Interim Results

Mentmore Abbey Plc
4 December 2001

Immediate release                     4 December 2001
                    



                              MENTMORE ABBEY plc

                    INTERIM ANNOUNCEMENT OF RESULTS

               FOR THE SIX MONTHS ENDED 31 OCTOBER 2001

RESULTS REFLECT GOOD DEMAND FOR ALL OUR SERVICES.  THE CUSTOMER BASE REMAINS
STABLE AND RESILIENT AND THE BUSINESS MAINTAINS ITS STRONG CASH GENERATION.
THE RESULTS ARE IN LINE WITH OUR EXPECTATIONS.

*         Profit before tax of £15.5 million (2000: £6.7 million)
*         Earnings per share of 6.66p (2000: 2.18p)
*         Disposal of 20% stake in Workspace generated £29.9 million of cash
          and an exceptional  profit before tax of £9.6 million.
*         Before goodwill amortisation and exceptionals
          -          EBITDA of £17.0 million (2000: £16.5 million)
          -          Total operating profit of £14.1 million (2000: £14.2       
                     million)
          -          Interest covered 3.0 times (2000: 2.7 times)
          -          Profit before tax of £9.4 million (2000: £9.5 million)
          -          Earnings per share of 3.55p (2000: 3.83p)
*         Net debt £149.7 million (2000: £151.0 million) with gearing 71%
         (2000: 84%)
*         Interim dividend maintained at 0.402p

Personal storage

-          39 centres: a record additional 10,000 sq. m. let
-          Let space 120,000 sq. m. out of capacity of 200,000 sq. m.
-          Annualised storage revenues increased by 31% to £19.6 million
-          Benefits from re-branding already evident
-          34% of developed space less than two years old
-          Une Piece en Plus, based in Paris, ahead of expectations

Serviced Business Space

-          Focus on developing new sites and upgrading existing outlets
-          Development and upgrade costs of £0.8 million
-          After costs performance broadly similar to last year
-          Demand good:  2% increase in like-for-like occupancy
-          Enhanced service offering and improved facilities following
           upgrades

Records Management  (Iron Mountain Europe - 49.9% owned joint venture)

-          Strong benefits evident from last year's investment programme
-          Major contracts won and prices increased
-          Revenues increased by 66% and our share of operating profits
           doubled to £1.8 million


Commenting on the results and prospects, Nick Smith, Chairman, said:

'We have delivered results in line with our plans. Our personal  storage
business, both within the UK and France, continued to grow.  Iron Mountain
Europe, our records management business, demonstrated a strong profit recovery
and new business wins.  As planned, serviced business space focused on
developing new sites and upgrading existing outlets and, after taking into
account the associated costs, trading remained at a similar level to last
year.

Each of our markets is underdeveloped and continues to demonstrate growth.
The heavy investment in the current period will give us a strong base from
which to offer an increasing range of service based solutions to our
customers.  This will leave us in a position to continue our drive for ongoing
growth in profits for your company in the coming years.'

Contacts:

Mentmore Abbey plc                                       020 8946 3159

Nick Smith, Chairman
Kim Taylor-Smith, Chief Executive
Clive Drysdale, Finance Director

Bridgewell Corporate Finance                             020 7626 3322
Ian Dighe
Greg Aldridge

Buchanan Communications                                  020 7466 5000
Charles Ryland
Catherine Miles

Dresdner Kleinwort Wasserstein                           020 7623 8000
Charles Batten


EDITORS NOTE:

Personal storage

The group has 39 centres providing self-managed storage units for personal
customers and small and medium-sized businesses on flexible terms.

Serviced business space

The group has 217 serviced business space centres offering trading or office
space on flexible terms to businesses of all kinds.

Records management

Our records management business is a partnership with Iron Mountain
Incorporated, the world's leading records management company.  It services
customers across Europe.


Chairman's Statement

Introduction

I am pleased to report our interim results for the six months to 31 October
2001 which reflect good demand for all our services.  The customer base
remains stable and resilient and the business maintains its strong cash flow.
The results are in line with our expectations.

Our personal storage business, both within the UK and France, continued to
grow.  Iron Mountain Europe, our records management business, demonstrated a
strong profit recovery and new business wins.  As planned, serviced business
space focused on developing new sites and upgrading existing outlets and,
after taking into account the associated costs, trading remained at a similar
level to last year.

