Interim Results

UNITE GROUP PLC
20 September 1999
 
                       The Unite Group PLC
                                
                     Maiden Interim Results
                                
             For the six months ended 30th June 1999
                                
The Unite Group PLC, a highly focused company specialising
in multi-occupancy accommodation primarily for the student
sector,  is pleased to announce its maiden interim results
for the six months ended 30th June 1999.
 
Highlights
 
*    Admission to AIM in June
*    Successful placing of ordinary shares and convertible
     unsecured loan stock raising £8.27m net
*    Net asset value per share  increased by 203% to 75.7p
     (1998: 25.0p)
*    Continued growth across all activities
*    Appointment of new Non-executive Chairman in July
 
 
Commenting  on  the  results  Geoffrey Maddrell, Chairman,
said:
 
'It  is with particular pleasure that I present The  Unite
Group PLC's interim results for the six months to 30  June
1999,  the  first  results since  the  Group's  successful
admission to the Alternative Investment Market and placing
of  ordinary  shares  and convertible  loan  stock,  which
realised £8.27m net in June.
 
'Progress so far this year has been very much in line with
the Board's strategy.  Against the backdrop of the Group's
clear   focus,  continuing  strong  demand   for   student
accommodation   and   excellent  progress   with   current
development  projects, we expect to  achieve  the  planned
performance for the full year.'
 
 
For further information, please contact:
 
The Unite Group PLC       
Nicholas Porter, Managing Director 
David Ransome, Finance Director
On 20th September: 0171 253 2252
Thereafter: 0117 907 8100
 
Ludgate Communications                      
Tim Davis/Denise Peplow
0171 253 2252
 
Teather & Greenwood                          
Richard Thompson/Martin Lampshire
0171 426 9000
 
 
                       The Unite Group PLC
                                
                      Chairman's Statement
                                
Financial highlights
 
It  is  with particular pleasure that I present The Unite  Group
PLC's interim results for the six months to 30 June 1999.  These
are the first results since the Group's successful admission  to
the Alternative Investment Market and placing of ordinary shares
and  convertible unsecured loan stock, together realising £8.27m
net of expenses in June.
 
The  results  reflect our focused strategy and our determination
to enhance shareholder value through the increase of net assets.
Net  assets  were £18.25m (1998: £5.14m), an increase  of  255%.
This  gave  rise to an increase of 203% in net asset  value  per
share  to  75.7p  (1998: 25.0p), the lower  percentage  increase
reflecting  the further allotment of shares.  Turnover  for  the
period  was £4.54m (1998: £2.03m), resulting from the  increased
investment  and  development  activity.   Earnings   per   share
increased to 2.2p (1998: 1.4p).
 
As  was  expressed at the time of flotation, the Board does  not
propose  to  recommend  the payment of an interim  dividend  but
expects to pay a final dividend in respect of the 1999 full year
results.
 
Operational Review
 
Unite  has  experienced continued growth across its  activities:
the  vertically  integrated nature of our business  enables  the
Group to control the entire development function from concept to
completion.   This  ensures  the  maintenance  of  quality   and
performance  during  the  development phase  and  allows  us  to
maintain and enhance the value of our long-term assets.
 
Specific  examples of the successful application of the  placing
proceeds are the Group's three schemes for the University of the
West  of  England at Glenside Phase I, St Matthias  and  Transom
House,  providing  273 units in total.  These  schemes  will all
have  been  completed   within   three  months  by  the  end  of
September and  were   largely   funded internally.  They will be
refinanced to release the capital  for further  projects  by the
end of the year.
 
The Group's scheme in Frogmore Street, Bristol, will provide 386
units  for the University of Bristol and at Sydney Wharf we  are
creating  164 units for the University of Bath, whilst  a  major
scheme  of  a  satellite campus for City of Bristol  College  at
Anchor Road, Bristol, is now well underway.
 
Peabody Unite, our joint venture company with the Peabody Trust,
London's  largest  charitable housing trust, has  had  a  highly
successful  first  half  of  the  year,  having   acquired  four
properties:  one  site for a substantial new build  scheme,  two
buildings for conversion and one standing investment which  will
be managed to enhance value.
 
The  Group  remains  committed  to increasing  the  geographical
spread  of  its activities in the UK and is confident that  this
will continue to be achieved.
 
