Final Results - Corrective

Sutton Harbour Holdings PLC
05 June 2003

Sutton Harbour announces that the preliminary announcement of its results for
the year ended 31 March 2003, issued under RNS number 7085L at 7.00 a.m. on 30
May 2003, contained a misclassification in the Group Profit and Loss Account.



A misclassification of expense between Cost of Sales and Net Operating Expenses
of £230,000 has been noted since the preliminary announcement was published on
30 May 2003. Cost of Sales is increased by £230,000 to £7,281,000 with a
compensating adjustment of the same amount decreasing Net Operating Expenses to
£638,000. There is no effect on the Operating Profit of £1,653,000. The full
text of the corrected preliminary announcement follows.






                      SEVENTH YEAR OF CORE PROFITS GROWTH

                          FOR SUTTON HARBOUR HOLDINGS



  Sutton Harbour Holdings Plc, the Aim listed operator of Plymouth's historic
                                  harbour and
Plymouth City Airport reports strong pre-tax profits for the year ended 31 March
                                      2003


'I am delighted to report another successful year for the company, with
underlying profit before tax up by 9.5% to £1.54 million'

Ellen Winser, Chairman, Sutton Harbour Holdings Plc.


HIGHLIGHTS

• Turnover up 16.7%to £9.57 million (2002 £8.20 million)

• Underlying Pre-tax profits up 9.5% to £1.54 million (2002: £1.41million
excluding profits on property disposal)

• Adjusted earnings per share up 15% to 8.92p (2002: 7.76p excluding
profit on disposal of property)

• Total Dividend per share 5p (up 4.2% on 2002)

• The Group is in an advanced stage of negotiations with British Airways
CitiExpress over the transfer of Gatwick routes and slots to the new subsidiary,
Air Southwest Limited



FULL TEXT OF CHAIRMAN'S STATEMENT AND ACCOUNTS FOLLOW

Or visit our website: www.sutton-harbour.co.uk



For further information please contact

Duncan Godefroy, Managing Director  01752 204186

Nigel Godefroy, Finance Director and MD Designate  01752 204186

Ken Rees, Winningtons  0117 317 9477 or 07802 466567

Deborah Clark, Deborah Clark and Associates ref. Air Southwest Limited 01872
276276


                              Chairman's Statement







In this past year the Company has completed negotiations on a major phase of
harbour-side development and has made significant inroads into planned future
stages of that development. It has also recorded its most successful year in
marina berthing and has seen an improvement in fishing related income in the
second half of the year.  Certain developments in the aviation industry have
continued to present their challenges, but our undampened enthusiasm has driven
us to look for innovative ways for the Company to turn these to our advantage.
We recognise that future growth using our regeneration and development skills
will need to come from projects away from the harbour-side area and we have been
active in our search for opportunities both in Plymouth and further afield.



Profit before taxation of £1,543,000 shows little change on the £1,587,000
achieved last year, but last year's total included a £178,000 profit on the
disposal of property whereas this year's total is all from trading activity.
Underlying profits have therefore grown by a most satisfactory 9.5%. Earnings
per share are, like profit before tax, virtually unchanged at 8.92p per share
compared with 9.22p per share last year, but adjusted earnings per share, which
ignore last year's profit on disposal, have increased by 15% from 7.76p to
8.92p.Your Board is pleased to recommend a final dividend of 3.2p per share
making a total dividend for the year of 5p per share, a 4.2% increase on last
years total dividend of 4.8p per share. This will leave £476,000 to transfer to
reserves (2002: £537,000). The dividend will be payable on 12 September 2003 to
shareholders on the register on 29 August 2003. The shares are expected to go
ex-dividend on 27 August 2003.



I reported last year on the cuts by British Airways CitiExpress to services from
Plymouth City Airport.  The effect of these cuts is reflected in the reduced
profits this year from airport operations.



The Company is now in advanced discussions with British Airways CitiExpress
about taking over the Plymouth and Newquay Gatwick routes.  We have set up a
wholly owned subsidiary, Air Southwest Limited, to facilitate the smooth
transfer of the Gatwick routes and slots subject to the discussions being
satisfactorily concluded. These discussions follows the decision by British
Airways CitiExpress to discontinue operating these routes from October 2003 as
part of it's own 'size and shape restructuring'.  Shareholders will be kept
informed as matters progress.



In the last year the Company has succeeded in attracting Air Wales to Plymouth
City Airport and they now operate a popular daily service to Dublin and Cork and
a newly introduced service to Jersey.  As already reported our contract to
manage Newquay Cornwall Airport ended on 31 March 2003.


We have long known the limitations at Plymouth City Airport, that it is situated
amidst a residential area and that its runway is too short to accommodate
anything larger than a Dash 8. With the Government preparing a White Paper on
the future of aviation in the UK, we submitted the Company's proposal to build a
new airport just to the east of Plymouth. Our objective was not only to
safeguard and promote our own business, but very importantly to maintain a good
transport facility for both inward tourism and the region's population. We
currently await further news on the outcome of studies into aviation needs in
the South West, but it is fair to say that a new airport is definitely a
visionary project for the longer term. In the meantime the Company has received
confirmation that the South West of England Regional Development Agency will
fund runway and safety area improvements at the existing airport.



After two years in planning, negotiating and gaining final approvals, the
Company concluded the first phase Harbour East regeneration with a payment
received during the year. This phase will provide a landmark mixed-use
development on the North East quayside of the harbour, and contractors are
already on site. Following on from this, the Company is making good progress
towards achieving the second phase, another mixed-use development.



