Final Results - Year Ended 31 December 1999

Highcroft Investment Trust PLC
9 March 2000




PRELIMINARY STATEMENT OF RESULTS FOR THE YEAR ENDED 31 DECEMBER 1999

The following statement was approved at a meeting of the directors held today.

Summary Results - Operating Activities

Operating  profit  was  slightly  down on  the  1998  figure  of  £1,379,000  at
£1,364,000.  This  reverse can be attributed to a number  of  factors  that  the
directors consider to be to some extent exceptional in their nature.

General levels of income were largely unchanged on 1998 figures, in part due  to
the  limited  number  of  significant rent reviews effective  during  the  year.
However,  gross rents receivable were down on 1998 as a result of the  disposals
made during the year. Property outgoings benefited from a substantial reduction,
mainly as a result of the strategy of improving the property portfolio, and as a
result,  net  property  income showed a small increase. Administrative  expenses
increased  and  those  in  respect of the share buy-back  amounted  to  £34,000.
Additionally, the on-account payments of corporation tax arising under  the  new
payment  regime and the payment of recoverable advance corporation  tax  on  the
shares  purchased  by way of the buy-back ensured that cash balances  were 
lower than otherwise might have been, which in turn reduced net interest.

Summary Results - Capital Activities

Net  assets  showed  a  good advance during the year of £3.1  million  to  £30.6
million and stood at 592p per share at 31 December 1999, a rise of 85p (17%)  on
the year. Of this increase, 12p arises from the buy-back of 260,000 shares which
was completed during the year.

During  the  course  of  the  year, the company completed  the  purchase  of
property assets at a cost of £5,550,000 (1998 nil) and investment assets  of
£1,058,000 (1998 £630,000). The net proceeds from property disposals  during
the   year   amounted  to  £3,341,000  (1998  £2,940,000)  while  investment
disposals raised £1,271,000 (1998 £827,000).

Profits  from  the  gains  on  these disposals amounted  to  £868,000  (1998
£547,000).  Such gains are non distributable and after taxation of  £533,000
(1998 £247,000) are transferred to realised capital reserve.

Property

The  company continued to implement its strategy to improve the  quality  of
the property portfolio by replacing those investments perceived as being  of
poorer   quality   with  generally  larger  properties  providing   reliable
covenants  and appropriate yields. There is now clear evidence that  despite
the  generally  lower  gross yields arising from the replacement  properties
the  reduction in management and other costs is having a positive net  impact
on  the  profit  and  loss account. Although the broad  objectives  of  this
policy  are  likely  to take a number of years to achieve, the  Directors  are
aware  that new strategies will be required to respond both to the  changing
environment in the property sector and the ever present need to enhance  the
value of the portfolio.

There  were two significant additions to the portfolio during the year.  The
construction  of  a distribution centre in Kidlington, Oxon.  was  completed
in August 1999 and occupied by the Post Office during the same month. This
investment  was  purchased  on an  initial  yield  of  7.6%.  This  was  a
speculative  project  undertaken  by a third  party  developer  whereby  the
Company  provided  forward finance to purchase the site  and  construct  the
buildings with the security and comfort provided by a binding agreement to
lease  with the Post Office. As such, it represented a significant departure
from  our  normal  method  of acquisition and we  are  now  seeking  similar
arrangements  where  exposure to a limited risk  provides  opportunities  to
acquire  properties  that  may not otherwise be available  to  the  Company.
Additionally  a  substantial listed office building in central  Bristol  was
acquired in August 1999. This property is the subject of a lease to Royal  &
Sun  Alliance expiring in 2013 and is occupied by Eversheds solicitors on  a
sub-lease. This investment was purchased on an initial yield of 8.1%.

The  second  half  of  the  year was a period  of  consolidation,  with  the
continuing  programme;  of property disposals and  cash-flow  arising  from
normal  activities being used to re-establish cash reserves. This period  of
consolidation has continued since the year-end and leaves the  Company  well
placed to take advantage of any appropriate opportunities that may arise.

The  Property Valuation reflects these activities showing a rise from  £15.3
million  to £19.6 million. Those properties that remained in the  portfolio
throughout  the  period  show a rise in value  equivalent  to  10.6%  (1998
9.5%).

Listed Investments

Following a positive first half year, markets fell during the third  quarter
but  recovered  well  towards to end of the year. Our  stance  has  remained
cautious  as we perceive that the threat of downward corrections in  the  US
and  UK  markets particularly cannot be discounted. The continuing  effects
of  the  strength  of  sterling on the UK manufacturing sector,  exacerbated
during  the latter part of the year by rising interest rates, are additional
causes  for  concern.  The early months of 2000 saw markets  once  again  in
reverse,  and  we  expect volatility to be the key word  for  the  immediate
future.

