Interim Results

First Property Group PLC
22 November 2007


Date: 22 November 2007

On behalf of: First Property Group plc ('First Property' or 'the Group')

Embargoed: 0700hrs


First Property Group plc

Interim Results 2007


First Property Group plc (AIM: FPO), the AIM-listed property services group
specialising in property asset management, today announces its interim results
for the six months to 30 September 2007.


Financial Highlights:


   • Transformation of Group demonstrated by growth in assets under
    management of 167% to £240 million (2006: £90 million) underpinning strong
    interim performance
   • Profit on ordinary activities before taxation grew 167% to £1.6 million
    (2006: £0.6 million)
   • Increase in diluted Earnings per Share of 174% to 0.96p (2006: 0.35p)
   • Group declares its first interim dividend of 0.15 pence per share
   • Revenue from asset management increased 150% to £1 million (2006: £0.4
    million)
   • First Property Services generated a pre-tax profit of £345,000 (2006:
    £79,000)
   • Positive cash flow of some £2 million - no bank borrowings


Operational Highlights:

   • Recent credit market turmoil has not affected chosen markets of Poland
    and Romania
   • Capacity to acquire a further £200 million of property on behalf of the
    fund managed for the Universities Superannuation Scheme
   • Strategic emphasis - to grow asset management division - continues to
    progress successfully
   • FSA registration gained in May 2007 enabling the Group to build further
    portfolio of funds
   • The Group now manages £226 million (€323 million) of property in Central
    and Eastern Europe, representing 94% of the total portfolio
   • Pipeline of a further £20 million (€28 million) of property under offer

• UK commercial property market remains significantly over-valued


A briefing for analysts will be held at 09:30hrs today at Redleaf
Communications, 9-13 St Andrew Street, London EC4A 3AF


Commenting on the results, Ben Habib, Chief Executive of First Property, said,

'This has been a good interim period for the Group. We are delighted with the
progress being made with the Group's overall operations, in particular, the
profit growth resulting from the company's strategic transformation put in place
last year.


'Our portfolio of property assets under management during the period increased
substantially and the Company's asset management activities continue to progress
strongly in Poland which appears largely unaffected by the recent credit crunch.


'Given our capacity to acquire a further £200 million of property on behalf of
the fund we manage for the Universities Superannuation Scheme and prospects for
growth in our asset management division, I look forward to the rest of the year
with confidence.'



For further information contact:

First Property Group plc                  Tel: [phone]
Ben Habib (Chief Executive)               www.fprop.com

Redleaf Communications                    Tel: [phone]
Emma Kane/Adam Leviton                    [e-mail]

Arden Partners                            Tel: [phone]
Chris Hardie (Director Corporate Finance)



   • Publication quality photos are available from Redleaf Communications









CHIEF EXECUTIVE'S STATEMENT


Results and dividend

I am pleased to report our interim results for the six months to 30 September
2007, which reflect a marked increase in the Group's profits.


Revenue has increased by 5% to £5,401,000 (2006: £5,148,000), earning a doubling
in gross profit to £2,512,000 (2006: £1,255,000) and yielding a profit on
ordinary activities before taxation of £1,555,000 (2006: £559,000).


Diluted earnings per ordinary share was 0.96 pence (2006: 0.35 pence).


In view of the significant increase in profits, the Directors have reviewed the
Group's dividend policy and have resolved to declare an interim dividend of 0.15
pence per share which will be paid on 21 December 2007 to shareholders on the
register at 30 November 2007. The final dividend for the year will be decided at
the end of the year once the full year's results are known.


For the financial year ending 31 March 2008, the Group will prepare its annual
consolidated statements in accordance with International Financial Reporting
Standards (IFRS) accepted by the European Union and implemented in UK. These
half year financial statements are therefore prepared based on IFRS.


Review of operations


Property asset management


Revenue earned by this division amounted to £1,057,000 (2006: £375,000).


We now have some £240 million of property assets under management (2006: £90
million). Of these, approximately 85% by number and value are located in Poland,
9% in Romania and only 6% in the UK.


