Preliminary Results

ComProp Limited
10 June 2004

                  ComProp Limited ('ComProp' or 'the Company')

              Preliminary Results for the year ended 31 March 2004





Chairman's Report



During the last twelve months we have continued to see the benefits of our
property development and investment strategy.



Two major developments were completed on budget and on time.



B & Q Supercentre

The development was finished with practical completion of the building contract
in August 2003; only nine months after the contractors took possession of the
site. Following which, B & Q entered into a twenty five year lease and commenced
trading on the site in September 2003. We have received much praise for the
efficiency of the store and its contemporary design from the tenant and their
customers. The unit was constructed by Guernsey contractors, J W Rihoy & Son,
who were awarded the contract after a tendering process.



This property is already trading well and, as suggested previously, it provides
excellent retail synergy with our unit occupied by Checkers, part of the
C.I.Traders Group.



Generali House

During construction of the B & Q Supercentre, we started the development of an
office building in the centre of St Peter Port adjacent to the Old Government
House Hotel. This development was completed on 31 March of this year only
forty-six weeks from the start of the contract. Again we utilised local
contractors, R G Falla Limited, who carried out this development on a difficult
town centre site.



The design is again contemporary but is sympathetic to the surroundings which
include the former Victorian Town Hospital now occupied by Guernsey Police.
Local architects BAS are to be commended for their innovative design and we
expect the scheme to be recognised in future architectural awards. We believe
the building and its exceptional easterly views of the harbour and Islands
arguably make this the best office of this size in the centre of St Peter Port.
The building is let to Generali Worldwide Insurance for twenty-one years and
thus provides an excellent long term investment for the Company.





It has been a busy year of construction as building work also started on the
Flagship Office site at Admiral Park. Last year, I reported an agreement to
lease with Kleinwort Benson and am pleased to advise that we also concluded an
agreement to lease with BGL Reads Group Services Limited, a subsidiary of Fortis
Group, for the second building. This triggered the development of these two
buildings, each of approximately 45,000 sq.ft. We are well advanced in their
construction, having created the basement parking beneath the office blocks. The
steel frame is complete with a significant amount of glazing and cladding having
been applied. It is now possible to get a sense of the scale and quality of this
development.



We are on programme to complete the buildings so as to allow the tenants
occupation by the autumn of next year. With construction on this element of the
site well advanced, we are now reviewing the development of the adjacent area
which has a planning consent for luxury coastal apartments.



The effect of completing these developments over the last twelve months have
resulted in significant additions to our rent roll. We considered it appropriate
to seek a revaluation of all our investment properties. UK Chartered Surveyors,
Montagu Evans, were appointed to report on value at 31 January 2004.



This UK practice was familiar with our most recent developments having been
appointed by our funders, Royal Bank of Scotland International, as their
valuers. A comprehensive review of our investment properties resulted in a
revaluation figure of £72.6 million being reported. This provided an uplift of
£11.9 million from our previously reported valuation, a gain of 20% in the
capital value of our investment portfolio.



Whilst adding new quality investments to our portfolio it was also appropriate
to consider some rationalisation where properties were suited to disposal.
Following the conclusion of the B & Q development, a group of properties
adjacent to the service yard, which did not fit our investment criteria, were
sold for £1 million.



We have demonstrated our ability to seek development opportunities as they
arise. We are able to act swiftly to secure sites, achieve pre-lease agreements
and effect developments which will offer attractive profits and good long term
investment opportunities.  This will continue to be our strategic aim together
with the ongoing development of our core site at Admiral Park in Guernsey.



We thus monitor the Guernsey and Jersey market place and are currently assessing
a number of potential enquiries that may lead to development opportunities in
the medium term.



At Admiral Park, we have submitted plans for an enlarged retail/leisure scheme
and ancillary development.  Our proposals accord with the planning principles
for this part of the Mixed Use Redevelopment Area and as such we anticipate our
detailed plans will find favour. This will permit the early development of this
section of Admiral Park. Early indications show healthy tenant demand for our
proposed scheme.



We reaffirm my statement of last year whereby the Company is committed to
seeking further growth in net asset value through new projects.  As such, we do
not recommend payment of a dividend but seek further growth through further
suitable development opportunities.



