Final Results

CRESTON PLC
18 October 1999


CHAIRMAN'S STATEMENT

The group has had another very successful year. Net asset value per share
increased by 45% to 187 pence per share, which arose from a combination of the
profit for the financial year of £1,959,000, an increase of 9% over last year,
and a property revaluation surplus of £3,183,000. Profit on ordinary
activities before taxation amounted to £1,740,000 and there was a tax credit
of £219,000 arising from the write-back of a deferred tax provision no longer
required.  

In light of these excellent results, and as forecast in the Interim Report,
the board is recommending a final dividend of 3 pence per share payable on 29
November 1999.

In my report last year I mentioned that the board was concerned by the high 
discount to net asset value per share at which the company's shares have
traded. The board's concern was, and remains, that shareholders should receive
full value for their shareholdings, which can only be achieved if the market
price of the shares properly reflects the considerable success of the group
over recent years and its future prospects. Between 30 June 1995 and 30 June
1999 the group's net asset value per share increased by 335%.  Research shows
that this was an achievement substantially better than the performance of the
vast majority of the company's competitors that are listed on the London Stock
Exchange over the same period of time. Nevertheless, the company's shares
continue to trade at a significant discount to net asset value per share,
which at 13 October 1999 amounted to 26%.

It is clear that the market has failed to recognise the company's performance
and, with sentiment very much against companies with small market
capitalisations, the board is of the view that it may be some time before
shareholders can achieve full value. Your board has therefore decided to
realise the value of the group's assets and to return the funds raised to
shareholders in a tax efficient manner. It would not be prudent at this stage
to make a forecast, but it is expected that the amount returned will be
considerably in excess of the level at which the company's shares have
recently traded. No decisions have been taken yet regarding the time period
over which this new strategy will be pursued, except that it will be
implemented in a fashion designed to obtain the greatest value for
shareholders. When the board is able to be more specific about the company's
proposals, further information will be made available to shareholders.

As shareholders will appreciate, the results achieved over the last four years
were the product of a sound strategy devised and implemented by the executive
directors, Tom King and Carl Fry, who were well supported by the group's other
senior employees and staff. We owe the increase in shareholder value to them
and, accordingly, I and the other non-executive directors would like to record
our considerable appreciation to them for the success achieved.

I will be standing down as Chairman prior to the annual general meeting. I am
not in agreement with the new strategy and it is, therefore, fitting that the
board should elect a new Chairman. I will resign from the board at the year
end.

RONALD G HOOKER CBE FREng
Chairman

OPERATING REVIEW

The Chairman's Statement sets out the company's new strategy, which is to
realise the value of the group's assets and return the proceeds to
shareholders. As the Chairman has explained, the board decided on this new
direction because of market sentiment in companies with small market
capitalisations along with the significant discount to net asset value per
share at which the company's shares have traded.  

Our strategy until now has been highly focused on achieving shareholder value 
through growth in net asset value per share and our policies in terms of
property activities and financial structuring have closely reflected this
objective. The success of our strategy is demonstrated in the 335% growth over
the last four years in net asset value per share, which equates to a compound
annual return of 35%. In the last financial year alone there was an increase
in net asset value per share of 45%.

Whilst the board's decision reflects market sentiment, from a personal view I
am disappointed that it has not allowed me to continue to pursue my ambition
of taking the company onto a larger stage. However, the task now is to realise
the value of the company's assets in a controlled fashion to the benefit of
all shareholders and this task is already underway.

I will be stepping down as Managing Director from 30 November 1999, but will
remain with the company as a consultant and non-executive director to assist
in implementing the new strategy.

THOMAS P KING
Managing Director

FINANCIAL REVIEW

As I mentioned in my review last year, the group's principal financial
objective was to increase consistently net asset value per share.  I also said
that the purpose of the group's financial policies was to set a framework
within which such growth could be achieved with an acceptable level of risk.

