Final Results

Pathfinder Properties PLC
30 June 2006


FOR IMMEDIATE RELEASE                                              30 June 2006




                           Pathfinder Properties PLC

                                   Results
                      for the year ended 31 December 2005

The Board of Pathfinder announces the results of the Company for the year ended
31 December 2005, which are set out below. The audited financial statements for
the year ended 31 December 2005 are being sent to all shareholders. Copies may
be obtained from the Company by writing to Pathfinder Properties PLC, 1001
Finchley Road, London NW11 7HB.



CHAIRMAN'S STATEMENT


The year under review

Dear Shareholder

Since my last statement, a number of positive developments have occurred
especially after the year end.

It was the board's intention to develop our site at River Quay, Manchester. In
fact, the company had formally instructed all the professional advisors.
However, in March 2006, a development company offered to purchase the site.
After long negotiations, a sale price of £17,000,000 was agreed. At this figure,
the board felt, the site should be sold, as it is a significant profit on cost.

Our other main asset in Newark has also moved forward. I am pleased to announce
that we received planning consent for the remainder of the site to erect a new
block of 99 flats, together with outline for another 80 houses. There is a
Section 106 agreement, which requires us to renovate the Brewery.

During the last financial year we have continued to control the administrative
expenses. However, as we have not capitalized the interest payments to our
various sites, the company is showing losses. Another drain on our resources is
the interest payments, under our guarantee, on the Loch Lomond site. Fortunately
the receivers have now sold the site, so we are hopeful the matter can be
resolved. Once we have completed the sale of River Quay, it is the boards'
intention to reinvest the proceeds in order to bring the company into profit.

Once again I would like to thank board members and all staff for all their hard
work.


Yours faithfully



Edward Azouz
Chairman
30 June 2006




CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2005

                                             Year ended            Year ended
                                        31 December 2005     31 December 2004
                              Notes                 £000                 £000
Turnover
Group and share of joint                             
ventures                                             753                    -
- less: share of joint 
  ventures                                            (8)                   -
Group turnover                  3                    745                    -
Cost of sales
- Continuing operations                             (553)                 (44)
Gross profit/(loss)                                  192                  (44)
Administration expenses
- Continuing operations                             (515)                (785)
- Discontinued operations                              -                   (8)
                                                    (515)                (793)
                                                    (323)                (837)
Other operating income
- Continuing operations                               90                  660

Operating loss before share of
joint ventures
- Continuing operations                             (233)                (169)
- Discontinued operations
                                                       -                   (8)

                                                    (233)                (177)

Share of operating profit /                            
(loss) in joint ventures                               8                   (9)
Operating loss                  3                   (225)                (186)

Continuing operations:
Profit on sale of investment                          
properties                                             8                    -
(Loss)/profit on sale of fixed                      (357)                   5
asset investments

Discontinued operations:
Profit on sale of operations                           -                  631
(Loss)/profit on ordinary                           
activities before investment
income, interest and taxation                       (574)                 450

Interest receivable                                    9                   45
Interest payable                                    (856)                (671)
Loss on ordinary activities                       
before taxation                                   (1,421)                (176)
Taxation                                             190                    8
Loss on ordinary activities                      
after taxation                                    (1,231)                (168)
Equity minority interests                            (83)                  10
Loss for the year attributable                    
to members of the parent company                  (1,314)                (158)
Ordinary dividend               4                      -                    -

Loss for the year transferred   7                 
to reserves                                       (1,314)                (158)



CONSOLIDATED PROFIT AND LOSS ACCOUNT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2005
                                             Year ended          Year ended
                                       31 December 2005    31 December 2004
                                                  Pence               Pence

Loss per share                  11                (1.64)              (0.20)
Fully diluted loss per share    11                (1.64)              (0.20)



A statement of total recognised gains and losses for the year is given in note
9.


CONSOLIDATED BALANCE SHEET
AT 31 DECEMBER 2005

                          Notes         31 December 2005       31 December 2004
                                           £000     £000     £000        £000

Fixed assets
Intangible fixed assets                              
- Goodwill                                           154                  154
Tangible assets                                       11                    6
Investment in joint
ventures
- Share of gross assets                     210               201
- Share of gross                          
  liabilities                              (137)             (135)
- Goodwill                                    -                 -
                                                      73                   66

Other investments                                    152                  152

                                                     390                  378

Current assets
Work in progress                                  16,257               16,307
Debtors                                            1,912                  713
Cash at bank                5                        594                  797
                                                  18,763               17,817

Creditors: Amounts          
falling due                 
within one year             6                     (4,610)              (2,979)

Net current assets                                14,153               14,838

Total assets less                                 
current liabilities                               14,543               15,216
Creditors: Amounts
falling due
after more than one
year                                              (6,037)              (6,056)
                                                   8,506                9,160
Equity minority                                    
interests                                           (356)                (273)
Net assets                                         8,150                8,887

