Interim Results - 6 Months to 31 December 1999

London Finance & Investment Grp.PLC
17 February 2000


TO THE MEMBERS

The directors are  pleased to present the unaudited interim results of the
company for the six months ended 31st December 1999.

Results
Our profit on ordinary activities attributable to shareholders for the  six
months was £228,000 compared to £131,000 for the same period in 1998 and
earnings per share were 0.89p (1998 - 0.51p), an increase of 75%

Our operating profit is substantially greater than last year because of profits
realised from the general portfolio of listed investments.  The increase in
income from management services results from the recharge of additional costs
incurred in providing the level of service demanded by our clients.  The
contribution to profits by our associate Western Selection for its half year  to
31st December 1999 was £80,000 (1998 - £58,000) mainly because Western also
realised higher profits from its portfolio and recognised its first dividend
from its strategic investment in Creston plc.

As is our practice, we are not paying an interim dividend; the dividend paid in
October was for the 12 months ended on 30th June 1999.  At 31st December 1999
our net asset value per share was 56.2p, an increase of 57% from 30th June 1999.
 This is mainly due to significant increases in the market value of our
principal investments, which are held as long term fixed assets.

Investment policy and management
Our investment policy is to have strategic stakes in a few special situations,
hold a diversified general portfolio of U.K. and European listed equities.
Strategic investments are minority positions where we seek to exercise influence
over the management of the investment.  Lonfin is represented on the boards of
our strategic investments and, in turn, Western is also represented  on the
boards of its two strategic investments, Creston plc and The Sanctuary  Group
PLC.

Our general portfolio is managed by two of our non-executive directors, Richard
Good and Michael Robotham.  Decisions in relation to both our strategic and
unlisted investments are taken by the board as a whole.

Marylebone Warwick Balfour Group Plc has two operating divisions.  The  Business
Services division comprises rental income from asset management activities and
operating income from the Business Exchange chain of 27 serviced offices.   The
Project Management division covers activities which create one-off profits or
fees, over a  defined time-scale, with clearly contained risk.   The group
announced profits before tax of £6,320,000 for its year ended 30th June 1999 and
dividends for the year of 2.5p per share.  The reduction in profits from last
year was mainly due to the timing of property sales and refurbishments.  At 30th
June 1999 the group had net assets with a book value in excess of eighty million
pounds, net assets per share of 143p (up from 71p at 30th June 1998).  In
December 1999 the group raised £28.8m by way of a  placing and open offer
principally to fund an expansion of activities through  the ownership of
properties in the hotel sectors.  We have invested a further £507,000 in the
group in the half year to 31st December 1999.

Megalomedia plc announced increased turnover and profits for its first half to
30th September 1999. Both Post Production Digital Services and  Contract
Publishing, being the two main operating units, reported sound profits for the
first half, increasing to £1.7m from £0.7m for the half year to 30th September
1998.

Western Selection P.L.C., our associate strategic investment company, announced
profits before tax for the six months to 31st December 1999 of £188,900 compared
with £144,600 for the same period in the previous year. Western expects to at
least maintain its dividend for its current year.  The net asset  value of
Western, at market values, increased to £11,179,000 from  £7,723,000.  This
equates to 25.7p per share at 31st December 1999, an increase of 45% since 30th
June 1999.

Western's strategic investment, The Sanctuary Group plc, issued preliminary
results for the twelve months to 30th September 1999, reporting an increase in
turnover of 32% on an annualised basis and profits of £3,300,000 compared with a
profit for the nine months to September 1998 of £1,600,000.  The full year
dividend is increased from 0.15p to 0.20p.  Sanctuary raised £11 million of  new
monies in October 1999, via an institutional placing, to fund further expansion
and catalogue acquisitions.  Sanctuary is making substantial progress in the
development of its Heavy Metal web site and the creation of a New Media Division
specialising in internet related activities in the Group's specific niche areas
of operation.  The group is currently organised into three divisions, Music;
covering management, record companies, agency and books, Facilities; covering
recording and rehearsal facilities and Screen; covering television  production
and distribution.

Creston plc issued its annual report in October, announcing a 45% growth in  net
asset values to 187p per share, an increase of 9% in profits, to £1,959,000 from
£1,803,000 and a dividend of 3p per share.  The net asset value attributable to
our direct investment in Creston is £387,000 and indirectly  through Western
Selection P.L.C. is £2,495,000.  The company is in the process of realising the
value of its property portfolio and will be returning some of the funds to its
shareholders.

Outlook
The market is beginning to appreciate the underlying value of some of our
strategic investments and this is being reflected in both in their share  prices
and ours.  We look forward to working with these companies to unlock additional
shareholder value over the longer term.

The General Portfolio of investments has underperformed recently compared to the
market, but these are long term investments that we expect will provide a
reasonable return over time by way of both income and capital growth.

We declared a dividend for the year to 30th June 1999 of 1.0p per share,  which
was paid in October.  As mentioned above, it is not our intention to pay interim
dividends; and subject to unforeseen circumstances, we expect to at  least
maintain our dividend for the year to 30th June 2000.

