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Benchmark Group PLC (BMK)

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Monday 24 September, 2001

Benchmark Group PLC

Final Results

Benchmark Group PLC
24 September 2001




For immediate release                       24 September 2001





                             PRELIMINARY RESULTS

                       For the Year Ended 30 June 2001



                       Pre-tax profit increased by 39%

                      Special dividend of 60p per share



Benchmark Group PLC ('Benchmark'), the specialist Central London property
investment and development company, announces a 39% increase in pre-tax profit
for the year ended 30 June 2001.



With its strong financial position and in order to enhance total shareholder
returns, Benchmark has decided to pay a special dividend of 60p per share, to
be paid as an interim dividend in respect of the year to 30 June 2002, in
addition to the proposed final dividend of 2.6p per share.



Financial Highlights


                                 30 June 2001        30 June 2000      % change
Profit before tax                      £21.5m              £15.5m         38.7%
Earnings per share                      13.4p               11.2p         19.6%
Diluted NAV per share                  373.9p              338.4p         10.5%
Total dividend per share                4.55p               4.15p          9.6%
Net gearing                          57.4%(1)               64.3%



(1) Following the completion of the WELPUT transaction post year-end, and the
payment of the special dividend, the pro-forma gearing will reduce to 43%.



Corporate Highlights



  * Investment properties showed a net increase of 6.0% or £47.9 million
    based on independent valuation.



  * Net rental income increased by 54.7% to £31.4 million (2000: £20.3
    million).  As at the date of this announcement, the annualised net rental
    income of the portfolio is £38.7 million.



  * £169.7 million spent on acquisitions in Central London during the year
    including 6/10 Bruton Street, Melrose House and Jackson House, Savile Row
    and a 50% share in the joint venture with JER Partners for the acquisition
    of a £250 million portfolio from MEPC.



  * £76.8 million of sales achieved during the period providing a net profit
    above book value of £3.9 million, £23.2 million over historic cost.



  * Since the year end, Benchmark has sold for a total consideration of 
    £249.5 million, its entire partnership interests in Benchmark (Jersey) No.1
    LP to WEL Property Limited Partnership, a Jersey Limited Partnership in
    which The West End of London Property Unit Trust ('WELPUT'), a Jersey unit
    trust, has a 50.1% interest.  Benchmark has a 46% interest in WELPUT and a
    49.9% interest in WEL Property Limited Partnership.



Tan Sri Quek Leng Chan, Chairman of Benchmark, said: 'Having paid our
shareholders a special dividend, we remain well placed, with sufficient
resources available, to take advantage of new opportunities as they arise.



'We are in excellent shape to continue to deliver shareholder value in our
chosen area of specialisation against the backdrop of a Central London
property market which has short-term uncertainties but, in our view, long-term
strength and resilience.'



For further information, please contact:


Benchmark Group PLC                      Tavistock Communications Ltd
Nigel Kempner, Chief Executive           Jeremy Carey / Bella Pagdin
Tel: 020 7287 6881                       Tel: 020 7600 2288
www.benchmarkgroup.plc.uk



                          CHAIRMAN'S STATEMENT



INTRODUCTION

The year ended 30 June 2001, and the subsequent period up to the date of this
statement, has seen a rearrangement of how the Group's properties are owned.
This has enabled us to consolidate on past successes and provide the resources
to take full advantage of opportunities in the future.



The first major placing of new shares in the Group took place in October 1996
at a price of 160p per share when our portfolio was in the region of 110,000
sq ft and valued at £20 million, with a net asset value of 168.1p per share.
Today we manage in Central London a portfolio in the region of 2 million sq ft
valued at £1.1 billion, and we have a net asset value of 373.9p per share on a
diluted basis.



The Central London property market is currently showing resilience
particularly in the West End, where we specialise.  There is still a limited
supply of new offices and a reasonable demand from a wide tenant base.



Recent investor demand for property in Central London has been led by private
investors, with their appetite for new purchases being in recent times closely
linked to the cost of borrowing and availability of funding.  Institutions
have been less active over recent months due to sector allocation constraint.



Against this backdrop we have taken advantage of a relatively stable market to
complete lettings of vacant office space, achieve sales to transform
unrealised valuation surpluses into realised profits and make acquisitions
where we believe we can add value through our specialist expertise.  Currently
we have the lowest capital expenditure programme, the lowest level of gearing
and the largest investment portfolio under our management since Benchmark was
reborn as a property company in 1996.



Since the year end, we have taken the opportunity to combine with Schroder
Property Investment Management to set up a new property unit trust called The
West End of London Property Unit Trust ('WELPUT').  It will specialise in
acquiring larger lot sizes than Benchmark would normally consider on its own.
We will be the property advisers to WELPUT from which we should generate
significant fee income over the years ahead.  The initial portfolio is £300
million and the aim is to achieve a portfolio of at least £1 billion with
Benchmark retaining a stake of no less than 20%.  This transaction resulted in
some £20 million of unrealised revaluation surpluses being converted into
profits and after taking account of the Group's investment in WELPUT generated
net cash of £173 million.



