AGM Statement

Sutton Harbour Holdings PLC
26 July 2005


                          Sutton Harbour Holdings plc

                                 AGM Statement

Our new financial year has started well. Our traditional marine related
activities have made steady progress. The trend towards larger fishing vessels
using our facilities has led to an increase in fuel sales in both volume and
value but with high fuel prices margins are tight if we are to maintain market
share. The marina remains full and demand is strong for any berths that become
vacant.

Around the harbour it has been exciting to see the completion of our Harbour
Avenue development and the progress of the Shepherd's Wharf development. The
frame of the new office block for the Department of Works and Pensions on the
Moon Street site is now in place and the development is currently on schedule
and budget. The apartments being built by Barratt Homes on the other part of the
same site are also going up fast. Another project underway is the development of
apartments on the Penrose site. We are undertaking this development with
Signpost Housing Association. We have a number of other regeneration projects in
hand around Sutton Harbour and further afield but there is still work to do
before we can be sure any of these will come to fruition.

As I said in my statement with the accounts, both of the healthcare developments
by ReSound Health Limited, in which we have a 37.2% interest, are well underway
with the first health centre due for opening this autumn. We intend to bid for
other similar schemes as they become available in the coming months because we
believe they are attractive to your company as they provide guaranteed long term
returns with public sector tenants. Bidding for such schemes is both
time-consuming and costly but the rewards are worthwhile if one is successful.

Passenger numbers passing through Plymouth City Airport in the first three
months of the financial year were largely unchanged on those for the
corresponding period a year ago. We do not expect significant increases in the
current year unless additional routes are introduced, either by Air Southwest or
by other carriers.

Air Southwest has again exceeded our expectations in the first three months of
this financial year during which it carried 73,000 passengers compared with
50,000 in the same period last year. This year's total has, of course, been
boosted by the new routes introduced in April. We have maintained a 74% aircraft
load factor and suffered no dilutory effect with the new routes. If this
performance continues we expect another good year for Air Southwest despite the
high price of fuel and the weakening pound. We are encouraged by various recent
positive statements from Cornwall County Council about the future of Newquay
Airport and the recent decision to go ahead with the enlargement of the terminal
facilities there.

Our aim in the year ahead is to balance growing airline revenues with rental
income so that the company's earnings profile is not significantly altered.
There are many opportunities available for us, particularly in regeneration, and
we are confident we have the skills and ambition to translate these into higher
profits and dividends for our shareholders.



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