Interim Results

Panther Securities PLC
24 September 2004


Interim Results

                              CHAIRMAN'S STATEMENT

Introduction

I am delighted to report on the interim figures for the six months to 30th June
2004. Pre tax profits amount to £1,947,000 compared to £1,407,000 for the same
period last year.

Rental income receivable was £4,650,000 as against £4,423,000 for the comparable
half year.

Eurocity Properties PLC

On 27th May 2004 we sold Eurocity (Crawley) Limited which was a wholly owned
subsidiary of Eurocity Properties PLC. The consideration was £750,000 in cash
plus shares and convertible loan stock valued at £650,000 in Real Estate
Investments PLC, a new AIM listed property company. The ordinary shares were
issued to us at the placing price of 10p each and the current market price is
13p per share. If sold at these values we would have recouped almost the entire
cost of Eurocity Properties PLC from one third of its assets and income.

Elektron PLC

In December 2003 we assisted Elektron PLC in the acquisition of the business of
Arcolectric PLC from the receiver by purchasing Arcolectric's freehold factories
in West Molesey, Surrey, and then leasing them to Elektron PLC. This property
transaction was a good deal in its own right. In addition, we provided £500,000
of equity capital at 5.5p per Elektron PLC share. Now that the two businesses
have been merged and are substantially profitable, Elektron's share price has
risen to reflect this and at approximately 15p per share justifies our
confidence in this transaction.

Wickford, Essex

For some years we have owned a factory estate in Wickford, Essex which was held
on a long lease at a low fixed ground rent from Basildon District Council. In
May we purchased the freehold at auction for approximately £650,000 including
costs. Whilst this expenditure produces little extra income the factory estate
is now freehold and the quality and value of the investment is improved.

Panther House/Gray's Inn Road/Churchills public house

Panther House, Mount Pleasant and 156/164 Grays Inn Road (even), London WC1 were
sold at auction in July. The figure achieved of £8,810,000 was at the top end of
our expectations. Churchills public house in Mount Pleasant was sold after the
auction at £940,000. Yardworth Limited, our wholly owned subsidiary, took a 5
year management lease (with an option to break at the end of the 2nd year) on
Panther House at £400,000 per annum which is mostly covered by income from
sub-licensees - of course we now have to pay for the use of our own offices.

Most shareholders will know that Panther House was the company's Head Office for
70 years, initially bought by the original Levers Optical Company for £35,000
out of funds raised when it went public in 1934 and, since my involvement with
the company in 1972, has been the subject of much effort on our part to maximise
its value. Initially by creating London's first business centre (making small
licensed units available at affordable terms), acquiring an adjoining leasehold,
then freehold interests, negotiating for 25 years with London Regional Transport
to acquire their part of the site and during the same period and onward trying
to negotiate the planning aspect of the site with those Mandarins of the Soviet
Socialist Republic of Camden, to little avail, but much frustration. The final
outcome was indeed successful for the years of effort and I wish the purchaser
good luck and more success than we had with those 'Bureaucratic Terrorists' at
Camden.

Of course, the sales referred to in the previous two paragraphs are not
reflected in these half year figures.

On 21st June Panther acquired 15% of Hawtin PLC, an AIM quoted company (Portnard
Limited, one of my private companies, having previously acquired 14.5%). The
price paid in both instances was 13p per share. Hawtin PLC was previously a
conglomerate which had, in recent years, sold off all of its trading businesses
whilst retaining its former freehold factories as investments. It also holds 35
acres of land in Blackwood/Gwent, South Wales zoned for residential and
industrial use. The revalued book value of Hawtin PLC's net assets was 15p per
share. I have been appointed to its Board and hope it will prove a successful
investment for Panther.

Finance

Having drawn down the balance of our loan facility, and realised the Panther
House/Gray's Inn Road/Churchills complex we currently have approximately
£15,000,000 in cash available for investment. We are also in the process of
negotiating additional and improved facilities which will give us wider scope to
invest in any interesting and good value proposals that may become available to
us.

Dividends

We will be paying an interim dividend of 4p per share on 29th October 2004 and
it is the Board's intention to recommend an increased final dividend of not less
than 4.5p per share in due course.

