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Benchmark Group PLC (BMK)

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Wednesday 18 September, 2002

Benchmark Group PLC

Final Results

Benchmark Group PLC
18 September 2002

RNS RELEASE




For immediate release                                      18 September 2002



                              PRELIMINARY RESULTS
                        For the Year Ended 30 June 2002

                     Net assets per share increased by 3.1%

Benchmark Group PLC ('Benchmark'), the specialist Central London property
investment and development company, announces adjusted diluted net assets per
share of 382.4p for the year ended 30 June 2002, a 3.1% increase over last
year's figure of 370.9p.

Financial Highlights


                                                30 June 2002         30 June 2001        % change
Adjusted diluted NAV/share (p)                  382.4                370.9               3.1
Net gearing (%)                                 65.4                 58.6                11.6
Properties under management (£m)                1,188.2              1,030.8             15.3
Net rental income (£m)                          48.6                 38.5                26.2
Profit after tax (£m)                           11.8                 14.9                -20.8
Dividend per share (p)                          5.05                 4.55                11.0
Special dividend per share paid (p)             60.0                 -


Corporate Highlights

  • A final dividend of 3.1p/share proposed which when added to the interim
    dividend of 1.95p/share paid on 9 April 2002 would result in a total of
    5.05p/share for the full year, an increase of 11% over 2001.

  • A special dividend of 60p/share was paid on 16 November 2001 at which time
    a share consolidation was undertaken on the basis of 8 new shares for every
    10 existing shares.

  • Investment properties showed a net increase of £17.7 million based on
    independent valuation, representing a 2.0% uplift on the investment
    properties held at the year end, compared to the 31 December 2001 interim
    valuation.

  • Net rental income increased by 26% to £48.6 million including the
    Company's share of joint ventures (2001: £38.5 million).  As at the date of
    this announcement, the annualised net rental income of the portfolio is
    £54.7 million.

  • Total disposals of £262.7 million were achieved, giving a net profit of
    £7.7 million over book value of which £2.3 million was recognised in the
    profit and loss account.

  • £159.0 million spent on acquisitions in Central London during the year
    including the long leasehold interests in 29/30 St James's Street, SW1, 25/
    28 Old Burlington Street, W1 and the freehold of Trevelyan House, 30 Great
    Peter Street, SW1. Benchmark JER 1 Limited Partnership and Benchmark JER 2
    Limited Partnership acquired 95 Fetter Lane, EC4 and the remaining 50%
    interest not already owned in 90 Long Acre, WC2, including the freehold.

  • Benchmark Direct, a new direct marketing initiative, was launched in
    January 2002. Since inception 7 deals totalling 27,000 sq ft of offices at
    rents totalling £1.3m pa have been concluded with the involvement of
    Benchmark Direct.

  • Benchmark Customer Centre, a new tenant service product launched in June
    2002 in collaboration with ISG plc, delivers high standard services to
    tenants under the terms of leases and additional optional services using an
    extranet based communication system.

Tan Sri Quek Leng Chan, Chairman of Benchmark, said: 'Since 30 June 2001 the
Central London property market has been much weaker than in recent years,
particularly in terms of tenant demand for offices.  In these more difficult
conditions we have managed to achieve most of the goals which we set out for
ourselves during the period.  We have sold £263 million of properties, paid a
special dividend of £73 million, maintained and slightly increased our net asset
value per share and increased the normal dividend per share payable.

'The West End office market still offers the characteristics of long-term
strength and resilience with little new space being speculatively developed and
a wide range of businesses wishing to locate to modern buildings in good
locations.

'We are in a good position to take advantage of the opportunities in the
marketplace as they appear.'

For further information, please contact:

Benchmark Group PLC                                 Tavistock Communications Ltd
Nigel Kempner, Chief Executive                      Jeremy Carey / Molly Dover
Tel: 020 7659 0500                                  Tel: 020 7600 2288
www.benchmarkgroup.plc.uk
www.benchmarkdirect.com

The company will make a presentation to analysts at 10.30 am on Wednesday, 18
September 2002 at 1 Cornhill, EC3.  A copy of the slide presentation is
available on www.benchmarkgroup.plc.uk.



                              CHAIRMAN'S STATEMENT



Since 30 June 2001 the Central London property market has been much weaker than
in recent years, particularly in terms of tenant demand for offices.  In these
more difficult conditions we have managed to achieve most of the goals which we
set out for ourselves during the period.  We have sold £263 million of
properties, paid a special dividend of £73 million, maintained and slightly
increased our net asset value per share and increased the normal dividend per
share payable.

The weakness of the tenant market has arisen partly as a result of the slowdown
in economic growth on both sides of the Atlantic which has been accentuated by
more recent serious corporate failures.  Combined, these have had a detrimental
effect on market confidence and on tenant demand in the property market.  We
need to see a return of business confidence for the office markets to improve in
terms of tenant demand, although the appetite for good investments has held up
well due to the low interest rate environment and the relative performance in
comparison to other forms of investment assets.

Current overall office vacancy rates in the West End, where we specialise, are
around 10% and we have seen rents falling over the last 12 months, albeit at
slower rates more recently, but incentives offered to tenants are increasing.
This has to an extent been balanced by a lack of new speculative office
development and a supply of new landlord controlled space in the core West End
market leading to some major lettings totalling some 250,000 sq ft recently to
Lazards and Capital International.  Such occupiers deciding to locate at the
heart of the West End can only be good for that market over the next few years.

There are other major companies and government bodies with active West End
requirements and, as confidence levels return and with limited new development
taking place, rental growth from current levels can be anticipated.

The Central London investment market has been resilient and has shown signs of
strengthening in capital terms as a result of demand over recent weeks from
institutions, overseas investors and private investors generally backed by debt
finance.

