Final Results - Year Ended 31 December 1999

Gresham House PLC
27 April 2000


                               CHAIRMAN'S STATEMENT

The results for the year show a return on ordinary activities after taxation for
the combined Revenue and Capital accounts of £1,040,000 against £1,474,000 last
year.  This fall was anticipated as a result of the non-recurring increase in
rents received last year following settlement of the long  outstanding rent
review at Newton-Le-Willows. If the figures are compared on a like for like
basis, excluding the non-recurring rental income, the results  show  a  combined
increase of £251,000 over last year.

Shareholders will  also see an appreciation in net asset  value,  allowing  for
dilution, from 94.8p per share to 202.3p per share, which has largely  been  due
to the revaluation of the Group's investment property portfolio by £3,740,000.

In September Deacon Knowsley Limited, a 75% subsidiary undertaking, purchased 38
acres  of  industrial property in Knowsley, Lancashire for  a  consideration of
£10,870,000 which was funded by increasing the Group's borrowings by a similar
amount.

As a result shareholders can expect a substantial  increase  in  the  Group's
property rental flow during the year to 31st December, 2000, and in subsequent
years;  however there  will be a commensurate increase in  interest costs.  As
reported in my Interim Statement we have, during the year, replaced previous
loan facilities secured  on  existing properties with longer  term funding
arrangements at lower rates of interest.

In  December, Transense Technologies plc, a company we have supported  for  five
years,  was admitted to the Alternative Investment Market ('AIM') at a price of
100p per share. The Accounts reflect that the price had risen to 300p  by  the
year end and, since then, has risen substantially to a price of 1512p as at 26th
April, 2000. Gresham's original investment was at 23p per share which was also
the price paid for 325,000 shares upon exercise of its option subsequent to the
year end.  Since admission to AIM we have sold part of our holding  at  a  mean
price  of 1928p, raising £4,100,000, which will provide liquidity and enable us
to  invest further in new young companies. As at today Gresham still  holds
210,000 ordinary shares in Transense. Taking account of the increase in value of
Transense since the year end, the net asset value at 26th April, 2000 now
exceeds 400p per share.

We are currently examining proposals to alter the terms of the  2.5%  Gresham
House Finance plc 2001 Secured Loan Stock,  £6,062,000  of  which  is  still
outstanding to holders other than Group companies, so  as  to  give  the  Loan
Stockholders alternative options for extending the period of the loan beyond the
repayment date of 31st December, 2001.

As a result of the continued improvement in the overall position of the Group
your Board proposes that the final dividend be increased from 0.5p to 1.0p  per
share.

A P Stirling

27th April, 2000

                                  GRESHAM HOUSE plc

                             PRELIMINARY FINAL STATEMENT

                         CONSOLIDATED STATEMENT OF TOTAL RETURN
                         for the Year ended 31st December, 1999

                                         1999                 1998

                              Revenue  Capital Total    Revenue  Capital Total
                              £'000    £'000   £'000    £'000    £'000   £'000
                                           
Gains on Investments              -       313    313        -      500     500
Income:
Dividend and Interest 
 Income                         388         -    388      206        -     206
Rental Income                 1,659         -  1,659    2,014        -   2,014
Other operating income          195         -    195        8        -       8

Other Expenses                 (694)        -   (694)    (587)       -    (587)


Net return before 
 finance costs and taxation   1,548       313  1,861     1,641      500   2,141


Interest payable and 
 similar charges               (822)        -   (822)     (579)       -   (579)


Return on ordinary 
 activities before taxation     726       313  1,039     1,062      500   1,562


Taxation                          1                1       (88)       -    (88)


Return on ordinary 
 activities after 
 taxation attributable to 
 equity shareholders            727       313  1,040       974      500   1,474

Dividend - Equity shares        (42)        -    (42)      (21)       -    (21)


Transfer to reserves            685       313    998       953      500   1,453


Basic return per 
 Ordinary Share                17.2p      7.4p  24.6p     23.0p    11.8p  34.8p


Diluted return per 
 Ordinary Share                16.6p      7.1p  23.7p     22.8p    11.7p  34.5p


Notes
(i) The revenue column of this statement is the consolidated profit and loss
      account of the group.

