Interim Results

Pathfinder Properties PLC
30 September 2002

PATHFINDER PROPERTIES PLC
RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2002



•     Acquisition of Pathfinder Recovery Ventures Limited May 2002

•     Planning obtained on Phase 2 River Quarter, Manchester July 2002

•     Assembly of 6.5 acre development site in Newark completed July 2002

•     Sale of Merchant Village, Glasgow, for £15.3 million agreed September 2002





We indicated to you at the time of the publication of our Report for the year
ended 31 December 2001, that, as a result of an agreement with Pathfinder
Recovery 2 PLC, we acquired in May 2002 its 50% interest in Pathfinder Recovery
Ventures Limited, following which we now own 100% of that company.   At the same
time we also acquired the rights to a further 15% of the outstanding interests
in the Merchant Village and River Quay projects, effectively taking our
ownership of each to 80%.



Results

Turnover for the six months ended 30 June 2002 relates to the disposal of the
Group's 50% interest in Tib Street, Manchester.  The profits from this sale are
included within the heading of 'share of profits in joint ventures and
associates' amounting to £417,000.



Financing costs on all sites were charged against the profit and loss account
during the period, together with ongoing administration costs, resulting in a
loss for the period of £200,000 after tax and minority interests.



Following the acquisition of the remaining interests in Pathfinder Recovery
Ventures Limited, its assets, and those of Pathfinder (Loch Lomond) Limited,
have been consolidated into the Group's balance sheet, resulting in a decrease
in investments in joint ventures and associates and an increase in
work-in-progress and borrowings on our balance sheet.   Through this acquisition
the Group also now owns, via a 95% owned subsidiary, 18% of its own shares.  In
order to show a consistent valuation for the Group and its assets, these shares
have been revalued in the Group's balance sheet at the reported net asset value
of the Group less associated goodwill, which is included elsewhere in the
balance sheet.



After incorporating these new acquisitions, Group net assets have risen from
£14,803,000 at 31 December 2001 to £15,130,000 at 30 June 2002, representing a
book value of approximately 19p per ordinary share.



Operations



Plans for our phased mixed-use development at River Quarter, Manchester,
continue to progress with discussions with potential development partners,
tenants and purchasers.  Phase 2 of the development received planning consent in
July 2002 for 191 residential apartments, 19,500 sq ft of commercial space and
191 car parking spaces.



In July 2002 we also completed the assembly of a 6.5 acre site in Newark, which
is held in a 50% joint venture with our finance partner.  We are in talks with a
number of parties about developing the site either as retail space or
residential accommodation and are aiming either to have on-sold the site or
submitted a planning application before the end of the year.



Following a strategic review, we have taken the decision to sell the Loch Lomond
Factory Outlets in Alexandria.  Whilst it is a site with good potential for
expansion, it is not core to our business  and the cash investment in the site
can be better utilised in the current market in more mainstream urban
redevelopment.



Post balance sheet events



We were very pleased to announce on 30 September 2002 that we had exchanged
contracts to sell our Merchant Village site in Glasgow to Selfridges plc for
£15.3 million.   We believe that Selfridges will make an extremely positive
contribution to Glasgow's retail scene in taking forward the site that we have
assembled.   The sale is due to complete on 4 October 2002 and will be reflected
in the results for the second half of this year.



The sale will have a positive impact on the Group's net asset value and level of
profitability in the second half year.  The Group intends to use the proceeds of
the sale to reduce borrowings and provide development capital for current and
future projects, and in particular, to focus on progressing our other urban
regeneration schemes such as River Quarter in Manchester.



John Parry
Chairman
30 September 2002


      PROFIT AND LOSS ACCOUNT                                                                                     
      for the period ended 30 June 2002                                                                           
                                                           Notes      6 months to     6 months to    12 months to 
                                                                     30 June 2002    30 June 2001     31 Dec 2001 
                                                                            £'000           £'000           £'000 
      TURNOVER                                                                                                    
      Group and share of joint ventures                      4             2,100           3,079           4,612  
      less share of joint ventures                                        (2,100)         (2,553)         (4,085) 
      Group turnover                                                           -             526             527  
                                                                                                                  