We have taken advantage of the market over the last 12 months to achieve
substantial sales which enabled us to pay a special dividend totalling £73
million to our shareholders in November 2001, thus delivering real returns to
them.  This did not inhibit us from making some purchases where there were
synergies with our existing portfolio or, in one case in the West End sub-market
of Westminster, where we were not represented in our portfolio and where we
consider there are good potential growth prospects.

As planned, we incurred our lowest capital expenditure programme in our history
because of the perceived position in the market cycle.  Only now are we
commencing some speculative office development in prime West End locations to
create new buildings in late 2004 and 2005.

During the last three months much time has been spent in assisting Schroder
Property Investment Management with the marketing of new units in The West End
of London Property Unit Trust ('WELPUT') where we have an effective interest of
73% of the units in issue. Good progress is being made as evidenced by a
transaction agreed between WEL Property Limited Partnership ('WEL') and Schroder
Exempt Property Unit Trust on 16 September 2002 for WEL to acquire in January
2003 an office building in the heart of Westminster called Invensys House for
consideration of £26.07 million in a structure which will mean that Benchmark's
effective interest in WELPUT will drop to 62%.

In a climate where it is important to do all that is reasonably possible to
retain existing occupiers and to attract new ones, we have restructured the
management team and successfully established two new initiatives: Benchmark
Direct for leasing and Benchmark Customer Centre for better management services
to occupiers.

RESULTS

The adjusted diluted net asset value per share as at 30 June 2002 was 382.4p
compared with 370.9p as at 30 June 2001, an increase of 3.1%.

Our investment properties, including those held in our joint venture with JER
Partners, were valued on the basis of open market value at 30 June 2002 by DTZ
Debenham Tie Leung Limited.  At that same date CB Hillier Parker Limited and
Atis Real Weatheralls Limited valued the properties in WELPUT.  These valuations
showed a net increase of £17.7 million over the 31 December 2001 figures
representing an uplift of 2% in the value of the investment properties held at
our financial year end compared to the valuation as at 31 December 2001.

Pre-tax profits for the year reduced to £13.6 million from £16.1 million in the
previous year, after deducting in the previous year the exceptional profit of
£6.5 million from the sale of our controlling interest in Corpnex PLC (formerly
Nexus Estates PLC).  Post-tax profits for the year fell to £11.8 million from
£14.9 million for the previous year.  Net rental income, including our share of
joint ventures for the year, increased from £38.5 million to £48.6 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 £54.7 million.
Total net rental income on an annualised basis from all properties managed by
the Group is currently £67.9 million per annum.

FINANCIAL

Our net borrowings at the financial year end were £246.9 million representing
net gearing of 65.4% compared with 58.6% as at 30 June 2001.  Shareholders'
funds as at 30 June 2002 were £377.8 million, compared with £457.0 million as at
30 June 2001, on a restated basis, and our share of property assets were £943
million compared with £889 million at 30 June 2001.

ACQUISITIONS AND DISPOSALS

We spent £58.0 million on acquisitions in Central London during the year in
Benchmark, £56.4 million of acquisitions were made in the Benchmark JER Limited
Partnerships and we made an investment of £72.8 million in WELPUT and the WEL
Property Limited Partnership.

Total disposals of £262.7 million were completed at a net pre-tax profit of £7.7
million of which £2.3 million was recognised in the profit and loss account and
the balance as an increase in the revaluation reserve.

Presently, in Central London, we manage a portfolio of 2.1 million sq ft with
400 tenants, valued at £1.2 billion with 86.1% by value in the West End.

DEVELOPMENTS

We spent £14.3 million on our development programme during the year.

We completed our development of Medius, Sheraton Street, W1 providing 67,000 sq
ft of offices and 6,000 sq ft of retail space and to date 20,000 sq ft has been
let producing an annual net rental income of £0.8 million.

The development of the new Waitrose retail store on Motcomb Street, Belgravia,
SW1 is continuing on schedule and within budget with an anticipated handover to
Waitrose in October 2002.  The offices, Cubitt House, above the Waitrose store
will comprise 18,000 sq ft and will be ready for marketing at the beginning of
2003.

Development works on our Golden Square Estate will commence shortly and will
provide 42,000 sq ft of new offices, 17,000 sq ft of commercial space and 4
residential units, which will be available in Autumn 2004.

We have obtained planning consent for a new office development to provide 33,500
sq ft at Melrose House, Savile Row, W1 which, subject to freeholder consent for
the development, will provide new space early in 2005.

DIVIDEND

An interim dividend of 1.95p per share was paid on 9 April 2002 and the Board
now recommends the payment of a final dividend of 3.1p per share to be paid on
18 November 2002 to shareholders on the register at 18 October 2002.  This
represents an increase of 11.0% over the total dividend per share paid for the
year to 30 June 2001.

In addition, we paid a special interim dividend of 60p per share which amounted
to £73 million on 16 November 2001.

OUTLOOK

The Central London property market continues to have short-term uncertainties
closely linked to the economic prospects and general corporate confidence both
in Europe and America.

However, London remains an important global financial centre and, provided
enough attention is paid by the relevant authorities to provide an
infrastructure to complement its importance as a city in which to live and work,
then the property market will remain strong in the longer term.

I believe that the West End office market still offers the characteristics of
long-term strength and resilience with little new space being speculatively
developed and a wide range of businesses wishing to locate to modern buildings
in good locations.

We are in a good position to take advantage of the opportunities in the
marketplace as they appear.

I would like to thank my co-directors and our entire management team for their
commitment and hard work for the continued success of the company and we look
forward to the next stage of our growth.