Also, during the year we formed a 50/50 joint venture with JER Partners based
in Washington DC, which manage US institutional funds, to acquire a £250
million portfolio of London properties from MEPC.  This meant that we obtained
a 50% interest in some prime office buildings, particularly in Covent Garden,
where we were not represented.



DEVELOPMENT

All but 2 floors of our Bruton Street refurbishment comprising about 17,000 sq
ft of offices on 7 floors have now been leased at average rents of around £75
per sq ft.



Our refurbishment of 68,000 sq ft at Medius at 2 Sheraton Street in the heart
of Soho has now been completed and the top floor of 7,400 sq ft of offices has
been leased at £62.50 per sq ft with much interest being shown for the
remainder of the space.  The letting programme for the building was officially
launched on 13 September 2001.



We have now resolved our planning and other agreements with Westminster City
Council to enable us to develop the new Waitrose store and offices on Motcomb
Street in Belgravia.  Development works will start in mid October 2001 and
Waitrose hope to open for trading in time for Christmas in 2002.



NEXUS

In my statement last year I said that we were seeking a financial partner to
help Nexus, our serviced offices subsidiary, to expand its business.  During
the year we concluded a sale of 85% of our interest in the business achieving
a net profit of £6.5 million.



RESULTS

The diluted net asset value per share at 30 June 2001 was 373.9p compared with
338.4p a year earlier, an increase of 10.5%.



Our investment properties were valued on the basis of open market value at 30
June 2001 by DTZ Debenham Tie Leung Limited, Chartered Surveyors.  This
revaluation showed a net increase of £47.9 million over the 30 June 2000
figures representing an uplift of 6.0% in the value of the investment
properties held at the year end, excluding non-income producing developments.



Pre-tax profits for the year increased to £21.5 million from £15.5 million in
the previous year and post-tax profits for the year increased to £16.2 million
from £13.5 million previously.  Earnings per share were 13.4p compared with
11.2p in the previous year.  Net rental income for the period increased from £
20.3 million to £31.4 million.



Taking into account sales and acquisitions since the year end, net rental
income, on an annualised basis, at the date of this report is currently £38.7
million per annum.  This excludes the WELPUT portfolio.  Total net rental
income on an annualised basis from all properties managed by the Group is
currently £61.2 million per annum.



FINANCIAL

Our net borrowings at the year end were £267.8 million representing net
gearing of 57% compared with 64% as at 30 June 2000.



Shareholders' funds as at 30 June 2001 were £466.4 million, compared with £
415.3 million as at 30 June 2000 and our property assets owned were just under
£900 million compared with £695 million at 30 June 2000.



ACQUISITIONS AND DISPOSALS

We spent £169.7 million on acquisitions in Central London during the year.
Total disposals of £76.8 million were completed and these realised a net
profit of £3.9 million over book value or £23.2 million over historic cost.
Since the year end, another £249.5 million of properties were sold under the
WELPUT transaction mentioned earlier.



At the date of this statement, we now manage a total portfolio of about 2
million sq ft of offices, retail, residential and leisure related space within
or around the Circle Line in Central London.  Some 80% of the portfolio, by
value, is in the West End and 62% by value is freehold or on leases with
unexpired terms of at least 100 years.



DIVIDEND

An interim dividend of 1.95p per share was paid on 10 April 2001 and the Board
now recommends the payment of a final dividend of 2.6p per share to be paid on
16 November 2001 to shareholders on the register at 9 November 2001.  This
would make a total dividend payable for the year of 4.55p per share
representing an increase of 9.6% over last year.



As a consequence of the various transactions during the year and since the
year end, Benchmark is now in a strong financial position.  To maximise
returns to Benchmark's shareholders in the future we have always said that we
would keep our equity base as tight as possible.



We have also made it clear that when assessing dividends payable we would have
close regard to Benchmark's and the property sector's conditions and
prospects.  It is our view that, in the property sector, the majority of
investors today place emphasis on real delivered return, as well as looking at
the underlying performance of the assets.



SPECIAL DIVIDEND

Accordingly, we have decided to pay a special dividend, in addition to the
proposed final dividend, of 60p per share amounting to £73 million which
represents 64% of our distributable profits.  This will leave us with a
pro-forma gearing of 43%, substantial resources for new investment in addition
to the potential for opportunities through WELPUT and our existing or new
joint ventures.



Approval of shareholders will be sought at the forthcoming AGM to alter the
conversion rate of the Company's Convertible Unsecured Loan Stock from 32.51
to 38.66 ordinary shares per £100 nominal of stock to take into account the
proposed special dividend.



OUTLOOK

Whilst the Central London property market is unlikely to show the same rates
of growth it has demonstrated over the last 2 years, it is still a relatively
stable market with supply of new space restricted.



Having paid our shareholders a special dividend, we remain well placed, with
sufficient resources available, to take advantage of new opportunities as they
arise.



I would like to thank my co-directors and our entire team for their hard work
and valuable contributions over the 5 years and particularly during this last
year.



The property portfolio has good ongoing potential.  Keeping our equity base as
tight as possible will enable us to maximise total shareholder return.



We are in excellent shape to continue to deliver shareholder value in our
chosen area of specialisation against the backdrop of a Central London
property market which has short-term uncertainties but, in our view, long-term
strength and resilience.







