Interim Results

R.E.A.Hldgs PLC
20 September 2000
                                      
                                       
                              R.E.A. HOLDINGS plc
                
                              Interim Report 2000

Interim Statement

Profit  before  tax for the half year to June 2000 amounted to  £295,000.   It
should  be  noted that the comparative figure of £680,000 included substantial
profits  attributable to a minority interest (which were then  deducted  under
minority).   For  this  reason,  the profit for  the  period  (after  tax  and
minority)  at  £260,000  in fact showed an increase  on  the  profit  for  the
comparative period of £92,000.

As  previously announced, the group's former fibre trading business  was  sold
during the period in May.  The merchanting component of the results reflects a
satisfactory  final contribution from the divested business and was  generally
in  line  with expectations.  Results from agriculture were more disappointing
with  positive  contributions from the REA Kaltim oil  palm  project  in  East
Kalimantan and the Bangladesh tea gardens more than offset by losses from  the
East African sisal and Californian fruit operations.

Looking  forward, a recovery in sisal prices and a reasonable  expectation  of
better  citrus  crops means that the outlook for both East  Africa  and  North
America  is  improving.   However, with the increasing  concentration  of  the
group's  resources on the REA Kaltim project, it is to that project  that  the
group must primarily look for its future profits.

Whilst  political  and  economic conditions in  Indonesia  remain  mixed,  the
directors believe that as compared with a year ago there are now some signs of
improvement  as  evidenced by the resumption of internal  growth  and  a  more
stable,  if still slightly weak, local currency.  Operationally, the  progress
of the REA Kaltim project continues to be most encouraging with oil palm fresh
fruit  production  in  the  six months to 30 June 2000  at  19,500  tonnes  as
compared with 6,200 tonnes in the same period last year.

Prices of crude palm oil have been relatively weak throughout the current year
and  whilst REA Kaltim, as a low cost producer of palm oil, can still  operate
profitably  at  current  prices,  the  present  lower  prices  are  inevitably
impacting cash flow.  As a result, the total further funding needed  to  carry
the project to the point at which it will become self-sustaining has increased
beyond  the level projected a year ago although, with the passing of  a  year,
the net amount still to be expended up to that point and the risk of error  in
the estimation of that amount have of course both significantly reduced.

The group is continuing to meet with success in its programme of divesting non
Indonesian  assets.   In addition, discussions are progressing  with  a  major
international lender with a view to securing additional local debt finance for
REA  Kaltim.  There are, however, material uncertainties both as to the timing
of  divestments  and  as  to  the final outcome of  the  Indonesian  financing
discussions.   These make difficult projection of the group's short  and  long
term  cash  requirements.  For the moment, the group is relying on  assurances
that  it  has received from the principal shareholders that they will  support
the  group in raising additional finance should this be required.  A  decision
regarding such additional finance (the amount of which should in any event  be
limited)  will be made as soon as there is greater clarity as to some  of  the
present uncertainties.

                                                                   R M ROBINOW
                                                                      Chairman
Registered office:
7 Bedford Square
London WC1B 3RA


Consolidated profit and loss account for the period ended 30 June 2000

                                6 months   6 months    Year to
                                      to         to         31
                                      30         30   December
                                    June       June       1999
                                    2000       1999      £'000
                                   £'000      £'000
                                        
Turnover                                               
Continuing                        1,043      12,263    23,899
Discontinued                     10,848         -     -
                                 11,891      12,263    23,899
Cost of sales                   (10,254)    (10,666)  (20,781)
Gross profit                      1,637       1,597     3,118
Other income and expenses          (874)     (1,091)   (2,077)
                                          
Group operating profit              763         506     1,041
Share  of operating profit  of      142       1,128     1,886
associates
Disposal    of   assets    and       62          -        265
investments
Interest payable - associates      (255)       (547)   (1,724)
                                                   
Interest payable - others          (417)       (407)     (856)
Profit  on ordinary activities      295         680       612
before taxation
Tax   on  profit  on  ordinary      (19)        (34)     (214)
activities
Profit  on ordinary activities      276         646       398
after taxation
Minority interests                  (16)       (554)     (161)
Profit for the period               260          92       237
Dividends,   including    non-     (256)       (257)     (513)
equity dividends
Retained  profit / (loss)  for        4        (165)     (276)
the period
                                                       
(Loss) / earnings per ordinary                         
share
 - basic                            0.1p     (1.8)p     (3.0)p
 - fully diluted                    0.1p     (2.0)p     (3.2)p
                                                       
                                                       
                                                       
                                                       
Profit  on ordinary activities                         
before taxation
(by business class)
Merchanting  (£124,000 discontinued)195        143       369
Agriculture (all associates)       (113)       688       162
Other activities                    (14)         9       (11)
Unallocated                         165       (160)     (173)
Disposal    of   assets    and       62          -       265
investments
                                    295        680       612
                                                       

Note:
The interim financial information has not been audited and does not constitute
statutory accounts for the purposes of Section 240 of the Companies Act  1985,
but  has been prepared on the basis of the accounting policies set out in  the
annual financial statements as at 31 December 1999.

