Final Results

Sutton Harbour Holdings PLC
27 May 2004


27 May 2004

                          Sutton Harbour Holdings plc
                 Final Results for the year ended 31 March 2004

        Pre tax Profits of £1.61m; Dividend up 10%; 1-for-1 Bonus Issue;
                              Board Appointments;

Sutton Harbour Holdings plc, the AIM listed regeneration and transport group
announces final results for the year ended 31 March 2004 which show continued
progress across the Group.

In her statement to shareholders, Chairman Ellen Winser reported:
'Profits from our on-going activities accelerated in the second half year, after
a first half of significant achievement. Air Southwest has exceeded our
expectations and is expected to make a profit in its first full year, whilst our
property development and regeneration activities continue to perform strongly.'

Highlights

   • Profits from ongoing activities up 13.1% to £1,870,000
   • Pre tax profits up 4% to £1,604,000 (after charging start up costs for
     Air Southwest)
   • Earnings per share up 3.7% to 9.25p
   • Total dividend for year up 10% to 5.5p per share
   • Air Southwest expected to deliver a profit in first full year of
     operation; now operating flights between Plymouth, Newquay, London,
     Manchester, Bristol and Jersey
   • Property and regeneration activities continuing to expand
   • Property Portfolio valuation increases by £3m to £29,955,000
   • One-for-one bonus issue
   • Appointments of two new Board Directors

Commenting on current trading and prospects, Ellen Winser added:
'Whilst we are still in the process of consolidating our aviation interests into
the Group, we continue to strengthen our core by developing our property and
regeneration interests in the region. We are very confident of our longer term
prospects.'

FULL TEXT OF CHAIRMAN'S STATEMENT AND ACCOUNTS FOLLOW
Website: www.sutton-harbour.co.uk

Enquiries:
Nigel Godefroy, Finance Director, Tel: [phone]
Ken Rees/Paul Vann, Binns Winningtons, Tel: [phone] or 07802 466567
Jason Clark, Deborah Clark Associates, Tel: [phone]





Chairman's Statement

Last Autumn I reported that the Group's first half year was a period of
significant achievement. I am pleased to report that during the second half of
the year your Company has realised the results of these achievements. Air
Southwest, our airline subsidiary, has exceeded our expectations in its first
months of operation, our regeneration sector has delivered another major phase
of the Sutton Regeneration Masterplan and our partnering initiatives with
private and public sector bodies have made significant advances.

I am pleased to say that operating profits from our activities, excluding the
airline, accelerated in the second half year and, at £1,870,000, are up 13.1% on
those of a year ago despite losses encountered at Plymouth City Airport
following the withdrawal of British Airways. Profit before taxation is up a more
modest 4% to £1,604,000 from £1,543,000 last year, after accounting for the
initial revenue costs of setting up the airline (£169,000). The property and
regeneration activities of the business have contributed very well to results
with several projects coming to fruition. The total tax charge on our profits is
30%. Earnings per share are up 3.7% from 8.92p to 9.25p.

Having held the interim dividend unchanged because of costs incurred starting
the airline and, at the time, little trading experience to go on, your Board is
now recommending a final dividend of 3.7 pence per ordinary share. This, with
the interim dividend of 1.8 pence per share, makes a total dividend of 5.5 pence
per share, an increase of 10% (2003: 5.0 pence). The dividend will be payable on
10 September 2004 to shareholders on the register on 27 August 2004. The shares
are expected to go ex-dividend on 25 August 2004. In addition your Board has
decided to capitalise some of the Share Premium Account to make a one for one
bonus issue. The shares are expected to go ex-scrip at the same time as they go
ex-dividend and new certificates will be sent to shareholders on 10 September
2004.

Following the complete withdrawal of British Airways from Plymouth and Newquay,
we secured landing rights to four pairs of slots at Gatwick and our airline, Air
Southwest, took over the four times daily flights without a break in the
service. Since then new services operating between Plymouth, Bristol and
Manchester and Bristol, Plymouth and Jersey have commenced. Although the
Manchester service only started on 1 March 2004, the passenger loads have been
very encouraging to date and the Gatwick services are showing month on month
growth. We are optimistic that the airline will make a profit in its first full
trading year - a most satisfactory prospect.

Activity at Plymouth City Airport, now with eleven scheduled services per day,
is almost back to its peak. However, the results will be undermined by customary
discounts offered on new routes for the next couple of years. Air Wales recently
added to their Dublin and Cork services a twice daily Plymouth, Cardiff,
Newcastle service.

