Final Results

LONDON FINANCE & INVESTMENT GROUP P.L.C.                    

Preliminary announcement of unaudited results for the year ended 30th June 2002

Introduction

As an investment company our short-term results are very heavily influenced by
overall stock market performance. The results for the year are disappointing
but we continue to believe that a combination of Strategic Investments and a
General Portfolio will enable us to achieve real growth in shareholder value
over the longer term. Strategic Investments are significant investments in
smaller UK quoted companies and these are balanced by a General Portfolio which
mainly consists of investments in major U.K. and European equities.

At 30th June 2002, we held three Strategic Investments in which we have board
representation: our associated company Western Selection P.L.C., Marylebone
Warwick Balfour Group Plc and Megalomedia plc.

Results

The Group made a profit before tax for the year of £60,000 compared with £
1,060,000 last year. These figures include our share of Western Selection
P.L.C.'s exceptional profits of £219,000 this year and £805,000 last year. Our
operating profits have declined by £329,000 to £27,000 as a result of lower
dividend income and provisions required to mark down General Portfolio
investments from cost to market value. Our profit after tax and minority
interest was £44,000 (2001: £1,045,000) giving earnings per share of 0.2p
(2001: 4.1p).

As explained further below, our dividend income from Strategic Investments has
fallen substantially and we do not anticipate that it will increase in the
short term, nor do we expect a significant increase in dividend income from our
General Portfolio investments. We have, therefore, decided to recommend to
shareholders a reduced dividend for the year of 0.8p per share (2001: 1.2p) so
as to match anticipated net cash inflows more closely with payments to
shareholders.

Our net assets per share have fallen 31% to 37.2p at 30th June 2002 from 54.3p
last year. Our Strategic Investments have fallen in value by 36% and our
General Portfolio by 23%. This compares with falls in the FTSE 100 index of
17.5% and in the FTSE Eurotop 100 index of 24.8% over the year.

Strategic Investments

Western Selection P.L.C. ('Western')

The Company owns 40.48% of the issued share capital of Western.

On 30th July 2002, Western announced a profit after tax and exceptional items
of £277,000 for its year to 30th June 2002, a fall in earnings per share to
0.6p from 4.6p, and a 8.7% increase in dividend to 0.50p (2001 - 0.46p).
Western's net assets at market value were £9,628,000, equivalent to 22.1p per
share, a fall of 27% from 30.2p last year, mainly due to falls in the share
price of Creston plc and The Sanctuary Group plc. Extracts from Western's
announcement on its strategic investments is set out below.

     Creston plc                                                             
                                                                             
     Creston's objective is to build the company both organically and through
     acquisition to become a substantial marketing services group, operating 
     in the U.K. and Europe.                                                 
                                                                             
     The results for the year to 31st March 2002 show a profit of £138,000.  
     The directors of Creston believe the outlook remains positive and are   
     looking to make further acquisitions during the coming year.            
                                                                             
     The Sanctuary Group plc                                                 
                                                                             
     Sanctuary is a diversified international media group specialising in the
     ownership and commercial exploitation of Intellectual Property Rights   
     (IPR) within the field of entertainment.                                
                                                                             
     Sanctuary's last published results were for six months to 31st March    
     2002 and showed a profit of £2,912,000 (31st March 2001 - £2,324,000).  
                                                                             
     Swallowfield plc                                                        
                                                                             
     Swallowfield has a long history of developing and producing aerosol,    
     cosmetic and toiletry products stretching back to 1950. It is one of    
     Europe's premier contact manufacturers to many leading brands.          
                                                                             
     Swallowfield has changed its year end from 31st December to 30th June   
     and its latest published results are for the interim 12 month period to 
     31st December 2001 which showed a profit of £1,839,000 (2000 - £        
     1,823,000).                                                             
                                                                             
     Doctors Direct plc                                                      
                                                                             
     Doctors Direct recently announced that it was seeking to raise £        
     1,000,000 and apply for its shares to be traded on OFEX. We have        
     committed to invest £350,000 in this fund raising. Further details of   
     Western's involvement in Doctors Direct are included in their           
     Prospectus.                                                             

Marylebone Warwick Balfour Group Plc ('MWB')

On 27th March 2002, MWB announced its interim results for the six months ended
31st December 2001 disclosing losses of £12.5 million before exceptional,
principally non-cash write-downs of £92 million.

