Final Results

Safeland PLC
17 June 2004


SAFELAND PLC                                        
CHAIRMAN STATEMENT 
YEAR ENDED MARCH 31 2004

In my interim statement of December 1 2003 and in previous statements over the
last few years I have advised shareholders of the difficult trading conditions
that Safeland has encountered and which have continued to prevail during the
last six months.  As a result Safeland Plc is reporting a loss before taxation
for the year of £1,037,000  (2003: £3.522m profit) and a resultant loss per
share for the year of  5.37p (2003: earnings 10.33p).

The loss for the year predominantly relates to two main items.  In last year's
statement mention was made of an investment that Safeland made in an AIM listed
company called Tecc-IS whose main assets were made up of cash and investments in
technological stocks in Israel. Safeland has a significant interest in Tecc-IS
of 25% and it is therefore appropriate for the company to treat Tecc-IS as an
associate and take into its own accounts its relevant proportion of that group's
profit and loss account and balance sheet.

In the recently announced Tecc-IS preliminary figures to December 31 2003 it was
stated that an independent body had carried out a review of these investments
resulting in a write down by a figure of just in excess of £1m and Safeland's
share of this is taken into consideration in the current year's accounts,
together with its share of the reported losses of the group for that year.

In addition, Safeland's continued involvement in self storage with its three
centres in Italy, one in Rome and two in Milan have produced the expected losses
which occur at the outset.  For the current year under review this loss amounted
to £639,000.  I am pleased to report that satisfactory progress is being made in
all three centres.

During the year under review Safeland undertook 85 transactions compared with 92
in the previous year with an average lot size of £230,000 (2003: £530,000).
Turnover for the current year is £19,448,000 compared to £26,101,000 in the year
ended March 31 2003.

The company has purchased 1,240,668 of its own shares during this year which has
resulted in a net asset value per share as at the year end of 94p compared to
91p in March 2003.

Due to the loss that the company has incurred during the year it is not going to
be paying a dividend at the year end.  Gearing stands at 76% (2003: 34%).

At the year end the value of our stock of properties is £13.4m (2003: £6.0m)
which the board believes offers potential for future profitable sales and I am
pleased to report that the first few months of the new financial year have seen
some vibrant trading.  It is, however, impossible to accurately predict whether
this will continue for the coming months.

I mentioned in my interim statement that Steven Lipman had left the organisation
and I reiterate my thanks to him for his contribution over the years and wish
him luck for the future.

I can advise that in the event that favourable conditions do present themselves
we are in a very good position to take advantage of them.


CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year ended 31 March 2004

                                                                         Note          2004         2003
                                                                                      £'000        £'000
                                                                                  Unaudited      Audited
Turnover
Group and share of joint venture                                                     20,764       30,521
Less: share of joint venture                                                         (1,316)      (4,420)

Group turnover (including acquisition of £6,689,000)                     2           19,448       26,101

Cost of sales                                                                       (16,893)     (22,650)

Gross profit                                                                          2,555        3,451

Sales and distribution expenses                                                        (546)        (341)

Administrative expenses                                                              (3,821)      (3,411)

Other operating income                                                                  209          501

Group operating (loss)/profit (including acquisition operating profit of             (1,603)         200
£332,000)

Share of operating profit of joint ventures                              3              771        2,564
Share of operating loss of associate                                                    (98)           -

Total operating (loss)/profit                                                          (930)       2,764

Profit on disposal of fixed assets - investment properties                              171          302
Profit on disposal of investments                                                       109           72
Profit on disposal of subsidiaries and investment in joint venture       4              255          550

(Loss)/profit on ordinary activities before interest and taxation                      (395)       3,688

Interest receivable and similar income                                   5              304          717
Share of amounts written off investments of associate                                  (261)           -
Interest payable and similar charges                                     6             (685)        (883)

(Loss)/profit on ordinary activities before taxation                                 (1,037)       3,522

Tax charge on (loss)/profit on ordinary activities                                      (77)      (1,106)

(Loss)/profit on ordinary activities after taxation                                  (1,114)       2,416

Equity dividends                                                         7                -            -

Retained (loss)/profit for the financial year                                        (1,114)       2,416

Basic and diluted (loss)/earnings per share                              8            (5.37p)      10.33p



CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Year ended 31 March 2004
                                                                                    2004        2003
                                                                                   £'000       £'000
                                                                               Unaudited     Audited

(Loss)/profit for the financial year                                              (1,114)      2,416

Unrealised surplus on revaluation of investment                                    1,323          70
properties

Taxation on valuation surplus realised on sale of                                   (110)          -
investment properties

Currency translation differences on foreign currency                                  31           -
net investments

Total recognised gains and losses for the                                            130       2,486
year



Note of historical cost profits and losses 
                                                                                      2004       2003
                                                                                     £'000      £'000
                                                                                 Unaudited    Audited

(Loss)/profit on ordinary activities before taxation                                (1,037)      3,522

Realisation of property revaluation gains of earlier                                   412       1,463
years

Historical cost (loss)/profit on ordinary activities                                  (625)      4,985
before taxation
                                                                                                 

Historical cost (loss)/profit retained for the year after
taxation and dividends                                                                (812)      3,879



CONSOLIDATED BALANCE SHEET
31 March 2004

                                           Note                                  2004             2003
                                                                                £'000            £'000
                                                                            Unaudited          Audited
Fixed assets
Intangible assets - goodwill                                                        -                -
Tangible assets                                                                 5,748            4,993
Investment properties                                                           3,981            2,808
Investment in joint ventures
Share of gross assets                                                           4,649            4,564
Share of gross liabilities                                                       (627)          (1,144)
                                                                                4,022            3,420
Investment in associate                                                           661            1,000
Investments                                                                     3,926            4,281

                                                                               18,338           16,502

Current assets
Stocks                                                                         13,409            5,965
Debtors                                                                         2,649            3,826
Cash at bank and in hand                                                        2,212            4,783

                                                                               18,270           14,574
Creditors: amounts falling due
within one year                                                                (4,321)          (5,122)

Net current assets                                                             13,949            9,452

Total assets less current liabilities                                          32,287           25,954

Creditors: amounts falling due after more
than one year                                                                 (13,688)          (6,905)

                                                                               18,599           19,049

Capital and reserves
Called up equity share capital                                                    985            1,047
Share premium account                                                           5,304            5,304
Capital redemption reserve                                                        702              640
Investment property revaluation reserve                                         1,497              586
Profit and loss account                                                        10,111           11,472

Equity shareholders' funds                 14                                  18,599           19,049


CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 March 2004




                                                  Note                              2004         2003
                                                                                   £'000        £'000
                                                                               Unaudited      Audited

Net cash (outflow)/inflow from operating          10                              (8,452)       2,125
activities

Returns on investment and servicing of finance    11                                (318)        (111)

Taxation                                                                            (843)        (720)

Capital expenditure and financial investment      11                                (393)         826

Acquisitions and disposals                        11                                 631        4,608

Cash (outflow)/inflow before financing                                            (9,375)       6,728

Financing                                         11                               6,240       (5,347)

(Decrease)/increase in cash                                                       (3,135)       1,381



NOTES TO THE PRELIMINARY ANNOUNCEMENT
Year ended 31 March 2004
     
1.   BASIS OF PREPARATION

     The financial information set out in the announcement does not constitute 
     the company's statutory financial statements within the meaning of section 
     240 of the Companies Act 1985, for the years ended 31 March 2004 or 2003.  
     The statutory financial statements for the year ended 31 March 2004 will be
     finalised and signed on the basis of the financial information presented by 
     the directors in this preliminary announcement and will be delivered to the
     Registrar of Companies following the company's Annual General Meeting.  The
     results for the year ended 31 March 2003 have been extracted from the full
     statutory financial statements for that year which have been delivered to 
     the Registrar of Companies, on which the auditors have given an unqualified 
     report, and which do not contain a statement under sections 237(2) or (3) 
     of the Companies Act 1985.

     This announcement is prepared on the basis of the accounting policies as 
     stated in the previous year's financial statements.

     This preliminary announcement was approved by the Board of directors on 16 
     June 2004.

     Copies of this announcement are available from the company's registered 
     office at 94-96 Great North Road, London, N2 0NL.  The Annual Report and 
     Accounts will be sent to shareholders shortly.
     
