Interim Results

Solitaire Group PLC
3 October 2000







3 October 2000


                             SOLITAIRE GROUP Plc


                         INTERIM RESULTS ANNOUNCEMENT


                       'CONFIDENT OUTLOOK AT SOLITAIRE'




Results Highlights

  * Turnover up 22.9% to £2m. from £1.6m.

  * Operating profits before exceptional expenses and goodwill amortisation
    up 19.8% to £649,000 from £542,000

  * Pre-tax profits on ordinary activities increased to £515,000 from £
    46,000

  * Adjusted earnings are 9.2p compared with 8.3p per ordinary share

  * Basic earnings per ordinary share are 7.5p compared with a loss of 2.2p

  * Dividend per ordinary share is 2.55p compared with 2.45p



Residential Property Management

Record growth in new instructions.

Property Investment Portfolio Services

Steady growth continues in buy-to-let activity with increasing interest from
UK investors resident overseas.

Graham Shapiro, Joint Managing Director, Solitaire Group Plc commented:

'New instructions in residential property management are at record levels and
this will contribute positively to the group's revenue in the months and years
to come. We continue to look for earnings enhancing acquisitions and are
actively seeking additional income streams in residential rental management to
take advantage of our existing infrastructure. I am confident that the group
can look forward to sustained growth from its core activities'

Further information

Graham Shapiro, Joint Managing Director

Solitaire Group Plc                         020 8364 8497

David Millham/Tarquin Edwards

Millham Communications                    020 7256 5756

Chairman's statement

Results and dividend

I am pleased to report that Solitaire continued to grow its core operations of
residential property management with increasing instructions from national and
regional house builders throughout England and Wales. The operating profits
for the six months ended 30 June 2000, before charging exceptional expenses
and goodwill amortisation, increased by 19.8% to £649,000 (1999: £542,000).
Turnover increased by 22.9% to £1,999,000 (1999: £1,627,000). Adjusted
earnings per share, before exceptional costs and goodwill amortisation,
increased by 11% to 9.2p (1999: 8.3p)

Following the acquisition of the property management portfolio of Hazelvine in
June last year goodwill amortisation has increased. The group has also
incurred a small amount of additional costs relating to an abortive
acquisition in 1999 and these have been treated as an exceptional item.
Accordingly after exceptional costs and goodwill amortisation, pre-tax profits
were £515,000 (1999: £46,000). Basic earnings per share were 7.5p (1999:loss
of 2.2p).

The board is recommending the payment of an increased interim dividend of
2.55p (1999: 2.45p) per share in respect of the six month period ended 30 June
2000, which will be paid on 30 November 2000 to shareholders on the register
on 13 October 2000.

Review of operations

Residential property management

Our activities in the management of residential estates, mainly blocks of
flats, has seen a record growth in new instructions from both national and
regional house builders in the first six months of the year. Pembertons
Residential Limited continues to develop its London based management portfolio
and we have completed the integration of the Hazelvine portfolio acquired last
year.

As a result of the increase in management contracts, we strengthened our core
property management team in the latter half of 1999 and this is reflected in
the comparative costs.

Insurance services

Currently, the value of the portfolio for insurance purposes amounts to some £
1.13 billion. Solitaire continues to use its buying power to obtain
competitive terms when supplying insurance services to its clients.

Buy-to-Let

Property Investment Portfolio Services (PIPS) continues its steady growth and
we are experiencing increasing interest from UK investors resident overseas.
We have not yet supported the growth of this operation with significant
advertising, preferring to rely on organic growth. PIPS is not yet
contributing to group profits, but it is moving in that direction.

Management of rented property

The management of residential property for clients, rented to individuals on a
medium term basis, has seen the successful termination of the majority of the
BES schemes and the sale of the properties to institutional investors. The
group has successfully retained the management of the majority of these
properties. However, the competition for business in this area of property
management has meant that margins have been under pressure.

Current trading and prospects

New instructions in residential property management are continuing at record
levels and this will contribute positively to the group's revenue in the
months and years to come. We enjoy the benefits of the group's national
presence, which gives us a significant advantage in terms of economies of
scale and allows us to compete effectively for new business at both local and
regional level.

The group continues to look for earnings enhancing acquisitions and we are
actively seeking additional income streams in residential rental management to
take advantage of our existing infrastructure. I am confident that your group
can look forward to sustained growth from its core activities.



George Brutton, FRICS

Chairman

3 October 2000



Unaudited consolidated profit and loss account

                                                  Six months Six months Year to
                                                  to 30 June to 30 June  31 Dec
                                                        2000       1999    1999
                                            Notes      £'000      £'000   £'000
                                                     _______    _______ _______

Revenue                                                1,999      1,627   3,588

Operating expenses                                     1,350      1,085   2,309
                                                     _______    _______ _______
                                                         649        542   1,279
Goodwill amortisation                                   (54)       (32)    (81)
Exceptional costs                               3       (21)      (461)   (478)
                                                     _______    _______ _______

Operating profit                                         574         49     720

Interest receivable                                        6          8      73

Interest payable                                        (65)       (11)   (123)
                                                     _______    _______ _______
Profit on ordinary activities before                     515         46     670
taxation

Taxation on ordinary activities                          171        147     366
                                                     _______    _______ _______

Profit on ordinary activities after                      344      (101)     304
taxation

Dividend                                        4        116        112     365
                                                     _______    _______ _______
Retained profit / (loss) for the period                  228      (213)    (61)
                                                     _______    _______ _______