As a result of the worsening business environment MWB concluded that the best
way forward was to mature and realise the full value of its assets and
businesses through an orderly disposal programme. Realisations have commenced
and MWB recently announced the profitable sales of properties in London and
Teesside. MWB intends to implement a cash distribution programme which should
be completed by December 2005 and the company is targeting gross cash returns
in excess of 200p per share. In view of the changed business plan the company
will not be paying regular dividends but proposes to return capital to
shareholders in a tax efficient manner.

Megalomedia plc ('Megalomedia')

Subsequent to our year end, on 22nd July 2002, Megalomedia announced that it
had entered into conditional agreements to acquire the issued share capital of
Memory Lane Cakes Limited, a supplier of boxed ambient cakes to most of the
UK's major supermarket chains, for £9.5 million to be satisfied by payments of
£8.5 million in cash and the issue of 3,333,333 new ordinary shares.

This acquisition has been approved by Megalomedia's shareholders and, subject
to the fulfilment of certain requirements, it is expected that completion will
take place by 30th August 2002. Following completion, the company will be known
as Finsbury Food Group plc and will be repositioned as a speciality foods
business focused on niche markets. Its directors believe that opportunities
exist to acquire and develop profitable niche businesses.

Merrydown plc ('Merrydown')

We have re-classified Merrydown as a General Portfolio Investment. Subsequent
to the year-end, because we have not been able to reconcile management's'
objectives for the company with our view of its future development, we sold all
of our investment in Merrydown for £663,000, realising a profit of £124,000.

General Portfolio

The General Portfolio is dominated by four sectors: banking and insurance;
food, beverages and consumer goods; pharmaceuticals and healthcare, and oil,
natural resources and utilities. These four sectors accounted for 86% of the
portfolio by value at 30th June 2002. We believe that the companies in these
sectors in which we have invested have the potential to outperform the market
in the medium to long term.

The year ahead

Our long standing strategy is to achieve increasing value for shareholders from
a number of Strategic Investments whose quoted value may well be volatile, and
a General Portfolio of leading shares in companies which operate on a global
basis.

The outlook for both the short and medium term is uncertain and, with our low
gearing, we have positioned ourselves to take advantage of any investment
opportunities that may arise.

                                                                  D.C. MARSHALL

23rd August 2002 Chairman


Unaudited Consolidated Profit and Loss Account

For the year ended 30th June                                    2002     2001
                                                                             
                                                     Notes      £000     £000
                                                                             
Operating Income                                                             
                                                                             
Investment operations                                           276      620 
                                                                             
Managment services                                              495      425 
                                                                             
Administrative expenses                                                      
                                                                             
Investment operations                                          (263)    (273)
                                                                             
Managment services                                             (481)    (416)
                                                                             
Operating profit                                                 27      356 
                                                                             
Share of result of associated undertaking - Normal              (98)      16 
                                                                             
- Exceptional                                          1        219      805 
                                                                             
Interest payable                                                (88)    (117)
                                                                             
Profit on ordinary activities before taxation                    60    1,060 
                                                                             
Tax on result of ordinary activities                             (9)     (12)
                                                                             
Profit on ordinary activities after taxation                     51    1,048 
                                                                             
Minority interest                                                (7)      (3)
                                                                             
Profit attributable to members of the holding                    44    1,045 
company                                                                      
                                                                             
Proposed dividend                                      2       (205)    (307)
                                                                             
Retained (loss)/profit for the financial year                  (161)     738 
                                                                             
Earnings per share                                     3      0.17 p    4.09p
                                                                             
Headline (Loss)/earnings per share                     3     (0.68)p    0.94p
                                                                             
Fully diluted earnings per share                       3      0.17 p    3.93p

Unaudited Balance Sheets

at 30th June                                   Group             Company      
                                                                              
                                             2002     2001      2002      2001
                                                                              
                                             £000     £000      £000      £000
                                                                              
Fixed Assets                                                                  
                                                                              
Tangible assets                              471      493       457       467 
                                                                              
Investments in Group companies                 -        -     6,127     6,154 
                                                                              
Investments                                7,741    7,607         -         - 
                                                                              
                                           8,212    8,100     6,584     6,621 
                                                                              
Current Assets                                                                
                                                                              
Listed investments                         2,743    3,443     2,743     3,443 
                                                                              
Unlisted investments                          43       43        43        43 
                                                                              
Debtors                                      187      157        45        44 
                                                                              
Bank balance and deposits                     26       32        20        17 
                                                                              
                                           2,999    3,675     2,851     3,547 
                                                                              
Current Liabilities                                                           
                                                                              
Creditors: falling due within one year    (1,583)  (2,010)   (1,551)   (1,972)
                                                                              
