Final Results

Sutton Harbour Holdings PLC
24 May 2007


                          SUTTON HARBOUR HOLDINGS PLC


              Preliminary Results for the year ended 31 March 2007



Chairman's Statement

Year ended 31 March 2007


I am pleased to report that your Company has consolidated the significant
advances made last year and has achieved another year of profit growth. Our
regeneration sector, with its increasing portfolio of projects, made the largest
contribution to profits in the year. Our transport activities achieved only a
modest profit having encountered various trading difficulties. In many ways this
has been a challenging year and I would like to congratulate and thank the
executive directors and all the staff for their hard work and dedication.


Profit before taxation is up 23% on last year to £4.212m (2006: £3.420m) and
earnings per share have also advanced 23% to 12.09p (2006: 9.81p). Total
operating profit of £3.226m (2006: £3.596m) excludes the profit of £2.1m on the
sale of fixed assets which includes the sale of the building occupied by the
Department for Works and Pensions (DWP). Your Company's strategy to develop a
balanced business portfolio remains justifiable in achieving sustainable profit
growth and we can expect contributions from our different business sectors to
vary from year to year. Gearing has reduced to 23.1% at the year end (2006:
44.5%).


Your Board proposes a final dividend of 2.55p, which added to the interim
dividend of 1.5p paid in January 2007, gives a total dividend for the year of
4.05p per share. This represents an increase of 6.6% when compared with last
year's total dividend of 3.8p per share. The final dividend will be payable on
24 August 2007 to shareholders on the register on 10 August 2007. The shares are
expected to go ex-dividend on 8 August 2007. The Board is also proposing a one
for one share capitalisation issue but before this can occur our authorised
capital will have to be increased. An appropriate resolution will be put to
shareholders at the Annual General Meeting.


Results from our regeneration sector (excluding the profit on sale of the DWP
building) have almost doubled from last year. Your Company is purposely growing
the regeneration sector with projects undertaken for both shorter term profit
and longer term investment objectives. In the future, you can expect to see a
greater mix of projects and increasing frequency of disposal of developments.
This may, as it has done in the past, give a certain 'lumpiness' to our results
year-on-year.


We are close to concluding a mixed-use development on the site of the former
boatyard. As well as 101 apartments, including affordable allocation, the scheme
includes 35,000 sq ft of commercial space, the majority reserved by the BBC for
their new South West regional studios. On an adjacent site, another 40,000 sq ft
pre-let office scheme is planned. The scheme on Exeter canal-side is progressing
well, as are schemes in St Austell and other regional centres. There are a
number of other schemes where the Company is currently bidding or is
short-listed and to maintain the flow of projects we have recruited additional
regeneration specialists.


ReSound (Health) Limited, in which your company holds a 37.2% interest, has now
started construction on a health centre in Cattedown, Plymouth, its third
scheme. The Group's share of results from this joint venture are separately
shown in the Profit and Loss Account for the first time this year.


After the year end, your Company acquired two car parks with 400 parking spaces,
in the environs of Sutton Harbour for a total cash consideration of £2,423,530.
The cash consideration was funded by the placing of 794,600 new ordinary shares
of 25p each at £3.05 per share. The placing price represented a modest discount
of 4.7 per cent on the share price immediately before the issue. The Group is
confident of a satisfactory return from the car parks investment.


As previously reported, we expected a decline in profits from our transport
sector after the effects of security alerts in August 2006 and the prevailing
high fuel price. Air Southwest had to contend with other challenges outside its
control in the second half year including the temporary closure of the runway at
Bristol Airport and the doubling in Air Passenger Duty to £10 per domestic
flight. The new routes we started last Spring have been disappointing. We
withdrew the Bristol-Norwich service in October 2006 and Cardiff-Manchester
services will cease in June 2007. These changes provide Air Southwest with
capacity to operate a newly started Newquay-Cork service, to offer charter
services and to focus on core routes. We are mindful of the new competition on
the Newquay-London route. It is too early to determine the effect of this on our
established four times a day service, however we have been very pleased with the
loyalty shown by our customers. It has been a difficult year for our young
airline, particularly when contrasted with its early successes, but it is
positive that we have remained profitable and have sufficient flexibility to
adapt our business to changing markets.


Cornwall County Council, the airport operators, and the Ministry of Defence are
now working to a clear timetable to put in place the infrastructure necessary to
convert Newquay Cornwall Airport into a full civilian airport. We expect this
process to be completed by Autumn 2008.


Plymouth City Airport continues to offer facilities to commercial airline
operators, the military and private aviation. The re-introduction of the twice
daily Manchester service has been well received and Air Southwest is considering
new services from Plymouth for 2008.


