Interim Results

Sutton Harbour Holdings PLC
24 November 2004



For Immediate Release 24 November 2004

                INTERIM RESULTS FROM SUTTON HARBOUR HOLDINGS PLC


                SUTTON HARBOUR DELIVERS STRONG HALF YEAR RESULTS
  Sutton Harbour Holdings plc, the AIM listed transport and regeneration group
     reports growing profits for the six months ended 30th September 2004.

'The company has exciting times ahead. The regeneration and aviation activities
are key areas of interest which the new management team are developing.'

Ellen Winser, Chairman, Sutton Harbour Holdings plc.

HIGHLIGHTS

• Interim Operating Profit up 24% to £828,000, ( 2003 £671,000 )
• Earnings per share up 22.8% to 2.26p ( 2003, 1.84p after capitalisation
    adjustment)
• Interim Dividend up 22% to 1.1p per share (2003, 0.9p after capitalisation
    adjustment )
• Air Southwest running at 21% up on Gatwick route with growing sales and new
    routes planned for 2005.
• Further harbour regeneration about to enter construction phase.
• Solid performance by Plymouth Fisheries and Sutton Marina.

Full text of Chairman's statement and accounts tables attached
or visit our website: www.sutton-harbour.co.uk

For further information please contact
Nigel Godefroy, Managing Director 01752 204186
Natasha Gadsdon, Finance Director 01752 204186
Paul Vann/Ken Rees, Binns-Winningtons 0117 317 9477 or 07768 807631



CHAIRMAN'S STATEMENT

During the first half year we have worked on bringing a number of our
regeneration and property programmes to the delivery stage and developing the
business of our airline, Air Southwest. There is also good news to report on the
financial close of the LIFT project and the performance of our traditional
harbourside activities.

Our first half year shows turnover nearly three times that recorded a year ago
thanks to the inclusion of Air Southwest. Operating profit is significantly
higher at £828,000 compared with £671,000 in the corresponding period last year,
an increase of 23.4%. Earnings per share have also grown from 1.84p (adjusted
for the capitalisation issue in August 2004) to 2.26p, up by 22.8%. Good
performance by Air Southwest underlies these results as does good profitability
from traditional activities. On the other hand, overheads have increased as the
Group has added to central resources needed to manage our growth strategy.

Last year the interim dividend was held at 0.9p per share (adjusted for the
capitalisation issue) as the Group had incurred various costs in starting up the
airline and, at that stage, we did not know how quickly the airline might become
profitable. Partly in recognition of the good results for the first six months
of the year and partly to reduce the disparity between our interim and final
dividends, your Board has decided to declare an interim dividend of 1.1p per
share (0.9p last year adjusted for the capitalisation issue), an increase of
22%. The dividend will be paid on 7 January 2005 to shareholders on the register
at 10 December 2004. Our shares will be quoted ex-dividend on 8 December 2004.

Air Southwest, launched a little over a year ago, is now showing good returns
after the initial start up period. In its first year of operation, the airline
carried 170,000 passengers and had a network load factor of 74%. The
Plymouth-Newquay-Gatwick service is showing passenger growth of 21% compared
with former British Airways' statistics on the same route. The
Plymouth-Bristol-Manchester service, which we started in March 2004, has quickly
become an established route. Earlier this month we took delivery of an
additional aircraft which will allow greater operational flexibility. We now
also have the opportunity to operate ad-hoc charter services. With the Gatwick
and Manchester services doing well, we have decided to introduce additional
routes starting in Spring 2005.

Air Southwest has made a very pleasing contribution to the Group's results in
this period. As we move into the winter season we do not expect the airline to
be as profitable although we do expect a positive outcome in the second half
year.

Following British Airways' decision to withdraw from Plymouth City Airport, we
have worked hard to maintain our airport revenues. Air Wales and Air Southwest
continue to operate eleven daily scheduled services and we are supporting
commercial development of the airport with a new website www.plymouthairport.com.

With our private and public sector partners, I am delighted to report that
financial close of the Plymouth Local Improvement Finance Trust scheme has been
achieved. Plymouth LIFT, which will build and lease out community health care
facilities in Plymouth, is incorporated as ReSound (Health) Limited and we have
a 37.2% holding. The results and assets of ReSound will be consolidated in the
year-end Group results. Construction of the Tranche 1 facilities is already
underway although returns from our investment of £730,000 spread over two years
will not be apparent in our Group results until year ended March 2006.

