Interim Results

Highcroft Investments PLC
6 September 2001

                          HIGHCROFT INVESTMENTS PLC

            - Interim Results for the six months to 30 June 2001 -

Chairman's Statement


  * Interim dividend increased by 6.7% to 3.2p per share.

  * Operating profits increased by 2% total income up by 3.5%.

  * Pre tax profit decline reflects the uneven incidence of asset sales.

  * Further strengthening of the property portfolio.

  * Borrowing powers have not been used and the balance sheet remains

    ungeared.

Summary

The stability of these results - a small increase in operating profits and a
virtually unchanged net asset value - is, I believe, a reasonable outcome in a
period when Stock Markets and business confidence have been falling. In the
period under review, (and subsequently) we have continued to upgrade the
quality of our property portfolio and have so far achieved this from our own
resources without recourse to borrowing.

The interim dividend is increased by 6.7% (to 3.2p payable on 29 October),
reflecting our aim of raising the return to shareholders in real terms.

Your Board is committed to the long-term enhancement of shareholders'
investment and our current financial strength provides us with a solid
platform for progress.

Operating Activities

Operating profit, for the six months to 30 June 2001, was £699,000 a rise of
2% on the equivalent period. This increase has been achieved against a
background of falling Stock Markets, growing business uncertainty and falling
interest rates.

Total income, including interest receivable rose by 3.5% to £813,000. Net
property income (+2%) continues to represent a relatively high proportion of
total income - 78% against 79% in the first half of 2000 and 67% in 1999. This
is a result of the increased investment in property and the negotiation of
rent reviews. Higher property outgoings include professional fees relating to
the benefits of such negotiations.

Future periods should reflect the benefits of higher rents as we expect a
steady increase in property income. Investment income is expected to increase
also, albeit at a lower rate.

Capital Activities

We made a net investment in listed investments of £121,000 - purchases of £
728,000 and sales of £607,000, compared with £798,000 and £664,000
respectively in 2000.

On the property front, we sold properties for £979,000 (£1,412,000 in 2000).
These consisted of two residential properties with vacant possession, several
long lease residential freeholds producing ground rents only, and two
commercial properties falling below our new criteria for the property
portfolio.

No purchases were made in this period but, subsequently, we have bought a
property in Warrington, Cheshire for £1,775,000. The property comprises a
public house and adjoining retail unit let to Yates Brothers Wine Lodges Plc
for 50 years, with a 25 year break clause. The next rent review is in 2002
with five yearly rent reviews thereafter. The yield is 7.5% on the expected
net rental income of £134,000. This purchase is a further move in the
enhancement of the property portfolio by concentrating on larger, higher
quality assets.

Even after the purchase of the Warrington property, the group still has net
cash. At the AGM in June, shareholders approved updated Articles of
Association, which included greater borrowing powers. These have not yet been
used but we are confident that the enhanced financial resources will enable us
to take advantage of attractive opportunities.

Taxation

Gains on disposals of assets were £8,000 against £164,000 in the equivalent
period last year (£42,000 gains on property, partly offset by losses of £
34,000 on investments). However, the calculation of gains for accounts
purposes is not the basis for tax on capital gains, so tax payable on these
disposals is £175,000. A transfer from realised capital reserve was required
to cover the net loss after tax of £167,000.

Net Asset Value

At 30 June 2001, net asset value was 622p per share (June 2000, 616p) a fall
of 1.4% since 31 December 2000. Listed investments fell £860,000 but this was
mitigated by a property surplus of £97,000 and retained profits of £367,000.

Board

In October 2001, Gavin Kingerlee will retire as Chief Executive and be
succeeded by Jonathan Kingerlee. The Board is delighted that Gavin will
continue to serve the Group in the role of non-executive deputy chairman.
Shareholders will be asked to confirm Jonathan's appointment as Chief
Executive at the AGM in 2002.



R Craig

Chairman

6 September 2001



Group Profit and Loss Account (Unaudited)
for the six months ended 30 June 2001
                                                       First     First     Full
                                                        Half      Half     Year
                                              Note      2001      2000     2000
                                                       £'000     £'000    £'000
Income from fixed asset investments
and other interest receivable
From properties                                          636       619    1,218
From investments, including net interest                 177       167      350
receivable
                                                         813       786    1,568
Administrative expenses                                  114       103      195
Operating profit                                         699       683    1,373
Gains on disposals of assets                     2         8       164      295
Profit on ordinary activities before taxation            707       847    1,668
Taxation                                         3       342       425      674
Profit for the financial period                          365       422      994
Losses on disposals of assets after taxation
taken from realised capital reserve                      167       122       57
Profit available for distribution                        532       544    1,051
Dividends                                        4       165       155      439
Profit retained                                          367       389      612
Earnings per share                               5
Including gains on disposals of assets                   7.1       8.2     19.2
Excluding gains on disposals of assets                  10.3      10.5     20.3


