Final Results

Teather & Greenwood Holdings PLC
27 June 2001

TEATHER & GREENWOOD HOLDINGS PLC

27 APRIL 2001


                       TEATHER & GREENWOOD HOLDINGS PLC


              PREIIMINARY RESULTS FOR THE YEAR ENDED 30 APRIL 2001


HIGHLIGHTS


-  Turnover £34.6 million (2000: £30.9 million)

-  Profit before taxation £6.3 million (2000: £9.7 million)

-  Earnings per share 15.1 pence (2000: 24.8 pence per share)

-  Diluted earnings per share 13.9 pence (2000: 23.2 pence per share)

-  Final dividend of 1.5 pence per share (2000: 1.3 pence per share), making a
   total distribution for the year of 2.0 pence per share (2000: 1.3 pence per
   share)



Commenting upon the outlook, Jeremy Delmar-Morgan, Chairman said:

'Clearly the stockmarket is quieter than this time last year, which inevitably
influences the performances of some areas of our business.  Equally, other
areas have made more promising starts to the new financial year.  I look
forward to reporting on progress in due course.'



Ken Ford, Chief Executive, adds:

'Progress has been made across the company with the development of existing
and new services and products.  The overall shape and balance of the company
is now well established and those business areas that have been added more
recently are in the early stages of contributing.  In parallel, we shall
continue to invest in information technology and support services.'



For further information, please contact:



TEATHER & GREENWOOD HOLDINGS PLC                           020 7426 9000

Jeremy Delmar-Morgan, Chairman

Ken Ford, Chief Executive

Nick Stagg, Chief Operating Officer

Brian Rowbotham, Finance Director

Tim Davis, Marketing Director, Teather & Greenwood Limited




NOTE TO EDITORS


Teather & Greenwood Limited is one of the UK's leading independent
stockbrokers.  It has four principal business areas:



Corporate Finance - specialising in corporate finance advisory (including
mergers and acquisitions), institutional sales and market making services for
an increasing number of growing smaller and mid-cap public companies;



Equities Research - comprising individually rated and award-winning analysts
covering 17 sectors;



Institutional - providing institutional sales and research coverage of
significant UK and international equities, including dedicated teams for bonds
and fixed-interest instruments, derivatives and closed-end funds - corporate
finance, research, sales and market making, both for investment trusts and
foreign-listed funds; and


Investment Management - providing private clients with discretionary,
advisory, execution-only and 'on-line' broking services and a range of
tax-efficient products.



Teather & Greenwood Limited is the principal operating company of Teather &
Greenwood Holdings plc.



For more information on Teather & Greenwood Limited and its services, please
visit the company's website: www.teathers.com





CHAIRMAN'S STATEMENT



Our development plans highlight the Board's continuing objective of building
an enduring and profitable business for the long-term.  In the last financial
year, growth was assisted by exceptionally buoyant equity markets, which, by
their nature, can be cyclical.  It was therefore disappointing to have to
announce in March, that, in common with many of our competitors, we had been
experiencing significantly reduced demand for our retail-orientated services
since January and that there would be a consequent reduction in profitability
in the year ended 30 April 2001. A detailed review of trading follows in the
accompanying Chief Executive's Review.





Financial Highlights And Dividend



Turnover increased to £34.6 million (2000: £30.9 million), producing operating
profit of £5.2 million (2000: £9.6 million) and profit before taxation of £6.3
million (2000: £9.7 million).  The balance sheet remains sound, with net
assets of £16.0 million (2000: £12.3 million) and cash of £13.8 million (2000:
£9.6 million).



These results take into account significant investment made during the period
across the company, but mainly in revenue-generating areas. The priority when
making such investments is for an early contribution to profitability,
although in some cases, the benefits have yet to accrue.  In addition, we have
continued to invest in information technology and support services, ensuring
that both are in keeping with the needs of a growing company.



