Interim Results

Pathfinder Properties PLC
30 September 2003


30 September 2003

PATHFINDER PROPERTIES PLC
INTERIM STATEMENT
for the six months ended 30 June 2003

CHAIRMAN'S STATEMENT

Only three months have passed since I last reported on the affairs of the Group
regarding the accounts for the year ended 31 December 2002, but they have been a
busy three months and the Group continues to progress its announced development
plans to realise shareholder value.

I am pleased to announce that your Group is in the final stages of agreeing two
contracts for the sale of, respectively, 2.7 acres of cleared site and the
listed buildings at our site at Newark to specialist developers for
complementary projects conditional upon planning permission being obtained. The
base price on these contracts is £3.02 million. The balance of the site,
amounting to some 1.4 acres, adjacent to the Newark riverfront, is the most
valuable and is being retained by the Group for development as 112 apartments
and 3,000 sq ft of retail space. The Group has been advised that the residential
development value of the retained site substantially exceeds its book cost. We
have offers of finance for this development and, again subject to planning, we
would hope to start construction on site in the new year.

We have received a formal offer of finance, which is acceptable to the Group, to
fund phase 1 of River Quarter, Manchester, which would allow construction of
this £37 million end-value scheme to commence in Spring 2004, with the first
elements being released to the market at the same time.

Finally, the Group has completed the acquisition of a site in central Wetherby,
Yorkshire, for a mixed use scheme comprising 24 apartments and 13,400 sq ft of
retail and restaurant space. The Group is in discussion with potential funders
for a planned start on site in Spring 2004 and completion by Summer 2005. We are
already in discussion to lease the whole of the ground floor retail space to a
major high street retailer.

The interim financial statements for the six-month period ended 30 June 2003
record losses arising from the ongoing business that are inevitable given our
policy of writing off interest and management costs directly to the profit and
loss account during the early stages of development projects. The Group is not
proposing to pay an interim dividend this year. A decision on payment of a final
dividend will depend on the progress of the development programme.

The balance sheet changes in the period, other than the loss for the period,
principally reflect two transactions. First, it includes the exchange on the
Wetherby site, which had taken place at 30 June 2003 subject to certain
conditions, which have now been satisfied. Secondly, it shows the acquisition in
March 2003 of the remaining external 20% interest in Pathfinder (River Quay)
Limited in exchange for shares in Pathfinder Properties PLC and cash. The
recognised value of the assets acquired exceeded the consideration paid. This
completes our acquisition of the outstanding River Quay interests.

John Parry
Chairman
29 September 2003



CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months ended 30 June 2003

                             Notes    6 months to      6 months to         Year to
                                     30 June 2003     30 June 2002     31 Dec 2002
                                            £'000            £'000           £'000
TURNOVER
           Group and share
           of joint
           ventures              4              -             2,100          17,490
           less share of
           joint ventures                        -           (2,100)         (2,100)
                                           --------          -------        --------

Group turnover                                  -                -          15,390

Cost of sales                                  35              (21)        (13,980)
                                           --------          -------        --------
Gross profit                                   35              (21)          1,410
Administrative
expenses                                     (744)            (739)         (1,451)
                                           --------          -------        --------
                                             (709)            (760)            (41)

Other
operating
(expense)/income                               (73)             130             158
                                               
OPERATING (LOSS)/PROFIT
BEFORE SHARE                               --------          -------        --------
     OF JOINT VENTURES                        (782)            (630)            117

Share of
operating
profit in
joint ventures                                  5              417             352
                                           --------          -------        --------
OPERATING
(LOSS)/PROFIT                    4           (777)            (213)            469

(Loss)/Profit
on sale of
investment
properties                                     (4)               -              66
                                           --------          -------        --------
                                             (781)            (213)            535
Interest
receivable                                    114              107             263
Interest
payable                                      (373)            (388)           (910)
                                           --------          -------        --------
LOSS ON ORDINARY ACTIVITIES
     BEFORE TAXATION                       (1,040)            (494)           (112)
           

