Interim Results

Monteagle Holdings
26 June 2001

                      MONTEAGLE HOLDINGS SOCIETE ANONYME

                (Incorporated in Luxembourg (C Number B19600)



                             INTERIM REPORT 2001
Registered Office:
6 rue Adolphe Fischer,
L-1520, Luxembourg                                               26th June 2001



TO THE MEMBERS

I am pleased to be able to report on another satisfactory half year for our
Group. Turnover for the group, including associates, has increased to
US$27,979,000 for the six months to 31st March 2001, compared to
US$27,287,000, mainly because our subsidiary had a good farming year also our
new acquisition St. James's Tea, which markets speciality teas in the U.K.,
made a contribution for the first time. Profit before tax and exceptional
items has increased from US$605,000 to US$687,000 and this is analysed by
activity in note 2. Special credit must go to all our employees in Zimbabwe
for maintaining both the agricultural and gold mining operations during the
current unsettled political climate.

Our property operations achieved mixed results. Improvements in the U.S.A.
were largely offset by the 25% devaluation of the South African Rand relative
to the US Dollar and income was also reduced following the sale of one of our
South African properties.

The trading margins of our import and distribution businesses, which are based
mainly in South Africa, also suffered because of the devaluation. However,
increased turnover limited the shortfall in contribution to Group results.

Our commercial agriculture and horticulture operations in Zimbabwe have
increased their contribution to group profit before tax by 17%, despite the
unstable operating environment. Sales of the most significant crops (tea,
flowers, and tobacco) are denominated in hard currencies and this has helped
us cope with local cost inflation, which is still in excess of 55%. Sales of
the produce of our subsidiary operations are seasonal and the bulk of their
contribution is recognised in the second half of the year.

The results of the gold mines in Zimbabwe are being squeezed between rapidly
inflating input costs and revenue constrained by a combination of a fixed
exchange rate and the continuing depressed international price of gold. The
Government of Zimbabwe has recently introduced a Gold Price Support scheme to
assist gold producers, but, in the absence of some further favourable
developments by the government, most of the mines may have to be closed before
the end of the calendar year. No provision has been made at this stage for any
closure costs.

The blue chip nature of our portfolios enabled us to weather the recent stock
market turbulence in so-called new technology stocks. Subsequent to 31st March
2001, in view of the uncertain outlook, we have sold substantially all of our
South African portfolio and intend to re-invest the proceeds in hard currency
areas. We believe that in the long term, this will reduce the element of risk
and enhance shareholder value. We have also, subsequent to 31st March, sold
our entire U.S. portfolio as we consider that the short-term prospect for
equity investments in the United States is limited. Ready cash puts us in a
strong position to take advantage of the new opportunities that will arise
when the current period of uncertainty in world equity markets has run its
course. Our gradual re-investment programme will further enhance our net
assets in hard currencies.

The group's net assets at market value were US$32,205,000 (US$5.10 per share)
at 30th September 2000. These have increased to US$32,659,000 (US$5.18 per
share) at 31st March 2001 of which US$2.02 per share is represented by our
investment portfolios and other assets outside southern Africa.

We remain very concerned about future developments in Zimbabwe, however we
believe that the diversity of our operations and strong balance sheet will
enable us to continue to deliver increasing value to shareholders.

J.M. Robotham,                     D.C. Marshall
Chairman                           Chief Executive

Offices:

United Kingdom:                    South Africa:
25 City Road,                      11 Sunbury Park,
London, EC1Y 1BQ                   La Lucia 4051,
                                   Durban
Transfer agents:

Europe                             South Africa
C.I. Registrars Limited            Mercantile Registrars Limited
Cresta House, Alma Street,         11 Diagonal street
Luton, Bedfordshire,               Johannesburg 2001
LU1 2PU, U.K                       (P.O. Box 1053, Johannesburg, 2000



