Final Results

GRESHAM HOUSE PLC
PRELIMINARY FINANCIAL STATEMENT
YEAR ENDED 31 DECEMBER 2006

Gresham House plc (GHE.L), the property and early-stage investment trust, today
announces its  preliminary results for the year ended 31st December 2006.

Highlights

*  Market value of property portfolio up £6.3 million to £40.5 million

*  Value of the investment securities up by £571,000 (at £13.3 million) despite
net reduction of investments during period of £924,000.

*  Capital account up by £5,753,000 delivering a two year gain on the capital
account of £13,152,000.

*  Revenue account profit for year of £669,000 against £140,000 for 2005.

*  Net asset value at 31st December 2006 was 902.4p against a figure of 775.7p
at the end of 2005 representing a two year rise in basic net asset value of 44%.

*  Planning applications being sought on sites in Dorking and Speke.

*  Board recommends a final dividend of 6p per share against 5p for 2005.

Fred Stirling, Chairman of Gresham House plc, commented:
"We are looking forward to increased performances from a number of our AIM
quoted investments and the introduction of three of our unquoted investments
onto PLUS Market or AIM.  This, together with the present planning opportunities
in the property portfolio encourages the Board to feel confident in the
continued material growth of your Company for the foreseeable future."

The Company celebrates its 150th anniversary since incorporation on 14th May
1857.

- ends -

Further information:
Fred Stirling (Chairman  Gresham House) 020 7588 7352
Toby Hall/Jade Mamarbachi (gth media relations) 020 7153 8039/8035










GRESHAM HOUSE PLC
PRELIMINARY FINANCIAL STATEMENT
YEAR ENDED 31 DECEMBER 2006

CHAIRMAN'S STATEMENT

Dear Shareholder,

The results for the year to 31st December 2006 show a second consecutive year of
significant improvement to the net asset value of the company.  The revenue
account showed a profit of £669,000 (2005: £140,000) whilst the capital account
rose by £5,753,000 making a gain over the last two years on the capital account
of £13,152,000.  As a consequence the net asset value at 31st December 2006 was
902.4p against a figure of 775.7p at the end of 2005.  This represents a two
year rise in basic net asset value of 44%

Our significant property investment in Speke, made in October 2004, commenced
generating rental income in the year.  Total space let rose to 35% by the year
end and further negotiations are continuing with potential tenants.  We are
confident of the long term success of this investment which we expect to further
enhance net asset value in future years.

The current market value of the Group's property portfolio has risen from £34.2
million as at 31st December 2005 to £40.5 million at the end of 2006. This
increase reflects the transfer of an existing property from current assets to
property investments, a surplus on revaluation of the property portfolio as at
the year end, and expenditure on existing properties during the year less the
insurance proceeds from the property at Knowsley damaged by fire. Completion of
the rebuild of this latter property is expected to be in the second half of the
current year.

Our site in Vincent Lane, Dorking has been included in the Accounts based on
existing use value of £2.9 million. However we have agreed in principle to sell
this site to a leading residential development company, conditional on
residential planning being obtained, for the sum of £8.2 million.   A successful
planning application is expected to be obtained within two years.

During the year we acquired, for a nominal consideration, a 35% equity interest
in an eleven acre site on Speke Boulevard, immediately adjacent to our existing
eighteen acre Speke site held within New Capital Developments Ltd.  We have an
option to increase this stake to between 52.5% and 55% during the course of the
next two years in consideration for arranging the refinancing of an existing
loan in the JV company of approximately £1.8 million. It is your Board's
intention to seek planning permission for these two sites and should your
Company be successful in obtaining an application for change of use to A1
Retail, there will be a very significant increase in the value of your Group's
interest.

Since the year end we have sold our interest in a seven acre sports field at
Speke for £2.3 million which had been acquired in 2004 for £1.5 million.

Last year I explained the benefits of demerging the Group's property portfolio
into a Real Estate Investment Trust (REIT). Unfortunately this plan has not been
able to be progressed since, as reported to shareholders in an announcement
dated 6th February this year, Parkwood Property Group LLP, who purchased 29.9%
of your Company's shares in November 2006, have indicated that they would not
support any resolution to demerge the Group's property interest into a REIT,
such a resolution requiring a 75% majority vote.