Taxation   Group                              204              259            (296)
           Joint                               44               27             212
           ventures                        --------          -------        --------
LOSS ON ORDINARY ACTIVITIES
     AFTER TAXATION                         (792)            (208)           (196)

Equity minority
interests                                      5                8              93
LOSS ON ORDINARY
ACTIVITIES                                 --------          -------        --------
     ATTRIBUTABLE TO
     MEMBERS                                 (787)            (200)           (103)
Ordinary dividends                              -                -            (173)
                                           --------          -------        --------
Loss for the
period
transferred to
reserves                         7           (787)            (200)           (276)
                                           ========          =======        ========

Loss per share                  11          (0.99p)          (0.25p)         (0.13p)

The operating loss/profit arises from the Group's continuing operations.
A statement of total recognised gains and losses for the period is
given in note 9.



CONSOLIDATED BALANCE SHEET
at 30 June 2003

                             Notes   30 June 2003     30 June 2002      31 Dec 2002
                                            £'000            £'000            £'000

FIXED
ASSETS
  Intangible fixed assets                      18              622              142
  Investment properties                         8               47               32
  Fixed assets - equipment, fixtures           16                -                -
  and fittings
  Investment in joint
  ventures
                                            ---------------------------------------
             Share of gross                 3,326            2,534            3,274
             assets
             Share of gross
             liabilities                   (1,980)          (1,888)          (1,839)
             Goodwill                          51                -               51
                                            ---------------------------------------
                                            1,397              646            1,486
  Investment in own shares                  1,861            2,345            2,729
  Other Investments                           152              152              152
                                           --------         --------          -------
                                            3,452            3,812            4,541
                                           --------         --------          -------

CURRENT ASSETS
  Work-in-progress                         17,418           27,440           15,365
  Debtors                        5            937              884              913
  Cash at bank                              3,938            4,559            6,474
                                           --------         --------          -------
                                           22,293           32,883           22,752
CREDITORS:
Amounts
falling due
within one
year                             6         (7,205)          (9,947)          (3,926)
                                           --------         -------- --       -------
NET CURRENT
ASSETS                                     15,088           22,936           18,826
                                           --------         --------          -------
TOTAL ASSETS
LESS CURRENT
LIABILITIES                                18,540           26,748           23,367
CREDITORS: Amounts falling due after
more than one year
  Bank and other loans                     (3,999)         (10,440)          (7,330)
PROVISIONS                                      -              (14)               -
                                           --------         --------          -------
                                           14,541           16,294           16,037
MINORITY
INTERESTS                                    (459)          (1,164)          (1,079)
                                           --------         --------          -------
NET ASSETS                                 14,082           15,130           14,958
                                           ========         ========         ========

CAPITAL AND RESERVES
Called up
share capital                               7,990            7,975            7,975
Share premium
account                                     1,962            1,946            1,946
Revaluation
reserve                                       193              527              431
Capital
reserve                                     2,494            2,494            2,494
Profit and
loss account                     7          1,443            2,188            2,112
                                           --------        --------          -------
EQUITY
SHAREHOLDERS'
FUNDS                            8         14,082           15,130           14,958
                                           ========         ========         =======

Net assets per
share
attributable
to ordinary
shareholders                                17.62p           18.97p           18.76p

CASH FLOW STATEMENT
for the six months ended
30 June 2003

                           Notes    6 months to      6 months to         Year to
                                   30 June 2003     30 June 2002     31 Dec 2002
                                          £'000            £'000           £'000
NET CASH (OUTFLOW)/
INFLOW
  FROM OPERATING              10         (1,232)          (3,771)         10,804
  ACTIVITIES                             --------         --------        --------

RETURNS ON INVESTMENTS AND
SERVICING
  OF FINANCE
Interest
received                                     44               56             238
Interest paid                              (108)            (207)           (545)
                                         --------         --------        --------
Net cash outflow from
returns on investments
and
  servicing of finance                      (64)            (151)           (307)
                                         --------         --------        --------

TAXATION
                                         --------         --------        --------
Corporation tax paid                         -                -             (57)
                                         --------         --------        --------

