Interim Results

Solitaire Group PLC
22 September 2004





22 September 2004



                              SOLITAIRE GROUP Plc

    Solitaire is a leading national provider of property management services



                                INTERIM RESULTS

                     FOR THE SIX MONTHS ENDED 30 JUNE 2004



                        'EXCELLENT GROWTH FOR SOLITAIRE'


                                       Highlights


                                            Change      Six months    Six months      Year to
                                          per cent           ended         ended  31 December                     
                                                      30 June 2004  30 June 2003         2003
                                                             £'000         £'000        £'000

Turnover                                      48.8           4,511         3,032        6,855
Profit before tax, amortisation,              
exceptional costs & interest                  74.9           1,590           909        2,251
Profit before tax                             50.6           1,178           782        1,682

Earnings per share before amortisation        
and exceptional costs                         57.4           20.3p         12.9p        31.6p
Earnings per share under FRS 14               33.3           15.6p         11.7p         23.8
Interim dividend                               9.1            3.6p          3.3p        11.3p



•  Solitaire's property management business continues to expand both from
   existing and new clients

•  The number of contracts for future management entered into but not yet
   producing income continues to grow

•  The acquisition of Freehold Managers PLC is delivering material benefit
   to the group and is performing in line with expectations



George Brutton, Chairman of Solitaire Group Plc, commented:



'Solitaire has seen its acquisition of FMP fully vindicated by an excellent set
of results. We are delighted by FMP's significant contribution to our
performance and its successful incorporation into the group. The continued
growth in the number of properties under Solitaire's management and the forward
visibility provided by both our recurring income stream and the new contract
order book allows us to look forward to the rest of the year with confidence.'



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 delighted to report a substantial increase in the group's profit before
tax, up by 50.6% over last year, driven by the growth of our residential
management business and by the inclusion for the first time of the results from
Freehold Managers PLC (FMP) which joined the group in September 2003. The
successful inclusion of FMP into Solitaire confirms your company as one of the
leading property service businesses in the UK and marks an exciting stage in our
development.



Results and dividend

Turnover increased by 48.8% to £4,511,000 (2003: £3,032,000) and includes the
contribution from FMP for the half year for the first time. The operating profit
for the six months to 30 June 2004, before writing off exceptional costs,
goodwill amortisation and interest, increased by 74.9% to £1,590,000 (2003:
£909,000). Exceptional costs relate to a transfer to reserves for 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 £396,000 or 50.6% to £1,178,000 (2003: £782,000) and
earnings per share under FRS 14 were up by 33.3% to 15.6p (2003: 11.7p).
Adjusted earnings per share, before exceptional costs, goodwill amortisation and
after interest were 20.3p (2003: 12.9p) up 57.4%.



The board is recommending the payment of an increased interim dividend of 3.6p
(2003: 3.3p) per share, an increase of 9.1% over 2003, reflecting the board's
confidence in the future prospects of the group. This will be paid on 19
November 2004 to shareholders on the register on 1 October 2004.



Review of operations

Residential property management

The group has always had an involvement with ground rent management and with the
inclusion of FMP that element of the business has dramatically increased. FMP
have been successful during the period in acquiring a number of portfolios of
ground rents for the Freehold Income Trust ('FIT'), and are also negotiating on
a number of other large contracts.



Solitaire residential management continues to expand its portfolio of properties
under contract for future management. The number of new contracts where income
has started to flow is slightly lower in the first six months of 2004 compared
with last year due to fluctuations in building completion times and the increase
in scale of some of the new developments.




Professional and commercial services

Moss Kaye Pembertons has experienced growth in the provision of professional
services to the property industry and is a positive contributor to group
profits. We continue to cross-refer business between group companies wherever
possible. The commercial estate agency business is still relatively quiet but
there are signs of improvement in this area.



Insurance services

The inclusion of FMP's managed portfolio has increased the total insurance value
of properties covered to over £2.5 billion.



Management of residential rented property

The volume of rental management instructions has remained fairly static in the
first six months as we continue to manage properties for our existing clients.



Current trading and prospects

Solitaire has seen its acquisition of FMP fully endorsed by an excellent set of
results. We are delighted by FMP's significant contribution to our performance
and its successful incorporation into the group. The continued growth in the
number of properties under Solitaire's management and the forward visibility
provided by both our recurring income stream and the new contract order book
allows us to look forward to the rest of the year with confidence.



The group maintains its strategy of driving organic growth through its existing
operations, whilst at the same time, remaining responsive to strategic
opportunities as they present themselves.



