Interim Results

Montpellier Group PLC
31 May 2001

                            Montpellier Group plc

      Announcement of Interim Results for the six months ended 31 March


The directors of Montpellier Group plc are delighted to announce the following
highlights of the Company's performance for the six months to 31 March 2001
compared with the six months to 31 March 2000:


*                    Turnover increased by 37 per cent

*                    Profits before tax increased by 50 per cent

*                    Earnings per share increased by 57 per cent

*                    Net asset value per share increased by 20 per cent


The imminent purchase of the building contracting division of Allen plc
exemplifies your Board's commitment to seek attractive opportunities for
further growth.  Your Board has confidence in the prospects of the enlarged
Group.



Chairman's Statement



I am pleased to be able to report that the Group has continued to make
progress over the last six months.  The acquisitions made last year of
Britannia plc, David Lodge & Sons Limited and Hatchpaines Limited have been
integrated successfully and are making contributions to Group profits.  The
imminent purchase of the building contracting division of Allen plc
exemplifies your Board's commitment to seek attractive opportunities for
further growth.



Financial Review



Profits before tax for the six months to 31 March 2001 were £1.5m (2000 : 
£1.0m) on turnover of £116.7m (2000 : £85.1m).  Earnings per share were 2.2p
(2000 : 1.4p) with the net asset value per share increasing to 35.0p (2000 :
29.1p).



The Group is reporting net cash in its balance sheet of £3.7m (2000 : £5.1m)
with the total net cash, including off balance sheet borrowing, being £0.3m
(2000: £2.2m).



Change of Name



At the Extraordinary General Meeting held on 7 March 2001, shareholders
resolved that the name of the Company be changed to Montpellier Group plc,
retaining the YJL identity for the Construction Division.



Dividends



Your Board continues to hold the view that the Group's financial resources,
for the time being, are best devoted to the development of a sound and
enlarged base of future earnings, and that this policy will in due course
create better long-term shareholder value.  For this reason, your Board is not
recommending the payment of an interim dividend.



The Board



Paul Sellars was appointed Managing Director of the Montpellier Group on 25
January 2001, and for the time being will continue to be responsible for Group
Finance, land and property development, and investment activities.  It is the
intention of your Board to appoint a Group Finance Director and a third
non-executive director in due course.



Acquisitions



It was announced on 4 April 2001 that there was an agreed cash bid for the
building contracting division of Allen plc (Allenbuild).  This is conditional
upon shareholders' approval at the Extraordinary General Meeting to be held on
1st June 2001.  Allenbuild's turnover for the year ended 2 April 2000 was £156
million and your Board believes that Allenbuild's businesses are complementary
to the Group's businesses and that this acquisition represents an exciting and
logical step in achieving Montpellier's objectives.  It is anticipated that
the net assets acquired will be around £3.5m.  The consideration is £1m.



Prospects



The Group's trading performance in the first half has been fully in line with
management's expectations and your Board is confident that the good
performance will continue during the second half.  The Group's companies have
continued to secure work at acceptable margins.



The property development businesses have made further land sales with others
in negotiation.  Lovell America continues to generate useful cash.



Your Board has confidence in the prospects of the enlarged Group and will
continue to seek further opportunities that will contribute to the Group's
profitability and growth.




GROUP PROFIT AND LOSS ACCOUNT

for the six months ended 31 March 2001


                                     Notes                                 Year
                                                   Six months ended       ended
                                                      31 March         30 Sept.
                                                   2001        2000        2000
                                                   £000        £000        £000

Turnover: Group and share of joint
ventures' turnover
                                                118,726      92,956     202,089
Less share of joint ventures'                
turnover - continuing operations
                                                (2,035)     (7,898)      (6,840)

Continuing operations                           116,691      85,054      191,819
Discontinued operations                              -            4        3,430
Group turnover                         1        116,691      85,058      195,249

Cost of sales                                 (107,341)    (78,543)    (176,637)