Tan Sri Quek Leng Chan
Chairman
17 September 2002



REVIEW OF OPERATIONS

CORPORATE EVENTS

ESTABLISHMENT OF WELPUT

In July 2001, we established a new specialist property unit trust, The West End
of London Property Unit Trust ('WELPUT') in partnership with Schroder Property
Investment Management.  We sold for a total consideration of £249.5 million, our
entire partnership interests in Benchmark (Jersey) No. 1 Limited Partnership to
WEL Property Limited Partnership in which WELPUT has a 50.1% interest and the
remaining 49.9% is held by us.

We currently have an effective ownership position of 73% and we are seeking to
reduce that to nearer 45% at least by 30 June 2003.  WELPUT has appointed HSBC
Investment Bank to assist it in raising at least £100 million through the sales
of new units and marketing is ongoing at the current time.

On 16 September 2002 WEL Property Limited Partnership entered into contractual
arrangements to acquire the freehold of Invensys House, Carlisle Place, SW1 from
the trustee of the Schroder Exempt Property Unit Trust ('SEPUT').  The aggregate
consideration is £26.07 million, to be paid on 9 January 2003. Also on that date
SEPUT will subscribe £13.6 million for units in WELPUT at an issue price based
upon WELPUT's net asset value as at 31 December 2002.  This would dilute
Benchmark's effective interest in WELPUT from 73% to 62%.

There are also contemporaneous discussions with a number of property owners, to
acquire properties in the West End with part of the consideration being in the
form of the issue of new units in WELPUT.

SPECIAL DIVIDEND AND SHARE CONSOLIDATION

In November 2001, we paid a special interim dividend of 60p per share to
shareholders totalling £73 million and we also carried out a share consolidation
of 8 new 62.5p shares for every 10 existing 50p shares held.

PROPERTY REVIEW

ACQUISITIONS

During the year, some £159.0 million was spent on acquisitions, of which the
principal transactions were:

•               £58.0 million of properties in the West End which included the
long leasehold interests in 29/30 St James's Street, SW1, 25/28 Old Burlington
Street, W1 (where, subsequent to the year end, we have also acquired an
intermediary leasehold interest for £5.0 million from CIN) and the freehold of
Trevelyan House, 30 Great Peter Street, SW1.

•               £56.4 million of properties by Benchmark JER 1 Limited
Partnership and Benchmark JER 2 Limited Partnership comprising 95 Fetter Lane,
EC4 and the remaining 50% interest not already owned in 90 Long Acre, WC2
including the freehold.  Our share of the acquisition amounted to £28.2 million.

•               A £72.8 million investment in WELPUT and the WEL Property
Limited Partnership.

DISPOSALS

During the year, we continued to pursue our stated objective of achieving sales
of non-core properties to take advantage of the market.   Total disposals of
£262.7 million were achieved, giving a pre-tax profit of £7.7 million over book
value of which £2.3 million was recognised in the profit and loss account and
the balance as an increase in the revaluation reserve.  The surplus over
historic cost was £82.1 million of which £22.4 million was recognised in the
period to 30 June 2002.  The principal disposals were:

•               Portfolio of 8 properties in Benchmark (Jersey) No. 1 Limited
                Partnership for £249.5 million
•               49/50 South Molton Street, W1
•               40/41 Old Bond Street, W1
•               63/64 South Molton Street, W1
•               4 flats at Belgravia
•               24 Cambridge Circus and 115/119 Shaftesbury Avenue, WC2 from
                the BJER portfolio (our share: 50%)


DEVELOPMENTS

Medius, Sheraton Street, W1

Practical completion of the development of 67,000 sq ft of offices and 6,000 sq
ft of retail space was achieved in July 2001.  To date, 20,000 sq ft has been
let producing an annual net rental income of £0.8 million.

Belgravia Estate, SW1

The 21,000 sq ft foodhall, pre-let to Waitrose, is due for practical completion
in October 2002.  18,000 sq ft of offices, which are being developed
speculatively, are due for practical completion in January 2003.

Golden Square Estate, W1

Planning consent was obtained in 2002 for the development of 66,000 sq ft net of
offices, retail, leisure and residential space.  Vacant possession was obtained
in June 2002 and the development has commenced.

Melrose House, Savile Row, W1

Planning consent was obtained in May 2002 for 33,500 sq ft net of offices and
retail space.  Vacant possession will be available from March 2003, and a start
is anticipated at that time subject to the freeholder's consent for a new
development and legal formalities with the local authority.

ASSET MANAGEMENT INITIATIVES

BENCHMARK DIRECT

A new direct marketing initiative was launched in January 2002, complementing
traditional agency with web-based information and telesales.  Since inception 7
deals totalling 27,000 sq ft of offices at rents totalling £1.3 million per
annum have been concluded with the involvement of Benchmark Direct.

BENCHMARK CUSTOMER CENTRE

A new tenant service product was launched in June 2002, in collaboration with
ISG plc.  Benchmark Customer Centre aims to deliver high standard services to
tenants, both under the terms of leases and additional optional services, using
an extranet based communication system.

REFURBISHMENT PROGRAMME

During the period July 2001 to June 2002 6 projects totalling 84,000 sq ft were
undertaken and delivered on time and within budget.  These include 2 floors
totalling 43,000 sq ft at 125 Shaftesbury Avenue and the 4th floor at 90 Long
Acre (21,000 sq ft).

VACANCY

Currently, of the 2.1 million sq ft under management, 128,250 sq ft or 6.1% is
vacant with a total estimated rental value of £5.5 million per annum.

PORTFOLIO ANALYSIS

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

•               Lease profile

34% of our annual net rental income extends beyond 10 years.