Tan Sri Quek Leng Chan

Chairman

24 September 2001





Review of Operations





PROPERTY REVIEW



ACQUISITIONS



During the year, some £169.7 million was spent on the acquisition of
properties in Central London.  The principal transactions were:



-               In October 2000, we purchased a portfolio of 6 properties
from MEPC in a new 50/50 joint venture, Benchmark JER 1 Limited Partnership,
formed with JER Partners, a US fund manager.  Our share of the consideration
amounted to £125 million.  The portfolio totals 630,000 sq ft of offices and
58,000 sq ft of retail accommodation and comprises:



-               90 Long Acre, WC2

-               125 Shaftesbury Avenue and 25 Cambridge Circus, WC2

-               11/12 St James's Square, SW1

-               Landmark House, Hammersmith, W6

-               100 Fetter Lane and 12 Norwich Street, EC4

-               Piercy House, 7/9 Copthall Avenue, EC2



-               The acquisition of the freehold of 6/10 Bruton Street, W1,
the long leasehold interest in Melrose House, 4/6 Savile Row, W1 and the long
leasehold interest in Jackson House, 18/19 Savile Row, W1 for a total
consideration of £35.6 million;



-               In June 2001, we spent £7.6 million as our contribution to
the restructuring of our joint venture interest in 90 Long Acre, WC2.  The
interest held by Benchmark JER 1 Limited Partnership has now increased from
37.5% to 50%;



DISPOSALS



During the year, we continued to pursue our stated objective of disposing of
non-core properties.  Total disposals of £72.2 million were achieved, giving a
net profit of £3.8 million over book value or £23.2 million over historic
cost.  The principal sales were:



-               27/28 Soho Square, W1

-               Liscartan House, 127/131 Sloane Street, SW1

-               Granville House, 132/135 Sloane Street, SW1

-               Remaining 3 apartments at Stirling Square, Carlton Gardens,
                SW1

-               8/12 William Street, SW1



In addition to the above disposals, the Group received £4.6 million in respect
of the sale of Piercy House, a property owned by Benchmark JER 1 Limited
Partnership.



In December 2000 we sold 85% of our shares in Nexus Estates, our serviced
offices subsidiary, to a management buy-out sponsored by the private equity
arm of Henderson Global Investors.  We achieved a pre-tax profit of £6.5
million on the sale.



In addition, since the year end, we sold for a total consideration of £249.5
million, our entire partnership interests in Benchmark (Jersey) No. 1 LP to
WEL Property Limited Partnership ('WEL Partnership'), a Jersey Limited
Partnership in which The West End of London Property Unit Trust ('WELPUT'), a
Jersey unit trust, has a 50.1% interest.  The properties owned by Benchmark
(Jersey) No. 1 LP were:



-               Stirling Square, Carlton Gardens, SW1

-               24/28 Sackville Street, W1

-               Buchanan House, 3 St James's Square, SW1

-               4/5 Princes Gate, SW7

-               45 Fouberts Place, W1

-               St Giles House, 49/50 Poland Street, W1

-               Broadbent House, 64/65 Grosvenor Street, W1

-               100 Regent Street and 33 Glasshouse Street, W1



Benchmark has retained a 49.9% interest in WEL Partnership and has acquired a
46% interest in WELPUT.



DEVELOPMENTS



Medius, Sheraton Street, W1

The refurbishment was carried out to produce 67,000 sq ft of offices and
10,000 sq ft of retail space.  We started on site in May 2000 and practical
completion was achieved in July 2001.  The 10,000 sq ft of retail space in
Novello House has been pre-let to YHA Plc on a 15 year lease at an annual rent
of £240,000.  The top floor of 7,400 sq ft offices has now been let at a rent
of £62.50 psf.



Belgravia Estate, SW1

We have now resolved our planning and other agreements with Westminster City
Council and we will commence development works in mid October 2001.  The new
Waitrose store is expected to be open for trading by Christmas 2002.



Golden Square Estate, W1

A planning application to redevelop 41,500 sq ft of offices, 5,000 sq ft of
leisure use, 12,000 sq ft of retail space and 7,200 sq ft of residential
accommodation on the south side of Golden Square has been considered by
Westminster City Council and the overall principle of the scheme has been
approved subject to a final decision expected in December 2001 concerning the
treatment of the facade design on Brewer Street.



Kensington Estate, W8

These properties are owned by our 50.1% subsidiary, 121 KHS Ltd, with the
remaining 49.9% owned by Deutsche Bank AG.  The refurbishment of the shop
units was completed in September 2000 with The Gap opening for trading in
December 2000 and H&M Hennes in February 2001.  An additional floor for a
restaurant was added to the Roof Gardens night club and the tenant, Voyager
Clubs, took a new 15 year lease.



PORTFOLIO BALANCE



The following analysis takes into account all properties owned as at the date
of this report by the Company, its subsidiaries, its 50% share of the
portfolio held in Benchmark JER 1 Limited Partnership and excludes WELPUT
properties.



-         Lease profile

32% of our annual net rental income extends beyond 10 years.


Lease profile                                                  %
Less than 5 years                                              46.0
5-10 years                                                     21.8
11-15 years                                                    16.8
More than 15 years                                             15.4



  - Location

80% by value of our properties are in the West End.


