Interim Results

Artisan (UK) PLC
06 March 2008



                                ARTISAN (UK) PLC
                                        
                    UNAUDITED INTERIM STATEMENT FOR THE SIX
                          MONTHS ENDED 31 DECEMBER 2007

London, 6 March 2008: Artisan (UK) plc, the AIM listed house builder, commercial 
property developer and property investor, announces its unaudited interim 
results for the six months ended 31 December 2007.

  • Trading at commercial property development subsidiary robust over the
    period
  • Investment property division delivering first investments
  • Rippon Homes' sales down significantly due to national trading conditions
    and results suffering from reduced margin
  • The Board is declaring a dividend of 1.2p per ordinary share, to be paid
    on 18 April 2008 to those on the register on 25 March 2008

Michael W. Stevens, Chairman of Artisan (UK) plc commented,

'In common with others in the sector, Artisan's housebuilding subsidiary has 
been impacted by the slowdown in the housing market.  However the commercial 
development arm has continued to perform well and property investment has had a 
positive start.'

'Despite the downturn in housebuilding sales and the pressure on margins, the 
Board is confident that the trading divisions are well structured to respond to 
market conditions and well positioned to benefit swiftly from any improvement in 
trading conditions.'

For further information please contact:

Artisan (UK) plc
Chris Musselle              Chief Executive        01480 436666
                                                   [e-mail]

Brewin Dolphin Securities   Nominated advisers     0845 2708613
Limited
Andrew Kitchingman

Bankside Consultants        Financial PR advisers  020 7367 8888
Simon Rothschild                                   07703 167065

Company website: www.artisan-plc.co.uk


CHAIRMAN'S STATEMENT

Trading
The Group's results for the six months to 31 December 2007 show a turnover of
£10.6m (30 September 2006; £15.8m) and an operating profit of £0.7m (30
September 2006; £1.3m). The profit before tax is £0.1m (30 September 2006;
£1.0m)

Shareholders should note that the comparative used in the accounts is the six
months to 30 September 2006, which follows from the change in the year end to 30
June. As such it is of limited value in comparing the performance of the Group.

The Board is declaring a dividend of 1.2p per ordinary share, to be paid on 18
April 2008 to those on the register on 25 March 2008.

The commercial division, Artisan (UK) Developments, has performed well
throughout the period due to the revenue generated by forward sales secured in
the previous accounting period. Through careful control of build activities, the
construction team has delivered returns in excess of those expected on the
development of buildings. Whilst forward sales activity had been expected to be
the major contributor to revenue in the period, some stock sales were also in
the budget. However as a result of uncertainty in the markets and tightening
credit conditions, new sales and stock sales were more difficult than expected
to secure. Nevertheless I am very pleased with the contribution made by this
division. Its turnover of £3.7m (30 September 2006; £4.5m) does not include the
build value of the properties in the investment division, a service provided by
the developments construction team. Before allocation of central management
charges the commercial division contributed £859,000 (30 September 2006;
£633,000) of operating profit to the group.

The investment property division has now seen the first two buildings move to
completion. The first of these was completed and fully occupied prior to the
period end. This building is partially occupied by the Group as its new
headquarters. A satisfactory valuation in excess of management's original
estimate has contributed towards a total revaluation gain of £316,000. Of this
total the third party occupied premises provide the revaluation surplus of
£222,000 (30 September 2006; £nil) reflected in the Income Statement for the
period. The Group expects to recognise revaluation surplus on the second
investment property in the second half of the year. The Group had also been
expecting to recognise further surplus on investment land, but following a
detailed assessment of the International Accounting Standards, now recognise
that it would not be appropriate to recognise this gain in the Group results.