Our experience of the Central and Eastern European property markets continues to
bear out our expectations of the region. We are able to purchase prime property
on yields of some 6% to 7%, which are significantly higher than the prevailing
Euro interest rates of 4.5%, with very real prospects for rental growth. Equally
pertinently, the recent credit market turmoil has not noticeably affected our
chosen markets of Poland and Romania. Indeed, the Polish Zloty has gone from
strength to strength over the last three months, which is in stark contrast to
the weakening of both the US Dollar and Sterling against the Euro.


The value of the properties we manage has increased substantially over the last
six months both as a result of new acquisitions and by increases in the
individual value of properties previously acquired.


There has been much published about the recent reduction in values of UK
commercial property. In our view, at current levels of interest rates, the UK
market remains significantly over valued. We anticipate that there will be a
continued reduction in these values over the coming months. As such we are
unlikely to reverse, for some time to come, the decision we took in 2005 to move
away from the UK markets.


We are working on the acquisition of some Eur 30 million (£20 million) of
property in Poland at the moment. This is a smaller pipeline than we would
ideally like but we remain judicious in our buying decisions and will not
sacrifice quality for speed.


We have the capacity to acquire a further £200 million of property on behalf of
the fund we manage for the Universities Superannuation Scheme and prospects for
growth in our asset management division are therefore good, without factoring in
any new funds we may raise in the future.


Property trading


Revenue from this activity was £1,941,000 (2006: £3,037,000), producing a profit
before tax of £728,000 (2006: £415,000). This result includes a profit before
tax of £549,000, earned on the sale of a property to an associated company
(further details of which are set out in Note 10 below) and a realised currency
gain of £78,000.


We have recently acquired an exciting trading opportunity in Warsaw for some £2
million, being a dysfunctional office block in need of redevelopment. Subject to
gaining planning consent for its demolition and a new residential development we
would expect to make a healthy return on our purchase. We would not expect to be
able to crystallise this return during the current financial year.


First Property Services Ltd ('FPS')


FPS, in which we acquired a 60% interest in February 2006, is engaged in the
provision of facilities maintenance and building services to clients in the
commercial property sector.


FPS has had an excellent first half and earned revenues of £2,350,000 (2006:
£1,573,000) and a profit before tax of £345,000 (2006:79,000).


The business managed to secure a number of new clients. However, it is worth
noting that 80% of its revenue was earned from its existing client base,
indicating the strength of its client relationships.


With its experienced management team, I am confident that FPS will continue to
deliver good results.


Current trading and prospects


I am delighted by our performance in the first half which has yielded excellent
results for our clients as well as a pre-tax profit for the Group of £1,555,000
being 31% higher than last year's full year pre-tax profit of £1,186,000.


The asset management division should continue to grow at a fast rate, further
adding to our revenue streams and improving the visibility and security of our
income. We are an operationally geared business and a given rate of growth in
our assets under management should lead to a substantially greater growth in our
profits.


The expertise we have and our proven track record, coupled with our ability to
raise funds independently now that we are FSA registered means that we should be
able to continue scaling up our business in the years ahead.



Ben Habib
Chief Executive


22 November 2007




                         CONSOLIDATED INCOME STATEMENT
                    for the six months to 30 September 2007

                          Notes Six months to Six months to        Year to
                                      30 Sept       30 Sept       31 March 
                                         2007          2006           2007
                                  (unaudited)     (unaudited)    (audited)                                              

                                        Total          Total        Total
                                      Results        Results      Results
                                                      


                                        £'000         £'000         £'000

       Revenue
       - continuing                     5,401         5,148         7,854
       operations 
       Total revenue       4/5          5,401         5,148         7,854
       Cost of sales
       - continuing                   (2,889)       (3,893)       (5,216)
       operations
       Gross profit                     2,512         1,255         2,638
       Net operating                  (1,067)         (775)       (1,611)
       expenses
       Operating profit
       - continuing                     1,445           480         1,027
       operations
       Total operating                  1,445           480         1,027
       profit
       Income from                          -            46           116
       investments
       Share of                            50            26            76
       associated
       companies' profits
       after tax
       Net interest                        60             7          (33)
       receivable /
       (payable)
       Profit on ordinary   6           1,555           559         1,186
       activities before
       taxation
       Taxation on profit   7           (319)         (133)         (227)
       on ordinary
       activities
       Profit on ordinary               1,236           426           959
       activities before
       minority interest
       Equity minority                  (101)          (28)          (44)
       interest
       Profit for the                   1,135           398           915
       period
       Earnings per         8           1.02p         0.36p         0.82p
       Ordinary 1p share
       - basic
       Earnings per         8           0.96p         0.35p         0.80p
       Ordinary 1p share
       - diluted