The timing of property related profits continues to be irregular and this
explains the lower profits from this activity in the first half year, compared
to the same period last year. Many of the projects require a lead in period
whilst the detail is worked upon and the complexities of large schemes are
resolved. However there is plenty in the pipeline and we remain optimistic for
our prospects from these activities.

Within the Sutton Partnership, the development of the Moon Street site is at
last coming to fruition. In the new year, Barratt Homes will commence
construction of a residential development providing 109 apartments and we have
serious interest from the public sector for a significant office development on
the western side which has planning permission. Planning permission has also
been received for a residential scheme on the Penrose site to be developed by
Signpost Housing Association.

Our plans for the next phase of Harbour East regeneration are now well-advanced.

Harbourside activities continue to produce solid results, with a bumper summer
season at the Marina and the quantity of fish landed at the Fishmarket this
autumn has reached an all time peak.

The Group has changed much in recent years and the metamorphosis continues. We
now employ 182 staff in total and it is a credit to them all that we won the
2004 Devon and Cornwall Business Challenge 'Success through Change' award. Your
Company has exciting times ahead. The regeneration and aviation activities are
key areas of interest which the new management team is enthusiastically
developing for future growth.

This interim report was approved by the Board on 24th November 2004.

Ellen Winser
Chairman




Consolidated Summarised Profit and Loss Account


                         Note      6 months to     6 months to    Year Ended
                                  30 September    30 September      31 March
                                          2004            2003          2004
                                   (unaudited)     (unaudited)     (audited)
                                          £000            £000          £000

Turnover                  2              9,929           3,590        11,659

Operating Profit          2                828             671         1,701

Net Interest              7                (45)            (43)          (97)

Profit on Ordinary                         783             628         1,604
Activities Before
Taxation

Taxation on Profit on
Ordinary                  3               (118)            (92)         (384)
Activities

Deferred Taxation         3               (117)            (90)          (97)

Profit on Ordinary
Activities After                           548             446         1,123
Taxation

Dividends                 4               (267)           (218)         (668)

Retained Profit                            281             228           455

Earnings per Share *      5               2.26p           1.84p         4.63p
Diluted Earnings per      5               2.24p           1.82p         4.59p
Share*
Dividend per Share *      4                1.1p            0.9p         2.75p

* Adjusted for the one-for-one Capitalisation Issue



Consolidated Summarised Balance Sheet

                                         As at             As at         As at
                                  30 September      30 September      31 March
                                          2004              2003          2004
                                   (unaudited)       (unaudited)     (audited)
                                          £000              £000          £000

Fixed Assets                            32,910            28,627        31,961

Current Assets
Stock                                    3,060             2,606         2,904
Debtors (due within one year)            2,414             1,859         2,339
Cash at Bank and in Hand                     3                 2             4

                                         5,477             4,467         5,247

Creditors (due within one year)
Bank Overdraft                           2,411             2,049           974
Other                                    2,713             1,842         3,827
Deferred Income                          2,537             2,235         2,069

                                        (7,661)           (6,126)       (6,870)

Net Current Liabilities                 (2,184)           (1,659)       (1,623)

Total Assets less Net                   30,726            26,968        30,338
Current Liabilities

Deferred Income                            (57)              (77)          (67)
(due after more than one year)

Provisions for Liabilities              (1,664)           (1,540)       (1,547)
and Charges
Deferred Taxation

Net Assets                              29,005            25,351        28,724

Shareholders' Funds                     29,005            25,351        28,724





                                     Consolidated Summarised Cash Flow Statement

                             6 months to    6 months to             Year Ended
                            30 September   30 September               31 March
                                    2004           2003                   2004
                             (unaudited)    (unaudited)              (audited)
                                    £000           £000                   £000
Reconciliation of
Operating Profit to 
Net Cash Inflow from 
Operating Activities
Operating Profit                     828            671                  1,701
Depreciation Charges                 136             63                    189
Loss on Sale of
Tangible Fixed Fixed
Assets                                 3              1                      8
Amortisation of
Intangible Assets                     17              -                     14
Amortisation of Grants                (3)            (4)                    (8)
(Increase)/Decrease in
Stock                               (157)          (139)                   713
(Increase) in Debtors                (75)           (55)                  (535)
Increase/(Decrease) in
Creditors                           (428)         1,026                  2,770

Net Cash Inflow from                 321          1,563                  4,852
Operating Activities

CASH FLOW STATEMENT
Net Cash Inflow from                 321          1,563                  4,852
Operating Activities
Returns on Investment
and Servicing of
Finance                              (45)           (79)                  (175)
Taxation                            (160)          (102)                  (561)
Capital Expenditure               (1,104)          (326)                (1,765)
Dividends Paid                      (450)          (389)                  (607)
                                                                 
