Interim Results

Teather & Greenwood Holdings PLC
14 December 2001



TEATHER & GREENWOOD HOLDINGS plc

14 DECEMBER 2001 - EMBARGOED FOR 7.00AM



                       TEATHER & GREENWOOD HOLDINGS PLC

           INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2001

HIGHLIGHTS

-  Turnover £19,785,000 (2000:  £18,205,000)

-  Operating profit £429,000  (2000:  £3,599,000)

-  Profit before tax £1,119,000 (2000:  £3,665,000)

-  Earnings per share 2.9p (2000:  8.7p)

-  Maintained interim dividend of 0.5p (2000: 0.5p)

-  Net Assets £16,736,000 (2000: £14,644,000)


Jeremy Delmar-Morgan, Chairman, comments:


'Current stockmarket conditions make predictions for the second half
difficult.  Notwithstanding this, building a successful, independent business
for the long-term remains our key objective and to this end, we remain well
placed for a recovery in the markets and associated corporate activity.'


For further information, please contact:

TEATHER & GREENWOOD LIMITED                          020 7426 9000
Jeremy Delmar-Morgan, Chairman
Ken Ford, Chief Executive
Nick Stagg, Chief Operating Officer
Brian Rowbotham, Finance Director


ABOUT TEATHER & GREENWOOD

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

Investment Management - providing private clients and independent financial
advisers, 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

I am pleased to report on a period of continuing development across the
business.

As indicated at August's Annual General Meeting, the period under review
reflects a quieter stockmarket than the comparable period last year, which in
turn influenced the performances of some areas of our business. Despite this,
Teather & Greenwood was profitable, which says much about its resilience and
potential.

The results should also be considered in the context of the Board's continuing
long-term objective of building Teather & Greenwood as a leading independent
financial services organisation.  The results announced today take into
account considerable investment in the business, both in terms of further
developing already successful business areas, entering new revenue-generating
business areas and in ensuring that the infrastructure is in keeping with the
demands of a growing business.

FINANCIAL HIGHLIGHTS AND DIVIDEND

Turnover was £19,785,000 (2000:  £18,205,000), producing operating profit of £
429,000 (2000:  £3,599,000).  Profit before taxation was £1,119,000 (2000:  £
3,665,000).  The balance sheet at the half-year end remained sound, with net
assets of £16,736,000 (2000: £14,644,000).


Earnings per share were 2.9p (2000:  8.7p).  The Board is declaring a
maintained interim dividend of 0.5p per share (2000: 0.5p), which will be
payable on 28 January 2002 to shareholders on the register at 31 December
2001.


CORPORATE FINANCE ADVISORY AND BROKING

This team had a good first half, completing 15 transactions (excluding
closed-end funds) and raising approximately £160 million on behalf of clients.
Transactions included fund raisings for existing quoted companies and
several IPOs - a creditable achievement in the prevailing market conditions
and one that says much about the team's ability and reputation.  A number of
new corporate clients were won during the period, including some from our
larger competitors, bringing the total today to 82, compared to 71 at the same
time last year.



EQUITIES RESEARCH

The Equities Research department continued to expand the range of companies
followed, reflecting the growing corporate client list and increasing coverage
of non-client stocks, both large and small, which has the added benefit of
broadening the company's appeal to a wider range of institutional clients.  A
number of the analysts improved their rankings (with some featuring for the
first time) in the annual Reuters UK Smaller Companies Survey.  In addition,
for the fourth year in succession, the department won the prestigious AIM
Awards Best Research prize.

INSTITUTIONAL DEPARTMENT

The teams specialising in larger capitalisation institutional sales, bonds and
contracts for difference under the circumstances produced satisfactory overall
performances.

The closed-end funds team, the subject of significant investment and
expansion, completed five transactions, raising over £300 million on behalf of
clients.  More recently,  they completed their first cross-border transaction
and fund raising.  The team now has 20 brokerships, including eight Venture
Capital Trusts.



