Interim Results

Highcroft Investments PLC
05 September 2002

                           HIGHCROFT INVESTMENTS PLC

                              Interim Report for
                               the six months to
                                  30 June 2002


Highcroft Investments PLC

Chairman's Statement

for the six months ended 30 June 2002

-    Interim dividend increased by 9.4% to 3.5p per share

-    Operating profits increased by 3.6%

-    Pre tax profit down by 4% as a result of losses on asset disposals

-    Net assets per share 624p (June 2001 622p) despite Stock Market decline

-    Balance sheet strength supports the revised property strategy

Summary

At the interim stage last year I commented that, despite problems with falling
Stock Markets and business confidence, your company acquitted itself well, and I
think it appropriate to repeat these comments now.  Operating profits and net
assets have risen and our balance sheet remains strong.  The interim dividend is
proposed at 3.5p (2001 3.2p) payable on 28 October 2002.

Operating Activities

Operating profit, for the six months to 30 June 2002, increased by 3.6% to
£724,000 - a result of higher income from our property portfolio and firm
control of administrative expenses albeit offset by lower dividends and interest
receivable.  Property income is now almost 82% of the total; this is likely to
rise further as more emphasis is put on property in line with the policy
statement announced on 14 June 2002.

Capital Activities

In turbulent markets, we made net investments of £372,000 (purchases of £792,000
and sales of £420,000).  At 30 June 2002, there was a deficit on revaluation of
£604,000 - the value at 30 June being £9,389,000.

On the property front, notwithstanding the company's declared policy of
concentrating to a greater extent on the property portfolio, a smaller
commercial property was sold for £447,000.  This is in line with our practice of
disposing of such commercial properties and selling residential properties when
possession becomes available. There was a £460,000 surplus on revaluation of our
property portfolio.

Cash holdings were virtually the same level as at the year end and rose
following the receipt of the property proceeds on completion in July.  Given our
greater emphasis on property investment and modest development opportunities, we
expect to have a moderate level of borrowings in the next 18 months.

Taxation

Taxation has fallen to £152,000 (June 2001 £342,000) incorporating a small rise
in corporation taxes on revenue and a credit on asset disposals.

Net Asset Value

At 30 June 2002, net asset value was 624p per share (against 622p at June 2001
and 620p at 31 December 2001).  This modest increase was accounted for by a fall
of £604,000 in the value of listed investments offset by a property surplus of
£460,000 and retained profits of £365,000.

Highcroft Investments PLC

Chairman's Statement

for the six months ended 30 June 2002


Board

At the Company's Annual General Meeting held on 12 June 2002, shareholders voted
on a poll against the resolutions to re-elect John Hewitt and Tony Phillips as
non executive directors of the Company.  On 20 June 2002, the Highcroft Board
was pleased to announce that it had invited John Hewitt to re-join the Board as
Senior Independent Director, and following his agreement his appointment took
effect immediately.  Shareholders will be asked to confirm his appointment at
the 2003 AGM.

In addition, an amicable agreement was reached with Tony Phillips who, being
close to retirement age, would not have wished to accept reappointment.

The Highcroft Board believes that it is now well placed to pursue the strategy,
announced on 14 June, to the benefit of all shareholders.

The Future

While stock markets have weakened significantly subsequent to the end of the
half year, we believe our balance sheet will enable us to continue to enhance
shareholder value over the medium term as a result of the increased emphasis on
property.  It remains our intention to raise dividends in real terms
year-on-year.


                                                                         R Craig
                                                                5 September 2002

Group Profit and Loss Account (Unaudited)

for the six months ended 30 June 2002

                                                                 First Half         First Half         Full Year      
                                                         Note          2002               2001              2001      
                                                                      £'000              £'000             £'000      
  Income from fixed asset investments                                                                                 
  and other interest receivable                                                                                       
  From properties                                                      685                636             1,278       
  From investments, including net interest receivable                  154                177               334       
                                                                       839                813             1,612       

  Administrative expenses                                              115                114               228       
  Operating profit                                                     724                699             1,384       
  (Losses)/gains on disposals of assets                    2           (46)                 8                76       
  Profit on ordinary activities before taxation                        678                707             1,460       

  Taxation                                                 3           152                342               626       
  Profit for the financial period                                      526                365               834       
  Losses on disposals of assets after taxation                                                                        

  taken from realised capital reserve                                   20                167               235       
  Profit available for distribution                                    546                532             1,069       

  Dividends                                                4           181                165               478       
  Profit retained                                                      365                367               591       

  Earnings per share                                       5                                                          
  Including gains on disposals of assets                              10.2p               7.1p             16.1p  
  Excluding gains on disposals of assets                              10.6p              10.3p             20.6p  
                                                                                                                      
  Statement of Total Recognised Gains and Losses                                                                      
                                                                               First Half    First Half    Full Year 
                                                                                     2002          2001         2001 
                                                                                    £'000         £'000        £'000 