Statement of Total Recognised Gains and Losses
                                                         First    First    Full
                                                          Half     Half    Year
                                                          2001     2000    2000
                                                               Restated
                                                         £'000    £'000   £'000
Profit for the financial                                   365      544     994
period
Unrealised surplus/(deficit) on revaluation of:
                           investment properties            97    1,175   1,520
                           listed and unlisted           (860)       59      36
                           investments
Deferred taxation                                          100        -   (100)
Total recognised gains and losses for the period         (298)    1,778   2,450



Group Balance Sheet (Unaudited)
as at 30 June 2001
                                           30 June     30 June      31 December
                                              2001        2000             2000
                                                      Restated
                                      Note   £'000       £'000            £'000
Fixed assets
Tangible assets                          6  20,513      19,538           21,352
Investments                              7  11,050      11,571           11,855
                                            31,563      31,109           33,207
Current assets
Debtors                                        773       1,805              401
Cash at bank and in hand                     1,058         609              380
                                             1,831       2,414              781
Creditors
Amounts falling due within one year          1,246       1,420            1,276
Net current assets/(liabilities)               585         994            (495)
Deferred taxation                                -           -              100
Total assets less current liabilities       32,148      32,103           32,612
Capital and reserves
Called up share capital                      1,292       1,292            1,292
Revaluation reserve        - property        5,206       5,825            5,647
                           - other           5,137       6,610            6,470
Capital redemption reserve                      95          95               95
Realised capital reserve                    13,677      12,130           12,734
Profit and loss account                      6,741       6,151            6,374
Shareholders' funds                         32,148      32,103           32,612



Group Cash Flow Statement
for the six months ended 30 June 2001
                                                      First     First Full Year
                                                       Half      Half
                                                       2001      2000      2000
                                                      £'000     £'000     £'000
Net cash (outflow)/inflow from operating                767     (723)     1,387
activities
Taxation
Taxation paid                                         (208)     (100)     (620)
Capital expenditure and financial investment
Purchase of fixed assets  - properties                    -         -   (1,688)
                          - listed investments        (728)     (798)   (1,626)
Sale of fixed assets      - properties                  523     1,412     1,667
                          - listed investments          607       664     1,261
Net cash inflow/(outflow) from capital                  402     1,278     (386)
expenditure and financial investment
Net cash outflow from servicing of finance
Dividends paid                                        (284)     (261)     (416)
Increase/(decrease) in                                  677       194      (35)
cash
Reconciliation of operating profit to net
cash flow from operating activities
Operating profit                                        699       683     1,373
(Increase)/decrease in debtors                          115   (1,419)      (15)
Increase/(decrease) in creditors                       (47)        13        29
                                                        767     (723)     1,387

Notes

1. Interim report

This interim report will not appear as an advertisement in any newspaper but
copies are being sent to all shareholders and are available at the company's
registered office. The results for the six months ended 30 June 2001 are
unaudited but have been prepared on the basis of accounting policies
consistent with those set out in the audited report and financial statements
for the year ended 31 December 2000.

The balance sheet at 30 June 2000 has been restated to incorporate the June
2000 asset valuations, which last year were included in the notes, in order to
provide a meaningful comparison with June 2001.

The interim report does not constitute full accounts as defined by the
Companies Act 1985 but should be read in conjunction with the most recent
financial statements. Full accounts for 2000 have been delivered to the
Registrar of Companies, bearing an unqualified audit opinion.

2. Gains on disposals of assets
                                                     First     First Full Year
                                                      Half      Half
                                                      2001      2000      2000
                                                     £'000     £'000     £'000
Gains on disposals of assets arising on sales
of:
Properties                                              42       136       174
Investments                                           (34)        28       121
                                                         8       164       295

3. Taxation
                                         First Half     First Half    Full Year
                                               2001           2000         2000
                                              £'000          £'000        £'000
Corporation tax                                 167            139          322
Corporation tax on disposals of assets          175            286          352
                                                342            425          674

The taxation charge has been based on the estimated effective tax rate for the
full year.

4. Dividends

The Board has declared an ordinary interim dividend of 3.20p per share (2000
3.00p) payable on 29 October 2001 to shareholders registered at 28 September
2001.

5. Earnings per share

The earnings per share calculation for the first half has been made on the
basis of 5,167,240 shares (2000 5,167,240) which is the number of shares in
issue during the period ended 30 June 2001.

In view of the uneven nature of capital disposals, an adjusted earnings per
share has also been presented, based on the profit available for distribution
of £532,000 (2000 £544,000).

6. Tangible assets
Land and buildings (Investment properties)                               Total
                                                                         £'000
Valuation at 1 January 2001                                             21,352
Disposals                                                                (936)
Surplus on revaluation                                                      97
Valuation at 30 June 2001                                               20,513

The directors have used an internal valuation of properties at 30 June 2001,
the basis of which they believe to be consistent with the external valuation
prepared for 31 December 2000.

7. Investments
Listed and unlisted                                                       Total
                                                                          £'000
Valuation at 1 January 2001                                              11,855
Additions                                                                   728
Disposals                                                                 (673)
Deficit on revaluation                                                    (860)
Valuation at 30 June 2001                                                11,050



6 September 2001