The financial policies adopted over the last four years have been particularly
successful.  The strong emphasis on cash flow enabled us to look forward with 
confidence that the group's base business was sound and to concentrate on new 
projects.  The high level of gearing provided the funds to invest in a broad
range of high profit potential investments that have delivered considerable
additional value to the group.  At the same time by fixing the interest rates
applying to most of the group's borrowings risk was contained to a modest
level.

The revolving credit facility arranged with Bank of Scotland has been of 
considerable benefit to the group.  It enabled property transactions to
proceed very quickly without the need for fresh loan documentation for each
transaction. It also gave property vendors considerable confidence of our
ability to proceed with transactions.

As planned, the company's 6% Convertible Redeemable Unsecured Loan Stock was 
redeemed on 30 April 1999.  Further repurchases of the company's ordinary
shares were made during the year with a total of 480,000 shares repurchased at
an average price of 84 pence per share.  This brings the number of shares
repurchased over the last two years to 717,481 shares at an average price of
83 pence per share, which was considerably below net asset value per share
over the same period.

This year the notes to the accounts contain the additional disclosures
required by FRS 13 regarding the group's financial assets and liabilities.  In
light of the group's new strategy, perhaps the item of most interest to
shareholders relates to the difference between the book values and fair values
of the financial assets and liabilities.  This sum amounts to £1,268,000,
which is equivalent to 15 pence per share. Net of this amount the group's net
asset value per share would reduce to 172 pence per share.  However, it should
be noted that since 30 June 1999, interest rates of all maturities have
increased and at 28 September 1999 the difference between the book values and
fair values of the group's financial assets and liabilities had fallen to
£684,000 or 8 pence per share.

At the year end the group's investment properties were valued by the directors
leading to a revaluation surplus of £3,183,000.

CARL D FRY FCA
Finance Director

Consolidated Profit and Loss Account
for the year ended 30 June
                                                          1999         1998
                                                          £000         £000
Turnover                                                 6,395       11,348   
                                                                              
Cost of sales                                          (2,687)      (6,119)
                                                               
Gross profit                                             3,708        5,229
                                                               
Administrative expenses - including exceptional             
 cost of £759,000 in 1999                              (2,099)      (1,363)
    
Operating profit                                         1,609        3,866
                                                                          
Profit on disposal of investment properties              2,345          873
                                                  
Profit on ordinary activities before interest            3,954        4,739
                                                               
Net interest payable                                   (2,214)      (2,936)
                                                               
Profit on ordinary activities before taxation            1,740        1,803
                                                                          
Tax on profit on ordinary activities                       219            -
                                                               
Profit for the financial year                            1,959        1,803
                                                               
Dividends                                                (262)            -  

Retained profit for the financial year                  £1,697       £1,803

Earnings per share                                       22.0p        19.5p   
                                
Diluted earnings per share                               20.1p        17.9p
                                                               
Dividends per share                                       3.0p            -   
                                                                   
Consolidated Balance Sheet
at 30 June
                                                          1999         1998   
                                                          £000         £000   
Fixed assets                                                   
Investment properties                                   36,745       27,733  
Other tangible fixed assets                                 34           47   
                                                        36,779       27,780   
Current assets                                                 
Stocks                                                   4,297       10,339   
Debtors                                                  2,200        1,884  
Cash at bank and in hand                                   767          892   
                                                         7,264       13,115  
Creditors: amounts falling due within                       
one year including convertible debt                    (4,670)      (6,408) 
                                                               
Net current assets                                       2,594        6,707 
                                                               
Total assets less current liabilities                   39,373       34,487 
                                                               
Creditors: amounts falling due after more                      
than one year including convertible debt              (23,108)     (22,479)
                                    
Provisions for liabilities and charges                       _        (219)  
                                                               
Net assets                                             £16,265      £11,789  
                                                                         
Capital and reserves                                           
Called up share capital                                    868          916   
Share premium account                                    2,541        2,541   
Revaluation reserve                                      4,510        1,181   
Special reserve                                          1,386        1,386   
Other reserve                                            1,562        1,562   
Capital redemption reserve                                  72           24   
Profit and loss account                                  5,326        4,179   
                                                               
