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H.R. Owen PLC (HRO)

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Thursday 26 August, 2010

H.R. Owen PLC

Interim Financial Information


                                 H.R. Owen Plc                                 

                                    Interim                                    
                             Financial Information                             

                           For the six months ended                            
                                 30 June 2010                                  

                                  HIGHLIGHTS                                   

  * Profit before tax from continuing operations, before
    exceptional items, of £1.5 million (2009: loss of £1.0 million);

  * Profit before tax of £0.7 million (2009: £6.5 million);
   
  * Basic earnings per share of 2.0 pence (2009: 19.6 pence);
   
  * Interim dividend declared of 2.0 pence per ordinary share (2009: 2.0 pence
    per ordinary share);
   
  * Cash balances at 30 June 2010 of £11.5 million (31 December 2009: £15.1 million).
   
Chairman's Statement

I am pleased to report that the Group has returned to profitable trading in the
six months to 30 June 2010 and that performance has been ahead of internal
expectations for both our Sales and Aftersales operations, despite the
challenging economic climate.

Profits, before tax and exceptional items, for the period were £1.5 million
compared to a loss to 30 June 2009 of £1.0 million. Profit before tax for the
period for the Group was £0.7 million (2009: £6.5 million, which included an
exceptional gain of £7.5 million) representing earnings per share after tax of
2.0 pence (2009: 19.6 pence). Turnover for the period was £80.7 million
compared to £62.2 million for the first half of 2009, an increase of 30%.

On 28 May 2010, the Company paid the final dividend in respect of the year
ended 31 December 2009 of 2.0 pence per ordinary share. The directors have
declared an interim dividend for the six months ended 30 June 2010 of 2.0 pence
per ordinary share (2009: 2.0 pence per ordinary share) which is expected to be
paid on 22 October 2010 to shareholders on the register at the close of
business on 24 September 2010.

Overall, there was a cash outflow in the period of £3.6 million (2009: inflow
of £9.3 million). However, given that the 2009 year-end cash position was
temporarily boosted by £6.6 million of advanced customer deposits, this
represents a good cash performance. The Group finished the period with a strong
balance sheet including cash balances of £11.5 million (31 December 2009: £15.1
million) and, as for 30 June 2009, excluding manufacturer stocking loans of £
11.7 million (2009: £8.4 million) had no net debt.

In the first six months of the year, when the Group traditionally delivers
proportionally its best performance, new car volumes increased to 300 cars
compared to 242 cars delivered to 30 June 2009. Results were boosted by strong
deliveries of the recently introduced Rolls-Royce Ghost and Ferrari California.
In addition Bentley new car volumes were also ahead of those achieved in the
first half of 2009. Used car volumes increased to 284 cars from 251 cars
delivered in 2009. Margins on both new and used cars were also better than in
the prior year.

Our Aftersales operations started the year slowly as results were adversely
affected by the severe winter weather experienced but noticeably improved in
the second quarter to finish the half year ahead of both the comparable prior
year period and our internal expectations.

Capital expenditure in the six months was £1.2 million (2009: £1.0 million),
primarily associated with fixed assets acquired as part of the purchase of an
Audi Aftersales business in Wandsworth, London on 29 June 2010. As a result of
the early surrender of the lease for the Group's Bentley aftersales facility at
Nine Elms, London, in 2008 we will be required to vacate these premises no
later than March 2012. Our intention is that we will relocate the Bentley
Aftersales business into the new Wandsworth premises, alongside the existing
Audi business. Agreement for this relocation has already been received from
both manufacturers and we expect that the relocation will occur in early 2011.
By utilising the available space to house an existing operation, the
transaction is forecast to be earnings enhancing from 2011.

During the first six months of 2010 we have initiated a restructuring of the
Company's Board. In May Nick Lancaster, Ramon Pajares, Tony Smith and Nick
Mason resigned and I would like to thank them for their contribution. Adrian
Martin joined the Board as a non-executive director and brings with him
substantial audit and corporate finance experience as well as non-executive
experience obtained at other listed companies. The search for a new Chief
Executive is progressing as planned and we hope to be able to make an
appointment in the near future. The strategy review initiated earlier this year
has commenced and will be completed subsequent to the appointment of a Chief
Executive.

The UK economy continues to show significant signs of weakness and the Board
therefore remains cautious about the trading outlook for the Group over the
coming months. Despite this, the Group has a strong balance sheet, excellent
luxury brands and a depth of experience across the management team and is
therefore well placed to take advantage of future market opportunities.

J Walden

Chairman

26 August 2010

Independent Review Report

to H.R. Owen Plc

Introduction

We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30 June
2010, which comprises the consolidated income statement, consolidated statement
of other comprehensive income, consolidated balance sheet, consolidated cash
flow statement, consolidated statement of changes in shareholders' equity and
related notes. We have read the other information contained in the half-yearly
financial report and considered whether it contains any apparent misstatements
or material inconsistencies with the information in the condensed set of
financial statements.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with the Disclosure and Transparency
Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, "Interim Financial Reporting", as adopted by the European Union.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review. This report, including the conclusion, has been prepared for and only
for the company for the purpose of the Disclosure and Transparency Rules of the
Financial Services Authority and for no other purpose. We do not, in producing
this report, accept or assume responsibility for any other purpose or to any
other person to whom this report is shown or into whose hands it may come save
where expressly agreed by our prior consent in writing.