      Cost of sales                                                          (21)           (142)           (422) 
      Gross profit                                                           (21)            384             105  
      Administrative expenses                                               (739)           (591)         (1,803) 
                                                                            (760)           (207)         (1,698) 
                                                                                                                  
      Other operating income                                                 130              15             146  
      Share of profits in joint ventures and associates                      417             407             718  
      OPERATING (LOSS)/ PROFIT                               4              (213)            215            (834) 
                                                                                                                  
      Loss on sale of investment properties                                    -             (83)           (128) 
                                                                            (213)            132            (962) 
      Interest receivable                                                    107             156             290  
      Interest payable                                                      (388)           (188)           (599) 
      (LOSS)/PROFIT ON ORDINARY ACTIVITIES                                                                        
      BEFORE TAXATION                                                       (494)            100          (1,271) 
                                                                                                                  
      Taxation Group                                                         259              24             222  
      Joint ventures and associates                                           27             (89)            (21) 
      (LOSS)/PROFIT ON ORDINARY ACTIVITIES                                                                        
      AFTER TAXATION                                                        (208)             35          (1,070) 
      Minority interests                                                       8               3              97  
      (LOSS)/PROFIT ON ORDINARY ACTIVITIES                                                                        
      ATTRIBUTABLE TO MEMBERS                                               (200)             38            (973) 
      Ordinary dividends                                                       -            (116)           (119) 
      Loss for the period                                    7              (200)            (78)         (1,092) 
                                                                                                                  
      (Loss)/Earnings per share                              11           (0.25p)          0.05p          (1.30p) 
                                                   
The operating loss/profit arises from the Group's continuing operations.                          
A note of profits and losses on a historical cost basis is given in note 5.                          
A statement of total recognised gains and losses for the period is given in note
9. 
                     

                                                                                                                      
  BALANCE SHEET                                                                                                       
  30 June 2002                                                                                                        
                                            Notes                     30 June 2002        30 June 2001    31 Dec 2001 
                                                                             £'000               £'000          £'000 
                                                                                                                      
  FIXED ASSETS                                                                                                        
  Intangible fixed assets                                                     622                   -            136  
  Tangible fixed assets                                                        47                 474             47  
  Investment in joint ventures and                                                                                    
  associates                                                                                                          
  Share of gross assets                                                     2,534               9,995         10,560  
  Share of gross liabilities                                               (1,888)             (5,587)        (4,893) 
                                                                              646               4,408          5,667  
                                                                                                                      
  Investment in Pathfinder Properties                                       2,345                   -              -  
  PLC                                                                                                                 
  Other Investments                                                           152                 209            152  
                                                                            3,812               5,091          6,002  
                                                                                                                      
  CURRENT ASSETS                                                                                                      
  Work-in-progress                                                         27,440              19,253         21,824  
  Debtors                                                                     884               1,653            866  
  Cash at bank                                                              4,559               6,207          2,519  
                                                                           32,883              27,113         25,209  
  CREDITORS: Amounts falling due              6                            (9,947)            (15,588)       (12,452) 
  within one year                                                                                                     
  NET CURRENT ASSETS                                                       22,936              11,525         12,757  
  TOTAL ASSETS LESS CURRENT                                                26,748              16,616         18,759  
  LIABILITIES                                                                                                         
  CREDITORS: Amounts falling due after more than one                                                                  
  year                                                                                                                
  Bank and other loans                                                    (10,440)                  -         (2,084) 
  PROVISIONS                                                                  (14)               (213)          (108) 
                                                                                                                      
                                                                                                                      
                                                                           16,294              16,403         16,567  
  MINORITY INTERESTS                                                       (1,164)               (911)        (1,764) 
                                                                           15,130              15,492         14,803  
                                                                                                                      
                                                                                                                      
  CAPITAL AND RESERVES                                                                                                
  Called up share capital                                                   7,975               7,734          7,975  
  Share premium account                                                     1,946               1,862          1,946  
  Capital reserve                                                           2,494               2,494          2,494  
  Revaluation reserve                                                         527                  97              -  
  Profit and loss account                     7                             2,188               3,305          2,388  
                                              8                            15,130              15,492         14,803  
                                                                                                                      
  Net assets per share attributable to ordinary                            18.97p              20.03p         18.56p  
  shareholders                                                                                                        
                                                                                                                      
