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Monteagle Holdings (MGL)

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Thursday 28 December, 2000

Monteagle Holdings

Final Results

Monteagle Holdings
28 December 2000

 Monteagle Holdings Societe Anonyme
(Incorporated in Luxembourg - RC Luxembourg No. B 19600)

     Registered office
     6 rue Adolphe Fischer,
     L-1520, Luxembourg

                 Results for the year ended 30th September 2000
                             (subject to audit)

Monteagle is a financial holding company, incorporated in Luxembourg.  Its
objectives are to achieve long term capital growth by holding a broad range of
investments, predominantly blue chip equities listed in New York, and investment
properties in California, to balance its more volatile controlling interests in
South Africa and Zimbabwe.  These interests include importing, exporting,
property, commercial agriculture & horticulture, gold mining, and listed

This year, the inherent volatility arising from operating in Southern Africa has
enabled our import and distribution operations in South Africa to expand their
activities, but our commercial agriculture & horticulture and gold mining
businesses in Zimbabwe found it extremely difficult to maintain operations. 
Continuing sound performances from our property and investment portfolios have
helped to offset this volatility.

The importing, exporting and distribution businesses all showed improvements and
penetrated additional markets and product segments.  Turnover increased by 6.6%
and margins have recovered to 5.4% (1999 - 3.4%).  Returns from the Group's
investment properties have continued to grow, with a mixed performance from
properties in South Africa and solid performance from our properties in
California.  The commercial agriculture & horticulture interests held through
Conafex and our associated company, Ariston, had a challenging year, due to the
political and economic situation in Zimbabwe, nevertheless their profit before
interest, exceptional items and tax improved by 4%.  Record production levels
were achieved in the principal crops of tea, tobacco and flowers, however, the
Zimbabwe dollar exchange rate was fixed against the US dollar for most of the
year, and high local inflation combined with a weak Euro eroded margins.  The
contribution from our gold mining interests fell to US$118,000 (1999 -
US$927,000) as a result of the difficult operating environment in Zimbabwe and
the historically low gold price.  In the current uncertain markets our
portfolios of leading U.S. and South African shares, which do not include
technology and Nasdaq quoted stocks, increased in value by 16.77% with an
average yield of 2.83%.

The interest charge has fallen because of changes in the method of funding our
import and distribution businesses and a significant reduction in base rates in
South Africa.  This reduction has been substantially offset by higher interest
rates on seasonal borrowings by our agriculture & horticulture businesses in

After exceptional items, which include profits realised from sales of fixed
assets, our Group profit before tax was US$3,290,000 compared to US$4,422,000 in
1999, primarily due to the reduced contribution from Gold mining mentioned above
and lower exceptional profits.  The tax charge for the year reduced
substantially because of the significantly lower profits in Zimbabwe.  Our
profit attributable to shareholders was US$1,845,000, the equivalent of earnings
per share of 29.3 US cents (1999 - 42.6 US cents).  Headline earnings per share
excluding exceptional items were 6.9 US cents (1999 - 2.3 US cents).

We regard hard currency cash flow from our investments to Luxembourg as a
significant issue, particularly when considering the level of dividend to
recommend to shareholders.  We are proposing an unchanged dividend of 8.5 US
cents per share for 2000.

Your board has carefully considered the carrying value of our Zimbabwe assets
and has decided to continue to incorporate them in Group accounts at depreciated
historic cost, translated at year end exchange rates.  It is, of course, not
possible in present circumstances, to estimate what a realistic realiseable
value of our Zimbabwean assets would be.  Most of the products produced by our
interests in Zimbabwe have selling prices denominated in hard currency and, to a
certain extent, this protects their cashflows in the current uncertain political
and economic climate.  The carrying value of these net assets at 30 September
2000 after deducting minority interests was US$12,132,000 (1999: 10,406,000).

As an investment company, we aim to achieve capital growth in terms of net
assets per share.  At 30 September 2000, taking our investments at market value,
our net assets were US$32,205,000 (1999 - US$31,626,000) equivalent to US$5.11
per share compared to US$5.02 per share a year earlier.

Our strategy, as set out in the first paragraph, has stood the test of time for
investors in the Third World.  The uncertain times in Southern Africa bring
opportunities as well as problems, but we are confident that we can capitalise
on our strong balance sheet, with net assets outside Africa of US$11,547,000
(US$1.83 per share).

J. M. Robotham     D. C. Marshall
Chairman           Chief Executive
22nd December 2000

Notice of Meeting and Declaration of Dividend

The nineteenth Annual General Meeting of the Company will be held at 6 rue
Adolphe Fischer, Luxembourg on Friday 30th March 2001 at 4.30 p.m. (local time).
 A dividend of 8.5 US cents per share is proposed to be paid on 4th May 2001 to
those shareholders registered at the close of business on 30th March 2001.