Following the creation of West Pier Marina last year, we are already seeing a
very satisfactory increase in berthing revenues. We have just completed further
improvements to our marina facilities and annual berths are again fully
occupied. In March 2007, we closed the marine engine servicing and watercraft
sales businesses that we had operated for the past decade and we also sold our
remaining commercial fishing vessel. These businesses were no longer justifiable
on commercial grounds. Costs in connection with closing these businesses have
been charged to the profit and loss account.


Plymouth Fisheries had a bumper final quarter with fish landings at a record.
This business has proved to be a stable revenue earner over the 12 years since
the new complex opened. With business growing year on year, use of the lock at
the entrance to Sutton Harbour has far exceeded anticipated demand. As a result,
the lock gates have worn faster than expected and they will be replaced by the
Environment Agency this Autumn. We have been advised that the lock will need to
remain closed intermittently during the refit with the inevitable inconvenience
that it will cause harbour users. The refit is purposely scheduled to take place
between the summer yachting and spring fishing seasons. The new gates are
designed to last for thirty years.


We have previously reported that Malcolm Naylor will retire from the Board and
from Air Southwest on 31 May 2007, when his service contract expires. We thank
Malcolm for his significant contribution in setting up Air Southwest, which has
operated a range of domestic scheduled services since October 2003. Starting an
airline was a major diversification for the Group and Malcolm's long experience
in the aviation industry has proved invaluable. I am pleased to report that
Malcolm's successor, Jim Cameron, joined us in April 2007. Jim, until recently,
was Chief Executive of Loganair, a larger regional airline operating out of
Glasgow. He has also previously held senior positions with British Airways and
Brymon Airways.


Tim Bacon, who has headed up our property regeneration team for several years,
has indicated to the Board that he wishes to work independently in his own
consultancy and will therefore be relinquishing his executive duties, probably
before the end of the calendar year. I am delighted to report that he will
remain on the board as a non-executive director.


It has been my privilege to be your Chairman for the last nine years but, as I
approach my 65th birthday, I feel it is right for me to step down both from the
Chair and as a director. During my time with your company we have seen
considerable change and progress and had a lot of fun along the way. I am very
confident that we have in place a good team and business mix to provide growth
for shareholders in the future. Michael Knight, who has been a director since
2005, will succeed me as Chairman immediately after the AGM.


Your Company has had another exciting but challenging year and has started the
current year well. With volatility in the transport sector likely to be ever
present, your company will work to achieve core growth from its regeneration
activities. Looking forward, there is plenty in the pipeline and the Board
remains optimistic of your Company's prospects.


Ellen Winser

Chairman




Profit and Loss Account for the year ended 31 March 2007



                                                                   2007              2006
                                                                  £'000            *£'000

Turnover                                                         30,688            27,218

Less Share of Joint Venture's Turnover                            (499)                 -

Group Turnover                                                   30,189            27,218

Cost of Sales                                                  (26,297)          (22,769)

Gross Profit                                                      3,892             4,449

Administrative Expenses                                           (954)             (853)

Group Operating Profit                                            2,938             3,596

Share of Operating Profit in Joint Venture                          288                 -

Total Operating Profit                                            3,226             3,596

Profit on Sale of Fixed Assets                                    2,141                 -

                                                                  5,367             3,596

Interest Receivable                                                 105               106

Interest Payable and Similar Charges                              (958)             (282)
Group
Joint Venture                                                     (302)                 -

Profit on Ordinary Activities
Before Taxation                                                   4,212             3,420

Current Taxation                                                  (834)             (552)

Deferred Taxation                                                 (432)             (481)

Taxation on Profit on Ordinary Activities                       (1,266)           (1,033)

Profit on Ordinary Activities
After Taxation and Attributable to Shareholders                   2,946             2,387

Earnings per Ordinary 25p share (Basic)                          12.09p             9.81p
Earnings per Ordinary 25p share (Diluted)                        11.83p             9.70p


All figures relate to continuing activities.

*As restated for prior year adjustment in respect of adoption of FRS 20 - Share
Based Payments.


