Final Results - Year Ended 30 September 1999

Raphael Zorn Hemsley Holdings PLC
17 December 1999

Raphael Zorn Hemsley Holdings PLC
Preliminary announcement of results for the year ended 30 September 1999

Chairman's Statement

Historical Review

As anticipated in our Interim Report for the six months ended 31 March 1999,
the result for the year to 30 September 1999 declined in comparison to the
previous year, with profits before taxation of £1,212,382 (1998: £2,806,976).
The Board recommends payment of a dividend for the year of 3.0p (1998: 3.0p)
which will be payable subject to shareholders' approval on 26 January 2000
(being the day after our Annual General Meeting) to all shareholders on the
register on 14 January 2000.

The decline in profits is largely attributable to the first six months'
trading and should be viewed in the context of the group's focus on the non-
life insurance market which has been affected by poor sentiment.  However, the
second half saw a strong recovery which has continued into the current
financial year with corporate finance activity increasing substantially.

We have been building our research capabilities and have added more analysts
to our highly-rated insurance team.  In addition, the decision to expand our
coverage to include the 'Speciality and Other Finance' sector has proved
successful and our team of financial analysts has also won recognition.
Research is of vital importance to the development of the group and we intend
to invest further in both staff and appropriate delivery mechanisms including
via the Internet.

Our market making activities produced a good performance for the year and the
group now makes markets in 43 stocks with revenues continuing to grow at a
healthy and controlled rate.  Institutional agency commissions were little
changed over the period, reflecting the low level of activity within non-life
insurance company shares.

Our asset management company, Raphael Asset Management Limited, which started
trading in March 1998, produced an excellent investment performance for its
corporate funds under management for the period under review.  The company is
winning new mandates at an accelerated rate on the back of this exceptional
performance.  Our private client stockbroking business had a steady year and
in common with most other stockbroking firms, has experienced an increase in
trading during the last few months.

Board Change

I became Chairman on 29 September 1999 and, accordingly, the results for the
year under review were achieved whilst my predecessor held office.  Michael
Rosenberg had been with the group since its incorporation in 1989.  I thank
him for his valuable contribution to the group's growth during his tenure as
Chairman.

The Current Year

The group has made an encouraging start to the new financial year and we view
the future with confidence.  Your directors believe that, although
specialisation can lead to fluctuations in performance, our policy of focusing
on chosen niche areas and establishing a leading position within those areas
will deliver value for shareholders in the medium term.  It will also allow us
to develop and broaden our range of activities in order to serve better those
specialist areas and several such initiatives are currently being reviewed.

I would like to thank all our staff for their continuing contribution to the
success of the group.



David Craig
Chairman

20 December 1999

Consolidated Profit and Loss Account
For the year ended 30 September 1999

                                        1999      1998
                                          £         £
                                                    
Turnover                                        
Continuing operations                 7,206,099  9,150,318
Other operating income                  249,799    387,713     
                                      ---------  ---------
                                      7,455,898  9,538,031
Shared commissions                    (821,025)   (961,998)       
                                      ---------  ---------
                                            
Gross profit                          6,634,873  8,576,033
Administrative expenses              (5,837,355)(6,195,394)        
Share of associate's operating                
profit/(loss)                            49,877    (41,411)
                                      ---------  ---------
                                                  
Operating profit                        847,395  2,339,228
Interest income                         205,058    232,930     
Investment income                       166,665    246,791
Interest payable and similar charges    (6,736)    (11,973)
                                      ---------  ---------
                                                   
Profit on ordinary activities before  1,212,382  2,806,976
taxation                                      
Tax on profit on ordinary activities   (395,598)  (972,275)
                                      ---------  ---------
                                                 
Profit on ordinary activities after     816,784  1,834,701
taxation                                      
Dividends paid and proposed           (447,780)   (445,980)
                                      --------   ---------
                                                  
Retained profit for the year            369,004  1,388,721
                                       ========   ========
Earnings per share                                       
-    basic                                 5.5p     12.4p
-    diluted                               5.5p     12.3p

There were no other recognised gains or losses made during the years ended 30
September 1999 and 30 September 1998 other than the profits for those years.
Consolidated Balance Sheet
At 30 September 1999