2.   SEGMENTAL INFORMATION

                                                                                  2004         2003
                                                                                 £'000        £'000
                                                                             Unaudited      Audited
Group turnover
Property trading and refurbishment                                              19,116       25,898
Investment properties                                                              111          202
Self storage                                                                       221            1

                                                                                19,448       26,101

(Loss)/profit on ordinary activities before taxation
Property trading and refurbishment                                                (289)       3,169
Investment properties                                                              211          488
Self storage                                                                      (639)        (135)
Tecc-IS (associate)                                                               (320)           -

                                                                                (1,037)       3,522

Net assets
Property trading and refurbishment                                              11,753       12,835
Investment properties                                                            3,939        2,818
Self storage                                                                     2,246        2,396
Tecc-IS (associate)                                                                661        1,000

                                                                                18,599       19,049


     All turnover (by origin and destination), results before taxation and net 
     assets in the current and preceding financial year are derived from 
     activities carried out in the United Kingdom, except for the self storage 
     operation, which operates in Italy, Tecc-IS plc, the associated 
     undertaking, which operates mainly in Israel, and the results and net 
     assets of the Brackdale joint venture, which operates in South Africa and 
     contributed £60,000 (2003:  £13,000) to profit before taxation in the year 
     and £nil (2003:  £8,000) to net assets.  The Brackdale joint venture is 
     reported within property trading and refurbishment.
     
3.   SHARE OF OPERATING PROFIT OF JOINT VENTURE

     Share of operating profit of joint venture principally relates to our 
     residential property joint venture.
     
4.   SALE OF SUBSIDIARIES AND INVESTMENT IN JOINT VENTURE

     Three wholly-owned subsidiaries of Safeland plc were disposed of during the
     year:  Silverlake Properties Limited, Honeyglen Properties Limited and 
     Regalbond Limited.  None of the subsidiary undertakings disposed of 
     contributed any pre-tax results to the group in the year (2003: £nil).  The 
     profits recognised on disposal were £155,000, £139,000 and £nil 
     respectively.  Cash received in respect of these sales was £1,700,000.

     The group's share in Brackdale Investments (Proprietary) Limited, a 50% 
     joint venture, was disposed of during the year.  It contributed £60,000 to 
     the pre-tax results of the group in the year (2003: £13,000).  The profit 
     recognised on disposal was £56,000. Consideration in respect of this sale 
     was £106,000.

     Goodwill of £95,000 that was previously written off to reserves has been 
     written off in the profit and loss account in the year and a corresponding 
     adjustment has been made to reserves.
     
5.   INTEREST RECEIVABLE AND SIMILAR INCOME

                                                                              2004          2003
                                                                             £'000         £'000
                                                                         Unaudited       Audited

Income from fixed asset investments                                             94           141
Bank deposit interest                                                           64           170
Interest on late completion of contracts                                        29            61
Interest from joint venture                                                     41           324
Other interest receivable                                                       26             4

Group interest receivable                                                      254           700
Share of joint ventures' interest receivable                                    11            17
Share of associate's interest receivable                                        39             -

                                                                               304           717
     
6.   INTEREST PAYABLE AND SIMILAR CHARGES

                                                                              2004          2003
                                                                             £'000         £'000
                                                                         Unaudited       Audited

Interest on bank overdrafts and loans                                          569           808
Other interest payable                                                           3             1

Group interest payable                                                         572           809
Share of joint ventures' interest payable                                      113            74

                                                                               685           883
     
7.   EQUITY DIVIDENDS 
     
     No interim dividend has been paid or final dividend declared in either 
     year.
     
8.   (LOSS)/EARNINGS PER SHARE

     Basic and diluted loss per share of 5.37p (2003: earnings of 10.33p) are 
     based on the loss for the financial year of £1,114,000 (2003: profit of 
     £2,416,000) and on 20,754,333 ordinary shares (2003: 23,393,843 ordinary 
     shares) being the weighted average number of shares in issue throughout the 
     year.

     The calculation of diluted (loss)/earnings per share uses the same (loss)/
     earnings figure and weighted average number of shares as the basic 
     calculation, as the exercise value of all share options in issue is higher 
     than the share price at year end.
     