George Brutton, FRICS

Chairman

22 September 2004


Unaudited consolidated profit and loss account

                                                                Six months  Six months         Year
                                                                to 30 June  to 30 June   to 31 Dec.
                                                                       2004        2003        2003
                                                      Notes           £'000       £'000       £'000


Turnover                                                              4,511       3,032       6,855

Operating expenses
External fees and commissions                                           123          94         209
Other administration expenses                                         2,798       2,029       4,395

                                                                      1,590         909       2,251
Amortisation of goodwill                                                205          57         189
Exceptional costs                                     2                  27           -         177

Operating profit                                                      1,358         852       1,885

Net interest paid                                                     (180)        (70)       (203)

Profit on ordinary activities before taxation                         1,178         782       1,682

Taxation on ordinary activities                                         415         241         567


Profit on ordinary activities after taxation                            763         541       1,115

Dividends                                             3                 177         153         552

Retained profit for the period                                          586         388         563

Basic and diluted earnings per share                  4               15.6p       11.7p       23.8p
Adjustment for amortisation                                            4.2p        1.2p        4.0p
Adjustment for exceptional costs                                       0.5p           -        3.8p

Adjusted earnings per share                           4               20.3p       12.9p       31.6p

Dividend per share                                    3                3.6p        3.3p       11.3p








Unaudited consolidated balance sheet

                                                                  30 June       30 June       31 Dec.
                                                                     2004          2003          2003
                                                                    £'000         £'000         £'000

Fixed assets
Intangible assets                                                   7,349         1,734         7,554
Tangible assets
Office equipment                                                      502           298           464
Freehold land and buildings                                           261           261           261
Freehold investment reversions                                     13,581        12,604        12,743
                                                                   14,344        13,163        13,468

                                                                   21,693        14,897        21,022

Current assets
Debtors                                                             3,334         2,243         2,447
Cash and deposits                                                     551           112           681

                                                                    3,885         2,355         3,128


Creditors: amounts falling due within one year
Borrowings                                                          1,517         1,099         1,573
Other liabilities                                                   2,524         1,511         1,942

                                                                    4,041         2,610         3,515

Net current liabilities                                             (156)         (255)         (387)

Total assets less current liabilities                              21,537        14,642        20,635

Creditors: amounts falling due after more than
one year
Borrowings                                                          5,705         2,167         5,467
Other liabilities                                                   1,550             -         1,550

                                                                    7,255         2,167         7,017

Net Assets                                                         14,282        12,475        13,618


Capital and reserves
Called-up share capital                                               491           464           489
Share premium account                                               3,691         2,671         3,615
Revaluation reserve                                                 6,731         6,731         6,731
Profit and loss account                                             3,369         2,609         2,783


Equity shareholders' funds                                         14,282        12,475        13,618









Unaudited consolidated cash flow statement
                                                                             Six months Six months       Year
                                                                             to 30 June to 30 June      to 30
                                                                                                        Dec..
                                                                                   2004       2003       2003
                                                                                  £'000      £'000      £'000

Cash flow from operating activities                                               1,564      1,076      1,720

Returns on investments and servicing of finance
Interest received                                                                    10          5         12
Interest paid                                                                     (190)       (75)      (215)

Net cash outflow from returns on investment and                                               
servicing of finance                                                              (180)       (70)      (203)
                                                                                 

UK corporation tax                                                                (335)      (355)      (636)

Capital expenditure and financial investment
Office equipment                                                                  (131)      (163)      (380)
Purchase of freehold reversions                                                   (838)      (865)    (1,004)

Net cash outflow from capital expenditure and                                     
financial investment                                                              (969)    (1,028)    (1,384)

Acquisition of subsidiary                                                             -          -    (3,056)
Equity dividends paid                                                             (392)      (338)      (497)

Cash outflow before use of liquid resources and                                   
financing                                                                         (312)      (715)    (4,056)

Management of liquid resources and financing
Financing                                                                           109        409      4,581
Equity                                                                                -         29          -

Decrease in cash in the year                                                      (203)      (277)        525

                                                                                30 June    30 June     31 Dec
                                                                                   2004       2003       2003
Reconciliation of net cash flow to movement in net debt                           £'000      £'000      £'000


Increase in cash in the year                                                      (203)      (277)        525
Cash inflow from increased debt                                                   (109)      (409)    (4,416)

Movement in net debt                                                              (312)      (686)    (3,891)
Opening net debt                                                                (6,359)    (2,468)    (2,468)

Closing net debt                                                                (6,671)    (3,154)    (6,359)









SOLITAIRE GROUP Plc

Notes


1       Basis of preparation of unaudited interim information

        The results for the six months ended 30 June 2004 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 
        2003. The comparatives for the year ended 31 December 2003 have been
        extracted from the audited consolidated financial statements for that 
        period.

        The audited consolidated financial statements for the year ended 31 
        December 2003 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       Exceptional costs

        A transfer to reserves relating to the current and future exercise of 
        share options, necessary under UITF 17 was written off as an exceptional 
        cost during the period to 30 June 2004. This cost is not an allowable 
        expense in the calculation of the tax charge for the year.


3       Dividends

        The board has declared an interim dividend of 3.60p (2003: 3.30p) per 
        ordinary share, payable on 19 November 2004 to shareholders on the 
        register on 1 October 2004.


4       Earnings per share

        The calculation of earnings per share for the six months ended 30 June 
        2004 is based upon a profit of £763,000 (2003: £541,000) and the average 
        number of ordinary 10p shares in issue of 4,895,666 (2003: 4,636,831). 
        The group considers that the additional disclosure of the adjusted 
        earnings per share before the effect of amortisation and exceptional 
        costs more truly reflects its operational performance.


5       Interim report

        Copies of the interim report for the six months ended 30 June 2004 will 
        be sent to shareholders on 21 October 2004. 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.






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