Final Results

Artisan (UK) PLC
11 July 2006



                                ARTISAN (UK) plc
                                     (AIM)

                   (House builder & business park developer)

               PRELIMINARY RESULTS FOR THE YEAR TO 31 MARCH 2006

                                   HIGHLIGHTS
Key points:

   •24% rise in pre tax profits to £2.6m (2005: £2.1m)

   •28% growth in earnings per share to 0.77p (2005: 0.60p)

   •Shareholders' funds increased by 21% to £19.1m

   •Residential land bank expanded by 21% during the financial year

   •Commercial development profitability level increased


Michael W Stevens commented:

'These results are again very pleasing. The Group has exceeded the market's
expectations despite a significant one off cost. The core businesses, our
business park and housebuilding subsidiaries, are performing well and we are
continuing to invest funds in the acquisition of development land. The resulting
increase in outlets will provide the basis for the growth of the Group. The
current year has started more positively in terms of sales reservations for
Rippon Homes, but margins are under increasing pressure in the absence of an
improvement in house prices in the regions in which we operate. Artisan (UK)
Developments, our commercial business park subsidiary, is also achieving success
in securing further outlets.'


'The resolution of the litigation with Infiniteland Limited in favour of Artisan
is a welcome relief and has provided some recovery of funds further contributing
to this year's excellent results.'


Enquiries:

Artisan (UK) plc                                     01480 436666
Chris Musselle, Chief Executive

Bankside Consultants                                 020 7367 8888
Simon Rothschild/Louise Mason                Mobile: [phone]

Brewin Dolphin Securities
Ifor Williams                                        0121 237 4960

                        
     
                              CHAIRMAN'S STATEMENT

I am pleased to report a further profitable year. We had viewed the 2005 result
as exceptional, in that it benefited from a large commercial sale late in the
financial year that contributed significant profits and brought forward profits
expected for the year to 31 March 2006. However, were it not for one-off
employment costs of £0.3m in the year, our operating profits in 2006 would have
exceeded those in 2005.

In the event operating profits were broadly stable at £2.6m (2005: £2.7m) whilst
pre-tax profits increased to £2.6m from last year's £2.1m.

A feature of the housing market is the potential for short term volatility, but
the Board believes the long term prospects for housebuilding are strongly
founded and because of this we continue to build up land reserves at Rippon
Homes.

The market for our commercial business parks continued to be active during the
year under review. The level of sales was slightly lower than expected due to
one potential sale, late in the year, not completing as expected. The prospects
for this area of the business remain positive for 2006/07.

The Infiniteland litigation, which has been running since 2002, has now been
concluded in our favour and some recovery of costs has been achieved. I welcome
this outcome and I trust this now marks the end of a period for the Company
where significant amounts of management time have been spent dealing with this
litigation.

Your Board is looking forward to 2006/07 with confidence, however we are
cautious in anticipating its prospects as we know that the housing market has
been volatile and could move against developers. Housing margins will continue
to be under pressure, whilst there is little positive move in house prices
achieved in our local markets in Nottinghamshire, Yorkshire and Lincolnshire.

We are determined to take the Group forward to a more robust market
capitalisation and believe the platform to achieve this growth is now firmly
founded. Our future progress will be led by organic growth in both divisions
supported where feasible by other opportunities. We will invest in further
outlets to provide more sales opportunities and therefore the investment in
additional land is of paramount importance to the Group. The investment in the
current year will provide the sales opportunities in future years.

With this in mind, your Board does not recommend a dividend for the current
year, so that funds for investment can be retained in the business.

These excellent results for the year, building on last year's success, have been
achieved with the support of all the employees in the business, and I should
like to acknowledge their efforts on behalf of the Board.

Michael W Stevens
Chairman

11 July 2006



                                OPERATIONAL REVIEW

The year to 31 March 2006 was a profitable year for house sales at Rippon Homes
with once again a strong bias towards exchanges in March. Residential sales for
this year were £19.4m (2005: £18.7m) although, reflecting the market conditions
experienced generally in the sector, margins were slightly reduced. The
improvement in turnover is derived from a change in the mix of sales to slightly
more expensive units.