Location                                           %
West End                                           80.3
City                                               19.7





  - Use

72% of the annual net rental income is derived from offices and 23% from
retail use.  The 'others' category includes residential, leisure and car
parking uses.


Use                                           %
Office                                        72.0
Retail                                        22.6
Others                                        5.4



  - Tenure

Despite our concentration in the West End, where many properties are
leasehold, we hold 62% by value of our properties as freeholds or on leases
with at least 100 years unexpired.


Tenure                                                         %
Freehold                                                       34.2
More than 100 years                                            28.0
75-100 years                                                   23.2
50-74 years                                                    11.0
25-49 years                                                    2.1
Less than 25 years                                             1.5



  - Tenant profile

Tenants from UK corporates contribute 29% of our gross annual income, whilst
19% comes from the financial services sector with major retailers contributing
another 18%.



FINANCIAL REVIEW



NET ASSETS PER SHARE

The investment portfolio was revalued at 30 June 2001 by DTZ Debenham Tie
Leung Limited, Chartered Surveyors.  The revaluation showed a net increase of
£24.0 million representing a 2.9% uplift on the investment properties held at
the year end.  This was in addition to the net increase in capital value of £
23.9 million that arose at the interim revaluation at 31 December 2000.
Correspondingly, the total uplift for the full year in the value of the
investment properties was 6.0% (2000 - 17.0%).  The net assets per share have
increased from 343.1 pence as at 30 June 2000 to 383.3 pence at the year end,
an increase of 11.7% (2000 - 26.8%) and on a diluted basis from 338.4 pence to
373.9 pence, an increase of 10.5% (2000 - 25.1%)



OPERATING RESULTS

Net rental income for the year increased to £31.4 million from £20.3 million
previously.  Profit before tax improved by 38.7% to £21.5 million (2000 - £
15.5 million) and on an after tax and minority interest basis, profits
increased by 20.0% to £16.2 million (2000 - £13.5 million).  The biggest
impact on the Group operating profit came from the 54.7% increase in net
rental income.



Earnings per share including profits on disposal of trading and investment
properties improved to 13.4 pence (13.3 pence on a diluted basis) from 11.2
pence on a basic and diluted basis.



OVERHEADS

Total overheads for the year amounted to £4.3 million (2000 - £3.9 million).
This represents 13.7% of net rental income, a significant improvement over
last year's figure of 19.3%.



TAXATION

The taxation charge of £5.7 million (2000 - £2.2 million) represents 26.7%
(2000 - 14.3%) of our pre-tax profits reflecting the benefit of capital
allowances claimed.  Last year's effective tax rate was reduced due to the
utilisation of brought forward losses and a prior year over-provision of £0.7
million.



POST BALANCE SHEET EVENTS

In July 2001, the Group completed the sale of its partnership interests in
Benchmark (Jersey) No. 1 LP to WEL Property Limited Partnership for £249.5
million.  This transaction generates a pre-tax gain of £22.7 million which
will be recognised in the statutory accounts for the year to 30 June 2002.  Of
this, £2.6 million will be recognised in the profit and loss account, whilst
the balance will be a transfer from the revaluation reserve.  The Group has
received net cash proceeds of £173.2 million after allowing for expenses.



FINANCE

The Group finances its operations by a mixture of equity, convertible loan
stock and bank borrowings.  The Group's objective is to maintain sufficient
resources to meet its financing requirements at the lowest achievable cost and
minimal risk, whilst maintaining sufficient flexibility to fund property
acquisitions and capital expenditure.  No speculative treasury transactions
are undertaken.



The main risk arising from the Group's financial liabilities is interest rate
risk.  The Group borrows at both fixed and floating rates of interest and
additionally uses interest rate derivatives to manage the Group's exposure to
interest rate movements.



At the year end 52.3% of borrowings were at fixed interest rates and the
weighted average rate of interest was 7.3%.  Total net borrowings amounted to
£267.8 million (2000 - £267.0 million) representing a gearing of 57.4% (2000 -
64.3%).  However if our share of the joint venture non-recourse debt is
included, the gearing would be 78.3%.



DEBT STRUCTURE

The WELPUT transaction, which completed just after the year end, has radically
transformed the balance sheet of the Group.  Pro-forma net borrowings were
reduced to £94.6 million representing a gearing of 20.4%.  However, of this £
94.6 million, £80.2 million comprises non-recourse loans held by our 50.1%
subsidiary, 121 KHS Limited.  This restructuring of our balance sheet has put
the Group on a solid footing to take advantage of any opportunities that may
arise.



Following the proposed payment of the special dividend the pro-forma gearing
will increase to 42.9%.



The analysis below shows the breakdown of the type of borrowings and also the
maturity profile on a pro-forma basis after the completion of the WELPUT
transaction and the proposed special dividend and includes our share of the
joint venture's debts.


