Final Results

Pathfinder Properties PLC
29 March 2001



PART 1
                          Pathfinder Properties PLC



29th March 2001

Preliminary Announcement of Results for the year ended 31 December 2000



Highlights





-       Operating profits increase to £1,440,000 (1999: £1,333,000)
        up 8.0%

-       Final dividend of 0.5p per share making 0.65p in total (1999: 0.5p)
        up 30%

-       Net assets increase to £14.63m (1999: £14.30m)               
        up 2.3%

-       Church Street, Manchester, development completed

-       Pall Mall House, Manchester, sold for £3.8 million after planning

-       Planning consent obtained for the £100 million joint venture scheme at
        The Merchant Village, Glasgow in March 2001







CHAIRMAN'S STATEMENT

Strategic Review



The last twelve months have seen major changes for the better in our business
environment. With revised planning policy guidelines issued in March 2000, a
recent Urban White Paper and the incentives in the last Budget, it is clear
that urban regeneration is once more to the forefront of public thinking. With
national concern over urban sprawl, the Government has set a target for 60% of
new housing to be on previously used, 'brown-field', sites and is actively
encouraging retailing to return to city centres. In this new era we believe
that Pathfinder Properties and its affiliated companies can excel.

We have recently announced that our £100 million joint venture development at
The Merchant Village, Glasgow, received planning permission.  The interest
that this, and our current planning application at River Quay, Manchester, has
received shows that we have successfully transferred our skills and concepts
into large mixed use schemes incorporating the residential, retail, office and
leisure elements which will create the urban village of the future.

Demographics, changes in life style and transport issues all suggest that
demand for our product will continue to grow. We intend to play our part in
bringing life back to Britain's cities in a manner, which is ultimately
rewarding for our shareholders, our staff and our customers alike.

Year 2000 Review

In 2000 we concentrated on establishing the foundations for our future growth.
The landmark development at Wimbledon Central, which launched the company onto
the Alternative Investment Market, provided significant profits in 1998 and
1999 and is now completed and fully sold. The proceeds have been mainly
reinvested in two new large-scale developments in Glasgow and Manchester
which, whilst not contributing significantly to profits in the year, should
start to provide development returns to shareholders during 2001.

Although we could not have hoped to emulate the highly successful results for
1999 (which included one-off profits from the sale of the residential
investment portfolio totalling £1.4 million) we are delighted that sales of
our developments in Manchester during the year exceeded expectations. These
sales have enabled us to report our highest ever operating profit and second
highest profit before tax.

Significant progress has also been made during the period in regard to site
assembly, design and planning on our new developments and this is discussed in
more detail in the Property Review. In particular, the achievement of planning
on Merchant Village is a major milestone in the Group's development; it is our
largest ever project, will bring new life to Glasgow's Merchant City and
provide a touchstone for our future growth.



Management and infrastructure

Shareholders will be aware that the Group's previous managing director
resigned during the course of the year to concentrate on his other business
interests. I am delighted that we were able to secure the services of Malcolm
Bacchus and Simon Dawkins as executive directors to enhance and progress the
Group's development strategy. They bring with them both a wealth of experience
from past property activities and a detailed knowledge of our business from
their previous close involvement as advisers to the Pathfinder Group.

Malcolm and Simon share the vision of the non-executive directors. Under their
leadership and direction we shall move forward the implementation of our
strategy as a specialist in urban regeneration.

We have also forged closer formal links between Pathfinder Properties and the
other Pathfinder companies to enable the Group to undertake a wider range of
developments through joint ventures and to streamline operational
administration. This new infrastructure has allowed us to cut costs and employ
directly, across all the companies, staff with an extensive range of skills,
committed to making Pathfinder a leader in its field.

Market Perception

Over the last year there may have been a perception that property companies
will find it more difficult to provide attractive investor returns in a low
inflation environment. By concentrating on urban regeneration, the Pathfinder
Group's development activities should however offer scope for above average
growth and we remain committed to delivering shareholder value. We hope and
believe that, over time, our performance and prospects will be more fully
reflected in our share price and that our shareholders' confidence in the
Group will be justified.



Sir Christopher Leaver

Chairman




OPERATING AND FINANCIAL REVIEW

Operations

The Group has concentrated during the year on:

-       Identifying and acquiring new trading, investment and development
        opportunities both directly and in joint venture; and

-       Adding value to existing development sites through site assembly,
        design and planning.

