Final Results

Evolution Group PLC
4 May 2001




                                           4 May 2001


                   The Evolution Group PLC ('Evolution')

          Preliminary Results for the year ended 31 December 2000


Key Financials



Group turnover (including Christows for 7 months)          £4.82 million
Profit on sale of investments                              £2.47 million
Operating loss                                             £0.03 million
Retained loss post exceptional items and tax               £28.00 million

Chairman's Statement

Review of the Year



This has been an extraordinary period for the Company, during which we have
seen violent swings in market sentiment towards the global technology sector.
During the year under review the Company raised £54 million in new equity and
invested in excess of £27 million in technology and internet related ventures.



Following the peak in the technology boom and in dramatically changing market
conditions, it quickly became apparent that the focus and disciplines required
to create real and sustainable shareholder value, as a technology investor,
had fundamentally changed. The Board took the decision in June 2000 to scale
back the Company's investment activities, to preserve shareholders' equity and
re-engineer our business model. At that stage, it was decided to develop the
Company into a regulated technology focused investment and advisory business.
The intention of this strategy was to build a modern consolidated technology
investment company and private client asset management business.



The first major step in this development was completed in November 2000 when
The eVestment Company plc acquired by way of merger the Christows group ('
Christows'), a Member of the London Stock Exchange. Christows has a private
client portfolio management service with significant assets under management
and also a successful Open Ended Investment Company ('OEIC') based in Dublin,
which manages four distinct OEIC products.



Following the merger with Christows and the change of name to EVC Christows
PLC, I was appointed Chief Executive of the Group in February 2001, as part of
the restructuring of the Group's senior management team.  The previous senior
management team has now relinquished all executive roles and the new team is
in place.  I firmly believe that the new management team has the necessary
skill-sets and experience to implement our growth strategy.



In March 2001, the Board announced the acquisition of Evolution Capital
Limited, a well-known and respected research and strategic advisory firm with
a strong franchise, focused in several new areas of technology. At that time,
it was proposed to change the name of the Company to The Evolution Group PLC.
This acquisition was the final stage of a stated strategy that has taken over
nine months to realise and provides our group with the skills, disciplines and
focused approach to deliver upon the above strategy. I am delighted to welcome
Richard Griffiths, James Kenny, and James Chilcott, the founders of Evolution
Capital Limited, onto the Board.



Exceptional Items



Your Board has decided to be prudent with respect to the original eVestment
portfolio. The provision against investments of £14.17 million indicated in
the trading statement issued on 22 December 2000 has now been increased to £
23.84 million. The reorganisations arising from the acquisitions of Christows
Limited and Capital Exchange Limited have led to a write-off of goodwill of £
4.91 million, whilst merger expenses of £0.67 million have also been
written-off. Total exceptional items in the year amount to £29.43 million.



Capital Structure



The capital structure of The Evolution Group PLC has, until recently, been
very complex given the size of the Company.  It was clear that the excessive
amounts of warrants and Further Subscription Rights in issue had become a
significant overhang in the capital structure of the Group and would continue
to be a complication whenever the Company undertook any form of corporate
action, and a hindrance to attracting new high calibre staff.  At the EGM on
26 March 2001 shareholders approved the early exercises of these dilutive
instruments in their entirety, the exercise period closing on 6 April 2001.
This was a critical action in developing a clear and presentable shareholding
structure, and in that spirit the decision was taken to consolidate the
shares. As we continue to build and execute our business model, I believe that
it is appropriate to make certain amendments to the Group's share option
scheme, including a meaningful expansion of the number of shares available in
the option pool.  The grant and general use of options will be a key element
used to attract, retain and motivate our key people and new hires and, as
such, shareholder approval is being sought at the forthcoming Annual General
Meeting to give effect to these changes.