Financial review

                                                Six months ended 31 October
Before goodwill amortisation and exceptionals   2001           2000
Total operating profits                         £14.1m         £14.2m
EBITDA                                          £17.0m         £16.5m
Profit before tax                               £9.4m          £9.5m
Earnings per share                              3.55p          3.83p

The profit before tax was adversely affected by £0.8 million of costs
associated with our investment programme in serviced business space.   Also,
the results for the current period include £0.1 million of property profits
compared to £0.6 million last time.  After adjusting for these, pre tax
trading profit grew by £1.2 million (14%).

Personal storage

Personal storage continued to deliver strong growth.  In the period we let a
record additional 10,000 square metres of space.  We now have 120,000 square
metres of let space out of a total capacity of 200,000 square metres.

In the UK revenues grew by 31% and operating profits by 22% versus the same
period last year.  The programme to upgrade our sites to the new 'spaces'
format has accelerated since we overcame the bottleneck of local planning
constraints.  This new format puts our centres at the forefront of the
industry and has been well received by our customers.

In Paris, Une Piece en Plus, which now has six sites open and another under
development, traded ahead of our expectations.  Annualised storage revenue
increased in the period to £1.8 million.  Both Montparnasse and Rue de
Pyrenees are now open and contributing, however these new stores did not
materially impact the numbers.  Losses in Paris reflect the age and profile of
this business.

Overall, revenues in the half year were up 39% to £10.2 million (2000: £7.4
million) and operating profits grew 14% to £3.6 million (2000: £3.2 million).

Serviced business space

As expected, serviced business space profit did not grow in the period as
space was taken out of commission for upgrading.  However, demand for our
flexible serviced accommodation remains good with a 2% increase in like for
like occupancy.

We acquired two existing business centres in Leeds and Altrincham late in the
period.  These are attractive additions, which meet our business and financial
expectations.   We sold two older sites that no longer met our criteria.

During the period we had 22 centres in various stages of development of which
six have already been completed.  In addition, we are upgrading a further four
centres.  The operating costs and lost revenues relating to these developments
and the upgrade programme amounted to over £0.8 million in the period.
Capital expenditure on these was £16.9 million.

Increasing consumer expectations makes our upgrade programme for InShops even
more timely.  A trial project in Clydebank resulted in a 30% uplift in income.
As a result, we will upgrade two further centres in the New Year; these
closures will incur costs but the rewards will fully justify the investment.

Overall, revenues in the period increased to £26.2 million (2000: £25.9
million).  While the underlying trading was broadly in line with last year,
the £0.8 million upgrade and development costs reduced operating profits to £
8.7 million (2000: £9.6 million).

Iron Mountain Europe

Iron Mountain Europe, our joint venture records management business, confirmed
our belief in the quality of this market.  We demonstrated the first benefits
of last year's investments by increasing our share of revenues by 66% to £12.9
million (2000: £7.8 million) and doubling operating profits to £1.8 million
(2000: £0.9 million).

We have increased prices, improved efficiency and won major new contracts.
These contracts have been won on the basis of a superior product and service
and have all been at attractive margins.

Other

During the period we sold our stake in Workspace Group plc.  This generated
cash of £29.9 million and a profit before tax of £9.6 million.  The proceeds
have been invested in new capacity, which will help to drive our growth in
future years.

Our people continue to respond magnificently to the changing environment in
which we operate.  On behalf of all shareholders, I thank them for their
continued efforts and support.

Dividend

We are maintaining the interim dividend at 0.402 pence per ordinary share.
This will be paid on 8 April 2002 to shareholders on the register on 1 March
2002.

Outlook

Each of our markets is underdeveloped and continues to demonstrate growth.
The heavy investment in the current period will give us a strong base from
which to offer an increasing range of service based solutions to our
customers.  This will leave us in a position to continue our drive for ongoing
growth in profits for your company in the coming years.