We have acquired additional properties at our Merchant Village, Glasgow site
and submitted planning applications on that site and on our four new sites in
Manchester: Pall Mall House, Back Turner Street, Church Street Phase 2 and
River Quay. Both Pall Mall House and the second phase of Church Street
received planning consent in the period and, since the year end, we have also
achieved planning consent on our Merchant Village development.

We continue to dispose of the balance of the residential investment portfolio
acquired with Pathfinder Repossessions II Limited in 1998. We acquired one
extra unit during the year and sold eleven, leaving a further eight units to
sell. Further details of the property portfolio are given in the Property
Review.

Results

Profits for the year were generated largely from the sale of Pall Mall House
in Manchester during the first half of the year and from sales at our joint
venture development at 25 Church Street, Manchester. Sales of final interests
in Perth and one of the smaller properties in our  Northern Quarter Manchester
portfolio brought total turnover for the year to £8,709,000 compared to £
11,544,000 for 1999.

Profits from trading, development and sales of property, including our share
of our joint ventures, amounted to £1,992,000 (1999 £1,802,000). This
recognises in full the profits on Pall Mall House, which was sold as a single
unit. Profits in respect of 25 Church Street, Manchester, where 62 of the 78
apartments were sold during the year, are accounted for only on apartments
sold, having taken into account the proportion of building works carried out
during the year. No account has been taken of the increase in value of the
commercial element of the property which was let during the year. Full
provision has been made for all anticipated future costs.

After deducting the net running costs of our remaining investment properties
and operating costs common to both development and investment activities, net
operating profits for the year were £1,440,000 compared with £1,333,000 for
the previous twelve months.

Net receipts from sales of investment properties totalled £1,680,000,
generating considerable cash for reinvestment in development projects. As
these properties were previously held as investments and fully revalued at 31
December 1999, the resultant profit over original cost was principally
reflected in the Group's reserves in 1999 rather than being taken to profit in
either year. Had the properties been held at historic cost, a profit on sale
of £714,000 would have been recognised in this year's financial statements,
however, on carrying values, a small loss arose as a result of net selling
costs.

Overheads for the year, deducted in arriving at net operating profit, amounted
to £518,000 compared to £444,000 in 1999. The apparent increase over the
previous year arises mainly from the reorganisation of the Group which
involved bringing management and administration in-house. Certain
administration costs were previously paid by Blenheim Asset Management Limited
out of the fees that company received for the acquisition and development of
properties. Those fees were capitalised into work-in-progress or fixed assets
and not treated as an overhead cost. That arrangement terminated during the
year and the equivalent direct administration costs are now expensed.

Profit on ordinary activities before taxation for the period was £1,366,000
(1999: £2,729,000) and, after tax, Group profits amounted to £973,000 (1999: £
1,946,0000). Of this, £221,000 (1999: £nil) is attributable to the minority
shareholders in Crannon Limited, which owned Pall Mall House and the Northern
Quarter properties, leaving profits of £752,000 attributable to ordinary
shareholders in the Group.

Dividend

An interim dividend of 0.15p per share was paid to shareholders on 27 October
2000. It is intended, subject to shareholder approval, to pay a final dividend
of 0.50p per share on  24 May 2001 to shareholders on the register at  20
April 2001. This would make a total dividend for the year of 0.65p per share -
an increase of 30% on the 1999 dividend.

Net Assets

Net assets have risen to 20.79p per share as a result of profits retained for
the year. As the Group is unable to revalue its work-in- progress, the value
added through site assembly and planning during the year has not been
reflected in the financial statements.

As discussed, our property at 38 High Street, Manchester (the second phase of
the Church Street development) received planning permission during the year
and, since the year-end, planning permission has also been received on our
Merchant Village site. Based on valuations of our properties which take into
account those recent events, the Board believes that were, these valuations
able to be incorporated into the financial statements net of attributable tax,
the net assets of the Group would be at least 23p per share.

Borrowings and Cash Flow

The Group is relatively ungeared at present reflecting the current stage of
our properties in their development cycle. Year end borrowings were £500,000
compared with £1,400,000 at 31 December 1999. Including the Group's share of
joint venture borrowings, the figures are £1,750,000 and £2,859,000
respectively. Cash balances have risen from £3,563,000 to £6,142,000 although
this increase is in part a result of monies received which are due to be paid
to joint venture partners after the year end. Whilst gearing will rise as our
major developments are progressed, current levels of borrowing will provide us
scope to expand our acquisitions programme during the course of the current
year.