This policy has been extremely successful to date and the effect of concluding
the two developments reported above over the last twelve months has helped
contribute to the growth of our net asset value per share, after adjusting for
share options, from 109.5p to 144.2p.  This represents an increase of 32% over
the year.





Tom Scott
Chairman



9 June 2004

Operating and Financial Review

Operating Performance



Profit before tax increased by £246,000 to £752,000 (2003: £506,000), being an
increase of 49%. Earnings per share were 2.0p compared with 1.4p in 2003.



Montagu Evans, Chartered Surveyors, carried out a revaluation of the investment
portfolio as at 31 January 2004. The revaluation provided an uplift of £11.9
million of value representing a 20% gain on the investment properties held at
the year end.



Net assets per share, after adjusting for share options, have increased by 34.7p
from 109.5p at 31 March 2003 to 144.2p at the year end, an increase of 32%.

Finance



The Group finances its operations by a mixture of equity and bank borrowings.
The Board follows a policy of fixing interest rates on a significant percentage
of borrowings. The Board believes that the higher the gearing, the greater the
percentage of borrowings that should have their interest rates fixed. This
policy will allow some advantage to be taken of the current historically low
interest rates whilst affording some protection from the risk of future
significant increases in bank base rates.



Further information regarding the interest rate and maturity profile of the
Group's financial liabilities is provided in note 24 of the Company's statutory
financial statements.



At the year end the Group had net debt of £50.9 million (2003: £33.2 million)
and a net debt to equity ratio of 98.3% (2003: 84.6%). In addition there were
undrawn borrowing facilities of £37.5 million in place to fund the Group's
current development programme.



Cash resources increased by £507,000 over the period compared with a decrease of
£2.1 million in the previous financial year. Net outflows in respect of capital
expenditure amounted to £19.2 million (2003: £7.5 million) whilst the net inflow
from bank loans was £18.3 million (2003: £3.1 million).



Net interest costs increased to £2.2 million from £1.8 million in 2003.

Dividends



The Board is not recommending the payment of a dividend this year (2003: Nil).

Taxation



The standard rate of tax in the Channel Islands is 20%.



The taxation charge for the year ended 31st March 2004 is £39,000. The low
effective tax rate results from tax allowances exceeding actual expenditure
during the year.



A provision of £23,000 has been made for deferred tax.  The deferred tax
liability relates primarily to capital allowances claimed on plant and machinery
within investment properties.





Developments



The Group completed two major developments during the period.



In August 2003, the development of a new Supercentre for B & Q Plc was
completed. The unit is located adjacent to the Checkers superstore with which it
shares car parking facilities. The building contract was awarded to J W Rihoy &
Son, a Guernsey based construction company, at the start of the year and was
completed in August 2003. The development represented one of the first B & Q
stores to trade over two levels, thus maximising our return from the building on
site.



Construction commenced in May 2003 on the creation of a 21,000 sq. ft.
headquarters building for Generali Worldwide Insurance. The site is adjacent to
the Old Government House Hotel, the Guernsey Police headquarters and numerous
office buildings. This offered a challenge for R G Falla due to the conflicting
requirements of these neighbours. Construction was often halted to allow wedding
functions to be unaffected at the Old Government House Hotel. In addition, the
development occupied the entire site thus creating logistical issues for the
delivery and storage of materials. The construction was however exceptionally
well managed and the building was completed within forty-six weeks. The building
is a credit to the entire development team and provides arguably the best
offices of this size in St Peter Port.



The Group's largest development to date is now underway at Admiral Park. The
construction of the Flagship Offices will provide approximately 90,000 sq.ft. of
lettable accommodation split equally between two headquarter buildings. The
contract envisages sequential completion of the offices, with both tenants in
occupation by the autumn of next year.

Acquisitions



The Group did not make any acquisitions during the year.

Disposals



As part of our corporate strategy, the Group seeks to acquire appropriate
development and investment opportunities and similarly will dispose of units
that do not meet our investment criteria. During the year, a static warehouse
investment in Jersey and property peripheral to Admiral Park in Guernsey were
sold. These properties did not produce attractive returns on capital employed
and were disposed of for £2.4 million providing net realised gains over cost of
£368,000.