>15 yrs                           16.8%
11-15 yrs                         16.8%
5-10 yrs                          30.5%
<5 yrs                            35.9%

•               Location

86% by value of our properties are in the West End.

West End                          86.1%
City                              13.9%

The breakdown of the West End portfolio into key sub-markets by value are as
shown below.

Mayfair & St. James's                                38.8%
Soho/Covent Garden                                   30.5%
Kensington/Hammersmith                               20.6%
Chelsea/Belgravia                                    6.2%
Victoria/Westminster                                 3.9%

•        Use

79% of the annual net rental income is derived from offices with those in the
West End contributing 68% and 18% from retail use.  The 'others' category
includes residential, leisure and car parking uses.

West End Offices                                     65.2%
Retail                                               17.8%
City Offices                                         13.8%
Others                                               3.2%

•        Tenure

Despite our concentration in the West End, where many properties are leasehold,
we hold 68% by value of our properties as freeholds or on leases with at least
100 years unexpired.

<25 years                                            0.9%
25-49 years                                          1.5%
50-74 years                                          9.1%
75-100 years                                         20.4%
>100 years                                           24.6%
Freehold                                             43.5%

•        Tenant profile

Tenants from the financial services sector contribute 25% of our net annual
income, whilst 15% comes from major retailers with UK corporates contributing
another 13%.  Exposure to the technology, media and telecommunications (TMT)
sector is 8%.

Financial Services                               25.0%
Others                                           18.7%
Major Retailers                                  14.7%
UK Corporates                                    13.5%
Professional Services                            6.8%
TMT                                              6.0%
Government                                       4.3%





FINANCIAL REVIEW

NET ASSETS PER SHARE

The investment portfolio, including those held in our joint venture with JER
Partners, was revalued at 30 June 2002 by DTZ Debenham Tie Leung Limited.  The
properties in The West End of London Property Unit Trust ('WELPUT') were valued
on the same date by CB Hillier Parker Limited and Atis Real Weatheralls Limited.
  The valuation showed a net increase of £17.7 million representing a 2.0%
uplift on the investment properties held at the year end, compared to the 31
December 2001 interim valuation.  Correspondingly, for the full year the value
of the investment properties remained the same (2001 - 6.0% uplift).

The required adoption, effective for the first time in this financial year, of
the Urgent Issues Task Force Abstract 28 'Operating Lease Incentives' (UITF 28)
and the Financial Reporting Standard 19 'Deferred Tax' (FRS 19) have
necessitated the restatement of the comparative figures for the previous
financial year end, 30 June 2001.  The restated basic and diluted net asset
values per share as at 30 June 2001 to take account of these accounting changes
are 375.5p and 367.0p respectively compared with 383.3p and 373.9p as previously
reported.  These figures are reported following the full adoption of FRS 19, as
stated above.  Adding back the special dividend of £73 million, adjusted net
assets were £455.4 million (2001 - restated £462.3 million) and have been
calculated excluding the additional deferred tax liability in respect of capital
allowances of £4.5 million (2001 - £5.3 million) as it is the Group's belief
that such a liability is unlikely to crystallise.

The adjusted diluted net assets per share as at 30 June 2002 is 382.4p, a 3.1%
increase on the previous year's figure of 370.9p.

OPERATING RESULTS

Gross rental income (including share of joint ventures) increased by 20.9% to
£54.7 million (2001 -  £45.3 million).  The main contribution to profits was
from net rental income.  Net rental income rose by 26% to £48.6 million
including the company's share of joint ventures (2001 - £38.5 million).  Our
joint ventures contributed £18.5 million of net rental income (2001 - £6.0
million).

The annualised net rental income including our share of joint ventures increased
to £53.0 million from £50.5 million last year.

Profit before taxation reduced to £13.6 million from £22.6 million previously.
However last year's profit included the £6.5 million profit on disposal of
shares in Corpnex PLC.  Taking out this profit, the reduction in profit before
tax was only 15.5%.  Profit after tax was £11.8 million compared to £14.9
million previously.

Earnings per share on a diluted basis reduced to 11.0p from 12.6p previously.
The adjusted earnings per share, which exclude the post-tax profit arising on
sales of trading and investment properties and disposal of shares in Corpnex PLC
and the different taxation charge in respect of capital allowances arising on
the adoption of FRS 19, was 9.6p per share compared to 7.4p previously.

OVERHEADS

Total overheads for the year amounted to £6.0 million (2001 - £4.3 million).
This represents 0.50% of the value of properties under management compared to
0.42% previously.    During the year the principle of a bonus bank was
established and it was determined by the Board that the payment of a special
dividend to shareholders on 16 November 2001 warranted the establishment of a
bonus bank.  The total amount of the bonus bank was £730,000 and if this amount
was deducted, total overheads for the year would be £5.2 million representing
0.44% of the value of properties under management.

TAXATION

The taxation charge of £1.7 million (2001 - £7.7 million) represents 12.8% (2001
- 34.2%) of our pre-tax profits.  The reduction is due to the release of a £3.4
million deferred tax charge on properties disposed.

FINANCE

The Group finances its operations through 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 exposure to interest rate
movements.

At the year end 73% (2001 - 59%) of borrowings were at fixed interest rates and
the weighted average rate of interest was 6.5% (2001 - 7.3%).  Total net
borrowings amounted to £246.9 million (2001 - £267.8 million) representing a
gearing of 65.4% (2001 - 58.6%).  However if our share of the joint ventures'
non-recourse debt is included, the gearing would be 129.6% (2001 - 78.3%).  The
increase is mainly due to the inclusion of our share of the WELPUT debt.

DEBT STRUCTURE

The breakdown of the type of borrowings are shown below.