Scope of review

We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, `Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2010 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.

PricewaterhouseCoopers LLP

Chartered Accountants

Cambridge

26 August 2010

Notes:

 a. The maintenance and integrity of the H.R. Owen Plc web site is the
    responsibility of the directors; the work carried out by the auditors does
    not involve consideration of these matters and, accordingly, the auditors
    accept no responsibility for any changes that may have occurred to the
    interim report since it was initially presented on the web site.
   
 b. Legislation in the United Kingdom governing the preparation and
    dissemination of financial information may differ from legislation in other
    jurisdictions.
   
H.R. Owen Plc

Consolidated income statement
for the six months ended 30 June 2010

                                     Notes  Unaudited  Unaudited     Audited 
                                                                             
                                             6 months   6 months  Year ended 
                                                ended      ended  31December 
                                              30 June    30 June        2009 
                                                 2010       2009             
                                                                       £'000 
                                                £'000      £'000             
                                                                             
Continuing operations                                                        
                                                                             
Revenue                                  4     80,714     62,179     125,406 
                                                                             
Cost of sales                                 (67,687)   (52,098)   (104,035)
                                                                             
Gross profit                                   13,027     10,081      21,371 
                                                                             
Other income - pre-exceptional           5         21        836       1,118 
                                                                             
Exceptional gain from early              6          -      7,485       7,485 
surrender of                                                                 
                                                                             
property lease                                                               
                                                                             
Total other income                                 21      8,321       8,603 
                                                                             
Distribution costs                             (5,551)    (5,636)    (10,448)
                                                                             
Administrative expenses -                      (5,862)    (6,140)    (13,150)
pre-exceptional                                                              
                                                                             
Exceptional costs from Board             6       (743)         -           - 
restructuring                                                                
                                                                             
Total administrative expenses                  (6,605)    (6,140)    (13,150)
                                                                             
Operating profit                                  892      6,626       6,376 
                                                                             
Interest payable and similar charges             (456)      (436)       (839)
                                                                             
Interest receivable                               290        275         620 
                                                                             
Profit before taxation                            726      6,465       6,157 
                                                                             
Taxation charge                          7       (257)    (1,836)     (1,347)
                                                                             
Profit for the period                             469      4,629       4,810 
                                                                             
Earnings per share:                                                          
                                                                             
- Basic (pence per ordinary share)       3       2.0p      19.6p       20.4p 
                                                                             
- Diluted (pence per ordinary share)             1.9p      19.6p       19.5p 

The notes on pages 10 to 19 form an integral part of this condensed set of
financial statements.

H.R. Owen Plc

Consolidated statement of other comprehensive income

for the six months ended 30 June 2010

                                           Unaudited  Unaudited      Audited 
                                                                             
                                            6 months   6 months   Year ended   
                                               ended      ended  31 December 
                                             30 June    30 June         2009 
                                                2010       2009        £'000 
                                                                             
                                               £'000      £'000              
                                                                             
Profit for the period                            469      4,629        4,810 
                                                                             
Other comprehensive income                                                   
                                                                             
Actuarial losses recognised in defined          (518)         -         (183)
benefit pension scheme                                                       
                                                                             
Deferred taxation thereon                        145          -           51 
                                                                             
Tax benefit on special pension                                               
contributions                                                                
                                                                             
- deferred tax                                    (7)       (63)         (69)
                                                                             
- current tax                                      7         63           69 
                                                                             
Net losses recognised directly in equity        (373)         -         (132)
reserves                                                                     
                                                                             
Total comprehensive income for the period         96      4,629        4,678 

H.R. Owen Plc

Consolidated balance sheet

as at 30 June 2010

                                   Notes   Unaudited   Unaudited      Audited 
                                                                              
                                            6 months    6 months   Year ended 
                                               ended       ended  31 December  
                                             30 June     30 June         2009  
                                                2010        2009        £'000 
                                               £'000       £'000              
                                                                              
Assets                                                                        
                                                                              
Non-current assets                                                            
                                                                              
Goodwill                                       2,020       2,020        2,020 
                                                                              
Property, plant and equipment         10       6,170       5,931        5,533 
                                                                              
Deferred tax assets                              360         267          232 
                                                                              
                                               8,550       8,218        7,785 
                                                                              
                                                                              
                                                                              
Current assets                                                                
                                                                              
Inventories                                   23,577      18,816       26,073 
                                                                              
Trade and other receivables                    6,084       5,685        6,999 
                                                                              
Cash and cash equivalents                     11,482      11,032       15,072 
                                                                              
Total current assets                          41,143      35,533       48,144 
                                                                              
Liabilities                                                                   
                                                                              
Current liabilities                                                           
                                                                              
Financial liabilities -                      (14,665)    (11,405)     (13,439)
borrowings                                                                    
                                                                              
Current tax liabilities                         (249)       (426)          (9)
                                                                              
Trade and other payables                     (20,663)    (17,390)     (28,446)
                                                                              
Total current liabilities                    (35,577)    (29,221)     (41,894)
                                                                              
