Interim Results

Evolution Group PLC
03 September 2003

                                                                3 September 2003


                            The Evolution Group Plc
                       ("Evolution Group" or the "Group")

             Interim results for the six months ended 30 June 2003


Evolution Group, the listed investment bank and retail fund management group,
today announces its results for the six months ended 30 June 2003.


Financial highlights

  • Group turnover increased by 168% to £13.7m (2002: £5.1m)
  • Gross profit increased by 206% to £12.9m (2002: £4.2m)
  • Operating profit before amortisation, non-recurring costs and profit on/
    and provisions against fixed asset investments of £3.2m (2002: loss of £2m)


Operational highlights

  • First half demonstrates considerable growth in revenues
  • Investment banking division has made an excellent start to full year
    trading on a combined basis as Evolution Beeson Gregory
  • IP2IPO strengthened by partnership deal with King's College London
  • Move to the Official List completed in June 2003


Richard Griffiths, Evolution Group's Chairman, commented:

"The Evolution Group has developed significantly over the course of 2003. The
Board is extremely encouraged by the continued improvement across the Group's
operating businesses as the third quarter progresses.

"Investment banking revenues and the corporate finance pipeline look strong
whilst equity trading profits and commissions from the secondary market continue
to perform well ahead of expectations.  Christows' revenue figures are stronger
week-by-week, and the organic wins in funds under management look set to be
supplemented as we attract new discretionary managers with existing client
portfolios.  IP2IPO has progressed its strategy of forging university
partnerships and announced it signed a deal with King's College London in May
this year."


                                     -Ends-



For further information please contact:

The Evolution Group Plc                                          020 7071 4300
Alex Snow, Chief Executive Officer
Graeme Dell, Finance Director

Hogarth Partnership Limited                                      020 7357 9477
Andrew Jaques / Georgina Briscoe



Notes to Editors:

The Evolution Group Plc

The Evolution Group is the holding company of Evolution Beeson Gregory,
Christows and IP2IPO.  The Evolution Group is fully listed with a current market
capitalisation of approximately £180 million.

Evolution Beeson Gregory ("EVBG") aims to be the "leading investment bank to
small and mid cap companies". This is based upon the belief that it has the
strategy and capabilities to achieve this goal, coupled with the fact that the
market opportunity exists for this strategy to be a successful and profitable
one.

The company's capabilities are strong across the primary and secondary equity
market and central to this is the presence of a leading corporate retained
client base in the small and mid cap sector. We service these clients by
providing the full range of corporate finance, equity research, market making
and sales activities and delivering all of these with a strong client service
culture.

Christows is a leading independent firm of stockbrokers and portfolio managers
which, from its foundation in 1991 in Exeter, has always set out to provide a
traditional stockbroking service whilst developing an innovative product
offering. Christows now also operates from London and Bournemouth and has 55
staff across account executive, research, sales and administration staff.

As at 30 June 2003, Christows had a total of £360m client funds under
management, on over three quarters of which it receives a recurring fee based
commission. Christows' strategy for 2003 is one of controlled growth of the
funds under management by organic means through the sales and account executive
teams and by the recruitment of likeminded account executives who can attract
new clients to the company.

IP2IPO is a majority owned subsidiary of Evolution Beeson Gregory.  IP2IPO's
business is the formation of long-term university partnerships in which it
receives a significant interest in the intellectual property created by its
university partners.

IP2IPO's first partnerships were with the University of Oxford's Chemistry
Department and the University of Southampton.

In May 2003, IP2IPO announced that it had entered into a partnership with King's
College London.




CHAIRMAN'S STATEMENT

Key Financial Information
                                                               6 months      6 months
                                                             to 30 June    to 30 June
                                                                   2003          2002
                                                                  £'000         £'000             % change

Group turnover                                                   13,701         5,117       168 % increase
Commissions payable                                               (754)         (885)        15 % decrease
Gross profit                                                     12,947         4,232       206 % increase
Other operating income                                                -             5                    -
Operating costs                                                 (9,728)       (6,249)        56 % increase

                                                                  
Operating profit / (loss) before amortisation,                    3,219       (2,012)                    -
non-recurring costs and profit on/and provisions against
fixed asset investments

Non recurring costs and amortisation                              (624)             -                    -
Provision against and profit on fixed asset investments         (4,862)       (1,987)        145% increase

Operating loss                                                  (2,267)       (3,999)         43% decrease

Basic loss per share (pence)                                     (0.63)        (2.91)         78% decrease

Earnings / (loss) per share (pence)                                1.34        (1.18)                    -
(based on operating profit / (loss) before amortisation,
non-recurring costs and profit on/and provisions against
fixed asset investments)




Review of the half year ended 30 June 2003

The first half of 2003 has been one of considerable progress for The Evolution
Group Plc ("Evolution" or the "Group") and I am pleased to report operating
profits, before amortisation, non-recurring charges and provisions against and
profits on fixed asset investments of £3.2 million, giving the Group an adjusted
earnings per share figure of 1.34p per share (2002: loss per share of 1.18p).