As shareholders can see from page 29 of the Accounts the value of the investment
securities in the portfolio has increased over the year by £571,000, this being
after a net reduction of investments in the portfolio during the year of
£924,000.  The principle performers from the portfolio during the year were
SpaceandPeople, Image Scan Holdings, InvestinMedia, Plus Markets Group, Egdon
Resources and Welsh Industrial Investment Trust.  Since the year end Hallin
Marine, Image Scan Holdings, SpaceandPeople and Transense Technologies have each
outperformed the FTSE share index. In addition, Mount Burgess Mining has just
announced that it has received an independent report indicating significant
realisable base metal resources which could amount to an in-ground gross value
in the order of US$981 million. In the event this proves correct, your Company's
4.5% holding in Mount Burgess, which cost £351,000, should materially increase
in value.

We are looking forward to increased performances from a number of our AIM quoted
investments and the introduction of three of our unquoted investments onto PLUS
Market or AIM.  This, together with the present planning opportunities in the
property portfolio referred to above, encourages the Board to feel confident in
the continued material growth of your Company for the foreseeable future. We are
therefore pleased to recommend a final dividend of 6p per share against 5p last
year.

We are proposing to hold the Annual General Meeting shortly after your Company's
150th anniversary since incorporation on 14th May 1857.  We believe we are the
oldest listed company on the London Stock Exchange and your Board looks forward
to meeting any shareholder who would care to attend the Annual General Meeting
following which we would like you to join us in a toast to celebrate our
Company's unique achievement.

18th April 2007                                                   A.P Stirling
                                                                      Chairman






































GRESHAM HOUSE PLC
PRELIMINARY FINAL STATEMENT
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2006

                                         2006                      2005
                              Revenue Capital   Total   Revenue Capital   Total
                                £'000   £'000   £'000     £'000   £'000   £'000
Income:
Dividend and Interest income      346       -     346       329       -     329
Rental income                   2,664       -   2,664     2,098       -   2,098
Other operating income            276       -     276       323       -     323
                                -----   -----   -----     -----   -----   -----
Total Revenue                   3,286       -   3,286     2,750       -   2,750
Gains on investments held at
fair value                          -   1,495   1,495         -   2,824   2,824

Movement in fair value of
property investments                -   5,286   5,286         -   6,144   6,144
                                -----   -----   -----     -----   -----   -----
                                3,286   6,781  10,067     2,750   8,968  11,718
                                -----   -----   -----     -----   -----   -----
Expenses
Other operating expenses       (1,640)      -  (1,640)   (1,691)      -  (1,691)
Finance costs                  (1,213)      -  (1,213)   (1,151)      -  (1,151)
                                -----   -----   -----     -----   -----   -----
                               (2,853)      -  (2,853)   (2,842)      -  (2,842)
                                -----   -----   -----     -----   -----   -----
Profit/(loss) before taxation     433   6,781   7,214       (92)  8,968   8,876
Taxation                           17     128     145         -  (1,240) (1,240)
                                -----   -----   -----     -----   -----   -----
Profit/(loss) for the year        450   6,909   7,359       (92)  7,728   7,636
                                =====   =====   =====     =====   =====   =====
Attributable to:-
Equity holders of the parent      669   5,753   6,422       140   7,399   7,539
Minority interest                (219)  1,156     937      (232)    329      97
                                -----   -----   -----     -----   -----   -----
                                  450   6,909   7,359       (92)  7,728   7,636
                                =====   =====   =====     =====   =====   =====

Basic earnings per ordinary Share               131.7p                    154.8p
                                                =====                     =====
Diluted earnings per ordinary Share             131.4p                    154.7p
                                                =====                     =====























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

(ii)  Dividends - Ordinary shares:
      proposed final dividend of 6p per share (2005: 5p)
      payable on 22 June 2007 to shareholders on the
      register at 25 May 2006                    293                       244
                                               =====                     =====

(iii)The summary of results for the year ended 31 December 2006 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 3
May 2006 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 December 2005 have been delivered to the Registrar of Companies and the
Auditor's Report on those accounts was unqualified.

(iv)Basic earnings per ordinary share are based on the return attributable to
equity shareholders of £6,422,000 (2005: £7,539,000), and on 4,874,587
(2005: 4,870,716) ordinary shares being the weighted average number of those in
issue during the year.