The  figures  for  the  year to 31 December 1999 are abridged  and  have  been
extracted from the statutory accounts filed with the Registrar of Companies on
which the auditors issued an unqualified report.


Consolidated balance sheet 30 June 2000

                                      30         30         31
                                    June       June   December
                                    2000       1999       1999
                                   £'000      £'000      £'000
                                        
Fixed assets                                            
Tangible assets                    1,805      2,986      1,896
Investments                       11,188     11,319     11,242
                                  12,993     14,305     13,138
                                                        
Current assets                                          
Stocks                               379      1,021        898
Debtors                           12,634     16,217     13,906
Cash                               4,396      1,010      2,565
                                  17,409     18,248     17,369
                                                        
Creditors up to one year                                
Borrowings                        (7,034)    (8,673)    (7,838)
                                
Creditors                         (3,975)    (3,370)    (3,610)
                                
                                 (11,009)   (12,043)   (11,448)
                               
                                                        
Net current assets                 6,400      6,205      5,921
                                                        
Total   assets  less   current    19,393     20,510     19,059
liabilities
                                                        
Creditors  over  one  year   -     (603)     (2,121)     (664)
borrowings                              
Net assets                        18,790     18,389     18,395
                                                        
                                                        
Capital and reserves                                    
Called-up share capital           14,890     14,889     14,890
Share premium account                720        720        720
Capital redemption reserve         3,240      3,240      3,240
Warrants                           1,219      1,219      1,219
Revaluation reserve                2,000        614      1,860
Profit and loss account           (3,280)    (2,321)    (3,534)
                               
Shareholders' funds*              18,789     18,361     18,395
Minority interest                      1         28      -
Total capital employed            18,790     18,389     18,395



*   Shareholders' funds comprise equity interests of £13,084,000 (30 June 1999
£12,656,000;  31  December  1999 £12,690,000)  and  non  equity  interests  of
£5,705,000 (30 June 1999 £5,705,000; 31 December 1999 £5,705,000).


Consolidated cash flows for the six months ended 30 June 2000

                                6 months          6    Year to
                                      to     months         31
                                      30         to   December
                                    June         30       1999
                                    2000       June           
                                   £'000       1999      £'000
                                              £'000

Net cash inflow from operating    3,137      3,274      6,169
activities
                                                        
Dividends from associates           (10)          -       235
                                                        
Returns   on  investment   and                          
servicing of finance
Interest received                   239        257       568
Interest paid                      (417)      (407)     (856)
Investment income                     -          -         2
Dividends  paid  to   minority     (17)          -      -
shareholders
Dividends  paid to  preference    (256)      (247)      (559)
shareholders
                                  (451)      (397)      (845)
                                                        
Taxation                           (11)       (24)      (183)
                                                        
Capital    expenditure     and                          
financial investment
Purchase  of  tangible   fixed     (16)       (17)      (21)
assets
Sale of tangible fixed assets       44         13     1,337
Sale of investments                361         36       108
Purchase of investments               -          -      (70)
                                   389         32     1,354
                                                        
Equity dividends paid             (368)          -      -
                                                        
Financing   /  management   of  (1,736)       243    (1,970)
liquid resources                                        
                                                        
Increase in cash                    950     3,128     4,760
                                                        
                                                        
Reconciliation  of   operating                          
profit to
net cash inflow from operating
cash flow
Group operating profit              763        506      1,041
Interest received                  (239)      (257)      (568)
Investment income                     -          -         (2)
Depreciation                         86        149        230
Decrease in stocks                  521        114        292
Decrease in debtors               1,294      5,465      7,967
Increase   /   (decrease)   in      706     (2,789)    (2,719)
creditors                                  
Exchange                              6         86        (72)
Net cash inflow from operating    3,137      3,274      6,169
activities
                                                        
Reconciliation of movement  in                          
net debt
Increase in cash in period          950      3,128      4,760
Cash flow for debt and leases       110      (303)      (138)
Cash  flow from management  of    1,636          -      2,050
liquid resources
                                  2,696      2,825      6,672

Net   debt  at  beginning   of   (5,937)   (12,609)   (12,609)
period                                    
Net debt at end of period        (3,241)    (9,784)    (5,937)