Net current assets                             5,566       6,312        6,250 
                                                                              
Non-current liabilities                                                       
                                                                              
Deferred tax liabilities                      (1,975)     (2,132)      (1,975)
                                                                              
Retirement benefit liability          14        (458)        (55)          (1)
                                                                              
Total non-current liabilities                 (2,433)     (2,187)      (1,976)
                                                                              
Net assets                                     11,683     12,343       12,059 
                                                                              
Shareholders' equity                                                          
                                                                              
Called-up share capital                9      11,806      11,806       11,806 
                                                                              
Profit and loss (deficit)/                      (123)        537          253 
reserve                                                                       
                                                                              
Total equity                                  11,683      12,343       12,059 

H.R. Owen Plc

Consolidated statement of changes in shareholders' equity

for the six months ended 30 June 2010

                                        Unaudited     Unaudited   Unaudited 
                                           Share      Profit and      Total 
                                                            loss            
                                         capital                     equity 
                                                        reserve/            
                                           £'000       (deficit)      £'000 
                                                                            
                                                          £'000             
                                                                            
At 1 January 2009                         11,806         (3,620)      8,186 
                                                                            
Net profit                                     -           4,629      4,629 
                                                                            
Corporation tax benefit on special                                          
                                                                            
pension contributions                                                       
                                                                            
- deferred tax                                 -            (63)        (63)
                                                                            
- current tax                                  -             63          63 
                                                                            
Total recognised in other                                 4,629             
comprehensive income                                                        
                                                                            
Dividends paid                                             (472)       (472)
                                                                            
At 1 July 2009                            11,806            537      12,343 
                                                                            
Net profit                                     -            181         181 
                                                                            
Actuarial losses recognised in                 -           (183)       (183)
defined                                                                     
                                                                            
benefit pension scheme                                                      
                                                                            
Deferred tax thereon                           -             51          51 
                                                                            
Corporation tax benefit on special                                          
                                                                            
pension contributions                                                       
                                                                            
- deferred tax                                 -             (6)         (6)
                                                                            
- current tax                                  -              6           6 
                                                                            
Total recognised in other                                    49             
comprehensive income                                                        
                                                                            
Dividends paid                                 -           (472)       (472)
                                                                            
Share options:                                                              
                                                                            
- value of employee services                   -            139         139 
                                                                            
At 1 January 2010                         11,806            253      12,059 
                                                                            
Net profit                                     -            469         469 
                                                                            
Actuarial losses recognised in                 -           (518)       (518)
defined                                                                     
                                                                            
benefit pension scheme                                                      
                                                                            
Deferred tax thereon                           -            145         145 
                                                                            
Corporation tax benefit on special                                          
                                                                            
pension contributions                                                       
                                                                            
- deferred tax                                 -             (7)         (7)
                                                                            
- current tax                                  -              7           7 
                                                                            
Total recognised in other                                    96             
comprehensive income                                                        
                                                                            
Dividends paid                                 -           (472)       (472)
                                                                            
At 30 June 2010                           11,806           (123)     11,683 

H.R. Owen Plc

Consolidated cash flow statement

for the six months ended 30 June 2010

                                    Notes    Unaudited  Unaudited    Audited 
                                                                             
                                              6 months   6 months        Year
                                                                       ended 
                                                 ended      ended          31
                                               30 June    30 June   December 
                                                  2010       2009       2009 
                                                                             
                                                £'000       £'000      £'000 
                                                                             
Cash flows from operating                                                    
activities                                                                   
                                                                             
Cash (absorbed by)/generated from       15      (1,495)    10,404     15,240 
operations                                                                   
                                                                             
Interest received                                  290        275        620 
                                                                             
Interest paid                                     (456)      (436)      (839)
                                                                             
Tax recovered                                        -        773        773 
                                                                             
Net cash (absorbed by)/generated                (1,661)    11,016     15,794 
from                                                                         
                                                                             
operating activities                                                         
                                                                             
                                                                             
                                                                             
Cash flows from investing                                                    
activities                                                                   
                                                                             
Proceeds from sale of property,                     -           -         15 
plant and equipment                                                          
                                                                             
Purchase of property, plant and                   (225)      (978)    (1,248)
equipment                                                                    
                                                                             
Purchase of business                   11       (1,244)         -          - 
                                                                             
Proceeds from sale of dealerships -                -          183        186 
discontinued operations                                                      
                                                                             
Net cash consumed by investing                  (1,469)      (795)    (1,047)
activities                                                                   
                                                                             
Cash flows from financing                                                    
activities                                                                   
                                                                             
Payments of dividends to                          (472)      (472)      (944)
shareholders                                                                 
                                                                             
Receipt/(repayment) of other loans                  12       (475)      (489)
                                                                             
Net cash consumed by financing                    (460)      (947)    (1,433)
activities                                                                   
                                                                             
(Decrease)/increase in cash and                 (3,590)     9,274     13,314 
cash equivalents                                                             
                                                                             
Cash and cash equivalents at 1                  15,072      1,758      1,758 
January                                                                      
                                                                             
Cash and cash equivalents at 30                 11,482     11,032     15,072 
June                                                                         

H.R. Owen Plc

Notes to the interim statement

for the six months ended 30 June 2010

1. Basis of preparation and statement of compliance

This condensed consolidated interim financial information does not comprise
statutory accounts within the meaning of section 434 of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2009 were approved by the
board of directors on 23 March 2010 and delivered to the Registrar of
Companies. The report of the auditors on those accounts was unqualified, did
not contain an emphasis of matter paragraph and did not contain any statement
under section 498 of the Companies Act 2006.