Outlook

Whilst commercial property prices have been extremely resilient over the last
year, the residential market has begun to falter and I suspect will continue to
do so and thus will create a chain reaction slowing down general economic
activity. It is, however, in these times that our company is often able to
secure its most profitable investments. So, as always, I look forward to the
future with optimism and confidence.


INTERIM CONSOLIDATED RESULTS
for the six months ended 30th June 2004

                         Six months to   Six months to      Year ended
                             30th June       30th June   31st December
                                  2004            2003            2003
                           (Unaudited)     (Unaudited)       (Audited)
                                £' 000          £' 000          £' 000

Turnover                         4,679           4,741           9,791
Cost of sales                     (765)           (894)         (1,654)
                               --------        --------        --------
Gross profit                     3,914           3,847           8,137
Administrative expenses           (539)           (609)         (1,336)
                               --------        --------        --------
Operating profit                 3,375           3,238           6,801
Income from participating                       
 interests                          50              (2)            (67)
Income from current asset
 investments                        31              17             426
Profit on sale of subsidiary      
 subsidiary                        149               -               -
Amortisation of goodwill           221               -               -
Profit on disposal of               
 investments                         -               -             (20)
Interest receivable                 61             180             293
Interest payable                (1,940)         (2,026)         (4,020)
                               --------        --------        --------
Profit on ordinary activities 
 before taxation                 1,947           1,407           3,413
Taxation                          (453)           (413)           (880)
                               --------        --------        --------
Profit on ordinary activities
 after taxation                  1,494             994           2,533

Minority interests                  (2)              9               9
                               --------        --------        --------
Profit attributable to
 members of the Parent
  undertaking                    1,492           1,003           2,542

Dividends                         (680)           (850)         (2,125)
                               --------        --------        --------
Retained profits for the           
 6 months                          812             153             417

Transferred from revaluation                        
 reserve                           116               -               -

Retained profit brought         
 forward                        12,714          12,297          12,297
                               --------        --------        --------
Retained profit carried         
 forward                        13,642          12,450          12,714
                               ========        ========        ========
Earnings per share                 8.8p            5.9p           15.0p

Dividend per share -                
 special                             -             5.0p            5.0p
Dividend per share -
 interim                           4.0p            3.5p            3.5p
Dividend per share -
 final                               -               -             4.0p

Notes:

1. Results
The six months results have been prepared on the historical cost basis modified
to include the revaluation of fixed asset land and buildings, although no
further revaluation has been undertaken on any part of the property portfolio
since results were last reported. They are unaudited and do not constitute
statutory accounts within the meaning of section 240 of the Companies Act 1985.

2. Accounts
The figures for the year to 31st December 2003 have been extracted from the
statutory accounts which have been reported on by the Group's auditors and have
been delivered to the Registrar of Companies. The auditor's report was
unqualified and did not contain any statement under section 237(2), (3) or (4)
of the Companies Act 1985.

3. Accounting policies
Accounting policies and presentation are consistent to previous periods.

4. Dividends
An interim dividend of 4p per ordinary share will be paid on 29th October 2004
to shareholders on the Register on 8th October 2004.

5. Earnings per share
Earnings per ordinary share have been calculated on profit attributable to
members of the holding company and on 16,998,151 (June 2003 - 16, 986,593)
ordinary shares being the weighted average number of ordinary shares in issue
throughout the six months ended 30th June 2004.

6. Copies of this report are to be sent to all shareholders and are available
from the Company's registered office at Panther House, 38 Mount Pleasant, London
WC1X 0AP.


CONSOLIDATED BALANCE SHEET
for the six months ended 30th June 2004

                           30th June       30th June     31st December
                                2004            2003              2003
                         (Unaudited)     (Unaudited)         (Audited)
                              £' 000          £' 000            £' 000

Fixed assets
Tangible assets               93,020          79,807            93,996
Negative goodwill               (571)           (791)             (793)
Investments                    2,388             288               223
                             --------        --------          --------
                              94,837          79,304            93,426
                             --------        --------          --------
Current assets
Stock                          8,828           7,104             8,790
Current asset investments      1,600             945             1,297
Debtors                        3,186           2,422             5,580
Cash at bank and in hand       2,094           9,230             2,444
                             --------        --------          --------
                              15,708          19,701            18,111
Current liabilities