Unsecured, recourse                             33.9%
Secured, non-recourse                           15.2%
Share of JV's debt,
  secured, non-recourse                         50.9%


6 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 now has £1.2 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 on the table below:-

£ million

                             1996/97     1997/98     1998/99     1999/00     2000/01     2001/02       Total
Acquisitions                   176.9       222.0        35.3       186.5       169.7       159.0       949.4
Disposals                          -        49.0        85.9      167.0*        76.8       262.7       641.4
Capital Expenditure              2.4        31.4        63.8        44.4        38.7        14.3       195.0



* Excluding sale of 49.9% of Kensington Estate

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

During this period, the annual compound growth in diluted NAV per share
including the cumulative dividends per share that have been paid or are proposed
is 16.1% per annum.


Consolidated Profit and Loss Account
Year ended 30 June 2002
                                                                                                          2001
                                                                                          2002      (restated)
                                                                            Note         £'000           £'000
GROSS RENTAL INCOME
Group and share of joint ventures                                                      54,737          45,268
Less: share of joint ventures                                                         (19,375)         (7,252)
                                                                                       35,362          38,016
NET RENTAL INCOME
Group and share of joint ventures                                                      48,554          38,468
Less: share of joint ventures                                                         (18,523)         (6,022)
                                                                                       30,031          32,446
Net operating profit from Corpnex PLC                                                        -            593
Profit on disposal of trading properties                                       2             -            745
Administration expenses                                                                (5,968)         (4,297)

GROUP OPERATING PROFIT                                                                 24,063          29,487
Share of operating profit in joint ventures                                    7       17,801           6,035

TOTAL OPERATING PROFIT                                                                 41,864          35,522
Profit on disposal of investment properties                                    2        2,287           3,101
Profit on disposal of shares in Corpnex PLC                                                  -          6,500

PROFIT ON ORDINARY ACTIVITIES BEFORE INTEREST                                          44,151          45,123
Group net interest payable and similar charges                                 3      (13,914)        (17,507)
Share of net interest payable in joint ventures                                7      (16,674)         (5,008)

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION                                          13,563          22,608
Tax on profit on ordinary activities                                           4       (1,734)         (7,742)

PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION                                           11,829          14,866
Minority interests                                                                       (107)            450

PROFIT FOR THE FINANCIAL YEAR                                                  9       11,722          15,316
Dividends                                                                      5      (77,925)         (5,538)

RETAINED (LOSS)/PROFIT FOR THE YEAR                                                   (66,203)          9,778

EARNINGS PER SHARE    - BASIC                                                  6         11.0p           12.6p
                      - DILUTED                                                6         11.0p           12.6p
ADJUSTED EARNINGS PER SHARE                                                    6          9.6p            7.4p


All income was derived from within the United Kingdom from continuing
operations.  The comparative figures for the year ended 30 June 2001 have been
restated as set out in note 1.



Consolidated Balance Sheet
As at 30 June 2002
                                                                                                             2001
                                                                                              2002     (restated)
                                                                             Note            £'000          £'000
FIXED ASSETS
Investment and development properties                                                     571,112        746,819
Joint ventures                                                                  7
Share of gross assets                                                                     382,361        146,837
Share of gross liabilities                                                               (278,471)      (106,191)
                                                                                          103,890         40,646
Investments                                                                                 3,213          3,213
Other tangible assets                                                                         255            272
                                                                                          678,470        790,950
CURRENT ASSETS
Debtors                                                                                    14,902          8,993
Investments                                                                                   916            916
Cash at bank and in hand                                                                    5,172          7,818
                                                                                           20,990         17,727
CREDITORS - AMOUNTS FALLING DUE WITHIN ONE YEAR                                           (39,866)       (46,365)

NET CURRENT LIABILITIES                                                                   (18,876)       (28,638)

TOTAL ASSETS LESS CURRENT LIABILITIES                                                     659,594        762,312

CREDITORS - AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR                                 (202,734)      (226,250)

CONVERTIBLE UNSECURED LOAN STOCK                                                          (49,365)       (49,318)

PROVISIONS FOR LIABILITIES AND CHARGES                                                    (10,225)       (12,306)

NET ASSETS                                                                                397,270        474,438

CAPITAL AND RESERVES
Called up share capital                                                         8          60,906         60,850
Share premium account                                                           9         151,490        151,392
Revaluation reserve                                                             9         145,769        168,449
Other reserves                                                                  9              51             51
Profit and loss account                                                         9          19,627         76,298

EQUITY SHAREHOLDERS' FUNDS                                                                377,843        457,040
Minority interests                                                                         19,427         17,398

TOTAL CAPITAL EMPLOYED                                                                    397,270        474,438

NET ASSETS PER SHARE  - BASIC                                                   6           387.7p         375.5p
                      - DILUTED                                                 6           378.4p         367.0p

ADJUSTED NET ASSETS PER SHARE - BASIC                                           6           392.4p         379.9p
                              - DILUTED                                         6           382.4p         370.9p


The accounts have been approved by the Board of Directors and were signed on 17
September 2002 on its behalf by:

N J Kempner
K C Wong



Other Primary Statements
Year ended 30 June 2002


Consolidated Statement of Total Recognised Gains and Losses
                                                                                                           2001
                                                                                         2002        (restated)
                                                                                        £'000             £'000
Profit for the financial year                                                         11,722            15,316
Share of (deficit)/surplus arising on revaluation of investment properties            (7,968)           42,742
Unrealised profit on sale to WELPUT                                                    5,393                  -
Tax on realisation of revaluation surpluses on investment property                   (10,573)           (4,872)
disposals
Total recognised gains and losses for the year                                        (1,426)           53,186
Prior year adjustment (note 1)                                                        (9,398)                 -
Total recognised gains and losses since last accounts                                (10,824)           53,186



The total recognised gains and losses include losses of £11,091,000 (2001: gains
of £9,607,000) from joint ventures (note 7).

