Interim Results

EUROPEAN MOTOR HOLDINGS PLC
14 October 1999

                     EUROPEAN MOTOR HOLDINGS plc ('EMH')

            Interim results for the six months ended 31 August 1999

Key points:

*   First results since change of new vehicle registration plate system

*   Profit before taxation £4.2 million on turnover of £225 million

*   Earnings per share of 5.3 pence

*   Interim dividend maintained at 2.6 pence per share

*   Gearing reduced to 12%

Richard Palmer, Chief Executive, commented:

'The results we are reporting for the first half of this financial year
reflect an improvement in profitability in all months except August.  We have
made a good start to the year but, unless the uncertainty over price
realignment is brought to an end quickly, further progress may be delayed.
Whatever the market environment in which we operate, your Board will continue
to pursue the highest level of profitability and its consequent rewards for
all shareholders.  We believe that we have selected the best franchises in
order to achieve this objective and look forward to a satisfactory outcome to
the year.'

Note:  The  results for the six months ended 31 August 1999 are  not  directly
comparable  with those for the six months ended 30 September 1998  because  of
the  changes  in  the  company's  financial  year  end  and  the  new  vehicle
registration plate system.

Enquiries:

Richard Palmer                               Chief Executive
Ann Wilson                                   Finance Director

European Motor Holdings plc                  0181 961 2525
Biddick Associates (press enquiries)         0171 377 667


                           Chief Executive's statement


I  am  pleased  to  report significant progress since  the  end  of  our  last
financial year.

The  results  that we are reporting for the first half of this financial  year
reflect  an improvement in profitability in all months except August.    Until
last  year, UK registration plates were changed annually in August.   However,
a  new  bi-annual system was introduced in March 1999 and this  year's  second
plate change took place in September, which falls into the second half of  our
financial year.  The impact of this change was that, nationally, the number of
registrations  of  new cars in August fell by 85% compared with  August  1998.
For  our  core franchises, national registrations in the period from March  to
August  1999  were  7% below the same period last year,  but  we  achieved  an
increase of 1% in registrations for these franchises.

In  November  1998 we decided to change our financial year end from  March  to
February  because of the inherent uncertainty in forecasting for the  new  key
months of March and September.

As  a  result of the above, the six months ended 30 September 1998 (the  first
half  of  last  financial year) and the six months ended 31 August  1999  (the
first half of the current financial year) are not directly comparable.

I  reported in April that the pricing differentials between the UK and  Europe
were  adversely  affecting our trading.   This situation has prevailed  during
the  period  under review and appears to be worsening.   Given this situation,
our  improvement  in profitability in five of the six months covered  by  this
report  is  all the more creditable.  Whether the findings of the  Competition
Commission from its current inquiry influence this pricing issue remains to be
seen,  but we hope that the uncertainty that this issue has created will  soon
be resolved.

We  are reporting a profit before taxation of £4.2 million in the period under
review.    As I have explained above, this figure is not comparable  with  the
profit  before taxation of £5.0 million which we reported for the  six  months
ended  30  September  1998.  In addition to the factors mentioned  above,  the
prior  year  figure also included a profit on disposal of businesses  of  £0.7
million.   We  have decided to maintain our interim dividend  at  last  year's
level of 2.6 pence per share.


Motor Retail Division

Having  closed  or  disposed of a number of non-core businesses  in  the  last
financial year, we now operate 40 franchises at 37 sites.  I detail below  the
performance we have achieved with our core manufacturing partners.

Our BMW dealerships recorded higher profits in the period under review than in
the  first half of last year even though August 1998 accounted for significant
profits  which obviously were not available to us this period because  of  the
change   in  the  registration  plate  system.   We  continue  to  enjoy   the
considerable  benefits of the BMW franchise and its consequent  profitability.
I  am delighted to report that our Rover and Land Rover businesses returned to
profitability  in  the  period. Much hard work  has  gone  into  the  improved
performance  by both the Rover group and our staff.  The outlook for  our  BMW
group businesses is very positive.

