Interim Results - Part 2

St. James's Place Capital PLC
26 July 2000


Part 2
          
                         Review Report by the Auditors
                 To The Board of St. James's Place Capital plc
                                       

Introduction

We have been instructed by the company to review the financial information set
out  on pages 9 to 22 and we have read the other information contained in  the
interim report for any apparent misstatements or material inconsistencies with
the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein,  is
the  responsibility of, and has been approved by the directors.   The  Listing
Rules of the Financial Services Authority require that the accounting policies
and  presentation  applied to the interim figures should  be  consistent  with
those  applied  in  preparing the preceding annual accounts except  where  any
changes, and the reasons for them, are disclosed.

Review work performed

We  conducted  our  review in accordance with guidance contained  in  Bulletin
1999/4  issued by the Auditing Practices Board.  A review consists principally
of  making enquiries of group management and applying analytical procedures to
the  financial  information and underlying financial data and  based  thereon,
assessing   whether  the  accounting  policies  and  presentation  have   been
consistently  applied  unless otherwise disclosed.  A  review  excludes  audit
procedures  such as tests of controls and verification of assets,  liabilities
and  transactions.  It is substantially less in scope than an audit  performed
in  accordance with Auditing Standards and therefore provides a lower level of
assurance  than an audit.  Accordingly we do not express an audit  opinion  on
the financial information.

Review conclusion

On  the  basis  of our review we not aware of any material modifications  that
should  be  made to the financial information as presented for the six  months
ended 30 June 2000.

PricewaterhouseCoopers
Chartered Accountants
London
                                       
                                       
                        Consolidated Long-Term Business
                               Technical Account
                                       
                                                             Restated
                                               6 Months      6 Months
                                                  Ended         Ended
                                                30 June       30 June
                                                   2000          1999
                                            ===========   ===========
                                    Note      £'Million     £'Million
                                                                     
Earned premiums, net of reinsurance                                   
   Gross premiums written           4            508.7          353.1
   Outwards reinsurance premiums                 (10.5)          (8.0)
                                            ===========   ===========
                                                 498.2          345.1
Increase in value of long-term                    28.6           35.9
business in force
Investment income                                426.1          109.1
Unrealised gains on investments                      -          135.9
                                            ===========   ===========
                                                 952.9          626.0
                                            ===========   ===========
                                                                     
Claims incurred, net of                                              
reinsurance
    Claims paid                                                      
    - gross amount                              (116.2)        (78.5)
    - reinsurers' share                            6.2           5.0
                                           ===========   ===========
                                                (110.0)        (73.5)
                                                                     
Change in the provision for claims                                   
    - gross amount                                (3.0)         (3.1)
    - reinsurers share                             0.6          (0.5)
                                            ===========   ===========
                                                  (2.4)         (3.6)
                                            ===========   ===========
                                                                     
                                                (112.4)        (77.1)
                                            ===========   ===========
                                                                     
Change in other technical                                           
provisions, net of reinsurance
   Long-term business provision                   (2.3)        (10.0)
   - reinsurers' share                             0.3           2.8
                                            ===========   ===========
                                                  (2.0)         (7.2)
                                                                    
Technical provisions for linked                                     
business                                        (475.6)       (439.2)
Net operating expenses                           (76.3)        (66.0)
Investment expenses and charges                   (7.4)         (5.4)
Unrealised losses on investments                (225.9)            -
Tax attributable to the                                             
long-term business                               (33.9)        (12.0)
                                            ===========   ===========
                                                (933.5)       (606.9)
                                            ===========   ===========
                                                                     
Balance on the long-term business                                   
technical account                   3             19.4          19.1
                                            ===========   ===========
                                                                     
                                       
                Consolidated Non-Technical Account

                                                             Restated
                                               6 Months      6 Months
                                                  Ended         Ended
                                                30 June       30 June
                                                   2000          1999
                                            ===========   ===========
                                    Note      £'Million     £'Million
                                                                     
Balance on long-term business                                         
technical account                   3               19.4          19.1
Tax credit attributable to balance                                   
on long-term business technical                                      
account                                             8.3           8.3
                                            ===========   ===========
                                                                    
Shareholders' profit from long-term                                 
business                                           27.7          27.4
                                                                    
Investment income                                                   
Income from participating                                           
interests 
  - continuing                                     11.9           4.7
  - discontinued                                      -           2.6
                                                     
Income from other investments                       3.4           2.0    
                                                    
Other income                                       19.1          10.5
Other expenses and charges                        (17.3)        (10.1)
Exceptional items                   6              (8.9)          1.6
                                            ===========   ===========
                                                                     
Profit on ordinary activities       2                                
before tax                                         35.9          38.7
                                                                     
Tax on profit on ordinary           7                                
activities                                        (13.6)        (11.0)
                                            ===========   ===========
                                                                     
Profit on ordinary activities       2                               
after tax                                          22.3          27.7
Dividends                           8              (4.2)         (3.2)
                                            ===========   ===========
Retained profit for the period                     18.1          24.5
                                            ===========   ===========
                                                                     
                                                  Pence         Pence
                                                                     
Earnings per share                  9               5.3           6.6  
                                                               
Adjusted earnings per share         9               7.7           6.6
                                                 
Fully diluted earnings per share    9               5.1           6.3         
                                                    
Fully diluted adjusted earnings     9              
per share                                           7.5           6.3

Dividend per share                  8              1.00           0.75     
                                                             
Net asset per share                              101.21          75.22      
                                                       

In  arriving  at  the operating  profit, unless otherwise  stated, all amounts
are in respect of continuing operations. The adjusted  1999 earnings per share
figures have been amended as detailed in note 9.