Balance Sheets as at 31 March 2007

                                                        The Group             The Company

                                                    2007        2006        2007       2006
                                                   £'000       £'000       £'000      £'000

Fixed Assets
Intangible Assets                                    576         611           -          -
Tangible Assets                                   49,189      56,584           -          -
Investments
Investments in Joint Ventures
Share of gross assets                              8,956           -           -          -
Share of gross liabilities                       (9,023)          75       2,291      2,217
Other investments                                     76          75       2,291      2,217
                                                  49,774      57,270       2,291      2,217

Current Assets

Stock                                              3,898       3,145           -          -
Debtors                                            6,377       4,939       6,999      6,916
Cash at Bank and in Hand                               6           4          32         13
                                                  10,281       8,088       7,031      6,929

Creditors                                       (14,423)    (14,109)        (30)       (78)

(amounts falling due within one

year)

Net Current (Liabilities)/

Assets comprising:

Net Current (Liabilities)/Assets                 (5,213)     (6,952)       6,106      6,080
Debtors due after more than one year               1,071         931         895        771

                                                 (4,142)     (6,021)       7,001      6,851

Total Assets less Current Liabilities             45,632      51,249       9,292      9,068

Creditors (amounts falling due after more        (2,644)    (10,835)           -          -

than one year)

Provisions for Liabilities and Charges           (2,828)     (2,396)         (3)          -
Deferred Taxation

                                                  40,160      38,018       9,289      9,068

Capital and Reserves
Called Up Share Capital                            6,112       6,086       6,112      6,086
Share Premium Account                              2,843       2,797       2,843      2,797
Revaluation Reserve                               13,056      13,056           -          -
Investment Property
Revaluation Reserve                                9,435       9,435           -          -
Other Reserves                                       348         274          97         23
Profit and Loss Account                            8,366       6,370         237        162

Equity Shareholders' Funds                        40,160      38,018       9,289      9,068


*As restated for prior year adjustment.


Consolidated Cash Flow Statement for the year ended 31 March 2007

                                                                       2007           2006
CASH FLOW STATEMENT                                                   £'000          £'000

Net Cash Inflow from Operating Activities                             1,433          4,144
Returns on Investments and Servicing of Finance                       (995)          (522)
Taxation                                                              (875)          (465)
Capital Receipts/Expenditure                                          8,956       (13,976)
Equity Dividends Paid                                                 (950)          (852)
Financing                                                           (8,125)         11,560

(Decrease) in Cash in the Year                                        (556)          (111)

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

(Decrease) in Cash in the Year                                        (556)          (111)

Increase in Loans                                                   (1,670)       (11,558)

Loans Repaid                                                          9,866              -

Movement in net debt in the year                                      7,640       (11,669)

Net Debt at the start of the year                                  (16,927)        (5,258)

Net Debt at the end of the year                                     (9,287)       (16,927)

      Consolidated Statement of Total Recognised Gains and Losses for the year ended
                                      31 March 2007

                                                                       2007           2006
                                                                      £'000        * £'000

Reported Profit on Ordinary Activities Before Taxation                4,212          3,420

Historical Cost Profit on Ordinary Activities Before                  4,212          3,420
Taxation

Historical Cost Profit for the year retained after Taxation           1,996          1,535
and Dividends

*as restated for prior year adjustment





Segmental analysis

                                        2007                                2006
                        Turnover     Cost of   Operating    Turnover     Cost of  Operating
                                       Sales      Profit                   Sales     Profit
                           £'000       £'000       £'000       £'000       £'000      £'000

Marine
Activities                 4,934       3,987         947       4,571       3,675        896
Regeneration               3,283         525       2,758       3,097       1,667      1,430
Transport Share of
Joint Venture
                             499         211         288           -           -          -
                          30,688      26,508       4,180      27,218      22,769      4,440

Administrative                                     (954)                              (853)
Expenses

Total Operating                                    3,226                              3,596
Profit

Profit on Sale of                                  2,141                                  -
Fixed Assets
                                                   5,367                              3,596

Interest Receivable                                  105                                106

Interest Payable
Group                                              (958)                              (282)
Joint Venture                                      (302)                                  -

Profit on Ordinary
Activities Before
Taxation

                                                   4,212                              3,420


Segmental Analysis has been grouped under three main headings which cover the 
three principal activities of the group. Marine activities includes fishing 
related and marine leisure activities. Regeneration includes property and related 
activities. Transport includes airport operations and airline operations.

The financial information set out above does not constitute the company's
statutory accounts for the years ended 31 March 2007 or 2006 but is derived from
those accounts.  Statutory accounts for 2006 have been delivered to the
registrar of companies, and those for 2007 will be delivered following the
Group's Annual General Meeting.  The auditors have reported on those accounts;
their report was (i) unqualified, (ii) did not include a reference to any
matters to which the auditors drew attention by way of emphasis without
qualifying their report and (iii) did not contain a statement under section 237
(2) or (3) of the Companies Act 1985.




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