Financial Reporting



There were no changes to accounting policies for the year ending 31 March 2004.
With effect from 31 March 2006, the Company will prepare its consolidated
financial statements under International Financial Reporting Standards; the
implications for ComProp are being kept under active review.

Going Concern



The Directors, having made appropriate enquiries, confirm that they have a
reasonable expectation that the Company and the Group have adequate resources to
continue to operate for the foreseeable future.  For this reason we have
continued to adopt the going concern basis when preparing the financial
statements.




Consolidated profit and loss account



for the year ended 31st March 2004



                                                                                       2004         2003
                                                                                      £'000        £'000

Turnover                                                                              4,751        4,055
Operating expenses                                                                  (2,003)      (1,786)
                                                                                 ----------   ----------

Operating profit                                                                      2,748        2,269

Profit on sale of investment properties                                                 163            -
                                                                                 ----------   ----------
Profit on ordinary activities before interest                                         2,911        2,269

Net interest payable                                                                 (2,159)      (1,763)
                                                                                 ----------   ----------
Profit on ordinary activities before taxation                                           752          506

Tax on profit on ordinary activities                                                   (39)          (1)
                                                                                 ----------   ----------
Profit on ordinary activities after taxation                                            713          505

Dividends                                                                                 -          -
                                                                                 ----------   ----------
Retained profit for the financial year                                                  713          505
                                                                                 ----------   ----------

Earnings per share
Basic                                                                                  2.0p         1.4p
Diluted                                                                                2.0p         1.4p
                                                                                 ----------   ----------

The profit and loss account has been prepared on the basis that all of the
Group's operations are continuing operations.



Consolidated balance sheet at 31st March 2004



                                                                                       2004         2003
                                                                                      £'000        £'000
Fixed assets
Tangible fixed assets                                                               103,430       72,845
Investment in group undertakings                                                          -           -

Investments                                                                             172          172
                                                                                 ----------   ----------
                                                                                    103,602       73,017
                                                                                 ----------   ----------
Current assets
Stocks                                                                                    9           20
Debtors                                                                               1,532          764
Cash at bank and in hand                                                                562           55
                                                                                 ----------   ----------
                                                                                      2,103          839
Creditors
Amounts falling due within one year                                                 (2,878)      (3,242)
                                                                                 ----------   ----------
Net current liabilities                                                               (775)      (2,403)
                                                                                 ----------   ----------
Total assets less current liabilities                                               102,827       70,614

Creditors
Amounts falling due after more than one year                                       (50,880)     (31,350)

Deferred taxation                                                                     (110)         (87)
                                                                                 ----------   ----------
Net assets                                                                           51,837       39,177
                                                                                 ----------   ----------
Capital and reserves
Share capital                                                                         1,782        1,782
Reserves                                                                             50,055       37,395
                                                                                 ----------   ----------
Equity shareholders' funds                                                           51,837       39,177
                                                                                 ----------   ----------




The financial statements were approved by the Board on 9th June 2004 and signed
on its behalf by:



T.H. Scott
S.H. Down








Consolidated cash flow statement
for the year ended 31st March 2004



                                                                                         2004         2003
                                                                                        £'000        £'000

Net cash inflow from operating activities                                               2,660        2,579
                                                                                   ----------   ----------
Returns on investments and servicing of finance
Interest received                                                                           6           64
Interest paid                                                                         (2,184)      (1,822)
                                                                                   ----------   ----------
Net cash outflow from investments and servicing of finance                            (2,178)      (1,758)
                                                                                   ----------   ----------
Taxation
Jersey and Guernsey income tax paid                                                     (224)        (268)
                                                                                   ----------   ----------
Capital expenditure and financial investment
Purchase of tangible fixed assets                                                    (20,388)      (8,084)
Sale of tangible fixed assets                                                           1,201          618
                                                                                   ----------   ----------
Net cash outflow from capital expenditure and financial investment                   (19,187)      (7,466)
                                                                                   ----------   ----------
Acquisitions and disposals
Sale of subsidiary                                                                      1,150        1,650
                                                                                   ----------   ----------
Equity dividend paid                                                                       -            -
                                                                                   ----------   ----------
Net cash outflow before financing                                                    (17,779)      (5,263)
                                                                                   ----------   ----------
Financing
Bank loans                                                                             18,554        3,446
Loans repaid                                                                            (268)        (321)
Issue of ordinary shares                                                                    -          10
                                                                                                        