Note of Historical Cost Profits and Losses


                                                                                                           2001
                                                                                         2002        (restated)
                                                                                        £'000             £'000
Profit on ordinary activities before taxation                                         13,563            22,608
Realisation of property revaluation surpluses in prior periods                        20,105            19,333
Historical cost profit on ordinary activities before taxation                         33,668            41,941
Historical cost (loss)/profit retained after tax, minority interests and             (56,671)           24,239
dividends


Reconciliation of Movements in Shareholders' Funds

                                                                                                           2001
                                                                                         2002        (restated)
                                                                                        £'000             £'000
Total recognised gains and losses for the year                                        (1,426)           53,186
Dividends                                                                            (77,925)           (5,538)
Issue of shares                                                                          154             1,490
(Decrease)/increase in total capital employed                                        (79,197)           49,138
Opening shareholders' funds (originally £466.4m before prior year
  adjustment of £9.4m)                                                               457,040           407,902
Closing shareholders' funds                                                          377,843           457,040



Consolidated Cash Flow Statement
Year ended 30 June 2002

                                                                                            2002          2001
                                                                              Note         £'000         £'000
OPERATING ACTIVITIES
Net cash inflow before sales of and additions to trading properties                      15,315        45,922
Net cash inflow from sales of and additions to trading properties                              -        5,637

NET CASH INFLOW FROM OPERATING ACTIVITIES                                    10(a)       15,315        51,559

DIVIDENDS FROM JOINT VENTURES AND ASSOCIATES                                                341              -

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest received                                                                           785           547
Interest paid                                                                           (15,230)      (20,801)

NET CASH OUTFLOW FOR RETURNS ON INVESTMENTS AND SERVICING OF FINANCE                    (14,445)      (20,254)
TAXATION
Corporation tax paid                                                                     (7,301)       (4,018)

CAPITAL EXPENDITURE
Acquisition of investment properties                                                    (83,629)      (69,380)
Disposals and other capital receipts                                                    263,179        77,121
Purchase of other fixed assets                                                              (65)       (1,036)

NET CASH INFLOW FOR CAPITAL EXPENDITURE                                                 179,485         6,705

ACQUISITIONS AND DISPOSALS
Investment in joint ventures                                                            (74,658)      (31,039)

NET CASH OUTFLOW FOR ACQUISITIONS AND DISPOSALS                                         (74,658)      (31,039)

EQUITY DIVIDENDS PAID                                                                   (78,068)       (5,158)

CASH INFLOW/(OUTFLOW) BEFORE USE OF LIQUID RESOURCES AND FINANCING                       20,669        (2,205)

FINANCING
Issue of shares                                                                             154         1,490
(Decrease)/increase in debt                                                  10(b)      (23,469)        7,216

NET CASH (OUTFLOW)/INFLOW FROM FINANCING                                                (23,315)        8,706

(DECREASE)/INCREASE IN CASH IN THE YEAR                                      10(b)       (2,646)        6,501


Notes to the Accounts

1                    RESTATEMENT OF COMPARATIVES

The effects of adopting UITF28 (Operating Lease Incentives) and FRS19 (Deferred
Tax) for the current and comparative years are as follows:


                                Gross   Taxation     Profit Earnings per share   Shareholders'   Net assets per share
                             property                 after       (pence)                funds       (pence)
                               income              taxation
                                £'000      £'000      £'000     Basic   Diluted          £'000    Basic    Diluted
Year ended 30 June 2001

As previously reported         36,930    (5,737)    15,785      13.4      13.3        466,438    383.3      373.9
Effect of adopting UITF28       1,086      (326)       760       0.6       0.5           (326)    (0.3)      (0.3)
Effect of adopting FRS19            -    (1,679)    (1,679)     (1.4)     (1.2)        (9,072)    (7.5)      (6.6)
As restated                    38,016    (7,742)    14,866      12.6      12.6        457,040    375.5      367.0


Year ended 30 June 2002

Without adoption of

UITF28 and FRS19               34,750    (3,638)      9,313       8.6       8.9     385,312     395.4      385.0
Effect of adopting UITF28         612      (184)        428       0.4       0.4        (485)     (0.5)      (0.4)
Effect of adopting FRS19            -     2,088       2,088       2.0       1.7      (6,984)     (7.2)      (6.2)
As reported                    35,362    (1,734)     11,829      11.0      11.0     377,843     387.7      378.4


2          PROFIT ON DISPOSAL OF TRADING AND INVESTMENT PROPERTIES

The profit on disposal of trading properties was £nil (2001 - £745,000).

The profit on disposal of investment properties comprises:


                                                                                         2002             2001
                                                                                        £'000            £'000
Aggregate consideration                                                              262,731           66,410
Less:  sales costs                                                                    (1,551)          (1,071)

Net proceeds                                                                         261,180           65,339
Less:  historical cost of properties                                                (179,118)         (42,905)

Historical cost profit                                                                82,062           22,434
Less:  revaluation surpluses in prior periods                                        (74,382)         (19,333)
                                                                                       7,680            3,101

Less:  unrealised profit on disposal to WELPUT                                        (5,393)                -
                                                                                       2,287            3,101



3          GROUP NET INTEREST PAYABLE AND SIMILAR CHARGES
                                                                                         2002              2001
                                                                                        £'000             £'000
Amounts payable on bank loans and overdrafts                                          11,788            17,498
5.75% Convertible Unsecured Loan Stock 2013                                            2,930             2,923
Less:  interest capitalised                                                                 -           (2,378)
                                                                                      14,718            18,043
Interest receivable                                                                     (804)             (536)
                                                                                      13,914            17,507
Interest receivable includes £161,000 (2001 - £119,000) arising from loan notes
issued by Agnew's Property Investments Limited ('APIL') in which the Company has
a 25% interest.