Investment Banking

Evolution Beeson Gregory has made an excellent start to its first full year of
trading on a combined basis. Our revenues have been ahead of budget and have
been generated across the full range of activities.  The cultural change within
the firm is tangible and this has enabled us to deepen our focus on client
service, idea generation and transaction execution. We have continued to pursue
rigorous overall cost management, whilst at the same time making investments in
systems and processes to facilitate future gains in scalability, control and
management information. In August, we completed the successful relocation of the
Group to our new City of London headquarters enabling this momentum to be driven
on through the second half of the year.

Private Client Stockbroking & Fund Management

Christows has certainly had to contend with a very difficult set of market
conditions during the first half of 2003. The first quarter marked a new low
point, for both transaction and management fee based revenues, following the
weakening trend quarter by quarter in 2002. The situation improved markedly in
the second quarter as confidence returned producing greater transaction revenues
and increased recurring management fees as the market conditions improved. Our
sales team and discretionary managers have continued to introduce new funds
under management, and this has increased as the first half ended.

IP2IPO

IP2IPO, the Group's Intellectual Property business, has made further important
progress in the first half. Its third university partnership deal was completed
with King's College London ("KCL") where IP2IPO will receive 20% of KCL's
interest in spin out companies and technology licences for a term of 25 years.
This has cemented our leadership in the field of university IP commercialisation
in the UK. The KCL deal was funded by way of a placing of 3,906,250 shares at
£1.60 per share. The spin-outs coming from Oxford University's Chemistry
Department and the University of Southampton have continued in the first half
with a total of four new companies having been spun out. The total number of
spin-outs from IP2IPO partnerships currently stand at eleven amongst which one
has already successfully achieved second round funding.

Move to the Official List

On 26 June 2003 the Group completed the move from AIM and its Ordinary Shares
were admitted to the Official List. This has resulted in an increased
marketability for the Group's shares and I am confident we will see significant
benefits from this in the future.

Investment Provisions and Non-recurring costs

As previously reported the Group has continued to exit from its non-core
activities. The Group's last remaining investment of this type was
Inter-Alliance and, as at 30 June 2003, the Group has further provided for this
investment. This provision followed the fall in the Inter-Alliance share price
and the refinancing that was completed subsequent to the period end which left
the Group with a negligible stake in the company. The impact of this provision
is a write off of £6.2 million.

The move to the Official List resulted in one off costs in the first half.
Furthermore, in common with many organisations in the investment banking sector,
the Group reduced its cost base with a number of redundancies. Overall, there
were one off non-recurring costs amounting to £0.3 million.

Outlook

The Board is extremely encouraged by the continued improvement across the
Group's operating businesses as the third quarter progresses.

  • Investment banking revenues and the corporate finance pipeline look
    strong.
  • Equity trading profits and commissions from the secondary market continue
    to perform well ahead of expectations.
  • Christows' revenue figures are stronger week-by-week and the organic wins
    in funds under management look set to be supplemented as we attract new
    discretionary managers with existing client portfolios.
  • Your Board, in conjunction with the board of IP2IPO, is examining a number
    of strategic options for the company which may include a flotation on the
    London market.

All of these businesses are people businesses, where our most important assets
are our people. Your Board considers that it is imperative to the success of
Evolution that all employees of the group are properly incentivised and that the
interests of employees are aligned with those of shareholders.  It is therefore
proposed that the Group adopts an all employee share incentive scheme and a
circular will be sent to shareholders shortly about the proposed scheme.  I
should like to reiterate my thanks to everyone for all of their efforts as we
move towards the achievement of our strategic goals - revenue maximisation,
strict cost management and asset realisation achieved in a timely and proactive
fashion.