Improved consumer confidence in the housing market in January 2006 meant that
sales were weighted towards the final month of the year which coincided with
production delivery of stock. We are improving the delivery of stock by
investing in a broader range of land to achieve, in so far as the market allows,
a more balanced flow of units to meet sales demand and over a wider geographic
area. Residential unit sales for the year were steady at 117 properties,
compared with 118 units in the previous year.

Demand may have slipped back from the initial excitement that heralded the New
Year but remains generally satisfactory although quite variable from week to
week as consumers seem to be easily distracted from the housing market. However,
as normal, the results for the year to 31 March 2007 will be reliant upon the
market demand in the key sales seasons of the Autumn and New Year. Rippon Homes
enjoys a low exposure to buy-to-let investors, and its houses are attractive to
the more traditional buyer. This means Rippon Homes does not operate on a high
percentage of forward-sales and, whilst it is therefore difficult to forecast
sales volumes, it does allow pricing to respond to market conditions and take
advantage of positive movements.

During the year, sales on the Group's business parks were £7.5m (2005: £8.6m).
Last year's turnover would have been equalled had it not been for the late
cancellation of one sale at the year end. Whilst the turnover may not have
grown, margins have improved, more than compensating for the lower turnover.

We have continued to invest in the housing land bank at Rippon Homes and during
the year we increased our landholdings by 21%, ending the year with 279 plots
owned or contracted (2005 - 230 plots). Future commercial development capacity
has been enhanced by the purchase of two new sites (at St Neots and St Ives) at
the end of the year and stands at over 15,700 square metres (2005: 15,500 square
metres) of net developable floorspace, which is approximately three years'
current production. A further site at Peterborough has been contracted since the
year end and new outlets continue to be sourced.

Through the year to 31 March 2006, the Group has demonstrated the ability to
return a good level of operating profits through its operations and enhance the
prospects for future years.

Chris Musselle
Chief Executive

11 July 2006

                            
                                FINANCIAL REVIEW

Results

The Profit before taxation for the year increased to £2.65m (2005: £2.14m) a
growth of 24% and Group operating profit has been broadly stable at £2.57m
(2005: £2.72m). Profit before tax has grown as a result of the improvement in
commercial trading margin and the exceptional revenue arising from the
successful conclusion to the litigation proceedings against Infiniteland
Limited.

Earnings per share have increased by 28% to 0.77p (2005: 0.60p)

Group turnover for the year to 31 March 2006 was £26.9m (2005: £27.3m). In the
year to 31 March 2005 the turnover had been enhanced by the sale of a large
block of commercial units at the year end masking the improvement in residential
turnover this year.

Summary of operating results
                         Residential       Commercial         Property         Central       Total
                                                              Dealing
Turnover        
  - 2006                      £19.4m          £7.5m                 -                -       £26.9m
  - 2005                      £18.7m          £8.6m                 -                -       £27.3m

Operating profit        
  - 2006                       £2.8m          £1.2m                 -           £(1.3)m       £2.7m
  - 2005                       £3.1m          £1.1m                 -           £(1.3)m       £2.9m   

The analysis of profit is before group management charges and excludes goodwill
amortisation.

The £1.3m of central expense comprises £1.0m of central overhead plus £0.3m of
one-off employment costs. In addition to this operating profit there is the
exceptional £0.4m recovery of costs together with associated interest of £0.1m
in respect of the successful conclusion of the litigation.
The taxation charge for the year is £0.4m resulting in an effective tax rate of
14.7% (2005: 18.6%) of profit before tax. The low effective rate of tax for the
year is due to the use of brought forward tax losses (including capital losses
in relation to the recovery of legal costs on litigation), adjustments in the
amount of provision carried in respect of prior years and claims for tax relief
for remediation of contaminated land.