  Profit for the financial period                                                     526           365          834  
  Unrealised surplus/(deficit) on revaluation of:                                                                     
                              investment properties                                   460            97          728  
                              listed and unlisted investments                        (604)         (860)      (1,778) 
  Deferred taxation                                                                     0           100          100  
  Total recognised gains and losses for the period                                    382          (298)        (116) 
                                                                                                                   
Group Balance Sheet (Unaudited)                                                                              

as at 30 June 2002                                                                                           
                                                                     30 June    30 June               31 December 
                                                                        2002       2001                      2001 
                                                             Note      £'000      £'000                     £'000 
      Fixed assets                                                                                                 
      Tangible assets                                           6     22,737     20,513                    22,727  
      Investments                                               7      9,389     11,050                     9,654  
                                                                      32,126     31,563                    32,381  
      Current assets                                                                                               
      Debtors                                                            724        773                       462  
      Cash at bank and in hand                                           413      1,058                       419  
                                                                       1,137      1,831                       881  
      Creditors                                                                                                    
      Amounts falling due within one year                              1,043      1,246                     1,244  
      Net current assets/(liabilities)                                    94        585                      (363) 

      Total assets less current liabilities                           32,220     32,148                    32,018  

      Capital and reserves                                                                                         
      Called up share capital                                          1,292      1,292                     1,292  
      Revaluation reserve                      - property              6,094      5,206                     5,713  
                                               - other                 3,585      5,137                     4,131  
      Capital redemption reserve                                          95         95                        95  
      Realised capital reserve                                        13,824     13,677                    13,822  
      Profit and loss account                                          7,330      6,741                     6,965  
      Shareholders' funds                                             32,220     32,148                    32,018  
                                                                                                                      
Group Cash Flow Statement                                                                                           

for the six months ended 30 June 2002                                                                               
                                                                               First Half    First Half    Full Year 
                                                                                     2002          2001         2001 
                                                                                    £'000         £'000        £'000 

  Net cash inflow from operating activities                                           937           767        1,398  

  Taxation                                                                                                            
  Taxation paid                                                                      (258)         (208)        (763) 

  Capital expenditure and financial investment                                                                        
  Purchase of fixed assets   - properties                                               -             -       (1,878) 
                             - listed investments                                    (792)         (728)        (893) 
  Sale of fixed assets       - properties                                               0           523        1,377  
                             - listed investments                                     420           607        1,247  
  Net cash (outflow)/inflow from capital expenditure                                 (372)          402         (147) 
                             and financial investment                                           
  Net cash outflow from servicing of finance                                                                          
  Dividends paid                                                                     (313)         (284)        (449) 
  (Decrease)/increase in cash                                                          (6)          677           39  

  Reconciliation of operating profit to net                                                                           
  cash flow from operating activities                                                                                 
  Operating profit                                                                    724           699        1,384  
  Decrease/(increase) in debtors                                                      188           115          (61) 
  Increase/(decrease) in creditors                                                     25           (47)          75  
                                                                                      937           767        1,398  
                                                                                                                      

Notes

for the six months ended 30 June 2002

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 2002 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 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 2001 have been delivered to the Registrar of 
Companies, bearing an unqualified audit opinion.

2.  Gains on disposals of assets

                                                                                First Half    First Half    Full Year 
                                                                                      2002          2001         2001 
                                                                                     £'000         £'000        £'000 
  Gains on disposals of assets arising on sales of:                                                                   
  Properties                                                                          (13)           42          146  
  Investments                                                                         (33)          (34)         (70) 
                                                                                      (46)            8           76  
  3. Taxation                                                                                                         
                                                                                First Half    First Half    Full Year 
                                                                                      2002          2001         2001 
                                                                                     £'000         £'000        £'000 
  Corporation tax                                                                     178           167          315  
  Corporation tax on disposals of assets                                              (26)          175          311  
                                                                                      152           342          626  
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 3.50p per share 
(2001 3.20p) payable on 28 October 2002 to shareholders registered at 
27 September 2002.

5.  Earnings per share

The earnings per share calculation for the first half has been made on the basis 
of 5,167,240 shares (2001 5,167,240) which is the number of shares in issue
during the period ended 30 June 2002.

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
£546,000 (2001 £532,000).

6.  Tangible assets

      Land and buildings (Investment properties)                         Total 
                                                                         £'000 
      Valuation at 1 January 2002                                       22,727  
      Disposals                                                          (450) 
      Surplus on revaluation                                               460  
      Valuation at 30 June 2002                                         22,737  

The directors have used an internal valuation of properties at 30 June 2002, the 
basis of which they believe to be consistent with the external valuation 
prepared for 31 December 2001.                    

7. Investments                                                                                              

      Listed and unlisted                                                Total 
                                                                         £'000 
      Valuation at 1 January 2002                                        9,654  
      Additions                                                            792  
      Disposals                                                          (452) 
      Deficit on revaluation                                             (604) 
      Valuation at 30 June 2002                                          9,389  



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