                   Consolidated Statement of Total
                     Recognised Gains and Losses


                                               6 Months      6 Months
                                                  Ended         Ended
                                                30 June       30 June
                                                   2000          1999
                                            ===========   ===========
                                              £'Million     £'Million
                                                        
                                                                     
Profit for the period                              22.3          27.7
                                                                     
Currency translation                                                
movements                                             -           0.4
                                            ===========   ===========
Total recognised gains                                               
for the period                                     22.3          28.1
                                            ===========   ===========
                                                                     
                                                        
                    Consolidated Balance Sheet


                                                30 June       30 June
                                                   2000          1999
                                            ===========   ===========
                                Note          £'Million     £'Million
                                                                     
Investments                                                          
   In participating interests                      93.7          85.1
   Land and buildings                               1.1           0.8
   Other investments                              152.8          98.3
                                            ===========   ===========
                                                  247.6         184.2
                                            ===========   ===========
                                                                     
Value of  long-term business                      204.5         167.1
in force
Assets held to cover linked                     3,955.3       2,824.2
liabilities
Reinsurers' share of technical                                       
provisions
   Long-term business provision                    18.3          14.9
   Claims outstanding                               1.4           2.1
Debtors                                            48.8          38.8
Other assets                                                         
   Tangible assets                                  7.2           5.3
   Cash and cash equivalents                       69.9          29.2
Prepayments and accrued income                     18.7           4.2
Deferred acquisition costs                         29.1          23.4
                                            ===========   ===========
Total assets                                    4,600.8       3,293.4
                                            ===========   ===========
                                                                     
Technical provisions                              (88.0)        (53.6)
Technical provision for linked                 (3,955.3)     (2,824.2)
liabilities
Provisions for other risks and  10                                  
charges                                           (13.3)         (6.3)
Creditors                                                    
Amounts owned to credit                           (11.9)        (22.9)
institutions
   Other creditors                                (78.8)        (53.6)
   Proposed dividend                               (4.2)         (3.2)
Accruals and deferred income                      (20.9)        (13.3)
                                            ===========   ===========
Total liabilities                              (4,172.4)     (2,977.1)
                                            ===========   ===========
Total net assets                                  428.4         316.3
                                            ===========   ===========
Capital and reserves                                                 
   Share capital                11                 63.5          63.1
   Shares to be issued          12                  0.8           1.2
   Other reserves               12                364.1         252.0
                                            ===========   ===========
Equity shareholders' funds                        428.4         316.3
                                            ===========   ===========
                                       
                                       
                       Consolidated Cash Flow Statement
                        (excluding policyholder funds)
  
                                             6 Months        6 Months
                                                Ended           Ended
                                              30 June         30 June
                                    Note         2000            1999
                                          ===========     ===========
                                           £' Million      £' Million
                                                                     
  Operating activities                                               
  Net cash inflow/(outflow)from                                      
  operating activities               13           4.1           (0.4)
                                                                     
  Dividends received from                                            
  participating interests                           -            2.2
  Returns on investments and                                         
  servicing of finance                                
  Interest received                               3.4            1.7
  Interest paid                                  (0.2)          (0.9)
                                          ===========     ===========
                                                  3.2            0.8
                                                                     
  Taxation                                                           
  Corporation tax paid                          (11.2)          (0.9)
                                                                     
  Capital expenditure and financial                                  
  investment
  Purchase of tangible                                               
  fixed assets                                   (2.2)          (2.1)
  Sale of fixed assets                            0.2            0.1
                                          ===========     ===========
                                                 (2.0)          (2.0)
                                                                     
  Equity dividends paid                          (4.2)          (3.2)      
                                                                
  Financing                                                          
  Issue of ordinary share capital                 0.1              -
  Increase in new loan                              -            0.2
                                          ===========     ===========
                                                  0.1            0.2          
                                                        
                                          ===========     ===========
  Net cash outflow                              (10.0)          (3.3)
                                          ===========     ===========
                                                                     
  The net cash outflow was invested                                  
  as follows:
                                                                     
  Net portfolio investments                                          
  Deposits with credit institutions             (17.8)           0.6          
                                                 
  Increase/(decrease) in cash                                        
  holdings                                        7.8           (3.9)
                                                                     
                                          ===========     ===========
  Net application of cash flows                 (10.0)          (3.3)
                                          ===========     ===========
                                                                     
 
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