TEATHER & GREENWOOD INVESTMENT MANAGEMENT

This department continues to make progress with its regeneration. New
discretionary business is being won and some clients are transferring into the
fee-paying collective funds introduced during the period. Other products will
be added in the future, including a fund specialising in UK smaller companies.


CORPORATE DEVELOPMENT

Our information technology and systems remain under constant review and have
been the subject of further investment.  This will continue, to ensure that
both remain efficient, flexible and able to accommodate increasing levels of
business.

A project team is in place to develop and implement a formalised approach to
institutional client account management across the range of institutions with
whom we deal.

In October, we announced the acquisition of Escalon Investments, a vehicle
formed to acquire the corporate finance-related business of Rathbone Neilson
Cobbold and the five-strong Liverpool-based team, for an initial cash
consideration of £150,000.  Additional deferred consideration, which is
effectively limited to £2.4 million, will be payable upon achieving post-tax
profit milestones for each of the three years ending on 31 March 2004.

EMPLOYEES

On behalf of the Board, I would like to welcome those employees who have
joined since June and thank everybody for their contributions to the
development of the business.

OUTLOOK

Current stockmarket conditions make predictions for the second half difficult.
Notwithstanding this, building a successful independent business for the
long-term remains our key objective and to this end, we remain well placed for
a recovery in the markets and associated corporate activity.

JEREMY DELMAR-MORGAN
CHAIRMAN

14 December 2001


GROUP PROFIT AND LOSS ACCOUNT
for the six months ended 31 October 200PRIVATE 1

ADVANCE /D 12.20


                                Note  6 months ended 6 months ended  Year ended
                                          31 October     31 October    30 April
                                                2001           2000        2001
                                               £'000          £'000       £'000

TURNOVER                          (1)         19,785         18,205      34,584

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

OPERATING COSTS                             (19,356)       (14,606)    (29,394)
                                      -------------- -------------- -----------

OPERATING PROFIT                                 429          3,599       5,190
                                      -------------- -------------- -----------

Profit on disposal
of fixed asset
investments                                      667              -       1,009
                                      -------------- -------------- -----------

PROFIT ON ORDINARY
ACTIVITIES BEFORE
INTEREST AND
INVESTMENT INCOME                              1,096          3,599       6,199
                                               

Net interest and
investment income                                 23             66         126
                                                  
                                      -------------- -------------- -----------

Profit on ordinary
activities before
taxation                                       1,119          3,665       6,325

Taxation on profit
on ordinary
activities                                     (315)        (1,257)     (2,135)
                                      -------------- -------------- -----------

Profit for the                                   804          2,408       4,190
period

Equity dividend                                (143)          (139)       (558)
                                       ------------- -------------- -----------

Profit transferred
to reserves                                      661          2,269       3,632
                                      -------------- -------------- -----------

EARNINGS PER SHARE                (2)           2.9p           8.7p       15.1p

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

DILUTED EARNINGS PER                            2.7p           8.0p       13.9p
SHARE

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

DIVIDEND PER SHARE                              0.5p           0.5p        2.0p

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


CONSOLIDATED BALANCE SHEET
as at 31 October 2001

                                              31 October  31 October 30 April
                                                    2001        2000     2001
                          Note
                                             (unaudited) (unaudited)  (audited)
                                                   £'000       £'000      £'000
FIXED ASSETS
Tangible assets                                    2,051       1,395      1,795
Investments               (6)                      1,662         750        924
Intangible assets                                    900           -          -
                                              ---------- ----------- ----------
                                                   4,613       2,145      2,719
                                              ---------- ----------- ----------

CURRENT ASSETS
Trading positions                                  6,287       8,153     10,725
Debtors                                          200,067     166,753    200,499
Cash at bank and in hand  (4)                      7,027       7,627     13,754
                                              ---------- ----------- ----------
                                                 213,381     182,533    224,978
                                              ---------- ----------- ----------