                                        1999          1998
                                          £             £
                                                    
Fixed assets                                             
Tangible fixed assets                   607,487       690,689
Fixed asset investments                 113,162        59,755
Investment in associate undertaking      52,280        12,877
                                      ---------      --------                   
                                       772,929       763,321
                                       ========       =======
Current assets                                           
Debtors                               8,765,158    10,128,666
Investments                           3,477,403     5,463,172     
Cash at bank and in hand              5,238,020     2,774,708
                                     17,480,581    18,366,546
                                               
                                                       
                                               
Creditors                                                
Amounts falling due within one year  (9,335,647)  (10,599,008)
                                          
                                      ---------    ----------
Net current assets                    8,144,934     7,767,538
                                      ---------    ----------

Net assets                            8,917,863     8,530,859
                                       ========     =========
Capital and reserves                                     
Share capital                         3,731,500     3,716,500
Share premium account                 3,013,625     3,010,625   
Profit and loss account               2,172,738     1,803,734                   
                                     ---------     ---------
                                          
Shareholders' funds                   8,917,863     8,530,859
                                      =========     =========

Consolidated Cash Flow Statement
For the year ended 30 September 1999

                                        1999      1998
                                          £         £
                                                    
Net cash inflow/(outflow) from        3,911,136  (3,791,038)
operating activities                                  
                                                         
Returns on investments and servicing                     
of finance                              205,058     232,930
Interest received                        (6,736)    (11,973)
Interest paid                           172,125     246,791
Dividends received                    ---------    --------
                                          
Net cash inflow from returns on                          
investments and servicing of finance    370,447     467,748
Taxation                                                 
Corporation tax paid (including      (1,182,632)   (448,660)
advance corporation tax)
Capital expenditure and financial                        
investment                             (185,079)   (327,214)
Purchase of tangible fixed assets       (58,868)    (53,065)     
Purchase of fixed asset investments      36,288      23,500
Sale of tangible fixed assets                 -      70,875
Sale of fixed asset investments       ---------    --------
                                                     

Net cash outflow from investing                          
activities from capital expenditur e   (207,659)  (285,904)
and financial investment                            
                                                         
Acquisitions                                  -    (53,426)
                                                         
Equity dividends paid                  (445,980)  (370,250)
                                                       
                                                         
Financing                                                
Issue of ordinary shares                 18,000     16,800
                                      ---------  --------
                                           
Increase/(decrease) in cash in the    2,463,312 (4,464,730)
year                                   ========  =========
                                                
Reconciliation of net cash flow to                       
movement in net funds                                    
Increase/(decrease) in cash balances  2,463,312 (4,464,730)
in the year                           2,774,708  7,239,438
Net funds at the beginning of the     ---------  ---------
year                                     
                                         
                                         
Net funds at the end of the year      5,238,020  2,774,708
                                       ========  =========
                                                 

Notes:

1.   This preliminary announcement of results has been prepared on the basis
  of the accounting policies set out in the group's statutory accounts for the
  year ended 30 September 1999.
2.   Basic earnings per share for the year ended 30 September 1999 is based on
  profits on ordinary activities after taxation of £816,784 which has been
  adjusted to £814,864 for the purposes of the calculation in accordance with
  Financial Reporting Standard 14 (entitled earnings per share) to remove
  dividends from shares held by the Employee Share Option Plan.  The average
  number of shares in issue was 14,808,167.  Basic earnings per share for the
  year ended 30 September 1998 is based on profits on ordinary activities
  after taxation of £1,834,701 and an average number of 14,790,000.  Diluted
  earnings per share assumes that options outstanding at 30 September 1999 were
  exercised at 1 October 1998 where the exercise price per share is less than   
 the fair value of the price of the shares in the year.
3.   This preliminary announcement of results does not constitute statutory
  accounts for the year.  Statutory accounts for the year are still to be
  audited and filed with the Registrar of Companies.  It is expected that
  these will be available shortly.  The results for the year ended 30 September 
 1998 are an abridged version of the group's statutory accounts for that year
  which received an unqualified auditor's report and have been filed with the
  Registrar of Companies.
4.   The potential risks to the group resulting from Year 2000 issues have
  been addressed and steps taken to ensure that all data and systems in the
  group are Year 2000 compliant.  There is not considered to be a material risk
  with potential Year 2000 issues for parties on which the group is reliant.
5.   A copy of the audited Report & Accounts is due to be sent to all
  shareholders on or about 24 December 1999.  Copies of this announcement are
  available free of charge for fourteen days from:

  The Company Secretary
  Raphael Zorn Hemsley Holdings PLC
  Cheapside House
  138 Cheapside
  London  EC2V 6LH