Interim Results

Solitaire Group PLC
25 September 2002


25 September 2002
  
                               SOLITAIRE GROUP Plc

    Solitaire is a leading national provider of property management services

                                INTERIM RESULTS

                        'GROWTH ACROSS MOST OPERATIONS'


                                            Highlights

                                                Change  Six months ended  Six months ended
                                                            30 June 2002      30 June 2001

Turnover                                        +26.3%        £2,882,000        £2,282,000
Profit before tax, amortisation &                
interest                                         +5.9%          £857,000          £809,000
Profit before tax                                +4.3%          £729,000          £699,000
Earnings per share before amortisation           +1.7%             11.9p             11.7p
Earnings per share                               +2.9%             10.7p             10.4p
Interim dividend                                 +9.1%             3.00p             2.75p



• Solitaire properties under management increased by over 1,200 or 5% in
  the six months

• New instructions for property management continue at record levels

• Moss Kaye Pembertons is trading in line with expectations

• New office in Leicester opened to deal with upsurge in business in the
  Midlands

• Recent enactment of Commonhold & Leasehold Reform Act 2002 offers
  opportunity to win new business
  

George Brutton, Chairman of Solitaire Group Plc, commented:

'We are seeing growth in management instructions from both existing and new
clients across most of our business. Moss Kaye Pembertons, our recently acquired
property consultancy, is trading in line with expectations, whilst the
residential property management operation continues to attract a very
satisfactory level of instructions.'



For further information:

Graham Shapiro, Joint Managing Director               Tel: [phone]
Solitaire Group Plc

Tarquin Edwards / Simon Rothschild                    Tel: [phone]
Holborn




Chairman's Statement

I am pleased to report a satisfactory first half with an increase in operating
profit for the six months to 30 June 2002. The results show a continuing rise in
the income from property management and also include full six months revenue and
expenses from Moss Kaye Pembertons against one month in 2001.

Results and dividend

The operating profit for the six months ended 30 June 2002, before charging
amortisation, increased by 5.9% to £857,000 (2001: £809,000). Turnover increased
by 26.3% to £2,882,000 (2001: £2,282,000). Earnings per share increased by 2.9%
to 10.7p (2001: 10.4p). Adjusted earnings per share, before amortisation was up
1.7% to 11.9p (2001: 11.7p).

Accordingly after interest and amortisation, pre-tax profits increased by 4.3%
to £729,000 (2001: £699,000)

The board is recommending the payment of an increased interim dividend of 3.00p
(2001: 2.75p) per share, which will be paid on 22 November 2002 to shareholders
on the register on 25 October 2002, reflecting a measure of the board's
confidence in the future.

Review of operations

Residential property management

Solitaire is one of the largest managers of residential property in the United
Kingdom.  It continues to receive instructions on a substantial number of new
developments from both national and regional developers. The period from initial
contract to receipt of income from new developments can be between eighteen
months and two years.

We have recently opened a new office in Leicester to deal with the surge in new
business in the Midlands, which will allow the company to provide a better
service to our developer clients and residents.

Professional and commercial services

Moss Kaye Pembertons has had a satisfactory six months and is trading in line
with budget. It continues to offer high level residential and commercial
property management and professional services to the property industry as well
as commercial estate agency. All divisions of Moss Kaye Pembertons continue to
receive a substantial level of new instructions from existing and new clients.
Additional professional staff have been recruited to handle the increase in the
volume of new business.

Insurance services

The portfolio valuation of properties managed by the group for insurance
purposes amounts to some £1.3 billion.  The insurance market remains volatile
and increasing premiums are being asked on both property and professional
indemnity cover. Solitaire continues to use its buying power to obtain
competitive terms and reduce the impact on its clients whenever possible.

Buy-to-Let

Property Investment Portfolio Services (PIPS) is still attracting new clients
from overseas keen to invest in the UK property market. The increase though in
property prices, without a corresponding increase in rental, has made the
achievement of good returns for our clients even more dependent on our property
selection skills.

Management of residential rented property

The income from the management of rental property continues to reduce.  We are
still actively pursuing new rented property instructions so as to strengthen
this side of our management business and are looking at ways to expand it and
promote new initiatives.

Current trading and prospects

We are seeing steady growth in management instructions from both existing and
new clients across most of our business. Moss Kaye Pembertons, our recently
acquired property consultancy, is trading in line with expectations, whilst the
residential property management operation continues to attract a very
satisfactory level of instructions.

With the enactment of the Commonhold and Leasehold Reform Act 2002, residential
leaseholders have an enhanced opportunity to assume responsibility for the
management of their blocks. We believe that this presents your company with an
exciting opportunity to win new business.


George Brutton, FRICS
Chairman
25 September 2002




Unaudited consolidated profit and loss account

                                                                    Six months    Six months      Year to
                                                                    to 30 June    to 30 June       31 Dec
                                                                          2002          2001         2001
                                                           Notes         £'000         £'000        £'000
                                                                       _______       _______      _______

Revenue                                                                  2,882         2,282        5,062

Operating expenses
External fees and commissions                                              158            75          245
Other administration expenses                                            1,867         1,398        3,166
                                                                       _______       _______      _______
                                                                           857           809        1,651
Amortisation of goodwill and development costs                              57            60          140
Exceptional costs                                                            -             -          233
                                                                       _______       _______      _______

Operating profit                                                           800           749        1,278

Interest receivable                                                          4             8            8

Interest payable                                                          (75)          (58)        (127)
                                                                       _______       _______      _______
Profit on ordinary activities before taxation                              729           699        1,159

Taxation on ordinary activities                                            233           225          354
                                                                       _______       _______      _______

Profit on ordinary activities after taxation                               496           474          805

