Final Results

Solitaire Group PLC
27 April 2004




27 April 2004

                              SOLITAIRE GROUP Plc

    Solitaire is a leading national provider of property management services


                       PRELIMINARY RESULTS FOR THE YEAR

                             ENDED 31 DECEMBER 2003



           'An exciting period of growth & transition for Solitaire'


                                        Highlights


                                                Change        Year ended        Year ended
                                              Per cent       31 Dec 2003       31 Dec 2002
                                                                   £'000             £'000

Turnover                                         +16.0             6,855             5,911
Profit before tax, amortisation,                 +24.7             2,251             1,805
exceptional costs & interest
Profit before tax                                +16.2             1,682             1,447

Earnings per share before amortisation           +20.6             31.6p             26.2p
and exceptional costs
Earnings per share under FRS 14                  +10.2             23.8p             21.6p
Final dividend                                    +9.6              8.0p              7.3p
Total dividend                                    +9.7             11.3p             10.3p

•        With the acquisition of Freehold Managers PLC, Solitaire properties
under management (including the management of leasehold ground rents) increased
by approximately 39,000 units to some 65,000.

•        New instructions for property management continue at record levels and
the size of developments is increasing.

•        Leicester office continues to attract substantial new business -
intention remains to open a regional office on the south coast towards the end
of the year.



George Brutton, Chairman of Solitaire Group Plc, commented:

'I am pleased to report that this has been both an exciting and transforming
year for Solitaire. The continuing growth in our residential property management
business and the successful and significant acquisition in September 2003 of
Freehold Managers PLC (FMP) have contributed to this. FMP will play a key part
in the further development of Solitaire as one of the leading property services
groups in the UK.

The emphasis now placed by the Government on increased house building represents
an encouraging development for the group and we are seeing an increased demand
for our property management skills from existing and new developer clients.'



For further information:
Graham Shapiro, Joint Managing Director          Tel: [phone]
Solitaire Group Plc
Tarquin Edwards / Chris Steele                   07879 458 364 / 07979 604 687 or
Holborn                                          Tel: [phone]

Chairman's statement

I am pleased to report that this has been both an exciting and transforming year
for Solitaire. The continuing growth in our residential property management
business and the successful and significant acquisition in September 2003 of
Freehold Managers PLC (FMP) have contributed to this. FMP will play a key part
in the further development of Solitaire as one of the leading property services
groups in the UK.

Our Leicester office continues to attract substantial inflows of new business
and it remains our intention to open an office on the South Coast towards the
end of this year to better serve our developer clients and residents in that
area.

Moss Kaye Pembertons had a satisfactory year in what was a difficult commercial
property market, which is now showing signs of improvement. They continue to see
a satisfactory increase in instructions for professional work.

Results

Turnover increased by 16.0% to £6,855,000 (2002: £5,911,000) and includes 3
months contribution from FMP.

The operating profit for the year ended 31 December 2003, before writing off
exceptional costs, goodwill amortisation and interest, increased by 24.7% to
£2,251,000 (2002: £1,805,000). Certain abortive professional fees of £29,000
relating to 2002 have been written off as exceptional costs during 2003.
Exceptional costs also include a transfer to reserves of £148,000 relating to
the current and future exercise of share options necessary under UITF 17.

Accordingly, after exceptional costs, interest and goodwill amortisation,
pre-tax profits were up by £235,000 or 16.2% to £1,682,000 (2002: £1,447,000)
and earnings per share under FRS 14 were up by 10.2% to 23.8p (2002: 21.6p).
Adjusted earnings per share, before exceptional costs, goodwill amortisation and
after interest were 31.6p (2002: 26.2p) up 20.6%.

The board is recommending the payment of an increased final dividend of 8.0p
(2002: 7.3p) per share making a total for the year of 11.3p (2002: 10.3p), an
increase of 9.7% over 2002. The final dividend will be paid on 29 June 2004 to
shareholders on the register on 7 May 2004.

Business development

The organic growth from the management of newly built developments continues to
increase and the number of new developments where the group has contracts to
manage but is not yet receiving income, is at record levels. Income from these
developments will only start when the developments are completed and sold over
the next two years. The current medium to long term pipeline of contracted
business is substantial and is estimated to provide significant additional
revenues in future years. We also have a large pipeline of tenders for
development projects where contracts for future management have been agreed in
principle but have yet to be exchanged.