Gross profit                                      9,350       6,515       18,612

Other operating income                            1,510           -           -

Group operating profit before
administrative expenses                          10,860       6,515       18,612

Administrative expenses                         (9,574)     (4,906)     (16,619)

Group operating profit                            1,286       1,609        1,993

Income from joint ventures                          137         126          313
Share of associates' operating loss               (386)           -            -

Continuing operations                             1,037       1,735        1,860
Discontinued operations                               -           -          446
Total operating profit including
share of joint ventures                           1,037       1,735        2,306

Profit on sale of fixed assets                      379           -          485
Loss on disposal of discontinued
businesses                                            -       (314)        (414)

Profit on ordinary activities before
interest and taxation                             1,416       1,421        2,377

Net interest receivable                              97       (384)        (346)

Profit on ordinary activities before
taxation                                          1,513       1,037        2,031

Taxation payable on ordinary
activities                                            -           -        (563)

Profit for the period                             1,513       1,037        1,468


Basic and diluted earnings per
ordinary share                           2         2.2p        1.4p         1.9p





GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


                                                                           Year
                                                 Six months ended         ended
                                                     31 March          30 Sept.
                                                 2001         2000         2000
                                                  £000        £000         £000

Profit for the year excluding share of           1,376         911        1,155
income from joint ventures

Share of income from joint ventures                137         126          313

Currency translation differences on
foreign currency net investments                  (64)         717        2,000

Total recognised gains and losses relating
to the period                                    1,449       1,754        3,468




GROUP BALANCE SHEET
at 31 March 2001
                                                                           Year
                                               Six months ended           ended
                                                   31 March            30 Sept.
                                              2001           2000          2000
                                                £000         £000          £000

Fixed assets
Intangible assets                                693            -           770
Tangible assets                                6,429        3,416         7,810
Investments                                      611            -         1,006
Investments in joint ventures:
Loans to joint ventures                        7,705       12,973         9,194
Share of gross assets                         22,130       21,975        21,045
Share of gross liabilities                  (16,480)     (16,307)      (14,866)
                                              13,355       18,641        15,373

                                              21,088       22,057        24,959

Current assets
Stocks and work in progress                   11,458       18,502        10,932
Debtors:  due within one year                 46,551       29,498        37,051
due after more than one year                   2,141        1,217         2,480
Current asset investments                      3,431            -         3,152
Cash at bank and in hand                      10,381       10,995        15,829
                                              73,962       60,212        69,444

Creditors: amounts falling due within
one year                                      70,221       53,141        70,491

Net current assets / (liabilities)             3,741        7,071       (1,047)

Total assets less current liabilities         24,829       29,128        23,912

Creditors: amounts falling due after
more than one year
Long term debt                                   917            -           531
Other creditors                                   80        6,826           272
                                                 997        6,826           803

Net assets                                    23,832       22,302        23,109

Share capital                                  6,809        7,660         7,167
Share premium account                          1,066        1,066         1,066
Revaluation reserve                              393        1,348         1,119
Capital reserve                                1,166          314           807
Profit and loss account                       14,398       11,914        12,950

Equity shareholders' funds                    23,832       22,302        23,109





GROUP STATEMENT OF CASH FLOW
for the six months ended 31 March 2001

                                                  Six months ended   Year ended
                                                      31 March         30 Sept.
                                                  2001         2000        2000
                                      Note        £000         £000        £000

Net cash (outflow)/inflow from
operating activities                    3      (8,405)        4,399      12,267
 
Returns on investments and servicing
of finance                                                  
Net interest received                               97          104         509
Finance costs paid in relation to                    -            -       (855)
financial restructuring
Net cash inflow/(outflow) from
returns on investments and servicing
of finance                                          97          104       (346)

Taxation
Corporation tax paid                              (630)           -           -