Good progress has been made over recent months with the Plymouth Local
Improvement Finance Scheme, where in partnership with Plymouth Primary Care
Trust, Partnerships for Health, Midas Group Limited and others, the Company is
close to financial close for Tranche 1 to construct community healthcare
facilities in Plymouth. We hope to be able to report that contractors are on
site later this year.


Your Company, together with a national residential developer has concluded a
deal with Cornwall College in St Austell from which returns to the Company will
be phased over three years. Masterplanning assignments are underway in Penzance
and the Company continues to establish good relationships with the public sector
including local authorities and the health and education sectors.

Following on from the Vauxhall Street and Harbour Avenue projects, the next
stage in the Sutton Regeneration Masterplan, a mixed use scheme at Shepherd's
Wharf, has been put in place. Construction has already begun on the site.
Further regeneration schemes around the Sutton Harbour area are well underway
and the Company continues to work closely with Plymouth City Council with the
'Sutton Partnership'. Since the year end we have received planning permission
for a residential and commercial development on the Moon Street site.

Our fishing related activities achieved results much like those of a year ago
but last year's figures included some non-recurring income so the segmental
profit shows a decline. Our marine leisure business made solid progress and
rental income from our property portfolio advanced satisfactorily.

This year's balance sheet includes the result of the formal re-valuation of our
properties undertaken by Stratton Creber. The re-valuation showed an increase of
some £3 million on that of five years ago.

Last year, Nigel Godefroy was appointed to take over when Duncan Godefroy
retires as Managing Director this September. John Humphrey will retire this
October and Raymond Wood will retire following the AGM.

We have recognised the importance of stability of the Executive team during this
period of change and therefore propose the appointment of two Senior Managers
within the Group to the Group Board. These appointments will take effect on 1
July. Natasha Gadsdon has been appointed Finance Director Designate and will
take over from Nigel when he becomes Managing Director. Natasha, aged 34, a
Chartered Accountant, has served eight years with the Group as Group Accountant
and since November 2001 as Group Company Secretary. Timothy Bacon, a Chartered
Surveyor, will become an Executive Director with particular focus on the
Property and Regeneration activities of the Group. Tim, aged 36, has been with
the Group four years and has been instrumental in managing the 'Sutton
Partnership', and other regeneration schemes in the South West in that time.

On behalf of the Board, I wish to express our sincere and grateful thanks for
the contributions made by all our retiring Directors. John Humphrey joined the
Group when we acquired Plymouth City Airport in 2000 and his knowledge and
expertise has proved most valuable. Ray Wood has been a non-executive Director
since 1993 and has been a great support particularly in connection with the
Group's property and regeneration activities. He has been a valuable member of
both the Audit and Remuneration committees and has never missed a single Board
meeting in all the time he has been a Director.

Duncan Godefroy, who has been with the Group for 42 years, has made an
outstanding contribution to the success of the Group. An area of industrial
decay can be regenerated to an award winning tourist area but it takes vision
and determination, qualities Duncan has in abundance. Sutton Harbour as it is
today is a fitting testament to his life's work. His wise counsel, detailed
knowledge of the history of the Company and enthusiasm for all the Group's
activities have been greatly appreciated.

The past year has seen a period of great change for the Group and I thank all
our staff who have taken up the challenge to achieve the milestone events over
the past year. Whilst we are still in the process of consolidating our aviation
interests into the Group, we continue to strengthen our core by developing our
property and regeneration interests in the region.

With the new team we are very confident of our longer term prospects.

Ellen Winser
Chairman



Group Profit and Loss Account
For the year ended 31 March 2004
                                                           2004                    2003
                                                           £000                    £000

Turnover
Continuing Operations                                     8,383                   9,572
Airline Operations                                        3,276                       -
                                                    ------------            ------------
                                                         11,659                   9,572
                                                    ------------            ------------
Cost of Sales                                            (9,233)                 (7,281)
                                                    ------------            ------------
Gross Profit
Continuing Operations                                     2,595                   2,291
Airline Operations                                         (169)                      -
                                                    ------------            ------------
                                                          2,426                   2,291
                                                    ------------            ------------

Net Operating Expenses                                     (725)                   (638)
                                                    ------------            ------------

Operating Profit                                          1,701                   1,653
                                                    ------------            ------------

Profit on Ordinary Activities Before Interest             1,701                   1,653

Interest Payable                                            (97)                   (110)
                                                    ------------            ------------

Profit on Ordinary Activities before Taxation             1,604                   1,543

Current Taxation                                           (384)                   (228)
Deferred Taxation                                           (97)                   (232)
                                                    ------------            ------------
Taxation on Profit on Ordinary Activities                  (481)                   (460)
                                                    ------------            ------------
Profit on Ordinary Activities after Taxation
and Attributable to Shareholders                          1,123                   1,083

