Interim Results

Artisan (UK) PLC
29 November 2005


29 November 2005

                                ARTISAN (UK) PLC
                                        
                      UNAUDITED INTERIM STATEMENT FOR THE
                       SIX MONTHS ENDED 30 SEPTEMBER 2005

Artisan (UK) plc is an AIM listed company engaged in house building and 
commercial property development.

Highlights


   •Operating profit before exceptional costs of £1.32m (2004: £0.95m) - an
    increase of 40%
   •Pre tax profit of £1.29m up 51%. (2004: £0.86m)
   •Earnings per share at 0.38 pence per share (2004: 0.24 pence per share) -
    up 58%
   •Net assets per share of 5.8p (2004: 5.1p)
   •Net debt reduced by 37% to £5.36m (2004: £8.48m)
   •Commercial trading continues revival
   •Increase in residential turnover
   •Court case over Bickerton Construction Ltd successfully concluded


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

'I am very pleased that the management team has again delivered profit growth 
in both the residential and the commercial markets.'

'We are confident that the residential market retains strong fundamentals, 
despite its current volatility, and we will continue to invest in development 
land in line with our organic growth strategy.'

'Similarly, we intend to purchase further land for commercial development, 
both to replace stock traded and to be in a position to extend the range of our 
activity in that market.'

For further information please contact:

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

Seymour Pierce, Nominated advisers              020 7107 8000
Sarah Wharry

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

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


CHAIRMAN'S STATEMENT
The interim results for the six months to 30 September 2005 continue to
demonstrate profit improvement despite difficult market conditions in the
housing market. This is a testament to the expertise of our people and their
continuing focus on the core activities and matching customer demand.

Rippon Homes has performed well by concentrating on delivering an attractive
quality product in an environment where demand for new housing has continued to
fluctuate. We remain encouraged by a steady commercial market and by Artisan
(UK) Developments' ability to develop products that meet customers' demands.

Finally, it is with pleasure that I can report to shareholders that the
litigation brought by Infiniteland Limited and Mr John Aviss has been
successfully concluded with the appellants denied permission to appeal to the
House of Lords.

FINANCIAL REVIEW
The Group's turnover for the current period has increased to £12.9m (30
September 2004: £10.7m) as a result of improved trading in both the residential
and commercial markets. Rippon's turnover is up £1.7m, a 22% increase, and
commercial activity has increased by £0.5m, a 15% rise on the comparable period
to 30 September 2004.

Gross margins have only suffered slightly despite a competitive market in the
first half.

Operating profit has improved to £1.04m (2004: £0.95m) as a result of the
improved turnover and some modest control of overheads. However this 10 per cent
increase is after the exceptional costs relating to the departure of our former
Chief Executive which masks the underlying improvement in performance. Without
these costs the operating profit rose 40% to £1.32m (2004: £0.95m).

The balance sheet net assets rose to £16.8m (30 September 2004: £14.7m) and net
assets per share now stand at 5.8p per share (30 September 2004: 5.1p per
share).

Gearing at 30 September 2005 is 32% (30 September 2004: 58%). The Board expects
that this level of gearing will increase as our planned expenditure on the land
bank is incurred. Our banking facilities with The Royal Bank of Scotland plc
continue to be flexible and appropriately structured for a growing development
company. Following the improvement in our net asset position and profitability,
the Board has achieved some relaxation in the financial covenants, particularly
aimed at improving our ability to boost activity in Artisan (UK) Developments.

OPERATIONAL REVIEW
The 22% increase in housing turnover compared with the same period in 2004
followed a focus on better product planning and enhancing availability to ensure
that Rippon Homes was better positioned to meet such demand as there was in a
more depressed market. Unit sales amounted to 51 homes (2004: 50 units). Much
emphasis is now being placed on further developing our land stocks in order that
an increased number of outlets can be offered.
In the last interim report we stated that we were moving into new geographic
areas, notably developments just west of Nottingham. These have proved
successful and we have recently opened our first site in Yorkshire. With strong
encouragement from the Board, John Jones and his management team are working to
refine the strategy for organic growth. In particular Rippon Homes is seeking to
acquire land for key strategic sites in target areas. From these key sites,
smaller satellite sites become increasingly viable.

Management have responded to generally sluggish but changeable market conditions
with innovative marketing techniques, diligent sales management and well honed
negotiating skills. Working to a controlled and measured process, part exchanges
and sales assistance packages continue to be offered to customers.