This condensed consolidated interim financial information has been reviewed,
not audited. The condensed consolidated interim financial information for the
six months ended 30 June 2010 has been prepared in accordance with the
Disclosure and Transparency Rules of the Financial Services Authority and with
International Accounting Standard ("IAS") 34 `Interim financial reporting' as
adopted by the European Union. The condensed consolidated financial information
should be read in conjunction with the annual financial statements for the year
ended 31 December 2009, which have been prepared in accordance with
International Financial Reporting Standards ("IFRSs") as adopted by the
European Union.

Company details

The Company's registered address is Melton Court, Old Brompton Road, London SW7
3TD. The Company is a public limited company and is incorporated and domiciled
in England and Wales. The Company's registration number at Companies House is
1753134.

Accounting policies

Except as described below the principal accounting policies used in preparing
this financial information are consistent with those of the annual financial
statements for the year ended 31 December 2009, as described in the Group's
Annual Report & Accounts on pages 32 to 36 of those annual financial
statements.

Taxes on income in the interim period are accrued using the tax rate that would
be applicable to expected total annual earnings.

The following new standards and amendments to standards are mandatory for the
first time for the financial year beginning 1 January 2010:

 a. IFRS 3 (revised), `Business combinations', and consequential amendments to
    IAS 27, `Consolidated and separate financial statements', IAS 28,
    `Investments in associates', and IAS 31, `Interests in joint ventures', are
    effective prospectively to business combinations for which the acquisition
    date is on or after the beginning of the first annual reporting period
    beginning on or after 1 July 2009. The impact of adopting IFRS 3 (Business
    Combinations) is not material to the financial statements but has resulted
    in costs incurred on acquisitions being expensed. There has been no impact
    of IAS 27 (revised), IAS 28 (revised) or IAS 31 (revised) on the current
    period.
   
The following standards, amendments and interpretations to existing standards
are effective in 2010 but are not relevant to the Group:

 a. IFRIC 12, `Service Concession arrangements', effective for annual periods
    beginning on or after 30 March 2009.
   
 b. IFRIC 16, `Hedges of a net investment in a foreign operation', effective
    for annual periods beginning on or after 1 July 2009.
   
 c. IFRIC 17, `Distributions of non-cash assets to owners', effective for
    annual periods beginning on or after 1 July 2009.
   
 d. IFRIC 18, `Transfers of assets from customers', effective for transfer of
    assets received on or after 1 July 2009.
   
 e. `Additional exemptions for first-time adopters' (Amendment to IFRS 1),
    effective for annual periods beginning on or after 1 January 2010.
   
 f. Improvements to International Financial Reporting Standards 2009. The
    effective dates vary standard by standard but most are effective 1 January
    2010.
   
The following new standards, new interpretations and amendments to standards
and interpretations have been issued but are not effective for the financial
year beginning 1 January 2010 and have not been early adopted:

 a. IFRS 9, `Financial instruments', effective for annual periods beginning on
    or after 1 January 2013.
   
 b. `Classification of rights issues' (Amendment to IAS 32), effective for
    annual periods beginning on or after 1 February 2010.
   
 c. `Prepayments of a minimum funding requirement' (Amendments to IFRIC 14),
    effective for annual periods beginning on or after 1 January 2011.
   
IFRIC 19, `Extinguishing financial liabilities with equity instruments',
effective for annual periods beginning on or after 1 July 2010.

Principal risks and uncertainties

The management of the business and the execution of the Group's strategy are
subject to a number of risks. These risks are formally reviewed by the Board
and, where appropriate, monitored and mitigated by suitable processes.

Any business associated with the sale of cars is of course vulnerable to
outside factors, both political and economic. Interest rate changes, consumer
confidence, increasing fuel costs, congestion charging, and broader
environmental concerns could all have an impact on a consumer's decision
whether or not to buy a particular new or used car.

Other risks relate to the close contractual relationships the Group has with a
number of vehicle manufacturers, and in particular its reliance on their
continuing to supply a suitable mix of popular vehicle models at competitive
prices. If this supply ceases, is restricted or over-supplied for any reason,
then clearly the impact on the Group's performance, especially in relation to
new cars, could have an adverse effect on profitability.

Possible future changes to the legislative framework governing the sale of new
cars in the UK, and the competition provided by the growing number of
internet-based brokers and sellers, also pose risks to the Group. In the area
of aftersales, any improvement in the reliability and durability of cars will
reduce their need for servicing and repairs, and the threat of increased
competition from the independent service and repair sector is now a permanent
feature of the market. Movements in future discount rates, as a result of the
Bank of England's programme of quantitative easing and other factors, may
impact upon the financial position of the Group's defined benefit pension
scheme

Going concern

The Group's business activities, together with the factors likely to affect its
future development, performance and position are set out in the Chairman's
Statement on pages 2 to 3. Details of the Group's liquidity position and
borrowing facilities are described in the Group's Annual Report & Accounts in
Note 16 of those annual financial statements, and the Group's objectives,
policies and processes for managing its capital are set out in the Directors'
Report. Its financial risk management objectives, details of its financial
instruments, and its exposures to credit risk and liquidity risk are set out in
Note 18 of those annual financial statements. The directors believe that the
Group remains well placed to manage its business risks successfully despite the
uncertain economic outlook.

