Final Results - Year Ended 31 December 1999

Solitaire Group PLC
19 April 2000

 
PRELIMINARY RESULTS ANNOUNCEMENT 
 
Good start to the new year at Solitaire 
 
 
 
Results Highlights 

                                                                              
                                                    Year ended     Year ended 
                                                   31 Dec 1999    31 Dec 1998 
                                                                              
  *     Turnover                                    £3,588,000     £2,792,000 
                                                                              
  *     Profit before tax and exceptional costs     £1,148,000     £1,074,000 
                                                                              
  *     Profit before tax                             £670,000     £1,074,000 
                                                                              
  *     Earnings per share before exceptional             17.1p          15.7p
        costs                                                                 
                                                                              
  *     Earnings per share                                 6.7p          15.7p
                                                                              
  *     Final dividend                                    5.55p           4.8p
                                                                              
  *     Total dividend                                    8.00p           7.2p
        
 
*     Residential Property Management 
      Continuing increase in business coming from our acquisition of the      
      Hazelvine portfolio. Substantial new business growth with benefits      
      coming through in this and subsequent years.
  
*     Property Investment Portfolio Services  
      High level of interest. Confident of steady future growth and           
      contribution to income.
 
Graham Shapiro, Joint Managing Director, Solitaire Group Plc commented: 
'We continue to receive an increasing number of appointments from many of the
national house-builders for the management of new residential developments
and I am confident that this trend will continue during 2000.'

For further information: 
 
Graham Shapiro, Joint Managing Director 
Solitaire Group Plc                         Tel: [phone] 
 
David Millham / Tarquin Edwards 
Millham Communications                      Tel: [phone]

 
Chairman's Statement 

Your company continues to experience healthy demand for its services. Pre-tax
profits, before exceptional costs, for the year ended 31 December 1999 were
£1,148,000 (1998: £1,074,000) an increase of 7%.

During the year, as mentioned at the time of the Interim Report, we had
abortive negotiations regarding a substantial acquisition and the resultant
costs have been treated as an exceptional item. Accordingly, after
exceptional costs, the pre-tax profit for the year was £670,000 (1998:
£1,074,000). Turnover was up by 28% or £796,000 to £3,588,000 (1998:
£2,792,000) and adjusted earnings per share, before exceptional items,
increased by 9% to 17.1p (1998: 15.7p). After exceptional items, earnings per
share were 6.7p.

The Board is recommending the payment of a final dividend of 5.55p (1998:
4.8p) per share making a total for the year of 8.0p (1998: 7.2p). This will
be paid on 26 May 2000 to shareholders on the register on 8 May 2000.


REVIEW OF OPERATIONS 

Residential Property Management 

Both Solitaire Property Management Company Limited and Pembertons Residential
Limited substantially increased the size of their business during the period.
Solitaire continued to be instructed by a wide range of national
house-builders in connection with the management of their new residential
developments.

Pembertons acquired the central London residential management portfolio of
Hazelvine Limited on 30 June 1999. This portfolio has now been successfully
integrated into Pembertons' business and is making a positive contribution to
group profitability.


Insurance Services 

The value of the property portfolio for insurance purposes amounts to
approximately £1.1 billion and this figure is likely to increase
progressively during the current financial year. We continue to use our
buying power to obtain competitive terms from insurance companies when
supplying insurance services to our clients.


Property Investment Portfolio Services Limited (PIPS) 

The level of interest in acquiring residential property for investment
purposes continues to be high, especially from overseas residents. We remain
confident that PIPS will continue to grow and will make a contribution to our
property management income.


CURRENT TRADING AND PROSPECTS 

The current financial year has started well and, against a background of a
buoyant new homes market, I look forward to the future with confidence. We
also continue to seek further acquisitions, which will enhance our core
business.

George Brutton, FRICS 
Chairman
19 April 2000


SOLITAIRE GROUP PLC

Consolidated profit and loss account 
 
 

                                                                              
  Year ended 31 December                                       1999       1998
                                                    Notes     £'000      £'000
                                                            _______    _______
  Revenue                                                     3,588      2,792
  Expenses                                                    2,390      1,732
  Exceptional costs                                     2       478          -
                                                            _______    _______
  Operating profit                                              720      1,060
  Interest receivable                                            73         38
  Interest payable                                            (123)       (24)
                                                            _______    _______
  Profit on ordinary activities before taxation                 670      1,074
  Taxation on ordinary activities                               366        358
                                                            _______    _______
  Profit on ordinary activities after taxation                  304        716
  Dividends                                             3       365        328
                                                             _______   _______
  Retained (loss) / profit for the financial                   (61)        388
  period                                                                      
                                                             _______   _______
  Earnings per share                                    4      6.7p      15.7p
  Earnings per share before exceptional costs           4     17.1p      15.7p
 