Rippon Homes has varied its product mix to include smaller properties to reflect
the continued increase in single or re-established home occupancies and it is
expected that this will be reflected in sales in the second half of the current
financial year. Rippon Homes has remained successful in selling traditional 4
bedroom houses during the Interim period. However despite the market trend
towards smaller units in general, we believe that there will be a return to
larger, more valuable properties in due course and we continue to search for
sites for our premium Living Heritage product.

Artisan announced on 27 October 2005 that Rippon had acquired a significant
site, close to the centre of Mansfield, which will eventually be developed with
a minimum of 76 units. The company is also at an advanced stage in the
acquisition of a further significant site which fulfils our strategic and
commercial criteria.

Commercial business park turnover increased by 15% in the six months compared to
the same period last year. The impending changes in the SIPP regulations will
reduce the debt level available to SIPP schemes on their purchase of property.
As a consequence we have experienced interest by buyers seeking to complete
purchases prior to this change. Since the half year we have agreed two forward
sales for completion in the first half of 2006. This demonstrates the
construction team's ability to deliver buildings to a tight build schedule.
Despite the changes in SIPP legislation, we believe that SIPP investment in
trading premises will remain an important option for well funded entrepreneurs,
which are frequently customers of Artisan (UK) Developments.

In addition, we have seen some recovery in the industrial buildings market to
follow our success in the office market. To date this year we have completed the
sale of nine small industrial units, with one more sale agreed and only two left
to sell.

We are also commencing the construction of 10,000 sq ft of industrial space and
have agreed terms for a forward sale for half of the space.

LITIGATION
As recently announced, the House of Lords has refused leave to appeal to the
appellants in respect of the litigation between Artisan and Infiniteland
concerning the disposal of Bickerton Construction Limited. This was the expected
outcome for Artisan and clearly vindicates the actions of the Board in the
course of its dealings with the purchaser of Bickerton. Your Board will seek to
collect what is feasible in further sums due from Mr Aviss, although £456,000 in
respect of costs and interest has already been paid over and the costs element
recognised as an exceptional income below operating profit in the Interim
accounts to 30 September 2005. Any further collection of funds will enhance
profits. The time and effort devoted to this long running saga has been a
significant distraction. On behalf of shareholders I should like to record our
thanks to Chris Musselle who has borne the brunt of this case.

We have received no further communication from the liquidator of Bickerton
Construction Limited concerning his enquiries into management charges from
Artisan around the time of the sale of Bickerton. Provision continues to be made
for the costs of defending this enquiry.

FUTURE PROSPECTS
The outlook for residential sales is unpredictable. Our experience since the
year end has seen sales as difficult to conclude. We will continue to focus on
our strategy of providing product that is attractive to local demand, utilising
innovative marketing techniques and ensuring that sales are achieved in a manner
that protects gross margins. Despite these efforts, our trading performance over
the coming months is bound to remain vulnerable to volatile demand. January 2005
saw an uplift in sales activity and we look for this to be repeated in January
2006.

The market for commercial property in the areas in which we operate remains
reasonably steady, but further sales are still needed to meet year end targets.
We are now seeking further sites both to replace maturing sites and in new areas
to broaden the prospects of this division.

As regards dividends, I refer back to my comments in the 31 March 2005 Annual
Report and retain the view that greater shareholder returns will be achieved by
investment in the businesses rather than by way of distributions at this time.
Your board recognises that dividends do however remain of great importance to
shareholders.


MICHAEL W STEVENS
Chairman
29 November 2005


ARTISAN (UK) PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT

Six months to 30 September 2005

                                 Six months      Six months          Year
                                      ended           ended         ended
                               30 September    30 September      31 March
                                       2005            2004          2005

                                (Unaudited)     (Unaudited)     (Audited)
                                          £               £             £

Turnover                         12,881,041      10,741,460    27,326,235


Operating profit before
exceptional employment costs      1,324,162         945,725     2,722,119

Operating profit                  1,039,758         945,725     2,722,119

(Loss) on sale of group
undertaking in prior year                 -               -       (7,640)
Exceptional release of
provision/
                                    425,000               -     (125,000)
(provisions) in respect of
sale of group undertakings in
previous years

Exceptional profits arising on
current asset investments and             -          69,476        69,476
loan notes

                                  1,464,758       1,015,201     2,658,955


Interest payable                  (208,911)       (299,994)     (536,538)

Interest receivable and              37,448         140,624        12,631
similar income

Profit on ordinary activities     1,293,295         855,831     2,135,048
before taxation

Taxation on ordinary              (197,396)       (163,631)     (397,565)
activities


Retained profit for the period    1,095,899         692,200     1,737,483

Basic and diluted earnings per        0.38p           0.24p         0.60p
share


All amounts included in operating profit relate to continuing operations.