Therefore, at the time of preparation of this half-yearly financial report,
after making appropriate enquiries, the directors have a reasonable expectation
that the Group has adequate resources to continue operating for the foreseeable
future. For this reason they continue to adopt the going concern basis in
preparing the Group's half-yearly financial report.

2. Dividends

On 28 May 2010 the final dividend declared for the year ended 31 December 2009
of 2.0 pence per ordinary share, amounting to £472,000, was paid to
shareholders. An interim dividend of 2.0 pence per ordinary share (2009: 2.0
pence per ordinary share) has been declared on 26 August 2010 for the six
months ended 30 June 2010 and is expected to be paid on 22 October 2010 to
shareholders on the register at the close of business on 24 September 2010.
This interim dividend has not been recognised as a liability in this interim
financial information but will be recognised in shareholders' equity in the
annual financial statements for the year ending 31 December 2010.

3. Earnings per share

The calculation of earnings per share is based on the profit after taxation of
£469,000 (2009: £4,629,000) and the weighted average number of shares in issue
during the period of 23,611,742 (2009: 23,611,742).

Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the period. For diluted earnings per share, the weighted
average number of ordinary shares in issue is adjusted to assume conversion of
all dilutive potential ordinary shares. The Group has a single class of
dilutive potential ordinary shares being share options granted to employees. At
31 December 2009 and at 30 June 2010, the performance criteria for the vesting
of these options had been met. At 31 December 2009 there were an additional
1,073,330 ordinary shares which were exercisable whilst at 30 June 2010 there
were 528,887 ordinary shares which were exercisable, the reduction in the
period arising from the lapse of share options for Mr Lancaster. Accordingly,
the fully diluted earnings per share for 2010 was 1.9 pence per ordinary share
(year ended 31 December 2009: 19.5 pence per ordinary share).

4. Segmental reporting

The chief operating decision-maker has been identified as the board of
directors. The Board reviews the Group's internal reporting in order to assess
performance and allocate resources. Management has determined the operating
segments based on these reports.

The Board considers the business from both a product and manufacturer
perspective. From a product perspective, management assesses the performance of
car sales (both new and used) and aftersales (including servicing, parts and
bodyshop).

The Board assesses the performance of the operating segments based on a measure
of adjusted operating profit, defined as gross profit less directly
attributable expenses. This measurement basis excludes the effects of
non-recurring income and expenditure from the operating segments, such as
exceptional gains on lease disposals and redundancy costs. Interest income and
expense are not included in the result for each operating segment that is
reviewed by the Board. Other information provided, except as noted below, to
the Board is measured in a manner consistent with that in the financial
statements.

For 2010, the Group was organised into two main business segments: the sale of
new and used motor vehicles and an aftersales operation consisting of the
servicing of vehicles, sales of parts and bodyshop repairs. Unallocated costs
represents shared property costs and depreciation of fixed assets in addition
to background support services such as finance, IT, marketing and corporate
expenses which cannot be directly attributed to either business segment.

The Group operates from a single geographical area, namely the United Kingdom.

Six months ended                       Sales  Aftersales  Unallocated    Group 
                                                                               
30 June 2010                           £'000       £'000        £'000    £'000 
                                                                               
Revenue - external customers          68,061      12,653            -   80,714 
                                                                               
Segment result                         4,758       2,729       (5,852)   1,635 
                                                                               
Exceptional costs of Board                                                (743)
restructuring                                                                  
                                                                               
Interest expense                                                          (456)
                                                                               
Interest income                                                            290 
                                                                               
Profit before tax                                                          726 
                                                                               
Taxation                                                                  (257)
                                                                               
Profit for the period                                                      469 
                                                                               
Inventories                           19,700       3,877            -   23,577 
                                                                               
Other segment assets                     536       1,993       15,037   17,566 
                                                                               
Unallocated assets                                                             
                                                                               
- property, plant and equipment                                 6,169    6,169 
                                                                               
- intangible assets                                             2,020    2,020 
                                                                               
- tax                                                             361      361 
                                                                               
Total assets                                                            49,693 
                                                                               
Inventory stocking loans            (13,555)     (1,110)            -  (14,665)
                                                                               
Other segment liabilities           (13,474)       (882)      (6,765)  (21,121)
                                                                               
Unallocated liabilities                                                        
                                                                               
- Tax and other non-current                                    (2,224)  (2,224)
liabilities                                                                    
                                                                               
Total liabilities                                                      (38,010)
                                                                               
Net assets                                                              11,683 

The segmental loss of £5,852,000 which cannot be allocated to either Car Sales
or Aftersales segments includes depreciation charges of £578,000. Similarly,
Unallocated property, plant and equipment of £6,169,000 includes capital
expenditure of £1,224,000.

