Interim Results

Gresham House PLC
28 September 2000



                                GRESHAM HOUSE plc

                         

                          CHAIRMAN'S INTERIM STATEMENT

The  results  for  the  half  year ended 30th June, 2000,  as  detailed  in  the
unaudited  Consolidated Statement of Total Return, show  a  return  on  ordinary
activities  after taxation for the combined revenue and capital  accounts  of 
£12,775,000 against £214,000 for the comparable period last year.

Shareholders  will note that rental income has almost doubled since  last  year,
following  our  acquisition of an industrial estate at Knowsley, and  there  has
also  been  a  very significant increase in income from subsidiaries which  was
largely  the result of share dealing profits realised following the exercise  of
an  option in Transense Technologies plc. Interest payable has more than doubled
due to the  borrowings  required to finance the purchase  of  Knowsley.  Other
expenses  include  a  provision  of £77,000 in  respect  of  National  Insurance
contributions payable on the exercise of unapproved share options.

The substantial increase in gains on investments of £8,446,000 for the period to
30th June, 2000 is mostly due to the increase in market value of your Company's
holding  in Transense, which I forecast in last years Annual Accounts.  At  30th
June,  2000 Gresham held 210,000 Ordinary shares in Transense, which  we  still
hold today.

The  Balance Sheet, reflecting in particular the dramatic increase in the  value
of  our  holding in Transense, has changed materially with the basic  net asset
value per ordinary share having increased from 209p at 31st December, 1999  to
511p at 30th June, 2000. Shareholders should be cautioned however that the rate 
of  increase  in  value  achieved in this  half  year  period  reflects  a
particular success which is unlikely to be repeated for the second half  of  the
year.

We  continue to consider proposals to extend the terms of the 2.5% Gresham House
Finance plc Secured Loan Stock beyond 31st December, 2001.

28th September, 2000                         A P Stirling
                                             Chairman
                           GRESHAM HOUSE plc

                    UNAUDITED CONSOLIDATED STATEMENT OF TOTAL RETURN

                            for the Half Year ended 30 June, 2000

                                    6 months to
                                    30th June, 2000
                                    Unaudited

                                    Revenue      Capital       Total
                                    £'000        £'000         £'00

Gains/(losses) on Investments         -          8,446         8,446      

Income:
Dividend and Interest Income          199           -            199   
Rental Income                       1,387           -          1,387 
Income from subsidiaries            4,048           -          4,048  

Other Expenses                       (505)          -           (505)

Net return before finance costs
and taxation                        5,129        8,446        13,575      

Interest payable and similar charges (786)          -           (786)    

Return on ordinary activities before
taxation                            4,343        8,446        12,789    

Taxation                              (14)                       (14)  

Return on ordinary activities after
taxation attributable to equity
shareholders                        4,329        8,446         12,775  

Interim dividend - Equity shares       -           -             -    

Transfer to reserves                4,329        8,446         12,775           
                                             
Basic return per Ordinary Share     102.1p       199.3p        301.4p 


Diluted return per Ordinary Share    95.3p       185.9p        281.2p
                                   
                                   6 months to               6 months to
                                   30th June, 1999           31st December,1999
                                   Unaudited                 Audited
                                 Revenue Capital Total   Revenue Capital Total  
                                 £'000   £'000   £'000   £'000   £'000   £'000

Gains/(losses) on Investments      -      (93)     (93)    -       313     313

Income:
Dividend and Interest Income        86      -       86     388             388
Rental Income                      705      -      705   1,659           1,659
Income from subsidiaries            70      -       70     195             195

Other Expenses                    (341)     -     (341)   (694)           (694)

Net return before finance costs
and taxation                       520   (93)      427   1,548     313   1,861

Interest payable and similar 
charges                          (216)     -      (216)   (822)           (822)

Return on ordinary activities before
taxation                          304    (93)      211     726     313   1,039

Taxation                            3                3       1               1

Return on ordinary activities after
taxation attributable to equity
shareholders                      307    (93)      214     727     313   1,040

Interim dividend - Equity shares   -      -         -      (42)            (42)

Transfer to reserves              307    (93)      214     685     313     998
                                                          
Basic return per Ordinary Share   7.2p  (2.2p)     5.0p   17.2p    7.4p   24.6p

Diluted return per Ordinary Share 7.1p  (2.1p)     5.0p   16.6p    7.1p   23.7p


                         Gresham House plc
                    UNAUDITED CONSOLIDATED BALANCE SHEET

                            as at 30th June 2000

                       30th June, 2000   30th June, 1999    31st December, 1999
                       (Unaudited)       (Unaudited)         (Audited)
                        £'000             £'000               £'000

Investments
     Securities            7,067            2,122            2,580
     Properties           27,620           10,520           27,045

Tangible assets              495              391              485
                          35,182           13,033           30,110

Current assets            11,689            6,578            6,909

Creditors - amounts failing due
within one year            2,949            1,781            2,796

Net current assets         8,740            4,797            4,113

Total assets less current 
liabilities               43,922           17,830           34,223

Creditors - amounts failing due
after more than one year  22,263           13,570           25,339
                          21,659            4,260            8,884

Capital and reserves
Called up share capital    1,060            1,060            1,060
Share premium account        242              242              242
Other reserves
     Revaluation reserve   7,829            3,989            7,829
     Capital reserve
           - realised     21,812           17,526           17,569
     Capital reserve 
           - unrealised    4,700              134              497
Revenue reserves         (13,984)         (18,691)         (18,313)

