Final Results

GRESHAM HOUSE PLC
PRELIMINARY FINANCIAL STATEMENT
YEAR ENDED 31 DECEMBER 2007

Gresham House plc (GHE.L), the property and early-stage investment trust,
Today announces its preliminary results for the year ended 31 December 2007.

CHAIRMAN'S STATEMENT

The results for the year to 31 December 2007 show a loss in the revenue account
amounting to £993,000 against a comparative profit for 2006 of £669,000.

The capital account shows a loss after taxation of £1,879,000 which is largely
attributable to a decline in the valuation of properties as at the year end in
line with widespread market falls offset by gains of £1,000,000 generated from
the investment portfolio during the same period.

As a consequence of these results the basic net asset value as at 31 December
2007, was 837.9p compared with 902.4p at the end of 2006.

The revenue losses for the year primarily arose as a result of the costs arising
from the lengthy discussions throughout the year with Parkwood Property
Investments LLP ("Parkwood") on various abortive proposals culminating in the
General Meeting ("GM") held on the 21 January 2008; the provision made against
the Group's investment in its associate, New Capital (Speke) Limited, and
increased costs at the property known as Southern Gateway in Speke, Liverpool.
In addition provisions have had to be made against a six acre site at Knowsley
relating to issues arising with a former executive director of the property
subsidiaries who is currently seeking to frustrate our attempts to dispose of
that property. The relevant companies in the Group have commenced proceedings
against him and against the company which it is alleged he used as a vehicle to
purchase an adjacent property in breach of his duties to those companies. From
the revenue prospective, the reduction in rental income in 2007 was largely due
to the property at Deacon Park, Knowsley, which was destroyed by fire and
remains empty, making no contribution to income for the year.

Whilst Southern Gateway in Speke, Liverpool has generated a further increase in
rent over the past year, there still remains some 200,000 sq. ft. to be let and
your Board is pursuing negotiations on the sale of this site subject to
planning.  In September 2007 your Company announced that it had entered into
non-binding heads of terms for the sale of this site together with our
investment in an associated company, which owns another site adjoining Southern
Gateway, for an aggregate £61 million subject to various planning permissions
being obtained.  However, following the publicity regarding this site generated
around the time of the requisition of the GM by Parkwood the prospective buyer
withdrew from the transaction.  Negotiations continue with other parties with a
view to securing a sale at a satisfactory value.

During 2007 Wolden Estates Limited entered into a conditional sale agreement
with Linden Limited under which, subject to achieving certain planning
permissions, they will acquire the Group's property interests at Vincent Lane,
Dorking for a consideration of £8.2 million against the valuation at 31 December
2007 of £3.29 million. Linden Limited has made the necessary planning
application which is progressing and we are hopeful that the sale will complete
within the next twelve months.

Gresham's investment portfolio increased 4.8% over the year, a satisfactory
performance when compared with the FTSE All Share index which increased by 1.75%
over the same period. As at 31 March 2008 the value of the investment portfolio
had decreased by 2% since year end but this is against a fall in the FTSE All
Share index of nearly 11%. Our best performers were SpaceandPeople up 105%,
Hallin Marine up 104%, BATS up 37% and Egdon Resources up 20%.  The worst
performers of the top ten investments held at the year end were Image Scan down
64% and Avesco down 31%.  We continue to hold these latter investments in
anticipation of seeing a recovery during this year.

In view of the exceptional losses incurred in the revenue account the Board has
reviewed its past policy of progressive dividends and this year recommends a
final dividend of 5p per share as against 6p last year.

Shareholders will recall that it had been your Board's intention to divest the
Group of its property assets into a REIT.   This intention was thwarted by
Parkwood who made it clear that they would use their shareholder votes,
comprising almost 30% of the Company's issued share capital, to defeat the
necessary Special Resolution.  In these circumstances the Board has reviewed its
future strategy and has decided to realise the Group's entire portfolios of both
investments and property over a period of approximately five years. Your Board
is seeking the appointment of an experienced property director to assist in this
objective.

Such a change in your Company's investment policy will require the approval of
shareholders and the appropriate ordinary resolution will be proposed as Special
Business at the forthcoming Annual General Meeting. This of course will not
preclude the Board from making short term investments should attractive
opportunities arise and, with this in mind, your Board is also seeking
shareholder approval to give your directors authority to issue new shares
in the future if appropriate.