                                                             David C. Marshall
                                                                      Chairman


Balance Sheet Analysis taking investments at market value

                                           Half-Year         Full-Year
                                             Ended               Ended  
                                         31st December            June  
                                         1999      1998           1999  
                                         £000      £000           £000  
Tangible fixed assets                     517       499            505  
                                                                    
                                                                    
Principal investments at market value:-                             
Western Selection P.L.C. *               3,811     1,566         1,502  
Marylebone Warwick Balfour Group Plc     4,665     1,902         1,924  
Megalomedia plc                          1,253       765           810  
Creston plc                                365       139           218  
                                                                    
                                        10,094     4,372         4,454  
                                                                    
General equity portfolio (see analysis   5,201     4,732         5,480  
  below)
Cash, bank balances and deposits            46       256            95  
Bank overdraft                          (1,600)     (750)       (1,150)  
Other net assets/(liabilities)             143       (46)         (195)  
Minority interests                         (52)      (52)          (52)  
                                                                    
Net assets                              14,349     9,011         9,137  
                                                                    
                                                                    
Net assets per share                      56.2 p    35.3 p        35.8 p

*  Western Selection P.L.C., a strategic investment company, is an associate and
41% of its shares are owned by London Finance.  Taking investments  at  market
value our holding has an asset value of approximately £4.5 million, as published
in Western's interim statement at 31st December 1998.

The general portfolio is invested in the listed equity shares of the following
undertakings:

Allied Zurich PLC                              Liberty International PLC
Anglo American PLC                             Lloyds TSB Group plc
AstraZeneca PLC                                Marconi plc
BAA plc                                        Nestle S.A.
Barclays PLC                                   Norwich Union plc
Bass PLC                                       Novartis AG
The Boots Company PLC                          Prudential Corporation plc
Britannic PLC                                  Railtrack Group PLC
British Aerospace plc                          Reckitt & Benckiser plc
British Telecommunications plc                 Reuters Group PLC
Cable and Wireless plc                         Roche Holdings AG
Cadbury Schweppes plc                          Schroders plc
Credit Suisse Group                            Schweiz Ruckversicherungs
De Beers Consolidated Centenary A.G.           The 'Shell' Transport and
                                                 Trading Company p.l.c.
Diageo plc                                     SmithKline Beecham plc
Fortis N.V.                                    Smiths Industries plc
Glaxo Wellcome plc                             Swiss Life
Hilton Group PLC                               UBS AG
HSBC Holdings plc                              Unilever PLC
ING Groep N.V.                                 Union Transport Inc.
Johnson, Matthey plc                           Vodafone Airtouch PLC
Land Securities PLC              



Unaudited Consolidated Profit and Loss Account
                                           Half-Year         Full-Year
                                             Ended               Ended  
                                         31st December            June  
                                         1999      1998           1999  
                                         £000      £000           £000  
Operating Income                                                    
Dividends received                        118       151            287  
Interest and sundry income                 15        41             31  
Profit on sales of investments            233        37             67  
                                                                    
                                          366       229            385  
Management services income                211       174            387  
                                                                    
                                          577       403            772  
Administrative expenses                                             
    Investment operations               (153)     (147)           (245)  
    Management services                 (212)     (167)           (392)  
                                                                    
Total administrative expenses           (365)     (314)           (637)  
                                                                    
                                                                    
Operating Profit                          212        89            135  
Share of result of associated              80        58            147  
undertaking
Interest payable                          (48)      (39)           (74)  
                                                                    
Profit on ordinary activities before      244       108            208  
taxation
Tax on result of ordinary activities     (16)        14            209  
                                                                    
Profit on ordinary activities after       228       122            417  
taxation
Minority interest                           -         9             10  
                                                                    
Profit attributable to members of the     228       131            427  
holding company
Proposed dividends                          -         -           (255)  
                                                                    
Retained profit for the financial year    228       131            172  
                                                                    
                                                                    
Earnings per share                       0.89 p    0.51 p         0.67 p
Dividend per share                        Nil       Nil           1.00 p

All profits arise on continuing activities
                                        



Unaudited Consolidated Balance Sheet


                                           Half-Year                
                                             ended            Year ended  
                                           31st December            June  
                                         1999      1998             1999  
                                         £000      £000             £000  
Fixed assets                                                        
Tangible assets                           517       499              505  
Investment                              6,320     5,645            5,812  
                                                                    
                                        6,837     6,144            6,317  
Current assets                                                      
Listed investments                      3,565     3,119            3,724  
Unlisted investments                       54        43               54  
Debtors                                   175       282              222  
Cash, bank balances and deposits           46       256               95  
                                                                    
                                        3,840     3,700            4,095  
Creditors: falling due within one year (1,773)   (1,313)          (1,736)  
                                                                    
Net Current Assets                      2,067     2,387            2,359  
                                                                    
Total Assets less Current Liabilities   8,904     8,531            8,676  
Provision for Liabilities and Charges                               
    Deferred taxation                       -         -                -  
                                                                    
                                        8,904     8,531            8,676  
                                                                    
                                                                    
Capital and reserves                                                
Called up share capital                 1,276     1,276            1,276  
Share premium account                     956       956              956  
Reserve                                   361       257              361  
Profit and loss account                 6,259     5,990            6,031  
                                                                    
Shareholders funds                      8,852     8,479            8,624  
Minority equity interests                  52        52               52  
                                                                    
                                        8,904     8,531            8,676  
                                                                    
                                                                    



Notes:-

1. Accounting policies
   The results for the half-year are unaudited and have been prepared on the
   basis of the accounting policies adopted in the accounts for the year ended
   30th June 1999.

2. Earnings per share
   Earnings per share are based on the profit after taxation and minorities,
   and on the average number of shares 25,520,274 (December 1998 and June 1999  
  - 25,520,274), in issue during the period.

3. The financial information in this preliminary announcement of unaudited
   Group results does not constitute statutory accounts within the meaning of
   Section 240(5) of the Companies Act 1985.  The audited accounts of the       
  Group for the period ended 30th June 1999 have been reported on with an
   unqualified audit report in accordance with Section 235 of the Companies     
  Act 1985 and have been delivered to the Registrar of Companies.