Final Results

Highway Capital PLC
28 June 2002

                              HIGHWAY CAPITAL PLC

            PRELIMINARY RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2002

Chairman's Statement

Your directors have continued to search for a suitable candidate business to
reverse into Highway Capital. It is disappointing that we have so far been
unable to effect this. In September last year we believed that we had found a
good business that would have benefited not only from our cash and listing, but
also from our management team. Unfortunately this company did not pass the tests
we set during due diligence, and we were obliged to withdraw. Each side paid its
own costs. The total cost of this abortive exercise to Highway Capital was
£66,583.

One of the difficulties that we have faced is the lack of interest from the
Stock Market in new issues and small cap companies. Whereas two years ago small
companies were seen as the winners of the future, the bursting of the dot com
bubble resulted in most investment fund doors being closed to them. Owners of
privately held companies however believed that their companies could still
command high valuations, and only recently have expectations been reduced. You
will appreciate that if we are to create value for Highway's shareholders, both
these factors need to be reversed. One thing we did not wish to do was to press
ahead with something that was not both a good company in its own right and good
value for our shareholders.

Nevertheless, I detect a small shift in attitudes and the re-emergence of
interest in 'good stories'. Consequently I am cautiously hopeful that something
will cross our desks that fits Highway and I look forward to reporting to you
all in due course. I thank you for your patience and forbearance.


Dominic Wheatley

Chairman




Dividends


The Directors do not recommend the payment of a final dividend for the year.




Profit and Loss Account

                                                                   Year ended            14 months ended

                                                             28 February 2002           28 February 2001

                                                                   (unaudited)                  (audited)

                                                                            £                           £

Other administrative expenses                              (190,317)                     (99,907)
Abortive acquisition costs                                  (66,583)                      -
Administrative expenses                                     (256,900)                     (99,907)
Operating profit/(loss)                                     (256,900)                     (99,907)
Profit on disposal of subsidiaries                          -                             387,993
Income from fixed asset investments                         -                             215,436
Interest receivable                                         45,376                        4,438
Profit/(loss) on ordinary activities before taxation        (211,524)                     507,960
Tax on profit/(loss) on ordinary activities                 -                             7,424
Profit/(loss) for the financial year                        (211,524)                     515,384
Dividends                                                   -                             (39,728)
Retained profit/(loss) for the financial year               (211,524)                     475,656
Basic and diluted earnings/(loss) per share                 (2.66)p                       6.49p


Discontinued operations:

On 24 January 2001 the Company disposed of its trading subsidiary, Superframe
Limited, and its dormant subsidiary, Retail Rescue Limited.


Total recognised gains and losses:

The Company has no recognised gains or losses other than the profit or loss for
the above two financial periods.




Balance Sheet

                                                               28 February 2002            28 February 2001

                                                                    (unaudited)                   (audited)

                                                                             £                           £
Fixed assets
Investments                                                 -                             -
Current assets
Debtors                                                     12,838                        9,484
Cash at bank and in hand                                    895,593                       1,132,633
                                                            908,431                       1,142,117
Creditors: amounts falling due within one year              (33,536)                      (55,698)
Net current assets                                          874,895                       1,086,419
Net assets                                                  874,895                       1,086,419
Capital and reserves
Share capital                                               158,913                       158,913
Share premium                                               295,437                       295,437
Profit and loss account                                     420,545                       632,069
Total equity shareholders' funds                            874,895                       1,086,419




Cash Flow Statement

                                                                      Year ended              14 months ended

                                                                28 February 2002             28 February 2001

                                                                     (unaudited)                     (audited)

                                                                               £                            £
Net cash inflow/(outflow) from operating activities         (282,416)                     479,618
                                                            
Returns on investments and servicing of finance
Dividends received                                          -                             215,436
Interest received                                           45,376                        4,438
Net cash inflow from returns on investments and servicing
of finance                                                  45,376                        219,874
Taxation
Corporation tax                                             -                             (7,424)
Acquisitions and disposals
Sale of subsidiary undertakings                             -                             520,021
Net cash inflow from acquisitions and disposals
                                                            -                             520,021
Equity dividends paid                                       -                             (79,456)
Increase/(decrease) in cash                                 (237,040)                     1,132,633




Notes


Basis of preparation:

The preliminary results have been prepared under the historical cost convention
and in accordance with applicable accounting standards. The financial
information set out above does not comprise statutory accounts for the purpose
of section 240 of the Companies Act 1985. The information for the period ended
28 February 2001 has been extracted from the statutory accounts which carried an
unqualified audit report and did not contain any statement under section 237(2)
or (3) of the Companies Act 1985. The statutory accounts for the period ended 28
February 2001 have been delivered to the Registrar of Companies. The auditors
are expected to give an unqualified opinion on the accounts for the year ended
28 February 2002. The statutory accounts for the year ended 28 February 2002
will be delivered to the Registrar of Companies following the Annual General
Meeting.


The Company disposed of its two subsidiary undertakings, Superframe Limited and
Retail Rescue Limited, on 24 January 2001. At 28 February 2001 the Company was a
stand-alone company and was therefore not required to prepare consolidated
financial statements for the 14 month period ended 28 February 2001. The
financial information set out above relates only to the Company itself.


Earnings/(loss) per share:

The earnings/(loss) per ordinary share calculation has been based on the loss
attributable to ordinary shareholders of £211,524 (2001: profit £515,384)
divided by 7,945,638 (2001: 7,945,638), being the weighted average issued share
capital during the year. The basic and diluted earnings/(loss) per ordinary
share figures are the same.




28 June 2002




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