For the five months until the end of July, our Volkswagen and Audi businesses'
profitability was behind that for their comparative period last  year.   Their
performance was adversely affected by the extensive refurbishment and building
works  associated  with  the Volkswagen Retail Concept  projects  at  Chester,
Darlington  and  Wrexham  and the construction of the  new  Audi  premises  in
Chester.    All  of these projects were completed in the period under  review.
We  still  have one facility in London to complete for Volkswagen, and  it  is
hoped  that this will be progressed this year, but this development is subject
to satisfactory planning approval.  Very strong demand for the Volkswagen Golf
in  the  early  part  of 1999 has led to restrictions in the  supply  of  this
vehicle for several months and this also affected our profitability.  With our
new  facilities, positive changes in the way we are retailing and the  product
ranges  of  both Audi and Volkswagen, we know we can continue to  develop  our
Volkswagen group businesses in the future.

Our  Mercedes-Benz car sales volumes moved forward for the period, mainly  due
to  the  introduction of the A class and M class.  However, our  Mercedes-
Benz  car  businesses, which are in London, have been more affected  than  any
other of our businesses by customers importing vehicles directly from other EU
countries.  Whilst our sales profitability has been impaired, our after  sales
business, which includes the recently opened bodyshop at Park Royal, continues
to  prosper and gives a sound underpinning to our performance.  When there  is
price  harmonisation the larger market now available to Mercedes-Benz will,  I
am sure, translate into higher levels of profit for these businesses.

Within  our  Premier Automotive group franchises, both Jaguar and  Volvo  have
made significant progress.  Jaguar has benefited from the introduction of  the
S-Type  and,  as  the  businesses have become more mature,  profitability  has
improved  substantially  against  last  year.   We  are  confident  that   the
investments  we have made in our Jaguar businesses in Yorkshire will  continue
to  generate  improvements  in profitability, particularly  when  taking  into
consideration planned new model introductions.

Our Volvo businesses were significantly more profitable than in the first half
of  last year, notwithstanding the absence of August registrations. Sales have
improved  as  a  result  of Volvo prices becoming more competitive.   We  have
coordinated  the marketing effort for our entire territory and now  project  a
unified  message  through various media, particularly television  advertising.
This   has   proved   extremely  effective  in  reaching   potential   buyers.
Additionally, operating efficiencies have been achieved by managing our market
area  more effectively and we continue to rationalise our activities to secure
further improvements in profitability.

The  Group  continues to operate a 60 day used car stocking  policy  and  this
policy  is enforced rigidly.  As we enter a time when used vehicle values  may
come under continued downward pressure due to possible realignment of new  car
prices, we will continue to appraise our used vehicle stocks realistically and
manage them in a manner which will reduce our exposure in this area as much as
possible.   Our  auction  businesses  have  started  the  year  well  and  the
invaluable  intelligence that they provide gives us comfort in  a  continually
changing used vehicle market.

The  Perodua franchise has continued to perform very successfully and we  sold
666  vehicles in the period.  The Nippa remains the cheapest car to run in the
UK  according to the authoritative CAP guide.  We have appointed a  number  of
successful  dealers  and will continue to look for new dealers  to  complement
those  already  in operation.  We are making real progress in  establishing  a
small  car  franchise  in  the UK for our Malaysian  producer  and  we  remain
optimistic about the introduction of further models to this franchise.


Motor Services Division

The  performance of Wilcomatic has continued at a similar level to  last  year
notwithstanding  a  difficult  period for sales.   Our  major  customers,  who
operate  in the oil and food retail sectors, have continued to scale back  and
defer  their  car  wash  replacement programmes and we cannot  expect  delayed
orders  to return to Wilcomatic until our customers begin to invest  again  in
their operations.

The reduction in sales profitability has been offset by an increase in service
profits as a result of Wilcomatic's success in regaining certain major service
contracts.   We are making further progress on cost and efficiency savings  in
the operation of our service department.

We  continue  to  pursue new market opportunities and  have  had  much  recent
success  within  the  motor  retail sector.  We  have  also  re-organised  our
management  structure and have a focused team of senior managers committed  to
the growth of the Division.