                              CONSOLIDATED BALANCE SHEET
                                as at 30 September 2007

                                Notes      As at 30     As at 30     As at 31
                                               Sept         Sept        March 
                                               2007         2006         2007
                                        (unaudited)  (unaudited)    (audited)
                                              £'000        £'000        £'000

   Non current assets
   Goodwill                                      25           25           25
   Tangible assets                              154          152          139
   Investments - Share of         9            (24)          259          274
   associates net assets
                                                155          436          438
   Current assets
   Inventory - land and                         398        2,103        2,314
   buildings
   Receivables                   10           6,131        5,673        4,267
   Cash at bank and in hand                   3,856        3,046        2,522
                                             10,385       10,822        9,103
   Current liabilities :         11         (1,819)      (3,880)      (1,812)
   Net current assets                         8,566        6,942        7,291
   Total assets less current                  8,721        7,378        7,729
   liabilities
   Non current liabilities :     11            (48)        (194)         (41)
   amounts falling due after
   more than one year
   Net assets                                 8,673        7,184        7,688

   Equity
   Called up Share capital                    1,116        1,116        1,116
   Share premium                              5,298        5,298        5,298
   Merger reserve                             5,823        5,823        5,823
   Foreign Exchange                             128           11           80
   Translation Reserve
   Retained Earnings                        (3,793)      (5,072)      (4,653)
   Equity minority interest                     101            8           24
   Equity shareholders' funds                 8,673        7,184        7,688



                   CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
                     for the period ended 30 September 2007

                           Share     Share    Merger     Foreign Purchase        Retained      Equity
                         capital   premium   reserve    Exchange   of own        Earnings    Minority
                                                     Translation   Shares                    Interest
                                                         Reserve
                           £'000     £'000     £'000       £'000    £'000           £'000       £'000          

At 1 April 2006            1,116     5,298     5,823          70        -         (5,315)        (20)
Profit/(Loss) for the          -         -         -           -                      398          28
period 
Movement on Foreign            
Exchange                      
Translation Reserve            -         -         -        (59)                        -           -
Purchase of Treasury           -         -         -           -                        -           -
Shares                         
Dividends Paid                 -         -         -           -                    (168)           -
At 30 Sept 2006            1,116     5,298     5,823          11        -         (5,085)           8
Profit/(Loss) for the          -         -         -           -        -             518          16
period                        
Movement on Foreign             
Exchange                    
Translation Reserve            -         -         -          69        -               -           -
Purchase of Treasury           -         -         -           -     (86)               -           -
Shares                        
Dividends Paid                 -         -         -           -        -               -           -
At 1 April 2007            1,116     5,298     5,823          80     (86)         (4,567)          24
Profit/(Loss) for the          -         -         -           -        -           1,135         101
period                        
Movement on Foreign            -         -         -          48        -               -           
Exchange                      
Translation Reserve            -                               -                   
Purchase of Treasury           -                               -     (81)                          
Shares                        
Dividends Paid                 -         -         -           -        -           (194)        (24)
At 30 Sept 2007            1,116     5,298     5,823         128    (167)         (3,626)         101



               SUMMARISED CONSOLIDATED CASH FLOW STATEMENT
                 for the six months to 30 September 2007

                                Notes  Six months to        Six months    Year to 31
                                        30 Sept 2007   to 30 Sept 2006    March 2007
                                         (unaudited)       (unaudited)     (audited)

