Trading Statement

Braemar Group PLC
29 March 2006

Braemar Group plc



Trading update for the period ending 31 March 2006



Braemar Group plc ('Braemar'), the manager of tax efficient residential property
funds, provides the following update on the performance and activities of the
group since completion of the reverse takeover of The Braemar Group Limited by
MetroCapital plc. The directors are pleased to report that good progress has
been made in line with the stated strategy at the time of the reverse takeover.



•        New residential property fund launches

•        Final closing of Coronation III

•        Deferred consideration conditions satisfied

•        Continued support from Tchenguiz family

•        Acquisitions strategy

•        Annual General Meeting





New residential property fund launches



The directors are preparing for the launch of a £25 million residential property
fund that will be suitable for SIPP investment early in the new financial year
and are also monitoring the developments in the Real Estate Investment Trust
(REIT) legislation with the view to launching a REIT once the rules have been
finalised.  Coronation IV will also be launched in the autumn, continuing the
series of tax driven residential property funds.





Final closing of Coronation III



The final close of the Coronation III Limited Partnership will take place on 31
March 2006.  Coronation III has completed the purchase of a property in
Tunbridge Wells.  Braemar will manage this £3.5 million project to create 17
apartments during 2006, the largest single transaction by a Coronation fund to
date providing the group with significant fee income.  Coronation III is the
third fund launched and managed by Braemar to invest in residential property
carrying capital allowances and affording investors a blend of exposure to the
residential sector and tax reliefs.



Deferred consideration conditions satisfied



Three of the five deferred payment conditions for the acquisition of The Braemar
Group Limited have now been met.  Accordingly, deferred consideration of
£375,000 has been paid to two of the vendors, Marc Duschenes, the Managing
Director of Braemar, and his wife Jennie Duschenes. Marc and Jennie Duschenes
have elected to receive this deferred consideration in convertible loan notes
rather than in cash.  Braemar will update shareholders when the remaining two
conditions are met.


Continued support from Tchenguiz family



As previously announced on 1 February 2006, Braemar raised an additional
£450,000 (before expenses) by way of a placing of 15,000,000 new ordinary shares
of 1p each at 3p per share. The funds raised are being used to provide
additional working capital for the group.



Wheddon Limited subscribed for 3,333,333 in this placing, taking their total
holding to 23,999,999 shares representing 21.09 per cent of the issued share
capital. Wheddon Limited is ultimately owned by Investec Trust (Guernsey)
Limited as trustees for the Tchenguiz Family Trust.  The directors of Braemar
meet on a regular basis with other property related businesses in which Wheddon
and Vincent Tchenguiz holds stakes.   The directors believe that this will
create growth opportunities for cross-selling Braemar's services amongst those
businesses.



Acquisitions strategy



At the time of the reverse takeover, the directors stated their intention to
seek acquisitions in the property investment management and property services
sectors, and to develop or acquire a corporate finance business to act as
sponsor to its own fund launches and to provide advice to similar growing
companies.  The directors continue to pursue this strategy and have identified a
number of possible acquisitions.  Discussions with the vendors of these
businesses are at an early stage, but the directors hope to conclude at least
one transaction in 2006.



Annual General Meeting



The Annual General Meeting of Braemar will be held at 10.00 a.m. on 26 April
2006, at the head office of the company, Richmond House, Heath Road, Hale,
Cheshire WA14 2XP.  A notice convening that meeting has been sent to
shareholders today.






For further information please contact:



Martin Robinson, Chairman, Braemar Group plc                       0161 929 4969

Marc Duschenes, Managing Director, Braemar Group plc               0161 929 4969

Charles Ryland or Isabel Podda, Buchanan                           020 7466 5000

Alex Clarkson, Zeus Capital                                        0161 831 1512






Note to editors



Braemar Group plc ('Braemar') creates and manages residential property
investment funds, via collective and tax efficient investment schemes, targeted
at the high net worth individual community.



Braemar launched its first unregulated collective investment scheme in April
2003.   Coronation Limited Partnership was set up to invest in residential
property carrying capital allowances affording its investors a blend of exposure
to the residential sector and tax relief.  A second fund, The Coronation II
Limited Partnership closed for new investment in December 2004 and a third fund,
The Coronation III Limited Partnership, was launched in September 2005.



Braemar's income streams can be broadly divided into three categories:



1.                  Fund Management.  Braemar receives an annual management fee
plus a carried interest or performance fee, which may be linked to an index.



2.                  Property Management.  Once a fund is put in place, Braemar
either manages it in-house or sources all property management functions,
including overseeing development and project management, arranging finance and
insurances, tenancy management and rent collection.  Whilst project driven fees
typically generate a high margin up front, the longer term management activity
provides Braemar with a trail of recurring fee income.



3.                  Property Trading and Development.  Braemar also trades
reversionary residential property, acting as agent or principal and from time to
time is involved in property development on its own account.





Following pension deregulation, the UK market for collective investment schemes,
particularly those in residential property, is expected to grow.  Most funds
have been targeted at the pensions market and have, under current legislation,
been restricted to investment in commercial property.  The pensions market had
been expecting a relaxation of the rules to permit individuals to hold
residential property in their personal pension funds from 6th April 2006, known
as A-day.  However, the Chancellor, in his pre-Budget statement in December
2005, announced that individuals will only be permitted to hold an interest in
residential property in their pension funds via investments in residential
property funds.  Braemar intends to create a range of collective property funds
that will be suitable for investment by individuals via their personal pension
funds to be launched after A-day.




Convertible loan notes:



The loan notes carry interest at 2 per cent. above base rate.  This interest is
payable on conversion or redemption.  The loan notes are convertible into
ordinary shares of 1p each in the capital of Braemar at 3 pence per share at any
time or before the 5th anniversary of issue, provided that the holders of the
loan notes and any person forming part of a concert party with them (as defined
in the City Code on Takeovers and Mergers) do not hold more than 29.99 per cent.
of the entire issued share capital of Braemar.  The loan notes are also
redeemable by Braemar, at the election of the loan note holders, as long as
Braemar has sufficient working capital to enable payment.




                      This information is provided by RNS
            The company news service from the London Stock Exchange