Final Results

Solitaire Group PLC
25 April 2005


25 April 2005
                              Solitaire Group Plc

    Solitaire is a leading national provider of property management services

                      Preliminary results for the year
                            ended 31 December 2004

                        'Another busy and exciting year'

   • Turnover - increased by 33 per cent. to £9.1 million

   • Profit before tax amortisation and exceptional costs - up 30 per cent to
     2.7 million

   • Earnings per share before amortisation and exceptional costs - up 21
     percent to 38.3p

   • Organic growth - from the management of new-build properties continues
     to increase strongly

   • Forward visibility - The number of new developments where the group has
     contracts to manage, and will receive income in future years, continues to
     grow apace

   • Freehold Managers PLC - (which was acquired in September 2003) provided
     its first full year's contribution to the group and was in line with
     expectations

   • New regional office - Southampton regional office opened at the start
     of 2005 to manage fast expanding business in the South and South West of
     England

George Brutton, Chairman of Solitaire Group Plc, commented:

'I am very pleased to report another busy and exciting year for Solitaire with
turnover and pre-tax profits significantly increased. This success is driven by
the continued organic growth from our property management operations and also
the inclusion for the first time of a full year's income from Freehold Managers
PLC. We are trading in line with our expectations and I look forward to another
successful year'

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



Chairman's statement

I am very pleased to report another busy and exciting year for Solitaire with
turnover and pre-tax profits significantly increased. This success is driven by
the continued organic growth from our property management operations and also by
the inclusion for the first time of a full year's contribution from Freehold
Managers PLC (FMP).

Results

Turnover increased by 32.8 per cent to £9.1 million (2003: £6.9 million) and
includes 12 months contribution from FMP (2003: 3 months).

The operating profit for the year ended 31 December 2004, before writing off
exceptional costs, goodwill amortisation and interest, increased by 37.7 per
cent to £3.1 million (2003: £2.3 million). Exceptional costs include a provision
of £70,000 for future costs relating to Moss Kaye Pembertons' move to new
offices and a small transfer to reserves of £3,000 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 £503,000 or 29.9 per cent to £2.2 million (2003: £1.7
million) and earnings per share under FRS 14 were up by 19.7 per cent to 28.5p
(2003: 23.8p). Adjusted earnings per share, before exceptional costs, goodwill
amortisation and after interest were 38.3p (2003: 31.6p) up 21.2 per cent.

The board is recommending the payment of an increased final dividend of 8.7p
(2003: 8.0p) per share making a total for the year of 12.3p (2003: 11.3p), an
increase of 8.8 per cent over 2003. The final dividend will be paid on 29 June
2005 to shareholders on the register on 6 May 2005.

Business development

FMP was acquired towards the end of 2003 and has shown encouraging and steady
development in line with the board's expectations. In addition, the group's
pipeline of property management business has increased again to record levels.
Income from this pipeline of new developments will only commence when the
developments are completed and sold by the developers over the next 18 months to
two years. Our contracted future management business is substantial and the
board recognises the need for continual investment to support this growth and
also to comply with the requirements of the Commonhold & Leasehold Reform Act
2002. With this in mind we continue to monitor our costs closely and endeavour
to keep a proper balance between income and expenditure.

During 2004 we extended the office space we occupy at our head office in Barnet
and also at our branch office in Leicester to deal with the increase in business
we have experienced.

Just after the year end we opened a new regional office in Southampton to manage
our fast expanding portfolio of properties in the South and South West of
England. We have had a presence in the South and South West of England and
particularly on the South Coast for quite some time now, and the opening of our
Southampton office reflects the growth in new business which we have experienced
and our desire to better serve our developer clients and residents in this area.
Based on our experience with our other regional office in Leicester, it is
expected that this new office will attract substantial inflows of new
instructions.

Both Pembertons Residential (Pembertons) and Moss Kaye Pembertons (MKP) had
outgrown their existing accommodation and I am pleased to report that in January
2005 they acquired new offices in Swiss Cottage, London which will enable them
to grow their business over the coming years.

People

The continuing growth of our core property management business has led to an
increase in staff to support the needs of both residents and our developer
clients. We continue to seek out appropriately qualified and motivated people to
whom we provide appropriate training wherever necessary.

Current trading and prospects

The progress made by our property management operations during 2004 has been
excellent with a major increase in both revenues and in the new business
pipeline and in the absence of an unforeseen deterioration in the volume of
residential sales by our developer clients, we look forward to our property
management business continuing to achieve steady growth during 2005. In
addition, we anticipate that FMP will continue to provide strong core support to
group earnings.

As in previous years we continue to look for acquisitions that will provide
increased shareholder value and which will integrate with our existing core
businesses. We are, however, focused on organic growth and continue to invest in
all our businesses on an ongoing basis.

I am pleased to report that current trading is in line with our expectations and
I look forward to another successful year.