Debt Maturity Profile                                         £m
2005                                                          138.7
2007                                                          80.2
2013                                                          49.3


Type of Borrowings                                                     %
Share of JV's debt, secured, non-recourse                              37.5
Unsecured, recourse                                                    32.6
Secured, non-recourse                                                  29.9





FIVE YEAR REVIEW

Since its recapitalisation in October 1996, Benchmark has undergone rapid
transformation to become a key Central London property specialist and as at
the year end it has now £1.1 billion of properties under management compared
to £20 million in June 1996.  Its track record in terms of acquisitions,
disposals and capital expenditure is shown in the table below:


£ million                                               
                                                                 

                                                        Post Year End -
                1996/97 1997/98 1998/99 1999/00 2000/01           WELPUT Total
                                         
Acquisitions      176.9   222.0    35.3   186.5   169.7                  790.4
Disposals             -    49.0    85.9   167.0*   76.8            249.5 628.2
Capital
Expenditure         2.4    31.4    63.8    44.4    38.7                  180.7
                    
* Excluding sale of 49.9% of Kensington Estate





As Benchmark is primarily a property investment company, one key performance
indicator is growth in the diluted net asset value (NAV) per share.


Diluted NAV per share
Year to 30 June                                               Pence
1996                                                          168.1
1997                                                          189.3
1998                                                          243.4
1999                                                          270.5
2000                                                          338.4
2001                                                          373.9



During this period, the annual compound growth in diluted NAV per share has
been 17.3% per annum and by including the cumulative dividends per share that
have been paid or are proposed, the total return has been 18.5% per annum.



Consolidated Profit and Loss Account

Year ended 30 June 2001


                                                                  2001     2000
                                                         Note    £'000    £'000 
       
                                                                 
GROSS RENTAL INCOME
Group and share of joint venture                                44,182   25,129
Less: share of joint venture                                   (7,252)        -
                                                                36,930   25,129
Ground rents                                                   (2,024)  (1,398)
Irrecoverable property costs                                   (2,723)  (3,009)
Amortisation of leasehold properties                             (823)    (464)
NET RENTAL INCOME                                               31,360   20,258
Net operating profit/(loss) from serviced offices                  593  (1,064)
Profit on disposal of trading properties                    1      745    3,193
Administration expenses                                        (4,297)  (3,903)
GROUP OPERATING PROFIT                                          28,401   18,484
Share of operating profit in joint venture                       6,035        -
TOTAL OPERATING PROFIT                                          34,436   18,484
Profit on disposal of investment properties                 1    3,101    8,790
Profit on disposal of shares in serviced offices                 6,500        -
subsidiary
PROFIT ON ORDINARY ACTIVITIES BEFORE INTEREST                   44,037   27,274
Net interest payable and similar charges                    2 (22,515) (11,790)
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION                   21,522   15,484
Taxation                                                    3  (5,737)  (2,220)
PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION                    15,785   13,264
Minority interests                                                 450      236
PROFIT FOR THE FINANCIAL YEAR                                   16,235   13,500
Dividends                                                   4  (5,538)  (5,014)
RETAINED PROFIT FOR THE YEAR                                    10,697    8,486

EARNINGS PER SHARE EXCLUDING NET PROFITS ON DISPOSALS       5     7.4p     3.5p

                                                            
EARNINGS PER SHARE  - BASIC                                 5    13.4p    11.2p
                    - DILUTED                               5    13.3p    11.2p





Consolidated Balance Sheet

As at 30 June 2001


                                   Unaudited pro forma post
                                     WELPUT transaction and
                                           special dividend      2001      2000
                         Note               (note 10) £'000     £'000     £'000
FIXED ASSETS
Investment and                                      508,920   747,905   690,802
development properties
Joint venture               6
Share of gross assets                               146,837   146,837         -
Share of gross                                    (106,191) (106,191)         -
liabilities                                          
                                                     40,646    40,646         -
Associates                                           72,783         -         -
Investments                                           3,213     3,213     1,953
Other tangible assets                                   272       272     2,979
                                                    625,834   792,036   695,734
CURRENT ASSETS
Trading properties                                        -         -     4,892
Debtors                                              10,407     7,907    26,510
Investments                                             916       916       750
Cash at bank and in hand                                  -     7,818     1,317
                                                     11,323    16,641    33,469
CREDITORS - AMOUNTS
FALLING DUE WITHIN ONE
YEAR                                               (58,105)  (46,039)  (55,573)
NET CURRENT LIABILITIES                            (46,782)  (29,398)  (22,104)
TOTAL ASSETS LESS
CURRENT LIABILITIES                                 579,052   762,638   673,630
                                                    
CREDITORS - AMOUNTS
FALLING DUE AFTER MORE                                                
THAN ONE YEAR                                     (118,253) (226,250) (192,095)
CONVERTIBLE UNSECURED
LOAN STOCK                                         (49,318)  (49,318)  (49,265)
                                                   
PROVISIONS FOR
LIABILITIES AND CHARGES                             (3,234)   (3,234)   (3,234)
                                                    
NET ASSETS                                          408,247   483,836   429,036

CAPITAL AND RESERVES
Called up share capital     7                        60,850    60,850    60,518
Share premium account       8                       151,392   151,392   150,234
Revaluation reserve         8                       156,334   169,535   145,040
Other reserves              8                            51        51        51
Profit and loss account     8                        22,222    84,610    59,452
EQUITY SHAREHOLDERS'                                390,849   466,438   415,295
FUNDS
MINORITY INTERESTS                                   17,398    17,398    13,741
TOTAL CAPITAL EMPLOYED                              408,247   483,836   429,036