4          TAX ON PROFIT ON ORDINARY ACTIVITIES
                                                                                         2002              2001
                                                                                        £'000        (restated)
                                                                                                          £'000
Taxation based on profit for the year:
Corporation tax at 30% (2001 - 30%)                                                    2,272             2,940
Tax arising on capital items                                                           1,512             2,815
                                                                                       3,784             5,755
Deferred taxation on revenue profit                                                    1,325             1,679
Release of deferred taxation                                                          (3,406)                 -
Group tax charge                                                                       1,703             7,434
Share of tax from joint ventures                                                          31               308
                                                                                       1,734             7,742

Factors affecting the tax charge for the year

The tax assessed for the year is lower than the standard rate of corporation tax
in the UK of 30% (2001 - 30%).  The differences are explained below:


                                                                                         2002             2001
                                                                                        £'000            £'000
Profit on ordinary activities before taxation (page 16)                               13,563           22,608
Profit on ordinary activities multiplied by the standard rate of                       4,069            6,782
corporation tax at 30%
Capital allowances                                                                    (1,567)            (654)
Capitalised interest                                                                        -            (713)
Additional tax on property sales                                                         826              (66)
Expenses disallowed                                                                      487              714
Share of tax from joint ventures                                                         (31)            (308)
Tax on profit on ordinary activities                                                   3,784            5,755

5          DIVIDENDS

                                                                                         2002              2001
                                                                                        £'000             £'000
First interim dividend paid of 60p (2001 - nil) per share                              73,006                 -
Second interim dividend paid of 1.95p (2001 - 1.95p) per share                          1,898             2,374
Final dividend proposed of 3.1p (2001 - 2.6p) per share                                 3,021             3,164
Total dividends payable for the year of 65.05p (2001 - 4.55p) per share                77,925             5,538

6          EARNINGS/NET ASSETS PER SHARE

Earnings per share

The weighted average number of shares in issue during the year was 106,317,100
(2001 - 121,261,040) and the earnings attributable to ordinary shares were
£11,722,000 (2001 - restated £15,316,000).

Adjusted earnings per share are calculated on the same weighted average number
of shares but exclude the post-tax profit arising on sales of trading and
investment properties of £775,000 (2001 - £2,758,000) and the disposal of shares
in Corpnex PLC of £nil (2001 - £4,550,000) and the deferred taxation credit of
£780,000 (2001 - charge of £966,000) in respect of capital allowances arising on
the adoption of FRS19.  The deferred tax is excluded as the Group's experience
is that it is very unusual for capital allowances to be claimed back through
balancing charges on the disposal of a property.

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

In calculating diluted earnings per share the weighted average number of shares
have been increased to 121,962,374 (2001 - 137,858,216) and earnings adjusted to
£13,734,000 (2001 - restated £17,362,000) to take account of the dilutive effect
of the potential exercise of conversion rights relating to the 5.75% Convertible
Unsecured Loan Stock 2013 ('CULS') and share options.

Net assets per share

The number of shares in issue at 30 June 2002 was 97,450,240 (2001 -
121,700,846) and net assets attributable to shareholders were £377,843,000 (2001
- restated £457,040,000).

Adjusted net assets per share have been calculated on the same number of shares
but exclude the additional deferred tax liability in respect of capital
allowances of £4,531,000 (2001 - £5,311,000) arising from the adoption of FRS19.
Adjusted net assets have been calculated on this basis as the Group's
experience is that deferred tax on capital allowances in relation to investment
properties is unlikely to crystallise in practice.

Diluted net assets per share, reflecting the potential exercise of conversion
rights relating to the CULS, were 378.4p as at 30 June 2002 (2001 - restated
367.0p), based on net assets of £427,208,000 (2001 - restated £506,358,000) and
shares in issue of 112,911,458 (2001 - 137,955,033).

Diluted adjusted net assets per share, were 382.4p as at 30 June 2002 (2001 -
370.9p), based on net assets of £431,739,000 (2001 - restated £511,669,000) and
shares in issue of 112,911,458 (2002 - 137,955,033).

7          JOINT VENTURES
                                                                                                        £'000
At 1 July 2001 at valuation                                                                           40,646
Net equity investments                                                                                74,658
Deficit on revaluation of investment properties                                                      (12,187)
Share of retained profit for the year                                                                    773
Share of net assets at 30 June 2002                                                                  103,890

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.

Under the terms of the WEL Partnership deed and the WELPUT Trust deed, Benchmark
does not have the right to control either entity. In view of Benchmark's
effective joint control it has accounted for its WELPUT interests as a joint
venture in accordance with Financial Reporting Standard 9 - Associates and Joint
Ventures. Benchmark will be seeking to reduce its effective interest below 50%
by 30 June 2003.

During the year the Group established a 49.9% partnership interest in Benchmark
JER 2 Limited Partnership, which operates in the United Kingdom.