Balance Sheet

The net assets of the Group have continued to grow with an increase from £15.7m
to £19.1m, the result of the retained profit for the year and the new share
issue. The Group has net borrowings of £6.6m (2005: £7.1m). The group had a
drawn bank debt of £20.0m (2005: £17.3m) resulting in substantial cash balances
being available. Our banking facility allows positive bank balances in the group
to be offset against loan drawdown for the purposes of interest calculation. The
available cash balance greatly assists flexibility in managing the business,
particularly as regards land purchases. The gearing ratio is now 34.4% (2005:
44.9%), reflecting the improved net assets and the funding available for
continued investment in trading stocks as your Board seeks to improve the depth
of the land bank in both operations. The improved banking facility finalised
after the year end is a three year rolling facility for a significantly
increased amount. As stated before, your Board expects to take advantage of the
opportunities to be gained by increasing this gearing ratio as worthwhile new
projects are identified in both residential and commercial activities.

Work in Progress

Work in progress has increased from £21.8m to £26.4m, reflecting the continued
investment in both residential and commercial land banks. The work in progress
is divided between our residential stocks of £18.6m (2005: £15.4m) and
commercial stocks of £7.8m (2005: £6.4m). We expect work in progress to increase
further as funds are invested in the land bank.

Share Capital

In the year there was one issue of 40m of new ordinary shares raising £1.1m.
This was in support of improved bank facilities, which have now been agreed. The
shares were issued to Aspen Finance Limited, a company in which your Chairman
Michael Stevens has a beneficial interest.

Non-Core Assets

Since the year end Artisan (UK) plc has disposed of its small residual
shareholding in Stratus Services Group Inc. There are no other non-core
holdings.

Litigation

The dispute with Infiniteland Limited over the sale of Bickerton Construction
Limited was finally resolved in November 2005 when the purchaser's application
to appeal to the House of Lords was refused by both the Court of Appeal and the
Appeals Committee of the House of Lords.

Also, as we previously reported, the liquidator of Bickerton Construction
Limited had made enquiries into management charges from Artisan around the time
of the sale of Bickerton. In a report to all creditors of Bickerton Construction
Limited, the liquidator has stated that no further investigations or actions are
to be carried out.

Chris Musselle
Chief Executive

11 July 2006

                                ARTISAN (UK) PLC

                          GROUP PROFIT & LOSS ACCOUNT
                        For The Year Ended 31 March 2006

                                                     31 Mar 2006       31 Mar 2005
                                                               £                £
TURNOVER                                              26,927,485        27,326,235

COST OF SALES                                        (22,361,527)      (22,612,319)
                                                     __________        __________
GROSS PROFIT                                           4,565,958         4,713,916

Administrative expenses                               (2,327,663)       (2,300,930)
Other operating income                                   336,351           309,133
                                                     __________        __________
OPERATING PROFIT                                       2,574,646         2,722,119

Loss on sale of group undertaking in prior year                -            (7,640)
Exceptional recovery of costs/(provision) in respect
of sale of group undertakings in previous years          405,108          (125,000)
(Provision)/profits arising on current asset              (4,000)           69,476
investments and loan notes
                                                     __________         __________
                                                       2,975,754         2,658,955

Interest payable                                        (448,686)         (536,538)
Interest receivable and similar income                   119,425            12,631
                                                     __________        __________
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION          2,646,493         2,135,048

Taxation                                                (388,972)         (397,565)
                                                     __________        __________
RETAINED PROFIT FOR THE YEAR                           2,257,521         1,737,483
                                                     __________        __________

Basic earnings per share                                    0.77p             0.60p
Diluted earnings per share                                  0.77p             0.60p

All recognised gains and losses in the current and prior year are included in
the profit and loss account.

All amounts relate to continuing activities.



                               
                              GROUP BALANCE SHEET

                              As at 31 March 2006

                                                   31 Mar 2006         31 Mar 2005
                                                             £                   £
FIXED ASSETS
Intangible fixed assets                              2,314,222           2,471,206
Tangible fixed assets                                  352,779             340,199
                                                    __________          __________
                                                     2,667,001           2,811,405
                                                    __________          __________
CURRENT ASSETS
Investments                                              1,000               5,000
Stocks and work in progress                         26,437,562          21,786,214
Debtors                                              5,542,920           6,791,533
Cash at bank and in hand                                 3,350               5,207
                                                    __________          __________
                                                    31,984,832          28,587,954
CREDITORS: Amounts falling due within one year      (8,568,360)         (8,094,628)
                                                    __________          __________
NET CURRENT ASSETS                                  23,416,472          20,493,326
                                                    __________          __________