The Company also wishes to take this opportunity to bring the Articles of
Association of the Company into line with current practice in particular
following the Companies Act 2006. Further information regarding the changes
being proposed will be found in the appendix attached to the Notice of the
Meeting.

The Board and I wish to thank those shareholders who supported us at the General
Meeting held in January which called for the removal of the majority of your
Board and trust that those shareholders will continue to support the existing
Board to enable it to pursue a policy of progressive asset realisation in a
controlled fashion over the next few years.

29 April 2008                                                     A.P Stirling
                                                                      Chairman

Further information:

Freddie Stirling (Chairman Gresham House plc) 020 7456 9600

Toby Hall / Christian Pickel (gth media relations) 020 7153 8039/8036



















GRESHAM HOUSE PLC
PRELIMINARY FINAL STATEMENT
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2007

                                         2007                      2006
                              Revenue Capital   Total   Revenue Capital   Total
                                £'000   £'000   £'000     £'000   £'000   £'000
Income:
Dividend and Interest income      370       -     370       346       -     346
Rental income                   2,339       -   2,339     2,664       -   2,664
Other operating income             92       -      92       276       -     276
                                -----   -----   -----     -----   -----   -----
Total Revenue                   2,801       -   2,801     3,286       -   3,286
Gains on investments held at
fair value                          -   1,000   1,000         -   1,495   1,495
Movement in fair value of
property investments                -  (4,085) (4,085)        -   5,286   5,286
                                -----   -----   -----     -----   -----   -----
                                2,801  (3,085)   (284)    3,286   6,781  10,067
                                -----   -----   -----     -----   -----   -----
Expenses
Other operating expenses       (2,650)      -  (2,650)   (1,640)      -  (1,640)
Share of associates operating
Loss                             (169)      -    (169)        -       -       -
Finance costs                    (991)      -    (991)   (1,213)      -  (1,213)
                                -----   -----   -----     -----   -----   -----
                               (3,810)      -  (3,810)   (2,853)      -  (2,853)
                                -----   -----   -----     -----   -----   -----
(Loss)/profit before taxation  (1,009) (3,085) (4,094)      433   6,781   7,214
Taxation                            -     655     655        17     128     145
                                -----   -----   -----     -----   -----   -----
(Loss)/profit for the year     (1,009) (2,430) (3,439)      450   6,909   7,359
                                =====   =====   =====     =====   =====   =====
Attributable to:-
Equity holders of the parent     (993) (1,879) (2,872)      669   5,753   6,422
Minority interest                 (16)   (551)   (567)     (219)  1,156     937
                                -----   -----   -----     -----   -----   -----
                               (1,009) (2,430) (3,439)      450   6,909   7,359
                                =====   =====   =====     =====   =====   =====

Basic earnings per ordinary Share               (58.9p)                   131.7p
                                                =====                     =====
Diluted earnings per ordinary Share             (58.9p)                   131.4p
                                                =====                     =====






















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 5p per share (2006: 6p)
      payable on 27 June 2008 to shareholders on the
      register at 30 May 2008                    244                       293
                                               =====                     =====

(iii)The summary of results for the year ended 31 December 2007 does not
constitute statutory accounts within the meaning of s240 of the Companies Act
1985. The financial information has been extracted from the Group's full
statutory accounts for the year ended 31 December 2007 on which the auditors
have given an unqualified audit report.  The full statutory accounts will be
available by 9 May 2008 for posting to shareholders and delivery to the
Registrar of Companies. Full accounts in respect of the year ended 31 December
2006 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 net loss attributable to
equity shareholders of £2,872,000 (2006: net gain of £6,422,000), and on
4,876,880 (2006: 4,874,587) ordinary shares being the weighted average number of
those in issue during the year.