Total equity shareholders' funds                       £16,265      £11,789  
                                                               
Net asset value per share                                 187p         129p  
                                                               
Statement of Total Recognised Gains and Losses
for the year ended 30 June
                                                          1999         1998   
                                                          £000         £000   
Profit for the financial year                            1,959        1,803   
Unrealised surplus on revaluation of properties          3,183            7
                                                               
Total recognised gains and losses for the year          £5,142       £1,810  
                                                                
Reconciliation of Movements in Shareholders' Funds                     
for the year ended 30 June                                  
                                                         1999          1998  
                                                         £000          £000  
Total recognised gains and losses for the year          5,142         1,810  
Issue of new ordinary shares                                _             1  
Repurchase of ordinary shares                           (404)         (189)  
Negative goodwill on acquisition                            _           516  
Dividends proposed                                      (262)             _

Net addition to shareholders' funds                     4,476         2,138  
                                                               
Opening total equity shareholders' funds               11,789         9,651  
                                                               
Closing total equity shareholders' funds              £16,265       £11,789  
                                                               
                                                               
Historical Cost Profits and Losses                             
for the year ended 30 June                                                    
                                                         1999          1998  
                                                         £000          £000  
Reported profit on ordinary activities before taxation  1,740         1,803   
Realisation of property revaluation (deficit)
surplus of previous years                               (146)           246  
                                                               
Historical cost profit on ordinary          
activities before taxation                              1,594         2,049   
                                                             
Historical cost retained profit for the year           £1,551        £2,049  
                                                               
Consolidated Cash Flow Statement
for the year ended 30 June
                                                         1999          1998  
                                                         £000          £000  
Net cash inflow from operating activities               4,833         7,777 
                                                               
Returns on investments and servicing of finance                     
Interest received                                          56            55 
Interest paid                                         (2,261)       (3,221) 
                                                               
Net cash outflow from returns on
investments and servicing of finance                  (2,205)       (3,166) 
                                                               
Taxation                                                                      
UK corporation tax refund                                 274             -
                                                            
Capital expenditure and financial investment                     
Purchase of investment properties                     (7,235)       (1,070) 
Purchase of plant, vehicles and equipment                (12)          (23) 
Sale of investment properties                           7,377         7,957  
Sale of plant, vehicles and equipment                       2            32  

Net cash inflow from capital expenditure                        
and financial investment                                  132         6,896  
                                                               
Acquisitions and disposals                                                    
Cash at bank acquired on purchase of subsidiary             -            66   
Cash balance forgone net of sale proceeds
on disposal of subsidiary                                   -          (74)
                                                               
Net cash outflow from acquisitions and disposals            -           (8) 
                                                               
Net cash inflow before financing                        3,034        11,499 
                                                               
Financing                                                      
Issue of share capital for cash consideration               -             1 
Purchase of own shares                                  (404)         (189)   
Repayment of loans                                      (330)      (10,367)
Repurchase of 6% convertible redeemable
unsecured loan stock                                  (2,425)         (407)   
                                                           
Net cash outflow from financing                       (3,159)      (10,962)
                                                               
(Decrease) increase in cash                            £(125)          £537
                                                                   
NOTE

The financial information set out in this announcement does not constitute the
company's statutory accounts for the years ended 30 June 1999 or 1998, but is
derived from those accounts.  Statutory accounts for the year ended 30 June
1998 have been delivered to the Registrar of Companies and those for the year
ended 30 June 1999 will be delivered following the company's annual general
meeting. The auditors have reported on those accounts; their reports were
unqualified and did not contain statements under section 237(2) or (3) of the
Companies Act 1985.

The announcement is prepared on the basis of the accounting policies as stated
in the previous year's accounts. There have been no changes to these
accounting policies.

The announcement was approved by the directors on 18 October 1999.