Board Changes



There have been some major changes to the composition of your Board over the
past 12 months. Michael Read joined us as Chairman of Christows Limited in
February 2001 and brings with him a wealth of experience in private client
asset management. As mentioned above Richard Griffiths, James Kenny, and James
Chilcott have joined from Evolution Capital. Oliver Vaughan has stepped down
from Chairman to Non-Executive Director and John Gunn continues as a
Non-Executive director. I currently fulfil the roles of Chief Executive and
Chairman.  It is the Board's intention to search for a Non-Executive Chairman
in line with the Cadbury Report recommendations.



Outlook and prospects



Market conditions since December have been extremely challenging for our asset
management and stockbroking business. We are currently conducting a review of
this business and your Board will make the necessary adjustments to align the
infrastructure costs with the current market conditions. We are confident that
this can become a valuable and profitable business.



The firm belief of your Board is that there are still very high returns to be
achieved from the investment in and knowledge acquired from, focused,
well-researched private technology companies.  There is significant value in
such knowledge.  It is also our belief that the development of these early
stage companies in terms of corporate advisory and corporate finance,
potential fundraising efforts and analytical support, is crucial in adding
further value.  These activities are supported by a strong analytical team
with a rigorous process in a fully regulated environment.



The new name for your company reflects a new set of disciplined operating
standards, and describes the evolving nature of the group.



I firmly believe that The Evolution Group PLC is now extremely well positioned
with a strong balance sheet and the clear capability to deliver on the
strategy outlined above.  The disciplined bottom-up approach that is now being
employed within the company is crucial to the implementation of our targets.
Once again, the quality and attitude of people is the vital factor in
achieving success and I would take this opportunity to thank all our employees
for their endeavours in what has been a challenging year.



A.C.W. Snow

Chairman



4 May 2001

Consolidated Profit and Loss Account
for the year ended 31 December 2000


                                                 Year ended        Year ended
                                              31 December 2000    31 December
                                                                      1999
                                                 £'000     £'000  £'000   £'000
                                       Note
Turnover
  Continuing operations                          368.9            438.5
  Acquisitions                                  4451.6                -

                                                         4,820.5          438.5
Commissions payable                                    (1,492.5)         (53.5)

Gross profit                                             3,328.0          385.0

Administrative expenses                                (5,888.8)        (380.8)
Profit on sale of investments                            2,471.1          146.1
Other operating income                                      60.1           90.1

Operating (loss) / profit
  Continuing operations                        (358.6)            240.4
  Acquisitions                                   329.0                -

                                                          (29.6)          240.4
Write off of goodwill on
reorganisation
-continuing                                  (4,919.3)           (73.3)
Amounts written off investments
- continuing                                 (23,839.7)                -
Merger expenses - continuing                   (673.7)                -

Exceptional items                                      (29,432.7)         (73.3)

(Loss) / profit on ordinary activities
before interest                                        (29,462.3)          167.1
Interest receivable and similar income                   2,116.2          103.3
Interest payable and similar charges                       (9.7)              -

(Loss) / profit on ordinary activities
before taxation                                        (27,355.8)          270.4
Taxation                                                 (640.4)         (62.3)

(Loss) / profit for the year                           (27.996.2)          208.1
Dividends                                                      -         (80.0)

Retained (loss) / profit for the year                  (27,996.2)          128.1

Basic (loss) / earnings per ordinary     1
share                                                      (6.4)            0.2
                                                        

Diluted (loss) / earnings per ordinary   1
share                                                                       0.1
                                                                         

There were no recognised gains or losses other than the loss for the year.


Consolidated Balance Sheet

at 31 December 2000



                                                  31 December        31December
                                                         2000              1999
                                            Note        £'000             £'000

Fixed assets
Intangible assets                                           -             200.7
Tangible assets                                         633.7              19.3
Investments                                   2       4,912.6           2,862.9

                                                      5,546.3           3,082.9


Current assets
Debtors                                               1,786.2             407.7
Investments                                              12.1                 -
Cash at bank and in hand                             37,371.1             938.3

                                                     39,169.4           1,346.0


Creditors
Amounts falling due within one year                 (3,909.0)           (834.3)

