Final Results

Sutton Harbour Holdings PLC
31 May 2001

31st May 2001



Sutton Harbour Holdings, the AIM listed harbour and Airports operator
announces record profits for the year ended 31st March 2001



Chairman's Statement

This has been another year of considerable progress. The acquisition of
Plymouth City Airport has exceeded our expectations and this, added to the
continued development of the Sutton Partnership, provides us with further
growth opportunities. With our positive cash flow, low gearing and strong
asset base, our company is very well placed.

I am delighted to report that your company has performed strongly in the year
to 31 March 2001. Total turnover has risen 83% to £8.691m from a year earlier
and that on continuing activities by 8% to £5.129m. Total operating profits,
including a maiden contribution of £413,000 from our airport activities, are
68% higher than a year ago and earnings per share (allowing for the additional
shares issued during the year) at 11.44p are up 44%, or 7.4% if one ignores
profits from the sale of properties in Vauxhall Street and Clare Place. The
contribution from our Sutton Partnership is likely to become more significant
in the years ahead but profits from this source are inevitably going to be
uneven in both their arrival and in their amount.

Both our fishing and to a lesser extent our marine leisure interests suffered
because of the appalling weather through much of the year so it is
particularly pleasing to record such a satisfactory increase in overall
profits. Your board has decided to recommend a final net dividend of 2.9p per
share which, with the interim dividend of 1.6p, makes a total of 4.5p for the
year, an increase of 12.5%. The dividend will be paid on 28 September to
shareholders on the register on 14 September. The shares are expected to go ex
dividend on 12 September.

Our biggest challenge in the year was to integrate the staff and activities of
Plymouth City Airport with our existing businesses. The task is now largely
completed and has been achieved very smoothly thanks to the enthusiasm and
hard work of all those involved. They are to be congratulated and we are most
grateful to them.

Despite making such a satisfactory profit in its first year in our ownership,
the scope for further growth from Plymouth City Airport is considerable if
only because there is still much under-utilised capacity available there. We
are actively seeking to encourage new flights to our airport but we must
accept that we live in a relatively sparsely populated part of the country and
therefore all new routes will be thin. We have identified routes, which we
believe are likely to be profitable, and we are marketing these to several
potential users. Newquay Cornwall Airport, where we have a short-term
management contract, also has considerable additional capacity. We have worked
hard to try to secure a longer term contract but it is now possible that the
freeholders will have to go out to competitive tender in the near future.

Over the years we have seen substantial revenue growth in fishing but, as has
been well reported, the fishing industry is experiencing difficult times.
Since the beginning of the calendar year I am pleased to tell you that the
value of fish landed at Sutton Harbour is up on the corresponding period last
year. This improvement is largely the result of firmer fish prices which have
responded to increased demand created by consumers choosing to eat more fish
following the outbreak of Foot and Mouth Disease.

Since our year end Mrs Sheridan Brimacombe has joined the Board as a
non-executive Director. Mrs Brimacombe is a Chartered Accountant and is senior
partner of a Plymouth accountancy practice. She is also Chairman of Plymouth
College of Art and Design. Her local knowledge and contacts will be of great
value to us. After eight years on the Board, Peter Langmaid will retire after
this year's Annual General Meeting. I would like to express our gratitude to
him for his very considerable contribution to the affairs of the company and
in particular for his skill in chairing the Audit Committee.

We believe prospects for your company are excellent thanks to the potential of
the airport and the Sutton Partnership. We hope the improvement in fishing
will continue and are confident that our marina and property interests will
make further worthwhile contributions to our profitability. We will continue
to seek opportunities for adding value both by investment and acquisition in
our present range of activities.

Ellen Winser

Chairman

30th May 2001







Operational Review

The year has been a significant one in your company's development. Our ongoing
strategy of developing a strong, well-balanced portfolio of quality trading
and investment assets has produced a year of record sales and profits.

