Associated Companies

Where the company has an interest in another company that represents more than 20%, but less than a majority, of the voting rights in that company’s share capital, then this is deemed to be an investment in an “Associated Company” and the profits of the investment are consolidated into the results of the investment holding company. Under a 20% interest only dividends received will feature in the holding company’s accounts. Over a 50% interest, the investment is deemed to be a subsidiary company and its results and net assets will be fully consolidated in the holding company’s own accounts