Six months ended                       Sales  Aftersales  Unallocated    Group 
                                                                               
30 June 2009                           £'000       £'000        £'000    £'000 
                                                                               
Revenue - external customers          49,997      12,182            -   62,179 
                                                                               
Segment result                         2,169       2,347       (5,375)    (859)
                                                                               
Exceptional gain from early                                     7,485    7,485 
surrender of lease                                                             
                                                                               
Interest expense                                                          (436)
                                                                               
Interest income                                                            275 
                                                                               
Profit before tax                                                        6,465 
                                                                               
Taxation                                                                (1,836)
                                                                               
Profit for the period                                                    4,629 
                                                                               
Inventories                           15,241       3,575            -   18,816 
                                                                               
Other segment assets                     444       1,495       14,778   16,717 
                                                                               
Unallocated assets                                                             
                                                                               
- property, plant and equipment                                 5,931    5,931 
                                                                               
- intangible assets                                             2,020    2,020 
                                                                               
- tax                                                             267      267 
                                                                               
Total assets                                                            43,751 
                                                                               
Inventory stocking loans            (10,317)     (1,088)            -  (11,405)
                                                                               
Other segment liabilities           (10,035)       (565)      (6,845)  (17,445)
                                                                               
Unallocated liabilities                                                        
                                                                               
- Tax and other non-current                                    (2,558)  (2,558)
liabilities                                                                    
                                                                               
Total liabilities                                                      (31,408)
                                                                               
Net assets                                                              12,343 

The segmental loss of £5,375,000 which cannot be allocated to either Car Sales
or Aftersales segments includes depreciation charges of £561,000. Unallocated
property, plant and equipment of £5,931,000 includes capital expenditure of £
978,000.

Year ended                            Sales  Aftersales  Unallocated    Group 
                                                                              
31 December 2009                      £'000       £'000        £'000    £'000 
                                                                              
Continuing operations                                                         
                                                                              
Revenue - external customers        101,298      24,108            -  125,406 
                                                                              
Segment result                        5,709       5,087      (11,905)  (1,109)
                                                                              
Exceptional gain from early                                             7,485 
surrender of lease                                                            
                                                                              
Interest expense                                                         (839)
                                                                              
Interest income                                                           620 
                                                                              
Profit before tax                                                       6,157 
                                                                              
Taxation                                                               (1,347)
                                                                              
Profit for the year from continuing                                     4,810 
operations                                                                    
                                                                              
Inventories                          23,590       2,483            -   26,073 
                                                                              
Other segment assets                  1,417       2,256       18,398   22,071 
                                                                              
Unallocated assets                                                            
                                                                              
- property, plant and equipment                                5,533    5,533 
                                                                              
- intangible assets                                            2,020    2,020 
                                                                              
- tax                                                            232      232 
                                                                              
Total assets                                                           55,929 
                                                                              
Inventory stocking loans            (13,080)       (359)           -  (13,439)
                                                                              
Other segment liabilities           (18,187)       (198)     (10,061) (28,446)
                                                                              
Unallocated liabilities                                                       
                                                                              
- Tax and other non-current                                   (1,985)  (1,985)
liabilities                                                                   
                                                                              
Total liabilities                                                     (43,870)
                                                                              
Net assets                                                             12,059 

The segmental loss of £11,905,000 which cannot be allocated to either Car Sales
or Aftersales segments includes depreciation charges of £1,226,000. Unallocated
property, plant and equipment of £5,533,000 includes capital expenditure of £
1,248,000.

5. Other income

                                          Unaudited   Unaudited     Audited 
                                                                            
                                           6 months    6 months  Year ended 
                                                                            
                                              ended       ended           31
                                                                   December 
                                            30 June     30 June             
                                                                       2009 
                                               2010        2009             
                                                                      £'000 
                                             £'000        £'000             
                                                                            
Development gain on leasehold                     -         815        820  
properties                                                                  
                                                                            
Pension curtailment gain                          -           -         256 
                                                                            
Other miscellaneous income                       21          21          42 
                                                                            
Total other income                               21         836       1,118 

In the prior year, in March 2009, the Group realised a development gain on two
property leases relating to adjoining sites at Regent's Park in London, which
had been previously used as an aftersales facility. Under the terms of the
leases, the Group surrendered the leases early in return for a payment, in
cash, of £900,000, of which £65,000 was due to a third party. In addition the
Group incurred legal and other professional costs of £15,000. As a result of
the closure of the site, nine employees chose not to transfer to other sites
and were made redundant resulting in a charge to administrative expenses for
the Group of £105,000. Property related costs for the premises such as rent,
rates and security from 1 January 2009 to the end of the lease on 7 March 2009
and other costs associated with the closure of the site and its return to the
landlord in accordance with the terms of the leases of £410,000 have been
charged against administrative expenses.

6. Exceptional income/(costs)

                                          Unaudited   Unaudited     Audited 
                                                                            
                                           6 months    6 months  Year ended 
                                                                            
                                              ended       ended           31
                                                                   December 
                                            30 June     30 June             
                                                                       2009 
                                               2010        2009             
                                                                      £'000 
                                             £'000        £'000             
                                                                            
Exceptional costs of Board restructuring       (743)          -           - 
                                                                            
Exceptional gain from early surrender of          -       7,485       7,485 
lease                                                                       

In May 2010 the Company announced the departure of its Chief Executive, Mr N
Lancaster, and under the terms of a Compromise Agreement, Mr Lancaster received
total compensation of £700,000. The total cost to the Company of the departure
arrangements, including employers' National Insurance, was £743,000 which was
settled in cash.