George Brutton FRICS

Chairman
25 April 2005


Consolidated profit and loss account
Year ended 31 December

                                                            2004      2003
                                              Notes        £'000     £'000

Turnover                                                   9,105     6,855

Operating expenses
External fees and commissions                                325       209
Other administration expenses                              5,680     4,395

                                                           3,100     2,251
Amortisation of goodwill                                     410       189
Exceptional costs                                 2           73       177

Operating profit                                           2,617     1,885

Net interest paid                                          (432)     (203)

Profit on ordinary activities before taxation              2,185     1,682

Taxation on ordinary activities                              784       567

Profit on ordinary activities after taxation               1,401     1,115

Dividends                                         3          609       552

Retained profit for the year                                 792       563

Basic and diluted earnings per share              4        28.5p     23.8p
Adjustment for amortisation                                 8.3p      4.0p
Adjustment for exceptional costs                            1.5p      3.8p

Adjusted earnings per share                       4        38.3p     31.6p


Consolidated statement of total recognised gains and losses

                                                            2004      2003
                                                           £'000     £'000

Profit for the year                                        1,401     1,115
Revaluation of freehold reversions                         2,000         -

Total recognised gains for the year                        3,401     1,115


All amounts relate to continuing activities.

Consolidated balance sheet
31 December

                                             Group             Company
                                        2004      2003      2004      2003
                                       £'000     £'000     £'000     £'000

Fixed assets
Intangible assets                      7,149     7,554         -         -
Tangible assets
Office equipment                         485       464         -         -
Freehold land and buildings              261       261         -         -
Freehold reversions                   16,014    12,743         -         -
Investments                                -         -     9,527     9,522
                                      16,760    13,468     9,527     9,522

                                      23,909    21,022     9,527     9,522

Current assets
Debtors                                4,051     2,447     5,803     4,021
Cash and deposits                        391       681         -         -

                                       4,442     3,128     5,803     4,021

Creditors: amounts falling
due within one year
Borrowings                             2,299     1,573     1,968     1,247
Other liabilities                      2,336     1,942       983       938

                                       4,635     3,515     2,951     2,185
Net current (liabilities) /            (193)     (387)     2,852     1,836
assets

Total assets less current             23,716    20,635    12,379    11,358
liabilities

Creditors: amounts falling
due after more than one
year
Borrowings                             6,460     5,467     5,462     4,455
Other liabilities                        610     1,550       610     1,550

                                       7,070     7,017     6,072     6,005
Provisions for liabilities
and charges
Deferred taxation                         20         -         -         -

Net Assets                            16,626    13,618     6,307     5,353

Capital and reserves
Called-up share capital                  495       489       495       489
Share premium account                  3,825     3,615     3,825     3,615
Revaluation reserve                    8,731     6,731         -         -
Profit and loss account                3,575     2,783     1,987     1,249

Equity shareholders' funds            16,626    13,618     6,307     5,353



Consolidated cash flow statement
Year ended 31 December

                                                           2004      2003
                                                          £'000     £'000

Cash flow from operating activities                       2,033     1,720

Returns on investments and servicing of finance
Interest received                                            21        12
Interest paid                                             (453)     (215)

Net cash outflow from returns on investment and           (432)     (203)
servicing of finance

UK corporation tax                                        (801)     (636)

Capital expenditure and financial investment
Office equipment                                          (239)     (380)
Purchase of freehold reversions                         (1,303)   (1,004)
Disposal of freehold reversions                              32         -

Net cash outflow from capital expenditure and           (1,510)   (1,384)
financial investment

Deferred consideration of acquisition of                  (779)   (3,056)
subsidiary
Equity dividends paid                                     (570)     (497)

Cash outflow before use of liquid resources and         (2,059)   (4,056)
financing

Management of liquid resources and financing
Financing                                                 1,128     4,581

(Decrease) / increase in cash in the year                 (931)       525


                                                           2004      2003
Reconciliation of net cash flow to movement in            £'000     £'000
net debt

(Decrease) / increase in cash in the year                 (931)       525
Cash inflow from increased debt                         (1,078)   (4,416)

Movement in net debt                                    (2,009)   (3,891)
Non cash deferred taxation provision                       (20)         -
Opening net debt                                        (6,359)   (2,468)

Closing net debt                                        (8,388)   (6,359)





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 2004 and have been prepared on a basis consistent with
      the audited financial statements for the year ended 31 December
      2003.

2     Exceptional costs
      Exceptional items include a provision of £70,000 for future costs
      relating to Moss Kaye Pembertons' move to new offices and a
      transfer to reserves of £3,000 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 3.6p
      (2003: 3.3p) per share. The company has proposed a final dividend
      of 8.7p (2003: 8.0p) per share making a total of 12.3p (2003:
      11.3p) for the year.

4     Earnings per share
      The calculation of earnings per share for the year ended 31
      December 2004 is based on earnings of £1,401,000 (2003:
      £1,115,000) and a weighted average number of shares in issue of
      4,913,523 (2003: 4,686,880). There is no significant difference
      between basic and diluted earnings per share in 2004 and 2003.
      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 2004 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