CAPITAL EXPENDITURE AND
FINANCIAL
  INVESTMENT
Receipts from
sales of
investment
properties                                   20                -              81
Receipts from
joint ventures                                -            1,675             730
Acqusition of
other tangible
fixed assets                                (26)               -               -
Net cash (outflow)/inflow
from capital expenditure
                                         --------         --------        --------
  and financial                              (6)           1,675             811
  investment                             --------         --------        --------

ACQUISITIONS AND
DISPOSALS
Acquisition of
minority
interests in
subsidiary                               (1,079)               -               -
Purchase of
subsidiary
undertaking                                   -                -          (1,069)
Net cash
acquired with
subsidiary
undertaking                                   -            1,702           1,702
                                         --------         --------        --------
Net cash
(outflow)/inflow
from acquisitions
and disposals                            (1,079)           1,702             633
                                         --------         --------        --------

EQUITY DIVIDENDS PAID
                                         --------         --------        --------
Minority dividends paid                    (180)               -               -
                                         --------         --------        --------

MANAGEMENT OF LIQUID
RESOURCES                                --------         --------        --------
Decrease/(Increase) in
treasury deposit
accounts                                  1,016                -          (1,866)
                                         --------         --------        --------

FINANCING
Debt due within a year:

  Loans drawn down                            5              726             726
  Loans repaid                                -                -          (8,309)
Debt due in more than one
year:
  Loans drawn down                           20            1,861           2,800
  Loans repaid                                -               (2)         (3,146)
                                         --------         --------        --------
                                             25            2,585          (7,929)
                                         --------         --------        --------

(DECREASE)/INCREASE
IN CASH                                  (1,520)           2,040           2,089
                                        ========         ========        ========

NOTES
for the six months ended 30 June 2003

1 BASIS

The figures shown for the six months to 30 June 2003 and 30 June 2002 are
unaudited and do not constitute statutory financial statements within the
meaning of the Companies Act 1985. The financial statements for the year ended
31 December 2002 have been reported on by the Company's auditors and delivered
to the Registrar of Companies. The report of the auditors was unqualified and
did not contain a statement under s.237 (2) or (3) of the Companies Act 1985.

2 ACCOUNTING POLICIES

The accounting policies adopted are consistent with those applied in the
previous year.
Investment properties are stated at valuation on 31 December 2002 or cost at the
date for acquisition, if later, together with the addition of costs of
enhancement works since that date where appropriate. Investment properties have
not been revalued at 30 June 2003. The investment in Pathfinder Properties PLC
held by a subsidiary of the Group has been revalued by the Directors at 30 June
2003 on the basis of the reported net asset value of the Group at that date.

3 ACQUISITION OF REMAINING INTERESTS IN PATHFINDER (RIVER QUAY) LIMITED

On 14 March 2003, the Group acquired the outstanding 20% interest in Pathfinder
(River Quay) Limited. Consideration for the acquisition amounted to £1,034,500
in cash and the transfer of 3,989,800 shares in Pathfinder Properties PLC owned
by the Group.

4 RESULTS FOR THE PERIOD

The Group's turnover and results arise principally from property development
activities. The acquisition of the remaining interests in Pathfinder (River
Quay) Limited have no effect on turnover or operating loss of the Group.

The loss for the period is
after taking into account:
                                  6 months to      6 months to         Year to
                                 30 June 2003     30 June 2002     31 Dec 2002
                                        £'000            £'000           £'000

Costs incurred in connection
with the settlement of legal
   action and unwinding of 
   joint ventures                           -              111             111
Costs incurred in respect of
the tender offer by, and
   Extraordinary General
   Meeting called by,
   Sunnyview Limited                      122                -              39
                                     ==========          =======        ========

5 DEBTORS
                                 30 June 2003     30 June 2002     31 Dec 2002
                                        £'000            £'000           £'000

Due within one
year                                      571              794             724
Due after one
year: deferred
tax                                       366               90             189
                                     ----------          -------        --------
                                          937              884             913
                                     ==========         ========        ========