Group profit and loss account
for the six months ended 31 October 2001
                                                        Six       Six
                                                     months    months
                                                      ended     ended      Year
                                                                          ended
                                                         31        31  30 April
                                                    October   October
                                                       2001      2000      2001
                                                                   as        as
                                                             restated  restated
                                            Notes     £'000     £'000     £'000
Turnover                                      2      37,945    35,661    75,019
Continuing operations:
Group and share of joint venture                     50,886    43,476    94,093
Less: group's share of joint venture               (12,941)   (7,815)  (19,074)
Group                                                37,945    35,661    75,019
Operating profit                                      9,442    10,864    24,469
Continuing operations:
Before goodwill amortisation                         12,297    13,347    29,803
Goodwill amortisation                               (2,855)   (2,483)   (5,334)
                                                      9,442    10,864    24,469
Share of operating profit in joint venture:
Before goodwill amortisation                          1,754       881     1,955
Goodwill amortisation                                 (675)     (340)     (917)
                                                      1,079       541     1,038
Total operating profit                        2      10,521    11,405    25,507

Before goodwill amortisation                         14,051    14,228    31,758
Goodwill amortisation                         2     (3,530)   (2,823)   (6,251)
Profit on disposal of investment                      9,646         -         -
Income from other fixed asset investments                 -       476       683
Profit on ordinary activities before
interest                                             20,167    11,881    26,190
Net interest payable                                (4,630)   (5,202)  (10,854)
Profit on ordinary activities before
taxation                                             15,537     6,679    15,336
Taxation                                      3     (3,502)   (2,934)   (6,152)
Profit on ordinary activities after
taxation                                             12,035     3,745     9,184
Before goodwill amortisation and              4
exceptionals                                          6,419     6,568    15,435
Goodwill amortisation and exceptionals                5,616   (2,823)   (6,251)
Dividends                                             (729)     (752)   (2,237)
Retained profit for the period                       11,306     2,993     6,947
Earnings per share                            4
Basic                                                 6.66p     2.18p     5.24p
Basic before goodwill amortisation and                3.55p     3.83p     8.81p
exceptionals
Diluted                                               6.62p     2.13p     5.12p
Diluted before goodwill amortisation and
exceptionals                                          3.53p     3.74p     8.61p
Dividends per share                                  0.402p    0.402p    1.222p

Group balance sheet
as at 31 October 2001

                                                         31        31  30 April
                                                    October   October
                                                       2001      2000      2001
                                                                   as        as
                                                             restated  restated
                                            Notes     £'000     £'000     £'000
Fixed assets
Intangible assets                                   103,790   108,647   106,508
Tangible assets                                     234,105   204,405   214,416
Investment in IME joint venture                      30,795    20,986    33,273
- share of gross assets                              59,068    34,686    58,708
- share of gross liabilities                       (42,095)  (29,326)  (41,567)
- share of net assets                                16,973     5,360    17,141
- loans to joint venture                             13,822    15,626    16,132
Own shares                                              216       257       222
Other investments                                       250    20,488       250
                                                    369,156   354,783   354,669
Current assets
Stocks and developments in progress                  15,046     1,217     2,315
Assets held for resale                                5,221     6,564     5,231
Debtors                                              10,397     7,994     9,491
Investments                                               -         -    20,238
Cash at bank and in hand                              8,767     8,631     8,465
                                                     39,431    24,406    45,740
Creditors: amounts falling due within one          (49,695)  (86,820)  (49,560)
year
                                                   
Net current liabilities                            (10,264)  (62,414)   (3,820)
Total assets less current liabilities               358,892   292,369   350,849
Creditors: amounts falling due after more         (143,856) (110,632) (148,199)
than one year
Provisions for liabilities and charges              (4,021)   (2,262)   (3,345)
Net assets                                          211,015   179,475   199,305

Capital and reserves
Called up share capital                              18,129    17,215    18,097
Share premium account                               130,131   115,030   129,804
Other reserve                                        27,226    27,226    27,226
Profit and loss account                              35,529    20,004    24,178
Equity shareholders' funds                    7     211,015   179,475   199,305


Group cash flow statement
for the six months ended 31 October 2001

                                                      Six       Six
                                                   months    months
                                                    ended     ended      Year
                                                                        ended
                                                       31        31  30 April
                                                  October   October
                                                     2001      2000      2001
                                          Notes     £'000     £'000     £'000
Cash flow from operating activities         5      15,435    15,917    33,219
Returns on investment and servicing of            (2,462)   (3,263)   (7,619)
finance
Proceeds from sale of investment                   29,884         -         -
Taxation                                          (2,116)       480   (1,692)
Capital expenditure                              (23,203)  (15,166)  (26,078)
Development on behalf of joint venture           (12,018)         -         -
Loans repaid by/(made to) joint venture             2,310   (1,423)   (1,929)
Acquisitions and disposals                              4  (24,426)  (31,056)
Equity dividends paid                             (1,484)   (1,410)   (2,162)
Cash inflow/(outflow) before use of
financing                                           6,350  (29,291)  (37,317)
                                                    