Events since the Year End

The receipt of planning permission on the Merchant Village has been referred
to above.

On 26 February 2001, the Group announced the acquisition, in joint venture
with the Pathfinder Recovery Companies, of a 51,000 sq ft retail site at Loch
Lomond in Scotland. This property, near Alexandria town centre, is an
impressive building previously the home of the Argyll Motor Works. We intend
to refurbish and redevelop the site to provide a major factory outlet shopping
experience for tourists and residents.

The Future

The Group is now wholly repositioned as a strong participant in the urban
regeneration market outside London. We have a good portfolio of projects and,
with the team we now have in place, we are in a position to grow as fast as
resources prudently allow. We are actively seeking new joint venture partners
and sources of finance to capitalise on our expertise. Provided the economy
remains relatively stable, we hope to report significant further progress on
all fronts during the course of the next year.



Malcolm Bacchus

Simon Dawkins

Executive Directors



Further Information:

Andrew Marshall

Marshall Robinson Roe

Tel: [phone]



PROPERTY REVIEW

DEVELOPMENT PORTFOLIO

Merchant Village, Glasgow

Circa 50% owned through Pathfinder (Scotland) Limited



The Merchant Village comprises over 770,000 sq ft of development space in the
centre of Glasgow's historic Merchant City area.

The Conran Design Partnership have been commissioned as architects to create a
£100 million mixed-use scheme comprising a fashion and life style shopping
centre, health and fitness club, high tech office space and modern residential
apartments. Planning consent was received in March 2001 for 343 apartments,
126,000 sq ft of retail and 118,000 sq ft of leisure and office space.

The scheme has been well received by potential tenants, construction partners
and purchasers and construction is planned to commence before the end of 2001.



25 Church Street, Manchester

50% owned through Excelmode Limited

Phase 1

The first phase development has now been completed with 62 out of 78
apartments sold. The marketing of the remaining apartments and freehold
investment has been continuing and, at the date of this report, a further 12
apartments had either been sold or were under offer. It is anticipated that
all sales will be completed by Summer 2001, with total property sales having
exceeded £13 million.

Phase 2 - 38 High Street, Manchester

The application for planning approval for the second phase of the project was
granted in January 2001. It is expected that construction will be commenced on
site during Summer 2001. The development will accommodate an eight storey
residential site, comprising 49 units over a commercial retail ground floor
area.



River Quay, Castlefield, Manchester

50% owned through Pathfinder (River Quay) Limited



The site comprises 3.28 acres within 15 minutes walk of the city centre,
adjacent to the River Medlock. It is presently leased as a surface car park. A
Masterplan has been prepared for the whole site providing for development in
five separate residential phases. Each phase ranges from 62,500 sq ft to
155,000 sq ft with a total net saleable space of 500,000 sq ft representing
approximately 800 units.

In addition to the residential space, the Masterplan provides for A3 (bar and
restaurant) use, a health club and retail units focused around the public
piazza and riverside walkway.

Negotiations have commenced with construction partners and it is anticipated
that works on site will commence during Summer 2001.



Northern Quarter, Manchester City Centre

60% owned through Crannon Limited



During the year, there was considerable concentration on adding value to the
existing sites in our Northern Quarter portfolio.

Following the successful applications to obtain planning for an 18 storey
residential tower at Pall Mall House, Manchester, and a smaller 8 apartment
building in John Street, Manchester, these sites were sold during the year.

A planning application has been submitted to construct a new block of 21
apartments with 2,700 sq ft comprising retail space on the ground floor at
Back Turner Street, the remaining site within the Northern Quarter portfolio.



Loch Lomond Factory Outlets, Alexandria

Acquired since the year end, 50% owned through Pathfinder (Loch Lomond)
Limited



This 51,000 sq ft retail site, previously the Argyll Motor Works, was acquired
in February 2001. The intention is to refurbish and partly redevelop the site
as an enhanced factory outlet centre. Located close to Alexandria town centre
and on a major Scottish tourist route, the development is expected to provide
a major shopping attraction for residents and visitors alike. The Edinburgh
based Guinea Group, who operate existing factory outlets in the UK, will be
responsible for project and centre management.

Investment Portfolio

During the year, eleven units were sold, leaving eight apartments remaining in
seven locations in Central and Inner London. The remaining units will be sold
as the opportunities arise.


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