Rippon Homes, our residential division, has experienced a much more difficult
trading period. A lack of consumer demand in the East Midlands and Yorkshire has
resulted in fewer sales than targeted. House prices have been relatively static
and Rippon Homes has actively pursued sales though increasing marketing spend
and providing sales incentives, as have our competitors in the region. Potential
purchasers, faced with a wide choice of available product in the market, have
proven less willing to commit to an early purchase. Instead the trend has been
for a preference to see the finished building before committing to a purchase.
This has resulted in the need to provide greater levels of finished stock. The
carefully managed part-exchange programme has accounted for a significant
proportion of Rippon's sales. Whilst there is a cost in managing this programme,
it is broadly comparable to the level of incentive provided to customers not
requiring the part exchange facility. A consequence of lower sales is a reduced
efficiency in the division and margins have been affected. Turnover of £6.9m (30
September 2006; £11.3m) contributed an operating profit before central
management charges of £153,000 (30 September 2006; £1,115,000).

Balance Sheet
In November 2007 we concluded negotiations to improve our banking facilities. In
addition to reducing the interest rate to the Group on development funding, a
separate facility for the investment properties was put in place. The investment
property facility was drawn in February 2008 when both investment properties had
been occupied. Currently the facility has funds available for further investment
in land, stocks and work in progress (WIP). The Board, recognising the uncertain
trading conditions, has increased its targeted level of headroom to ensure a
generous level of liquidity is maintained.

WIP has continued to be increased through both the established land purchase
programme and development activity. In response to lower than expected sales,
the Board has restricted further land commitments, and these will be incurred
only as further sales are achieved. I feel that this approach is a prudent
response to the prevailing market conditions

Outlook

Both the residential and commercial divisions have seen better trading
conditions in 2008. The improvement in the residential marketplace began towards
the beginning of January 2008. However the Board believes that the market is
still fragile, with demand derived from customers who need to find a new
property rather than merely 'trading up' or to increase individuals' exposure to
investment in residential property. The commercial division has seen an
improvement in February 2008 and has secured reservations on stock properties.
Well funded customers with a business requirement seem to have returned to the
market to some degree. Those customers who have a greater reliance on third
party funding are still struggling to assemble finance.

A further consequence of market conditions, particularly in the residential
division, is that staggered build programmes have impacted on development costs;
unless there is an improvement in selling prices and volume, there will be a
reduction in margins in future trading periods as these costs continue to work
through. The Group has taken steps to reduce costs where possible and will
continue to keep this important issue under review, managing our sourcing and
resources to the expected trading environment. Whilst the increased costs will
affect future profitability, the Board are confident that the trading divisions
are well structured to respond to the difficult conditions while at the same
time being prepared for improvements in the market.

MICHAEL W STEVENS
Chairman
6 March 2008


ARTISAN (UK) PLC
CONSOLIDATED INCOME STATEMENT
SIX MONTHS TO 31 DECEMBER 2007

                                 Unaudited       Unaudited         Audited
                                Six months      Six months       15 months
                                     ended           ended           ended
                               31 December    30 September         30 June
                                      2007            2006            2007
                                         £               £               £

Revenue                         10,620,644      15,757,319      41,032,156
Cost of sales                  (9,130,498)    (13,727,141)    (35,093,001)

Gross profit                     1,490,146       2,030,178       5,939,155
Other operating income             182,465         160,044         410,264
Administrative expenses        (1,191,000)       (921,586)     (2,913,381)

                                   481,611       1,268,636       3,436,038


Revaluation surplus on          
investment properties              222,280               -         261,684 

Operating profit                   703,891       1,268,636       3,697,722                 


Finance income                       3,755           8,147          18,829
Finance expense                  (627,824)       (300,568)       (933,642)


Profit before taxation              79,822         976,215       2,782,909

Tax expense                              -       (266,839)       (671,032)


Profit for the period               79,822         709,376       2,111,877

Basic and diluted earnings per     
share                                0.97p           8.64p          25.73p


