Annual Financial Statement 2007

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                     St Mark Homes II Plc : Final Results                      

The directors present their report together with the audited financial
statements for the year ended 31 December 2007. 

Results and dividends

The profit and loss account is set out in the audited financial statements and
shows the loss for the year.

The directors do not recommend the payment of a dividend on the `A' ordinary
shares (2006 : £Nil).

The directors do not propose an ordinary share dividend for the year (2006 : £
Nil).

Principal activity, review of business and future developments

The company continues to operate in the residential contractor/housebuilder
market.  During the year we provided working capital for the development of
three residential sites in the Greater London area.

The loss before taxation for the period was £1,730 (2006: £149,797).

During the year the board has evaluated opportunities in relation to both
building contracts and the financing of those contracts.  The company achieved
its target of fully committing its available cash resources during 2007. By
committing to three separate projects which are ring fenced within individual
special purpose vehicles , albeit all subsidiaries of one  development group, ,
exposure to any single development is reduced.  The working capital was
provided as loan notes and these have been structured to receive a fixed
interest return plus a share of development profit.  The interest element has
been accrued during the period but profit share will only be recognised once
there is sufficient evidence and projects are sufficiently progressed to assess
the likely profitability with a reasonable level of accuracy.

The three projects are:

West End Lane, Ruislip, Middlesex.

£900,000 was loaned in this 19 unit residential  scheme.  It is due to complete
in the final quarter of 2008.  All units have been sold off plan.

Northolt Road Harrow, Middlesex

£1,000,000 was committed to this 25 unit project.  This scheme is due to
complete in first quarter of 2009.  24 units have been sold off plan.

St Margarets Road, Twickenham

£700,000 was loaned in this project.  A 27 unit scheme was granted planning on
15 May  2008 and construction is programmed to commence in the second half of
this year.  Completion is projected for late 2009/early 2010.

As profit share on these projects becomes recognisable the board will consider
available resources and declaration of an ordinary share dividend.

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