Board, employees and shareholders
 
As  announced at the time of the Group's flotation, David Naish,
who  has been Non-executive Chairman since 1997 and has  made  a
very valuable contribution to the Group's achievements, stepped-
down  in July.  I am delighted that David has agreed to stay  on
as  a Non-executive Director.  At the same time, I was appointed
as his successor.  I am looking forward very much to leading the
Board  and  to  supporting management and  the  company  in  the
achievement  of  a  very  focused and  exciting  strategy  which
presents many opportunities.
 
On  behalf  of  the  Board, I would also like to  thank  Unite's
employees for the very evident  enthusiasm and commitment  which
I  have  already  discovered is a cornerstone  for  the  Group's
success.
 
Finally,  I  would  like  to welcome our  new  shareholders  and
stockholders.   We  believe that Unite  will  provide  a  highly
rewarding long-term investment.
 
Outlook
 
Progress  so far this year has been very much in line  with  the
Board's  strategy.   Against  the  backdrop  of  continuing  the
Group's clear focus, strong demand for student accommodation and
excellent progress with current development projects, we  expect
to achieve the planned performance for the full year.
 
 
Geoffrey Maddrell
 
 
Consolidated Balance Sheet
At 30 June 1999
                                  Unaudited    Unaudited
                                               Pro forma    Pro forma
                                30 Jun 1999  30 Jun 1998  31 Dec 1998
                                     £ '000       £ '000       £ '000
______________________________________________________________________
 
Fixed assets
Intangible assets                        59           69           63
Tangible Assets
  Investment and development
   properties                        46,073       22,459       36,452
  Other fixed assets                  1,160          290          420
______________________________________________________________________
 
                                     47,233       22,749       36,872
 
Investment in joint ventures:
  Share of gross assets               4,387           50           76
  Share of gross liabilities         (2,237)           -          (50)
______________________________________________________________________
 
                                      2,150           50           26
______________________________________________________________________
 
                                     49,442       22,868       36,961
 
Current assets
Stocks                                2,404        2,989        3,372
Debtors                               3,802        2,047        2,966
Cash at bank and in hand              9,047        1,253        3,064
______________________________________________________________________
 
                                     15,253        6,289        9,402
 
Creditors: amounts falling due
 within one year                    (21,300)     (10,927)     (17,126)
______________________________________________________________________
 
Net current liabilities              (6,047)      (4,638)      (7,724)
______________________________________________________________________
 
Total assets less current
 liabilities                         43,395       18,230       29,237
 
Creditors: amounts falling due
 after more than one year           (24,898)     (12,587)     (18,721)
 
Provisions for liabilities and
 charges                               (246)        (505)        (249)
______________________________________________________________________
 
Net assets                           18,251        5,138       10,267
======================================================================
 
Capital and Reserves
Called up share capital               6,027        5,136        5,136
Share premium account                 1,920            2            2
Revaluation reserve                   9,688            -        4,988
Profit and loss account                 616            -          141
______________________________________________________________________
 
Shareholders' funds                  18,251        5,138       10,267
======================================================================
 
Net assets per ordinary share
 (pence per share)                     75.7         25.0         50.0
======================================================================
 
 
Consolidated Profit and Loss Account
Period Ended 30 June 1999
 
                                  Unaudited    Unaudited
                                               Pro forma    Pro forma
                                6 months to  6 months to      Year to
                                30 Jun 1999  30 Jun 1998  31 Dec 1998
                                     £ '000       £ '000       £ '000
______________________________________________________________________
 
Turnover                              4,535        2,029        5,505
Cost of Sales                        (3,161)        (665)      (2,965)
______________________________________________________________________
 
Gross Profit                          1,374        1,364        2,540
Administrative Expenses                (253)        (385)        (851)
Profit on disposal of investment
 properties                               -          331          354
______________________________________________________________________
 
Group operating profit                1,121        1,310        2,043
 
Share of results of joint venture        10            -          (24)
______________________________________________________________________
 
Profit on ordinary activities
 before finance and taxation          1,131        1,310        2,019
 
Net interest payable                   (675)        (853)      (1,439)
______________________________________________________________________
 
Profit on ordinary activities
 before taxation                        456          457          580
 
Taxation                                 19            -            9
______________________________________________________________________
 
Profit on ordinary activities
 after taxation                         475          457          589
 
Dividends paid                            -         (100)        (100)
______________________________________________________________________
 
Retained profit for the financial
 period                                 475          357          489
======================================================================
 