During the year, we disposed of 35% of our holding in the London Stock
Exchange at a profit of £996,000.  The remaining holding is in our Balance
Sheet under Fixed Asset Investments at cost of £1 but with a market value at
the financial year-end of £1.8 million.



Earnings per share were 15.1 pence (2000: 24.8 pence).  The Board is
recommending a final dividend for the year ended 30 April 2001 of 1.5 pence
(2000: 1.3 pence).  The dividend will be payable on 17 August 2001 to
shareholders on the register at 6 July 2001.  The Board believe that this
dividend reflects a balance between profitability during the period, our
confidence in the future and the need to reinvest in the continuing
development of the Group.





Board and employees



In March, the Board announced that following the Group's Annual General
Meeting in August, I shall move to a non-executive role.  At the same time,
Philip Ashfield, currently an executive director, will step-down from the
Board, but remain a director of Teather & Greenwood Limited.  Ken Ford
continues as Chief Executive, Brian Rowbotham as Finance Director and Derek
Boothman and Robin Derville as non-executive directors.



It was also announced that Nicholas Stagg, 41, a non-executive director since
August of last year, was appointed Chief Operating Officer of Teather &
Greenwood Holdings plc with immediate effect.  He has a proven track record of
managing and developing complex businesses within the public company arena and
has particular responsibility for improving the company's overall efficiency
and profitability and developing information technology, systems and
administration.



On behalf of the Board, I would like to welcome those who joined during the
year and thank everybody for their continuing dedication and effort in
building this successful business.



Move to the Official List and share bonus issue



In July 2000, the Group moved to the Official List of the London Stock
Exchange.  This was followed in August by a two-for-one share bonus issue to
improve liquidity of the shares.





Deloitte & Touche/Independent on Sunday Award



I am pleased to report that in May of this year, the company won this award
ahead of 99 other finalists.  The criteria was that turnover had to have grown
by at least 25% per annum over the last four years.  In addition, candidates
were required to have a turnover between £5 million and £100 million in the
last financial year.  This award says much of the public recognition of the
Group, the dedication of the staff and the success of the business.





Strategy



The Board's strategy remains to develop the Group as a broadly-based financial
services organisation, serving the wide-ranging needs of corporate,
institutional and private clients, principally in the United Kingdom, but
increasingly abroad.  In parallel, the directors seek to develop a
complementary and profitable mix of revenue streams, in order to manage the
risk of earnings volatility.



Historically, growth has been achieved via organic means, largely through the
attraction and retention of high quality, well-regarded employees.  Selective
recruitment will continue and with the increased management resource now
available, the Board expects to devote more time to the evaluation of
possible acquisitions.





Outlook



Clearly the stockmarket is quieter than this time last year, which inevitably
influences the performances of some areas of our business.  Equally, other
areas have made more promising starts to the new financial year.  I look
forward to reporting on progress in due course.



Jeremy Delmar-Morgan

Chairman



27 June 2001




Chief Executive's Review



The year ended 30 April 2001 was one of progress as we continue to build - for
the long-term - a broadly based, independent financial services organisation.



Emphasis has been placed on the measured and profitable expansion of the fee
and income generating business areas, with significant investment also being
made in essential support services.



Our main business areas - Corporate Finance (corporate finance advisory, M&A,
institutional sales and market making for smaller and growing companies);
Equities Research (comprising individually rated and award-winning analysts
covering 17 sectors); Institutional (institutional sales for larger
capitalisation companies and dedicated teams for bonds, derivatives and
closed-end funds (corporate finance, research, sales and market making, both
for investment trusts and foreign-listed funds); and Investment Management (a
comprehensive range of private client investment management services and
products) - performed well, particularly in the light of more challenging
market conditions in the second half of the year.





Corporate Finance



This team had another very good year, raising approximately £390 million on
behalf of clients in the course of 33 transactions, compared to £340 million
and 35 transactions last year.