The diluted earnings per ordinary share is based on the net loss attributable to
equity shareholders of £2,872,000 (2006: net gain of £6,422,000)and on 4,876,880
(2006: 4,887,061) shares being the weighted average number of shares in issue
during the year together with nil (2006:12,474) shares deemed to have been
issued at nil consideration as a result of options granted.







































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

                                       YEAR ENDED 31 DECEMBER 2007
                          Ordinary             Share
                             share    Share    based  Capital Retained
                           capital  premium payments  reserve earnings    Total
                             £'000    £'000    £'000    £'000    £'000    £'000
Balance at 31 Dec 2006       1,219      831       28   49,908   (7,975)  44,011
Loss for the period              -        -        -   (1,879)    (993)  (2,872)
Ordinary dividend paid           -        -        -        -     (293)    (293)
Reserves transfer                -        -        -      277     (277)       -
Share based payments             -        -       16        -        -       16
                            ------   ------   ------   ------   ------   ------
Balance at 31 Dec 2007       1,219      831       44   48,306   (9,538)  40,862
                            ======   ======   ======   ======   ======   ======

                                       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
                            ======   ======   ======   ======   ======   ======





































GRESHAM HOUSE PLC
PRELIMINARY FINAL STATEMENT
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2007
                                                   2007           2006
Assets                                            £'000          £'000
Non current assets
  Investments - securities                       14,265         13,345
  Property investments                           38,805         40,469
  Property, plant and equipment                     487            500
                                                 ------         ------
Total non current assets                         53,557         54,314
                                                 ------         ------
Current assets
  Trade and other receivables                       497            568
  Accrued income and prepaid expenses               674            342
  Other current assets                            5,972          5,607
  Cash and cash equivalents                       1,337            991
                                                 ------         ------
                                                  8,480          7,508
                                                 ------         ------
Total assets                                     62,037         61,822
                                                 ------         ------
Current liabilities
  Trade and other payables                        1,488          1,498
  Short term borrowings                           7,568          6,765
                                                 ------         ------
Total current liabilities                         9,056          8,263
                                                 ------         ------
Total assets less current liabilities            52,981         53,559
Non current liabilities
  Long term borrowings                           10,130          6,337
  Deferred taxation                                 848          1,503
                                                 ------         ------
                                                 10,978          7,840
                                                 ------         ------
Net assets                                       42,003         45,719
                                                 ======         ======
Capital and reserves
  Ordinary share capital                          1,219          1,219
  Share premium                                     831            831
  Share based payments                               44             28
  Capital reserve                                48,306         49,908
  Retained earnings                              (9,538)        (7,975)
                                                 ------         ------
Equity attributable to equity shareholders       40,862         44,011
Minority interest                                 1,141          1,708
                                                 ------         ------
Total equity                                     42,003         45,719
                                                 ======         ======

Basic net asset value per ordinary share          837.9p         902.4p
                                                 ======         ======
Diluted net asset value per ordinary share        834.8p         900.1p
                                                 ======         ======
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 (2006: 4,876,880) 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 4,895,003 (2006: 4,889,354)ordinary
shares. The number of shares is based upon the number of shares in issue at the
year end together with 18,123(2006:12,474) shares deemed to have  been issued at
nil consideration as a result of options granted.


GRESHAM HOUSE PLC
PRELIMINARY FINAL STATEMENT
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2007
                                            2007     2007       2006     2006
                                           £'000    £'000      £'000    £'000
Cashflow from operating activities
Investment income received                   193                 180
Interest received                            177                 166
Rental income received                     2,464               2,530
Other cash payments                       (2,344)             (1,958)
                                          ------              ------
Net cash generated from operations                    490                 918

Interest paid on 8% Secured Redeemable
Loan Stock 2006                                -               (342)
Interest paid on property loans             (972)              (929)
                                          ------              ------
                                                     (972)             (1,271)
                                                   ------              ------
Net cash flows from operating activities             (482)               (353)

Cash flows from investing activities
Purchase of investments                   (1,178)             (1,693)
Investment in associate                     (350)                  -
Sale of investments                        1,406               2,617
Purchase of investment properties         (4,727)             (1,130)
Insurance proceeds received                    -               4,340
Disposal of investment properties          2,306                   -
Purchase of developments in hand            (932)               (523)
                                          ------              ------
                                          (3,475)              3,611
Cash flows from financing activities
Repayment of loans                          (422)             (2,360)
Repayment of 8% Loan Stock                     -              (3,662)
Receipt of loans                           5,018               3,126
Share capital issued                           -                  10
Equity dividends paid                       (293)               (244)
                                          ------              ------
                                                   4,303               (3,130)
                                                  ------               ------
Increase in cash and cash equivalents                346                  128
Cash and cash equivalents at start of
period                                               991                  863
Cash and cash equivalents at end of               ------               ------
period                                             1,337                  991
                                                  ======               ======




