(ii) In accordance with the Company's accounting policies the above figures
      take into account the results of significant investments only to the
      extent of dividends received amounting to £36,549.

(iii) Dividends - Ordinary shares:
      - proposed final dividend of 1.0p per 
      share (1998: 0.5p) payable on 23rd June, 
      2000 to shareholders on the register at 
      19th May, 2000.                               42                       21

(iv)  The summary of results for the year ended 31st December, 1999 does not
      constitute statutory accounts within the meaning of s240 of the Companies 
      Act 1985. The full statutory accounts which will be available to 
      shareholders by 12th May, 2000 have not been reported on by the Company's 
      auditors and have not been delivered to the Registrar of Companies. Full 
      accounts in respect of the year ended 31st December, 1998 have been 
      delivered to the Registrar of Companies and the Auditor's Report
      on those accounts was unqualified.

(V)   Basic revenue and capital returns per ordinary share are based on the net
      revenue return on ordinary activities before deduction of dividends of
      £727,000 (1998: £974,000) and on the capital return of £313,000 (1998: 
      £500,000) respectively, and on 4,238,000 (1998: 4,238,000) ordinary       
     shares in issue during the year.

      The diluted revenue and capital returns per ordinary share are based on
      the net revenue return on ordinary activities before deduction of
      dividends of £727,000 (1998: £974,000) and on the net capital return of
      £313,000 (1998: £500,000) respectively, and on 4,390,507 (1998:
      4,266,203) shares. The number of shares is based upon the number of
      shares in issue during the year together with 152,507 (1998: 28,203)
      shares deemed to have been issued at nil consideration pursuant to
      options outstanding.




                              GRESHAM HOUSE plc
                          PRELIMINARY FINAL STATEMENT

                          CONSOLIDATED BALANCE SHEET 
                           as at 31st December, 1999

                                             1999                  1998
                                             £'000                 £'000

Investments
      Securities                            2,580                 2,168
      Properties                           27,045                10,520

Tangible assets                               485                   396

                                           30,110                13,084


Current assets                              6,909                 2,016

Creditors - amounts falling due
within one year                             2,796                 3,059


Net current assets/(liabilities)            4,113                (1,043)


Total assets less current liabilities      34,223                12,041

Creditors - amounts falling due
after more than one year                   25,339                 7,995

                                            8,884                 4,046


Capital and reserves
Called up share capital                     1,060                 1,060
Share premium account                         242                   242
Other reserves
      Revaluation reserve                   7,829                 3,989
      Capital reserve - realised           17,569                17,610
      Capital reserve - unrealised            497                   143
Revenue reserves                          (18,313)              (18,998)


Equity shareholders' funds                  8,884                 4,046


Basic Net Asset Value per 
 ordinary share                            209.6p                 95.5p


Diluted Net Asset Value per 
 ordinary share                            202.3p                 94.8p


Notes

      The basic Net Asset Value per ordinary share is calculated by reference
      to the group net assets as at 31st December, 1999 of £8,884,000 (1998:
      £4,046,000) and 4,238,000 ordinary shares being the number of ordinary
      shares in issue at the year end.

      The diluted Net Asset Value per ordinary share is calculated by
      reference  to the group net assets as at the year end of £8,884,000       
     (1998: £4,046,000) and 4,390,507 (1998:4,266,203) ordinary shares in       
    issue. The number of shares is based upon the number of shares in issue     
   at the year end together with 152,507 (1998:28,203) shares deemed to have    
  been issued at nil consideration pursuant to the options outstanding          
 at the year end in accordance with Financial Reporting Standard No. 14.