Basic earnings per share
 (pence per share)                      2.2          1.4          2.2
======================================================================
 
Fully diluted earnings per share
 (pence per share)                      2.2          1.4          2.2
======================================================================
 
 
Statement of Total Recognised Gains and Losses
 
                                  Unaudited    Unaudited
                                               Pro forma    Pro forma
                                6 months to  6 months to      Year to
                                30 Jun 1999  30 Jun 1998  31 Dec 1998
                                     £ '000       £ '000       £ '000
______________________________________________________________________
 
Profit for the financial year           475          457          589
Unrealised surplus on revaluation
 of properties                        2,525        1,742        6,551
Provision for deferred tax on
 revaluations                             -            -          188
Proportion of joint venture
 revaluation                          2,175            -            -
______________________________________________________________________
 
Total recognised gains and losses
 relating to the period               5,175        2,199        7,328
======================================================================
 
 
Consolidated Cash Flow Statement
Period Ended 30 June 1999
                                  Unaudited    Unaudited
                                               Pro forma    Pro forma
                                6 months to  6 months to      Year to
                                30 Jun 1999  30 Jun 1998  31 Dec 1998
                                     £ '000       £ '000       £ '000
______________________________________________________________________
 
Net cash inflow/(outflow) from
 operating activities                 2,461         (148)       1,092
 
Returns on investments and
 servicing of finance                (1,355)      (1,008)      (1,981)
Taxation                               (115)         (50)        (183)
Capital expenditure and financial
 investment                          (7,227)       4,550       (4,448)
Capital reorganisation                    -       (1,431)      (1,431)
Equity dividends paid                     -         (100)        (100)
______________________________________________________________________
 
Cash outflow/(inflow) before
 management of liquid resources
  and financing                      (6,236)       1,813       (7,051)
 
Management of liquid resources            -            -       (2,663)
Financing
  Issue of shares (net of issue
   costs)                             2,809            -            -
  Issue of loan stock (net of
   issue costs)                       5,411            -            -
  Increase/(decrease) in debt and
   lease financing                    3,815         (832)       9,732
______________________________________________________________________
 
                                     12,035         (832)       7,069
======================================================================
 
Increase in cash in the period        5,799          981           18
======================================================================
 
 
Reconciliation of net cash flow to movement in net debt
 
                                  Unaudited    Unaudited
                                               Pro forma    Pro forma
                                30 Jun 1999  30 Jun 1998  31 Dec 1998
                                     £ '000       £ '000       £ '000
______________________________________________________________________
 
Increase in cash in the period        5,799          981           18
Cash flow resulting from movement
 in liquid resources                      -            -        2,663
Cash inflows from increase in debt
 financing                           (9,649)         832       (9,732)
New hire purchase contracts             (39)         (41)        (120)
______________________________________________________________________
 
Movement in net debt in the period   (3,889)       1,772       (7,171)
 
Net debt at beginning of the
 period                             (26,649)     (19,468)     (19,468)
______________________________________________________________________
 
Net debt at end of the period       (30,538)     (17,696)     (26,639)
======================================================================
 
 
Reconciliation of movement in shareholders' funds
 
                                  Unaudited    Unaudited
                                               Pro forma    Pro forma
                                6 months to  6 months to      Year to
                                30 Jun 1999  30 Jun 1998  31 Dec 1998
                                     £ '000       £ '000       £ '000
______________________________________________________________________
 
Profit attributable to ordinary
 shareholders                           475          457          589
Dividends                                 -         (100)        (100)
______________________________________________________________________
 
                                        475          357          489
 
Net surplus on revaluation            4,700        1,742        6,551
Capital distribution to
 shareholders - group
  reorganisation                          -       (2,975)      (2,975)
Provision for deferred tax on
 revaluations                             -            -          188
 
New share capital subscribed
 (net of issue costs)                 2,809            -            -
______________________________________________________________________
 
                                      7,984         (876)       4,253
 
Net addition to shareholders' funds
Opening equity shareholders' funds   10,267        6,014        6,014
______________________________________________________________________
 
Closing equity shareholders' funds   18,251        5,138       10,267
======================================================================
 
 
Notes to the accounts
 
1. Basis of preparation
 
   The  Interim  Results  do  not constitute  statutory  accounts
   within the meaning of s240 of the Companies Act 1985.
  