On the 24 September 2003 we acquired the entire issued share capital of FMP for
an estimated total (including earn out) of £5.96 million. The initial total
consideration was £3.9 million, which has been satisfied by £0.69 million in
shares to the two vendors (197,500 shares at 350p each) and £3.26 million in
cash. FMP, an unquoted company, actively manages the ground rent investment
portfolio of the Freehold Income Trust ('FIT'), comprising over 37,000 units.
FIT is an unregulated UK collective investment scheme. The net asset value of
FIT is currently in excess of £60 million and the property portfolio is valued
in excess of £40 million with a further £18 million of acquisitions in progress.

The acquisition of FMP is the result of our search for a suitable acquisition
that complements the existing Solitaire structure and provides a strong fit with
the established business, whilst, at the same time providing enhanced
shareholder value.

The group has now entered a new phase of its development and the acquisition has
already led to a number of key introductions. We look forward to further
combined initiatives in 2004.

People

I am pleased to welcome Ian Read who joined the board on 24 September 2003. He
is a director of FMP and was one of the two original founders of that company.
He brings a wealth of property related management experience to the group.

We continue to invest in our business and this has led to an increase in staff
to cope with our growing management portfolio and also to comply with the
requirements imposed on all property management companies by the Commonhold and
Leasehold Reform Act 2002. This trend is likely to continue in 2004.

Our management fees have been increased to reflect the extra costs resulting
from the Commonhold and Leasehold Reform Act 2002. The impact of this increase
in revenue will be seen partially in 2004 and fully in 2005.

Current trading and prospects

Whilst the progress made by the property management division of the group during
2003 has been excellent, the growth made does not fully reflect the increase in
the number of developments where the group has contracts to manage, but where we
will not start to receive revenue until those developments have been completed
and sold. We also have a significant pipeline of developments where management
contracts have not yet been exchanged.

We continue to look for acquisitions which will fit well within our group and
which will provide increased shareholder value. At the same time we remain
focused on organic growth and we continue to invest in all our businesses.

I am pleased to report that current trading is in line with our expectations,
and having regard to the increased government focus on the need for an increase
in the housing stock available across the country, I look forward to the future
with confidence.

George Brutton FRICS

Chairman

27 April 2004


Consolidated profit and loss account

Year ended 31 December
                                                        Continuing   Acquisition
                                                        operations
                                                              2003          2003       2003    2002
                                               Notes         £'000         £'000      £'000   £'000

Turnover                                                     6,360           495      6,855   5,911

Operating expenses
External fees and commissions                                  191            18        209     276
Other administration expenses                                4,211           184      4,395   3,830

                                                             1,958           293      2,251   1,805
Amortisation of goodwill                                       115            74        189     115
Exceptional costs                              2               177             -        177      95

Operating profit                                             1,666           219      1,885   1,595

Net Interest paid                                            (163)          (40)      (203)    (148)

Profit on ordinary activities before taxation                1,503           179      1,682   1,447

Taxation on ordinary activities                                                         567     450


Profit on ordinary activities after taxation                                          1,115     997

Dividends                                      3                                        552     475

Retained profit for the year                                                            563     522

Basic and diluted earnings per share           4                                      23.8p   21.6p
Adjustment for amortisation                                                            4.0p    2.5p
Adjustment for exceptional costs                                                       3.8p    2.1p

Adjusted earnings per share                    4                                      31.6p   26.2p





Consolidated statement of total recognised gains and losses
                                                                                   2003        2002
                                                                                  £'000       £'000

Profit for the year                                                               1,115         997
Revaluation of freehold investment properties                                         -       2,000

Total recognised gains for the year                                               1,115       2,997




All amounts relate to continuing activities.