Increase/(Decrease) in
Cash in the period                (1,438)           667                  1,744

                                                                 
Reconciliation of Net
Cashflow to Movement in 
Net Debt
Increase/(Decrease) in
Cash in the period                (1,438)           667                  1,744
Net Debt Brought
Forward                             (970)        (2,714)                (2,714)
                                                                 
Net Debt Carried
Forward                           (2,408)        (2,047)                  (970)
                                                                 

Consolidated Statement of Total Recognised Gains and Losses

                                       6 months to    6 months to   Year Ended
                                      30 September   30 September     31 March
                                              2004           2003         2004
                                       (unaudited)    (unaudited)    (audited)
                                              £000           £000         £000

Unrealised surplus on
revaluation of properties                      -                -        3,146
Reported profit on Ordinary                  548              446        1,123
Activities after Taxation
Total Gains and Losses
since last Financial Statements              548              446        4,269



Reconciliation of Movements in Shareholders' Funds

                          Note         6 months to    6 months to   Year Ended
                                      30 September   30 September     31 March
                                              2004           2003         2004
                                       (unaudited)    (unaudited)    (audited)
                                              £000           £000         £000

Reported Profit in Group                548                   446        1,123
Companies for the
Period
Dividends                    4         (267)                 (218)        (668)

Retained Profit for the                 281                   228          455
Period
Revaluation Reserve                       -                     -        3,146
Adjustment
Opening Shareholders'                28,724                25,123       25,123
funds

Closing Shareholders'                29,005                25,351       28,724
funds





Notes to Interim Report

1.  Accounting Basis

    The Accounts are prepared under the historical cost convention modified to
    include the revaluation of certain freehold properties and investments. The
    Accounts are prepared in accordance with applicable accounting standards
    except where, in the opinion of the Directors, departure is necessary in
    order to show a true and fair view. The Accounting Policies are consistent
    with those applied in the Annual Report and Accounts for the year ended 31
    March 2004. The interim financial statements are not audited.

2. Segmental Analysis

                           6 months to            6 months to       Year Ended
                          30 September           30 September         31 March
                                  2004                   2003             2004
                           (unaudited)            (unaudited)        (audited)
                                  £000                   £000             £000
                                                                 
Turnover
Fisheries Related                1,235                    972            1,929
Marine Leisure                     768                    754            1,297
Property                           431                    718            3,365
Aviation Related                 7,495                  1,146            5,068

                                 9,929                  3,590           11,659
Operating Costs
Fisheries Related                1,005                    765            1,435
Marine Leisure                     489                    482              895
Property                            82                    113            1,601
Aviation Related                 7,032                  1,284            5,302
Administration                     493                    275              725

                                 9,101                  2,919            9,958

Operating Profit                   828                    671            1,701


3. Taxation

The Corporation Tax charge represents the provision for taxation on the taxable
profits for the period.

                              6 months to         6 months to       Year Ended
                             30 September        30 September         31 March
                                     2004                2003             2004
                              (unaudited)         (unaudited)        (audited)
                                     £000                £000             £000

Corporation Tax                       118                  92              384
Deferred Taxation Provided            117                  90               97

                                      235                 182              481



4. Dividends

The interim ordinary dividend of 1.1p (net) per share (2003: 0.9p adjusted for
capitalisation issue) totalling £267,223 (2003: £218,637) will be paid on 7th
January 2005 to Shareholders on the register on 10th December 2004.

5. Earnings per Share

Earnings per share have been calculated using the profit for the period of
£548,000 (2003: £446,000) and the 24,293,030 (2003: 24,293,030 adjusted for the
capitalisation issue) number of ordinary shares in issue excluding those options
granted under the SAYE scheme. Diluted Earnings per share uses an average number
of 24,500,000 (2003: 24,500,000 adjusted for the capitalisation issue), ordinary
shares in issue which takes account of the outstanding options under the SAYE
scheme in accordance with Financial Reporting Standard 14 Earnings per share.

6. Publication of Non-Statutory Accounts

The financial information set out in this report does not constitute statutory
accounts as defined in Section 240 of the Companies Act 1985. The figures for
the year ended 31 March 2004 have been extracted from the statutory financial
statements which have been filed with the Registrar of Companies. The auditors'
report on those financial statements was unqualified and did not contain a
statement under Section 237(2) of the Companies Act 1985.

7. Interest

Interest payable in the 6 months to 30 September 2004 is stated after
capitalisation of £Nil (2003: £40,000).



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