Creditors:
Amounts falling due
 within one year              (6,175)         (9,755)           (5,767)
                             --------        --------          --------
Net current assets             9,533           9,946            12,344
                             --------        --------          --------
Total assets less
 current liabilities         104,370          89,250           105,770

Creditors
Amounts falling due after
 more than one year          (53,362)        (50,715)          (55,576)

Minority interests               (92)            (94)              (90)
                             --------        --------          --------
Net assets                    50,916          38,441            50,104
                             ========        ========          ========
Capital and reserves
Share capital                  4,250           4,250             4,250
Revaluation reserve           29,355          18,072            29,471
Profit and loss account       13,642          12,450            12,714
Share premium account          2,886           2,886             2,886
Negative goodwill reserve        212             212               212
Capital redemption reserve       571             571               571
                             --------        --------          --------
Shareholders' funds           50,916          38,441            50,104
                             ========        ========          ========
Net assets per share           299.5p          226.2p            294.8p


GROUP CASH FLOW STATEMENT
for the six months ended 30th June 2004

                         Six months to   Six months to      Year ended
                             30th June       30th June   31st December
                                  2004            2003            2003
                           (Unaudited)     (Unaudited)       (Audited)
                                £' 000          £' 000          £' 000

Cash inflow from
 operating activities            5,777           3,356           2,242

Returns on investments and
 Servicing of finance
Interest received                   61             180             293
Interest paid                   (1,940)         (2,026)         (4,020)

Net cash outflow from returns
 on Investments and servicing
  of finance                    (1,879)         (1,846)         (3,727)

Taxation
Corporate tax paid                (171)            (14)         (1,097)

Capital expenditure and
 Financial investment
Purchase of investments         (1,797)           (264)         (2,026)
Sale of investments                  -               -           1,746
Purchase of minority interest        -               -            (267)
Purchase of other tangible
 fixed assets                   (1,056)            (44)         (2,841)

Net cash outflow from capital
 Expenditure and financial                       
  investment                    (2,853)           (308)         (3,388)

Acquisitions and disposals
Sale of subsidiary undertaking      26               -               -

Net cash inflow/(outflow)
 from Acquisitions and                    
  disposals                         26               -               -

Equity dividends paid             (671)         (1,435)         (2,036)
                               --------        --------        --------
Cash inflow/(outflow) before
 use of Liquid resources and
  financing                        229            (247)         (8,006)

Financing
(Decrease)/increase in debt       (577)           (223)            750
Issue of ordinary share capital      -              48              48

                                  (577)           (175)            798
                               --------        --------        --------
Decrease in cash                  (348)           (422)         (7,208)
                               ========        ========        ========

NOTES TO GROUP CASH FLOW STATEMENT
for the six months ended 30th June 2004

1. Reconciliation of net cash flow to movement in net debt

                 Six months to     Six months to        Year ended
                     30th June         30th June     31st December
                          2004              2003              2003
                   (Unaudited)       (Unaudited)         (Audited)
                        £' 000            £' 000            £' 000

Decrease in cash in
 the period               (348)             (422)           (7,208)
Loans acquired 
 on acquisition          1,730                 -                 -

Cash (outflow)/inflow
 from increase in debt     577               223              (750)
                       --------          --------          --------
Change in net debt
 arising from cash
  flows                  1,959              (199)           (7,958)
Net debt at start of
 period                (53,977)          (46,019)          (46,019)
                       --------          --------          --------
Net debt at period end (52,018)          (46,218)          (53,977)
                       ========          ========          ========

2. Analysis of net debt
                            At                                                At
                   1st January                            Disposal     30th June
                          2004         Cash flow       (excl cash)          2004
                        £' 000            £' 000             £'000        £' 000

Cash at bank and
 in hand                 2,444              (350)                -         2,094
Overdrafts                  (1)                1                 -             -
                       --------          --------          --------      --------
                         2,443              (349)                -         2,094

Debt due within                    
 one year                 (844)               94                 -          (750)
Debt due after
 one year              (55,576)              484             1,730       (53,362)
                       --------          --------          --------      --------
                       (56,420)              578             1,730       (54,112)
                       --------          --------          --------      --------
                       (53,977)              229             1,730       (52,018)
                       ========          ========          ========      ========


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