Final Results

Gresham House PLC
26 April 2001


The Board of Directors of this Company have this evening approved the
Preliminary Final Statement and Dividend for the year ended 31st December 2000.

The Record date for the final dividend will be 18th May 2001 and the dividend
will be payable on 22nd June 2001 with Warrants posted by first class mail on
21st June 2001.


                                GRESHAM HOUSE plc

                         36 Elder Street, London E1 6BT
                            Telephone: [phone]
                            Facsimile: 020-7377 2946

                              CHAIRMAN'S STATEMENT

The  results  for  the  year  ended 31st December, 2000  show  a  substantially
increased return on ordinary activities after taxation for the combined  Revenue
and  Capital  Accounts  of  £15.2m against £1m last year.  Two  thirds  of  this
increase  is  due to the gains on investments, the majority of  which  is  as  a
result  of  the  improvement in the market value of  our  holding  in  Transense
Technologies.  At  the  year end Gresham  held (and still holds  today)  210,000
shares  in  Transense at a mid-market price of £24.27 against a price of  £20.25
yesterday.  The  diluted net asset value per Gresham  ordinary  share  increased
from 202.3p last year to 527.8p as at the year end, an increase of approximately
160% against the previous year.

Total  Revenue  income has increased from £2.2m to £8.6m. Of this  figure  share
dealing  profits  accounted for £4.9m and whilst dividend  income  dropped  from
£108,000  to  £55,000 the underlying property rental stream has,  as  previously
predicted, almost doubled to £3.l m. The increase in rental income reflects the
continuing  growth in our subsidiary property companies which now  between  them
hold  68  individual property units. Shareholders will note that Other  expenses
have  increased  significantly over the previous year. The  major  part of  this
increase  is due to provisions made for essential works to investment properties
and against a development in hand.

Some shareholders have requested for more information on the investment property
subsidiaries and therefore an analysis of these properties will be shown in  the
Annual  Report and Accounts. Shareholders will be interested to know that during
the last two decades these property companies have operated successfully without
any financial injection by Gresham House plc itself. As at the year end the cost
of  our  investment  in the property sub-group, which has  now  accumulated  net
assets of approximately £7.0m, prior to capital gains, was £71,500.

As  reported  last  year and in the interim statement we  continue  to  consider
proposals  to re-finance the 2.5% Gresham House Finance plc Secured  Loan  Stock
which is due for repayment on 31st December, 2001.

We are pleased that the significant efforts of the management team over the last
five years have now been reflected in these results and we continue to seek  new
opportunities to ensure our continued growth for the future.

As a result of the continued improvement in the position of the Group your Board
proposes that the final dividend be increased from lp to 1.5p per share.

A P Stirling
                                                26th April, 2001


                                GRESHAM HOUSE plc
                           PRELIMINARY FINAL STATEMENT

                     CONSOLIDATED STATEMENT OF TOTAL RETURN
                     for the Year ended 31 st December, 2000

                                       2000                 1999

                              Revenue  Capital  Total Revenue  Capital  Total
                                £'000    £'000  £'000   £'000    £'000  £'000

Gains on Investments                -   10,047 10,047       -      313    313
Income:
Dividend and Interest Income      431        -    431     388        -    388
Rental Income                   3,101        -  3,101   1,659        -  1,659
Other operating income          5,057        -  5,057     195        -    195

                                8,589   10,047 18,636   2,242      313  2,555

Other expenses                 (2,405)         (2,405)   (694)       -   (694)

Net return before finance costs
and taxation                    6,184   10,047 16,231   1,548      313  1,861

Interest payable and 
similar charges                (1,513)       - (1,513)   (822)       -   (822)
Discount on loan acquired         525        -    525       -        -      -

Return on ordinary activities 
before taxation                 5,196   10,047 15,243     726      313  1,039
Taxation                           (6)             (6)      1        -      1

Return on ordinary activities after
taxation attributable to equity
shareholders                    5,190   10,047 15,237     727      313  1,040

Dividend - Equity shares          (64)       -    (64)    (42)       -    (42)
Transfer to reserves            5,126   10,047 15,173     685      313    998

Basic return 
per Ordinary Share              122.4p  237.0p 359.4p    17.2p     7.4p  24.6p

Diluted return 
per Ordinary Share              115.1p  222.9p 338.0p    16.6p     7.1p  23.7p

Notes
(i)   The revenue column of this statement is the consolidated profit and loss
      account of the group.