                                GRESHAM HOUSE plc
                           PRELIMINARY FINAL STATEMENT

                        CONSOLIDATED CASH FLOW STATEMENT
                        for the Year ended 31st December, 1999

                                                    1999                  1998
                                       Notes        £'000                 £'000

Cashflow from operating activities
Investment income received                            103                    35
Deposit interest received                             259                   162
Rental income received                              1,541                 1,962
Other cash payments                                  (766)                (316)

Net cash inflow from 
 operating activities                    1          1,137                 1,843

Returns on investment and 
 servicing of finance
  Interest paid on 2.5% Secured
  Redeemable Loan Stock, 2001                        (153)                (179)
  Interest paid on property loans                    (607)                (400)


Net cash outflow from Investments
and servicing of finance                             (760)                (579)

                                                                    
Capital expenditure and financial 
 investment
Purchase of tangible fixed assets                       -                  (45)
Purchase of investments                              (376)                (110)
Sales of investments                                  251                  109
Net loans (advanced)                                  (13)                (145)
Purchase of investment properties                 (12,785)                   -
Sale of freehold property                               -                  720

Net cash inflow/(outflow) from capital
expenditure and financial investment              (12,923)                 529

Corporation tax paid                                  (64)                   -

Equity dividends paid                                 (21)                 (16)

Cash inflow before use of liquid 
 resources and financing                          (12,631)               1,777
 
Management of liquid resources
(Acquisition)/sale of listed securities 
  held for dealing                                   (202)                   2

Financing
Acquisition of 2.5% Secured 
 Redeemable Loan Stock
by group company                                      (44)               (625)
Repayment of loans                                 (2,014)               (953)
Receipt of loans                                   19,770                   -

Net cash outflow from financing                    17,712              (1,578)

                                                                     
Increase/(decrease) in cash                 3       4,879                  201



                           RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS

                                                    1999                  1998
                                                    £'000                 £'000

Retained profit for the year                          685                   953
Revaluation surplus                                 3,840                     -
Net movement on capital reserves                      313                   500 
                                                   4,838                 1,453

Shareholders' funds at 1st January                  4,046                 2,593


Shareholders' funds at 31st December                8,884                 4,046
                          


                             GRESHAM HOUSE plc
                        PRELIMINARY FINAL STATEMENT

                  NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
                       for the Year ended 31st December, 1999

1  Reconciliation of operating profit to operating cash flows.

                                                    1999                  1998
                                                    £'000                 £'000
   Return on ordinary activities
   before taxation                                  726                  1,062
   Interest payable                                 822                    579  
                                                 1,548                  1,641 
   Depreciation                                      11                      7
   Provision against loans and guarantees             -                     50
   Taxation on franked investment income            (22)                    (9)
   Corporation tax adjustment                        22                      -
   Increase in debtors                             (850)                  (195)
   Increase in creditors                            428                    349

   Net cash flow from operating
   activities                                     1,137                  1,843


2 Reconciliation of net cash flow to 
    movement in net debt

   Increase in cash for the period                4,879                     201
   Cash outflow from repayment of debt            2,058                   1,578
   Cash inflow from loans received              (19,770)                      -
   Cash outflow/(inflow) from increase/
    (decrease)in liquid resources                   202                     (2)

   Change in net debt resulting from
   cash flows                                   (12,631)                  1,777 

   Discount on acquisition of loan stock
   by group undertaking                              26                     375

   Movement in net debt in the year             (12,605)                  2,152

   Net debt at beginning of year                 (8,755)               (10,907)

   Balance at end of year                       (21,360)                (8,755)


3  Analysis of net debt
                                      At 1st       Cash     Other      At 31st
                                      January      flow     non-cash   December
                                      1999                  changes     1999
                                      £'000       £'000     £'000       £'000

   Cash in hand and at bank             750       3,828                 4,578
   Overdrafts                        (1,158)      1,051                  (107)
                                                  4,879
   Debt due within one year            (459)        400       (742)      (801)
   Debt due after one year           (7,995)    (18,112)       768    (25,339)
                                                (12,833)
   Current asset investments            107         202                   309


                                      (8,755)   (12,631)        26    (21,360)