In the prior year, in February 2009, Ipcress exercised their option for the
early surrender of the Wandsworth lease and, as a consequence, Jack Barclay
received a cash consideration of £7,500,000. The Group incurred additional
legal and other professional fees of £15,000 and, accordingly, the Group
recognised an exceptional gain of £7,485,000 in the year. This gain, and the
related gain recognised in 2008, has been categorised as Other Income, although
disclosed separately, within the financial statements. Under the terms of the
agreement, the Group is required to vacate its Wandsworth premises no later
than 25 March 2012 but had the option to move to alternative premises, supplied
by Ipcress free of rent, for a further two years to 25 March 2014. If the Group
chose not take up this offer of alternative premises it would receive an
additional cash consideration of £1,000,000, payable on the date that the Group
confirmed in writing to Ipcress that the offer of alternative premises would
not be taken up. Subsequent to the balance sheet date, in July 2010, the
Company provided this notice to Ipcress Limited and claimed the remaining £1
million of consideration.

7. Income tax

The income tax charge is recognised based on management's best estimate of the
weighted average annual corporation tax rate expected for the full financial
year. The estimated average annual tax rate used for the year to 31 December
2010 is 33.1% (the estimated tax rate for the six months ended 30 June 2009 was
28.4%).

A number of changes to the UK corporation tax system were announced in the June
2010 Budget Statement. The Finance (No 2) Act 2010, which was substantively
enacted on 20 July 2010, includes legislation reducing the main rate of
corporation tax from 28% to 27% from 1 April 2011. Further reductions to the
main rate are proposed to reduce the rate by 1% per annum to 24% by 1 April
2014. The changes had not been substantively enacted at the balance sheet date
and, therefore, are not included in these interim financial statements. The
impact of the proposed changes to the UK corporation tax rates are not material
to the deferred tax balances.

8. Discontinued businesses

In the prior year, the Group completed the sale of its Volvo Division to its
divisional management with effect from 2 January 2009 for a cash consideration
of £183,000. Due to the timing of this disposal, the comparative figures in the
income statement for the six months ended 30 June 2009 do not include any
income or expenses arising from discontinued operations.

9. Shares and share options

At 30 June 2010 the issued share capital of the Company was 23,611,742 ordinary
shares of 50 pence. No new shares were issued in the period. The Company has
cumulative grants of 528,887 share options to directors and certain senior
executives as at 30 June 2010 for which the performance target for these share
options to become exercisable has been met. No new options have been granted
during the period under review whilst 544,443 share options lapsed during the
period. The comparative figures for the year ended 31 December 2009 include an
accounting charge of £139,000 taken against results in respect of the grant of
these options.

10. Fixed asset movements

In the six month period under review, the Group acquired fixed assets of £
1,224,000 (2009: £978,000). Included in this amount is capital expenditure in
respect of improvements to leasehold premises in the period which amounted to £
883,000 (2009: £875,000). Depreciation charges for the six months ended 30 June
2010 were £578,000 (2009: £561,000). The Group disposed of fixed assets with a
net book value of £9,000 (2009: £154,000).

11. Acquisition of business

With effect from 29 June 2010 the Group acquired the assets and trade of an
Audi Aftersales business based in Wandsworth, London from The Dutton-Forshaw
Motor Company Limited for a cash consideration of £1,244,000. This payment did
not include any amount in respect of goodwill. Acquisition costs of £35,000
have been recognised in the income statement in the period.

Details of the assets and liabilities purchased as a result of this transaction
are shown below.

Net book value and fair value of assets purchased during 2010:        Assets 
                                                                             
                                                                   purchased 
                                                                             
                                                                       £'000 
                                                                             
Intangible fixed assets                                                    - 
                                                                             
Property, plant and equipment                                          1,000 
                                                                             
Inventories                                                              149 
                                                                             
Receivables - prepayments at fair value                                   95 
                                                                             
Net book value of purchased assets                                     1,244 
                                                                             
Consideration paid                                                     1,244 
                                                                             
Goodwill arising on acquisition                                            - 

The acquired business contributed revenues of £5,000 and a net trading loss of
£7,000 to the Group for the period from 29 June to 30 June 2010. The Group does
not have access to the complete trading results of the business for the
pre-acquisition period to 28 June 2010 and it is therefore impracticable to
disclose revenue and trading results for that period.

12. Related-party transactions

H.R. Owen Plc operates a Bentley franchise for new and used car sales, through
its Jack Barclay Limited subsidiary, from its Berkeley Square showroom in
London. The Group also operates two Bentley aftersales franchises from its
service and bodyshop facilities at Wandsworth and North Acton in London.
Bentley Motors Limited holds shares in H.R. Owen Plc equivalent to 27.9% of the
Company's issued share capital and has therefore been deemed to be a related
party. During the six months ended 30 June 2010, the Group purchased vehicles
and parts from Bentley Motors Limited totalling £15.8 million (2009: £10.2
million). At 30 June 2010 an amount of £0.7 million (31 December 2009: £0.4
million) was owed by the Group to Bentley Motors Limited.

