Interim Results

Pathfinder Properties PLC
30 September 2005


                             FOR IMMEDIATE RELEASE

                           Pathfinder Properties PLC

                              CHAIRMAN'S STATEMENT
                     for the six months ended 30 June 2005


I now have pleasure in reporting to you on the accounts for the 6 months ending
30th June 2005.

You will note that although we have further reduced administration charges,
there is a continuing loss.

Unfortunately, these losses will continue until profits flow through from
developments. In this regard I am pleased to report we are very far advanced in
doing all the necessary preliminary work on Phase 1 of River Quay and hope to
start building work by the end of the year.

We have decided to put in a revised planning application for our site in Newark
whilst we are appealing against the refusal of our original application and we
await the outcome.



Edward Azouz

Chairman

30 September 2005



CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months ended 30 June 2005

                                           Notes  6 months   6 months       Year
                                                        to         to      ended
                                                   30 June    30 June     31 Dec
                                                      2005       2004       2004
                                                     £'000      £'000      £'000
TURNOVER
         Group and share of joint ventures   3           -          9          -
         less share of joint ventures                    -          -          -
Group turnover                                           -          9          -

Cost of sales                                            -        (9)       (44)
Gross profit                                             -          -       (44)
Administrative expenses                              (253)      (491)      (793)
                                                     (253)      (491)      (837)

Other operating income                                  47         44        660
OPERATING LOSS BEFORE SHARE
OF JOINT VENTURES                                    (206)      (447)      (177)

Share of operating profits in joint                      -          -        (9)
ventures
OPERATING LOSS                               3       (206)      (447)      (186)

Profit on sale of investments and investment             -          6        636
properties
                                                     (206)      (441)        450
Interest                                                 5         62         45
receivable
Interest payable                                     (397)      (350)      (671)
LOSS ON ORDINARY ACTIVITIES
BEFORE TAXATION                                      (598)      (729)      (176)

Taxation Group                                           -       (11)          8
LOSS ON ORDINARY ACTIVITIES
AFTER TAXATION                                       (598)      (740)      (168)
Equity minority interests                                2         12         10

LOSS ON ORDINARY ACTIVITIES
ATTRIBUTABLE TO MEMBERS                              (596)      (728)      (158)
Ordinary                                                 -          -          -
dividends
Loss for the period transferred to           6       (596)      (728)      (158)
reserves

Loss per share                               10    (0.74p)    (0.91p)    (0.20p)

The operating loss arises from the Group's continuing operations.

A statement of total recognised gains and losses for the period is given in note
8.



CONSOLIDATED BALANCE SHEET
30 June 2005

                                          Notes   30 June    30 June    31 Dec
                                                     2005       2004      2004
                                                    £'000      £'000     £'000

FIXED ASSETS
        Intangible fixed assets                       154        154       154
        Tangible assets                                 6          6         6
        Investment in joint ventures
                 Share of gross assets                201        234       201
                 Share of gross                     (135)      (165)     (135)
                 liabilities

                                                       66         69        66
        Other investments                             152        152       152
                                                      378        381       378

CURRENT ASSETS
        Work-in-progress                           16,431     20,346    16,307
        Debtors                             4         720        723       713
        Cash at bank                                  476      1,249       797
                                                   17,627     22,318    17,817
CREDITORS: amounts falling due within       5     (3,423)   (12,311)   (2,979)
one year
NET CURRENT ASSETS                                 14,204     10,007    14,838
TOTAL ASSETS LESS CURRENT LIABILITIES              14,582     10,388    15,216
CREDITORS: amounts falling due after more than
one year
        Bank and other                            (6,020)    (1,800)   (6,056)
        loans

                                                    8,562      8,588     9,160
MINORITY INTERESTS                                  (271)      (271)     (273)
NET ASSETS                                          8,291      8,317     8,887

CAPITAL AND RESERVES
Called up share capital                             7,997      7,997     7,997
Share premium account                               1,970      1,970     1,970
Revaluation                                       (1,255)    (1,255)   (1,255)
reserve
Capital reserve                                       153        153       153
Merger Reserve                                      2,494      2,494     2,494
Profit and loss account                     6     (3,068)    (3,042)   (2,472)
EQUITY SHAREHOLDERS' FUNDS                  7       8,291      8,317     8,887

Net assets per share attributable to ordinary      10.37p     10.40p    11.11p
shareholders




CASH FLOW STATEMENT
for the six months ended 30 June 2005
                                        Notes    6 months   6 months      Year
                                                       to         to     ended
                                                  30 June    30 June    31 Dec
                                                     2005       2004      2004
                                                    £'000      £'000     £'000
NET CASH INFLOW/ (OUTFLOW)
        FROM OPERATING ACTIVITIES         9           160    (1,788)   (1,547)

RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE
Interest                                                5         62        43
received
Interest paid                                       (385)       (77)     (374)
Net cash outflow from returns on
investments                                         (380)       (15)     (331)
and servicing of finance

TAXATION
Corporation tax                                         -         23        18
paid