Financial Review

The  changes in both our financial year end and the vehicle registration plate
system have affected the profile of the balance sheet, so that the position at
31  August 1999 is very different from that at 30 September 1998.  Consignment
stock  and  related  consignment stock creditors are £21.5 million  higher  in
readiness  for the sale of V registration vehicles from 1 September 1999,  and
used vehicle stocks have been reduced by £7.2 million for the same reason.  At
the same time, debtors for vehicles have fallen by £5.9 million because of the
lower  level of vehicle sales in August 1999 compared to September 1998.   The
balance  sheet at 31 August 1999 has a similar profile to that at 28  February
1999,  which  also represented a situation of readiness for the  sale  of  new
registration plate vehicles.

The summarised cash flow statement shows that we have invested £1.9 million in
capital   expenditure  (net  of  disposals),  principally  on  our  facilities
improvement  programme.   Working capital has been  reduced  by  £1.6  million
during  the  period.  The net result of these cash flows together  with  those
resulting from the period's operating profit (excluding depreciation) of  £5.8
million  is a decrease in the Group's net borrowings from £9.6 million  at  28
February  to  £5.1 million at 31 August, giving a gearing ratio at  31  August
1999  of  12%  compared with 23% in February.  In the eleven months  since  30
September  1998, net borrowings have been reduced by £8.9 million and  gearing
reduced from 33%.  The gearing figure at 31 August 1999 is not comparable with
the  likely  position at our forthcoming year end as payment  of  last  year's
corporation tax and final dividend and this year's interim dividend  will  all
take place in the second half.  In September, we also made our first quarterly
payment of tax on the current year's profits under the new payment system  for
corporation tax.

Interest  cover  excluding new vehicle stocking interest  increased  from  8.2
times  to  12.0  times  as a result of reduced borrowings  and  lower  average
interest  rates.   Interest  cover including  new  vehicle  stocking  interest
increased from 5.4 times to 6.2 times.


Year 2000

The  vast  majority of the Group's computerised systems have been replaced  in
the  last  few years as part of a major improvement in facilities which  would
have  taken  place  regardless of the potential  year  2000  problems.   Those
systems  and other equipment which have not been replaced have been tested  to
ensure that they will not pose problems with date recognition and have largely
been upgraded where necessary.  All of the dealer management systems have been
certified  by their suppliers that they either are already year 2000 compliant
or  the  necessary  upgrades  will be installed shortly.   Any  remaining  non
compliant  systems or equipment are scheduled to be upgraded before  the  year
end.   Major suppliers have been contacted to ensure that they have taken  all
reasonable steps to ensure that their systems are sufficient to allow them  to
continue  to  trade with us after 1 January 2000.  No significant  expenditure
has  been  incurred  or  is envisaged over and above  that  already  spent  or
committed in terms of the replacement programme.


Outlook

The results for the period from March to August were ahead of our expectations
and   those  we  achieved  in  September  were  not  significantly  below  our
performance  in  August last year.  Whether the registration plate  change  in
September  will  continue to stimulate the market in the  months  of  October,
November and December remains to be seen.

There  has been much comment in the press with regard to the pricing  of  cars
and  the differential between the UK and some other EU countries.  Whilst over
a  period  we  have  seen an increased number of imports  from  the  Continent
affecting  our  sales, for the first time it appears to us  that  buyers  have
begun to hold back from purchasing new cars, expecting their prices to fall in
the  next  few  months even though we believe that the 'cost to change'  of  a
vehicle  will  remain fairly static because if new car prices are  reduced  by
manufacturers, then used vehicle prices will also fall. There also appears  to
be  a  'Millennium  effect' on some new car buyers, who  are  deferring  their
purchase  until  1  January  2000.  As new  car  sales  are  critical  to  our
profitability, these factors are currently impairing our ability  to  forecast
our  second  half  earnings.  The  impact of  any  price  realignment  on  our
demonstrator  fleets and used car stocks, both of which we are  keeping  to  a
minimum in order to reduce our exposure, is also uncertain.

We  have made a good start to the year but, unless the uncertainty over  price
realignment  is  brought to an end quickly, further progress may  be  delayed.
Whatever  the market environment in which we operate, your Board will continue
to  pursue  the highest level of profitability and its consequent rewards  for
all  shareholders.   We believe that we have selected the best  franchises  in
order to achieve this objective and look forward to a satisfactory outcome  to
the year.



