Interim Results

London Finance & Investment Grp.PLC
5 February 2001

                   London Finance & Investment Group P.L.C.


Directors                                                 Registered office

D.C. Marshall, Chairman
                                                          25 City Road

R.A. Good
                                                          London, EC1Y 1BQ

Dr. F.W.A.A. Lucas
J.M. Robotham, OBE, FCA, MSI
                                                          5th February 2001

TO THE MEMBERS

The directors are pleased to present the unaudited interim results of the
company for the six months ended 31st December 2000.

Results

Our profit on ordinary activities attributable to shareholders for the six
months was £883,000 compared to £228,000 for the same period in 1999 and
earnings per share were 3.46p (1999 - 0.89p), an increase of 289%

The increase in dividends received is mainly due to a dividend of £64,000 from
our investment in Creston plc. The increase in contribution from management
services results mainly from one off tasks undertaken on behalf of overseas
clients. The contribution to profits by our associated company, Western
Selection P.L.C., for its half year to 31st December 2000 was £715,000 (1999 -
£80,000). This substantial increase occurred as a result of exceptional
profits realised on the sale of part of Western's strategic investment in The
Sanctuary Group PLC and the receipt of an exceptional dividend from its
strategic investment in Creston plc.

As is our practice, we are not paying an interim dividend; the dividend paid
in October was for the 12 months ended on 30th June 2000. At 31st December
2000 our net asset value per share was 61.1p, an increase of 22% from 30th
June 2000 and 9% from 31st December 1999. This compares favourably with falls
in both the FTSE 100, which was down 1.43% over the last six months and 10.21%
over the year, and the FTSE All Share, which fell 1.52% in the last six months
and 6.85% in over the year. The increase in net asset value is mainly due to a
significant increase in the market value of our strategic investment in
Marylebone Warwick Balfour Group Plc, which is held as a long term fixed
asset.

If we value our investment in Western at net asset value, rather than market
value, our net assets per share at 31st December 2000 were 76p compared to 60p
at 30th June 2000.

Investment policy and management

Our investment policy is to have strategic stakes in a few special situations,
and hold a diversified general portfolio of U.K. and European listed equities.
Strategic investments are minority positions where we seek to exercise
influence over the management of the investment. We are represented on the
boards of our strategic investments and, in turn, Western is also represented
on the boards of its two strategic investments, Creston plc and The Sanctuary
Group PLC.

Our general portfolio is managed by two of our non-executive directors,
Richard Good and Michael Robotham. Decisions in relation to both our strategic
and unlisted investments are taken by the board as a whole.

Strategic Investments

Marylebone Warwick Balfour Group Plc's strategy is the creation of a series of
highly cash generative businesses, each of which has property at its core.
Operations are split into 6 areas:

MWB Business Exchange, which provides 755,000 square feet of serviced offices
in 29 centres,

Hotels, most of which have 20-year management agreements with recognised
operators,

Retail Stores, which owns the Liberty brand, retail operations and properties,

Fund Management, which has invested £530m out of £650m committed by three
leisure funds,

Asset Management, which owns and manages commercial property, and

Project Management, which covers activities that create one-off profits or
fees, over a defined time-scale, with clearly contained risk.

The group announced profits before tax of £11,418,000 for its year ended 30th
June 2000 (1999: £6,320,000) and dividends for the year of 2.8p (1999: 2.5p)
per share. Earnings per share increased by 3% to 9.8p. At 30th June 2000 the
group had net assets with a book value in excess of £210m (1999: 83m), and net
assets per share of 202p (up from 143p at 30th June 1999).

On 3rd November 2000, the company announced that it had raised £62 million to
fund capital investment through a placing and open offer for 28.7 million
shares at 215p. The share price at 31st December was 233.5p compared to 155.5p
at 31st December 1999.

Megalomedia plc announced profits for its first half to 30th September 2000 of
£2,304,000, mainly from the disposal of its Contract Publishing business.
Since 30th September it has announced the disposal of its Post Production
Digital Services business to its management for £12,000,000.

This leaves the Company with a strong balance sheet including cash resources
after the disposal of approximately £20.9m (28p per share) and further loan
note receivables of £2.2m, compared to a market capitalisation of £16.6m. We
have acquired a further 245,000 Megalomedia shares in the period for £56,000.
The share price at 31st December was 22p compared to 32.5p at 31st December
1999.

Western Selection P.L.C., our associate strategic investment company,
announced profits after tax for the six months to 31st December 2000 of £
1,753,500 compared with £188,900 for the same period in the previous year.
Western expects to at least maintain its dividend of 0.40p for its current
year. The net asset value of Western, at market values, has increased to £
14,719,000 from £11,179,000 at 31st December 1999. This equates to 33.8p per
share at 31st December 2000, an increase of 14% since 30th June 2000. The
share price at 31st December was 14.75p compared to 19.25p at 31st December
1999 and, following the announcement of its interim results, the price has
increased to 18p at 31st January 2001.