Capital and reserves
Called up share capital                            7,997                7,997
Share premium account                              1,970                1,970
Merger reserve                                     2,494                2,494
Capital reserve                                      153                  153
Own share capital                                   
reacquired                                          (678)              (1,255)
Profit and loss account     7                     (3,786)              (2,472)
Equity shareholders'        
funds                       8                      8,150                8,887


                                                   Pence                Pence
Net assets per share
attributable to
ordinary shareholders                              10.20                11.11


CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2005

                                   Notes             Year ended             Year ended
                                               31 December 2005       31 December 2004
                                                 £000      £000          £000     £000

Net cash outflow from            10                        (791)                (1,547)
operating activities

Returns on investments
and servicing of finance
Interest received                                   9                       43
Interest paid                                    (854)                    (374)

Net cash outflow from returns 
on investments and servicing of 
finance                                                    (845)                  (331)

Taxation
Taxation (paid)/received                                    (64)                    18

Capital expenditure and financial
investment
Receipts from sale of investment                    
properties                                          9                        -
Payments from joint ventures                       (1)                      (7)
Payments to acquire investments                     -                      (10)
Payments to acquire tangible fixed assets          (6)                       -

Net cash outflow from capital expenditure
and financial investment                                        2                   (17)

Acquisitions and disposals
Disposal of shares in parent                      
undertaking                                       218                        -
Net loans acquired with subsidiary                  
undertaking                                         -                   (2,879)
Net loans disposed of with                          
subsidiary undertaking                              -                    4,742
Net cash disposed with subsidiary                   
undertaking                                         -                      (24)

Net cash outflow from
acquisitions and disposals
                                                              218                  1,839
Equity dividends
Dividends and minority                                          
dividends paid                                                  -                   (36)

Management of liquid resources
Decrease in treasury deposit                                   
accounts                                                       71                    440

Financing
Debt due within one year:
- Short term loans drawn down                   1,501                    8,579
- Short terms loans repaid                       (224)                  (9,720)
Net cash inflow/(outflow) from                              
financing                                                   1,277                 (1,141)
Decrease in cash                                             (132)                  (775)



NOTES


1 BASIS

The figures shown for the year ended 31 December 2005 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 2004 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 are consistent with those used in the previous year.


3 RESULTS FOR THE YEAR
The Group's turnover and results for the year arise principally from
property development activities

and from activities carried out in UK.

4 DIVIDENDS
                                                 Year ended    Year ended
                                                31 Dec 2005   31 Dec 2004
                                                       £000          £000

Equity dividends:
Final dividend Nil p (2004 - Nil p) per                   
share                                                     -             -




5 ANALYSIS OF CASH AND CASH EQUIVALENTS

                                                    31 Dec           31 Dec
                                                      2005             2004
                                                     £'000            £'000

Short term bank deposits                                29              100
Other cash at bank                                     565              697

                                                       594              797


6 CREDITORS DUE WITHIN ONE YEAR

                                                    31 Dec           31 Dec
                                                      2005             2004
                                                     £'000            £'000

Bank loans and overdrafts                            2,765            1,851
Other loans                                            560              178
Trade creditors                                         85               14
Other creditors and accruals                         1,200              936

                                                     4,610            2,979

Other loans include loans from minority shareholders in certain subsidiary
undertakings to fund their proportionate share of developments. These loans are
repayable on or after the sale or refinancing of the relevant developments.

7 PROFIT AND LOSS ACCOUNT

                                              31 Dec 2005        31 Dec 2004
                                                    £'000              £'000

At 1 January                                       (2,472)            (2,314)
Loss for the year                                  (1,314)              (158)

At 31 December                                     (3,786)            (2,472)

8 SHAREHOLDERS' FUNDS

                                              31 Dec 2005        31 Dec 2004
                                                    £'000              £'000

Retained loss for the year                         (1,314)              (158)
Own shares disposed                                   577                413
                                                     (737)               255
At 1 January                                        8,887              8,632
At 31 December                                      8,150              8,887

9 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

                                               Year ended         Year ended
                                              31 Dec 2005        31 Dec 2004
                                                    £'000              £'000
Loss for the financial year                       
attributable to members                            (1,314)              (158)
Reduction of investment in own shares                 577                413
Total recognised gains and losses
since last financial statements                      (737)                255
                                                     

10 RECONCILATION OF OPERATING LOSS TO OPERATING CASH
FLOWS
                                               Year ended         Year ended
                                              31 Dec 2005        31 Dec 2004
                                                    £'000              £'000

Operating loss                                       (225)              (186)
Depreciation on fixed assets                            3                  5
Share of profit/loss in joint ventures                 (7)                 9
Decrease/(increase) in work-in-progress                50               (474)
Increase in debtors                                (1,015)            (2,037)
Increase in creditors                                 403              1,136

                                                     (791)            (1,547)


11 LOSS PER SHARE

The calculation of loss per share is based on a loss of £1,314,000 (2004 -
£158,000) and on 79,971,393 (2004 - 79,971,393) ordinary shares, being the
weighted average number of ordinary shares in issue during the year. There is no
difference between earnings and fully diluted earnings per share


For further information, contact:

Gerry Lee or Edward Azouz, Directors Tel: [phone]




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