Financing
- issue of shares                                     321       216     3,259
- (decrease)/increase in debt                     (6,846)    26,718    39,268
(Decrease)/increase in cash in the period           (175)   (2,357)     5,210


Reconciliation of net cash flow to movement in net debt
for the six months ended 31 October 2001


                                                        Six       Six
                                                     months    months
                                                      ended     ended
                                                         31        31      Year
                                                    October   October     ended
                                                       2001      2000  30 April
                                                                           2001
                                            Notes     £'000     £'000     £'000
(Decrease)/increase in cash in the period             (175)   (2,357)     5,210
Cash inflow from change in debt and lease
financing                                             6,846  (26,718)  (39,268)
                                                      
Change in net debt resulting from cash                6,671  (29,075)  (34,058)
flows
Loans and finance leases acquired with
subsidiary undertakings                                   -   (6,102)   (6,141)
                                                          
Non-cash movements                                     (69)   (8,243)   (8,531)
Movement in net debt in the period                    6,602  (43,420)  (48,730)
Net debt at beginning of the period               (156,351) (107,621) (107,621)
Net debt at end of the period                 6   (149,749) (151,041) (156,351)



Non-cash movements include £8.2 million of vendor loan notes issued on the
acquisition of British Self-Storage in June 2000.

Notes to the interim results
for the six months ended 31 October 2001

1. Basis of preparation

The interim results have not been audited but have been reviewed by the
auditors. They have been prepared on the basis of accounting policies
consistent with those adopted for the year ended 30 April 2001 with the
exception of the adoption of the new accounting standard on deferred tax.
Details of this change in accounting policy are set out in note 3. The
comparative figures for the year ended 30 April 2001 and other financial
information contained herein do not constitute statutory accounts within the
meaning of Section 240

of the Companies Act 1985. Statutory accounts for the year ended 30 April
2001, which received an audit report which was unqualified and did not contain
statements under Section 237(2) or (3) of the Companies Act 1985, have been
filed with the Registrar of Companies.

2. Segmental analysis


                               Six months       Six months
                                    ended            ended
                               31 October       31 October           Year ended
                                     2001             2000        30 April 2001
                                    £'000            £'000                £'000
Turnover
Continuing operations:
Personal storage                   10,247            7,358               16,276
Serviced business space            26,162           25,885               51,360
Property disposals                      -            1,025                4,345
Other                               1,536            1,393                3,038
                                   37,945           35,661               75,019
Total operating profit
Continuing operations:
Personal storage                    3,604            3,166                7,177
Serviced business space             8,677            9,589               20,098
Records management                  1,754              881                1,955
Property disposals                     80              617                2,541
Other                                (64)             (25)                 (13)
Goodwill amortisation             (3,530)          (2,823)              (6,251)
                                   10,521           11,405               25,507

3. Taxation

The tax charge on profits before goodwill amortisation and exceptionals for
the six months ended 31 October 2001 is based on an estimated effective rate
of 31.9% for the year ending 30 April 2002. In addition to this the charge for
the period includes an amount of £0.5 million relating to the profit on the
disposal of investments.

Financial Reporting Standard 19 - Accounting for deferred tax ('FRS 19') has
been adopted with effect from 1 May 2000. FRS 19 requires that deferred tax be
recognised in respect of all timing differences that have originated but not
reversed by the balance sheet date. The group's previous accounting policy in
respect of deferred tax was to only recognise deferred tax to the extent that
it was probable that a liability would crystallise.

The effect of adopting FRS 19 is to reduce profit after tax for the current
period by £0.8 million (2000: £0.8 million) from £12.8 million to £12.0
million and to reduce opening net assets at 30 April 2001 by £3.3 million from
£202.6 million to £199.3 million. Basic earnings per share for the six months
ended 31 October 2000 have been restated from 2.64p to 2.18p and for the same
period basic earnings per share before goodwill amortisation and exceptionals
have been restated from 4.29p to 3.83p. Prior year comparatives have been
restated accordingly.

4. Earnings per share

Basic earnings per share are calculated on profit after tax of £12.0 million
(2000: £3.7 million as restated), divided by 180.8 million ordinary shares
(2000: 171.4 million ordinary shares) being the weighted average number of
shares in issue during the period. Diluted earnings per share are calculated
after allowing for the dilutive effect of conversion into ordinary shares of
the weighted average number of share options outstanding during the period.
The number of shares used for the diluted earnings per share calculation was
181.7 million (2000: 175.8 million). The weighted average number of shares
used to calculate earnings per share excludes shares held by the Quest.

