Interim Results

Solitaire Group PLC
25 September 2001







25 September 2001

                             SOLITAIRE GROUP Plc

   Solitaire is a leading national provider of property management services


                               INTERIM RESULTS


                       SUBSTANTIAL INCREASE IN PROFITS

                             FOR SOLITAIRE GROUP


Results Highlights

                                     Change  Six months ended  Six months ended
                                                 30 June 2001      30 June 2000

Turnover                             +14.2%        £2,282,000        £1,999,000

Profit before tax, amortisation,     +24.7%          £809,000          £649,000
exceptional costs & interest

Profit before tax                    +35.8%          £699,000          £515,000

Earnings per share before            +27.2%             11.7p              9.2p
amortisation and exceptional costs

Earnings per share                   +38.7%             10.4p              7.5p

Interim dividend                      +7.8%             2.75p             2.55p




  * Residential Property Management continues to expand with a substantial
    increase in demand
  * Insurance services - value of property insured now amounts to £1.23
    billion
  * Buy-to-let is attracting a growing number of overseas clients keen to
    invest in the UK property market
  * Management of residential rented property continues to provide a steady
    source of income
  * Our professional and commercial services business is actively pursuing
    new opportunities where the recently acquired Moss Kaye team will be
    invaluable

Current trading and prospects

'The increasing flow of new developments undertaken by our national and
regional house builder clients shows no signs of slackening and we anticipate
further growth in the future' George Brutton, Chairman.


For further information:

Graham Shapiro, Joint Managing Director               Tel: [phone]
Solitaire Group Plc

David Millham / Tarquin Edwards                       Tel: [phone]
Millham Communications

Chairman's statement

I am pleased to report a further significant increase in our profitability for
the first half of our financial year. As I reported to you in my last
statement, our residential property management business continues to expand
and this has been reflected in increased revenue during the period.

On the 31 May 2001 we announced the acquisition of Moss Kaye & Roy Frank
('Moss Kaye'), the leading North London property management, commercial estate
agency and professional services operation, for a maximum of £1 million. This
acquisition broadens our range of services and provides an important
opportunity to cross sell professional services between the group members. It
is also a further move by the group into the area of commercial property
management, which we expect will provide increasing benefits in the years to
come.

Results and dividend

The operating profit for the six months ended 30 June 2001, before charging
exceptional costs and amortisation, increased by 24.7% to £809,000 (2000: £
649,000). Turnover increased by 14.2% to £2,282,000 (2000: £1,999,000).
Adjusted earnings per share, before exceptional costs and amortisation;
increased by 27.2% to 11.7p (2000: 9.2p).

Accordingly after exceptional costs, interest and amortisation, pre-tax
profits increased by 35.8% to £699,000 (2000: £515,000) and basic earnings per
share increased by 38.7% to 10.4p (2000: 7.5p).

The board is recommending the payment of an increased final dividend of 2.75p
(2000: 2.55p) per share, which will be paid on 23 November 2001 to
shareholders on the register on 5 October 2001.

Review of operations

Residential property management

The growing emphasis by both national and regional house builders on
developments comprising apartments in urban areas, either with or without a
commercial element, has resulted in a substantial increase in demand for our
services and this is reflected in the increased revenue achieved during the
first half of our financial year.

Solitaire is one of the largest managers of residential property in the United
Kingdom. An indication of the growing integration of our services with that of
our clients is that developers frequently consult us as part of their
professional team at the earliest stages of a proposed development. The advice
and assistance we provide often leads to savings in future maintenance costs
and therefore lower service charges for the benefit of residents.

Insurance services

The portfolio of properties managed by the group for insurance purposes
amounts to some £1.23 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 to attract a growing
number of clients from overseas keen to invest in the UK property market,
although it is not yet contributing to group profits. We are exhibiting at The
Worldwide Property Show in Abu Dhabi in October 2001, and expect to attract
substantial new business.

Management of residential rented property

Although operating in a competitive area of the property management business,
our management of residential rented property portfolios for clients continues
to provide a steady source of income for the group. We are continuously
seeking new ways to expand this business and promote new initiatives.

Professional and commercial services

Since the acquisition of Moss Kaye & Roy Frank (now renamed Moss Kaye
Pembertons Limited) we have been working towards utilising their professional
services in better serving our clients. We are also actively pursuing various
areas of new business where the expertise of the Moss Kaye team will be
invaluable.

Current trading and prospects

We continue to increase the number of properties under management, which
provides one of the key elements of our revenue stream. The increasing flow of
new developments undertaken by our national and regional house builder clients
shows no signs of slackening and we anticipate further growth in the future. I
look forward to the remainder of the year with confidence.