Richard Palmer
Chief Executive
14 October 1999



CONSOLIDATED PROFIT & LOSS ACCOUNT

                                            6 months     6 months   11 months
                                               ended        ended       ended
                                           31 August 30 September 28 February
                                                1999         1998        1999
                               Notes           £'000        £'000       £'000

Turnover                           1         225,100      233,770     376,805
                                             =======      =======     ======= 

Operating profit                   2           4,608        5,009       6,435

Profit on disposal of businesses   3               -          726         724

Net interest payable                            (383)        (699)     (1,116)
                                             -------      -------     -------
Profit on ordinary activities                  4,225        5,036       6,043
before taxation

Tax on profit on ordinary          4          (1,352)      (1,571)     (1,887)
activities                                   -------      -------     -------

Profit on ordinary activities                  2,873        3,465       4,156
after taxation

Equity minority interests                        (13)          (3)         (4)
                                             -------      -------     -------
Profit for the financial period                2,860        3,462       4,152

Dividends                          5          (1,398)      (1,398)     (3,281)
                                             -------      -------     -------
Retained profit for the financial              1,462        2,064         871
period                                       =======      =======     =======
                                             
Earnings per share                 6             5.3p         6.4p        7.7p
(basic and diluted)                          =======      =======     =======

Dividend per share                 5             2.6p         2.6p        6.1p
                                             =======      =======     =======

There are no recognised gains or losses other than the profit for the period
as reported above.

CONSOLIDATED BALANCE SHEET

                  
                                           31 August 30 September 28 February
                                                1999         1998        1999
                                               £'000        £'000       £'000

Tangible fixed assets                         32,372       30,693      31,408
                                             -------      -------     -------
Current assets
  Stocks                                      74,873       61,947      64,129
  Debtors                                     20,081       29,565      16,611
  Cash at bank and in hand                    13,801        5,592       8,220
                                             -------      -------     -------
                                             108,755       97,104      88,960

Creditors: amounts falling due               (95,619)     (81,846)    (75,550)
within one year                              -------      -------     -------

Net current assets                            13,136       15,258      13,410
                                             -------      -------     -------
Total assets less current liabilities         45,508       45,951      44,818

Creditors: amounts falling due after            (563)      (1,039)     (1,113)
more than one year

Provisions for liabilities and charges          (674)        (555)       (722)

Deferred income                               (1,108)      (1,477)     (1,295)
                                             -------      -------     -------
                                              43,163       42,880      41,688
                                             =======      =======     =======
Capital and reserves
  Called up share capital                     21,513       21,513      21,513
  Share premium account                       26,476       26,476      26,476
  Profit and loss account                     (4,843)      (5,112)     (6,305)
                                             -------      -------     -------
Equity shareholders' funds                    43,146       42,877      41,684

Equity minority interests                         17            3           4
                                             -------      -------     -------
                                              43,163       42,880      41,688


Gearing                                           12%          33%         23%
                                             =======      =======     =======

CONSOLIDATED CASH FLOW STATEMENT

                                            6 months     6 months   11 months
                                               ended        ended       ended
                                           31 August 30 September 28 February
                                                1999         1998        1999
                                               £'000        £'000       £'000

Net cash flow from operating activities        7,390         (255)     12,604
Returns on investment and servicing of finance  (383)        (699)     (1,116)
Tax paid                                        (350)        (350)     (3,264)
Capital expenditure and financial investment  (1,925)      (3,748)     (5,967)
Acquisitions and disposals                         -        2,409       2,757
Equity dividends paid                              -            -      (3,281)
                                             -------      -------     -------
Net cash flow before financing                 4,732       (2,643)      1,733
Financing                                        849        1,955      (7,793)
                                             -------      -------     -------
Increase/(decrease) in cash in the period      5,581         (688)     (6,060)
                                             =======      =======     =======


Reconciliation of operating profit to net cash flow from operating activities

                                            6 months     6 months    11 months
                                               ended        ended        ended
                                           31 August 30 September  28 February
                                                1999         1998         1999
                                               £'000        £'000        £'000