9.   ACQUISITION OF SUBSIDIARY UNDERTAKING AND INTEREST IN ASSOCIATED 
     UNDERTAKING

     On 9 April 2003, Safeland plc exercised an option to acquire 25% of the 
     share capital of Tecc-IS plc, an AIM listed company, for cash consideration 
     of £981,000.  Tecc-IS plc has been accounted for as an associated 
     undertaking.
 
     On 30 June 2003, Safeland plc purchased 100% of the ordinary share capital 
     of Protea Properties Limited for £100,000 cash consideration.
     
10.  RECONCILIATION OF OPERATING (LOSS)/PROFIT TO NET CASH (OUTFLOW)/INFLOW FROM 
     OPERATING ACTIVITIES

                                                                                       2004       2003
                                                                                      £'000      £'000
                                                                                  Unaudited    Audited

Operating (loss)/profit                                                             (1,603)        200
Amortisation of goodwill                                                               100           -
Depreciation                                                                           322         217
Amounts written off investment properties                                               59           -
Loss/(profit) on sale of tangible fixed assets                                          42         (13)
Increase in stocks                                                                  (8,850)       (648)
Decrease in debtors                                                                  1,451       2,949
Increase/(decrease) in creditors                                                        27        (580)

Net cash (outflow)/inflow from operating activities                                 (8,452)      2,125
     
11.  ANALYSIS OF CASH FLOWS

                                                                                      2004         2003
                                                                                     £'000        £'000
                                                                                 Unaudited      Audited
Returns on investment and servicing of finance
Interest received                                                                      160          558
Interest paid                                                                         (572)        (810)
Dividends received                                                                      94          141

                                                                                      (318)        (111)

Capital expenditure and financial investment
Purchase of tangible fixed assets                                                   (1,463)      (2,540)
Purchase of investment properties                                                     (742)      (1,091)
Disposal of tangible fixed assets                                                      344          439
Disposal of investment properties                                                    1,004        3,495
Disposal of investments                                                                464          523

                                                                                      (393)         826

Acquisitions and disposals
Purchase of subsidiary undertaking (net of £12,000 cash acquired with                  (88)           -
subsidiary)
Purchase of investment in associate                                                   (981)           -
Sale of subsidiary undertakings                                                      1,700        4,608

                                                                                       631        4,608

Financing
Purchase of own shares                                                                (675)      (2,156)
Loan repayments                                                                     (1,184)      (4,691)
New loans                                                                            8,099        1,500

                                                                                     6,240       (5,347)
12   RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

                                                                                      2004        2003
                                                                                     £'000       £'000
                                                                                 Unaudited     Audited

(Decrease)/increase in cash in the year                                             (3,135)      1,381
Cash (inflow)/outflow from (increase)/decrease in debt                              (6,915)      3,191

Change in net debt resulting from cash flows                                       (10,050)      4,572
Net debt brought forward                                                            (1,784)     (6,356)

Net debt carried forward                                                            (11,834)    (1,784)

     
13   ANALYSIS OF NET DEBT

                                                                            At                          At
                                                                      31 March                    31 March
                                                                          2003      Cash flows        2004
                                                                         £'000          £'000        £'000
                                                                       Audited      Unaudited    Unaudited             
                                                                                    

Cash at bank and in hand                                                 4,783        (2,571)        2,212
Bank overdrafts                                                              -          (564)         (564)

                                                                         4,783        (3,135)        1,648
Debt due within one year                                                 (657)            (3)         (660)
Debt due after one year                                                (5,910)        (6,912)      (12,822)

                                                                       (1,784)       (10,050)      (11,834)
     
14   RECONCILIATION OF MOVEMENTS IN EQUITY SHAREHOLDERS' FUNDS

                                                                                       2004       2003
                                                                                      £'000      £'000
                                                                                  Unaudited    Audited

(Loss)/profit for the financial year                                                (1,114)      2,416
Other recognised gains and losses in the year                                        1,244          70
Eliminate goodwill written off in prior years                                           95           -
Repurchase of shares                                                                  (675)     (2,156)

Net (reduction)/increase in equity shareholders' funds                                (450)        330

Opening equity shareholders' funds                                                  19,049      18,719

Closing equity shareholders' funds                                                  18,599      19,049


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