Basic earnings per share                        5       7.5p     (2.2)p    6.7p
Adjustment for goodwill amortisation                    1.2p       0.7p    1.8p
Adjustment for exceptional costs                        0.5p       9.8p   10.4p
                                                     _______    _______ _______
Adjusted earnings per share                     5       9.2p       8.3p   18.9p
                                                     _______    _______ _______








Unaudited consolidated balance sheet
                                                              30     30 31 Dec
                                                            June   June
                                                            2000   1999   1999
                                                           £'000  £'000  £'000
                                                          ______ ______ ______
Assets employed

Fixed assets
Intangible assets                                          1,060  1,020  1,114
Tangible assets                                            5,678  5,626  5,549
                                                          ______ ______ ______
                                                           6,738  6,646  6,663
                                                          ______ ______ ______
Current assets
Debtors                                                    2,017  2,945  1,634
Cash and deposits                                            131    197    328
                                                          ______ ______ ______
                                                           2,148  3,142  1,962
                                                          ______ ______ ______

Creditors: amounts falling due within one year             1,963  3,494  1,930
                                                          ______ ______ ______
Net current assets / (liabilities)                           185  (352)     32
                                                          ______ ______ ______
Total assets less current liabilities                      6,923  6,294  6,695

Creditors: amounts falling due after more than one         1,096    845  1,096
year
                                                          ______ ______ ______
                                                           5,827  5,449  5,599
                                                          ______ ______ ______

Financed by
Called-up share capital                                      456    456    456
Share premium                                              2,486  2,486  2,486
Revaluation reserve                                        1,731  1,731  1,731
Profit and loss account                                    1,154    776    926
                                                          ______ ______ ______

Equity shareholders' funds                                 5,827  5,449  5,599
                                                          ______ ______ ______





Unaudited consolidated cash flow statement
                                                           Six       Six   Year
                                                        months    months     to
                                                         to 30     to 30 31 Dec
                                                          June      June
                                                          2000      1999   1999
                                                         £'000     £'000  £'000

                                                       ______   ______ _______

Cash flow from operating activities                        649     (159)      7

Returns on investments and servicing of                   (58)       (2)   (50)
finance
Taxation                                                  (74)      (21)  (396)
Capital expenditure and financial investment             (152)     (132)   (30)
Acquisition and disposals                                    -     (611)  (755)
Equity dividends paid                                    (253)     (219)  (331)
                                                       ______   _______ _______
Cash inflow (outflow) before the use of liquid
resources and financing                                   112   (1,144) (1,555)

Financing                                                (355)       747  1,376
                                                       ______   _______ _______

Decrease in cash in the period                           (243)     (397)  (179)
                                                       ______   _______ _______

Reconciliation of net cash flow to movement in
net debt

Decrease in cash in the period                           (243)     (397)  (179)
Cash from decreased / (increased) debt                    355     (747)(1,376)
                                                       ______   _______ _______

Changes in net funds resulting from cash flows            112   (1,144) (1,555)

Net (debt) / funds at the beginning of the             (1,365)       190    190
period
                                                      _______   _______ _______

Net debt at the end of the period                     (1,253)     (954) (1,365)
                                                      _______   _______ _______


Reconciliation of operating profit to net cash inflow
from operating activities
Operating profit                                                574    49   720
Amortisation of goodwill                                         54    32    81
Depreciation of fixed assets                                     77    22    47
Profit on sale of fixed assets                                    -     -  (49)
Increase in debtors                                           (386) (506) (747)
Increase in creditors                                           384   244  (45)
                                                             ______ _____ _____

Net cash flow from operating activities                         649 (159)     7
                                                             ______ ______ ____







SOLITAIRE GROUP Plc

1     Basis of preparation


    The results for the six months ended 30 June 2000 have been prepared on
    the basis of the accounting policies set out in the consolidated financial
    statements at 31 December 1999. The comparatives for the year ended 31
    December 1999 have been extracted from the audited consolidated financial
    statements for that period.

2     Annual Financial Statements


    The audited consolidated financial statements for the year ended 31
    December 1999 have been filed with the Registrar of Companies and include
    an unqualified audit report. The comparatives included in this report do
    not constitute statutory accounts within the meaning of section 240 of the
    Companies Act 1985.

3     Exceptional costs


    Additional abortive acquisition costs, relating to last year, have been
    written off as an exceptional item.

4     Dividend


    The board has declared an interim dividend 2.55p (1999: 2.45p) per
    ordinary share, payable on 30 November 2000 to shareholders on the
    register on 13 October 2000.

5     Earnings per ordinary share


    The calculation of earnings per share for the six months ended 30 June
    2000 is based upon a profit of £344,000 (1999:loss of £101,000) and the
    average number of ordinary 10p shares in issue of 4,561,831 (1999:
    4,561,831). There are no potentially dilutive ordinary shares.

    The group considers that the additional disclosure of the adjusted
    earnings per share before the effect of exceptional costs and amortisation
    more truly reflects its operational performance.

6     Interim report


    Copies of the interim report for the six months ended 30 June 2000 will be
    sent to shareholders on 27 October 2000. Further copies will be available
    from the Company Secretary, Solitaire Group PLC, Lynwood House, 10 Victors
    Way, Barnet, Hertfordshire, EN5 5TZ and from the Company Announcements
    Office, The London Stock Exchange, Old Broad Street, London, EC2N 1HP.