Operating profit                               4,608        5,009        6,435
Depreciation                                   1,187        1,137        2,613
(Profit) on sale of tangible fixed assets        (13)         (25)        (12)
(Increase) in stocks                         (10,744)      (3,442)     (7,800)
(Increase)/decrease in debtors                (3,470)      (3,926)      8,207
Increase in creditors                         15,822          992       3,161
                                             -------      -------     -------
Net cash flow from operating activities        7,390         (255)     12,604
                                             =======      =======     =======


Analysis of changes in net debt

                              At 1 March   Cash flow   Other non At 31 August
                                    1999            cash changes         1999
                                   £'000       £'000       £'000        £'000
Cash at bank and in hand           8,220       5,581           -       13,801
Bank overdraft                    (8,000)          -           -       (8,000)
                                 -------     -------                  -------
                                     220       5,581                    5,801

Debt due within one year          (5,075)        162         (10)      (4,923)
Debt due after one year              (60)          -          10          (50)
Finance leases                    (4,709)     (1,011)       (213)      (5,933)
                                             -------
                                                (849)
                                 -------     -------     -------      -------

Total                             (9,624)      4,732        (213)      (5,105)
                                 =======     =======     =======      =======

NOTES TO THE INTERIM RESULTS

1  Analysis of turnover:
                                            6 months     6 months   11 months
                                               ended        ended       ended
                                           31 August 30 September 28 February
                                                1999         1998        1999
                                               £'000        £'000       £'000

 Motor Retail Division                       217,627      225,273     361,440
 Motor Services Division                       5,442        6,529      11,760
 Other Businesses                              2,031        1,968       3,605
                                             -------      -------     -------
                                             225,100      233,770     376,805
                                             =======      =======     =======

2  Analysis of operating profit:
                                            6 months     6 months   11 months
                                               ended        ended       ended
                                           31 August 30 September 28 February
                                                1999         1998        1999
                                               £'000        £'000       £'000

 Motor Retail Division                         5,295        5,595       7,339
 Motor Services Division                         110          161         473
 Other Businesses                                 83           27           5
 Central costs                                  (880)        (774)     (1,382)
                                             -------      -------     -------
                                               4,608        5,009       6,435
                                             =======      =======     =======

3 Profit  on disposal of businesses relates to the disposal of three          
  businesses in  the  six  months ended 30 September 1998 and two businesses  
  in  the  five months ended 28 February 1999 in five separate transactions.

4 The  charge  for  taxation  is  based  on  the estimated effective rate for 
  the financial year.

5 An  interim  dividend  of  2.6p (1998, 2.6p) per share  will  be  paid  on  
  7 December 1999 to shareholders on the register at 5 November 1999.

6 The  calculation  of earnings per share for the six months  ended  31 August
  1999  is  based  on the profit for the financial period of £2,860,000       
  (1998,£3,462,000)  and on 53,784,710 (1998, 53,784,710) ordinary shares     
  being  the average  number of shares in issue during the period.  The number
  of dilutive potential  ordinary  shares  arising from share  options, as    
  calculated in accordance  with  FRS  14:  Earnings  per  Share,  is  nil    
  (1998,   33,764). Therefore,  the  calculation of diluted earnings per      
  share   is  based  on  the profit  for  the  financial period of £2,860,000 
  (1998, £3,462,000)  and  on 53,784,710 (1998, 53,818,474) ordinary shares.

7 This  interim  statement has been prepared on  the  basis  of  the  same
  accounting policies as those set out in the financial statements for  the   
  11 months ended 28 February 1999.

8 This  interim  statement was approved by the Board of  Directors  on  14
  October  1999.   The foregoing financial information does not represent     
  full accounts within the meaning of Section 240 of the Companies Act 1985   
  and  has been  neither  audited  nor reviewed by the auditors  nor delivered
  to  the Registrar of Companies. The above results for the 11 months  ended  
  28 February 1999 have been abridged from the full Group accounts for that   
  period, which  received an unqualified auditors' report and which have been 
  delivered to the Registrar of Companies.