The acquisition of Plymouth City Airport Limited and the continued development
of the Sutton Partnership has significantly contributed to our growth. We will
continue to focus our immediate attention on these key business areas, each of
which has excellent growth potential. Both the Airport and the Sutton
Partnership provide a valuable land bank, ensuring long-term prosperity. We
continue to investigate related acquisition opportunities and this is likely
to be an important part of our future growth.

Property Regeneration

The Sutton Partnership allows us to act either as a developer or purely as a
regeneration facilitator of land to the north and east of the harbour. This is
little different from our own regeneration activities of the last decade. What
is significant is that we now have the opportunity where we can achieve both
revenue and capital growth without necessarily purchasing the land and,
thereby, can participate in the development of Plymouth.

The sale of 130 Vauxhall Street in Plymouth represented the first tangible
result within the Partnership. It clearly demonstrates what the Partnership
can achieve. Others are developing the site into luxury flats (an area outside
the Company's expertise) and these, together with an adjacent 59 luxury flat
development on adjoining land, further enhance the property values around the
harbour itself. Valuations which are included in these accounts reflect
existing rentals, many of which were negotiated a number of years ago.

Despite earlier indications we are not yet in a position to announce the finer
details of our scheme for the Partnership's Moon Street development.

As far as our traditional property portfolio around the harbour is concerned,
the properties continue to be fully let. Our income growth potential is
limited to rent reviews and new leases at the end of prevailing lease terms.
During the year we sold Clare Place, a warehouse away from the harbour, and
realised a profit of £66,000. We deemed this site surplus to our core harbour
properties and the sale represented excellent business. We would emphasise
that despite the sale of this property and that at 130 Vauxhall Street, it is
not the Company's general policy to sell its land

Airport Owners

Your Board has been very pleased indeed with the first year's contribution
from Plymouth City Airport Limited.

The focus of our attention has been the integration of Management and Staff at
both Plymouth and Newquay with our existing businesses. Additionally, we
concentrated on increasing the base profitability and have also formulated
long-term growth plans.

We have brought in-house many functions that were previously out-sourced,
which has resulted in substantial cost savings. Most of these savings were
made part way through the year so we will be in a position to experience a
full year's savings this year. Against this however, with effect from January
2001, the daily postal flights into the Airport were cancelled, due to the
Post Office's increased efficiency at its new depot in Plymouth.

Our largest customer is Brymon Airways, a subsidiary of British Airways plc.
We were delighted to have concluded detailed negotiations with them to
introduce a new daily flight to Dublin and increased flights to Cork, from
February 2001. The nature of such negotiations within the airline industry
indicates that we will not see any income growth from these new flights until
April 2002.

It has been a disappointing late winter, with an unprecedented number of
cancelled and delayed flights, due to weather and other problems. These
disruptions obviously had a detrimental effect on our income, which consists
of landing fees, fuel sales and other charges. We are informed that the
operational problems have now been rectified. During the year we renewed
certain airport equipment and will shortly partially redevelop the interior of
the existing Plymouth terminal, whilst increasing parking spaces in line with
increased passenger numbers. These are necessary short-term measures, while we
consider our longer term plans.

Our negotiations with Plymouth City Council, the freeholders, on the new Lease
and Operating Agreement continue. With the City Airport surrounded by housing,
it is crucial that a happy medium is achieved between the wishes of the local
residents and the longer-term commercial aspirations of a growing airport.

We manage the terminal facilities at Newquay Cornwall Airport on a short-term
contract on behalf of two local authorities but the runway itself is owned by
the MOD; negotiations are frequently long and protracted. The runway at
Newquay is one of the longest in the UK but, of course, it serves a small
population, so the opportunities for many more scheduled services are
relatively limited. There is, however, scope to attract charter flights. The
Isles of Scilly Skybus services have recently moved to Newquay, which is
encouraging.