ARTISAN (UK) PLC
CONSOLIDATED BALANCE SHEET
AT 31 DECEMBER 2007

                                 Unaudited      Unaudited        Audited
                                     As at          As at          As at
                               31 December   30 September        30 June
                                      2007           2006           2007
                                         £              £              £
ASSETS

Non-current assets
Intangible assets                2,454,760      2,454,760      2,454,760
Investment properties            3,192,985              -      1,515,897
Property, plant and              1,001,319        394,722        437,058
equipment Other receivables        116,667              -              -

                                 6,765,731      2,849,482      4,407,715
Current assets
Inventories                     42,185,233     33,962,248     34,792,561
Trade and other receivables      1,173,519      1,105,365      1,478,042
Cash and cash equivalents            1,169          3,526          1,126

                                43,359,921     35,071,139     36,271,729


Total assets                    50,125,652     37,920,621     40,679,444



LIABILITIES

Non-current liabilities
Interest bearing loans and   
borrowings                    (20,317,428)   (10,309,046)   (10,752,945)

                              (20,317,428)   (10,309,046)   (10,752,945)
Current liabilities
Trade and other payables       (8,374,508)    (7,348,093)    (8,098,715)
Current tax provisions            (67,741)      (272,358)      (523,527)
Provisions                       (444,072)      (444,072)      (444,072)

                               (8,886,321)    (8,064,523)    (9,066,314)


Total liabilities             (29,203,749)   (18,373,569)   (19,819,259)

Net assets                      20,921,903     19,547,052     20,860,185



EQUITY ATTRIBUTABLE TO THE
EQUITY HOLDERS OF THE
PARENT COMPANY

Called up share capital          1,642,650      1,642,647      1,642,650
Share premium account           10,356,683     10,356,668     10,356,683
Merger reserve                     515,569        515,569        515,569
Capital redemption reserve          91,750         91,750         91,750
Revaluation reserve                 93,590              -              -
Retained earnings                8,240,726      6,940,418      8,272,598
Own shares                        (19,065)              -       (19,065)

Total equity                    20,921,903     19,547,052     20,860,185



ARTISAN (UK) PLC
CONSOLIDATED CASH FLOW STATEMENT
SIX MONTHS TO 31 DECEMBER 2007

                                       Unaudited       Unaudited        Audited
                                      Six months      Six months      15 months
                                           ended           ended          ended
                                     31 December    30 September        30 June
                                            2007            2006           2007
                                               £               £              £
Cash flows from operating activities
Cash used by operations              (6,330,823)     (3,079,129)     (2,330,514)
Finance income received                    3,755           8,147          18,829
Finance costs paid                     (588,107)       (285,155)       (898,818)
Tax paid                               (455,786)       (333,001)       (486,025)

Net cash used in operating activities (7,370,961)    (3,689,138)     (3,696,528)

Cash flows from investing activities
Purchase of property, plant and        
equipment                               (36,106)        (61,360)       (145,850)
Capital expenditure on investment    
properties                           (2,034,946)              -        (238,767)
Proceeds from sale of property,             
plant and equipment                          553           3,384           5,163
Proceeds from sale of current            
asset investment                               -           1,309           1,309

Net cash used in investing        
activities                           (2,070,499)        (56,667)       (378,145)

Cash flows from financing activities
Dividends paid                         (122,980)               -        (98,384)
Proceeds from the issue of                  
ordinary share capital                         -               -              18
Purchase of own shares                         -               -        (19,065)
Movement in borrowings                 9,564,483       3,745,981       4,189,880

Net cash from financing activities     9,441,503       3,745,981       4,072,449

Net increase/(decrease) in cash
and cash equivalents                          43             176         (2,224)
                                              
Cash and cash equivalents at the
beginning of the period                    1,126           3,350           3,350
                                    
Cash and cash equivalents at the     
end of the period                          1,169           3,526           1,126




ARTISAN (UK) PLC
NOTES TO THE INTERIM STATEMENT

1. BASIS OF PREPARATION

This consolidated interim financial information in this condensed report is
prepared on the basis of the accounting policies set out in the 2007 annual
report and accounts and using accounting policies consistent with International
Financial Reporting Standards ('IFRS') as endorsed by the European Union.