Operating profit has been arrived at after charging exceptional costs of
£284,404 (periods ended 30 September 2004 and 31 March 2005: £nil) in respect of
departure of the former Chief Executive.

ARTISAN (UK) PLC
CONSOLIDATED BALANCE SHEET

                                    As at           As at          As at
                             30 September    30 September       31 March
                                     2005            2004           2005
                              (Unaudited)     (Unaudited)      (Audited)
                                        £               £              £

Fixed assets

Intangible assets               2,392,714       2,549,698      2,471,206
Tangible assets                   350,040         344,087        340,199
                                2,742,754       2,893,785      2,811,405
Current assets

Investments                         5,000           5,000          5,000

Stocks and work in             24,514,487      24,006,169     21,786,214
progress
Debtors                         4,225,165       4,783,792      6,791,533
Cash at bank and in hand            3,005          21,265          5,207
                               28,747,657      28,816,226     28,587,954

Creditors

Amounts falling due within    (8,834,843)     (8,031,959)    (8,094,628)
one year

Net current assets             19,912,814      20,784,267     20,493,326

Total assets less current      22,655,568      23,678,052     23,304,731
liabilities

Creditors

Amounts falling due after
more than one year            (5,370,196)     (8,442,941)    (7,060,746)

Provisions for liabilities      (474,331)       (565,252)      (528,843)
and charges
Net assets                     16,811,041      14,669,859     15,715,142

Capital and reserves

Called up share capital         1,442,647       1,442,647      1,442,647
Share premium account           9,456,668       9,456,668      9,456,668
Merger reserve                    515,569         515,569        515,569
Capital redemption reserve         91,750          91,750         91,750
Profit and loss account         5,304,407       3,163,225      4,208,508
Equity shareholders' funds     16,811,041      14,669,859     15,715,142


ARTISAN (UK) PLC
CONSOLIDATED CASH FLOW STATEMENT

                                       Six months      Six months           Year
                                            ended           ended          ended
                                     30 September    30 September       31 March
                                             2005            2004           2005
                                      (Unaudited)     (Unaudited)      (Audited)
                                                £               £              £
Net cash inflow/(outflow) from
operating activities                    1,843,781     (4,414,581)    (2,121,632)

Returns on investments and
servicing of finance

Interest received and similar              37,448         140,624         12,631
income
Interest paid                           (195,062)       (299,994)      (489,149)
                                        (157,614)       (159,370)      (476,518)

Taxation

UK Corporation tax paid                 (395,030)               -      (520,064)

Capital expenditure and financial
investment

Purchase of tangible fixed assets        (25,469)         (5,023)       (25,294)

Sale of tangible fixed assets                   -           4,260          4,894

                                         (25,469)           (763)       (20,400)

Acquisitions and disposals

Disposal of subsidiary undertakings       425,000               -        (7,640)
in prior year

Net cash inflow/(outflow) before
use of liquid resources and             1,690,668     (4,574,714)    (3,146,254)
financing


Management of liquid resources

Sale of current asset investments               -         477,966        477,966
and loan stock


Financing

(Repayment)/advance of borrowings     (1,690,550)       7,483,934      6,042,362
Capital element of finance leases         (2,320)         (2,946)        (5,892)
                                      (1,692,870)       7,480,988      6,036,470

(DECREASE)/INCREASE IN CASH               (2,202)       3,384,240      3,368,182



ARTISAN (UK) PLC
NOTES TO THE CASH FLOW STATEMENT

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

                                Six months     Six months           Year
                                     ended          ended          ended
                              30 September             30       31 March
                                      2005      September           2005
                               (Unaudited)           2004      (Audited)
                                              (Unaudited)
                                         £              £              £

Operating profit                 1,039,758        945,725      2,722,119

Depreciation                        15,628         27,468         51,163

Amortisation                        78,492         78,492        156,984
Profit on disposal of fixed              -        (2,614)        (2,784)
assets
Increase in stock              (2,728,273)    (5,280,083)    (3,060,128)