Fishing

Traditionally fish caught in Plymouth tends to be small quantities of high
value prime species such as Dover and Lemon Sole, Monkfish and Hake. Plymouth
has therefore not been adversely affected by the closure of Cod grounds, which
are mainly in the North Sea. It did, however, experience an appalling winter,
during which boats fished an average of only 15 days in the three months to
the end of December. Nevertheless, landings are currently 12% up by value this
calendar year, compared with 2000 and we are hopeful that, weather and fish
stocks permitting, this better trend will continue. There are early signs for
a good summer. We believe that our fishing income probably saw its low point
last winter.

Although there are difficult times ahead within the fishing industry, we do
have a long-term strategy for growth but this depends upon the development of
closer working relationships with others. Fishing continues to represent a
sizeable contribution to our business.

Marine Leisure

With the exception of Sutton Harbour Marina and its ancillary facilities, the
marine leisure side of our business has always been the most difficult. It
does, however, make a sizeable contribution to our business and its success
has traditionally relied solely on the unique surroundings and facilities
offered by our marina. Certain parts of our marine leisure businesses are
becoming increasingly non-core to our activities and may be sold in the
future. In the longer term, we do see marine leisure development opportunities
as part of a wider waterfront regeneration and it is in this context that we
see this activity as being an important strand of our business.





Financial Overview

In the year to 31 March 2001, the company increased its profits, reduced its
gearing and further strengthened its excellent asset base. With increased
earnings per share and an improved return on capital, the company is now well
placed to experience a period of sustained growth. The acquisition of Plymouth
City Airport has considerably improved the company's financial performance.
The overall profit has enabled us to strengthen our management team
substantially.

Operating Results - Overview

Earnings per share, adjusted so as not to recognise profits on the sale of
partnership property, Vauxhall Street, and on investment property, Clare
Place, have increased 7.4% from 7.97p to 8.56p. This year's earnings per share
are calculated net of a tax charge provision of £200,000, whereas last year
there was no tax charge.

Returns from our core businesses at Sutton Harbour and Plymouth City Airport
are likely to rise steadily in the next few years but the revenue stream from
assets in the Sutton Partnership will fluctuate.

The return on capital employed, (profit before tax expressed as percentage of
the balance sheet total) has increased 70% from 3.95% to 6.72%.

Acquisition of Plymouth City Airport

The acquisition cost of £2,000,000 was satisfied by the allotment of shares.
In addition £111,000 relating to legal fees and due diligence work was
incurred, which has been capitalised and added to the investment. The company
incurred expenses of £84,000 being the direct costs of issuing the shares;
these have been offset against the share premium account, as provided by the
Companies Act, 1985.

At the date of acquisition, Plymouth City Airport Limited had assets at a book
value of £1,665,000. A fair value review in accordance with Financial
Reporting Standard 7 was undertaken by the directors, supported by
professional advice, which has resulted in a £446,000 uplift in the value of
leasehold property.

At the same time as the purchase of Plymouth City Airport, £600,000 was paid
to Plymouth City Council for a one-off lease premium thereby eliminating the
annual rent which at the time amounted to a minimum of £63,000 per annum,
subject to review.

Included in the £600,000 paid to the City Council was a 4-acre site near the
terminal building, which we intend will provide an extension to the car park
and a general improvement of airport facilities.







Taxation

The company continues to have £942,000 of trading losses to carry forward, to
offset against future trading profits. These losses resulted in part from the
claiming of enhanced capital allowances on the sale and re-purchase of the
lock in 1993.

The tax charge arose this year on the profits at the airport but the Group's
corporation tax charge should continue to remain low for a number of years.

Financial Reporting Standards

Financial Reporting Standard 19, Deferred Tax, applies to accounting periods
ending on or after 23 January 2002. It will therefore apply to us next year.
The standard specifies a requirement to make a provision for the full amount
of deferred taxation. The impact of the provision relating prior to 31 March
2001 will fall upon retained profits.



Balance Sheet

At 31 March 2001, shareholders' funds increased 16.6% from £20,123,000 to £
23,469,000. Net assets per share fell slightly from £2.02 to £1.95 reflecting
the acquisition of the airport.