TOTAL ASSETS LESS CURRENT LIABILITIES               26,083,473          23,304,731

CREDITORS: Amounts falling due after more           
than one year                                       (6,563,065)         (7,060,746)
Provisions for liabilities                            (447,745)           (528,843)
                                                    __________          __________
NET ASSETS                                          19,072,663          15,715,142
                                                    __________          __________
CAPITAL AND RESERVES
Called up share capital                              1,642,647           1,442,647
Share premium account                               10,356,668           9,456,668
Merger reserve                                         515,569             515,569
Capital redemption reserve                              91,750              91,750
Profit and loss account                              6,466,029           4,208,508
                                                    __________          __________
SHAREHOLDERS' FUNDS                                 19,072,663          15,715,142
                                                    __________          __________
                                                                       
                               

                           GROUP CASH FLOW STATEMENT

                        For The Year Ended 31 March 2006

                                                  31 Mar 2006        31 Mar 2005

                                                             £                 £
NET CASH INFLOW/(OUTFLOW) FROM OPERATING
ACTIVITIES                                              40,315         (2,121,632)

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest received                                      119,425             12,631
Interest paid                                         (447,680)          (489,149)
                                                      __________         ________
NET CASH OUTFLOW FROM RETURNS ON INVESTMENTS AND    
SERVICING OF FINANCE                                  (328,255)          (476,518)

TAXATION
UK Corporation tax paid                               (683,012)          (520,064)

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Sale of tangible fixed assets                            8,935              4,894
Purchase of tangible fixed assets                      (44,947)           (25,294)
                                                      __________         ________
NET CASH OUTFLOW FROM INVESTING ACTIVITIES             (36,012)           (20,400)

ACQUISITIONS AND DISPOSALS
Disposal of subsidiary undertaking in prior year       405,108             (7,640)
                                                      __________         ________
NET CASH INFLOW/(OUTFLOW) FROM ACQUISITIONS AND  
DISPOSALS                                              405,108             (7,640)
                                                      __________       __________
NET CASH OUTFLOW BEFORE USE OF LIQUID RESOUORCES
AND FINANCING                                         (601,856)        (3,146,254)

MANAGEMENT OF LIQUID RESOURCES
Sale of current asset investments                            -            477,966

FINANCING
Issue of ordinary share capital                      1,100,000                  -
Movement in borrowing                                 (497,681)         6,042,362
Capital element of hire purchase payments               (2,320)            (5,892)
                                                      __________       __________
NET CASH INFLOW FROM FINANCING                         599,999          6,036,470
                                                      __________       __________

(DECREASE)/INCREASE IN CASH                             (1,857)         3,368,182
                                                      __________       __________

Notes

1 EARNINGS PER SHARE
The basic earnings per share is calculated by dividing the profit for the
financial year attributable to shareholders by the weighted average number of
shares in issue.

The weighted average number of shares were

                                                  31 Mar 2006      31 Mar 2005
                                                  Number           Number

Basic weighted average number of shares           291,597,919      288,529,426

There were no dilutive potential ordinary shares in 2006 or 2005

2.      The financial information set out in this document, which summarises the
results of the group, does not amount to statutory accounts within the meaning
of Section 240 of the Companies Act 1985. The group's auditors have audited the
statutory accounts and have issued unqualified reports thereon within the
meaning of Section 235 and have not made any statement under Section 237(2) or
(3) of the Companies Act 1985 for the years ended 31 March 2006 and 31 March
2005.

3.      Statutory accounts for the year ended 31 March 2005 have been delivered
to the Registrar of Companies. Statutory accounts for the year ended 31 March
2006 will be delivered to the Registrar following the Annual General Meeting.

No changes have been made to accounting policies.

4.      The Annual General Meeting will be held at 28 Portland Place, London, W1
at 10.45am on 5 September 2006.

Copies of this announcement will be available to the public, free of charge,
from the offices of Brewin Dolphin Securities, Edmund House, 12-22 Newhall
Street, Birmingham, B3 3DB during normal office hours, with the exception of
Saturdays, Sundays and bank holidays, for 14 days from today.






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