Richard Griffiths
Chairman

3 September 2003





CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                                                Unaudited six     Unaudited six      Audited twelve
                                                                 months to 30      months to 30           months to
                                                                    June 2003         June 2002    31 December 2002
                                                                        £'000             £'000               £'000

Turnover                                                               13,701             5,117              15,357

Commissions payable                                                     (754)             (885)             (1,631)

Gross profit                                                           12,947             4,232              13,726

Administrative expenses                                              (10,352)           (6,249)            (29,226)
Other operating income                                                      -                 5                  92
Profit on sale of fixed asset investments                               1,301                 -                  19
Provision against fixed asset investments                             (6,163)           (1,987)             (9,712)

Operating loss                                                        (2,267)           (3,999)            (25,101)

Interest receivable and similar income                                    716               644               1,346
Interest payable and similar charges                                      (2)              (11)                (15)

Loss on ordinary activities before taxation                           (1,553)           (3,366)            (23,770)

Tax on loss on ordinary activities                                        (2)              (26)               (117)

Loss on ordinary activities after taxation                            (1,555)           (3,392)            (23,887)

Minority interest                                                          41                 -                  51

Loss for the period attributable to the members of The
Evolution Group Plc                                                   (1,514)           (3,392)            (23,836)

Basic loss per ordinary share (pence)                                  (0.63)            (2.91)             (13.65)






CONSOLIDATED BALANCE SHEET
                                                            Unaudited       Unaudited            Audited
                                                              30 June         30 June        31 December
                                                                 2003            2002               2002
                                                                £'000           £'000              £'000
Fixed assets
Intangible                                                     11,140               -             11,432
Tangible assets                                                   719             901                973
Investments                                                    22,594          14,568             27,640
Own shares                                                        492               -                484
                                                               34,945          15,469             40,529
Current assets
Debtors                                                        44,119           4,256             18,721
Equity shares                                                   7,575               -              2,664
Investments                                                        77               -                176
Cash at bank and in hand                                       31,259          22,887             31,988
                                                               83,030          27,143             53,549

Creditors: Amounts falling due within one year               (38,723)         (2,966)           (17,706)

Net current assets                                             44,307          24,177             35,843

Total assets less current liabilities                          79,252          39,646             76,372

Provisions for liabilities and charges                          (196)               -              (396)

Net assets                                                     79,056          39,646             75,976

Capital and Reserves
Called up share capital                                         2,454           8,157              2,404
Shares to be issued                                               254               -                508
Share premium account                                          24,831          66,150             23,892
Merger reserve                                                 57,261           6,031             57,261
Profit and loss account                                      (13,465)        (40,692)           (12,053)

Total shareholders' funds                                      71,335          39,646             72,012

Shareholders' funds - Equity                                   71,335          32,675             72,012
Shareholders' funds - Non-equity                                    -           6,971                  -

Minority interests                                              7,721               -              3,964

Minority interests & shareholders' funds                       79,056          39,646             75,976




Graeme Dell                       Alex Snow
Finance Director                  Chief Executive Officer






CONSOLIDATED CASH FLOW STATEMENT
                                                                  Unaudited six                       Unaudited six
                                                                   months to 30                   months to 30 June
                                                                      June 2003                                2002
                                                        £'000             £'000            £'000              £'000

Net cash outflow from operating activities                              (5,658)                             (1,722)

Returns on investments and servicing of
finance
Interest received                                         712                                587
Interest paid                                             (2)                               (11)
Income from fixed asset investments                         -                                  5

Net cash inflow from returns on investments
and servicing of finance                                                    710                                 581

Taxation
Corporation tax                                                             276                               (269)

Capital expenditure and financial
investment
Purchase of tangible fixed assets                       (126)                              (139)
Purchase of fixed asset investments                   (1,457)                           (11,791)
Sale current asset investments                            199                                  -
Purchase of current asset investments                    (26)                                223

Net cash outflow from capital expenditure
and financial investments                                               (1,410)                            (11,707)

Acquisitions and disposals
Disposal of subsidiaries                                                      -                                  36

Cash outflow before management of liquid
resources and financing                                                 (6,082)                            (13,081)

Financing
Issues of ordinary share capital                        5,578                                  -
Expenses of share issue                                 (225)                                  -

Net cash inflow from financing                                            5,353                                   -

Decrease in cash in the period                                            (729)                            (13,081)




Notes to the Financial Statements

1.  There has been no change in accounting policies since the last annual
    report, as at 31 December 2002.

2.  The interim report was approved by the directors on 3 September 2003.

3.  Prior year comparatives relate to the Group figures prior to the acquisition 
    of Beeson Gregory Group Plc on 11 July 2002 and hence do not include
    any contribution from that company and its subsidiaries.

4.  The interim report for the six months to 30 June 2003, including the
    independent review report by the auditors, will be mailed to the 
    shareholders of the Group.  Copies of this interim report will be available 
    for a period of one month from today's date at the registered office 
    address: 9th Floor, 100 Wood Street, London, EC2V 7AN.



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