(ii)  In accordance with the Company's accounting policies the above figures
      take into account the results of significant investments
      only to the extent of dividends received amounting to £45,520.

(iii) Dividends - Ordinary shares:
      - proposed final dividend of 1.5p per
        share (1999: 1.0p) payable on
        22nd June, 2001 to shareholders 
        on the register at 18th May, 2001.                                      
                                                   64                      42

(iv)  The summary of results for the year ended 31 st December, 2000 does not
      constitute statutory accounts within the meaning of s240 of the Companies 
      Act 1985. The full statutory accounts which will be available to          
      shareholders by 18th May, 2001 have not been reported on by the Company's 
      auditors and have not been delivered to the Registrar of Companies . Full 
      accounts in respect of the year ended 31 st December, 1999 have been      
      delivered to the Registrar of Companies and the Auditor's Report on
      those accounts was unqualified.

(v)   Basic revenue and capital returns per ordinary share are based on the net
      revenue return on ordinary activities before deduction of dividends of    
      £5,190,000 (1999:£727,000) and on the capital return of £10,047,000       
      (1999: £313,000) respectively, and on 4,239,712 (1999: 4,238,000) ordinary
      shares being the weighted average of those in issue during the year.

      The diluted revenue and capital returns per ordinary share are based on
      the net revenue return on ordinary activities before deduction of         
      dividends of £5,190,000 (1999: £727,000) and on the net capital return of 
      £10,047,000 (1999: £313,000) respectively, and on 4,506,941 (1999:        
      4,390,507) shares. The number of shares is based upon the weighted average
      number of shares in issue during the year together with 267,229 (1999:    
      152,507) shares deemed to have been issued at nil consideration pursuant  
      to options outstanding.


                              GRESHAM HOUSE plc

                          PRELIMINARY FINAL STATEMENT

                          CONSOLIDATED BALANCE SHEET 
                          as at 31 st December, 2000

                                            2000                  1999
                                           £'000                 £'000

Investments
      Securities                           8,631                 2,580
      Properties                          27,731                27,045

Tangible assets                              485                   485

                                          36,847                30,110

Current assets                            13,131                 6,909

Creditors - amounts falling due
within one year                           10,086                 2,796

Net current assets                         3,045                 4,113

Total assets less current liabilities     39,892                34,223

Creditors - amounts falling due
after more than one year                  15,822                25,339

                                          24,070                 8,884

Capital and reserves
Called up share capital                    1,073                 1,060
Share premium account                        242                   242
Other reserves
      Revaluation reserve                  7,829                 7,829
      Capital reserve - realised          22,918                17,569
      Capital reserve - unrealised         5,195                   497
Revenue reserves                         (13,187)              (18,313)

Equity shareholders' funds                24,070                 8,884

Basic Net Asset Value per ordinary share   560.7p                209.6p

Diluted Net Asset Value per ordinary share 527.8p                202.3p

Notes

      The basic Net Asset Value per ordinary share is calculated by reference
      to the group net assets as at 31st December, 2000 of £24,070,000 (1999:
      £8,884,000) and 4,293,000 (1999: 4,238,000) ordinary shares being the
      number of ordinary shares in issue at the year end.

      The diluted Net Asset Value per ordinary share is calculated by reference
      to the group net assets as at the year end of £24,070,000 (1999:
      £8,884,000) and 4,560,229 (1999: 4,390,507) ordinary shares in issue. The
      number of shares is based upon the number of shares in issue at the year
      end together with 267,229 (1999:152,507) shares deemed to have been
      issued at nil consideration pursuant to the options outstanding at the
      year end in accordance with Financial Reporting Standard No. 14.