Decrease/(increase) in           2,566,368         59,235    (1,948,506)
debtors
Increase/(decrease) in
creditors and provisions           871,808      (242,804)       (40,480)
Net cash inflow/(outflow)
from operating activities        1,843,781    (4,414,581)    (2,121,632)


(b) Reconciliation of net cash flow to movement in net debt

                                Six months      Six months            Year
                                     ended           ended           ended
                              30 September    30 September        31 March
                                      2005            2004            2005
                               (Unaudited)     (Unaudited)       (Audited)
                                         £               £               £

(Decrease)/increase in cash        (2,202)       3,384,240       3,368,182

Cash outflow/(inflow) from
decrease in debt and lease       1,692,870     (7,480,988)     (6,036,470)
financing

Cash inflow from decrease in
liquid resources                         -       (477,966)       (477,966)

Change in net debt resulting
from cash flows                  1,690,668     (4,574,714)     (3,146,254)

Transfer in respect of loan
notes redeemed with current              -         236,453         236,453
asset investments

Profit on sale of current                -          69,476          69,476
asset investments


Opening net debt               (7,052,859)     (4,212,534)     (4,212,534)

Closing net debt               (5,362,191)     (8,481,319)     (7,052,859)


(c) Analysis of net cash and debt

                               At          Cash             At
                         31 March          Flow             30
                             2005                    September
                                                          2005
NET CASH                        £             £              £

Cash at bank                5,207       (2,202)          3,005
                            5,207       (2,202)          3,005


DEBT

Finance leases            (2,320)         2,320              -
Debt due after more
than one year         (7,060,746)     1,690,550    (5,370,196)

Current asset               5,000             -          5,000
investment

Net debt              (7,052,859)     1,690,668      5,362,191



NOTES TO THE INTERIM STATEMENT

1. The interim financial information has been prepared on the basis of the 
accounting policies set out in the Group's 2005 statutory accounts to 31 March 
2005. The interim figures have not been audited. The interim financial statement 
does not constitute statutory accounts within the meaning of Section 240 of the 
Companies Act 1985 (The 'Act'). Comparative financial information for the 12 
months ended 31 March 2005 has been extracted from the statutory accounts for 
the period which have been delivered to the Registrar of Companies and upon 
which the auditors gave an unqualified report, with no statement under 
Section 237(2) or (3) of the Act.

2. The taxation charge for the 6 months has been calculated at an effective 
rate of 15.3% due to the availability of trading and capital losses brought 
forward to offset against profits of the current period (30 September 2004: 
19.1%).

3. The calculation of earnings per share is based on the profit on ordinary 
activities after taxation and 288,529,426 (30 September 2004: 288,529,426) 
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 twelve 
months ended 31 March 2005 was 288,529,426.

There are no potentially dilutive shares in 2005 and 2004.

4. The Board has decided that there will be no interim dividend.

5. The interim statement was approved by the Board of Directors on 29 November 
2005. 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, Mace House, Sovereign Court, Ermine Business Park, 
Huntingdon, Cambridgeshire, PE29 6XU.


NOMINATED ADVISER                      PRINCIPAL BANKERS

Seymour Pierce                         Royal Bank of Scotland plc
3 Queen Victoria Street                10 St Peter's Street
London                                 St Albans
EC4N 8EL                               AL1 3LY

STOCKBROKER                            SOLICITORS

Seymour Pierce                         Thomson Webb & Corfield
3 Queen Victoria Street                16 Union Road
London                                 Cambridge
EC4N 8EL                               CB2 1HE

AUDITORS                               SOLICITORS

BDO Stoy Hayward LLP                   Simmons & Simmons
8 Baker Street
London                                 CityPoint, One Ropemaker Street
W1U 3LL                                London
                                       EC2Y 9SS

FINANCIAL PR                           REGISTRAR

Bankside Consultants                   Capita Registrars
1 Fredericks Place                     34 Beckenham Road
London                                 Beckenham
EC2R 8AE                               Kent
                                       BR3 4TU

                                
                                Artisan (UK) plc
     Registered office: Mace House, Sovereign Court, Ermine Business Park,
                      Huntingdon, Cambridgeshire, PE29 6XU
                 www.artisan-plc.co.uk [e-mail]
                 Telephone [phone] Facsimile 01480 436231
                             Registered No. 3630998







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