VHE Holdings PLC
12 June 2001


PART 4 

                               VHE HOLDINGS PLC                               
               NOTES TO THE PRELIMINARY ANNOUNCEMENT OF RESULTS               
                       For the Year Ended 31 March 2001                       
 

1. 
The unaudited preliminary consolidated financial statements are prepared under
the historical cost convention.  The unaudited preliminary consolidated
financial statements comply with relevant accounting standards (UK GAAP) and
have been prepared using accounting policies set out on pages 21 to 23 of the
Group's 2000 Annual Report and Accounts.  The above financial information does
not constitute statutory accounts as defined by section 240 of the Companies
Act 1985. The comparative information is an extract from the statutory
accounts for the financial year ended 31 March 2000.  Those accounts, upon
which the auditors issued an unqualified opinion which did not contain a
statement under either section 237(2) or (3) of the Companies Act 1985, have
been delivered to the Registrar of Companies.

West Cumberland Insulation Limited ceased trading during the year.  In
accordance with FRS 3, turnover and operating losses of this business have not
been separately disclosed on the grounds of immateriality.

2.  
                              Exceptional items                               
                                                                              
                             Cost of         Operating       2001         2000
                               sales          expenses      Total        Total
                               £'000             £'000      £'000        £'000
      
Costs associated with
Leabrook Road                    161                 -        161      (6,294)
       
Reorganisation and 
redundancy costs                   -              (57)        (57)       (434)
                                                               
                                 161              (57)        104      (6,728)


3.       
The tax credit for the year reflects the utilisation of prior year tax losses
in VHE Construction not previously recognised, together with the release of
tax provisions in respect of prior years which are no longer required.  There
are tax losses carried forward in VHE Construction for which relief will only
be available against future trading profits in that company.

4.       
The calculations of earnings per share is based on a profit of £1.042m (2000:
loss of £7.352m) and 32,102,727 shares (2000: 32,102,727 shares) in issue
during the period.  The fully diluted earnings per share calculation takes
into account any potentially dilutive future share issues, which, at the
balance sheet date, could be anticipated.  There is no difference between the
basic and fully diluted earnings per share.