The endorsed IFRS that will be effective (or available for early adoption) in
the financial statements for the year ending 30 June 2008 are still subject to
change and to additional interpretation and therefore cannot be determined with
certainty. Accordingly, the accounting policies for the period will only be
determined finally when the consolidated financial statements are prepared for
the year ending 30 June 2008.

The interim financial information for the 6 months ended 31 December 2007 and 30
September 2006 has neither been audited nor reviewed pursuant to guidance issued
by the Auditing Practices Board, and does not constitute statutory accounts as
defined in section 240 of the Companies Act 1985. Comparative financial
information for the 15 month period ended 30 June 2007 has been derived from
information extracted from the statutory accounts for that period. The 2007
annual report and accounts, which received an unqualified opinion from the
auditors, did not include any reference to matters to which the auditors drew
attention to by way of emphasis without qualifying the report, and did not
contain a statement under section 237(2) or (3) of the Companies Act 1985, have
been filed with the Registrar of Companies.

As permitted, the group has not applied IAS 34 'Interim Reporting' in preparing
this interim report.

2. ACCOUNTING POLICIES

The interim financial information has been prepared by applying the accounting
policies and presentation that were applied in the preparation of the Group's
published consolidated financial statements for the period ended 30 June 2007,
except for the following:

    1. An addition to the revenue accounting policy to reflect the fact that
    rental income on investment properties is being received in the period for 
    the first time. The amended revenue accounting policy is as follows:

Revenue

Revenue is stated exclusive of VAT and represents the value of work done and
properties sold, excluding part exchange properties which are included within
cost of sales. Revenue consists of sales of trading and development properties,
together with gross rental income receivable on investment properties. Revenue
does not include the sales of investment properties, for which the profits or
losses on sale are shown separately, and rents receivable on development
properties, which are shown as other operating income.

In respect of sales of property, revenue and profit are recognised upon legal
completion of the legal transfer of title to the customer. Profit or loss is
calculated with reference to each site or phase within a site.

Profit is recognised on long term work in progress contracts if the final
outcome can be assessed with reasonable certainty, by including in the income
statement revenue and related costs as contract activity progresses. Revenue is
calculated as that proportion of total contract value which costs to date bear
to total expected costs for that contract. Losses are recognised as soon as they
are foreseen.

2. ACCOUNTING POLICIES (Continued)

   2. An addition to the property, plant and equipment note to include the
   following in respect of an owner occupied property occupied by the Group 
   for the first time in the period:

Property, plant and equipment

   Owner occupied property is stated at fair value with changes in fair value
   recognised directly in equity.

3. SEGMENTAL ANALYSIS

The Group operates through its three principal business segments: Residential,
Commercial and Property Investment. The Group does not operate outside the
United Kingdom. A summary of the segmental trading results is shown below:

                       Residential Commercial   Property     Central      Total
                                                investment
                                 £          £           £        £          £
Revenue
Six months ended 31    
December 2007             6,930,023   3,689,246     1,375        -    10,620,644
Six months ended 30     
September 2006            11,293,518  4,463,801        -         -    15,757,319
15 months ended 30   
June 2007                 26,961,175  14,070,981       -         -    41,032,156

Operating profit before
central management charges
Six months ended 31       
December 2007               153,010    859,286   204,071    (512,476)    703,891
Six months ended 30   
September 2006            1,115,409    633,472        --    (480,245)  1,268,636
15 months ended 30 June 
2007                      2,575,694   2,142,266  261,580  (1,281,818)  3,697,722

4. TAXATION

The taxation charge for the 6 months has been calculated at an expected annual
effective rate of Nil% (30 September 2006 27.3%) as the result of the
anticipated use of brought forward capital and trading losses.