The corporate finance department increased its corporate client list from 73
to 91.  Transactions completed during the year included 10 flotations and 19
secondary fund raisings.  The flotation of new companies apart, the department
has also won quoted clients as a direct consequence of larger competitors'
diminishing interest in smaller companies.  The mergers and acquisitions team
worked on transactions with the corporate finance team and also completed
three where they worked independently.



The dedicated team of institutional salesmen and sales traders had a very
productive year, dealing in house and increasingly, non-house stocks.  Their
reputation within the smaller company arena is deservedly high, as evidenced
by their ability to place stock in quality new companies in often challenging
stockmarket conditions, a feature which has continued into the current year,
with approximately £100 million raised on behalf of clients in May and June.
Their marketing efforts were helped by the introduction during the year of
new-style smaller company and sector-specific events for the benefit of
corporate, non-corporate and institutional clients.



The market-making team has increased coverage to approximately 100 stocks.
Apart from providing this essential service to the growing corporate client
list, the team continues to add non-house stocks.





Equities research



This department now covers 17 sectors, producing research on over 400
companies, together with related sector-specific publications.  The quality
and impartiality of Teather & Greenwood Limited's research was again
recognised, for the third year in succession, by the winning of the
prestigious AIM Awards Best Research prize.  This increased profile has
assisted the analysts in their continuing programme of direct contact with
institutional clients, an essential exercise to help maintain existing
relationships and to build new ones, thus ensuring the maximum return on
investment in this area.  Indeed, this month the annual Reuters Smaller
Companies Survey showed significant improvements in our analysts' rankings in
the key criteria of how they are rated by institutional investors and the
management of listed companies.





Institutional



The larger market capitalisation sales team had a good year overall,
continuing to build their client base and increasing the range of stocks in
which they deal.  They are also playing a full part in the marketing of the
research product to institutional clients and have been active in building our
presence in the European Securities Network.  This is an affiliation of eight
independent European stockbrokers and investment banks, of which Teather &
Greenwood Limited is the UK member.



The bonds and fixed-interest team, which provides in-depth coverage of
convertible debt, permanent interest-bearing bonds, preference shares and
floating rate notes, continues to develop its client base.  Its offering and
appeal has been expanded by the recruitment of a well-known global economist.




The derivatives team, whose main product is currently Contracts for
Difference, continues to develop its service and has added a wide range of new
clients.  It deals both with private investors (some of whom are clients of
the Investment Management Department) and with other brokers.  The
introduction of other products is currently under review.



The closed-end funds team, which provides an integrated corporate finance,
research, sales and market-making service and focused historically upon
UK-listed investment trusts, had an extremely profitable year, during which
time it completed two transactions on behalf of clients, raising a total of £
145 million.  Since the year-end, it has already completed the Group's
largest-ever fund raising of £180 million.



As we seek to develop closed-end funds as a major business area, we announced
in May of this year the recruitment of a seven-strong, UK-based country funds
team from a global investment bank, together with a dedicated corporate
finance ability. Both have profitable track records and are progressing well.





Investment Management



This department has been the subject of reorganisation as we seek to develop
it into a modern investment management business with the objective of
significantly increasing the proportion of discretionary investment management
business.



This process has entailed a thorough review of the department's investment
policies, systems and infrastructure, the gradual elimination of unprofitable
business and the introduction of a new stock selection process.



The regeneration of this business, which is being executed against a
three-year plan, also necessitates developing the scale of the operation and
its range of discretionary services.  This is in part being achieved by the
selective recruitment of highly regarded people, whose efforts are beginning
to bear fruit.  A team specialising in managing portfolios for charities has
been recruited since the financial year-end.



This area incorporates a dedicated tax-efficient solutions team which had a
very good year, increasing its fee income by some 85%. It successfully
launched the Take 2 and Take 3 TV Partnerships, which are designed to provide
income tax relief. Take 3 has been a major success and demand has greatly
exceeded supply.  Funds under management for tax-efficient portfolios (TG
Portfolios) increased significantly during the period and there was also a
further successful fund raising for the latest children's nursery EIS issue.