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

                                                  2007            2006
                                                 £'000           £'000
Revenue return before taxation                  (1,009)            433
Interest payable                                   991           1,213
Share based payments                                16              17
Depreciation of property, plant and equipment       13              12
Share of associates losses                         169               -
                                                ------          ------
                                                   180           1,675
Decrease in current assets                         339             300
(Decrease) in current liabilities                  (29)         (1,057)
                                                ------          ------
                                                   490             918
                                                ======          ======



















































GRESHAM HOUSE PLC
PRELIMINARY FINAL STATEMENT
SEGMENTAL REPORTING

                                         Property
                         Investment    Investment    Elimination   Consolidated
                        2007   2006   2007   2006   2007    2006   2007    2006
                       £'000  £'000  £'000  £'000  £'000   £'000  £'000   £'000
Revenue
External income          211    369  2,412  2,751      -       -  2,623   3,120
Inter - segment income 1,329  1,920     89    335 (1,418) (2,255)     -       -
                       -----  -----  -----  -----  -----   -----  -----   -----
Total revenue          1,540  2,289  2,501  3,086 (1,418) (2,255) 2,623   3,120
                       =====  =====  =====  =====  =====   =====  =====   =====
Gains on investments
at fair value          1,000  1,495      -      -      -       -  1,000   1,495
(Losses)/gains on
property investments
at fair value              -      - (4,107) 5,286      -       - (4,107)  5,286
Proceeds of disposal
of investment properties   -      -  2,306      -      -       -  2,306       -
Carrying value of disposal
of investment properties   -      - (2,284)     -      -       - (2,284)      -
                       -----  -----  -----  -----  -----   -----  -----   -----
Total income and gains 2,540  3,784 (1,584) 8,372 (1,418) (2,255)  (462)  9,901
                       =====  =====  =====  =====  =====   =====  =====   =====
Segment expenses           -     32   (862)  (744)     -       -   (862)   (712)
                       -----  -----  -----  -----  -----   -----  -----   -----
Segment profit/(loss)  2,540  3,816 (2,446) 7,628 (1,418) (2,255)(1,324)  9,189
                       =====  =====  =====  =====  =====   =====
Unallocated corporate expenses                                   (1,787)   (928)
                                                                  -----   -----
Operating (loss)/profit                                          (3,111)  8,261
Share of associate's loss                                          (169)      -
Interest expense                                                   (991) (1,213)
Interest income                                                     177     166
                                                                  -----   -----
(Loss)/profit before taxation                                    (4,094)  7,214
                                                                  =====   =====

All revenue is derived from operations within the United Kingdom.

























The financial statements of the Group and the Company have been prepared in
accordance with International Financial Reporting Standards ("IFRS") as adopted
by the European Union and those parts of the Companies Act 1985 applicable to
companies reporting under IFRS.

The principal accounting policies adopted are set out below. Where
presentational guidance set out in the Statement of Recommended Practice ("the
SORP") for investment trusts issued by the Association of Investment Companies
("the AIC") is consistent with the requirements of IFRS and appropriate in the
context of the Company's activities, the directors have sought to prepare the
financial statements on a basis compliant with the recommendations of the SORP.

The Company has adopted IFRS 7 `Financial Instruments: Disclosure' and the
amendment to IAS 1 `Presentation of financial statements' which are mandatory
for years ending 31 December 2007. This has resulted in additional disclosures
but no impact on reported profit or net assets.

The financial statements highlight that the Group has loans of £7.6 million due
within one year.  Based on directors' forecasts of the group's cash facilities,
the Group will require a loan of £6 million to be refinanced when it falls due
in May 2008. These financial statements have been prepared on a going concern
basis, which assumes that this loan will be renewed on similar terms.

The Board has received confirmation from the bank concerned that it is their
present intention to refinance the loan under similar terms and conditions for a
minimum term of one year, although this will be subject to approval by the
bank's credit committee at the appropriate time.  In the event that this loan is
not renewed, the directors believe that the assets in the subsidiary companies
concerned are of such quality that alternative sources of finance could be
secured, or the assets themselves sold and the loans repaid. However the precise
timetable for securing alternative finance or disposing of assets is not
certain.

The financial statements do not include any adjustment that would result in a
failure to renew this bank loan or not secure alternative financing within the
timescale required.  After making enquiries, and having due regard to the above,
the directors believe that the Group has access to sufficient working capital
for the foreseeable future and therefore remains a going concern.