Dividends                                                  (668)                   (607)
                                                    ------------            ------------
Retained Profit for the Year                                455                     476
                                                   =============            ============
Earnings per Ordinary 25p share

Basic                                                      9.25p                   8.92p
Diluted                                                    9.17p                   8.83p
All figures relate to continuing activities



Balance Sheets
As at 31 March 2004
                                                       Group                       Company
                                                2004         2003            2004           2003
                                                £000         £000            £000           £000
Fixed Assets
Intangible Assets                                681            -              -              -
Tangible Assets                               31,210       28,291              -              -
Investments                                       70           70          2,217          2,217
                                          -----------  -----------    -----------    -----------
                                              31,961       28,361          2,217          2,217
                                          -----------  -----------    -----------    -----------

Current Assets
Stock                                          2,904        2,431              -              -
Debtors                                        2,339        1,804          7,248          7,188
Cash at Bank and in Hand                           4            3              8              8
                                          -----------  -----------    -----------    -----------
                                               5,247        4,238          7,256          7,196
                                          -----------  -----------    -----------    -----------
Creditors
(amounts falling due within one year)         (6,870)      (5,938)          (511)          (448)
                                          -----------  -----------    -----------    -----------
Net Current (Liabilities)/Assets              (1,623)      (1,700)         6,745          6,748
                                          -----------  -----------    -----------    -----------

Total Assets less Current Liabilities         30,338       26,661          8,962          8,965

Creditors
(amounts falling due after more
than one year)                                   (67)         (88)             -              -

Provisions for Liabilities and Charges
Deferred Taxation                             (1,547)      (1,450)             -              -
                                          -----------  -----------    -----------    -----------
                                              28,724       25,123          8,962          8,965
                                          ===========  ===========    ===========    ===========

Capital and Reserves
Called Up Share Capital                       3,037        3,037           3,037          3,037
Share Premium Account                         5,812        5,812           5,812          5,812
Revaluation Reserve                           9,193        8,638               -              -
Investment Property Revaluation Reserve       6,983        4,369               -              -
Other Reserves                                  251          251               -              -
Profit and Loss Account                       3,448        3,016             113            116
                                         -----------  -----------     -----------    -----------
Equity Shareholders' Funds                   28,724       25,123           8,962          8,965
                                         ===========  ===========     ===========    ===========

These Financial Statements were approved by the Board of Directors on 26 May
2004 and were signed on its behalf by:

Ellen Winser,
Chairman.




Consolidated Cash Flow Statement
For the year ended 31 March 2004
                                                          2004                 2003
                                                          £000                 £000

CASH FLOW STATEMENT

Net Cash Inflow from Operating Activities                4,852                  662

Returns on Investments and Servicing of Finance          (175)                (181)
Taxation                                                 (561)                (155)
Capital Expenditure                                    (1,765)                (605)
Equity Dividends Paid                                    (607)                (595)
                                                   -----------           ----------
Increase/(Decrease) in Cash in the Year                 1,744                 (874)
                                                   ===========           ==========
Reconciliation of Net Cash Flow to
Movement in Net Debt
Decrease/(Increase) in Net Debt in the Year             1,744                 (874)

Net Debt at the start of the year                      (2,714)              (1,840)
                                                  ------------           ----------
Net Debt at the end of the year                         (970)               (2,714)
                                                  ============           ==========




Consolidated Statement of Total Recognised Gains
and Losses for the year ended 31 March 2004

                                                                2004             2003
                                                                £000             £000

Unrealised surplus on revaluation of properties                3,146                -

Reported Profit on Ordinary Activities after Taxation          1,123            1,083
                                                           ----------       ----------
Total Recognised Gains and Losses
relating to the year                                           4,269            1,083
                                                           ----------       ----------
Total Gains and Losses recognised since the previous
Annual Report and Financial Statements                         4,269            1,083
                                                           ==========       ==========



Note of Consolidated Historical Cost Profits and Losses for
the year ended 31 March 2004

                                                                2004              2003
                                                                £000              £000

Reported Profit on Ordinary Activities                         1,604             1,543
Before Taxation

Realisation of property revaluation deficits of previous years   (23)                -
                                                            ---------         ---------
Historical Cost Profit on Ordinary Activities before Taxation  1,581             1,543
                                                            =========         =========

Historical Cost Profit for the year retained after
Taxation and Dividends                                           432               476
                                                            =========         =========


Note: The information contained in this Preliminary         
Announcement does not constitute the Group's Statutory Audited
Accounts for the year ended 31 March 2004. The Group's Audited
Annual Report and Accounts will be published towards the end
of June 2004.




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