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Probus Estates PLC (PBE)

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Thursday 27 September, 2001

Probus Estates PLC

Interim Results

Probus Estates PLC
27 September 2001


                              PROBUS ESTATES PLC
                     ('Probus Estates' or 'the Company')

              Interim results for six months ended 30 June 2001

                         Chairman's Interim Statement


Interim Results

For the six-month period to 30th June 2001, the Group's turnover was £
6,471,000 (2000: £911,000).  The Group incurred a loss after taxation of £
500,000 (2000: £527,000), after accounting for exchange losses of £110,000 and
goodwill amortisation of £165,000.  The decline in the value of the Euro
against the Pound over the period has been detrimental to your Company and a
further currency translation loss of £1,182,000 was reflected in reserves.
Since 30th June 2001 there has been some recovery in the Euro exchange rate,
and therefore in the net asset value of the Group.

Acquisitions

During the period, as already reported in my last statement, we purchased a
mixed retail and residential development in Santa Ponsa in Mallorca.  This
development is proceeding within budget and is currently ahead of schedule.
Completion is therefore expected in the first quarter of 2002.  We are
planning to sell individual units rather than letting them, as some of those
tenants with whom we already have leases have expressed an interest in buying.
  We expect to make a satisfactory return on these sales.



We have continued with our policy of acquiring commercial property in the
Netherlands and purchased an office building in the town of Dordrecht for
approximately £2.9 million in July.  This acquisition was funded by the issue
of shares in Probus Estates at 5.5p, together with mortgage finance.  The
building is fully let and provides a good return.



Casino de Mallorca



We are now approaching the first anniversary of our acquisition of Casino de
Mallorca.  For the six months to 30th June 2001 the Casino's win was 6.5%
ahead of budget and ahead of the win for the same period in 2000.  As
intended, we have increased our spending on marketing and development and
therefore the net result was less than that for the six months to 30th June
2000.  The operations of Calaxada, which manages the Paladium, restaurants and
other facilities at the Casino, continue to be loss making. The management are
implementing plans to increase the volume of business with a view to making
Calaxada profitable.



Refurbishment of the entrance hall of the Casino has recently been completed
thereby improving access to the slot machine area.  The Casino is now open in
the afternoons and a free bus service has been introduced in order to attract
more visitors from nearby resort areas.  Work has also started on
refurbishment of the beach club which, from 2002, should have a positive
effect on the level of business that can be done on the site as well as
increasing the value of the property.



The coach drivers' strike during the summer has had an adverse effect on
tourism to Mallorca generally and may therefore affect the results for the
second half of the year.  We also recognise that worldwide tourism may be
affected by the recent terrorist attacks in the United States.  However,
visitors to the Casino from the USA account for a very small proportion of
total visitors.



Outlook



It is clear to the Directors that in order for shareholder value to be further
enhanced, the Group needs to achieve a greater degree of critical mass than
currently exists.  The Directors are aware of a number of opportunities to
achieve this, which are being actively examined.  We hope to be able to update
shareholders before the end of the year.

Lars-Erik Magnusson
Chairman
27 September 2001

ENQUIRIES:

Probus Estates PLC
Lars-Erik Magnusson, Chairman          Tel: 00 31 20 669 7032
Patrick Browning, Finance Director     Tel: 020 7479 7020

College Hill                           Tel: 020 7457 2020
Archie Berens                          Email: [email protected]


                              PROBUS ESTATES PLC

                     Consolidated profit and loss account
                    For the six months ended 30 June 2001

                                           Unaudited    Unaudited       Audited
                                                 Six          Six     12 months
                                              months       months
                                                  to           to            to
                                             30.6.01      30.6.00      31.12.00
                                     Notes      £000         £000          £000

Turnover
Continuing operations                          6,471          160         3,341
Discontinued operations                            -          751           751
                                         1     6,471          911         4,092
Cost of sales                                (5,317)        (227)       (2,657)

Gross profit                                   1,154          684         1,435

Administrative expenses                      (1,098)      (1,048)       (2,140)

Operating profit / (loss)
Continuing operations                             56        (249)         (590)
Discontinued operations                            -        (115)         (115)
                                                  56        (364)         (705)
Loss on sale of fixed assets                       -         (30)          (30)
Profit on sale of properties                       -            -           466
Interest receivable                               86          117           189
Cost of finance                                (615)        (250)         (604)

Loss on ordinary activities before       2     (473)        (527)         (684)
taxation

Taxation                                        (27)            -             -

Loss on ordinary activities after              (500)        (527)         (684)
taxation

Equity minority interest                           -           46            46

Loss attributable to equity                    (500)        (481)         (638)
shareholders

Loss per share                               (0.11p)      (0.28p)       (0.28p)




                              PROBUS ESTATES PLC

                          Consolidated Balance Sheet
                              As at 30 June 2001

                                           Unaudited     Unaudited      Audited
                                             30.6.01       30.6.00     31.12.00
                                                £000          £000         £000

Fixed assets
Goodwill                                       6,334             -        6,499
Tangible assets
Investment properties                         17,690         3,661       18,539
Other land and buildings                      15,024            34       15,149
Other tangible fixed assets                    1,264            17        1,278
                                              40,312         3,712       41,465
Investments                                        -             -          283

