Final Results

Harrier Group PLC
27 April 2006


                               HARRIER GROUP PLC
                      
                                 FINAL RESULTS
                      FOR THE YEAR ENDED 31 DECEMBER 2005





CHAIRMAN'S STATEMENT





During the year ended 31 December 2005 the Harrier Group plc disposed of its
operating subsidiaries for the sum of £4.5 million, which completed on 10 March
2005.


The Group's turnover to the date of sale was £1.36 million and the operating
loss was £249,000.


The disposal of the subsidiaries means that at 31 December 2005 your company is
a cash shell and the Board have been seeking, with their advisors, a suitable
business in which to invest. In reporting the profit and loss for the year to 31
December 2005 the company is no longer controlling a group and the results are
reported as a single company, whereas last year's profit and loss account was
the consolidated statement for the group.


As a result of this change of format, some of the proceeds of the sale of the
subsidiaries which were used to repay inter group debt, fell into the previous
years accounts of Harrier Group plc. In order to better explain the effective
result for the year to 31 December 2005 to shareholders we have provided a
pro-forma profit and loss account on a 'consolidated' basis as detailed in this
announcement and would draw your attention to the following:


   •Whilst the interim results to 30 June 2005 were prepared on a
    consolidated basis, due to the expectation that a group would be in
    existence at 31 December 2005, it is inappropriate to prepare the full years
    results on a consolidated basis as the group did not exist at 31 December
    2005.


   •The gain on release of the intra group debt provision was recognised in
    the parent company's own accounts during the year ended 31 December 2004 as
    the effect on the previous provisions against the intercompany debt was an
    adjusting event.


   •Shareholders may initially be surprised by the reported result for the
    full year accounts to 31 December 2005 having previously seen unaudited
    consolidated figures at the interim stage reporting a profit of £3.2m.


   •The difference is however due to technical accounting differences in the
    treatment of consolidated accounts and individual company accounts. As such
    the consolidated and unconsolidated figures do not give a meaningful
    comparison.


   •The difference between the reported profits on disposal at the interim
    and full year is essentially the timing difference on the recognition of the
    intra group loan provision release of £3.6m in the consolidated and
    individual company accounts.


The pro-forma consolidated profit and loss account shows an overall profit on
sale of the operating subsidiaries of £3.2 million creating a profit before
interest of £2.9 million, after net interest receivable of £177,000, and the
profit on ordinary activities before taxation was £3.09 million. Year end bank
balances were £4,594,842.


Harrier Group plc is now an investment company and has continued to evaluate
potential investment opportunities, focusing on the UK services, information
technology and financial sectors.


We thank all shareholders for their patience and support during this process.



A L R MORTON

Chairman

26 April 2006











PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2005



                                                             2005         2004
                                                                £            £

Turnover                                                  333,062    1,722,373

Cost of sales                                                   -            -
                                                          ---------   ----------

Gross Profit                                              333,062    1,722,373

Administrative expenses                                  (468,111)  (1,683,399)
                                                          ---------   ----------

Operating (loss)/profit                                  (135,049)      38,974

Other Income                                               72,002            -
                                                          ---------   ----------

Operating (loss)/profit before exceptional items          (63,047)      38,974

Fees relating to an abortive merger                             -      (90,059)
Release of provision against intra-group debt                   -    3,693,145
Loss on sale of investment in subsidiary undertakings    (522,384)           -
                                                          ---------   ----------

(Loss)/profit before interest                            (585,431)   3,642,060

Interest receivable                                       177,457       51,348

Interest payable                                              (20)        (267)
                                                          ---------   ----------

(Loss)/profit on ordinary activities before taxation     (407,994)   3,693,141

Taxation                                                        -            -
                                                          ---------   ----------
                                                          =========   ==========
(Loss)/profit on ordinary                                (407,994)   3,693,141
activities after taxation
                                                          =========   ==========

Basic (loss)/profit per share                            £(0.0133)     £0.1261

Diluted (loss)/profit per                                £(0.0130)     £0.1149
share




COMPANY BALANCE SHEET

AS AT 31 DECEMBER 2005



                                          2005                            2004

                              £              £               £               £

Fixed assets

Tangible assets                              -                         302,569

Investments                                  -                       1,074,741
                                        --------                        --------

                                             -                       1,377,310

Current assets

Debtors                   4,466                      3,448,422

Cash at bank and in   4,594,842                      1,434,018
hand                    ---------                       --------


                      4,599,308                      4,882,440

Creditors: Amounts
falling

Due within one year     (35,532)                    (1,401,404)
                        ---------                       --------



Net current assets                   4,563,776                       3,481,036
                                        --------                        --------

Total assets less
current

Liabilities                          4,563,776                       4,858,346
                                        ========                        ========




Capital and reserves

Called up share                        315,294                         293,103
capital

Share premium                           91,233                               -
account

Profit and loss                      4,157,249                       4,565,243
account                                 --------                        --------


Equity shareholders'                 4,563,776                       4,858,346
funds                                   ========                        ========





Approved by the Board on 26 April 2006

and signed on its behalf by






                        ..........................................