Equity shareholders' funds21,659            4,260            8,884

Net asset value per ordinary share
Basic                     511.1 p          100.5p            209.6p

Diluted                   476.8p            99.8p            202.3p


                                Gresham House plc
                       UNAUDITED GROUP CASH FLOW STATEMENT

                            for the Half Year to 30th June, 2000

                        30th June, 2000   30th June, 1999   31st December,1999
                          (Unaudited)       (Unaudited)         (Audited)
                           £'000             £'000               £'000

Cashflow from operating 
activities

Investment income received    14               41                103
Deposit interest received    183               36                259
Rental income received     1,503              848              1,541
Other cash receipts/
(payments)                 4,052             (304)              (766)

Net cash inflow from 
operating activities       5,752              621              1,137
(Note 2)

Returns on investment and servicing of finance
Interest paid on 2.5% Secured
Redeemable Loan Stock, 2001  (76)             (77)              (153)
Interest paid on property 
loans                       (695)            (139)              (607)

Net cash outflow from Investments
and servicing of finance    (771)            (216)              (760)

Capital expenditure and financial investment
Purchase of tangible assets  (20)               -                 -
Purchase of investments     (997)            (143)              (376)
Sales of investments       4,431               99                251
Net loans advanced          (378)            (213)               (13)
Purchase of freehold property(576)             -             (12,785)

Net cash inflow/(outflow) from capital
expenditure and financial 
investment                  2,460            (257)           (12,923)

Corporation tax paid           -               -                 (64)

Equity dividends paid        (42)             (21)               (21)

Cash inflow /(outflow) before use of liquid
resources and financing    7,399              127            (12,631)

Management of liquid resources
Acquisition of listed 
securities held for dealing (93)             (17)              (202)
Financing
Acquisition of 2.5% 
Secured Redeemable Loan Stock
by group company              -                -                (44)
Repayment of loans        (2,624)              -             (2,014)
Receipt of loans              -             5,554            19,770
                          (2,624)           5,554            17,712

Increase in cash           4,682            5,664             4,879
(Note 3)


                    RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS

                         6 months to       6 months to       12 months to
                        30th June, 2000    30th June, 1999  31st December, 1999
                         £'000              £'000            £'000

Retained profit for the 
period                     4,329               307                685
Revaluation surplus           -                 -               3,840
Net movement on capital 
 reserves                  8,446               (93)               313
                          12,775               214              4,838

Shareholders' funds at beginning
of period                  8,884             4,046              4,046

Shareholders' funds at end
 of period                21,659             4,260              8,884


                        NOTES TO THE INTERIM STATEMENT

1    Basis of Preparation
(a)  The interim statement has been prepared in accordance with the accounting
policies set out in the Group's 1999 Annual Report and Accounts.

(b)  The interim statement is neither audited nor reviewed. The full year
figures for 1999 do not comprise statutory accounts for the purpose of Section
240 of the Companies Act 1985 and have been extracted from the Group's full
accounts for that year, which received an unqualified Auditors' Report and did
not contain a statement under section 237(2) or (3) of the Companies
Act 1985. The accounts have been filed with the Registrar of Companies.

(c)  Following the Company's normal accounting practice the figures do not take
into account the results of significant investments except for dividends
received which amounted to £2,119 (1999: £2,146)

2    Reconciliation of operating profit to operating cash flows.

                          6 months to      6 months to      12 months to
                          30th June, 2000  30th June, 1999  31st December,1999
                          £'000            £'000            £'000

   Return on ordinary activities
   before taxation            4,343        304                726
   Interest payable             786        216                822
                              5,129        520              1,548

   Depreciation                  10          5                 11
   Provision against loans and
   guarantees                   145         18                 -
   Taxation on investment income (3)       (17)               (22)
   Corporation tax adjustment   (10)        -                  22
   Decrease/(increase) in debtors 211      198               (850)
   Increase /(decrease) in 
                 creditors      270       (103)               428

   Net cash flow from operating
   activities                 5,752        621              1,137

3 Reconciliation of net cash flow to movement in net debt

  Increase in cash for the 
  period                      4,682      5,664              4,879
  Cash outflow from repayment 
  of debt                     2,624        -                2,058
  Cash inflow from loans 
  received                     -        (5,554)           (19,770)
  Cash outflow from increase in liquid
  resources                      93         17                202

  Change in net debt resulting from
  cash flows                  7,399        127            (12,631)

  Discount on acquisition of 
  loan/ loan stock
  by group undertaking         525           -                 26

  Movement in net debt in 
  the period                 7,924         127            (12,605)

  Net debt at beginning of 
  period                   (21,360)     (8,755)            (8,755)

  Balance at end of period (l3,436)     (8,628)           (21,360)

4  Analysis of net debt                        Other
                              At 1st     Cash  non-cash    At 30th
                          January, 2000  Flow  changes     June,2000
                              £'000      £'000  £'000      £'000

  Cash at bank                4,578      4,665              9,243
  Overdrafts                   (107)        17                (90)
                                         4,682

  Debt due within one year     (801)       404    (331)      (728)
  Debt due after one year   (25,339)     2,220     856    (22,263)
                                         7,306

  Current asset investments     309         93                402
                            (21,360)     7,399     525    (13,436)



It is proposed that copies of the Group's Interim Results will be sent to
shareholders by 4th October, 2000 and will be available at the registered
office, 36 Elder Street, London E1 6BT, from that date.