Current assets
Property development under construction        3,830             -            -
Stock                                            107             -           88
Debtors                                        2,069         2,544        1,244
Cash at bank and in hand                         485         4,523        4,368
                                               6,491         7,067        5,700

Creditors
Amounts falling due within one year          (6,102)         (493)     (19,514)
Net current assets                               389         6,574     (13,814)

Total assets less current liabilities         40,701        10,286       27,934
Creditors
Amounts falling due after one year          (18,103)       (2,482)      (3,575)
                                              22,598         7,804       24,359


Capital and reserves
Share capital                                 44,075        41,271       44,075
Share premium                                 20,235         7,620       20,235
Revaluation reserve                              198             -          198
Profit and loss account                     (41,910)      (41,087)     (40,149)

Equity shareholders' funds                    22,598         7,804       24,359

Net assets per share                           5.00p          4.5p         5.4p




                              PROBUS ESTATES PLC

                          Group Cash Flow Statement
                    For the six months ended 30 June 2001

                                               Unaudited   Unaudited    Audited
                                                     Six         Six         12
                                                  months      months     months
                                                      to          to         to
                                                 30.6.01     30.6.00   31.12.00
                                         Notes      £000        £000       £000

Cash inflow / (outflow) from operating             2,002       (387)      3,050
activities

Returns on investments and servicing of
finance
Interest received                                     86         117        189
Interest and early redemption fees paid            (615)       (250)      (604)

Net cash outflow from returns on
investments and servicing of finance               (529)       (133)      (415)
                                                   
Taxation
Corporate tax paid                                  (27)           -          -

Capital expenditure and financial
investment
Purchase of investment properties                      -     (5,169)   (15,385)
Additions to other land and buildings               (94)           -        (4)
Sale and purchase of other investments                 -        (30)      (313)
Purchase of other tangible fixed assets            (242)           -        (1)

Net cash outflow from capital
expenditure and financial investment               (336)     (5,199)   (15,703)
                                                   

Acquisitions and disposals
Net cash disposed of with subsidiary                   -           -        991
undertaking
Disposal of subsidiary undertakings                    -         559        559
Acquisition of subsidiary undertakings           (4,296)           -    (4,422)
Net cash acquired                                    542           -          -

Net cash inflow / (outflow) from
acquisitions and disposals                       (3,754)         559    (2,872)
                                                 

Cash outflow before use of liquid
resources and financing                          (2,644)     (5,160)   (15,940)
                                                 

Financing

Debt due within one year:
    New loans advanced                                 -           -          -
    Repayment of amounts borrowed                      -           -          -
Debt due after more than one year:
    New loans advanced                                 -       2,482     13,079
    Repayment of amounts borrowed                  (894)           -          -

                                                   (894)       2,482     13,079

Decrease in cash                           4,5   (3,538)     (2,678)    (2,861)


Notes


1.                  Turnover

                                         Unaudited     Unaudited        Audited
                                        Six months    Six months      12 months
                                        to 30.6.01    to 30.6.00    to 31.12.00
                                             £'000         £'000          £'000

Continuing operations -Net rental              718           160            768
income

Leisure activities                           5,753             -          2,573
                                             6,471           160          3,341
Discontinued operations - Aviemore               -           751            751

Turnover                                     6,471           911          4,092


2.         Loss before taxation from Group activities

                                                                          Total
                                                                     Operations
                                                                          £'000

Turnover                                                                  6,471
Cost of sales                                                           (5,317)

Gross profit                                                              1,154
Administrative expenses                                                 (1,098)

Operating loss                                                               56
Interest receivable                                                          86
Total finance cost                                                        (615)
Loss on ordinary activities before taxation                               (473)



3.         Reconciliation of net cash flow to movement in net debt


                                          Unaudited     Unaudited       Audited
                                         Six months    Six months     12 months
                                         to 30.6.01    to 30.6.00            to
                                                                       31.12.00
                                              £'000         £'000         £'000

(Decrease) in cash in the period            (3,538)       (2,678)       (2,861)
Cash (outflow) / inflow from increase in        894       (2,482)      (13,079)
debt
Change in net debt arising from cash        (2,644)       (5,160)      (15,940)
flows
Loans disposed of with subsidiaries               -         4,458         4,458
Loans acquired with subsidiaries                  -             -       (3,704)
Exchange differences                          (314)             -             -
Movement in net debt in the period          (2,958)         (702)      (15,186)
Net debt at start of period                (12,446)         2,740         2,740

Net debt at period end                     (15,404)       (2,038)      (12,446)

4.         Analysis of net debt

                             At        Cash              Exchange           At
                         1.1.01        flow           Differences      30.6.01
                          £'000       £'000                 £'000        £'000

Cash at bank and in       4,368     (3,569)                 (314)          485
hand
Bank overdraft             (31)          31                     -            -
Debt due within one    (16,783)      15,422                     -      (1,361)
year
Debt due after one            -    (14,528)                     -     (14,528)
year
                       (12,446)     (2,644)                 (314)     (15,404)


5.         Earnings per share has been calculated on the issued number of
ordinary shares in issue during the period of 452,193,418.  The share options
outstanding have no dilutive effect on earnings per share.

6.         The financial information for the period ended 31 December 2000 is
abridged.  The full accounts on which the auditors gave an unqualified report
have been filed with the Registrar of Companies.  The figures for the six
months ended 30 June 2001 have not been audited.



                                                                                
                                                                                
                                  

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