Final Results

Pathfinder Properties PLC
29 June 2005



FOR IMMEDIATE RELEASE                                   29 June 2005


                           Pathfinder Properties PLC

                                    Results
                      for the year ended 31 December 2004

The Board of Pathfinder announces the results of the Company for the year ended
31 December 2004, which are set out below. The audited financial statements for
the year ended 31 December 2004 are being sent to all shareholders. Copies may
be obtained from the Company by writing to Pathfinder Properties PLC, 1001
Finchley Road, London NW11 7HB.

CHAIRMAN'S STATEMENT


The year under review

Dear Shareholder

This is my second Chairman's report since being appointed, and I am pleased to
write that the company is moving forward in a positive manner.

Over the last three years, the company has suffered heavy losses. However, this
year we have managed to significantly reduce the losses to around £158,000. This
is an excellent achievement, bearing in mind the last three years were showing
losses in millions. As promised in my last chairman's statement, we have managed
to cut administrative costs by over 50%. This of course, has had an enormous
effect on our balance sheet, as it is a saving of over £1,000,000 per year. The
board continues to keep a close watch on the company's costs.

Since the EGM concerning the River Quay site, the development of phase 1 is
moving forward at a great pace. We have instructed architects and civil
engineers and we hope to be in a position to sign with building contractors
within the next couple of months. It is an extremely exciting project which the
board believes will add value to the company. If the sales of phase 1 proceed at
the expected rate, then the company would look to start phase 2 within the next
18 months.

With regards to our site in Newark, we have had some highs and lows. I am
pleased to announce that we obtained planning permission to convert the brewery
in Newark into 49 residential units. However, the remainder of the site was
refused planning consent on the grounds that we could not agree a section 106
Notice (this Notice concerned a payment by the company to the local authority
for granting planning permission). In my view we should have been granted
planning permission without the need for any payment. Our planning consultants
have advised us that we have an extremely good chance of success at an appeal.
We have therefore instructed them to appeal against the decision.

May I take this opportunity of thanking the board members and all staff who have
worked extremely hard, in order to turn this company around.

Edward Azouz
Chairman
29 June 2005



CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2004

                                                  Year ended            Year ended
                                            31 December 2004      31 December 2003
                             Notes                      £000                  £000
Turnover
Group and share of joint ventures                          -                     6
- less: share of joint ventures                            -                    (6)
Group Turnover                       4                     -                     -
                                                      --------               -------
Cost of sales                                              
Continuing operations                                    
On going                                                   -                  (184)  
Acquisitions                                             (44)                    -
Discontinued operations                                     -               (1,931)
                                                      --------              -------                             
                                                         (44)               (2,115)
                                                      --------               -------
Gross loss                                               (44)               (2,115)
                                                      --------               -------

Administration expenses                                 
Continuing operations                                    
On going                                                (774)               (1,727)  
Acquisitions                                             (11)                    -
- Discontinued operations                                 (8)                  (91)
                                                        (793)               (1,818)
                                                      --------               -------
                                                        (837)               (3,933)
                                                      --------               -------
Other operating income/(expenses)                        
-Continuing operations                                      
On going                                                 660                    88                    
Acquisitions                                               -
- Discontinued operations                                  -                  (208)
                                                      --------               -------
                                                         660                  (120)
                                                      --------               -------
Operating loss before share of
joint ventures
Continuing operations                                    
On going                                                (114)               (1,823)  
Acquisitions                                             (55)                    -
- Discontinued operations                                 (8)               (2,230)
                                                      --------               -------
                                                        (177)                (4053)

Share of operating loss in joint
ventures                                                  (9)                    -
Operating loss                       4                  (186)               (4,053)
Continuing operations:                                     
Loss on sale of investment                                 
properties                                                 -                    (8)
Profit on sale of fixed asset                              
investments                                                5                     -
Discontinued operations:                                 
Profit on sale of operations                             631                     -
Profit/(loss) on ordinary                                
activities
before investment income, interest                       
and taxation                                             450                (4,061)

Interest receivable                                       45                   177
Interest payable                                        (671)                 (736)
Loss on ordinary activities before
taxation                                                (176)               (4,620)
Taxation                                                   8                    72
Loss on ordinary activities after
taxation                                                (168)               (4,548)
Equity minority interests                                 10                   122
Loss for the year attributable to
members of the parent company                           (158)               (4,426)
Ordinary dividend                    5                     -                     -
Loss for the year transferred to
reserves                             8                  (158)               (4,426)

CONSOLIDATED PROFIT AND LOSS ACCOUNT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2004

                                                 Year ended           Year ended
                                           31 December 2004     31 December 2003
                                                      Pence                Pence
Loss per share                    12                 (0.20)                (5.54)
Fully diluted loss per share      12                 (0.20)                (5.54)



A statement of total recognised gains and losses for the year is given in note
10.

