Final Results

Highway Capital PLC
28 June 2004


                              HIGHWAY CAPITAL PLC


            PRELIMINARY RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2004


Chairman's Statement


The results for the twelve months ended 29 February 2004 show a loss before tax
of £77,141 (2003: £115,676 loss).


The company had cash at bank and in hand of £704,997 at the balance sheet date


At this time we do not consider it appropriate to declare a dividend.


During the year the company has taken a number of measures to ensure the cash
reserves of the company are preserved.


Under an agreement dated 5 June 2003 E. P. Levey's service contract with the
company, which included a one year notice period, was terminated by mutual
agreement. E. P. Levey remains on the board in a non-executive capacity and he
continues to act as company secretary.


The non-executive directors have also, for the time being, agreed to waive the
majority of their fees and will each receive fees of £500 per quarter.


In the interim statement, I informed shareholders that there were indications
that positive investor sentiment had returned to the market after a two year
absence and we were cautiously hopeful that this would present opportunities for
shell companies such as ours.


We believe that this market optimism has continued to grow and this has been
reflected in the number of approaches made to the company to use it as a vehicle
for a reverse takeover. To date, no suitable candidate has been identified.


The board also believes that the shell could be suitable as a consolidation
vehicle and has sought to identify possible target companies in appropriate
sectors. Meetings have been held with a number of parties and discussions
continue.


Your board will continue to seek opportunities to maximize the value of the
company and I very much hope that I will be able to provide positive news in the
coming months.


Dominic Wheatley

Chairman

Profit and Loss Account 
                                                                                                 
                                                                  Year ended          Year ended 
                                                            29 February 2004    28 February 2003 
                                                                 (unaudited)           (audited) 
                                                                           £                   £ 
              Management fees                                         20,000              30,000            

              Administrative expenses                              (118,113)           (173,582)         

              Operating loss                                        (98,113)            (143,582)         

              Interest receivable                                     20,972              27,906            

              Loss on ordinary activities before taxation           (77,141)            (115,676)         

              Tax charge/(credit) on loss on ordinary activities         486                 -                 

              Loss for the financial year                           (76,655)            (115,676)         

              Dividends                                                    -                   -                 

              Retained loss for the financial year                  (76,655)            (115,676)         

              Basic and diluted loss per share                       (0.96)p              (1.46)p

Continuing operations:

There are no acquired or discontinued operations in the above two financial periods.

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 

                                                                                                       
                                                          29 February 2004    28 February 2003 
                                                               (unaudited)           (audited) 
                                                                         £                   £ 
                Fixed assets                                                                           

                Investments                                              -                   -                 
                                                                         -                   -                 
                Current assets                                                                         

                Debtors                                              4,541               57,875            

                Cash at bank and in hand                           704,997             772,031           

                                                                   709,538             829,906           

                Creditors: amounts falling due within one year    (26,974)            (70,687)          

                Net current assets                                 682,564             759,219           

                Net assets                                         682,564             759,219           

                Capital and reserves                                                                   

                Share capital                                      158,913             158,913           

                Share premium                                      295,437             295,437           

                Profit and loss account                            228,214             304,869           

                Total equity shareholders' funds                   682,564             759,219           

Cash Flow Statement 

                                                                                                                   
                                                                           Year ended          Year ended 
                                                                     29 February 2004    28 February 2003 
                                                                          (unaudited)           (audited) 
                                                                                    £                   £ 
      Net cash outflow from operating activities                             (88,492)            (158,892)         
 
     Returns on investments and servicing of finance                                                              

      Interest received                                                        20,972              27,906            

      Net cash inflow from returns on investments and servicing of finance     20,972              27,906            

      Taxation                                                                                                     

      Corporation tax                                                             486                 7,424             

      Equity dividends paid                                                         -                   -               
 
      Decrease in cash                                                       (67,034)            (123,562)         



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 year ended 28
February 2003 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 year ended 28
February 2003 have been delivered to the Registrar of Companies. The auditors
are expected to give an unqualified opinion on the accounts for the year ended
29 February 2004. The statutory accounts for the year ended 29 February 2004
will be delivered to the Registrar of Companies following the Annual General
Meeting.


Loss per share:

The loss per ordinary share calculation has been based on the loss attributable
to ordinary shareholders of £76,655 (2003: £115,676 loss) divided by 7,945,638
(2003: 7,945,638), being the weighted average number of ordinary shares in issue
during the year. The basic and diluted loss per ordinary share figures are the
same.


28 June 2004


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