Consolidated group profit and loss account


                                                 Half years ended    Year ended
                                                    31st March      30th
                                                                    September
                                                     2001      2000        2000
                                          Notes Unaudited Unaudited
                                                   US$000    US$000      US$000

Group Revenue including Associates                27,979    27,287      55,436

Less revenue of Associates                       (17,388)  (17,238)    (30,385)

Group revenue                               2     10,591    10,049      25,051

Operating costs                                  (10,108)   (9,451)    (23,651)

Operating profit                                     483       598       1,400

Share of associated companies' results               274       140         616

Income from investments - dividends                  197       196         435
                                                      
                        - interest                    76        63         200

                                                   1,030       997       2,651

Interest paid and similar charges                   (343)     (392)     (1,309)

Profit on ordinary activities before                 687        605      1,342
exceptional items
and taxation

Exceptional items                           3         83     1,511       1,948

Profit before taxation                               770     2,116       3,290

Taxation                                            (231)     (524)       (446)

Profit after taxation                       2        539     1,592       2,844

Attributable to outside shareholders                (205)     (648)       (999)

PROFIT ATTRIBUTABLE TO SHAREHOLDERS                  334       944       1,845


Dividend - (2000 - 8.5c per share)                     -         -         536


Earnings per share (US cents) - basic       4        5.2c     15.0c       29.3c


Headline earnings per share (US cents)               4.3c      1.2c        8.2c





Changes in equity

Net profit for the period                        334           944       1,845

Revaluations                                     (38)         (127)      2,630

Exchange differences                            (742)           13      (4,030)

Proposed dividend                                   -            -        (536)

Total recognised (losses)/profits               (446)          830         (91)

Shareholders funds at start of period         24,600        24,691      24,691


Shareholders funds at end of period           24,154        25,521      24,600





Consolidated group balance sheet


                                                     31st March            30th
                                                                      September
                                                      2001      2000       2000
                                                 Unaudited Unaudited
                                           Notes    US$000    US$000     US$000

Fixed assets
Tangible fixed assets                              20,943    19,395     21,633
Investments                                  6     16,588    19,769     17,391
                                                   37,531    39,164     39,024

Current assets
Inventories                                         5,170     5,886      5,176
Debtors                                             4,033     4,102      4,118
Cash                                                1,362     1,597      1,493
                                                   10,565    11,585     10,787

Current liabilities
Creditors (falling due within one year)           (10,115)  (11,956)   (10,786)

Net current assets                                    450      (371)         1

Total assets less current liabilities              37,981    38,793     39,025

Creditors (falling due after more than one         (3,702)   (3,791)    (3,876)
year)

Provisions for liabilities and deferred            (2,414)   (2,276)    (2,654)
taxation
                                                   31,865    32,726      32,495


Capital and reserves

Share capital                                       9,450     9,450      9,450

Share premium                                       2,411     2,411      2,411

Other reserves                                      6,493     8,090      6,760

Retained earnings                                   5,800     5,570      5,979


Shareholders' funds                                24,154    25,521     24,600

Minority interests                                  7,711     7,205      7,895

                                                    31,865   32,726     32,495

Shareholders funds including listed          6     32,659    33,899     32,205
investments at market value

Net assets per share                         6     US$5.18   US$5.38    US$5.10



Consolidated cash flow statement


                                                 Half years ended    Year ended
                                                    31st March      30th
                                                                    September
                                                     2001      2000        2000
                                                Unaudited Unaudited
                                                   US$000    US$000      US$000

Operating activities
Cash (absorbed by)/generated from                   (109)   (2,694)         51
operating activities
Interest paid                                       (343)     (502)     (1,309)
Taxation paid                                       (311)     (562)       (520)
Net cash outflow from operating                     (763)   (3,758)     (1,778)
activities

