Interim Results

Pathfinder Properties PLC
29 September 2006





                             FOR IMMEDIATE RELEASE



                           Pathfinder Properties PLC


                                    Results

                     for the six months ended 30 June 2006



The Board of Pathfinder announces the results of the Company for the six months
ended 30 June 2006, which are set out below. The unaudited interim financial
statements for the six months ended 30 June 2006 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

For the six months ended 30 June 2006


Dear Shareholder,


I am pleased to confirm that at the Annual General Meeting held on the 8th
September 2006 all of the resolutions were approved.


Now that the sale of the River Quay site in Manchester has completed, we are in
a good financial position to push the company forward and to take advantage of
opportunities that we find during the next twelve months.


Subsequent to the period under review, your company has recently purchased an
exciting development site in East London which is a former car park in the
centre of Ilford with planning permission for 83 apartments for a cash
consideration of £6 million. We are at the early stages, but we intend to start
carrying out the works next year ; the development will take around 24 months to
complete. This is a good development scheme for the company and we are working
closely with the professional team to minimise the risks and maximise the return
to the company.


I would like to thank the Board and the staff for their continued hard work and
professionalism throughout the year.





Edward Azouz

Chairman


29 September 2006


CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months ended 30 June 2006

                                           Notes  6 months   6 months       Year
                                                        to         to      ended
                                                   30 June    30 June     31 Dec
                                                      2006       2005       2005
                                                     £'000      £'000      £'000
TURNOVER
         Group and share of joint ventures   3           -          -        753
         less share of joint ventures                    -          -        (8)
Group turnover                                           -          -        745

Cost of sales                                            -          -      (553)
Gross profit                                             -          -        192
Administrative expenses                              (229)      (253)      (515)
                                                     (229)      (253)      (323)

Other operating (loss)/income                3       (350)         47      (267)
OPERATING LOSS BEFORE SHARE
OF JOINT VENTURES                                    (579)      (206)      (590)

Share of operating profits in joint ventures            -          -          8
OPERATING LOSS                               3       (579)      (206)      (582)

Profit on sale of investments and investment             -          -          8
properties
                                                     (579)      (206)      (574)
Interest receivable                                      5          5          9
Interest payable                                     (439)      (397)      (856)
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION        (1,013)      (598)    (1,421)

Taxation Group                                           -          -        190
LOSS ON ORDINARY ACTIVITIES

AFTER TAXATION                                     (1,013)      (598)    (1,231)
Equity minority interests                               12          2       (83)

LOSS ON ORDINARY ACTIVITIES
ATTRIBUTABLE TO MEMBERS                            (1,001)      (596)    (1,314)
Ordinary dividends                                       -          -          -
Loss for the period transferred to           6     (1,001)      (596)    (1,314)
reserves

Loss per share                               10    (1.25p)    (0.74p)    (1.64p)


The operating loss arises from the Group's continuing operations.

A statement of total recognised gains and losses for the period is given in note
8.



CONSOLIDATED BALANCE SHEET
30 June 2006

                                          Notes   30 June    30 June    31 Dec
                                                     2006       2005      2005
                                                    £'000      £'000     £'000

FIXED ASSETS
        Intangible fixed assets                       154        154       154
        Tangible assets                                 9          6        11
        Investment in joint ventures
                 Share of gross assets                210        201       210
                 Share of gross                     (137)      (135)     (137)
                 liabilities

                                                       73         66        73
        Other investments                             152        152       152
                                                      388        378       390

CURRENT ASSETS
        Work-in-progress                           17,255     16,431    16,257
        Debtors                             4       1,637        720     1,912
        Cash at bank                                  700        476       594
                                                   19,592     17,627    18,763
CREDITORS: amounts falling due within       5     (5,772)    (3,423)   (4,610)
one year
NET CURRENT ASSETS                                 13,820     14,204    14,153
TOTAL ASSETS LESS CURRENT LIABILITIES              14,208     14,582    14,543
CREDITORS: amounts falling due after more than
one year
        Bank and other                            (6,037)    (6,020)   (6,037)
        loans

                                                    8,171      8,562     8,506
MINORITY INTERESTS                                  (344)      (271)     (356)
NET ASSETS                                          7,827      8,291     8,150

CAPITAL AND RESERVES
Called up share capital                             7,997      7,997     7,997
Share premium account                               1,970      1,970     1,970
Own share
capital
reacquired                                              -    (1,255)     (678)
Capital reserve                                       153        153       153
Merger Reserve                                      2,494      2,494     2,494
Profit and loss account                     6     (4,787)    (3,068)   (3,786)
EQUITY SHAREHOLDERS' FUNDS                  7       7,827      8,291     8,150

Net assets per share attributable to ordinary       9.79p     10.37p    10.20p
shareholders



CASH FLOW STATEMENT
for the six months ended 30 June 2006
                                        Notes    6 months   6 months      Year
                                                       to         to     ended
                                                  30 June    30 June    31 Dec
                                                     2006       2005      2005
                                                    £'000      £'000     £'000
NET CASH INFLOW/ (OUTFLOW)
        FROM OPERATING ACTIVITIES         9         (641)        160     (791)

RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE
Interest                                                5          5         9
received
Interest paid                                       (439)      (385)     (854)
Net cash outflow from returns on
investments
                                                    (434)      (380)     (845)
and servicing of finance

TAXATION
Corporation tax paid                                    -          -      (64)

CAPITAL EXPENDITURE AND FINANCIAL
INVESTMENT
Receipts from sales of investment                       2          -         9
properties
Receipts from joint ventures                            -       (11)       (1)
Acquisition of other tangible fixed                     -          -       (6)
assets
Net cash outflow from capital expenditure and
financial investment                                    2       (11)         2

ACQUISITIONS AND DISPOSALS
Disposal of shares in parent                          258          -       218
undertaking

Net cash inflow from acquisitions and disposals       258          -       218

EQUITY DIVIDENDS PAID
Minority dividends paid                                 -          -         -

MANAGEMENT OF LIQUID RESOURCES
Decrease in treasury deposits                           -         86        71

FINANCING
Debt due within a year:
        Loans drawn down                              921          -     1,501
        Loans repaid                                    -       (51)     (224)
Debt due in more than one year:
        Loans drawn down                                -          -         -
        Loans repaid                                    -       (37)         -
                                                      921       (88)     1,277
INCREASE/(DECREASE) IN CASH                           106      (233)     (132)


NOTES

For the six months ended 30 June 2006


1         BASIS


The figures shown for the six months ended 30 June 2006 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 2005 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 PERIOD

The Group's turnover arises principally from property development activities.

Included in other operating (loss)/income is a loss of £420,000 (31 December
2005 - loss £357,000) relating to the sale of own shares.


4         DEBTORS
                                                 30 June       30 June         31 Dec
                                                    2006          2005           2005
                                                   £'000         £'000          £'000

Due within                                         1,093           363          1,368
one year
Due after one year: deferred tax                     544           357            544
                                                   1,637           720          1,912


5 CREDITORS DUE WITHIN ONE YEAR
                                                30 June        30 June          31 Dec
                                                   2006           2005            2005
                                                  £'000          £'000           £'000

Bank loans and                                    3,181          1,800           2,765
overdrafts
Other development loans                           1,065            178             560
Other creditors and                               1,526          1,445           1,285
accruals
                                                  5,772          3,423           4,610

6 PROFIT AND LOSS ACCOUNT
                                            6 months     6 months to         Year ended
                                                  to
                                             30 June    30 June 2005        31 Dec 2005
                                                2006
                                               £'000           £'000              £'000

Brought forward                              (3,786)         (2,472)            (2,472)
Retained loss for the period                 (1,001)           (596)            (1,314)
Carried forward at end of period             (4,787)         (3,068)            (3,786)



NOTES - continued
For the six months ended 30 June 2006

7 SHAREHOLDERS' FUNDS
                                            6 months     6 months to         Year ended
                                                  to
                                             30 June    30 June 2005        31 Dec 2005
                                                2006
                                               £'000           £'000              £'000
Loss for the period                          (1,001)           (596)            (1,314)
Reduction of investments in own shares           678               -                577
                                               (323)           (596)              (737)
Brought forward                                8,150           8,887              8,887
Carried forward at end of period               7,827           8,291              8,150




8 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


                                            6 months     6 months to         Year ended
                                                  to
                                             30 June    30 June 2005        31 Dec 2005
                                                2006
                                               £'000           £'000              £'000

Loss for the period attributable to          (1,001)           (596)            (1,314)
members
Reduction of investment in own shares           678               -                577
Total recognised gains and losses              (323)           (596)              (737)
relating to the period



9 RECONCILATION OF OPERATING LOSS TO OPERATING CASH FLOWS


                                            6 months     6 months to         Year ended
                                                  to
                                             30 June    30 June 2005        31 Dec 2005
                                                2006
                                               £'000           £'000              £'000

Operating loss                                 (579)           (206)              (582)
Depreciation and amortisation of                   -               -                  3
goodwill
Loss on sale of investments                      420               -                357
Share of operating profits in joint                -               -                (7)
ventures
Increase in work-in-progress                   (998)           (124)                 50
  (Increase) / decrease                          275             (5)            (1,015)
             in debtors
Increase / (decrease) in creditors               241             495                403
                                               (641)             160              (791)



10 LOSS PER SHARE

The loss per ordinary share is based on the loss after taxation and minority
interests of £1,001,000 (31 December 2005: £1,314,000) and on 79,971,393 (31
December 2005: 79,971,393) ordinary shares being the weighted average number of
ordinary shares in issue during the period. There is no difference between
earnings and fully diluted earnings per share.






NOTES - continued
For the six months ended 30 June 2006

DIRECTORS AND COMPANY INFORMATION

Directors                                                  Company number
Gerry Lee                                                  2578942 (England and 
Wales)
Edward Azouz
Jeffrey Azouz                                              Registered office
John Guy Davies                                            1001 Finchley Road
                                                           London NW11 7HB
Secretary
B A Gemal






For further information, contact:
Edward Azouz, Chairman
Gerry Lee, Director                                        Telephone [phone] 
0110




















                      This information is provided by RNS
            The company news service from the London Stock Exchange