Dividends                                                      2           138           125          433
                                                                       _______       _______      _______

Retained profit for the period                                             358           349          372
                                                                       _______       _______      _______

Basic and diluted earnings per share                           3         10.7p         10.4p        17.6p
Adjustment for amortisation                                               1.2p          1.3p         3.1p
Adjustment for exceptional costs                                             -             -         5.1p
                                                                       _______       _______      _______

Adjusted earnings per share                                    3         11.9p         11.7p        25.8p
                                                                       _______       _______      _______

Dividend per share                                                       3.00p         2.75p         9.5p
                                                                       _______       _______      _______




Unaudited consolidated balance sheet

                                                                       30 June       30 June       31 Dec
                                                                          2002          2001         2001
                                                                         £'000         £'000        £'000
                                                                       _______       _______      _______
Assets employed

Fixed assets
Intangible assets                                                        1,840         1,907        1,880
Tangible assets                                                          9,842         6,328        9,642
                                                                       _______       _______      _______

                                                                        11,682         8,235       11,522
                                                                       _______       _______      _______
Current assets
Debtors                                                                  1,946         1,859        1,976
Cash and deposits                                                          301           366          226
                                                                       _______       _______      _______

                                                                         2,247         2,225        2,202
                                                                       _______       _______      _______

Creditors: amounts falling due within one year                           2,450         2,340        2,527
                                                                       _______       _______      _______

Net current liabilities                                                  (203)         (115)        (325)
                                                                       _______       _______      _______

Total assets less current liabilities                                   11,479         8,120       11,197

Creditors: amounts falling due after more than one                       
year                                                                     1,583         1,771        1,659
                                                                       _______       _______      _______

                                                                         9,896         6,349        9,538
                                                                       _______       _______      _______

Financed by
Called-up share capital                                                    462           456          462
Share premium                                                            2,647         2,486        2,647
Revaluation reserve                                                      4,731         1,731        4,731
Profit and loss account                                                  2,056         1,676        1,698
                                                                       _______       _______      _______

Equity shareholders' funds                                               9,896         6,349        9,538
                                                                       _______       _______      _______






Consolidated cash flow statement
                                                             Six months   Six months      Year to
                                                             to 30 June   to 30 June       31 Dec
                                                                   2002         2001         2001

Cash flow from operating activities                               1,401        1,090        1,283

Returns on investments and servicing of finance                    (71)         (51)        (119)
Taxation                                                          (346)        (225)        (384)
Capital expenditure and financial investment                      (241)        (468)        (824)
Acquisition of subsidiary                                          (17)        (960)      (1,015)
Equity dividends paid                                             (308)        (284)        (411)
                                                               ________     ________     ________
Cash (outflow) / inflow before use of liquid
resources and financing                                             418        (898)      (1,470)

Financing                                                          (76)          775          786
                                                               ________     ________     ________

Increase / (Decrease) in cash in the period                         342        (123)        (684)
                                                               ________     ________     ________

Reconciliation of net cash flow to movement in net
debt

Increase / (Decrease) in cash in the period                         342        (123)        (684)
Cash flow from financing                                             76        (775)        (662)
                                                               ________     ________     ________

Changes in net funds resulting from cash flows                      418        (898)      (1,346)
Net debt at the beginning of the period                         (2,467)      (1,121)      (1,121)
                                                               ________     ________     ________

Net debt at the end of the year                                 (2,049)      (2,019)      (2,467)
                                                               ________     ________     ________


Reconciliation of operating profit to net cash inflow
from operating activities
Operating profit                                                          800           749        1,278
Amortisation of goodwill                                                   57            60          140
Depreciation of fixed assets                                               41            38           81
Shares issued for non cash consideration                                    -             -           43
Decrease / (increase) in debtors                                           32         (167)        (283)
Increase (decrease) in creditors                                          471           410           24
                                                                      _______       _______      _______

Net cash flow from operating activities                                 1,401         1,090        1,283
                                                                      _______       _______      _______



SOLITAIRE GROUP Plc

Notes

1.         Basis of preparation of unaudited interim information

           The results for the six months ended 30 June 2002 have been reviewed by MacIntyre Hudson and
           have been prepared on the basis of the accounting policies set out in the consolidated
           financial statements at 31 December 2001.  The comparatives for the year ended 31 December
           2001 have been extracted from the audited consolidated financial statements for that period.
           The comparative numbers in the cash flow for the reconciliation of net debt have been
           adjusted to reflect a change in the method of displaying the funds arising from the issue of
           shares under the groups share option scheme.

           The audited consolidated financial statements for the year ended 31 December 2001 have been
           filed with the Registrar of Companies and include an unqualified audit report. The
           comparatives included in this report do not constitute statutory accounts within the meaning
           of section 240 of the Companies Act 1985.


2.         Dividends

           The board has declared an interim dividend of 3.00p (2001: 2.75p) per ordinary share, payable
           on 22 November 2002 to shareholders on the register on 25 October 2002.


3.         Earnings per ordinary share

           The calculation of earnings per share for the six months ended 30 June 2002 is based upon a
           profit of £496,000 (2001: £474,000) and the average number of ordinary 10p shares in issue of
           4,623,581 (2001: 4,561,831). The group considers that the additional disclosure of the
           adjusted earnings per share before the effect of amortisation more truly reflects its
           operational performance.


4.         Interim report

           Copies of the interim report for the six months ended 30 June 2002 will be sent to
           shareholders on 22 October 2002. Further copies will be available from the Company Secretary,
           Solitaire Group Plc, Lynwood House, 10 Victors Way, Barnet, Hertfordshire, EN5 5TZ and at the
           group's website, www.solitairegroup.com.






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