                                                    
NET ASSETS PER SHARE - BASIC 5                       321.2p    383.3p    343.1p

                   - DILUTED 5                       319.1p    373.9p    338.4p






Consolidated Statement of Total Recognised Gains and Losses

Year ended 30 June 2001


                                                                   2001    2000
                                                                  £'000   £'000
Profit for the financial year                                    16,235  13,500
Share of surplus arising on revaluation of investment            43,828  82,290
properties
Revaluation surplus arising from part disposal of investment          -   1,870
property
Tax on realisation of revaluation surpluses on investment       (4,872) (4,212)
property disposals
Total recognised gains and losses for the year                   55,191  93,448



The total recognised gains for the year include £9,607,000 from the joint
venture, Benchmark JER 1 Limited Partnership.







Note of Historical Cost Profits and Losses

Year ended 30 June 2001


                                                                   2001    2000

                                                                  £'000   £'000
Profit on ordinary activities before taxation                    21,522  15,484
Realisation of property revaluation surpluses in prior periods   19,333  22,813
Historical cost profit on ordinary activities before taxation    40,855  38,297
Historical cost profit retained after tax and dividends          24,708  26,851









Reconciliation of Movements in Shareholders' Funds

Year ended 30 June 2001


                                                               2001        2000
                                                              £'000       £'000
Total recognised gains and losses for the year               55,191      93,448
Dividends                                                   (5,538)     (5,014)
Issue of shares                                               1,490         735
Net addition to shareholders' funds                          51,143      89,169
Opening shareholders' funds                                 415,295     326,126
Closing shareholders' funds                                 466,438     415,295



Consolidated Cash Flow Statement

Year ended 30 June 2001


                                                                 2001      2000
                                                        Note    £'000     £'000
OPERATING ACTIVITIES
Net cash inflow before sales of and additions to               45,922    13,820
trading properties
Net cash inflow from sales of and additions to trading          5,637     7,622
properties
NET CASH INFLOW FROM OPERATING ACTIVITIES               9(a)   51,559    21,442
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest received                                                 547       368
Interest paid                                                (20,801)  (14,085)
NET CASH OUTFLOW FOR RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE                                         (20,254)  (13,717)
                                                             
TAXATION
Corporation tax paid                                          (4,018)   (1,097)
CAPITAL EXPENDITURE
Acquisition of investment properties                         (69,380) (222,314)
Disposals and other capital receipts                           77,121   129,176
Purchase of other fixed assets                                (1,036)   (1,860)
Repayment of loan notes by investment                               -     1,095
NET CASH INFLOW/(OUTFLOW) FOR CAPITAL EXPENDITURE               6,705  (93,903)

                                                                
ACQUISITIONS AND DISPOSALS
Investment in joint venture                                  (31,039)         -
NET CASH OUTFLOW FOR ACQUISITIONS AND DISPOSALS              (31,039)         -
EQUITY DIVIDENDS PAID                                         (5,158)   (4,641)
CASH OUTFLOW BEFORE FINANCING                                 (2,205)  (91,916)
FINANCING
Issue of shares                                                 1,490       735
Increase in debt                                        9(b)    7,216    92,216
NET CASH INFLOW FROM FINANCING                                  8,706    92,951
INCREASE IN CASH IN THE YEAR                            9(b)    6,501     1,035



Notes to the Accounts



1          PROFIT ON DISPOSAL OF TRADING AND INVESTMENT PROPERTIES



The profit on disposal of trading and investment properties for the year ended
30 June 2001 comprises:


                                                   Trading Investment
                                                properties properties     Total
                                                     £'000      £'000     £'000
Aggregate consideration                              5,750     66,410    72,160
Less:  sales costs                                   (113)    (1,071)   (1,184)
Net proceeds                                         5,637     65,339    70,976
Less:  historical cost of properties               (4,892)   (42,905)  (47,797)
Historical cost profit                                 745     22,434    23,179
Less:  revaluation surpluses in prior periods            -   (19,333)  (19,333)
                                                       745      3,101     3,846









2          NET INTEREST PAYABLE AND SIMILAR CHARGES
                                                               2001        2000
                                                              £'000       £'000
Amounts payable on bank loans and overdrafts                 17,498      12,881
5.75% Convertible Unsecured Loan Stock 2013                   2,923       2,940
Less:  interest capitalised                                 (2,378)     (3,648)
                                                             18,043      12,173
Interest receivable                                           (536)       (383)
                                                             17,507      11,790
Share of joint venture's net interest                         5,008           -
                                                             22,515      11,790





Interest receivable includes £119,000 (2000 - £119,000) arising from loan
notes issued by Agnew's Property Investments Limited in which the Company has
a 25% interest.