CREDITORS: AMOUNTS
FALLING DUE WITHIN ONE
YEAR                                             200,458     170,034    211,690
                                              ---------- ----------- ----------

NET CURRENT ASSETS                                12,923      12,499     13,288
                                              ---------- ----------- ----------

TOTAL ASSETS LESS CURRENT
LIABILITIES                                       17,536      14,644     16,007

CREDITORS: AMOUNTS
FALLING DUE AFTER MORE
THAN ONE YEAR                                        800           -          -

NET ASSETS                                        16,736      14,644     16,007
                                              ---------- ----------- ----------
CAPITAL AND RESERVES
Called up share capital                            2,812       2,788      2,788
Share premium account                              2,273       2,229      2,229
Other reserves                                        14          14         14
Profit and loss account                           11,637       9,613     10,976
                                              ---------- ----------- ----------
EQUITY SHAREHOLDERS'                              16,736      14,644     16,007
FUNDS
                                              ---------- ----------- ----------

ADVANCE /D 6.45


GROUP CASH FLOW STATEMENT
for the six months ended 31 October 2001

                          Note  6 months to 31  6 months to 31      Year to 30
                                  October 2001    October 2000      April 2001
                                £'000    £'000   £'000   £'000   £'000   £'000

NET CASH OUTFLOW)/
INFLOW FROM OPERATING
ACTIVITIES                 (3)         (4,750)           3,858          12,386

RETURNS ON INVESTMENTS
AND SERVICING OF FINANCE

Interest and other
investment income
received                           23               66             126
                                -----  ------- ------- ------- ------- -------

Net cash inflow from
returns on investments
and servicing of finance                    23              66             126
                                           

TAXATION

Corporation tax paid                     (700)         (1,298)         (3,267)

CAPITAL EXPENDITURE AND
FINANCIAL INVESTMENT

Payments to acquire
tangible fixed assets           (783)            (698)         (1,455)
Payments to acquire trade
investments                     (686)            (650)           (874)
Receipts from sales of
trade investments                 667                -           1,059
Payments to acquire
intangible fixed assets         (100)                -               -
                                
                                -----  ------- ------- ------- ------- -------
Net cash outflow from
capital expenditure             (902)          (1,348)         (1,270)

EQUITY DIVIDEND PAID                     (421)           (370)           (509)

FINANCING

Issue of ordinary share                     68              42              43
capital
                                -----  ------- ------- ------- ------- -------
(DECREASE)/INCREASE IN     (5)         (6,682)             950           7,509
CASH


NOTES



1.             TURNOVER AND SEGMENTAL ANALYSIS



Turnover arises entirely from financial services activities. All turnover was
generated in the United Kingdom


               6 months ended 31      6 months ended 31    Year ended 30 April
                  October 2001           October 2000              2001
             Turnover     Operating Turnover     Operating Turnover   Operating
                             Profit                 Profit               Profit
                £'000         £'000    £'000         £'000    £'000       £'000

Financial      19,785           429   18,205         3,599   34,584       5,190
Services


The net gain on trading in financial instruments is shown below and is
included in the turnover for financial services.


                              £'000                  £'000                £'000
                                329                  2,304                4,745


2.      EARNINGS PER SHARE

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


                    31 October 2001       31 October 2000         30 April 2001
                 Diluted               Diluted               Diluted
                Earnings   Earnings   Earnings   Earnings   Earnings   Earnings
                   £'000      £'000      £'000      £'000      £'000      £'000

Earnings             804        804      2,408      2,408      4,190      4,190
             ----------- ---------- ----------  --------- ---------- ----------

Number of
Shares        29,929,175 28,007,491 30,005,888 27,777,012 30,208,104 27,827,815
             ----------- ---------- ----------  --------- ---------- ----------

Earnings per
share               2.7p       2.9p       8.0p       8.7p      13.9p      15.1p
             ----------- ---------- ----------  --------- ---------- ----------

                    

Calculation of number of shares at 31 October 2001.