                        A L R Morton


COMPANY CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2005



                                            2005                          2004

                               £               £              £              £

Net cash inflow

from operating                         2,041,286                       202,965
activities


Returns on
investments
and servicing of
finance
Interest received        177,457                         51,348

Interest paid                (20)                          (267)
                          --------                      ---------
                                         177,437                        51,081


Capital expenditure
and

financial investment

Sales proceeds from
sale of                4,500,000                              -
subsidiaries

Proceeds used in
repayment of          (3,589,780)                             -
intercompany debt

Professional fees on     (73,495)                             -
sale

Purchases of fixed        (8,048)                      (114,021)
assets

Sales of tangible              -                          2,255
fixed assets              --------                      ---------


Net cash inflow/
(outflow) from                           828,677                      (111,766)
investing activities                     ---------                     ---------



Financing

Issue of ordinary
share

capital                  113,424                          9,573
                          --------                      ---------
                                         113,424                         9,573
                                         ---------                     ---------

Increase in cash                       3,160,824                       151,853
                                         =========                     =========

Reconciliation of
net cash

Flow to movement in
net

funds


Increase in cash

in the year                            3,160,824                       151,853
                                         ---------                     ---------

Movement in net
funds in

the year                               3,160,824                       151,853


Net funds at start                     1,434,018                     1,282,165
of year                                  ---------                     ---------


Net funds at end of                    4,594,842                     1,434,018
year                                     =========                     =========

NOTES TO THE FINANCIAL INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2005

1          The preliminary announcement of results has been prepared under the historical cost convention in accordance 
with the Company's accounting policies for the year ended 31 December 2005.

2          The above financial information does not constitute statutory accounts as defined in Section 240 of the 
Companies Act 1985. The summarised balance sheet at 31 December 2005 and the summarised profit and loss account and 
cash flow statement for the year then ended have been extracted from the Group's financial statements. These financial 
statements have not yet been delivered to the Registrar of Companies.

3          The calculation of basic and diluted loss per ordinary share of 1p each is based on the loss on ordinary 
activities after taxation and minority interests of (£407,994) divided by the weighted average number of ordinary 
shares of 1p each 30,635754 (basic) and 31,310,103 (diluted).

4         Reconciliation of (loss)/profit to net               2005       2004
cash inflow from                                                  £          £
operating activities

Operating loss before exceptional items               (63,047)         (51,085)
Depreciation                                           26,249          178,588
Loss on sale of fixed assets                                -            6,698
Decrease /(Increase) in debtors                     3,443,956       (3,240,930)
Inter company debtor written back on sale of
subsidiaries                                                -        3,693,145
(Decrease)/Increase in creditors                   (1,365,872)        (383,451)
                                                      ---------       ----------

Net cash inflow from operating activities           2,041,286          202,965
                                                      =========       ==========

5          All of the Group's activities are classed as discontinuing due to the sale of the subsidiary trading 
companies on the 10th March 2005. There are no gains and losses other than those disclosed in the Consolidated Profit 
and Loss Account.

6          No dividends are proposed or were paid during the period.

7          The Report and Accounts together with a Notice of Annual General Meeting which will contain a summary of the 
Company's investment strategy will be sent to shareholders shortly. Further copies may be obtained on application to 
the Company's Registered Office, (Lion House, Red Lion Street London WC1R 4GB) or will be available for collection at 
the same address for a period of 1 month from the date of publication.



UNAUDITED PRO-FORMA CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2005



The following is an unaudited pro-forma consolidated profit and loss account
prepared on the basis that the company continued to prepare consolidated
accounts and, as such, the release of provision for intra-group debt had been
deferred until 2005 to match against the sales proceeds.

                                               2005                       2004
                             Continuing  Discontinued      Total             £
                             Operations
                                    £      Operations          £
                                                  £

Turnover                            -     1,358,380    1,358,380    11,214,119

Cost of sales                       -      (728,319)    (728,319)   (6,682,404)
                               --------    ----------    ---------     ---------

Gross Profit                        -       630,061      630,061     4,531,715

Administrative expenses      (466,960)     (495,376)    (962,336)   (4,616,405)
                               --------    ----------    ---------     ---------

Operating (loss)/profit      (466,960)      134,485     (332,475)      (84,690)
Before exceptional costs

Other Income                   72,002                     72,002
                               --------    ----------    ---------     ---------
Exceptional fees relating           -             -            -       (90,058)
to an abortive merger
                               --------    ----------    ---------     ---------

Operating (loss)/profit      (394,958)      134,485     (260,473)     (174,748)

Profit on sale of
discontinued operations     3,170,761             -    3,170,761             -
                               --------    ----------    ---------     ---------

Profit/(loss) before
interest                    2,775,803       134,485    2,910,288      (174,748)
                               ========    ==========    =========     =========

Interest receivable                                      177,457        51,348

Interest payable                                          (1,618)         (778)
                                    ---           ---    ---------     ---------

Profit/(Loss) on ordinary
activities before taxation                             3,086,127      (124,178)
                                                         =========     =========





UNAUDITED PRO-FORMA CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2005



Summary


In relation to the unaudited pro-forma consolidated profit and loss account the
following points are relevant:


   •Whilst the interim results to 30 June 2005 were prepared on a
    consolidated basis, due to the expectation that a group would be in
    existence at 31 December 2005, it is inappropriate to prepare the full years
    results on a consolidated basis as the group did not exist at 31 December
    2005.


   •The gain on release of the intra group debt provision was recognised in
    the parent company's own accounts during the year ended 31 December 2004 as
    the effect on the previous provisions against the intercompany debt was an
    adjusting event.


   •Shareholders may initially be surprised by the reported result for the
    full year accounts to 31 December 2005 having previously seen unaudited
    consolidated figures at the interim stage reporting a profit of £3.2m.


   •The difference is however due to technical accounting differences in the
    treatment of consolidated accounts and individual company accounts. As such
    the consolidated and unconsolidated figures do not give a meaningful
    comparison.


   •The difference between the reported profits on disposal at the interim
    and full year is essentially the timing difference on the recognition of the
    intra group loan provision release of £3.6m in the consolidated and
    individual company accounts.




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