3          TAXATION
                                                                2001       2000
                                                               £'000      £'000
Taxation based on profit for the year:
Corporation tax at 30% (2000 - 30%)                            2,614        539
Deferred tax                                                       -        680
Current year tax                                               2,614      1,219
Prior year over-provision                                          -      (703)
Tax on operating activities                                    2,614        516
Tax arising on capital items                                   2,815      1,704
Group tax charge                                               5,429      2,220
Share of tax from joint venture                                  308          -
                                                               5,737      2,220



The tax charge has benefited from the utilisation of brought forward losses
and capital allowances claimed.  Tax losses of £7.7 million were utilised in
the year ended 30 June 2000 and no losses were brought forward at 1 July 2000.
Relief has been taken during the year for interest capitalised of £2.4
million (2000 - £2.9 million).





4          DIVIDENDS
                                                                    2001  2000
                                                                   £'000 £'000
Interim dividend paid of 1.95p (2000 - 1.85p) per share            2,374 2,230
Final dividend proposed of 2.6p (2000 - 2.3p) per share            3,164 2,784
Total dividends payable for the year of 4.55p (2000 - 4.15p) per
share                                                              5,538 5,014
                                                                   







5          EARNINGS/NET ASSETS PER SHARE



The weighted average number of shares in issue during the period was
121,261,040 (2000 - 120,616,866) and the earnings attributable to ordinary
shares was £16,235,000 (2000 - £13,500,000).  The earnings on ordinary
activities, excluding net profits on disposal of trading and investment
properties and the disposal of shares in subsidiary undertakings, comprise net
rental income less administration expenses less net interest payable and
attributable taxation and amounted to £8,927,000 (2000 - £4,179,000).



Diluted earnings per share have been calculated for all periods adopting the
method set out in Financial Reporting Standard 14 - Earnings per Share.



Diluted earnings per share reflect the potential exercise of conversion rights
relating to the 5.75% Convertible Unsecured Loan Stock 2013 ('CULS') and of
share options.  In calculating diluted earnings per share, earnings have been
adjusted to £18,280,000 (2000 - £13,500,000) and the weighted average number
of shares increased to 137,858,216 (2000 - 120,638,427).



The number of shares in issue at 30 June 2001 was 121,700,846 (2000 -
121,036,371) and the net assets attributable to shareholders at 30 June 2001
was £466,438,000 (2000 - £415,295,000).



Diluted net assets per share, reflecting the potential exercise of conversion
rights relating to the CULS, were 373.9p as at 30 June 2001 (2000 - 338.4p),
based on net assets of £515,756,000 (2000 - £464,560,000) and shares in issue
of 137,955,033 (2000 - 137,291,371).







6          JOINT VENTURE




                                                                          £'000
Share of net assets acquired                                             31,039
Surplus on revaluation of investment properties                           8,888
Share of profit for the year                                                719
Share of net assets as at 30 June 2001                                   40,646





During the year the Group established a 50% interest in Benchmark JER 1
Limited Partnership, which operates in the United Kingdom.  The consideration
for the 50% interest was satisfied in cash.  The Group's share of that
entity's results, assets and liabilities is as follows:




Profit and loss account
                                                                          £'000
Period from 18 October 2000 to 30 June 2001
Operating profit                                                          6,035
Net interest payable                                                    (5,008)
Profit on ordinary activities before taxation                             1,027
Taxation                                                                  (308)
Retained profit for the period                                              719




Balance Sheet
                                                                          £'000
As at 30 June 2001
Investment properties at valuation                                      127,770
Trading properties                                                       14,238
Cash                                                                      3,408
Other current assets                                                      1,421
Current liabilities                                                     (5,598)
Borrowings                                                            (100,593)
                                                                         40,646



The joint venture investment properties were valued at 30 June 2001 on the
basis of open market value by DTZ Debenham Tie Leung Limited, Chartered
Surveyors.  The Group's share of the historical cost of investment properties
was £118.9 million.



The borrowings are non-recourse to the Group.





7          SHARE CAPITAL



                                      Number                      Class   £'000
Authorised:
As at 1 July 2000 and 30 June    177,000,000     ordinary shares of 50p  88,500
2001                                                               each
Allotted, called up and fully paid:
As at 1 July 2000                121,036,371     ordinary shares of 50p  60,518
                                                                   each
Issued during year                   664,475     ordinary shares of 50p     332
                                                                   each
As at 30 June 2001               121,700,846     ordinary shares of 50p  60,850
                                                                   each





8          RESERVES


                                 Share                       Profit and
                               premium                             loss
                               account Revaluation    Other     account 
                                           reserve reserves       £'000   Total
                                 £'000       £'000    £'000               £'000 
    
                                             
                                                                          
As at 1 July 2000              150,234     145,040       51      59,452 354,777
Premium on shares issued         1,158           -        -           -   1,158
Share of surplus arising on
revaluation of investment            -      43,828        -           -  43,828
properties
Revaluation surpluses
realised on investment               -    (19,333)        -      19,333       -
property disposals
Tax on realisation of
revaluation surpluses on             -           -        -     (4,872) (4,872)
investment property disposals
Retained profit for the year         -           -        -      10,697  10,697
As at 30 June 2001             151,392     169,535       51      84,610 405,588



The revaluation reserve solely relates to investment properties.