                                GRESHAM HOUSE plc
                           PRELIMINARY FINAL STATEMENT

                        CONSOLIDATED CASH FLOW STATEMENT
                    for the Year ended 31st December, 2000

                                            2000                   1999
                                 Notes     £'000                  £'000

Cashflow from operating activities
Investment income received                    55                    103
Interest received                            370                    259
Rental income received                     3,113                  1,541
Other cash receipts/(payments)             3,456                   (766)
Net cash inflow from 
operating activities                 1     6,994                  1,137

Returns on investment and 
servicing of finance
Interest paid on 2.5% Secured
Redeemable Loan Stock, 2001                 (152)                  (153)
Interest paid on property loans           (1,061)                  (607)
Net cash outflow from Investments
and servicing of finance                  (1,213)                  (760)

Capital expenditure and 
financial investment
Purchase of tangible fixed assets            (32)                     -
Purchase of investments                   (1,814)                  (376)
Sales of investments                       5,810                    251
Net loans (advanced)                        (435)                   (13)
Purchase of investment properties           (686)               (12,785)
Purchase of developments in hand          (1,706)                     -
Net cash inflow/(outflow) from capital
expenditure and financial investment       1,137                 12,923

Corporation tax paid                            -                   (64)

Equity dividends paid                        (42)                   (21)

Cash inflow before use of liquid resources
and financing                              6,876                 12,631 

Management of liquid resources
Sale/(acquisition) of listed securities 
held for dealing                             180                   (202)

Financing
Acquisition of 2.5% Secured 
Redeemable Loan Stock
by group company                               -                    (44)
Repayment of loans                        (2,823)                (2,014)
Receipt of loans                               -                 19,770
Share capital issued as a result 
of the exercise of options                    13

Net cash out now from financing           (2,810)                17,712

Increase/(decrease) in cash          3     4,246                  4,879


               RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS

                                            2000                  1999
                                           £'000                 £'000
Issue of ordinary shares at par               13                     -
Retained profit for the year               5,126                   685
Revaluation surplus                            -                 3,840
Net movement on capital reserves          10,047                   313

                                          15,186                 4,838

Shareholders' funds at 1st January         8,884                 4,046

Shareholders' funds at 31st December      24,070                 8,884


                             GRESHAM HOUSE plc

                        PRELIMINARY FINAL STATEMENT

                  NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT 
                      for the Year ended 31st December, 2000

1  Reconciliation of operating profit 
   to operating cash flows.
                                          2000                  1999
                                         £'000                 £'000
   Return on ordinary activities
   before taxation                       5,196                   726
   Interest payable                      1,513                   822
                                         6,709                 1,548
   Depreciation                             31                    11
   Discount on acquisition of loan 
   issued by group undertaking            (525)                    -
   Taxation on franked investment income     -                   (22)
   Corporation tax adjustment               (6)                   22
   Increase in debtors                     (31)                 (850)
   Increase in creditors                   816                   428
   Net cash flow from operating                           
   activities                            6,994                 1,137

2  Reconciliation of net cash flow 
   to movement in net debt

   Increase in cash for the period       4,246                 4,879
   Cash outflow from repayment of debt   2,823                 2,058
   Cash inflow from loans received           -               (19,770)
   Cash outflow(inflow) from 
   increase/(decrease)
   in liquid resources                    (180)                  202

   Change in net debt resulting from
   cash flows                            6,889               (12,631)

   Discount on acquisition of loan issued
   by group undertaking                    525                     -

   Discount on acquisition of loan stock issued
   by group undertaking                      -                    26

   Movement in net debt in the year      7,414               (12,605)

   Net debt at beginning of year       (21,360)               (8,755)
   Balance at end of year              (13,946)              (21,360)

3  Analysis of net debt
                             At 1st       Cash     Other     At 31st
                            January       flow  non-cash    December
                               2000              changes        2000
                              £'000      £'000     £'000       £'000
   Cash in hand and at 
   bank/brokers               4,578     4,229                  8,807
   Overdrafts                  (107)       17                    (90)
                                        4,246

   Debt due within one year    (801)      603     (6,772)     (6,970)
   Debt due after one year  (25,339)    2,220      7,297     (15,822)
                                        7,069

   Current asset investments    309      (180)                   129

                            (21,360)    6,889        525     (13,946)