5. DIVIDENDS

The Board has decided that subject to shareholder approval of the resolutions at
the forthcoming Extraordinary General Meeting, there will be an interim dividend
of 1.2p per ordinary share. This will amount to approximately £98,500 and will
be paid on 18 April 2008 to shareholders on the register as at 25 March 2008.

6. EARNINGS PER SHARE

The calculation of earnings per share is based on the profit on ordinary
activities after taxation and 8,198,658 (30 September 2006: 8,213,236) ordinary
shares being the weighted average number of shares in issue during the half
year. The weighted average number of shares in issue during the 15 months ended
30 June 2007 was 8,208,026. There are no potentially dilutive shares in 2007 and
2006.

7. INVESTMENT PROPERTIES

                                Six months      Six months     15 months
                                     ended           ended         ended
                               31 December    30 September       30 June
                                      2007            2006          2007
                                         £               £             £
Fair value
At beginning of period           1,515,897               -             -
Additions 
- transfer from trading stock            -               -       804,218
- capital expenditure            1,923,718               -       449,995
Transfer to property, plant
and equipment in respect of
owner occupied property          (468,910)               -             -
                                 2,970,705               -     1,254,213
Revaluations included in      
income statement                   222,280               -       261,684
At end of period                 3,192,985               -     1,515,897
Historical cost of investment    2,709,021               -     1,254,213
properties

The Group's first completed investment property was tenanted in December 2007.
The valuation on this property has been prepared for the directors by Savills (L
&P) Ltd and their valuation is reflected in the above summary. Part of the first
investment property has now been occupied by the Group and accordingly the cost
of this part of the property has been transferred to property, plant and
equipment.

8. RECONCILIATION OF CHANGES IN EQUITY

                                Six months      Six months     15 months
                                     ended           ended         ended
                               31 December    30 September       30 June
                                      2007            2006          2007
                                         £               £             £

Opening equity                  20,860,185      18,813,782    18,813,782
Profit for the period               79,822         709,376     2,111,877
Dividends paid                   (122,980)               -      (98,384)
Issue of shares                          -               -            18
Purchase of own shares                   -               -      (19,065)
Credit to retained earnings in     
respect of employee share schemes   11,286          23,894        51,957                    
Revaluation surplus on owner       
occupied property recognised
in equity                           93,590               -             - 
Closing equity                  20,921,903      19,547,052    20,860,185


9. CASH USED BY OPERATIONS

                               Six months      Six months      15 months
                                    ended           ended          ended
                              31 December    30 September        30 June
                                     2007            2006           2007
                                        £               £              £

Profit before taxation             79,822         976,215      2,782,909
Adjustments for:
Profit on sale of current           
asset investment                        -           (309)          (309)
Depreciation                       34,073          18,323         59,598
Share based payment charge         11,286          23,894         51,957
Profit on disposal of
property, plant and equipment        (281)         (2,290)        (3,190)                                
Increase in inventories        (7,392,672)     (3,794,450)    (5,428,981)
Decrease/(increase) in trade    
and other receivables              187,856         136,720      (235,957)          
Increase/(decrease) in trade       
and other payables and provisions  347,304       (729,653)      (205,997)                      
Decrease in provisions                  -               -         (3,673)
Revaluation surplus on        
investment properties            (222,280)              -       (261,684)
Finance income                    (3,755)          (8,147)       (18,829)
Finance expense                   627,824         300,568         933,642
Cash used by operations       (6,330,823)      (3,079,129)    (2,330,514)

10. APPROVAL OF INTERIM STATEMENT

The interim statement was approved by the Board of Directors on 5 March 2008.
Copies are being sent to all shareholders. Copies of this statement will be
available to members of the public, free of charge, from the Company's
registered office, Vantage House, Vantage Park, Washingley Road, Huntingdon,
Cambridgeshire, PE29 6SR.




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