CAPITAL EXPENDITURE AND FINANCIAL
INVESTMENT
Receipts from sales of investment                       -          6         -
properties
Receipts from joint ventures                         (11)          -       (7)
Acquisition of other tangible fixed                     -       (10)      (10)
assets
Net cash outflow from capital expenditure and
financial investment                                 (11)        (4)      (17)

ACQUISITIONS AND DISPOSALS
Net loans acquired with Subsidiary                      -          -   (2,879)
undertaking
Net loans disposed of with Subsidiary                   -          -     4,742
undertaking
Net cash disposed with Subsidiary undertaking           -          -      (24)
Net cash inflow from acquisitions and disposals         -          -     1,839

EQUITY DIVIDENDS PAID
Minority dividends paid                                 -          -      (36)

MANAGEMENT OF LIQUID RESOURCES
Decrease in treasury deposits                          86        540       440

FINANCING
Debt due within a year:
        Loans drawn down                                -      2,100     8,579
        Loans repaid                                 (51)    (2,879)   (9,720)
Debt due in more than one year:
        Loans drawn down                                -      1,800         -
        Loans repaid                                 (37)          -         -
                                                     (88)      1,021   (1,141)
DECREASE IN CASH                                    (233)      (223)     (775)


NOTES
For the six months ended 30 June 2005

1         BASIS

The figures shown for the six months ended 30 June 2005 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 2004 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         RESULTS FOR THE PERIOD

The Group's turnover and results for the period arise principally from
property development activities.

4 DEBTORS
                                                 30 June      30 June         31 Dec
                                                    2005         2004           2004
                                                   £'000        £'000          £'000

Due within                                           363          396            356
one year
Due after one year: deferred tax                     357          327            357
                                                     720          723            713

5 CREDITORS DUE WITHIN ONE YEAR
                                                30 June       30 June          31 Dec
                                                   2005          2004            2004
                                                  £'000         £'000           £'000

Bank loans and                                    1,800         8,604           1,851
overdrafts
Other development loans                             178         2,267             178
Other creditors and                               1,445         1,440             950
accruals
                                                  3,423        12,311           2,979

6 PROFIT AND LOSS ACCOUNT
                                            6 months    6 months to         Year ended
                                                  to
                                             30 June   30 June 2004        31 Dec 2004
                                                2005
                                               £'000          £'000              £'000

Brought                                      (2,472)        (2,314)            (2,314)
forward
Retained loss for the                          (596)          (728)              (158)
period
Carried forward at end of period             (3,068)        (3,042)            (2,472)





NOTES - continued
For the six months ended 30 June
2005

7 SHAREHOLDERS' FUNDS
                                            6 months    6 months to         Year ended
                                                  to
                                             30 June   30 June 2004        31 Dec 2004
                                                2005
                                               £'000          £'000              £'000

Loss for the period                            (596)          (728)              (158)
Reduction of investments in own                    -            413                413
shares
                                               (596)          (315)                255
Brought                                        8,887          8,632              8,632
forward
Carried forward at end                         8,291          8,317              8,887
of period

8 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

                                            6 months    6 months to         Year ended
                                                  to
                                             30 June   30 June 2004        31 Dec 2004
                                                2005
                                               £'000          £'000              £'000

Loss for the period attributable to            (596)          (728)              (158)
members
Reduction of investment in own                     -            413                413
shares
Total recognised gains and losses              (596)          (315)                255
relating to the period

9 RECONCILATION OF OPERATING LOSS TO OPERATING CASH FLOWS

                                            6 months    6 months to         Year ended
                                                  to
                                             30 June   30 June 2004        31 Dec 2004
                                                2005
                                               £'000          £'000              £'000

Operating loss                                 (206)          (447)              (186)
Depreciation and amortisation of                   -              5                  5
goodwill
Share of operating profits in joint                -              -                  9
ventures
Increase in work-in-progress                   (124)          (435)              (474)
  (Increase) / decrease                          (5)            265            (2,037)
             in debtors
Increase / (decrease) in creditors               495        (1,176)              1,136
                                                 160        (1,788)            (1,547)

10 LOSS PER SHARE

The loss per ordinary share is based on the loss after taxation and minority
interests of £596,000 (31 December 2004: £158,000) and on 79,971,393 (31
December 2004: 79,971,393) ordinary shares being the weighted average number of
ordinary shares in issue during the period. There is no difference between
earnings and fully diluted earnings per share.


NOTES - continued
For the six months ended 30 June 2005

DIRECTORS AND COMPANY INFORMATION

Directors                                            Company number
Gerry Lee                                            2578942 (England and Wales)
Edward Azouz
Jeffrey Azouz                                        Registered office
John Guy Davies                                      61 Chandos Place
                                                     London WC2N 4HG
Secretary
B A Gemal


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, 1001
Finchley Road, London, NW11 7HB, or from the Company's website at
www.pathfinderplc.com.


For further information, contact:
Edward Azouz, Chairman
Gerry Lee, Director                                  Telephone [phone]




                      This information is provided by RNS
            The company news service from the London Stock Exchange