Net Current Assets                         1,416    1,665     1,300     1,575 
                                                                              
Total Assets less Current Liabilities      9,628    9,765     7,884     8,196 
                                                                              
Capital and Reserves                                                          
                                                                              
Called up share capital                    1,281    1,277     1,281     1,277 
                                                                              
Share premium account                        975      962       975       962 
                                                                              
Reserves                                     361      361       480       480 
                                                                              
Profit and loss account                    6,948    7,109     5,148     5,477 
                                                                              
Equity shareholders' funds                 9,565    9,709     7,884     8,196 
                                                                              
Minority equity interests                     63       56         -         - 
                                                                              
                                           9,628    9,765     7,884     8,196 

Consolidated Cash Flow Statement

For the year ended 30th June                                    2002     2001
                                                                             
                                                                £000     £000
                                                                             
Cash (outflow)/inflow on operating activities                   (71)     888 
                                                                             
Returns on investments and servicing of finance                              
                                                                             
Dividends received                                              243      374 
                                                                             
Interest paid                                                   (78)    (105)
                                                                             
Net cash inflow from returns on investments and servicing       165      269 
of finance                                                                   
                                                                             
Taxation                                                         (5)      (6)
                                                                             
Investing activities                                                         
                                                                             
Tangible fixed assets - purchased                                  -      (3)
                                                                             
Fixed asset investments - purchased                            (107)    (532)
                                                                             
- proceeds on disposal                                            3      238 
                                                                             
Net cash outflow from investment activities                    (104)    (297)
                                                                             
Equity dividend paid - Company                                 (307)    (281)
                                                                             
Financing                                                                    
                                                                             
Share capital issued                                             16        6 
                                                                             
Net drawdown/(repayment) of loan facility                       300     (600)
                                                                             
Net cash inflow/(outflow) from financing                        316     (594)
                                                                             
Decrease in cash                                                 (6)     (21)

Notes

1.   The exceptional item comprises the Company's share of Western Selection  
     P.L.C.'s exceptional profits for its year to 30th June 2002.             
                                                                              
2.   The dividend for the year of 0.80p per share (2001 - 1.20p) will be paid 
     on 4th October 2002 to shareholders on the register on 13th September    
     2002                                                                     
                                                                              
3.   Earnings per share are based on the result of ordinary activities after  
     taxation and minority interests and on 25,592,026 (2001 - 25,540,767)    
     being the weighted average of the number of shares in issue during the   
     year.                                                                    
                                                                              
4.   The net assets attributable to shareholders, taking investments at market
     value, are before providing for any tax that may arise on realisation    
                                                                              
5.   The financial information in this preliminary announcement of unaudited  
     group results, which has been reviewed and agreed by the auditors, does  
     not constitute statutory accounts within the meaning of section 240(5) of
     the Companies Act 1985. The accounts have been prepared in accordance    
     with the Accounting Standards of the Auditing Practices Board of the     
     United Kingdom and are consistent with those applied in the previous     
     financial year. The audited accounts of the group for the year ended 30th
     June 2001 have been reported on with an unqualified audit report in      
     accordance with section 235 of the Companies Act 1985 and have been      
     delivered to the Registrar of Companies.                                 
                                                                              
6    Changes in Equity                                           2002     2001
                                                                              
                                                                 £000     £000
                                                                              
     Profit for the financial year                                44    1,045 
                                                                              
     Proposed dividend                                          (205)    (307)
                                                                              
     Shares issued during the year                                17        6 
                                                                              
                                                                (144)     744 
                                                                              
     Opening equity shareholders' funds                        9,709    8,965 
                                                                              
     Closing equity shareholders' funds                        9,565    9,709 

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