The diluted earnings per ordinary share is based on the return attributable to
equity shareholders of £6,422,000 (2005:£7,539,000)and on 4,887,061 (2005:
4,870,628) shares being the weighted average number of shares in issue during
the year together with 12,474 (2005: 3,912) shares deemed to have been issued at
nil consideration as a result of options granted or pursuant to the terms of the
8% Secured Loan Stock issued by Gresham House Finance plc.






































GRESHAM HOUSE PLC
PRELIMINARY FINAL STATEMENT
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                       YEAR ENDED 31 DECEMBER 2006
                          Ordinary             Share
                             share    Share    based  Capital Retained
                           capital  premium payments  reserve earnings    Total
                             £'000    £'000    £'000    £'000    £'000    £'000
Balance at 31 Dec 2005       1,218      822       12   44,155   (8,401)  37,806
Profit for the period            -        -        -    5,753      669    6,422
Ordinary dividend paid           -        -        -        -     (244)    (244)
Issue of shares                  1        9        -        -        -       10
Share based payments             -        -       16        -        1       17
                            ------   ------   ------   ------   ------   ------
Balance at 31 Dec 2006       1,219      831       28   49,908   (7,975)  44,011
                            ======   ======   ======   ======   ======   ======

                                       YEAR ENDED 31 DECEMBER 2005
                          Ordinary             Share
                             share    Share    based  Capital Retained
                           capital  premium payments  reserve earnings    Total
                             £'000    £'000    £'000    £'000    £'000    £'000
Balance at 31 Dec 2004       1,212      761        -   36,756   (8,346)  30,383
Profit for the period            -        -        -    7,399      140    7,539
Ordinary dividend paid           -        -        -        -     (195)    (195)
Issue of shares                  6       61        -        -        -       67
Share based payments             -        -       12        -        -       12
                            ------   ------   ------   ------   ------   ------
Balance at 31 Dec 2005       1,218      822       12   44,155   (8,401)  37,806
                            ======   ======   ======   ======   ======   ======


GRESHAM HOUSE PLC
PRELIMINARY FINAL STATEMENT
UNAUDITED CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2006
                                                   2006           2005
Assets                                            £'000          £'000
Non current assets
  Investments held at fair value                 13,345         12,774
  Property investments                           40,469         34,226
  Property, plant and equipment                     500            512
                                                 ------         ------
Total non current assets                         54,314         47,512
                                                 ------         ------
Current assets
  Trade and other receivables                       568            389
  Accrued income and prepaid expenses               342          1,170
  Other current assets                            5,607          8,904
  Cash and cash equivalents                         991            863
                                                 ------         ------
                                                  7,508         11,326
                                                 ------         ------
Total assets                                     61,822         58,838
                                                 ------         ------
Current liabilities
  Trade and other payables                        1,498          2,615
  Short term borrowings                           6,765          9,549
  Current tax payable                                 -             17
                                                 ------         ------
Total current liabilities                         8,263         12,181
                                                 ------         ------
Total assets less current liabilities            53,559         46,657
Non current liabilities
  Long term borrowings                            6,337          6,449
  Deferred taxation                               1,503          1,631
                                                 ------         ------
                                                  7,840          8,080
                                                 ------         ------
Net assets                                       45,719         38,577
                                                 ======         ======
Capital and reserves
  Ordinary share capital                          1,219          1,218
  Share premium                                     831            822
  Share based payments                               28             12
  Capital reserve                                49,908         44,155
  Retained earnings                              (7,975)        (8,401)
                                                 ------         ------
Equity attributable to equity shareholders       44,011         37,806
Minority interest                                 1,708            771
                                                 ------         ------
Total equity                                     45,719         38,577
                                                 ======         ======

Basic net asset value per ordinary share          902.4p         775.7p
                                                 ======         ======
Diluted net asset value per ordinary share        900.1p         775.1p
                                                 ======         ======
Notes
Basic net asset value per ordinary share is based on equity attributable to
equity shareholders at the year end and on 4,876,880 (2005: 4,873,880) ordinary
shares  being the number of ordinary shares in issue at the year end.
Diluted net asset value per ordinary share is based on equity attributable to
equity shareholders at the year end and on 4,889,354 (2005: 4,877,792)ordinary
shares. The number of shares is based upon the number of shares in issue at the
year end together with 12,474(2005: 3,912) shares deemed to have  been issued at
nil consideration as a result of options granted or pursuant to the maximum
number of shares that can be issued under the terms of the 8% Secured Loan Stock
issued by Gresham House Finance plc.
GRESHAM HOUSE PLC
PRELIMINARY FINAL STATEMENT
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2006
                                            2006     2006       2005     2005
                                           £'000    £'000      £'000    £'000
Cashflow from operating activities
Investment income received                   180                 117
Interest received                            166                 212
Rental income received                     2,530               2,145
Other cash payments                       (1,958)             (1,235)
                                          ------              ------
Net cash generated from operations                    918               1,239

