Interim Results

EVESTMENT COMPANY PLC
14 September 1999


INTERIM REPORT
Six months to 30 June 1999
 

Chairman's Statement 


The first six months of 1999 have been a period of change for the Company.
With a sustained lack of interest in bringing smaller companies to the market,
the original purpose of the Company seemed to remain difficult to achieve. In
the meantime we identified an emerging source of new opportunities, being that
of the Internet and e-commerce.

Throughout the early part of the year we received many proposals from small
and growing businesses in this sector and began to develop a knowledge pool
for this type of business. Accordingly we decided to focus our attention on
this sector and create a portfolio which seeks to spread the risk associated
with investment in such businesses.
 
Following the redefinition of the Company, which took place formally at the
extraordinary general meeting on 24 June 1999, we have moved ahead and made
some progress. By 30th June 1999 two investments in Internet and e-commerce
related businesses were completed.

The first of these Kapok.com, has developed a turnkey solution to businesses
wishing to have a trading presence on the Internet. The product will be
launched this month and Kapok already has orders awaiting fulfilment.

The second was Infrastructure Defense Inc, a knowledge company which provides
large organisations with information necessary to protect themselves against
cyberattacks. Cybersecurity plays an increasingly important role in
maintaining businesses critical infrastructure. iDefense has already signed
contracts with the UK Ministry of Defence, a number of US agencies, Microsoft,
CitiGroup and others.

In addition, since 30 June 1999 we have invested in some other interesting
businesses, as follows;

eBop Limited. eBop is launching a community web site intended to appeal to the
16 to 24 age range. It has developed a very appealing offering to this section
of the UK population, incorporating exclusive access to certain types of
music, details of what's happening and where etc. eBop expects to have close
associations with student bodies and a variety of entertainment venues.
Revenues are expected to be generated though e-commerce, advertising and some
other rather unique ideas.

StarGig.com. StarGig intends to benefit from the more recent developments in
distributing music via the Internet. StarGig is establishing a broad-based web
site for the musician's community. 

The Share.com. The Share is intending to operate an online real time share
dealing system, initially in the UK. The system is due to go live at the end
of this month.

Gameplay.com. Gameplay, which was floated in July this year, is a combination
of a direct to home computer games business and an Internet based game playing
system set up by BT plc.

StatPro Group plc.  Statpro is a software development and marketing business,
which has an interesting package for distribution to the financial services
industry.

The figures at 30 June 1999 reflect the previously low level of activity, with
minimal essential expenses and a certain amount of interest income, resulting
in a profit for the period of £23,100. The net assets per share, which assume
all unquoted investments are valued at cost, were 2.68 pence.

We are continuing to see a large number of Internet and e-commerce related
proposals and would expect to utilise much of the investment fund relatively
quickly.

I would like to emphasise that whilst we are intending to reduce the risks of
investing in what are necessarily, early stage and sometimes relatively
immature businesses the risks are still great.  It is more than likely that
some of the investee businesses will fall short of expectation (including
total failure).  All we can do is ensure that no single investment is
significant in the overall and that we remain as close as possible to these
businesses as they develop.

O.J. Vaughan
Chairman

14 September 1999




Profit and Loss Account


                                     Unaudited      Unaudited      Audited
                                     Six months to  Six months to  Year ended
                                     30 June        30 June        31 December
                                     1999           1998           1998
                                     £'000          £'000          £'000


Administrative expenses              (30.7)        (21.6)         (37.2)
Profit/(loss) on sale of 
investments                           (5.0)            -            0.8
Income from fixed asset 
investments                              -             -            4.6
Interest receivable                   68.4          82.1          153.4
                                  ________      ________       ________



Profit on ordinary activities             
before taxation                       32.7          60.5          121.6
Taxation                              (9.6)        (12.8)         (25.2)
                                  ________     _________       ________
 
       
       
Retained profit for the period        23.1          47.7           96.4
                                    =======      =======        =======
       

       
Basic earnings per share - pence      0.02          0.05           0.10
                                   =======       =======        =======