9          NOTES TO THE CONSOLIDATED CASHFLOW STATEMENT

(a)        Reconciliation of operating profit to operating cash flows


                                                                   2001    2000
                                                                  £'000   £'000
Operating profit                                                 28,401  18,484
Depreciation                                                        497     445
Profit on sale of trading properties                              (745) (3,193)
Amortisation of leasehold properties                                823     464
Decrease/(increase) in debtors                                   16,077 (8,013)
Increase in investments                                           (166)       -
Increase in creditors                                             1,035   5,633
Net cash inflow before sales of and additions to trading         45,922  13,820
properties
Net cash inflow from sales of and additions to trading            5,637   7,622
properties
Net cash inflow from operating activities                        51,559  21,442



(b)        Reconciliation of net cash flow to movement in net debt
                                                           2001            2000
                                                          £'000           £'000
Increase in cash in the year                              6,501           1,035
Cash inflow from increase in debt                       (7,216)        (92,216)
Movement in net debt                                      (715)        (91,181)
Net debt at start of year                             (267,035)       (175,854)
Net debt at end of year                               (267,750)       (267,035)





(c)        Analysis of net debt
                                              2001      Cashflow           2000
                                             £'000         £'000          £'000
Cash at bank and in hand                     7,818         6,501          1,317
Debt due within one year                         -        26,992       (26,992)
Debt due after more than one year        (275,568)      (34,208)      (241,360)
Net debt                                 (267,750)         (715)      (267,035)



10        PRO FORMA



In August 2001 Benchmark sold for a total consideration of £249.5 million its
entire partnership interests in Benchmark (Jersey) No. 1 LP to WEL Property
Limited Partnership ('WEL Partnership'), a Jersey Limited Partnership in which
The West End of London Property Unit Trust ('WELPUT'), a Jersey unit trust,
has a 50.1% interest.  Benchmark has retained a 49.9% interest in WEL
Partnership and has a 46% interest in WELPUT.



The impact of the disposal is illustrated in the following unaudited pro forma
statement of net assets.




                                                            Unaudited pro forma
                                                                    post WELPUT
                                         WELPUT  Special        transaction and
                               2001 transaction dividend       special dividend
                     Note     £'000       £'000    £'000                  £'000
FIXED ASSETS
Investment and          a   747,905   (238,985)        -                508,920
development
properties

Joint venture                                          -

Share of gross              146,837           -        -                146,837
assets
Share of gross            (106,191)           -        -              (106,191)
liabilities

                             40,646           -        -                 40,646

Associates              b         -      72,783        -                 72,783
Investments                   3,213           -        -                  3,213
Other tangible                  272           -        -                    272
assets

                            792,036   (166,202)        -                625,834

CURRENT ASSETS
Debtors                 c     7,907       2,500        -                 10,407
Investments                     916           -        -                    916
Cash at bank and in     d     7,818      27,129 (34,947)                      -
hand

                             16,641      29,629 (34,947)                 11,323

CREDITORS - AMOUNTS
FALLING DUE WITHIN
ONE YEAR                e  (46,039)    (12,066)        -               (58,105)
NET CURRENT
LIABILITIES                (29,398)      17,563 (34,947)               (46,782)
                           
TOTAL ASSETS LESS
CURRENT LIABILITIES         762,638   (148,639) (34,947)                579,052
                            
CREDITORS - AMOUNTS
FALLING DUE AFTER
MORE THAN ONE YEAR      d (226,250)     146,071 (38,074)              (118,253)

CONVERTIBLE
UNSECURED LOAN STOCK       (49,318)           -        -               (49,318)

PROVISIONS FOR
LIABILITIES AND
CHARGES                     (3,234)           -        -                (3,234)

NET ASSETS                  483,836     (2,568) (73,021)                408,247
MINORITY INTERESTS         (17,398)           -        -               (17,398)
SHAREHOLDERS' FUNDS         466,438     (2,568) (73,021)                390,849
NET ASSETS PER SHARE         383.3p      (2.1p)  (60.0p)                 321.2p
  - BASIC
- DILUTED                    373.9p      (1.9p)  (52.9p)                 319.1p





a          The value of the properties disposed of is the book value as at 30
June 2001.



b          Benchmark's investment in associates comprises its 49.9% interest
in WEL Partnership and its 46% investment in WELPUT.



c          The increase in debtors represents a loan to the WEL Partnership of
£2.5 million.



d          Of net cash proceeds of £173.2 million received from WEL
Partnership, £146.1 million was used to pay down certain unsecured borrowings.
Net borrowings will increase by £73 million with the payment of the special
dividend.



e          The increase in creditors due in less than one year is the
estimated taxation as a result of the transaction.





11.       BASIS OF PREPARATION

The above financial information does not constitute the Company's full
statutory accounts for the years ended 30 June 2000 or 2001 but is derived
from those accounts.  Statutory accounts for the year ended 30 June 2000 have
been delivered to the Registrar of Companies, whereas those for 2001 will be
delivered following the Company's Annual General Meeting.  The auditors have
reported on those accounts; their reports were unqualified and did not contain
a statement under Section 237 (2) or (3) of the Companies Act 1985.



The Annual Report and Accounts will be posted to shareholders on or before 9
October 2001 and will be available from the Company's Registered Office at: 25
Sackville Street, London W1S 3EL.



  

a d v e r t i s e m e n t