Although it is too early to report news on any other property related projects
at present, the Company is undertaking a number of regeneration consultancy
assignments. We have also identified new opportunities for certain public/
private regeneration initiatives within the region.



As previously reported to shareholders, the non-executive directors have,
following a thorough search and numerous interviews, selected Nigel Godefroy to
succeed Duncan Godefroy when he retires next year.   Duncan has been with the
Company for over 40 years, 30 of them as our Managing Director, a remarkable
achievement.   Nigel will bring to the position more than a decade of hands-on
experience with the Company, the last seven years as our Finance Director.



The past year has seen much change as the Company evolves to have a higher
profile in the region and its proposals are well documented in the regional, and
often national, press. I thank our staff for their continued dedication and
support in what are exciting but sometimes turbulent times. I am particularly
encouraged that the Company has been re-accredited with the 'Investors in
People' standard and that many of our staff continue to invest in shares in the
Company and the SAYE scheme.



Our objectives for the forthcoming year are to reach the next milestone with our
harbour-side regeneration schemes, to work hard to secure our region's vital air
links and to maintain the vibrancy that our fishing and marine leisure
businesses bring to Plymouth.





Ellen Winser

Chairman

30 May 2003





                          Group Profit and Loss Account

                        for the year ended 31 March 2003


                                                                                        2003            2002
                                                                                        £000            £000

Turnover                                                                               9,572           8,201


Cost of sales                                                                        (7,281)         (5,862)

Gross profit                                                                           2,521           2,339


Net operating expenses                                                                 (638)           (614)

Operating profit                                                                       1,653           1,725


Profit on ordinary activities before interest                                          1,653           1,725


Interest payable                                                                       (110)           (138)


Profit on ordinary activities before taxation                                          1,543           1,587


Current taxation                                                                       (228)           (154)
Deferred taxation                                                                      (232)           (313)

Taxation on profit on ordinary activities                                              (460)           (467)


Profit on ordinary activities after taxation and attributable to shareholders          1,083           1,120

Dividends                                                                              (607)           (583)


Retained profit for the year                                                             476             537


Earnings per ordinary 25p share


Basic                                                                                  8.92p           9.22p
Deduct profit on sale of property                                                          -         (1.46p)

Adjusted                                                                               8.92p           7.76p

Diluted                                                                                8.83p           9.14p

Diluted Adjusted                                                                       8.83p           7.69p




All figures relate to continuing activities.










                                                                                Balance Sheets

                                                                                 31 March 2003




                                                                     THE GROUP                 THE COMPANY

                                                            2003          2002          2003          2002
                                                            £000          £000          £000          £000

Fixed assets

Tangible assets                                           28,291        27,866             -             -
Investments                                                   70            63         2,217         2,217
                                                          28,361        27,929         2,217         2,217

Current assets
Stock                                                      2,431           964             -             -
Debtors                                                    1,804         1,727         7,188         7,177
Cash at bank and in hand                                       3             3             8             6
                                                           4,238         2,694         7,196         7,183

Creditors
(amounts falling due within one year)                    (5,938)       (4,641)         (448)         (431)

Net current (liabilities) / assets                       (1,700)       (1,947)         6,748         6,752

Total assets less current liabilities                     26,661        25,982         8,965         8,969

Creditors
(amounts falling due after more than one year)              (88)         (117)             -             -

Provisions for liabilities and charges
Deferred taxation                                        (1,450)       (1,218)             -             -
                                                          25,123        24,647         8,965         8,969

Capital and reserves
Called up share capital                                    3,037         3,037         3,037         3,037
Share premium account                                      5,812         5,955         5,812         5,812
Revaluation reserve                                        8,638         8,638             -             -
Investment property revaluation reserve                    4,369         4,369             -             -
Other reserves                                               251           108             -             -
Profit and loss account                                    3,016         2,540           116           120

Equity shareholders' funds                                25,123        24,647         8,965         8,969



                                                                 Consolidated Cash Flow Statement

                                                                   For the year ended 31 March 2003


                                                                                         2003           2002
                                                                                         £000           £000

CASH FLOW STATEMENT

Net cash inflow from operating activities                                                 662          1,884

Returns on investments and servicing of finance                                         (181)          (160)

Taxation                                                                                (155)          (118)

Capital expenditure                                                                     (605)          (420)

Equity dividends paid                                                                   (595)          (559)

(Decrease)/increase in cash in the year                                                 (874)            627

Reconciliation of net cash flow to movement in net debt

(Decrease)/increase in net debt in the year                                             (874)            627

Net debt at the start of the year                                                     (1,840)        (2,467)

Net debt at the end of the year                                                       (2,714)        (1,840)










                                                  Consolidated Statement of Total Recognised Gains and Losses

                                                                For the year ended 31 March 2003



                                                                                         2003           2002
                                                                                         £000           £000

Unrealised surplus on revaluation of properties                                             -          1,546

Reported profit on ordinary activities after taxation                                   1,083          1,120

Total recognised gains and losses relating to the year                                  1,083          2,666

Prior year adjustments made last year - deferred tax                                        -          (905)

Total gains and losses recognised since the previous annual report and financial
statements                                                                              1,083          1,761
                                                                                        







The cumulative effect of the prior year adjustment is £905,000 (2002: £905,000)







                                                        Note of Consolidated Historical Cost Profits and Losses

                                                                     For the year ended 31 March 2003




                                                                                         2003           2002
                                                                                         £000           £000

Reported profit on ordinary activities before taxation                                  1,543          1,587

Realisation of property revaluation gains of previous years                                 -             70

Historical cost profit on ordinary activities before taxation                           1,543          1,657

Historical cost profit for the year retained after taxation and dividends                 476            607








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