Interest paid on 8% Secured Redeemable
Loan Stock 2006                             (342)               (293)
Interest paid on property loans             (929)               (754)
                                          ------              ------
                                                   (1,271)             (1,047)
                                                   ------              ------
Net cash flows from operating activities             (353)                192

Cash flows from investing activities
Purchase of investments                   (1,693)             (2,295)
Sale of investments                        2,617               1,106
Purchase of investment properties           (490)             (1,532)
Insurance proceeds received                3,700                   -
Disposal of investment properties              -                 105
Purchase of developments in hand            (523)               (652)
                                          ------              ------
                                           3,611              (3,268)
Cash flows from financing activities
Repayment of loans                        (2,360)             (3,484)
Repayment of 8% Loan Stock                (3,662)                  -
Receipt of loans                           3,126                 321
Share capital issued                          10                  67
Equity dividends paid                       (244)               (195)
                                          ------              ------
                                                   (3,130)             (3,291)
Increase/(Decrease) in cash and cash               ------              ------
equivalents                                           128              (6,367)
Cash and cash equivalents at start of
period                                                863               7,230
Cash and cash equivalents at end of                ------              ------
period                                                991                 863
                                                   ======              ======


NOTES TO THE CONSOLIDATED CASHFLOW STATEMENT
RECONCILIATION OF OPERATING PROFIT TO OPERATING CASH FLOWS

                                                  2006            2005
                                                 £'000           £'000
Revenue return before taxation                     433             (92)
Interest payable                                 1,213           1,151
Share based payments                                17              12
Depreciation of property, plant and equipment       12              13
                                                ------          ------
                                                 1,675           1,084
Decrease/(increase) in current assets              300            (140)
(Decrease)/increase in current liabilities      (1,057)            295
                                                ------          ------
                                                   918           1,239
                                                ======          ======



GRESHAM HOUSE PLC
PRELIMINARY FINAL STATEMENT
UNAUDITED SEGMENTAL REPORTING

                                         Property
                         Investment    Investment    Elimination   Consolidated
                        2006   2005   2006   2005   2006    2005   2006    2005
                       £'000  £'000  £'000  £'000  £'000   £'000  £'000   £'000
Revenue
External income          369    390  2,751  2,148      -       -  3,120   2,538
Inter - segment income 1,920  1,556    335    120 (2,255) (1,676)     -       -
                       -----  -----  -----  -----  -----   -----  -----   -----
Total revenue          2,289  1,946  3,086  2,268 (2,255) (1,676) 3,120   2,538
                       =====  =====  =====  =====  =====   =====  =====   =====
Gains on investments
at fair value          1,495  2,824      -      -      -       -  1,495   2,824
Gains on property
investments at fair
value                      -      -  5,286  6,144      -       -  5,286   6,144
Proceeds of disposal
of investment properties   -      -      -  2,050      -       -      -   2,050
Carrying value of disposal
of investment properties   -      -      - (2,050)     -       -      -  (2,050)
                       -----  -----  -----  -----  -----   -----  -----   -----
Total income and gains 3,784  4,770  8,372  8,412 (2,255) (1,676) 9,901  11,506
                       =====  =====  =====  =====  =====   =====  =====   =====
Segment expenses          32   (115)  (744)  (805)     -       -   (712)   (920)
                       -----  -----  -----  -----  -----   -----  -----   -----
Segment profit         3,816  4,655  7,628  7,607 (2,255) (1,676) 9,189  10,586
                       =====  =====  =====  =====  =====   =====
Unallocated corporate expenses                                     (928)   (771)
                                                                  -----   -----
Operating profit                                                  8,261   9,815
Interest expense                                                 (1,213) (1,151)
Interest income                                                     166     212
                                                                  -----   -----
Profit before taxation                                            7,214   8,876
                                                                  =====   =====

All revenue is derived from operations within the United Kingdom.