Interim Results

Pathfinder Properties PLC
22 September 2000


PATHFINDER PROPERTIES PLC

Results for the Six Months Ended 30 June 2000



HIGHLIGHTS


'We continue to concentrate our expertise on urban regeneration sites where
we can provide a mix of residential, leisure and retail development and where
demand remains strong..we are looking to build a sound reputation for
providing consistently good results over time.'


  o    Turnover £8.50 million (£8.6 million)

  o    Profit before tax £1.21 million (£0.84 million)

  o    Earnings per share 0.87 pence (0.85 pence)

  o    Interim dividend of 0.15 pence per share + 20 per cent



'Planning for the major sites at The Merchant Village, Glasgow, and River
Quay, Castleford, Manchester, where we have 50% interests, is progressing
according to timetable.   The planning application for the first phase of
River Quay has been submitted and detailed design for the second phase is
currently under consideration.  Acquisitions in the Merchant Village have
been completed and an application has been submitted for 360 apartments,
126,000 sq ft of retail and 110,000 sq ft of leisure and office space.   We
would expect to know the outcome of both applications before the end of the
year.

Both sites have attracted considerable interest from potential tenants,
construction partners and purchasers.'

Extracts from the Chairman's Statement




For further information, contact:

Malcolm Bacchus, Director                         Tel: [phone]

Issued by:
Andrew Marshall, Marshall Robinson Roe            Tel: [phone]




PATHFINDER PROPERTIES PLC

Results for the Six Months Ended 30 June 2000



Chairman's Statement

The Period under review

During the last six months we have been concentrating on adding value to our
existing sites through the planning process and through site assembly.

Profits for the period have been generated largely from the sale of Pall Mall
House, in Manchester, on which we acquired planning consent for a 18 storey
residential tower and recently sold for £3,800,000 and from our joint venture
development at 25 Church Street, Manchester.   At 30 June, we had achieved
sales or reservations on 67 of the 68 apartments at 25 Church Street then
being marketed.  The principal building works at 25 Church Street are now
close to completion and we have commenced marketing the 10 penthouse units
and freehold investment which form the remainder of the development.  Profits
have been taken on a prudent basis taking into account the percentage of work
done and the number of units sold at the end of the period.

Sales have also taken place of our final interests in Perth and of one
smaller property in the remainder of our Manchester Northern Quarter
portfolio generating turnover of £490,000.

A further three properties in our ex-BES second-hand residential portfolio
have been sold at prices in line with the valuations carried out at 31
December 1999.   Fourteen properties now remain in that portfolio and these
will be progressively sold provided the market conditions are right.

Operating profits for the period amounted to £1,250,000 compared with
£752,000 for the six months to 30 June 1999.   Profit on ordinary activities
for the period, after accounting for the profit on sale of investment
properties and interest, amounted to £1,210,000 (1999 - £842,000).   After
deducting tax and profit attributable to the minority shareholders in Crannon
Limited, which owns Pall Mall House and our other Manchester Northern Quarter
properties, the profit attributable to shareholders in the Company was
£615,000 (1999 - £597,000).

Dividends

An interim dividend for the period of 0.15p per share will be paid to
shareholders on the register at 6 October 2000, representing a 20% increase
on the interim dividend paid in 1999.  It is anticipated that dividend
cheques will be dispatched on 27 October 2000.

Management changes

On 4 August 2000, Andrew de Candole left the Group to pursue his internet and
internet-related businesses and the Board thanks him for his contribution to
the Group over the years.  Malcolm Bacchus and Simon Dawkins, who have worked
with the Group for some time as consultants, have joined the Board as
Executive Directors.

The Future

Planning for the major sites at The Merchant Village, Glasgow, and River
Quay, Castleford, Manchester, where we have 50% interests, is progressing
according to timetable.   The planning application for the first phase of
River Quay has been submitted and detailed design for the second phase is
currently under consideration.  Acquisitions in the Merchant Village have
been completed and an application has been submitted for 360 apartments,
126,000 sq ft of retail and 110,000 sq ft of leisure and office space.   We
would expect to know the outcome of both applications before the end of the
year.

Both sites have attracted considerable interest from potential tenants,
construction partners and purchasers.

We continue to concentrate our expertise on urban regeneration sites where we
can provide a mix of residential, leisure and retail development and where
demand remains strong.   If the right opportunity arises we shall take
profits from trading but overall we are looking to build a sound reputation
for providing consistently good results over time.