At 1 May      27,877,245 27,877,245  9,246,415  9,246,415  9,246,415  9,246,415

Bonus issue
4 August
2000                   -          - 18,492,830 18,492,830 18,492,830 18,492,830

Weighted
average
number of
shares
issued
during
period           130,246    130,246     37,767     37,767     88,570     88,570

Dilutive
effect of
share option
scheme         1,921,684             2,228,876             2,380,289
             ----------- ---------- ---------- ---------- ---------- ----------

             
At end of     29,929,175 28,007,491 30,005,888 27,777,012 30,208,104 27,827,815
period



3.  Reconciliation of operating profit to net cash (outflow)/inflow from
    operating activities


                                6 months to 30   6 months to 30 12 months to 30
                                  October 2001     October 2000      April 2001
                                         £'000            £'000           £'000

Operating profit                           429            3,599           5,190
Depreciation                               475              274             632
Decrease/(increase in trading
positions                                  989          (5,080)         (1,889)
Decrease/(increase) in
debtors                                    431           14,413        (19,333)
(Decrease)/increase in
creditors                              (7,074)          (9,348)          27,786
                                   -----------      -----------    ------------
                                   
NET CASH (OUTFLOW)/INFLOW
FROM OPERATING ACTIVITIES              (4,750)            3,858          12,386
                                   -----------      -----------    ------------
                                   

4.      NET FUNDS AT THE END OF THE PERIOD


Bank balances                         7,027             7,627            13,754
Loan and overdraft                  (1,647)           (2,124)           (1,692)
                                   --------          --------          --------
                                      5,380             5,503            12,062
                                   --------          --------          --------


5.     COMBINED RECONCILIATION OF NET CASH FLOW AND ANALYSIS OF MOVEMENT IN THE 
       NET FUNDS

                     At 30 March 2001       Cashflow         At 31 October 2001
                                £'000          £'000                      £'000

Bank balances                  13,754        (6,727)                      7,027
Bank overdraft                (1,692)             45                    (1,647)
                     ----------------      ---------         ------------------
Total net funds                12,062        (6,682)                      5,380
                     ----------------      ---------         ------------------


6.     INVESTMENTS

The company is the beneficial owner of 500,000 London Stock Exchange ordinary
shares of 5p each, which have been included in the balance sheet at the cost
of £1 (2000: £1).


7.

The financial information for the year ended 30 April 2001 and the periods
ended 31 October 2000 and 2001 does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985.  Statutory accounts for the
year ended 30 April 2001 have been delivered to the Registrar of Companies.
These statutory accounts were audited by Deloitte & Touche and their report
thereon was unqualified.  Copies of the interim results are available, free of
charge to the public on any weekday at the registered office of the Company
(Beaufort House, 15 St Botolph Street, London EC3A 7QR) and at the offices of
the Company's financial adviser and stockbroker, ING Barings Limited, 60
London Wall, London EC2M 5TQ

Independent Review Report to Teather & Greenwood Holdings plc

We have been instructed by the Group to review the financial information for
the six months ended 31 October 2001 which compromises the profit and loss
account, the balance sheet and the cashflow statement and related notes 1 to
7. We have read the other information contained in the interim report and
considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the Directors. The Directors
are responsible for preparing the interim report in accordance with the
Listing Rules of the Financial Services Authority which require that the
accounting policies and presentation applied to the interim figures should be
consistent with those applied in preparing the preceding annual accounts
except where any changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of Group management and
applying analytical procedures to the financial information and underlying
financial data and, based thereon, assessing whether the accounting policies
and presentation have been consistently applied unless otherwise disclosed. A
review excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially less in scope than
an audit performed in accordance with United Kingdom auditing standards and
therefore provides a lower level of assurance than an audit. Accordingly, we
do not express an audit opinion on the financial information.


Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 October 2001.



Deloitte & Touche                                   14 December 2001
Chartered Accountants