CONSOLIDATED BALANCE SHEET
AT 31 DECEMBER 2004

                         Notes          31 December 2004      31 December 2003
                                         £000        £000       £000       £000

Fixed assets
Intangible fixed assets                               
Goodwill                                              154                     -
Tangible assets                                         6                    11
Investment in joint
ventures
- Share of gross assets                   201                  3,517
- Share of gross                         
liabilities                              (135)                (2,259)
- Goodwill                                  -                     51
                                                       66                 1,309

Other investments                                     152                   152
                                                      378                 1,472

Current assets
Work in progress                                   16,307                15,886
Debtors                                               713                   814
Cash at bank                    6                     797                 2,012
                                                   17,817                18,712

Creditors: Amounts
falling due                     7                  
within one year                                    (2,979)              (11,269)
Net current assets                                 14,838                 7,443

Total assets less
current                                            
liabilities                                        15,216                 8,915
Creditors: Amounts
falling due                                        
after more than one year                           (6,056)                    -
                                                    9,160                 8,915
Equity minority                                      
interests                                            (273)                 (283)
Net assets                                          8,887                 8,632

Capital and reserves
Called up share capital                             7,997                 7,997
Share premium account                               1,970                 1,970
Merger reserve                                      2,494                 2,494
Capital reserve                                       153                   153
Own share capital reacquired                       (1,255)               (1,668)
Profit and loss account         8                  (2,472)               (2,314)
Equity shareholders'                                
funds                           9                   8,887                 8,632

                                                    Pence                  Pence
Net assets per share
attributable to ordinary
shareholders                                        11.11                 10.79



CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2004

                        Notes            Year ended            Year ended
                                   31 December 2004      31 December 2003
                                   £000        £000       £000       £000

Net cash outflow from        
operating activities         11             (1,547)                (3,853)

Returns on investments
and
servicing of finance
Interest received                    43                    173
Interest paid                     (374)                  (291)

Net cash outflow from returns on              
investments and servicing of
finance                                       (331)                 (118)

Taxation
Taxation received/                               
(paid)                                           18                 (388)

Capital expenditure and financial
investment
Receipts from sale of
investment properties                -                      18
(Payments)/receipts from joint
ventures                           (7)                      37
Payments to acquire investments   (10)                 (1,045)
Payments to acquire tangible
fixed assets                         -                    (26)

Net cash outflow from capital
expenditure and financial
investment                                      (17)              (1,016)

Acquisitions and
disposals
Purchase of subsidiary               
undertaking                          -                      -
Net cash disposed with
subsidiary undertaking           ( 24)                      -

Net cash outflow from
acquisitions and disposals                      (24)                   -

Equity dividends
Dividends and minority
dividends paid                                  (36)               (353)

Management of liquid
resources
Decrease in treasury
deposit                                         440               1,326
accounts

Financing
Debt due within one year:

- Short term loans drawn        
down                            5,700                   1,266
- Short terms loans repaid    (4,978)                       -
Net cash inflow from                            
financing                                       722               1,266
Decrease in cash                              (775)             (3,136)

NOTES

1 BASIS
The figures shown for the year ended 31 December 2004 are unaudited and do not
constitute statutory financial statements within the meaning of the Companies
Act 1985. The financial statements for the year ended 31 December 2003 have been
reported on by the Company's auditors and delivered to the Registrar of
Companies. The report of the auditors was unqualified and did not contain a
statement under s.237(2) or (3) of the Companies Act 1985.

2 ACCOUNTING POLICIES
The accounting policies are consistent with those used in the previous year.

3 ACQUISITIONS AND DISPOSALS DURING THE YEAR
The Group acquired the remaining 25% interest in Fletchergate Limited and Newark
Property Development on 8 April 2004.