Cash Flow and Debt

Net cash inflow from operating activities increased from £1,028,000 last year
to £1,909,000 due to increased trading profits and the profit on the sale of
130 Vauxhall Street. Working capital has, however, increased to reflect the
increased trade arising from the airport. Debtors always tend to be high at
the time of our year-end given the effect of our quarterly and annual
invoicing patterns. Since the year-end debtors have fallen substantially.

All borrowings are currently by bank overdraft, which gives the company
flexibility. The company has uncommitted facilities of £1,529,000, which we
believe is an adequate amount for our likely needs in the future. We can thus
continue to trade with confidence.

Bank borrowings have fallen from £3,752,000 to £2,471,000. Gearing has fallen
from 20.0% to 11.8%. Lower interest rates, and a lower total borrowed will
reduce financing costs in the year ahead.


              G R O U P  P R O F I T  A N D  L O S S  A C C O U N T

                       For the year ended 31 March 2001
                                                               2001        2000
                                                               £000        £000
Turnover
Continuing Operations                                         5,129       4,750
Acquisition - Plymouth City Airport Ltd                       3,562           -
                                                           ________     _______
                                                              8,691       4,750
Cost of Sales                                                 6,173       2,935
                                                           ________    ________
Gross Profit                                                  2,518       1,815
Net Operating Expenses                                          780         783

Operating Profit

Continuing Operations                                         1,325       1,032
Acquisition - Plymouth City Airport Ltd                         413           -
                                                           ________    ________
Group Operating Profit                                        1,738       1,032
Profit on Sale of Fixed Asset Investment Properties              66           -
                                                            _______     _______
Profit on Ordinary Activities Before Interest                 1,804       1,032

Net Interest                                                    227         237
                                                          _________    ________
Profit on Ordinary Activities
Before Taxation                                               1,577         795

Taxation on Profit on Ordinary Activities                       200           -
                                                          _________    ________
Profit on Ordinary Activities                                 1,377         795
After Taxation and Attributable
to Shareholders

Dividends                                                       547         400
                                                           ________    ________
Retained Profit for the Year                                   £830        £395

Earnings per Share 1                                         11.44p       7.97p

Adjusted Earnings per Share 1                                 8.56p       7.97p
                                                           ________    ________



There are no recognised gains or losses other than the retained profits as
shown above.



                          B A L A N C E  S H E E T S

                                31 March 2001


                                         THE GROUP         THE COMPANY
                                            2001      2000      2001       2000
                                            £000      £000      £000       £000


Fixed Assets
Intangible Assets                              -        32         -          -
Tangible Assets                           26,189    24,088         -          -
Investments                                   63        63     2,217        172
                                       _________ _________ _________  _________
                                          26,252    24,183     2,217        172
                                       _________ _________ _________  _________
Current Assets
Stock                                        774       671         -          -
Debtors                                    2,099     1,065     7,164      6,600
Cash at Bank and in Hand                       4         1         4          8
                                       _________  ________  ________   ________
                                           2,877     1,737     7,168      6,608
                                       _________  ________  ________   ________
Creditors
(amounts falling due within one year)    (5,490)   (5,571)     (412)      (319)
                                        ________  ________  ________   ________
Net Current (Liabilities)/Assets         (2,613)   (3,834)     6,756      6,289
                                        ________  ________  ________   ________
Total Assets less
Current Liabilities                       23,639    20,349     8,973      6,461

Deferred Income                            (170)     (226)         -          -
(amount falling due after more          ________  ________  ________   ________
than one year)
                                         £23,469   £20,123    £8,973     £6,461
                                        ________  ________  ________   ________
Capital and Reserves
Called Up Share Capital                    3,037     2,495     3,037      2,495
Share Premium Account                      5,955     3,981     5,812      3,838
Revaluation Reserve                        8,198     8,198         -          -
Investment Property Revaluation            3,333     3,334         -          -
Reserve
Merger Reserve                               108       108         -          -
Profit and Loss Account                    2,838     2,007       124        128
                                        ________  ________  ________  _________
Equity Shareholders' Funds               £23,469   £20,123    £8,973     £6,461
                                        ________  ________  ________  _________

The Financial Statements were approved by the Board of Directors on 30 May
2001.