                                               £'000             £'000        £'000
                                                                    
 Cash flows from operating
 activities
 Operating profit                              1,445               480        1,027
 Depreciation and profit/loss                     35                34           51
 on disposal of fixed assets
 Profit on disposal of                          (19)                 -         (46)
 investments
 Movement in foreign exchange                     48              (59)           10
 translation reserve
 Decrease / (increase) in stock                1,916               595          384
 Decrease / (increase) in                    (1,864)                14        1,419
 debtors
 (Decrease) / increase in                        821              (69)        (307)
 creditors
 Net cash from operating                       2,382               995        2,538
 activities
 Cash flows from financing
 activities
 Equity dividends paid                         (194)             (168)        (168)
 Minority interest dividend                     (24)                 -            -
 paid
 Dividends received                                -                 -          117
 Interest received                                71                28           99
 Interest paid                                  (11)              (21)        (132)
 Net cash used in financing                    (158)             (161)         (84)
 activities
 Taxation                                      (175)              (47)        (367)
 Capital expenditure and
 financial investment
 Purchase of tangible fixed                     (68)              (13)         (45)
 assets
 Purchase of goodwill                              -               (9)          (9)
 Purchase of investments                           -              (30)         (54)
 Purchase of treasury shares                    (81)                 -         (86)
 Sale of tangible fixed assets                    19                44           54
 Sale of investments                              33                74          132
 Net cash used in investing                     (97)                66          (8)
 activities
 Net increase in cash and cash                 1,952               853        2,079
 equivalents
 Cash and cash equivalents at
 beginning of period                           1,816             (263)        (263)
 Cash and cash equivalents at
 end of period                                 3,768               590        1,816



                       NOTES TO THE CONSOLIDATED RESULTS
                   for the six months ended 30 September 2007



1.       Basis of preparation and transition to International Financial
Reporting Standards


      • For all periods up to and including 31 March 2007, the Group prepared
        its financial statements in accordance with UK Generally Accepted
        Accounting Principles ('UK GAAP') . For the financial year ending 31
        March 2008, the Group will prepare its annual consolidated financial
        statements in accordance with International Financial Reporting
        Standards ('IFRS') as adopted by the European Union and implemented in
        the UK.
      • In preparing these financial statements, the Group started from an
        opening balance sheet as at 1 April 2006, the Group's effective date of
        transition to IFRS, and considered those changes in accounting policies
        and other restatements required by IFRS.
      • The Group has applied IFRS as expected to be applicable for the year
        ended 31 March 2008. These are subject to ongoing review and
        endorsements by the European Commission, and possible amendment by the
        International Accounting Standards Board, and are therefore subject to
        possible changes. These potential changes and the development of
        industry consensus could result in the need to change the basis of
        accounting or presentation of certain financial information from that
        presented in this document.
      • These half year financial statements have not been audited and do not
        constitute statutory accounts within the meaning of section 240 of the
        Companies Act 1985. They have been prepared in accordance with the
        Group's accounting policies based on IFRS standards that are expected to
        apply for the financial year ending 31 March 2008.
      • The comparative figures for the financial year ended 31 March 2007
        are not the statutory accounts for the financial year but are abridged
        from those accounts prepared under UK GAAP which have been reported on
        by the Group's auditors and delivered to the Registrar of Companies. The
        report of the auditors was unqualified, did not include references to
        any matter to which the auditors drew attention by way of emphasis
        without qualifying their report and did not contain a statement under
        section 237 (2) or (3) of the Companies Act 1985.
      • The interim financial statements were approved by the Board of
        Directors on 21 November 2007.


2.       Principal items arising from the transition from UK GAAP to IFRS


      • The group half year financial statements have been prepared based on
        IFRS. The accounting policies and methods of computation used in the
        preparation of these half year financial statements are consistent with
        those used in the financial statements for the year ended 31 March 2007
        except where there are differences between UK GAAP and IFRS. The main
        differences between the group financial statements prepared under UK
        GAAP and those under IFRS are detailed below:

             • The cash flow statement has been prepared in conformity with IAS 
               7 'cash flow statements'
             • No other material adjustments have been identified during the 
               transition from UK GAAP to IFRS that require a restatement of 
               prior period results and as such no reconciliations have been 
               presented.


3.       Goodwill and intangible assets


      • The purchase method of accounting is applied to all business
        combinations.
      • The costs of intangible assets acquired through a business
        combination is deemed to be their fair value at acquisition.
      • The excess of purchase consideration paid over the fair value of the
        assets acquired is treated as purchased goodwill and capitalized as an
        intangible asset. Goodwill is not amortised but is subject to an annual
        impairment review.
      • Impairment reviews are carried out to ensure that goodwill and
        intangible assets are not carried above their recoverable amounts. Any
        amortisation or impairment write downs are changed to the income
        statement.
      • The fair values of the intangible assets acquired have been
        capitalized as intangible assets in accordance with IFRS 3 ' Business
        Combinations'


4.       Revenue consists of revenue arising in the United Kingdom 47% (2006:
58%) and Central and Eastern Europe 53% (2006: 42%) and all relates solely to
the Group's principal activities.