Teathers-i-deal (www.teathers-i-deal.com), our internet-based trading
facility, has been operational since April 2001.  This is a premium service
available to institutional and private clients and to Independent Financial
Advisers and their clients.  It offers subscribers comprehensive news and
analysis, together with Teather & Greenwood's equities research.





Support services



All of this growth requires an efficient infrastructure.  We shall continue to
invest in our information technology systems, to ensure they are flexible and
scalable as the volumes of business grow.



Our finance and compliance departments have also been expanded in line with
our growth.  During the year, the latter oversaw the application of the
Turnbull guidelines to the company, with action taken as appropriate to ensure
compliance.  The department is currently working on the implementation of '
N2'.  This is a complex set of requirements and regulations laid-down by the
Financial Services Authority.  It is anticipated these will become effective
in November of this year and our plans are well advanced towards meeting this
target.





Staff



People are vital to a successful financial services company.  Recruitment,
motivation, training and staff retention are taken seriously.  We have
recently launched student intern and graduate trainee schemes and staff
training programmes have become competency-based.  I join the  Chairman in
thanking  existing and new colleagues for their contributions during a period
of difficult market conditions.




Summary



Progress has been made across the company with the development of existing and
new services and products.  The overall shape and balance of the company is
now well established and those business areas that have been added more
recently are in the early stages of contributing.  In parallel, we shall
continue to invest in information technology and support services.



Ken Ford

Chief Executive



27 June 2001





GROUP PROFIT & LOSS ACCOUNT

For the year ended 30 April 2001


                                               Year ended 2001 Year ended 2000
                                                         £'000           £'000

Turnover                                                34,584          30,904


Operating costs                                       (29,394)        (21,274)


Operating profit                                         5,190           9,630


Profit on disposal of fixed                              1,009               7
asset investments


Profit on ordinary activities before interest            6,199           9,637


Net interest receivable                                    126              96


Profit on ordinary activities before taxation           6, 325           9,733


Taxation on profit on ordinary activities              (2,135)         (3,030)


Profit for the year                                      4,190           6,703


Equity dividend                                          (558)           (370)


Profit transferred to reserves                           3,632           6,333


Earnings per share                                       15.1p           24.8p


Diluted earnings per share                               13.9p           23.2p






STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


                                               Year ended            Year ended
                                                     2001                  2000
                                                    £'000                 £'000

Profit for the year                                 4,190                 6,703




BALANCE SHEETS

as at 30 April 2001

                                            Group    Group  Company  Company
                                             Year     Year     Year     Year
                                            ended    ended    ended    ended
                                             2001     2000     2001     2000
                                            £'000    £'000    £'000    £'000

FIXED ASSETS

Tangible assets                             1,795      972        -        -

investments                                   924      100    9,171    9,111

                                            2,719    1,072    9,171    9,111

CURRENT ASSETS

Trading positions                          10,725    3,073        -        -

Debtors                                   200,499  181,166      471      469

Cash                                       13,754    9,622       56       82


                                          224,978  193,861      527      551

CREDITORS: amounts falling due within
one year                                  211,690  182,601    2,057    1,826


NET CURRENT ASSETS/(LIABILITIES)           13,288   11,260  (1,530)  (1,275)


TOTAL ASSETS LESS CURRENT
LIABILITIES                                16,007   12,332    7,641    7,836


CAPITAL AND RESERVES

Called up share capital                     2,788      925    2,788      925

Share premium account                       2,229    4,049    2,229    4,049

Other reserves                                 14       14    2,606    2,606

Profit and loss account                    10,976    7,344       18      256


EQUITY SHAREHOLDERS' FUNDS                 16,007   12,332     7641    7,836



Approved by the Board of Directors on 26 June 2001



J H Delmar-Morgan               E K Ford

Chairman                        Chief Executive



GROUP CASH FLOW STATEMENT

For the year ended 30 April 2001

                                          Year        Year     Year     Year
                                         ended       ended    ended    ended
                                          2001        2001     2000     2000
                                         £'000       £'000    £'000    £'000