Consolidated balance sheet

31 December




                                                          Group                  Company
                                                           2003        2002         2003        2002
                                                          £'000       £'000        £'000       £'000
Fixed assets
Intangible assets                                         7,554       1,793            -           -
Tangible assets
Office equipment                                            464         184            -           -
Freehold land and buildings                                 261         261            -           -
Freehold investment reversions                           12,743      11,739            -           -
Investments                                                   -           -        9,522       3,190
                                                         13,468      12,184        9,522       3,190

                                                         21,022      13,977        9,522       3,190

Current assets
Debtors                                                   2,447       1,888        4,021       2,382
Cash and deposits                                           681         101                        2

                                                          3,128       1,989        4,021       2,384


Creditors: amounts falling due within one
year
Borrowings                                                1,573         790        1,247         754
Other liabilities                                         1,942       1,337          938         416

                                                          3,515       2,127        2,185       1,170
Net current (liabilities)/assets                          (387)       (138)        1,836       1,214

Total assets less current liabilities                    20,635      13,839       11,358       4,404

Creditors: amounts falling due after more
than one year
Borrowings                                                5,467       1,779        4,455         434
Other liabilities                                         1,550           -        1,550           -

                                                          7,017       1,779        6,005         434

Net Assets                                               13,618      12,060        5,353       3,970


Capital and reserves
Called-up share capital                                     489         462          489         462
Share premium account                                     3,615       2,647        3,615       2,647
Revaluation reserve                                       6,731       6,731            -           -
Profit and loss account                                   2,783       2,220        1,249         861


Equity shareholders' funds                               13,618      12,060        5,353       3,970









Consolidated cash flow statement

Year ended 31 December

                                                                                    2003         2002
                                                                                   £'000        £'000

Cash flow from operating activities                                                1,720        1,752

Returns on investments and servicing of finance
Interest received                                                                     12           18
Interest paid                                                                      (215)        (166)

Net cash outflow from returns on investment and servicing of finance               (203)        (148)

UK corporation tax                                                                 (636)        (509)

Capital expenditure and financial investment
Office equipment                                                                   (380)         (92)
Purchase of freehold reversions                                                  (1,004)        (584)
Disposal of fixed assets                                                               -           55

Net cash outflow from capital expenditure and financial investment               (1,384)        (621)

Acquisition of subsidiary                                                        (3,056)         (28)
Equity dividends paid                                                              (497)        (446)

Cash outflow before use of liquid resources and financing                        (4,056)            0

Management of liquid resources and financing
Financing                                                                          4,581          153

Increase in cash in the year                                                         525          153


                                                                                    2003         2002
Reconciliation of net cash flow to movement in net debt                            £'000        £'000

Increase in cash in the year                                                         525          153
Cash inflow from increased debt                                                  (4,416)        (153)

Movement in net debt                                                             (3,891)            0
Opening net debt                                                                 (2,468)      (2,468)

Closing net debt                                                                 (6,359)      (2,468)





SOLITAIRE GROUP Plc

Notes


1       Basis of preparation

        The results and balance sheet incorporate the audited results of Solitaire Group Plc and all its
        subsidiaries made up to 31 December 2003 and have been prepared on a basis consistent with the
        audited financial statements for the year ended 31 December 2002.


2       Exceptional costs

        Certain abortive professional fees of £29,000 relating to 2002 have been written off as exceptional
        costs during 2003. Exceptional costs also include a transfer to reserves of £148,000 relating to
        the current and future exercise of share options necessary under UITF 17. Some of these costs are
        not an allowable expense in the calculation of the tax charge for the year.


3       Dividends

        During the year the company paid an interim dividend of 3.3p (2002: 3.00p) per share. The company
        has proposed a final dividend of 8.0p (2002: 7.3p) per share making a total of 11.3p (2002: 10.3p)
        for the year.


4       Earnings per share

        The calculation of earnings per share for the year ended 31 December 2003 is based on earnings of
        £1,115,000 (2002: £997,000) and a weighted average number of shares in issue of 4,686,880 (2002:
        4,623,581). There is no significant difference between basic and diluted earnings per share in 2003
        and 2002. The adjusted earnings per share are based on the profits for the year after tax adjusted
        for amortisation of goodwill and development costs and exceptional costs.


5       Results

        The results for the year ended 31 December 2003 have been extracted from the audited financial
        statements, which will shortly be sent to shareholders and filed with the Registrar of Companies.
        The auditor's report on these accounts was unqualified.




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