                                                                                   ----------   ----------
Net cash inflow from financing                                                         18,286        3,135
                                                                                   ----------   ----------

Increase/(Decrease) in cash in the period                                                 507      (2,128)
                                                                                   ----------   ----------


Statement of total recognised gains and losses
for the year ended 31st March 2004


                                                                                         2004        2003
                                                                                        £'000       £'000
Profit for the financial year                                                             713         505
Surplus on revaluation of properties                                                   11,947       6,405
                                                                                   ----------  ----------
Total gains and losses recognised since last annual report                             12,660       6,910
                                                                                   ----------  ----------



Note of historical cost profits and losses
for the year ended 31st March 2004


                                                                                         2004        2003
                                                                                        £'000       £'000
Reported profit on ordinary activities before taxation                                    752         506
Realisation of property revaluation gains of previous years                               205           -
                                                                                   ----------  ----------
Historical cost profit on ordinary activities before taxation                             957         506
                                                                                   ----------  ----------

Historical cost profit retained after taxation and dividends                              918         505
                                                                                   ----------  ----------



Reconciliation of profit on ordinary activities to net cash inflow from
operating activities for the year ended 31st March 2004


                                                                                         2004        2003
                                                                                        £'000       £'000
Operating profit                                                                        2,748       2,269
                                                                                                    
Depreciation charge                                                                        55          70
Loss on disposal of tangible fixed assets                                                   8           3
Decrease in stocks                                                                         11          15
(Increase)/Decrease in debtors                                                          (318)         570
Increase/(Decrease) in creditors                                                          156       (348)
                                                                                   ----------  ----------
Net cash inflow from operating activities                                               2,660       2,579
                                                                                   ----------  ----------



Reconciliation of net cash flow to movement in net debt
for the year ended 31st March 2004


                                                                                        2004        2003
                                                                                       £'000       £'000
Increase/(Decrease) in cash balances                                                     507     (2,128)
Cash inflow from increase in loans                                                  (18,554)     (3,446)
Repayment of loans                                                                       268         321
                                                                                  ----------  ----------
Change in net debt                                                                  (17,779)     (5,253)
Net debt at 1 April 2003                                                            (33,157)    (27,904)
                                                                                  ----------  ----------
Net debt at 31 March 2004                                                           (50,936)    (33,157)
                                                                                  ----------  ----------



Analysis of changes in net debt


                                                             At 1 April          Cash      At 31 March
                                                                   2003          flow             2004
                                                                  £'000         £'000            £'000
Cash at bank and in hand                                             55           507              562

Debt due within 1 year                                          (1,863)         1,245            (618)
Debt due after 1 year                                          (31,349)      (19,531)         (50,880)
                                                             ----------    ----------       ----------
                                                               (33,157)      (17,779)         (50,936)
                                                             ----------    ----------       ----------

Notes

1.            Dividends


The Board is not recommending a dividend to be paid in respect of the year ended
31 March 2004 (2003 £nil).


2.            Earnings per share


The calculation of earnings per share is based on the profit of £713,000 (2003:
£505,000) and on the weighted average of 35,649,858 (2003: 35,467,940) ordinary
shares in issue during the year.  The dilutive potential ordinary shares under
options amounted to 104,826 (2003: 266,675).


3.            Financial information


The financial information set out in this document does not constitute the
Company's statutory financial statements for the years ended 31 March 2004 and
2003.  The auditors have given an unqualified audit report on the accounts for
the year ended 31 March 2004.


4.         Basis of Preparation


The preliminary announcement has been prepared on the basis of the accounting
policies set out in the company's 31 March 2003 statutory accounts.


5.         Annual General Meeting


The Annual General Meeting will be held on 28 July 2004 at 12.00 noon at the
Atlantic Hotel, Le Mont de la Pulente, St Brelade, Jersey.


6.         Annual Report


The Annual Report will be sent to shareholders in due course.  Once issued,
further copies can be obtained from the Company's registered office at La Rue
Fondon, St Peter, Jersey JE3 7BF.




Contacts:

Tom Scott /Steve Down    ComProp Limited       01534 835500


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