NET CASH INFLOW/(OUTFLOW)

FROM OPERATING ACTIVITIES                           12,386             (262)


RETURNS ON INVESTMENTS AND SERVICING OF
FINANCE

Interest received                             126                97
Interest paid                                   -               (1)

Net cash inflow from returns
on investments and servicing
of finance                                             126                96


TAXATION

Corporation tax paid                               (3,267)           (1,229)


CAPITAL EXPENDITURE

Receipts from sales of tangible fixed           -             1,048
assets

Payments to acquire
tangible fixed assets                     (1,455)           (1,022)

Payments to acquire
trade investments                           (874)                 -

Receipts from sale of trade investments     1,059                 -

Net cash (outflow) / inflow from capital
expenditure                                        (1,270)                26


Equity dividend paid                                 (509)             (112)


Financing


Issue of ordinary share capital                         43             1,611

Increase in cash                                     7,509               130




NOTES



1.   TURNOVER AND SEGMENTAL ANALYSIS


                                                      2001
                                                  Turnover            Operating
                                                     £'000               Profit
                                                                          £'000

Financial services                                  34,584                5,190


The net gain on trading in financial instruments was £4,745,389 (2000: 
£4,348,565) and is included in the turnover for financial services


                                                     2000
                                                 Turnover             Operating
                                                    £'000                Profit
                                                                          £'000

Financial services                                 30,897                 9,774

Other income                                            7                 (144)

                                                   30,904                 9,630



2.   EARNINGS PER SHARE


The earnings and number of shares in issue or to be issued in calculating the
earnings and diluted earnings per share were as follows:



                           2001          2001             2000             2000
                        Diluted                        Diluted
                       Earnings      Earnings         Earnings         Earnings
                          £'000         £'000            £'000            £'000

Earnings                  4,190         4,190            6,703            6,703

Number of shares     30,208,104    27,827,815       28,865,427       27,042,705

Earnings per share        13.9p         15.1p            23.2p            24.8p



RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW/(OUTFLOW) FROM
OPERATING ACTIVITIES

                                                                Year       Year
                                                               Ended      Ended
                                                                2001       2000
                                                               £'000      £'000

Operating profit                                               5,190      9,630

Depreciation                                                     632        242

Increase in trading positions                                (1,889)    (2,028)

Increase in debtors                                         (19,333)   (62,979)

Increase in creditors                                         27,786     54,873


Net cash inflow/(outflow) from operating activities           12,386      (262)




4.   COMBINED RECONCILIATION OF NET CASHFLOW AND ANALYSIS OF MOVEMENT IN NET
FUNDS


                               At 30 April                          At 30 April
                                      2000        Cashflow                 2001
                                     £'000           £'000                £'000

Bank balances                        9,622           4,132               13,754
Bank overdrafts                    (5,069)           3,377              (1,692)


Total net funds                      4,553           7,509               12,062




5.   STATUTORY ACCOUNTS


The financial information set out in the announcement does not constitute the
company's statutory accounts for the years ended 30 April 2001 or 2000.  The
financial information for the year ended 30 April 2000 is derived from the
statutory accounts for that year which have been delivered to the Registrar of
Companies. The auditors reported on those accounts; their report was
unqualified and did not contain a statement under s237 (2) or (3) Companies
Act 1985.  The statutory accounts for the year ended 30 April 2001 will be
finalised on the basis of the financial information presented by the directors
in this preliminary announcement using the same accounting policies and will
be delivered to the Registrar of Companies following the company's annual
general meeting.



END