Net current assets                                   35,260.4             511.7

Total assets less current liabilities                40,806.7           3,594.6

Creditors
Amounts falling due after more than one                     -            (14.5)
year

Net assets                                           40,806.7           3,580.1


Capital and reserves
Called up share capital                               7,742.4           1,192.0
Share premium                                        54,270.6           1,628.5
Merger reserve                                        6,030.3                 -
Profit and loss account                            (27,236.6)             759.6

Equity shareholders' funds                    5      40,806.7           3,580.1






Approved by the Board on 4 May 2001



A. Graham
Director



Consolidated Cash Flow Statement
for the year ended 31 December 2000


                                               Year ended        Year ended
                                            31 December 2000  31 December 1999
                                      Note     £'000    £'000    £'000    £'000

Net cash (outflow) / inflow from
operating activities                    3            (1,281.2)             218.6
                                    

Returns on investments and servicing
of  finance
Interest received                            2,116.2             103.2
Interest paid                                  (9.7)                 -
Income from fixed asset investments              0.2                 -

Net cash inflow from returns on
Investments and servicing of finance                  2,106.7             103.2

Taxation
Corporation tax paid                                  (241.6)            (59.2)

Capital expenditure and financial
investments
Sale of tangible fixed assets                    0.5               0.2
Purchase of shares in associate                    -              (9.6)
Purchase of tangible fixed assets            (342.8)              (0.5)
Purchase of fixed asset investments       (25,942.2)          (2,849.0)
Sale of fixed asset investments              3,419.2             815.9

Net cash outflow from capital
expenditure and financial investments                (22,865.3)        (2,043.0)

Dividends paid                                                           (80.0)

Acquisitions and disposals
Purchase of subsidiaries                     (387.3)                 -
Net cash acquired with subsidiaries            736.6                 -

                                                        349.3

Cash outflow before management of
liquid
  resources and financing                            (21,932.1)        (1,860.4)

Management of liquid resources
Decrease in short term deposits                         800.3           1,529.7

Financing
Issues of ordinary share capital                     59,062.9             (5.3)
Expenses of share issue                               (690.0)                 -
Lease repayments                                        (8.0)             210.0

Net cash inflow from financing                       58,364.9             204.7

Increase / (decrease) in cash in the    4            37,233.1           (126.0)
year


Notes

1.                  (Loss) / earnings per share

The calculation of the basic earnings per share is based on the profit on
ordinary activities after tax and on the weighted average number of ordinary
shares in issue during the year. The calculation of diluted earnings per share
is based on the basic earnings per share adjusted to allow for the issue of
shares on the assumed conversion of all dilutive options.

Reconciliations of the earnings and weighted average number of shares used in
the calculations are set out in the table below.


                       Year ended 31 December 2000  Year ended 31 December 1999
                                  Weighted                   Weighted
                                  average  Earnings          average
                                                                        Earnings
                                  number     per    Earnings  number       Per
                       Earnings   of        share               of      share
                                  shares   (pence)         £  shares
                              £                                         (pence)

Basic earnings
per share           (27,996,200) 437,384,198(6.40)  208,100 101,094,447    0.21
                                                                        
Dilutive effect                                           - 153,100,286
of securities
                                                          
Diluted earnings
per share                                           208,100 254,194,733    0.08
                                                                       

The earnings per share and numbers of shares shown above are prior to the
recent Share Capital Reorganisation.

2.  Fixed asset investments

                                     Listed         Unlisted     Total
                                      £'000            £'000     £'000
                                 
Cost:
At 1 January 2000                     332.2      2,530.7        2,862.9
Additions                           2,093.9     25,092.2       27,186.1
Acquired on acquisition                 7.3            -            7.3
Reclassification on becoming a            -       (203.5)        (203.5)
subsidiary
Disposals                            (135.0)      (965.5)      (1,100.5)
Reclassification                      134.8       (134.8)             -

At 31 December 2000                 2,433.2     26,319.1       28,752.3

Provisions
At 1 January 2000                         -            -              -
Increase in provisions                868.0     22,971.7       23,839.7