6 CREDITORS DUE WITHIN ONE YEAR
                                 30 June 2003     30 June 2002     31 Dec 2002
                                        £'000            £'000           £'000

Bank loans and
overdrafts                              2,942            4,907               -
Other
development
loans                                     565            3,079           1,328
Other
creditors and
accruals                                3,698            1,961           2,598
                                     ----------          -------        --------
                                        7,205            9,947           3,926
                                     ----------          -------        --------

7 PROFIT AND LOSS ACCOUNT
                                  6 months to      6 months to         Year to
                                 30 June 2003     30 June 2002     31 Dec 2002
                                        £'000            £'000           £'000

Brought
forward                                 2,112            2,388           2,388
Transfer from
revaluation
reserve                                   118                -               -
Retained loss
for the period                           (787)            (200)           (276)
                                     ----------          -------        --------
Carried
forward at end
of period                               1,443            2,188           2,112
                                     ==========         ========        ========

8 SHAREHOLDERS' FUNDS
                                  6 months to      6 months to         Year to
                                 30 June 2003     30 June 2002     31 Dec 2002
                                        £'000            £'000           £'000

Loss for the
period                                   (787)            (200)           (103)
Dividends                                   -                -            (173)
Shares issued
in period                                  31                -               -
Revaluation of
investment in
own shares                               (120)             527             431
                                     ----------          -------        --------
                                         (876)             327             155
Brought
forward                                14,958           14,803          14,803
                                     ----------          -------        --------
Carried
forward at end
of period                              14,082           15,130          14,958
                                     ==========         ========        ========


9 STATEMENT OF TOTAL RECOGNISED GAINS AND
LOSSES
                                  6 months to      6 months to         Year to
                                 30 June 2003     30 June 2002     31 Dec 2002
                                        £'000            £'000           £'000

Loss for the
period
attributable
to members                               (787)            (200)           (103)
Revaluation of
investment in
own shares                               (120)             527             431
                                     ----------          -------        --------
Total
recognised
gains and
losses
relating to
the period                               (907)             327             328
                                     ==========         ========        ========

10 RECONCILATION OF OPERATING PROFIT TO OPERATING CASH FLOWS
                                  6 months to      6 months to         Year to
                                 30 June 2003     30 June 2002     31 Dec 2002
                                        £'000            £'000           £'000

Operating
(loss)/profit                            (777)            (213)            469
Depreciation
and
amortisation
of goodwill                                10                -             145
Share of
operating
profits in
joint ventures                             (5)            (417)           (352)
(Increase)/decrease
in work-in-progress                    (1,682)          (1,718)         10,356
Decrease in
debtors                                    46              212             217
Increase/(decrease)
in creditors                            1,176           (1,541)             63
Decrease in
other
provisions                                  -              (94)            (94)
                                     ----------          -------        --------
                                       (1,232)          (3,771)         10,804
                                     ==========         ========        ========

11 LOSS PER SHARE

The loss per ordinary share is based on the loss after taxation and minority
interests and on 79,812,478 (31 December 2002: 79,745,428) ordinary shares being
the weighted average number of ordinary shares in issue during the period. There
is no difference between earnings and fully diluted earnings per share.

DIRECTORS AND COMPANY
INFORMATION

Directors                                Company number
John Parry, Chairman                     2578942 (England and Wales)
Malcolm Bacchus
George Heggie                            Registered office
Claire O'Connor                          10 Dover Street
                                         London W1S 4LQ
Secretary
Badger Hakim Secretaries Limited

A copy of this statement is being sent to all shareholders and further copies
may be obtained from the company by writing to Pathfinder Properties PLC,
Capital House, Michael Road, London SW6 2YH, from the FT Free Annual Reports
Service, details of which can be found in the Financial Times, or from the
Company's website at www.pathfinderplc.com.

For further information, contact:
John Parry, Chairman
Malcolm Bacchus, Director                        Telephone [phone]
Jeremy Carey, Tavistock Communications Limited   Telephone [phone]





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