The takeover of M & G Group PLC early in the year provided only a temporary
boost to cash reserves as these proceeds were reinvested during the
following months.

Our income from listed investments was affected by changes during 1999 to
the rate of tax credits, consequently the underlying trend was more
positive than the figure of £387,000 (1998 - £382,000) indicates. Listed
investment income net of tax credits was £351,000 in 1999 and £315,000 in
1998 an increase of 11%

PROFIT AND LOSS ACCOUNT 
1. Income from fixed asset investments and other interest receivable:
                                                 1999              1998
                                         £'000  £'000    £'000    £'000
From investment properties:
Rents receivable                                1,246             1,378
Less outgoings                                   (108)             (249)
                                                1,138             1,129
From listed fixed asset investments        387             382
Other interest receivable                   55              78
                                                  442               460
                                                1,580             1,589
2. Operating profit:
                                                1,364             1,379

3. Profit on ordinary activities 
   before taxation:
                                                2,232             1,926
4. Taxation:
                                                  873               641

5. Profit on ordinary activities 
   after taxation:
                                                1,359             1,285

4. Gains on disposals of assets after taxation 
   taken to capital reserve:
                                                  335               300

5. Profit available for distribution:
                                                1,024               985
6. Total amount absorbed by dividends:
 Ordinary shares
 Interim dividend                                 142               136
 Proposed final dividend                          261               250
                                                  403               386
 1998 final dividend not paid on own shares 
 purchased                                        (12)                -
                                                          
                                                  391               386


7. Rates of net ordinary dividends paid and proposed: 
   Interim - paid                                2.75p           2.50p
   Final-payable                                 5.05p           4.60p

8. Earnings per share: 
   including gains on disposals of assets        26.1p           23.7p
   excluding gains on disposals of assets        19.6p           18.1p

BALANCE SHEET                      The Group           The Company

                                   1999      1998      1999      1998
                                  £'000     £'000     £'000     £'000

Fixed assets                     
Tangible assets                  19,637    15,291        -         -
Investments                      11,333     9,822      31,096    27,245

                                 30,970    25,113      31,096    27,245


Current assets
Debtors                             386     1,251         177       895
Cash at bank                        415     2,644           8        57

                                    801     3,895         185       952
Creditors
Amounts falling due within 
one year                          1,170     1,497         680       686

Net current (liabilities)/assets    (369)    2,398        (495)      266

Total assets less current 
liabilities                      30,601    27,511      30,601    27,511


Capital and reserves
Called up share capital           1,292     1,357       1,292     1,357
Revaluation reserve - property    5,219     5,421          -          -
                       - other    6,959     5,858      26,394    22,953
Capital redemption reserve           95        30          95        30
Realised capital reserve         11,274     8,845       2,104     1,648
Profit and loss account           5,762     6,000         716     1,523

Shareholders' funds              30,601    27,511      30,601    27,511

1. Share capital: 
The shares in issue at 31 December 1999 were 5,167,240 (1998 5,427,240).

2. Net asset value: 
The net asset value per 25p share at 31 December 1999 was 592p (1998 507p).


CASH FLOW STATEMENT
                                                          1999           1998
                                                   £'000  £'000  £'000  £'000
Net cash(outflow)/Inflow from operating activities        2,044          (721)

Taxation paid                                            (1,026)         (442)
Capital expenditure and financial investment
Purchase of fixed assets - properties             (5,550)           -
                         - listed investments     (1,058)         (630)
Sale of fixed assets     - properties              3,341         2,940
                         - listed investments      1,271           827
Net cash (outflow)/inflow from capital
expenditure and financial investment                     (1,996)         3,137
Financing
Purchase of own shares                                     (871)            -
Dividends
Equity dividends paid                                      (380)          (367)
(Decrease)/Increase in cash                              (2,229)         1,607

Accounting convention: 
The financial statements have been prepared under the historical cost convention
except that freehold and leasehold properties and listed and unlisted
investments are revalued annually.

Annual General Meeting: 
The 2000 Annual General Meeting will be held on 7 June 2000.

Final ordinary dividend: 
Warrants in payment of the final ordinary dividend for 1999 will be paid on 9
June 2000 to shareholders registered at the close of business on 8 May 2000.

Limitation: 
The above does not constitute full accounts within the meaning of section 240 Of
the Companies Act 1985. It is an extract from the full accounts for the year
ended 31 December 1999 on which the auditors have confirmed that they expect to
express an unqualified opinion. They will be posted to shareholders on or before
30 April 2000 and filed at Companies House in due course.