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Thursday 17 October, 2002


Final Results

17 October 2002

OEM plc

17 October 2002

Preliminary Statement of Unaudited 2002 Results


2002 Results

Looking back over the reports I have written as Chairman of OEM, I see I have
continually stressed the difficulty, inherent in property trading, of predicting
when transactions will complete.  This point should always be borne in mind when
considering our results.

The results for the year to 30 June 2002 are broadly satisfactory. The profit
after taxation for the year was £419,000 (2001: £247,000). Earnings per share
for the year to 30 June 2002 was 5.25p (2001: 3.08p).  Net assets at 30 June
2002 amounted to £4,521,000 (2001: £4,102,000) equivalent to 56.6p per share
(2001: 51.4p). As I have explained before, the directors do not recommend the
payment of a dividend (2001: £nil).

Business Review

I wrote to you in March about the sale of our Horsham property.  It is this sale
that provides the bulk of turnover and profit in these accounts.  I also told
you of our tribulations over the property at Stafford.  Last month, our clients
exchanged contracts for the sale of the property.  Our profit share will make a
useful contribution to the current year's outcome.  Much of our work so far this
year has been connected with the mixed residential (including affordable
housing) /retail / office development scheme in Soho, which I told you about in
March.   This will undoubtedly occupy us for some time to come. We have also
been busy for clients on a wide range of other assignments.  As I told you last
year, the Northwich property is valued considerably in excess of cost.  Indeed
the financing we have secured on it, is for more than its cost.

There has been much talk in the Press about the overheated state of the property
market.  Certainly, we find it difficult to find projects that we feel will give
us the returns we need.  We hope to be able to acquire properties at more
attractive prices over the next year or so.

Shareholder relations

As you will know we have not repeated the share buy-back exercise.  I explained
at the interim stage why this was so and invited shareholders to let us have
their views on this subject (and, indeed, any other).  I regret that not a
single shareholder, apart from the principal shareholders with whom we
inevitably have a closer dialogue, has been in touch.

Future of the Company

Looking to the future, we continue actively to seek property or corporate
situations, (whether for our own account, as joint ventures or managed for third
parties) where our low-risk strategy coupled to our expertise may be deployed.
Our objective remains to continue to invest in property related opportunities as
the way of building up net assets, earnings and consequently shareholder value,
but with minimal financial risk.

Robert P B Noonan

for the year ended 30 June 2002
                                                            2002                         2001

                                                            £000                         £000
Turnover                                                   2,412                          868
Cost of sales                                             (1,487)                        (145)

Gross Profit                                                925                           723
Administrative expenses                                    (491)                         (509)

Other Operating income                                       -                             53

Operating Profit                                            434                           267
Net interest                                                160                             5

Profit on Ordinary Activities before                        594                           272
Tax on profit on ordinary activities                       (175)                          (25)

Profit on Ordinary                                          419                           247
Activities after Taxation
Dividends                                                    -                             -

Retained Profit                                             419                           247
for the Year
Basic Diluted Earnings per                                 5.25 p                        3.08 p
Ordinary Share

No separate Statement of Total Recognised Gains and Losses has been presented.
All such gains and losses have been dealt with in the Group Profit and Loss

Turnover and operating profit all derive from continuing operations.

as at 30 June 2002
                                                      Group                          Company
                                                  2002       2001               2002         2001

                                                  £000       £000               £000         £000
Fixed Assets
Tangible assets                                     22         29                 22           29
Investments                                          -          -                743          743
                                                    22         29                765          772
Current Assets
Stocks                                             842      2,320                  -            -
Debtors                                          5,678      3,240              6,835        5,800
Cash at bank and in hand                             9        553                  8          552
                                                 6,529      6,113              6,843        6,352
Creditors (amounts falling
due within one year)                           (1,160)    (1,000)            (2,231)      (1,982)
Net Current Assets                               5,369      5,113              4,612        4,370
Total Assets less Current                        5,391      5,142              5,377        5,142
Creditors (amounts falling                       (810)    (1,040)              (810)      (1,040)
due after one year)
Provisions for Liabilities                        (60)          -               (60)            -
and Charges
Net Assets                                       4,521      4,102              4,507        4,102
Capital and Reserves
Called up share capital                          1,996      1,996              1,996        1,996
Capital Redemption Reseve                           11         11                 11           11
Merger Reserve                                     169        169                169          169
Revaluation reserve                                  -          -                262          262
Profit and loss account                          2,345      1,926              2,069        1,664
Equity Shareholders' Funds                       4,521      4,102              4,507        4,102

GROUP Cash Flow Statement
for the year ended 30 June 2002
                                                         2002                    2001
                                                         £000        £000        £000        £000
Net Cash (Outflow) Inflow from Operating                            (606)                     201
Returns on Investments
and Servicing of Finance
Interest paid                                            (50)                    (97)
Interest received                                         210         160         102           5
                                                                    (446)                     206
Taxation                                                             (13)                       -
Capital Expenditure and Financial                                     (2)                    (11)
Financing                                                               -                    (13)
(Decrease) Increase in Cash in year                                 (461)                     182

Reconciliation of net cash flow to movement
in net debt
(Decrease) Increase in cash in year                                 (461)                     182
Net (debt) at beginning of year                                     (567)                   (749)
Net (debt) at end of year                                         (1,028)                   (567)


1.             The annual general meeting of the Company will be held at 10.30am
on 29 November 2002 at 14 - 18 Ham Yard, London, W1D 7DT.

2.             The financial information set out above does not constitute the
Group's statutory accounts for the years ended 30 June 2002 or 30 June 2001, but
is derived from those accounts.  Statutory accounts for 2001 have been delivered
to the Registrar of Companies in England and Wales, and those for 2002 will be
delivered following the Company's annual general meeting.  The auditors have
reported on the 2001 accounts: their report was unqualified and did not contain
statements under section 237(2) or (3) of the Companies Act 1985.

3              The figures included in this preliminary announcement have been
prepared on the basis of the accounting policies set out in the 30 June 2001
financial statements.


Brian Schneider

OEM plc                                Tel: 020 7292 5940

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