Fully diluted earnings per share 
- pence                               0.03          0.06           0.11
                                   =======       =======        =======
 


Balance Sheet

      
                                     Unaudited      Unaudited      Audited
                                     Six months to  Six months to  Year ended
                                     30 June        30 June        31 December
                                     1999           1998           1998
                                     £'000          £'000          £'000


Fixed assets
Investments                          651.4          250.0           338.5
                                   _______       ________        ________

Current assets
Debtors                                3.7            3.3             4.1
Cash at bank and in hand           2,097.1        2,401.2         2,361.5
                                   _______        _______         _______


                                   2,100.8        2,404.5         2,365.6
Creditors due within one year        (74.5)         (48.5)          (49.4)
                                  ________       ________        ________

Net current assets                 2,026.3        2,356.0         2,316.2
                                  ________       ________        ________

Net assets                         2,677.7        2,606.0         2,654.7
                                   =======        =======         =======


Capital and reserves               
Called up share capital            1,000.0        1,000.0         1,000.0
Share premium                      1,490.5        1,490.5         1,490.5
Profit and loss account              187.3          115.5           164.2
                                  ________       ________        ________
     

Equity shareholders' funds         2,677.8        2,606.0         2,654.7
                                   =======        =======         =======

Net assets per share - pence          2.68           2.61            2.65
                                   =======        =======         =======



Cash Flow Statement


                                     Unaudited      Unaudited      Audited
                                     Six months to  Six months to  Year ended
                                     30 June        30 June        31 December
                                     1999           1998           1998
                                     £'000          £'000          £'000

Net cash outflow from operating 
activities                           (14.8)         (17.7)          (33.2)
                                   _______       ________        ________


Returns on investment and servicing 
of finance                     
Interest received                     68.4           82.1           153.4
Income from fixed asset investments      -              -             3.7
                                   ________      ________        ________

Net cash inflow from returns on 
investments and servicing of finance  68.4           82.1           157.1
                                   ________      ________        ________

Taxation
UK Corporation Tax paid                  -              -           (11.6)
                                   ________      ________        ________

Capital expenditure and financial 
investments                     
Purchase of fixed asset investments (511.4)             -         (115.5)
Sale of fixed asset investments      193.4              -           27.8
                                   ________      ________        ________

Net cash outflow from capital expenditure 
and financial investments           (318.0)             -          (87.7)
                                   ________      ________        ________

Cash (out)/inflow before management 
of liquid resources and financing   (264.4)          64.4           24.6
                                   ________      ________        ________

Management of liquid resources                     
Decrease/(Increase) in short term 
deposits                             380.0       (2,370.0)         (50.0)
                                   ________      ________        ________
                     
Increase/(Decrease) in cash 
in the period                        115.6       (2,305.6)         (25.4)
                                    =======      =========        =======




 Notes to the Accounts



1       Basis of preparation

The unaudited accounts for the six months to 30 June 1999 do not constitute
statutory accounts.


2       Taxation

The tax charge for the six months to 30 June 1999 has been calculated at 21
per cent, and represents an estimate of the appropriate proportion of the
expected charge to 31 December 1999.


3       Earnings per share

Basic earnings per share has been calculated on the profit after tax for the
period divided by the average number of shares in issue at 30 June 1999 of
100,000,200.  Fully diluted earnings per share includes warrants and options
which if exercised would give rise to the issue of a further 252,000,000
shares.

4       Investments
                                     Listed       Unlisted        Total
                                      £'000          £'000        £'000
Cost
At 1 January 1999                     110.0          228.5        338.5     
Additions                                 -          511.4        511.4
Disposals                            (110.0)         (88.5)      (198.5)
                                    ________       ________     ________

At 30 June 1999                           -          651.4        651.4
                                     =======        =======      =======

Market value at 30 June 1999              -          595.0        595.0
                                     =======       =======       =======


5       Other Information

The interim report was approved by the Directors on 14 September 1999.

A copy of the interim report will be posted to shareholders and made available
to the public at the company's registered office, 223a Kensington High Street,
London W8 6SG.