  Balance sheets 
 
                                                                              
                                              Group                Company    
  31 December                             1999       1998      1999       1998
                                         £'000      £'000     £'000      £'000
                                       _______    _______   _______    _______
  Assets employed                                                             
  Fixed assets                                                                
  Intangible assets                      1,114        440         -         49
  Tangible assets                        5,549      5,517     3,190      3,190
                                       _______    _______   _______    _______
                                         6,663      5,957     3,190      3,239
                                       _______    _______   _______    _______
  Current assets                                                              
  Debtors                                1,634        929     1,643        896
  Cash at bank and in hand                 328        463         2          -
                                       _______    _______   _______    _______
                                         1,962      1,392     1,645        896
                                       _______    _______   _______    _______
  Creditors: amounts falling due         1,930      1,589     1,239        786
  within one year                                                             
                                       _______    _______   _______    _______
  Net current assets / (liabilities)        32      (197)       406        110
                                       _______    _______   _______    _______
  Total assets less current              6,695      5,760     3,596      3,349
  liabilities                                                                 
  Creditors: amounts falling due         1,096        100       450         75
  after more than one year                                                    
                                       _______    _______   _______    _______
                                         5,599      5,660     3,146      3,274
                                       _______    _______   _______    _______
  
  Financed by                                                                 
  Called-up share capital                  456        456       456        456
  Share premium                          2,486      2,486     2,486      2,486
  Revaluation reserve                    1,731      1,731         -          -
  Profit and loss account                  926        987       204        332
                                       _______    _______   _______    _______
  Equity shareholders' funds             5,599      5,660     3,146      3,274
                                       _______    _______   _______    _______
 


  Consolidated cash flow statement  
 
                                                                              
  Year ended 31 December                                       1999       1998
                                                              £'000      £'000
                                                            _______    _______
  Cash flow from operating activities                             7        876
  Returns on investments and servicing of finance              (50)         14
  Taxation                                                    (396)      (246)
  Capital expenditure and financial investment                 (30)      (594)
  Acquisition and disposals                                   (755)      (151)
  Equity dividends paid                                       (331)      (168)
                                                            _______    _______
  Cash outflow before use of liquid                                           
  resources and financing                                   (1,555)      (269)

  Financing                                                   1,376          -
                                                            _______    _______
  
  (Decrease) / increase in cash in the year                   (179)      (269)
                                                            _______    _______
  
  Reconciliation of net cash flow to movement in net                          
  debt
                                                                        
  Decrease in cash in the year                                (179)      (269)
  Cash inflow from increased debt                           (1,376)          -
                                                            _______    _______
  
  Changes in net funds resulting from cash flows            (1,555)      (269)
  
  Net funds at the beginning of the year                        190        459
                                                            _______    _______
  
  Net (debt) / funds at the end of the year                 (1,365)        190
                                                            _______    _______
 

                                                                     
  Operating Profit                                              720      1,060
  Depreciation and amortisation                                 128         19
  Profit on sale of fixed assets                               (49)          -
  Change in debtors                                           (747)      (291)
  Change in creditors                                          (45)         88
                                                            _______    _______
  
  Cash flow from operating activities                             7        876
                                                            _______    _______
  


SOLITAIRE GROUP Plc 
 
Notes 
 
1. The results and balance sheet incorporate the audited results of
   Solitaire Group Plc and all its subsidiaries made up to 31 December 1999   
   and have been prepared on a basis consistent with the audited financial
   statements for the year ended 31 December 1998. 
   
2. The costs resulting from an abortive acquisition have been written off
   as an exceptional item. These costs are not an allowable expense in the
   calculation of the tax charge for the year. 

3. During the year the Company paid an Interim Dividend of 2.45(1998: 2.4p)
   pence per share. The Company has proposed a final dividend of 5.55 (1998:
   4.8p) pence per share making a total of 8.0p (1998: 7.2p) for the year. 
     
4. The calculation of earnings per share for the year ended 31 December
   1999 is based on earnings of £304,000 (1998: £716,000) and a weighted      
   average number of shares in issue of 4,561,831 (1998: 4,561,831). There is 
   no difference between basic and diluted earnings per share in 1999 and     
   1998. The adjusted earnings per share is based on the profits for the year 
   after tax adjusted for the exceptional costs.
 
5. The results for the year ended 31 December 1999 have been extracted from
   the audited financial statements, which will shortly be sent to            
   shareholders and filed with the Registrar of Companies. The auditor's      
   report on these accounts was unqualified.