5.       Segment Information

                                              Revenue                                        
                                    Six months     Six months      12 months
                                 ended 30 Sept  ended 30 Sept       ended 31
                                          2007           2006     March 2007 

    Property Asset Management            1,057            375          1,362
    Property Trading                     1,941          3,037          3,252
    Property facilities management       2,350          1,573          2,870
    Other fees and income                   53            163            370
                                         5,401          5,148          7,854



6.       Segment Information

                                              Profit before tax
                                       Six months    Six months    12 months
                                         ended 30 ended 30 Sept     ended 31
                                        Sept 2007    March 2006         2007

    Property Asset Management                893            303        1,166
    Property Trading                         728            415          481
    Property facilities management           345             79          122
    Other fees and income                     43            196          226
    Unallocated central costs               (454)          (434)        (809)
                                           1,555            559        1,186









7.       The tax charge is based on the effective rate that is expected to apply
to the profits for the full year.


8.       The basic earnings per Ordinary Share is calculated on the profit on
ordinary activities after taxation and after minority interest on the weighted
average number of Ordinary Shares in issue, excluding the number of treasury
shares held during the period, of 111,069,694 (30 September 2006: 111,601,115
and 31 March 2007: 111,556,731). The diluted earnings per Ordinary Share is
calculated on an adjusted profit on ordinary activities after taxation of £
1,152,000 (2006: £401,000) and an adjusted number of Ordinary shares in issue of
119,507,194 (2006: 115,051,115).



9.       Investments - Share of associates' net assets
                                      Six months    Six months    12 months
                                        ended 30         ended     ended 31
                                       Sept 2007  30 Sept 2006   March 2007

    Cost of investment                       158          205           170
    Share of accumulated post tax            154           54           104
    profit
    Less: Share of profit after tax         (336)          -             -
    on sale of property to
    associate
                                             (24)         259           274






10.    Receivables

                                      Six months     Six months     12 months
                                        ended 30  ended 30 Sept      ended 31
                                       Sept 2007           2006    March 2007

    Trade receivables                      2,184            984         1,335
    Amounts due from undertakings          3,555          4,436         2,663
    in which the company has a
    participation interest
    Other receivables                         87             75            11
    Prepayments and accrued income           305            178           247
    Other taxation                             -              -            11
                                           6,131          5,673         4,267

During the period under review, the Group sold a multi-let office block yielding 
a net operating income of some £260,000 per annum for a cash consideration of 
£2,963,000, which is to be settled shortly. The proceeds from the sale will be 
retained by the Group for use as additional capital.

The sale was made to an associated company, 5th Property Trading Poland Sp.zo.o, 
in which the Group has a 40.79% equity interest and the results for the period 
therefore only recognise 59.21% of the revenue and profit before taxation 
arising on the sale, being £1,754,000 and 549,000 respectively.

B. N. Habib is a director of the associated company and consequently the
transaction is a related party transaction within the meaning of the AIM Rules
for Companies. Accordingly, Alasdair Locke and George Digby, being independent
directors of First Property for the purposes of this transaction, having
consulted with the Company's nominated adviser Arden Partners plc, consider that
the terms of the transaction are fair and reasonable insofar as First Property
Group plc is concerned.


11.    Current Liabilities

                                      Six months    Six months    12 months
                                        ended 30      ended 30     ended 31
                                       Sept 2007     Sept 2006   March 2007

    Bank loans                                -          2,243          645
    Trade payables                          649            467          411
    Corporation tax payable                 258            221           69
    Other taxation and social               228             92          260
    security
    Other payables and accruals             526            715          322
    Deferred income                         118            122           85
    Finance Leases                           40             20           20
                                          1,819          3,880        1,812
    Non current Liabilities

    Finance Leases                           48            194           41







12. The interim results are being circulated to all shareholders. Further copies
can be obtained from the registered office at 17 Quayside Lodge, William Morris
Way, London SW6 2UZ.





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