  CASHFLOW STATEMENT                                                                                                  
  for the period ended 30 June 2002                                                                                   
                                                               Notes      6 months to     6 months to    12 months to 
                                                                         30 June 2002    30 June 2001     31 Dec 2001 
                                                                                £'000           £'000           £'000 
  NET CASH OUTFLOW FROM                                                                                               
  OPERATING ACTIVITIES                                           10           (3,771)           (711)         (2,022) 
                                                                                                                      
  RETURNS ON INVESTMENTS AND SERVICING                                                                                
  OF FINANCE                                                                                                          
  Interest received                                                               56             131             242  
  Interest paid                                                                 (207)            (21)           (227) 
  Net cash (outflow)/inflow from returns on investments                                                               
  and servicing of finance                                                      (151)            110              15  
                                                                                                                      
  TAXATION                                                                                                            
  Corporation tax paid                                                             -              (4)           (283) 
                                                                                                                      
  CAPITAL EXPENDITURE AND FINANCIAL                                                                                   
  INVESTMENT                                                                                                          
  Receipts from sales of investment properties                                     -           1,477           1,859  
                                                                                                                      
  ACQUISITIONS AND DISPOSALS                                                                                          
  Purchase of subsidiary undertaking                                               -          (5,997)         (6,142) 
  Net cash acquired with subsidiary undertaking                                1,702           3,860            (140) 
  Investments in joint ventures                                                1,675           1,295            (502) 
  Net cash inflow/(outflow) from acquisitions and disposals                    3,377            (842)         (6,784) 
                                                                                                                      
  EQUITY DIVIDENDS PAID                                                            -            (352)           (471) 
                                                                                                                      
  FINANCING                                                                                                           
  Debt due within a year:                                                                                             
  Loans drawn down                                                               726             807           5,982  
  Loans repaid                                                                     -            (420)         (4,003) 
  Debt due in more than one year:                                                                                     
  Loans drawn down                                                             1,861               -           2,084  
  Loans repaid                                                                    (2)              -               -  
                                                                               2,585             387           4,063  
                                                                                                                      
  INCREASE/(DECREASE) IN CASH                                                  2,040              65          (3,623) 
                                                   
NOTES                                                   
                                                   
1 BASIS                                               

The figures shown for the six months to 30 June 2002 and 30 June 2001 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 2001 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 adopted are consistent with those applied in previous
years. The provisions of Financial Reporting Standard 19 on Deferred Tax has
been adopted in these Interim financial statements. No material adjustment to
the results, assets or liabilities, arises as a result thereof.                 
   
                                                   
                                                   
Investment properties are stated at valuation on 31 December 2001 or cost at the
date of acquisition, if later, together with the addition of costs of
enhancement works since that date where appropriate. Investment properties have
not been revalued at 30 June 2002. The investment in Pathfinder Properties PLC
held by a subsidiary of the Group has been revalued by the Directors at 30 June
2002 following its acquistion on the basis of the reported net asset value of
the Group at that date.                                
                                                   
                                                   
3. ACQUISITION OF PATHFINDER RECOVERY VENTURES LIMITED AND FURTHER INTERESTS IN 
PATHFINDER (SCOTLAND) LIMITED AND PATHFINDER (RIVER QUAY) LIMITED                

On 27 May 2002 the Group acquired the remaining 50% of Pathfinder Recovery
Ventures Limited and the rights to acquire a further 15% of Pathfinder
(Scotland) Limited and Pathfinder (River Quay) Limited for consideration of
£950,000. Pathfinder (Loch Lomond) Limited, which was previously treated as an
associated company, became a subsidiary company during the period as a result of
the acquisition of Pathfinder Recovery Ventures Limited. Assets and liabilities
acquired were revalued on acquisition.  
      