Investment activities
Purchase of tangible fixed assets                   (158)     (307)     (1,025)
Purchase of investments                             (210)     (850)     (3,005)
Disposal of tangible fixed assets                      -       112       1,430
Disposal of investments                              775     2,139       4,259
Interest received and other investment               274       260         635
income
Dividends received from associates                    67       176         227
Net cash inflow from investment                      748     1,530       2,521
activities
Net cash (outflow)/inflow before                     (15)   (2,228)        743
financing

Financing activities
Net decrease in long term financing                  (46)      (68)        235
Dividend paid - group                                  -         -        (536)
             - minority shareholders                  (8)        -         (76)
             

Net cash outflow from financing                      (54)      (68)       (377)
activities

Net (decrease)/increase in cash                      (69)   (2,296)        366

Net debt at start of period                       (2,750)   (3,487)     (3,487)

Effect of foreign exchange rates                     179         -         371

Net debt at end of period                         (2,640)   (5,783)     (2,750)





Notes to the interim statement

1. The results and the cash flow statement for the half-year ended 31st March
2001 are unaudited and have been prepared on the basis of accounting policies
adopted in the accounts for the year ended 30th September 2000 and comply with
International Accounting Standards and Luxembourg law in all material
respects. The results for the year to 30th September 2000 are an abridged
version of the group's full accounts for that year which received an
unqualified auditor's report and have been filed with the relevant
authorities.

2. The segmental analysis of turnover and operating profit is as follows: -

                               Half years ended 31st March    Year ended 30th
                                                                 September
                                   2001           2000             2000
                                  US$000         US$000           US$000
                              Revenue Result Revenue Result Revenue      Result
Analysed by activity:-

Property                          761   272      758   269    1,474        534

Import/distribution             7,323   415    7,146   440   15,704        851

Farming                         1,540     7    1,147    19    5,188        401

Gold mining                       967   140      914   291    2,042        346

Other                               -   (78)      84  (162)     643        (97) 

                               10,591   756   10,049   857   25,051      2,035

Share of associated companies
results:-

Farming                        12,518    451  12,232    372  20,365         899

Gold mining                     4,870  (177)   5,006  (232)  10,020       (283)
                                
Group revenue including        27,979         27,287         55,436
associates

Interest paid                          (343)          (392)             (1,309)
                                                      
Profit before exceptional                687            605               1,342
items

Exceptional items                         83          1,511               1,948

Profit before tax                        770          2,116               3,290



3. The exceptional items arise from the surplus on disposal of investments and
tangible fixed assets. Exceptionals are substantially below the comparative
period because of the sale of Kent Estate in 1999, which realised a profit of
US$1,181,000, and lower profits on realisation of investments in the first
half of the current year.
                                                       31st March          30th
                                                                      September
                                                       2001    2000        2000
                                                      US$000  US$000      US$000

Surplus on disposal of listed and unlisted             104     323          992
investments

(Deficit)/Surplus on disposals of tangible fixed       (32)  1,208          901
assets

Share of associated company's surplus on disposal of    11       -           55
fixed assets

Investment provisions                                     -    (20)           -

Exceptional items - net income                           83   1,511       1,948




4. Earnings per share are based on profits attributable to members and on the
average of 6,300,000 shares in issue during the period, allowing for the
shares held in Treasury. Headline earnings per share exclude extraordinary
items after tax.



5. Net assets

Investments at book value                                  16,588 19,769 17,269

Listed investments at market value and other investments
at cost                                                    25,093 28,147 24,874

Net unrealised profits on investments (before tax)          8,505  8,378  7,605

Shareholders' funds                                        24,154 25,521 24,600

Net assets attributable to shareholders                    32,659 33,899 32,205



6. Net assets per share are based on Shareholders' funds plus net unrealised
profits on investments (before tax) divided by the number of shares in issue
at the period end.

7. Capital expenditure during the period was US$158,000. Capital expenditure
not provided but contracted, and authorised but not contracted, as at 31st
March 2001 amounted to US$20,000 and US$18,000 respectively.