Capital expenditure and financial
investment
Net sales/(purchases) of tangible
fixed assets                                      1,296       (138)         946
Net sales/(purchases) of current
asset investments                                 1,231           -     (3,152)
Investment in and movements on loans
to joint ventures                                 1,762     (1,854)       2,768
Acquisition of own shares                         (727)           -       (907)
Net cash inflow/(outflow) for capital
expenditure and financial investment              3,562     (1,992)       (345)

Acquisitions and disposals
Receipt from sale of business                         -           -       8,573
Payments to acquire subsidiary
undertakings                                          -           -    (14,048)
Cash acquired on acquisition of
subsidiary undertakings                               -           -       3,771
Net cash outflow from acquisitions
and disposals                                         -           -     (1,704)

Cash (outflow)/inflow before use of
liquid resources and financing                  (5,376)       2,511       9,872

Management of liquid resources
(Increase)/decrease in short-term
deposits with banks                             (5,000)         530     (5,495)

Financing
Movement in short-term borrowings                 (430)           -           -
Movement in long-term borrowings                    386     (4,944)     (5,107)
                                                   (44)     (4,944)     (5,107)
Decrease in cash                               (10,420)     (1,903)       (730)



As indicated above, funds of £5,000,000 were transferred to short-term
deposits with banks.  The balance of such funds with banks at 31 March 2001 was
£11,000,000 (31 March 2000 - £nil).



NOTES TO THE ACCOUNTS

for the six months ended 31 March 2001


1.       Segmental analysis


                                               Six months ended            Year
                                                                          ended
                                                  31 March             30 Sept.
                                               2001         2000           2000
                                               £000         £000           £000

Construction                                115,321       79,552        183,386
UK Developments                                 796        3,343          7,630
USA Developments                              2,609       10,057         11,069
Spain - Discontinued                              -            4              4

Turnover: Group and share of joint
ventures                                    118,726       92,956        202,089

Less: Share of USA joint ventures'
turnover                                      2,035        7,898          6,840
                                            116,691       85,058        195,249




2.       Earnings per ordinary share



The earnings per ordinary share is based upon the profit for the Group of £
1,513,000 (2000 March profit of £1,037,000; September profit of £1,468,000)
divided by the weighted average of ordinary shares of 69,625,066 (2000 March
76,603,409; September 76,071,669) in issue over the respective periods.



A number of the share option schemes outstanding during the period were below
the average fair value of the Company's shares hence the options have a
dilutive effect on the Earnings per Ordinary share calculation.



3.       Net cash (outflow)/inflow from operating activities


                                                  6 months ended           Year
                                                                          ended
                                                     31 March          30 Sept.
                                                 2001        2000          2000
                                                 £000        £000          £000

Operating profit                                1,037       1,609         2,306
Depreciation                                      493          73           661
Amortisation of goodwill                           77           -            70
Exchange gains                                      -           -         (700)
Income from joint ventures                      (137)       (126)         (313)
Share of associates operating loss                386           -             -
(Increase) / Decrease in stocks and work
in progress                                     (758)       1,527         5,677
Profit on sale of current asset               
investments                                   (1,510)           -             -
(Increase) / Decrease in operating
debtors and prepayments                       (9,082)         111         4,978
Increase/ (Decrease) in creditors and
accruals                                        1,089       1,205         (412)
Net cash (outflow)/inflow from operating
activities                                    (8,405)       4,399        12,267




4.       Basis of preparation

a)       The accounts for the six months ended 31 March 2001 and the
equivalent period in 2000 have not been audited by the company's auditors.
They have been prepared in accordance with applicable accounting standards
consistent with the accounting policies set out in the 2000 Annual Report.

b)      The abridged information in this statement relating to the year ended
30 September 2000 is derived from full accounts upon which the auditors issued
an unqualified opinion and which have been delivered to the Registrar of
Companies.


This interim statement is being sent to all shareholders and is also available
upon request from the Company Secretary, Montpellier Group plc, Lovell House,
616 Chiswick High Road, London, W4 5RX.