Sir Christopher Leaver
Chairman

21 September 2000




PATHFINDER PROPERTIES PLC

PROFIT AND LOSS ACCOUNT
for the six months ended 30 June 2000



                          Notes   6 months to  6 months to           Year to
                                 30 June 2000 30 June 1999  31 December 1999
                                        £'000        £'000             £'000
TURNOVER
   Group and share of
        joint ventures        3        8,500        8,635             11,544
   less share of joint
        ventures                      (3,996)            -                -
Group Turnover                         4,504        8,635             11,544
Cost of sales                         (3,564)      (7,639)            (9,920)
Gross profit                             940          996              1,624
Administrative expenses                 (209)        (244)              (444)
                                         731          752              1,180
Other operating income                   152             -               153
Share of profits in joint
    ventures                             367             -                 -
OPERATING PROFIT              3        1,250           752             1,333
Profit on sale of investment
     properties                            1          186              1,444
                                       1,251          938              2,777
Interest receivable                       55           84                236
Interest payable                         (96)        (180)              (284)
PROFIT ON ORDINARY ACTIVITIES
    BEFORE TAXATION                    1,210          842              2,729
Taxation:           Group               (264)        (245)              (783)
               Associates                (98)            -                 -
PROFIT ON ORDINARY ACTIVITIES
    AFTER TAXATION                       848          597              1,946
Minority interests                      (233)            -                 -
PROFIT ON ORDINARY ACTIVITIES
     ATTRIBUTABLE TO MEMBERS615          597         1,946
Ordinary dividends            4         (106)         (88)              (352)
Retained profit for the period7          509          509              1,594

Earnings per share                     0.87p        0.85p              2.77p


The operating profit arises from the Group's continuing operations.
A note of profits and losses on a historical cost basis is given in note 5.
A statement of total recognised gains and losses for the year is given in
note 9.

PATHFINDER PROPERTIES PLC


BALANCE SHEET
30 June 2000

                                      Notes    30 June  30 June 31 December
                                                  2000     1999        1999
                                                 £'000    £'000       £'000
FIXED ASSETS
   Investment properties                        2,800     5,631       3,094
   Investment in joint ventures
            Share of gross assets               12,708    1,395      10,567
            Share of gross liabilities          (4,477)  (1,009)     (2,836)
                                          6      8,231      386       7,731
                                                11,031    6,017      10,825
                                                11,031    6,017      10,825
CURRENT ASSETS
   Work-in-progress                               573    8,049        2,779
   Debtors                                      5,218    1,912        1,145
   Cash at bank                                 2,730    7,047        3,563
                                                8,521   17,008        7,487
CREDITORS: Amounts falling due within one year (3,172) (10,286)      (2,237)
NET CURRENT ASSETS                              5,349    6,722        5,250
TOTAL ASSETS LESS CURRENT LIABILITIES          16,380   12,739       16,075
CREDITORS: Amounts falling due after
           more than one year
   Bank and other loans                        (1,000)    (300)      (1,400)
PROVISIONS: Deferred taxation                    (315)    (214)        (380)
                                               15,065   12,225       14,295
MINORITY INTERESTS                               (261)       -            -
                                               14,804   12,225       14,295
CAPITAL AND RESERVES
Called up share capital                         7,034    7,034        7,034
Share premium account                           1,617    1,617        1,617
Capital reserve                                 2,494    2,494        2,494
Revaluation reserve                               785        -          985
Profit and loss account                   7     2,874    1,080        2,165
                                               14,804   12,225       14,295
Net assets per share attributable
       to ordinary shareholders                21.05p   17.38p       20.32p



CASHFLOW STATEMENT
for the six months ended 30 June 2000

                          Notes   6 months to   6 months to          Year to
                                 30 June 2000  30 June 1999 31 December 1999
                                        £'000         £'000            £'000
NET CASH INFLOW
  FROM OPERATING ACTIVITIES  10           298        5,909           9,869

RETURNS ON INVESTMENTS AND SERVICING
   OF FINANCE
Interest received                         82            84             210
Interest paid                            (60)         (168)           (421)
Net cash outflow from returns on 
  investments and servicing of finance    22           (84)           (211)

TAXATION
Corporation tax paid                    (455)             -           (673)

CAPITAL EXPENDITURE AND FINANCIAL
   INVESTMENT
Receipts from sales of investment
  properties                             330         1,469           6,285
Receipt from sale of shares              107             -               -
Purchase of investment properties       (200)         (247)           (250)
Net cash inflow from capital expenditure
  and financial investment               237         1,222           6,035

ACQUISITIONS AND DISPOSALS
Investments in joint ventures           (271)         (256)         (7,600)

EQUITY DIVIDENDS
Dividends paid                          (264)         (215)           (303)

FINANCING
Debt due within a year:
   Bank loan drawn down                     -          231             254
   Bank loans repaid                        -       (1,452)         (5,300)
Debt due in more than one year:
   Loan drawn down                          -             -          2,750
   Loans repaid                         (400)             -         (2,950)
                                        (400)       (1,221)         (5,246)

(DECREASE)/INCREASE IN CASH             (833)        5,355           1,871
PATHFINDER PROPERTIES PLC


NOTES

1   BASIS
The figures shown for the six months to 30 June 2000 and 30 June 1999 are
unaudited and do not constitute statutory financial statements within the
meaning of the Companies Act 1985.   The financial statements for the year
ended 31 December 1999 have been reported on by the Company's auditors and
delivered to the Registrar of Companies.   The report of the auditors was
unqualified and did not contain a statement under s.237(2) or (3) of the
Companies Act 1985.