Summarised aggregated financial statements:
                                                   Benchmark     Benchmark           WEL
                                                       JER 1         JER 2   Partnership
                                                     Limited       Limited           and       Total       Total
                                                 Partnership   Partnership        WELPUT        2002        2001
                                                       £'000         £'000         £'000       £'000       £'000

Percentage interest at year end                        50.0%         49.9%        72.9%*
Profit and loss accounts - Group Share
Year to 30 June 2002

Gross rental income                                   7,699           675        11,001      19,375       7,252
Operating profit                                      7,994           637         9,170      17,801       6,035
Net interest payable                                 (7,357)         (470)       (8,847)    (16,674)     (5,008)
Profit on ordinary activities before taxation           637           167           323       1,127       1,027
Taxation                                                (31)             -             -        (31)       (308)
Profit for the year                                     606           167           323       1,096         719



Balance sheets - Group Share
As at 30 June 2002

                                                                                           Total        Total
                                                                                            2002         2001
                                                     £'000       £'000        £'000        £'000        £'000
Investment properties at valuation                 132,085      32,435      199,857      364,377      127,770
Trading properties                                   6,976            -            -       6,976       14,238
Cash                                                 2,558         831        5,116        8,505        3,408
Other current assets                                    46          26        2,431        2,503        1,421
Current liabilities due in less than one year       (5,266)    (13,679)      (7,551)     (26,496)      (5,598)
Borrowings due after more than one year            (92,155)    (14,718)    (145,102)    (251,975)    (100,593)
                                                    44,244       4,895       54,751      103,890       40,646



*The Group has a 49.9% interest in WEL Partnership and a 46% interest in WELPUT
which has a 50.1% interest in WEL Partnership giving an effective economic
interest of 72.9%.

The investment properties are stated on the basis of their open market values as
at 30 June 2002.  The valuations were carried out by DTZ Debenham Tie Leung
Limited, CB Hillier Parker Limited and Atis Real Weatheralls Limited, Chartered
Surveyors, acting as External Valuers and in accordance with the Appraisal and
Valuation Manual of the Royal Institution of Chartered Surveyors.

The accounting period for Benchmark JER 1 and 2 Limited Partnerships is 30 June
and for WEL Partnership and WELPUT the period is 30 September.

All joint venture borrowings are non-recourse to the Group.

8          SHARE CAPITAL


                                    Number Class                                                 £'000
Authorised:
At 1 July 2001                177,000,000  ordinary shares of 50p each                          88,500
Share consolidation           (35,400,000)                                                           -
At 30 June 2002               141,600,000  ordinary shares of 62.5p each                        88,500

Allotted, called up and fully 
paid:
At 1 July 2001                121,700,846  ordinary shares of 50p each                          60,850
Issued pre share                    7,984  ordinary shares of 50p each                               4
consolidation
                              121,708,830  ordinary shares of 50p each                          60,854

Share consolidation           (24,341,766)                                                           -
                               97,367,064  ordinary shares of 62.5p each                        60,854
Issued post share                  83,176  ordinary shares of 62.5p each                            52
consolidation
At 30 June 2002                97,450,240  ordinary shares of 62.5p each                        60,906

9          RESERVES


                                                      Share   Revaluation       Other   Profit and
                                                    premium       reserve    reserves         loss
                                                    account         £'000       £'000      account        Total
                                                      £'000                                  £'000        £'000

At 1 July 2001                                      151,392      169,535           51      84,610      405,588
Prior year adjustments (UITF28 & FRS19)                   -       (1,086)           -      (8,312)      (9,398)
At 1 July 2001 as restated                          151,392      168,449           51      76,298      396,190
Premium on shares issued                                 98             -           -            -          98
Share of deficit arising on revaluation of
   investment properties                                  -       (7,968)           -            -      (7,968)
Unrealised profit on sale to WELPUT                       -        5,393            -            -       5,393
Revaluation surpluses realised on
   investment property disposals                          -      (20,105)           -      20,105             -
Tax on realisation of revaluation
surpluses  on investment property
disposals                                                 -             -           -     (10,573)     (10,573)
Profit for the financial year                             -             -           -      11,722       11,722
Dividends                                                 -             -           -     (77,925)     (77,925)
At 30 June 2002                                     151,490      145,769           51      19,627      316,937


10        NOTES TO THE CONSOLIDATED CASHFLOW STATEMENT
(a)        Reconciliation of operating profit to operating cash flows

                                                                                      2002               2001
                                                                                     £'000         (restated)
                                                                                                        £'000
Operating profit                                                                   24,063             29,487
Depreciation                                                                           82                497
Profit on sale of trading properties                                                     -              (745)
Amortisation of leasehold properties                                                  874                823
(Increase)/decrease in debtors                                                     (7,878)            14,991
Increase in investments                                                                  -              (166)
(Decrease)/increase in creditors                                                   (1,826)             1,035
Net cash inflow before sales of and additions to trading properties                15,315             45,922
Net cash inflow from sales of and additions to trading properties                        -             5,637
Net cash inflow from operating activities                                          15,315             51,559


(b)        Reconciliation of net cash flow to movement in net debt
                                                                                      2002              2001
                                                                                     £'000             £'000
(Decrease)/increase in cash in the year                                            (2,646)            6,501
Cash outflow/(inflow) from decrease/(increase) in debt                             23,469            (7,216)
Movement in net debt                                                               20,823              (715)
Net debt at start of year                                                        (267,750)         (267,035)
Net debt at end of year                                                          (246,927)         (267,750)



(c)        Analysis of net debt
                                                                    2002          Cashflow               2001
                                                                   £'000             £'000              £'000
Cash at bank and in hand                                          5,172            (2,646)             7,818
Debt due after more than one year                              (252,099)           23,469           (275,568)
Net debt                                                       (246,927)           20,823           (267,750)

11        BASIS OF PREPARATION

The above financial information does not constitute the Company's full statutory
accounts for the years ended 30 June 2001 or 2002 but is derived from those
accounts.  Statutory accounts for the year ended 30 June 2001 have been
delivered to the Registrar of Companies, whereas those for 2002 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 4
October 2002 and will be available from the Company's Registered Office at: 11
Grafton Street, London W1S 4EW.


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