Western has strategic investments in The Sanctuary Group PLC and Creston plc
and has recently reported on them as follows:


    The Sanctuary Group PLC, Western's main strategic investment, is a
    diversified media group and owner and exploiter of intellectual property
    rights, which continues to expand through both acquisition and organic
    means. Sanctuary is organised into four divisions: Music, covering
    management, record companies, agency and books, New Media, covering
    internet related activities, Facilities, covering recording and rehearsal
    facilities and Screen, covering television production and distribution.

    Sanctuary has issued preliminary results for the twelve months to 30th
    September 2000, reporting an increase in turnover of 91% and operating
    profits before interest and tax of £5,533,000 (1999: £3,303,000). Earnings
    per share increased 14% to 1.88p from 1.65p last year, and the full year
    dividend is increased from 0.20p to 0.25p. The Sanctuary share price has
    increased from 56.5p at 30th June 2000 to 76p at 31st December 2000.

    Creston plc has recently announced the disposal of its remaining property
    interests and its restructuring into the holding company of a Marketing
    Services Group with the intention of embarking on a buy and build
    strategy. Its acquisition of Marketing Sciences Limited and Synergy
    Consulting Limited was approved by shareholders on 29th January 2001.
    Creston believes that there is great growth potential in providing
    consultancy advice to established companies on marketing strategies, and
    also believes that there are good opportunities to identify synergistic
    benefits within the manufacturing services industry.

    The net assets of the company at 31st December 2000 were substantially
    unchanged from the 87p reported at 30th September 2000 after a final
    dividend for the nine month period to 31st March 2000 of 32.5p (1999:
    3.0p). The Creston share price was 115p at 30th June, declined to 90p at
    31st December 2000 following the payment of the 32.5p final dividend.
    Subsequent to the completion of the acquisition and re-listing the shares
    have improved to 110p on 31st January 2001.

Conclusion

The market appreciates the underlying value of some of our Strategic
Investments but others remain undervalued. We continue to work with the
management of our Strategic Investments to help grow their businesses and
enhance shareholder value.

The General Portfolio of investments has outperformed recently compared to the
market, mainly because of our exposure to European stocks. Two thirds of our
General Portfolio comprises shares listed in the UK and, taken as a whole,
these investments have performed in line with the market. Future developments
for telecommunications and technology stocks are uncertain and we continue to
limit our exposure to these sectors. General Portfolio investments are held
for the medium to long term and we expect that they will provide a reasonable
return over time by way of both income and capital growth.

We declared a dividend for the year to 30th June 2000 of 1.1p per share, which
was paid in October. As mentioned above, it is not our intention to pay
interim dividends; and subject to unforeseen circumstances, we expect to at
least maintain our dividend for the year to 30th June 2001, which we
anticipate paying in October 2001.

                                                             David C. Marshall

                                                                      Chairman



Unaudited Consolidated Profit & Loss Account
                                             Half Year Ended      Year Ended
                                              31st December     30th June
                                            2000        1999        2000
                                            £000        £000        £000
Operating Income
Dividends received                           174         106         306
Interest and sundry income                    16          14          29
Profit on sales of investments               136         214         325
                                             326         334         660
Management services income                   238         212         433
                                             564         546       1,093
Administrative expenses
Investment operations                      (137)       (134)       (271)
Management services                        (186)       (212)       (430)
Total administrative expenses              (323)       (346)       (701)

Operating profit                             241         200         392
Share of result of associated undertaking    715          80         350
Interest payable                            (58)        (48)       (104)
Profit on ordinary activities before         898         232         638
taxation
Tax on result of ordinary activities           -         (4)        (16)
Profit on ordinary activities after          898         228         622
taxation
Minority interest                           (15)           -         (1)
Profit attributable to members of the        883         228         621
holding company
Proposed dividend                              -           -       (281)
Retained profit for the period               883         228        340

Earnings per share                          3.46 p      0.89 p      2.43 p

Dividend per share                           Nil         Nil        1.10 p





Unaudited Consolidated Balance Sheet
                                         31st December          30th June
                                       2000        1999             2000
                                       £000        £000             £000
Fixed assets
Tangible assets                         509         517              517
Investments                           7,199       6,320            6,499
                                      7,708       6,837            7,016
Current assets
Listed investments                    3,537       3,553            3,710
Unlisted investments                     43          66               55
Debtors                                 225         175              146
Cash, bank balances and deposits        238          46               53
                                      4,043       3,840            3,964
Creditors falling due within one year(1,828)     (1,773)          (1,962)
Net Current Assets                    2,215       2,067            2,002
Total Assets less Current Liabilities 9,923       8,904            9,018


Capital and Reserves
Called up share capital               1,277       1,276            1,276
Share premium account                   961         956              957
Reserves                                363         361              361
Profit and loss account               7,254       6,259            6,371
Shareholders funds                    9,855       8,852            8,965
Minority equity interests                68          52               53
                                      9,923       8,904            9,018



Notes:-

1.     The results for the half-year are unaudited and have been prepared on
the basis of the accounting policies adopted in the accounts for the year
ended 30th June 2000. The financial information in this interim report does
not constitute statutory accounts within the meaning of Section 240(5) of the
Companies Act 1985. The audited accounts of the Group for the period ended
30th June 2000 have been reported on by the Group's auditors and have been
delivered to the Registrar of Companies. The report of the auditors was
unqualified and did not contain a statement under Section 237(2) or 272(3) of
the Companies Act 1985.