At 31 December 2000                   868.0     22,971.7       23,839.7         
                                     

Net Book Value
At 31 December 2000                 1,565.2      3,347.4        4,912.6
                                                         

At 31 December 1999                   332.2      2,530.7        2,862.9
                                               

Aggregate market value at 31        3,189.2
December 2000



Included in unlisted investments at 1 January 2000 is an investment in an
associate, Christows Holdings Limited (a company incorporated in England) of £
203,500. During the year the Group acquired the remaining issued share capital
of the company. The investment in associate was therefore reclassified as an
investment in subsidiary, and was eliminated on consolidation.



Unlisted investments include shares in companies traded on the Alternative
Investment Market at 31 December 2000, as well as shares not traded on a
recognised stock market on that date.

3.         Reconciliation of operating loss with net cash flow from operating
activities

                                     Year ended                      Year ended
                                    31 December                        31
                                           2000                   December 1999

                                         £'000                            £'000

Operating                                (29.6)                           240.4
(loss) /
profit
Profit on                             (2,471.1)                         (146.1)
sale of
investments
Increase in                              (12.1)                               -
current asset
investments
Profit on                                     -                             0.2
disposal of
fixed assets
Share of net                                  -                          (75.2)
profit of
associated
company
Fees paid for                                 -                          (36.0)
non cash
consideration
Depreciation                              152.6                               -
of tangible
fixed assets
Merger                                  (673.7)                               -
expenses
Goodwill                                      -                            15.2
amortised
(Increase) /                               30.1                         (237.5)
decrease in
other debtors
(Increase) /                             (31.8)                           (0.1)
decrease in
prepayments
Increase in                               103.7                               -
trade
creditors
Increase in                             1,393.9                           253.3
other
creditors
Increase in                               256.8                           204.4
accruals and
deferred
income

Net cash
(outflow) /
inflow from                           (1,281.2)                           218.6
operating
activities



4.  Reconciliation of net cash flow to movement in net funds
                                              Year ended             Year ended
                                             31 December            31 December
                                                    2000                   1999
                                                   £'000                  £'000

(Decrease) / increase in cash in                37,233.1                (126.0)
the year
Change in net debt                                 (8.0)                    5.3
Cash used to (decrease) / increase               (800.3)              (1,530.1)
liquid resources

Movement in net funds in the year               36,424.8              (1,650.8)
Net funds at the beginning of the                  918.9                2,569.6
year

Net funds at the end of the year
                                         37,343.7                918.8



5.  Reconciliation of movements in shareholders' funds
                                              Year ended             Year ended
                                             31 December            31 December
                                                    2000                   1999
                                                   £'000                  £'000

(Loss) / profit for the financial             (27,996.2)                  128.1
year
Issues of ordinary share capital                59,192.5                  330.0
Merger reserve                                   6,030.3                      -

Net increase in shareholders'                   37,226.6                  458.1
funds
Shareholders' funds at the                       3,580.1                3,122.0
beginning of the year

Shareholders' funds at the end of
the year                                 40,806.7              3,580.1



6. Financial Information

The financial information contained in this preliminary announcement does not
constitute the group's statutory accounts, as defined in section 240 of the
Companies Act 1985, for the years ended 31 December 2000 or 31 December 1999.
The accounts for the year ended 31 December 1999 have been delivered to the
Registrar of Companies.



The statutory accounts for the year ended 31 December 1999 have been reported
on by the company's auditors; the report on these accounts was unqualified and
did not contain any statement under section 237 (2) or (3) of the Companies
Act 1985. The financial information for the year ended 31 December 2000 has
been extracted from the statutory financial statements. These financial
statements have not yet been delivered to the Registrar of Companies, nor have
the auditors reported on them.



The accounts for the year ended 31 December 2000 will be posted to
shareholders in due course.  Further copies will be available from the
registered office of The Evolution Group PLC, 223a Kensington High Street,
London W8 6SG.