George Brutton, FRICS

Chairman

25 September 2001

Unaudited consolidated profit and loss account

                                                         Six Six months Year to
                                                      months
                                                       to 30 to 30 June  31 Dec
                                                        June
                                                        2001       2000    2000
                                             Notes     £'000      £'000   £'000
                                                     _______    _______ _______

Revenue                                                2,282      1,999   4,136

Operating expenses

External fees and commissions                             75        146     282

Administration expenses                                1,398      1,204   2,382
                                                     _______    _______ _______
                                                         809        649   1,472

Amortisation of goodwill and development                  60         54     109
costs

Exceptional costs                                          -         21      53

                                                     _______    _______ _______

Operating profit                                         749        574   1,310

Interest receivable                                        8          6      22

Interest payable                                        (58)       (65)   (120)
                                                     _______    _______ _______
Profit on ordinary activities before                     699        515   1,212
taxation

Taxation on ordinary activities                          225        171     410
                                                     _______    _______ _______

Profit on ordinary activities after                      474        344     802
taxation

Dividends                                        2       125        116     401
                                                     _______    _______ _______

Retained profit for the period                           349        228     401
                                                     _______    _______ _______

Basic and diluted earnings per share             3     10.4p       7.5p   17.6p

Adjustment for amortisation                             1.3p       1.2p    2.4p

Adjustment for exceptional costs                           -       0.5p    1.2p
                                                     _______    _______ _______

Adjusted earnings per share                      3     11.7p       9.2p   21.2p
                                                     _______    _______ _______






Unaudited consolidated balance sheet
                                                        30 June 30 June  31 Dec
                                                           2001    2000    2000
                                                          £'000   £'000   £'000
                                                        _______ _______ _______
Assets employed

Fixed assets

Intangible assets                                         1,907   1,060   1,005

Tangible assets                                           6,328   5,678   5,899
                                                        _______ _______ _______
                                                          8,235   6,738   6,904
                                                        _______ _______ _______
Current assets

Debtors                                                   1,859   2,017   1,693

Cash and deposits                                           366     131     198
                                                        _______ _______ _______
                                                          2,225   2,148   1,891
                                                        _______ _______ _______

Creditors: amounts falling due within one year            2,340   1,963   1,799
                                                        _______ _______ _______
Net current assets / (liabilities)                        (115)     185      92
                                                        _______ _______ _______
Total assets less current liabilities                     8,120   6,923   6,996

Creditors: amounts falling due after more than one        1,771   1,096     996
year
                                                        _______ _______ _______
                                                          6,349   5,827   6,000
                                                        _______ _______ _______

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                                   1,676   1,154   1,327
                                                        _______ _______ _______

Equity shareholders' funds                                6,349   5,827   6,000
                                                        _______ _______ _______





Unaudited consolidated cash flow statement
                                                         Six Six months Year to
                                                      months
                                                       to 30 to 30 June  31 Dec
                                                        June
                                                        2001       2000    2000
                                                       £'000      £'000   £'000

                                                     _______    _______ _______

Cash flow from operating activities                    1,090        649   1,410

Returns on investments and servicing of finance         (51)       (58)    (98)

Taxation                                               (225)       (74)   (286)

Capital expenditure and financial investment           (468)      (152)   (413)

Acquisition and disposals                            (1,078)          -       -

Equity dividends paid                                  (284)      (253)   (369)

Purchase of business                                     118          -       -
                                                     _______    _______ _______
Cash inflow (outflow) before the use of liquid
resources and financing                                (898)        112     244

Financing                                                775      (355)   (280)
                                                     _______    _______ _______

Decrease in cash in the period                         (123)      (243)    (36)
                                                     _______    _______ _______

Reconciliation of net cash flow to movement in
net debt

Decrease in cash in the period                         (123)      (243)    (36)

Cash flow from (increased) / decreased debt            (775)        355     280
                                                     _______    _______ _______

Changes in net funds resulting from cash flows         (898)        112     244

Net debt at the beginning of the period              (1,121)    (1,365) (1,365)
                                                     _______    _______ _______

Net debt at the end of the period                    (2,019)    (1,253) (1,121)
                                                     _______    _______ _______


Reconciliation of operating profit to net cash inflow
from operating activities

Operating profit                                            749     574   1,310

Amortisation of goodwill                                     60      54     108

Depreciation of fixed assets                                 38      23      64

Increase in debtors                                       (167)   (386)    (59)

Increase (decrease) in creditors                            410     384    (13)
                                                        _______ _______ _______

Net cash flow from operating activities                   1,090     649   1,410
                                                        _______ _______ _______






SOLITAIRE GROUP Plc



1     Basis of preparation of unaudited interim information


    The results for the six months ended 30 June 2001 have been reviewed by
    MacIntyre Hudson and have been prepared on the basis of the accounting
    policies set out in the consolidated financial statements at 31 December
    2000. The comparatives for the year ended 31 December 2000 have been
    extracted from the audited consolidated financial statements for that
    period.

    The audited consolidated financial statements for the year ended 31
    December 2000 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.

2     Dividends


    The board has declared an interim dividend 2.75p (2000: 2.55p) per
    ordinary share, payable on 23 November 2001 to shareholders on the
    register on 5 October 2001.

3     Earnings per ordinary share


    The calculation of earnings per share for the six months ended 30 June
    2001 is based upon a profit of £474,000 (2000: £344,000) and the average
    number of ordinary 10p shares in issue of 4,561,831 (2000: 4,561,831). 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.

4     Interim report


    Copies of the interim report for the six months ended 30 June 2001 will be
    sent to shareholders on 22 October 2001. Further copies will be available
    from the Company Secretary, Solitaire Group PLC, Lynwood House, 10 Victors
    Way, Barnet, Hertfordshire, EN5 5TZ and at the group's website,
    www.solitairegroup.com.