                                                                                                                      
4 SEGMENTAL ANALYSIS                                                                                                

                                                                          6 months to     6 months to    12 months to 
                                                                         30 June 2002    30 June 2001     31 Dec 2001 
                                                                                £'000           £'000           £'000 
  Turnover:                                                                                                           
  Development                                                                  2,100           3,053           4,585  
  Investment                                                                       -              26              27  
                                                                               2,100           3,079           4,612  
  Operating profit                                                                                                    
  Development                                                                    504             757             979  
  Investment                                                                     (59)             (3)           (104) 
                                                                                 445             754             875  
  Common costs                                                                  (658)           (539)         (1,709) 
                                                                                (213)            215            (834) 

  5 NOTE OF HISTORICAL COST PROFIT AND LOSSES                                                                         

                                                                          6 months to     6 months to    12 months to 
                                                                         30 June 2002    30 June 2001     31 Dec 2001 
                                                                                £'000           £'000           £'000 
                                                                                                                      
  (Loss)/profit on ordinary activities before taxation                          (494)            100          (1,271) 
  Realisation of revaluation gains of previous periods                             -             516             647  
  Historical cost (loss)/profit on ordinary activities before                   (494)            616            (624) 
  taxation                                                                                                            

  6 CREDITORS DUE WITHIN ONE YEAR                                        30 June 2002    30 June 2001     31 Dec 2001 
                                                                                £'000           £'000           £'000 
                                                                                                                      
  Bank loans and overdrafts                                                    4,907           6,918           4,245  
  Other development loans                                                      3,079           6,596           5,212  
  Other creditors and accruals                                                 1,961           2,074           2,995  
                                                                               9,947          15,588          12,452  

  7 PROFIT AND LOSS ACCOUNT                                                                                           

                                                                          6 months to     6 months to    12 months to 
                                                                         30 June 2002    30 June 2001     31 Dec 2001 
                                                                                £'000           £'000           £'000 
                                                                                                                      
  Brought forward                                                              2,388           2,979           2,979  
  Transfer from revaluation reserve                                                -             404             501  
  Retained loss for the period                                                  (200)            (78)         (1,092) 
  Carried forward at end of period                                             2,188           3,305           2,388  

  8 SHAREHOLDERS' FUNDS                                                                                               
                                                                          6 months to     6 months to    12 months to 
                                                                         30 June 2002    30 June 2001     31 Dec 2001 
                                                                                £'000           £'000           £'000 
                                                                                                                      
  Retained loss for the period                                                  (200)            (78)         (1,092) 
  Shares issued in period                                                          -             945           1,270  
  Other recognised gains relating to the period                                  527               -               -  
                                                                                 327             867             178  
  Brought forward                                                             14,803          14,625          14,625  
  Carried forward at end of period                                            15,130          15,492          14,803  

  9 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES                                                                    
                                                                          6 months to     6 months to    12 months to 
                                                                         30 June 2002    30 June 2001     31 Dec 2001 
                                                                                £'000           £'000           £'000 
                                                                                                                      
  (Loss)/ profit for the period attributable to members                         (200)             38            (973) 
  Revaluation of investment in Pathfinder Properties PLC                         527               -               -  
  Total recognised gains and losses relating to the period                       327              38            (973) 
                                                                                           
  10 RECONCILIATION OF OPERATING PROFIT TO OPERATING CASH FLOWS  
                                                                                                             
                                                                 6 months to     6 months to    12 months to 
                                                                30 June 2002    30 June 2001     31 Dec 2001 
                                                                       £'000           £'000           £'000 
                                                                                                             
          Operating (loss)/profit                                      (213)            215            (834) 
          Share of profits in joint ventures and associates            (417)           (407)           (718) 
          Increase in work-in-progress                               (1,718)           (165)         (1,188) 
          Decrease in debtors                                           212             940           1,824  
          Decrease in creditors                                      (1,541)         (1,294)         (1,200) 
          Decrease/(increase) in general provisions                     (94)              -              94  
                                                                     (3,771)           (711)         (2,022) 
                               
11 EARNINGS PER SHARE                               

The loss/earnings per ordinary share are based on the loss after taxation and
minority interests and on 79,745,428 (31 December 2001: 74,654,876 ordinary
shares) being the weighted average number of ordinary shares in issue during the
period.                                                                         
                                     
                                                   
A copy of this statement is being sent to all shareholders and further copies
may be obtained from the company by writing to Pathfinder Properties PLC,
Capital House, Michael Road, London SW6 2YH or from the FT Free Annual Reports
Service, details of which can be found in the Financial Times.                  
       
                                                   
For further information, contact:                                    
                                                   
Malcolm Bacchus, Director Tel: [phone]                          
Andrew Marshall, Marshall Robinson Roe Tel: [phone]                          




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