Basic earnings per share before goodwill amortisation and exceptionals has
been separately disclosed on the face of the profit and loss account to
facilitate comparison of the underlying performance of the group. The
calculation uses the same weighted average number of shares in issue as for
the basic earnings per share but reflects the following items:

                                                         Six      Six
                                                      months   months
                                                       ended    ended
                                                          31       31      Year
                                                     October  October     ended
                                                        2001     2000  30 April
                                                                           2001
                                                                   as        as
                                                             restated  restated
                                                       £'000    £'000     £'000
Profit after tax
As for basic earnings per share                       12,035    3,745     9,184
Goodwill amortisation                                  3,530    2,823     6,251
Profit on disposal of investment                     (9,646)        -         -
Tax on profit on disposal of investment                  500        -         -
As for basic earnings per share before goodwill
amortisation and exceptionals                          6,419    6,568    15,435
                                                       
                                                         Six      Six
                                                      months   months
                                                       ended    ended     Year
                                                                         ended
                                                          31       31 30 April
                                                     October  October
                                                        2001     2000     2001
                                                                   as       as
                                                             restated restated
                                                           p        p        p
Earnings per share
Basic earnings per share                                6.66     2.18     5.24
Goodwill amortisation                                   1.95     1.65     3.57
Profit on disposal of investment                      (5.33)        -        -
Tax on profit on disposal of investment                 0.27        -        -
Basic earnings per share before goodwill
amortisation and exceptionals                           3.55     3.83     8.81

Diluted earnings per share before goodwill amortisation and exceptionals
similarly reflects the above adjustments but uses the same weighted average
number of shares in issue as for diluted earnings per share.


5. Reconciliation of operating profit to cash flow
from operating activities

                                                      Six      Six
                                                   months   months
                                                    ended    ended
                                                       31       31  Year ended
                                                  October  October
                                                     2001     2000    30 April
                                                                          2001
                                                    £'000    £'000       £'000
Operating profit                                    9,442   10,864      24,469
Goodwill amortisation                               2,855    2,483       5,334
Depreciation charge                                 2,270    1,775       3,625
Profit on sale of tangible fixed assets              (80)      (1)       (612)
Decrease in stocks and assets held for resale       1,208      909         928
(Increase)/decrease in debtors                      (493)    1,070       (235)
Increase/(decrease) in creditors                      242  (1,192)       (306)
(Decrease)/increase in provision for liabilities
and charges                                           (9)        9          16
                                                      
                                                   15,435   15,917      33,219

6. Net debt


                                   31 October     31 October
                                         2001           2000      30 April 2001
Net debt comprises:                     £'000          £'000              £'000
Cash at bank and in hand                8,767          8,631              8,465
Overdrafts                            (4,722)       (12,046)            (4,313)
Bank loans                          (145,551)      (139,376)          (152,252)
Finance leases                              -            (7)                (8)
Deferred acquisition loan notes       (8,243)        (8,243)            (8,243)
                                    (149,749)      (151,041)          (156,351)



Bank loans, finance leases and deferred acquisition loan notes include amounts
due after more than one year amounting to £143.8 million (2000: £110.5 million).

7. Reconciliation of movement in shareholders' funds

                                             31 October  31 October    30 April
                                                   2001        2000        2001
                                                        as restated as restated
                                                  £'000       £'000       £'000
Profit for the period                            12,035       3,745       9,184
Other recognised gains and losses in the             45          63         283
period
Shares issued net of expenses                       359         216      15,872
Dividends                                         (729)       (752)     (2,237)
Net addition to shareholders' funds              11,710       3,272      23,102
Opening shareholders' funds as previously       202,588     177,656     177,656
stated
Prior year adjustment                           (3,283)     (1,453)     (1,453)
Opening shareholders' funds as restated         199,305     176,203     176,203
Closing shareholders' funds                     211,015     179,475     199,305

8. Interim results statement

The interim results statement, which was approved by the Board on 4 December
2001, will be posted to all shareholders. Thereafter copies may be obtained
from the Company Secretary, Mentmore Abbey plc, Park House, 14 Pepys Road,
London SW20 8NH.