2.     Earnings per share are based on the profit after taxation and
minorities, and on the average number of shares 25,530,338 (December 1999 -
25,520,274 and June 2000 - 25,523,710), in issue during the period.




Consolidated Cash Flow Statement                 Half Year Ended      Full Year
                                                   31 December          30 June
                                                   2000        1999        2000
                                                   £000        £000        £000

Cash inflow/(outflow) on operating activities       304         551        (18)

Returns on investments and servicing of finance
Dividends received                                  270        168         369
Interest paid                                      (58)        (48)       (104)
Net cash inflow from returns on investments and     212         120        265

servicing of finance

Taxation recovered/(paid)                             5           2        (10)

Investing activities
Tangible fixed assets - purchased                   (5)        (20)        (31)
Fixed asset investments - purchased                (56)       (635)       (511)
                                                      -         188         167
                        - proceeds on disposal

Net cash outflow from investment activities        (61)       (467)       (375)

Equity dividend paid - Company                    (281)       (255)       (255)

Fnancing
Share capital issued                                  6           -           1
Net drawdown of loan facility                         -           -         350
Net cash inflow from financing                        6           -         351

Increase/(Decrease) in cash                         185        (49)        (42)


Balance Sheet Analysis taking investments at market value

                                  Half Year Ended                    Year Ended
                                   31st December        30th June
                                           2000          1999        2000
                                           £000          £000        £000
Principal investments at
market value:-
Marylebone Warwick Balfour                7,005         4,665       4,830
Group Plc
Megalomedia plc                             902         1,253         867
Western Selection P.L.C.                  2,841         3,811       2,604
Creston plc                                 186           365         238
                                         10,934        10,094       8,539

General equity portfolio                  5,557         5,201       5,479
(see analysis below)
Tangible fixed assets                       509           517         517
Cash, bank balances and                     238            46          53
deposits
Bank overdraft                          (1,500)       (1,600)     (1,500)
Other net (liabilities)/                   (61)           143       (261)
assets
Minority interests                         (68)          (52)        (53)
Net assets                               15,609        14,349     12,774

Net assets per share                      61.11 p       56.22 p     50.05 p

+     Lonfin owns 40.48% of the issued shares of Western Selection P.L.C. and
accounts for it as an associated company. Taking Western's investments at
market value at 31st December 2000 our investment had an underlying value of
approximately £6.5 million.

                                                                 £            %

Market Value of General Portfolio at 31st December 2000
UTi Worldwide                                              317,840         5.72
Unilever                                                   286,500         5.16
Nestle                                                     231,933         4.17
ING Groep                                                  218,542         3.93
Diageo                                                     194,400         3.50
HSBC Holding                                               192,075         3.46
UBS                                                        188,156         3.39
Zurich Financial                                           187,633         3.38
Barclays                                                   186,480         3.36
GlaxoSmithKline                                            170,232         3.06
Liberty International                                      165,750         2.98
Shell Transport & Trading                                  164,700         2.96
Prudential                                                 161,550         2.91
Schroders                                                  158,520         2.85
Lloyds TSB Group                                           155,760         2.80
BAA                                                        148,320         2.67
Roche Holdings                                             136,407         2.45
AstraZeneca                                                135,000         2.43
CGNU                                                       129,840         2.34
Cadbury Schweppes                                          129,640         2.33
Anglo American                                             129,172         2.32
Schweiz-Ruckversicherungs                                  128,393         2.31
Credit Suisse Group                                        127,236         2.29
Reuters Group                                              124,634         2.24
BOC Group                                                  122,040         2.20
Novartis                                                   118,354         2.13
De Beers                                                   115,172         2.07
BAE Systems                                                114,600         2.06
Cable & Wireless                                           108,360         1.95
Marconi Electronic Systems                                 107,850         1.94
Fortis                                                     107,500         1.93
Vodafone Group                                              98,200         1.77
Pearsons                                                    95,400         1.72
Wyndeham Press Group                                        93,000         1.67
J. Sainsbury                                                79,400         1.43
Fuller, Smith &Turner                                       68,000         1.22
Tibbett & Britten Group                                     57,500         1.03
Other (less than 1%)                                       102,780         1.85
                                                         5,556,868       100.00