2   ACCOUNTING POLICIES
The accounting policies adopted are consistent with those applied in previous
periods.   Investment properties are stated at valuation on 31 December 1999
with the addition of costs of enhancement works since that date where
appropriate.  Investment properties have not been revalued at 30 June 2000.

3 SEGMENTAL ANALYSIS
                                 6 months to    6 months to         Year to
                                 30 June 2000  30 June 199931 December 1999
                                        £'000         £'000           £'000
Turnover:
   Development                         8,453        8,453            11,356
   Investment                             47          182               188
                                       8,500        8,635            11,544

Operating profit
   Development                         1,477          973            1,802
   Investment                            (58)          (4)             (96)
                                       1,419          969            1,706
   Common costs                         (169)        (217)            (373)
                                       1,250          752            1,333


4  DIVIDENDS ON ORDINARY SHARES
                                 6 months to   6 months to           Year to
                                 30 June 2000 30 June 1999  31 December 1999
                                        £'000        £'000             £'000

   Interim dividend - 0.15p
     (1999 - 0.125p) per share           106           88               88
   Final dividend 1999
     - 0.375p per share                    -            -              264
                                         106           88              352


5  NOTE OF HISTORICAL COST PROFITS AND LOSSES
                                 6 months to   6 months to          Year to
                                 30 June 2000 30 June 1999 31 December 1999
                                        £'000        £'000            £'000

Profit on ordinary activities
  before taxation                      1,210          842             2,729
Realisation of property revaluation
  gains of previous periods              292            -                -

                                       1,502          842             2,729

PATHFINDER PROPERTIES PLC


6  INVESTMENT IN ASSOCIATES AND JOINT VENTURES

The Investment in Associates and Joint Ventures comprises the Group's 50%
interests in Excelmode Limited, Holdmark Limited and Pathfinder (Scotland)
Ltd which are developing properties at 25 Church Street, Manchester,  River
Quay, Manchester and Merchant Village, Glasgow respectively.   A summary of
the Group's share of their assets and liabilities at 30 June 2000 is as
follows:

                                 30 June 2000 30 June 1999  31 December 1999
                                        £'000        £'000             £'000
Work-in-progress                       8,172        1,357             10,030
Debtors                                4,216           38                235
Cash                                     320            -                302
                                      12,708        1,395             10,567
Creditors: amounts falling due
  within one year:
Bank loan                             (4,000)        (909)            (1,459)
Other loans                             (100)        (100)              (100)
Other creditors                         (377)           -             (1,277)
                                      (4,477)      (1,009)            (2,836)

Group's share of net assets            8,231          386              7,731


7  PROFIT AND LOSS ACCOUNT
                                 6 months to   6 months to           Year to
                                 30 June 2000 30 June 1999  31 December 1999
                                        £'000        £'000             £'000

Brought forward                        2,165          571               571
Transfer from revaluation reserve        200            -                 -
Profit in period                         509          509             1,594
Carried forward at end of period       2,874        1,080             2,165


8  SHAREHOLDERS' FUNDS
                                 6 months to   6 months to          Year to
                                 30 June 2000 30 June 1999 31 December 1999
                                        £'000        £'000            £'000

Brought forward                       14,295       11,716            11,716
Profit in period                         509          509             1,594
Increase in revaluation reserve,
   net of deferred tax                     -            -               985
Carried forward at end of period      14,804       12,225            14,295


9  STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
                                 6 months to   6 months to           Year to
                                 30 June 2000 30 June 1999  31 December 1999
                                            £            £                 £

Profit for the period attributable
   to members                            615          597              1,946
Surplus on revaluation of
    investment properties                  -            -                985
Total recognised gains and
    losses relating to the
    period                               615          597              2,931

PATHFINDER PROPERTIES PLC


10  RECONCILATION OF OPERATING PROFIT TO OPERATING CASH FLOWS
                                6 months to    6 months to           Year to
                                30 June 2000  30 June 1999  31 December 1999
                                           £             £                 £

Operating profit                      1,250           752              1,333
Depreciation                             29            40                 73
Share of profits in joint ventures     (367)            -                  -
Other income                            (79)            -                  -
Decrease/(Increase) in work
   -in-progress                       2,206        (5,763)              (447)
(Increase)/decrease in debtors       (3,967)        7,961              8,981
Increase/(decrease) in creditors      1,226         2,919                (71)
                                        298         5,909              9,869


A copy of this statement is being sent to all shareholders and further copies
may be obtained from the company by writing to Pathfinder Properties PLC,
Capital House, Michael Road, London  SW6 2YH or from the FT Free Annual
Reports Service, details of which can be found in the Financial Times.


For further information, contact:

Malcolm Bacchus, Director                                  Tel: [phone]
9669

Issued by:
Andrew Marshall, Marshall Robinson Roe                Tel: [phone]

22 September 2000