Copies of the annual report and accounts will be posted to shareholders in
February 2000.


for the year ended 30 September           2000          1999
                                        US$000          US$000
Group Turnover including Associates     57,478           45,219 
Turnover of Associates                 (32,427)         (22,158)
Group turnover                          25,051           23,061 
Operating costs                        (23,651)         (21,693)
Operating profit                         1,400            1,368 
Share of associated companies results      616            1,234 
Income from investments - dividends        435              418 
                        - interest         200              173                 
Interest paid and similar charges       (1,309)          (1,390)
Profit on ordinary activities before 
 exceptional items and tax               1,342            1,803 
Exceptional items (see note)             1,948            2,619 
Profit before tax                        3,290            4,422 
Tax                                       (446)            (962)
Profit after tax                         2,844            3,460 
Minority interests                        (999)            (721)
Profit attributable to shareholders      1,845            2,739 
Appropriation to legal reserve              (6)             (34)
Recommended dividend                      (536)            (536)
Retained profit for the year             1,303            2,169 
Earnings per share US cents               29.3c            42.6c
Headline earnings per share excluding 
 exceptional items US cents                6.9c             2.3c
Dividend per share US cents               8.50c            8.50c
Notes:                                   US$000           US$000 
1) Exceptional Items               
   Surplus on disposal of investments      992            2,563  
   Loss on partial disposal of subsidiary    -             (102)
   Surplus on disposal of tangible 
     fixed assets                          901              158 
   Share of associate                       55                - 
                                         1,948            2,619 

2). Earnings per share are based on the results attributable to shareholders and
    a weighted average number of shares in issue during the year - 6,300,000    
   (1999 - 6,428,127).


    as at 30 September                     2000           1999 
                                         US$000          US$000 
Fixed assets               
Tangible assets                         21,633           19,911 
Investments in listed associated 
  companies                             10,261            9,189 
(market value US$9,769,000 
 (1999 - US$10,090,000))               
Listed general portfolio                 7,013            9,486 
(market value US$14,947,000
  (1999 - US$15,764,000))               
Unlisted investments                       117               78

                                        39,024           38,664 

Current assets               
Inventories                              5,176            5,039 
Debtors                                  4,118            5,135 
Cash and bank balances                   1,493            1,996 

                                        10,787           12,170 
Current liabilities               
Creditors (falling due within one year)(10,786)         (13,345)
Net current assets/(liabilities)             1           (1,175)
Total assets less current liabilities   39,025           37,489 
Creditors (falling due after more than 
  one year)                             (3,876)          (3,859)
Provisions for liabilities and charges  
 Deferred taxation                      (2,654)          (2,340)

                                        32,495           31,290 

Capital and reserves               
Called up share capital                  9,450            9,450 
Share premium account                    2,411            2,411 
Other reserves                           6,760            8,228 
Retained earnings                        5,979            4,602 
Shareholders' funds                     24,600           24,691 
Minority interests                       7,895            6,599 

                                        32,495           31,290 
Net assets per share, including
  investments at market value          US$5.11          US$5.02 


for the year ended 30th September         2000             1999
                                        US$000            US$000
Operating activities               
Cash generated from operations             576            1,381
Interest paid                           (1,309)          (1,390)
Taxation recovered/(paid)                  384             (682)
Net cash (outflow)/inflow from 
 operating activities                     (349)            (691)
Investment activities               
Purchase of tangible assets             (1,054)            (523)
Purchase of investments                 (3,007)          (8,566)
Disposal of tangible assets              1,346              709
Disposal of investments                  3,210            9,700
Interest received and other investment 
 income                                    635              591
Dividends received from associates         227              273
Net cash inflow/(outflow) from investment 
 activities                              1,357            2,184
Net cash inflow before financing         1,008            1,493
Financing activities               
Net increase /(decrease) in long term 
 financing                                 235             (347)
Purchase of own shares                       -             (479)
Dividend paid - group                     (536)            (523)
- minority shareholders                    (76)            (395)
Net cash outflow from financing 
     activities                           (377)          (1,744)
Net (increase)/decrease in debt            631             (251)
Net debt at 1st October                 (3,487)          (3,237)
Effect of foreign exchange rate changes    106                1
Net debt at 30th September              (2,750)          (3,487)


1.     These preliminary results for the year ended 30th September 2000 and the
balance sheet at that date, which are unaudited, have been prepared on the basis
of accounting policies adopted for the period ended 30th September 1999.  They
comply with International Accounting Standards and Luxembourg law.  The results,
which have been reviewed by the Company's auditors, Pim Goldby S.C., are

2.     Group capital expenditure in the year was US$1,139,000 (1999 -
US$499,000); there were no capital expenditure commitments at 30th September
2000 (1999 - US$111,000).

3.     Bank loans and overdrafts of US$4,243,000 (1999 US$5,483,000) are
included in current liabilities.  Group long term finance is secured on various
local properties and bears interest at local commercial rates.


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