   Prior  to the formation of the present structure of the  Group
   on 24 June 1998 its activities were not carried on by a single
   statutory  group  of companies. Accordingly,  for  comparative
   purposes,  combined financial information is shown in  respect
   of  profits and cash flows for the six months ended   30  June
   1998 and for the year ended 31 December 1998.
                                                                
   The  proforma profit and loss account and proforma  cash  flow
   statement  for  the  six months ended 30  June  1998  and  the
   balance  sheet at that date have been extracted from unaudited
   management  information. The proforma profit and loss  account
   and pro forma cash flow statement in respect of the year ended
   31  December  1998  have been extracted from the  accountants'
   report  on the Group set out in the company's Placing document
   dated 24 May 1999. The Group balance sheet at 31 December 1998
   has  been  extracted from the audited accounts  for  the  year
   ended on that date.
                                                                
   The financial information in this interim report in respect of
   the  year  ended  31  December 1998 does  not  constitute  the
   company's statutory accounts for the year ended on that  date.
   The  statutory  accounts of the company for  the  year  to  31
   December  1998  have  been  delivered  to  the  Registrar   of
   Companies.  The auditors have reported on those  accounts  and
   their report was unqualified.
                                                                
   The interim report will be sent to all shareholders in late
   September 1999. Copies will be available to the public from
   the company's registered office at Lawrence House, Lower
   Bristol Road, Bath.
 
2. Investment and development properties
                        Completed  Developments   Properties    Total
                     developments   in progress         held  
                                                  for future
                                                 development
                           £ '000        £ '000       £ '000    £'000
   ___________________________________________________________________
 
   Cost or valuation
   At 1 January 1999       23,870        10,114        2,468   36,452
   Additions                  135         6,955            6    7,096
   Revaluations               520         1,975           30    2,525
   ___________________________________________________________________
 
   At 30 June 1999         24,525        19,044        2,504   46,073
   ===================================================================
 
   At 31 December 1998     23,870        10,114        2,468   36,452
   ===================================================================
 
   At 30 June 1998         17,037         5,422            -   22,459
   ===================================================================
 
3.   Turnover Comprises
                                 Unaudited     Unaudited
                                               Pro forma    Pro forma
                               6 months to   6 months to      Year to
                               30 Jun 1999   30 Jun 1998  31 Dec 1998
                                    £ '000        £ '000       £ '000
   ___________________________________________________________________
 
   Rental Income                     1,372         1,304        2,382
   Sales of trading and
    development properties           3,163           725        3,174
   ___________________________________________________________________
 
   Total turnover                    4,535         2,029        5,556
   ===================================================================
 
4. Taxation
   There is no corporation tax charge in the period due the
   availability of substantial capital allowances and tax losses.
 
5. Earnings per Share
   The calculation of the earnings per ordinary share is based on
   the  profit available to ordinary shareholders of £475k  (1998
   interim - £457k; 1998 final - £589k) and on a weighted average
   number of ordinary shares in issue during the six months ended
   30  June  1999 of 21,134,809 (1998 interim - 32,182,985;  1998
   final  -  26,315,661).  On a fully diluted basis the  weighted
   average number of ordinary shares was 21,334,809 (1998 interim
   - 32,182,985;  1998 final - 26,315,661).
 
6. Investment in Joint Ventures
                                  Unaudited    Unaudited
                                               Pro forma    Pro forma
                                30 Jun 1999  30 Jun 1998  31 Dec 1998
                                     £ '000       £ '000       £ '000
   ___________________________________________________________________
 
   Investment in Peabody Unite plc    2,150           50           26
   ===================================================================
 
7. Creditors:  Amounts falling due within one year
 
                                  Unaudited    Unaudited
                                               Pro forma    Pro forma
                                30 Jun 1999  30 Jun 1998  31 Dec 1998
                                     £ '000       £ '000       £ '000
   ___________________________________________________________________
 
   Build loans                       13,771        6,330       10,396
   Other creditors                    7,529        4,597        6,730
   ___________________________________________________________________
 
                                     21,300       10,927       17,126
   ===================================================================
 
8. Creditors: Amounts falling due after more than one year
 
                                  Unaudited    Unaudited
                                               Pro forma    Pro forma
                                30 Jun 1999  30 Jun 1998  31 Dec 1998
                                     £ '000       £ '000       £ '000
   ___________________________________________________________________
 
   Long term borrowings              24,898       12,587       18,721
   ===================================================================