In May 2004, Pathfinder (Loch Lomond) Limited entered into administration due to
the company's trading losses, the downward revaluation of the property and the
inability to finance its debts. Since Pathfinder (Loch Lomond) Limited is in
administration, the Board considers that this represents a severe long-term
restriction that prevents the Group from exercising its rights over the Company.
Therefore Pathfinder (Loch Lomond) Limited has been excluded from the Group
accounts for the year ended 31 December 2004.

In September 2004, the Group sold its 100% interest in Pathfinder (Wetherby)
Limited, which owned a development site at Market Place, Wetherby



4 RESULTS FOR THE YEAR
The Group's turnover and results for the year arise principally from
property development activities and from activities carried out in UK.

5 DIVIDENDS
                                                    Year ended      Year ended
                                                   31 Dec 2004     31 Dec 2003
                                                          £000            £000

Equity dividends:
Final dividend Nil p (2003 - Nil p) per share                -               -



6 ANALYSIS OF CASH AND CASH EQUIVALENTS

                                              31 Dec 2004          31 Dec 2003
                                                    £'000                £'000

Short term bank deposits                              100                  540
Other cash at bank                                    697                1,472
                                                   --------              -------
                                                      797                2,012
                                                   --------              -------

7 CREDITORS DUE WITHIN ONE YEAR

                                              31 Dec 2004          31 Dec 2003
                                                    £'000                £'000

Bank loans and overdrafts                           1,851                8,565
Other loans                                           178                  576
Trade creditors                                        14                  183
Other creditors and accruals                          936                1,945
                                                   --------              -------
                                                    2,979               11,269
                                                   --------              -------

Other loans comprise loans from minority shareholders in certain subsidiary
undertakings to fund their proportionate share of developments. These loans are
repayable on or after the sale or refinancing of the relevant developments.

8 PROFIT AND LOSS ACCOUNT

                                               31 Dec 2004         31 Dec 2003
                                                     £'000               £'000
                                               
At 1 January                                       (2,314)               2,112
Loss for the year                                    (158)             (4,426)
                                                  ---------            --------
At 31 December                                     (2,472)             (2,314)
                                                  ---------            --------

9 SHAREHOLDERS' FUNDS

                                               31 Dec 2004         31 Dec 2003
                                                     £'000               £'000

Retained loss for the year                           (158)             (4,426)
Other recognised gains
relating to the year                                     -                 153
Own shares disposed                                    413                 630
Shares issued in year                                    -                  46
                                                   ---------            --------
                                                       255              (3,597)
At 1 January                                         8,632              12,229
                                                   ---------            --------
At 31 December                                       8,887               8,632
                                                   ---------            --------

10 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
                                                 Year ended          Year ended
                                                31 Dec 2004         31 Dec 2003
                                                      £'000               £'000

Loss for the financial year
attributable to members                                (158)             (4,426)
Prior year adjustment                                      -             (2,729)
Reduction of investment in
own shares                                               413                 630
Capital reserve                                            -                 153
                                                      ---------          --------
Total recognised gains and
losses since last financial
statements                                               255             (6,372)
                                                      ---------         --------

11 RECONCILATION OF OPERATING LOSS TO OPERATING CASH FLOWS

                                                  Year ended          Year ended
                                                 31 Dec 2003         31 Dec 2002
                                                       £'000               £'000

Operating loss                                         (186)             (4,053)
Amortisation of goodwill                                   -                  18
Depreciation on fixed assets                               5                   -
Share of profits in joint
ventures                                                   9                   -
Increase in work-in-progress                           (474)               (150)
(Increase)/ Decrease in
debtors                                              (2,037)                 188
Increase in creditors                                  1,136                 123
                                                     ---------            --------
                                                     (1,547)             (3,853)
                                                    ---------            --------

12 LOSS PER SHARE

The calculation of loss per share is based on a loss of £158,000 (2003 -
£4,426,000) and on 79,971,393 (2003 - 79,874,286) ordinary shares, being the
weighted average number of ordinary shares in issue during the year. There is no
difference between earnings and fully diluted earnings per share








For further information, contact:

Gerry Lee or Edward Azouz, Directors Tel: [phone]






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