As part of his departure arrangements in May 2010 Mr Lancaster purchased two
cars from the Company for £39,929. The values for the cars concerned were
estimated by the Company to be their open market value at the time of their
sale.

13. Post Balance Sheet events

On 20 July 2010, the Group appointed Mr Martin as a non-executive director of
H.R. Owen Plc.

As outlined in Note 6, on 21 July 2010, Jack Barclay Limited provided notice to
Ipcress under the agreement for the early surrender of its property lease at
Nine Elms that it would not require the use of the alternative premises and
accordingly claimed the remaining £1 million of consideration.

14. Retirement benefit liability

The Group operates the H.R. Owen London Defined Benefit Pension Scheme, a
defined benefit pension scheme, which operates on a pre-funded basis. The
funding policy is to contribute such variable amounts as, on the advice of the
Scheme's actuary, will achieve a 100% funding level on a projected salary
basis. Actuarial assessments covering expense and contributions are carried out
by independent qualified actuaries, with the last such review being carried out
as at 5 April 2007. The next actuarial assessment is currently being carried
out with an effective date of 5 April 2010. Preliminary results of this
actuarial assessment are expected to be available before year-end and will be
incorporated into the full year results for the year ending 31 December 2010.

The Scheme currently operates in a deficit position and, as a result, H.R. Owen
Plc agreed with the Scheme's trustees that the Group would make an additional
annual contribution of £200,000 in May 2007, and in May of each of the
subsequent two years. To date all three payments, each of £200,000, have been
made to the Scheme. A further payment, also of £200,000, will be made on or
before 31 December 2010 if the current actuarial assessment being carried out
indicates that the Scheme is still operating in a deficit position. H.R. Owen
Plc also makes additional monthly contributions of £4,000 to the Scheme, with
these additional monthly contributions continuing whilst the Scheme remains in
a deficit position.

In the prior year, in January 2009 the Group sold its Volvo London operations
to its divisional management. As a result of the transfer of employees to the
Purchaser, and the subsequent redundancy of certain employees who chose not to
transfer to the Purchaser, twenty-two of the forty-three active members of the
Group's defined benefit pension scheme became deferred members. The change of
status of these members resulted in a curtailment gain arising of £256,000
which was credited to Other income in the results for the year ended 31
December 2009.

15. Cash flows from operating activities

                                         Unaudited    Unaudited     Audited 
                                                                            
                                          6 months     6 months  Year ended 
                                                                            
                                             ended        ended           31
                                                                   December 
                                           30 June      30 June             
                                                                       2009 
                                              2010         2009             
                                                                      £'000 
                                             £'000        £'000             
                                                                            
Profit for the period from continuing          469        4,629       4,810 
operations                                                                  
                                                                            
Adjustments for:                                                            
                                                                            
Tax charge                                     257        1,836       1,347 
                                                                            
Depreciation charge                            578          561       1,226 
                                                                            
Loss on disposal of property, plant              9           45          34 
and equipment                                                               
                                                                            
Share option charge                              -            -         139 
                                                                            
Net interest expense                           166          161         219 
                                                                            
Changes in working capital (excluding                                       
the                                                                         
                                                                            
effects of discontinued operations):                                        
                                                                            
Decrease in inventories                      2,156        4,063          85 
                                                                            
Decrease in trade and other                  1,010        1,921         604 
receivables                                                                 
                                                                            
(Decrease)/increase in payables             (6,139)      (2,573)      6,980 
                                                                            
Excess of pension contributions over            (1)        (239)       (204)
current                                                                     
                                                                            
service cost                                                                
                                                                            
Total cash (absorbed by)/generated          (1,495)      10,404      15,240 
from operations                                                             

16. Seasonality

The Group's sales of new cars are subject to significant monthly fluctuations
as a result of the bi-annual registration plate change which occurs in the
months of March and September in the United Kingdom. As a result of these
fluctuations, the Group has historically made the majority of its revenue in
the first six months of the year and this trend is expected to continue in
this, and future, years.

17. Responsibility statement

The directors confirm that this condensed consolidated interim financial
information has been prepared in accordance with IAS 34 as adopted by the
European Union and that the interim management report includes a fair review of
the information required by the Disclosure and Transparency Rules ("DTR") 4.2.7
and DTR 4.2.8, namely:

  * an indication of important events that have occurred during the first six
    months and their impact on the condensed set of financial statements, and a
    description of the principal risks and uncertainties for the remaining six
    months of the financial year; and
   
  * material related-party transactions in the first six months and any
    material changes in the related-party transactions described in the last
    annual report.
   
The directors of H.R. Owen Plc are listed in the Annual Report & Accounts for
the year ended 31 December 2009. Since the publication of the 2009 Annual
Report & Accounts Mr Lancaster has resigned as Chief Executive and Mr Pajares,
Mr Smith and Mr Mason have resigned as non-executive directors. On 20 July 2010
Mr Martin joined the Board as a non-executive director.

By order of the Board:

J Walden      M Warren
Chairman      Finance Director
26 August 2010