M. Ellen Winser.

Chairman.



                          GROUP CASH FLOW STATEMENT

                       For the year ended 31 March 2001
                                                                 2001      2000
                                                                 £000      £000
Reconciliation of Operating Profit to Net Cash inflow
from Operating Activities

Operating Profit                                                1,738     1,032

Depreciation Charges                                              161        94

Amortisation of Grants                                           (16)      (20)

Amortisation of Intangible Fixed Assets                            32         4

(Profit)/Loss on Sale of Tangible Fixed Assets                      -         6

Transfer to Stock of Development Property                         299         -

Increase in Stock                                                (59)      (66)

(Increase) in Debtors                                           (529)     (133)

Increase in Creditors                                             283       111
                                                            _________  ________
Net Cash Inflow from Operating Activities                      £1,909    £1,028
                                                            _________  ________
CASH FLOW STATEMENT

Net Cash inflow from Operating Activities                       1,909     1,028

Returns on Investments and Servicing of Finance                 (249)     (260)

Taxation                                                            -         -

Capital Expenditure                                                33     (300)

Acquisitions                                                      241         -

Dividends Paid                                                  (454)     (519)

Financing                                                       (196)         -
                                                             ________  ________
Increase/(Decrease) in Cash in the Year                         1,284     (£51)
                                                             ________  ________
Reconciliation of Net Cash Flow to Movement in Net Debt
Decrease/(Increase) in Net Debt in the Year                     1,284      (51)

Net Debt at 1 April 2000/1 April 1999                         (3,751)   (3,700)

Net Debt at 31 March 2001/31 March 2000                      (£2,467)  (£3,751)







1. EARNINGS PER SHARE
                                                                  2001    2000
Profit for the year attributable to Ordinary Shareholders       £1,377    £795
(£000)

Weighted average number of Ordinary shares (000)                12,036   9,980

Earnings per Share                                              11.44p   7.97p

Adjusted Earnings per Share
Profit for the year attributable to Ordinary Shareholders.      £1,377    £795
(£000)
Deduct Profit on Sale of Properties                              (281)       -
Deduct Profit on Sale of Fixed Asset Investment Property          (66)       -

                                                                £1,030
Weighted average number of Ordinary Shares (000)                12,036   9,980
                                                               ________ ________

Adjusted Earnings per Share                                      8.56p   7.97p



The adjusted Earnings per Share calculation for the year ended 31 March 2001
is stated net of the non-recurring profits on sale of properties.

2. PURCHASE OF SUBSIDIARY UNDERTAKING

On 17 April 2000 the company acquired 100% of the ordinary share capital of
Plymouth City Airport Limited for a consideration of £2,000,000, satisfied by
the issue of 1,666,667 ordinary shares at £1.20. The purchase of Plymouth City
Airport Limited has been accounted for by the acquisition method of
accounting. Advantage has been taken of section 131 of the Companies Act 1985
in respect of the premium on the issue of shares to finance the acquisition.

Fair value adjustments were made by the Directors for the value of long
leasehold property.



Analysis of the acquisition of Plymouth City Airport Limited.


Net assets at date of acquisition, 17 April 2000.
                               Book Value  Fair Value    Fair Value to Group

                                  £000     Adjustment            £000

                                              £000
Tangible fixed assets            1,423        446               1,869
Stocks                             44          -                  44
Debtors                           487          -                 487
Cash                              241          -                 241
Creditors due within one year    (530)         -                (530)

                                 £1,665       £446              £2,111


                                 --------------------------------------





Satisfied by

Issue of shares                                     2,000

Costs associated with acquisition                     111

                                                   ______


                                                   £2,111

                                                   ______