns achieved over the medium to long-term for the highest quality and rarest coins can reach as high as 10 per cent. As at the date of this report, and since its formation in 2006, the Company has no borrowings and has no present intention of securing any borrowings.

The coin-dealing sector

The market for trading coins is international in nature and significant in size. For at least the last 10 years, there has been a steady increase in interest in the coin sector, however the last 12 months has witnessed a slight cooling in this interest across the industry. Interest at the very top end of the market appears to be stable, whereas mid-lower value coins have not been achieving the higher values of prior years.

The numismatic industry continues to witness an influx of new buyers looking for tangible assets and fresh areas to place their money as traditional asset classes, such as commodities and currencies, fail to deliver robust financial gains and exhibit high volatility. The majority of the funds coming into the numismatic market however are targeting the higher quality coin rarities and this is adding considerable pressure on availability which has, in some cases, priced Avarae out of the market.

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