Interim Results

Teather & Greenwood Holdings PLC
15 December 2004






For Immediate Release                                         15 December 2004





                        TEATHER & GREENWOOD HOLDINGS PLC

                     ('Teather & Greenwood' or 'the Group')



            INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2004



Teather & Greenwood, one of the UK's leading independent stockbrokers, announces
its interim results for the six months ended 31 October 2004.



Highlights



•   Operating profit increased to £0.9m (2003: £0.4m) on turnover of  £9.6m
    (2003: £9.8m);



•   Profit before tax £0.9 million (2003: £0.6m);



•   Earnings per share up 88% to 1.5p (2003: 0.8p);



•   New office opened in Edinburgh to service principally Scottish
    institutional clients;



•   Corporate Finance team involved in 24 transactions with a total value in
    excess of £900 million including the acquisition of a  20% stake in Geest 
    for Bakkavor Group and the take-private transaction of DFS Furniture by Lord
    Kirkham;



•   Research capability broadened in core areas including media, retail and
    support services with the recruitment of several experienced analysts;



•  Institutional agency business continued to increase with market share in
   both FTSE 100 and the FT All Share Index in   excess of 2%;



•  Investment Funds team increased the number of new brokerships by nine to
   over forty;



•  Sale of all non-core activities completed;



•  Commenting on outlook, Lord Baker, Chairman said:



'In line with our strategy, our institutional agency business is growing
strongly and we are winning new brokerships and mandates at a pleasing rate in
both the small/midcap arena and closed end funds sector. Taking account of the
market's relatively positive mood, we remain confident about the future.'



Enquiries:


Nick Stagg, Chief Executive                                    020 7426 9000

Teather & Greenwood

Richard Darby, Nicola Cronk
Buchanan Communications                                        020 7466 5000



Notes to editors:



Teather & Greenwood Limited is the principal operating company of Teather &
Greenwood Holdings plc, which is quoted on the Official List and which is a
Member of the London Stock Exchange.



Teather & Greenwood Limited provides a range of complementary services focused
on institutional stockbroking and corporate finance advisory services and is
authorised and regulated by the Financial Services Authority.



Teather & Greenwood Limited is the fourth largest corporate broker in the UK to
quoted companies, with 108 corporate brokerships.



For more information on Teather & Greenwood Limited and its services, please
visit the company's website: www.teathers.com.





                           Chairman's Statement



Trading conditions since May 2004 have remained relatively stable.  The summer
months, in line with previous years, were quiet but after the summer vacation
period the market was stronger and we were particularly busy in October.



We are making good progress in implementing the corporate strategy set out in
the Annual Report.  We focus upon institutional stockbroking and corporate
finance advisory services in the mid and small cap sectors together with a large
cap institutional agency business.  We are also a market leader in the closed
end funds sector.



In August we opened a new office in Edinburgh to service principally Scottish
institutional clients with mainly a large cap agency service.  We have continued
to expand this team with the addition of a highly rated analytical presence.



Our equities research team has been strengthened in several core areas including
media, retail and support services.  We now provide research on over 230
companies from FTSE and AIM, and we will continue to expand our coverage.



We have taken the strategic decision to locate all our corporate advisory staff
in London, resulting in the closure of our office in Liverpool.



Since the end of our half-year we have sold our Tax Efficient Solutions business
to Smith and Williamson.  This completes the sale of all non-core activities.
We are now fully focused on our corporate strategy to be 'the UK institutional
broker of choice'.



Management tightly controls costs and the fixed cost base in the first half was
lower than in the corresponding period.  We continue to invest in developing our
core activities to capitalise on the operational gearing of the Group.



Financial Highlights



Turnover for the group for the six months ended 31 October 2004 was £9.6 million
(2003: £9.8 million).  The small decrease in turnover arises from lower profits
in market making (including investment funds) offset by a substantial increase
in corporate finance revenues.  Operating profit increased to £0.9 million
(2003: £0.4 million), while operating costs fell to £8.8 million (2003: £9.4
million).  Earnings per share were 1.5p (2003: 0.8p).



As a result of the closure of the Liverpool office deferred consideration
previously provided of £0.5 million has been released against a write down of
goodwill of £0.3 million.  Operating expenses also include the cost of closure
of the Liverpool office.



The balance sheet as at the 31 October 2004 showed net assets of £9.9 million
(2003: £8.3 million) including cash of £17.7 million (2003: £0.9 million).  The
increase in cash during the period was accounted for largely by settlement
monies held as part of a market operation, amounting to £16.0 million.



The Board is not recommending the payment of an interim dividend (2003: nil).
The future policy will be kept under review.



Business Review



During the first half-year we were involved in 24 corporate transactions with a
total value in excess of £900 million as well as a net gain of four brokerships.
  Our presence in the midcap arena was reinforced by two large market operations
and sole brokership of a take-private.  These comprised the acquisition of a 20%
stake in Geest for Bakkavor Group for approximately £86 million and a 10% stake
in Easyjet for Icelandair for approximately £60 million.  We were sole broker to
Lord Kirkham's private offer vehicle in the take-private of DFS Furniture plc
for £507 million.



Our institutional agency business has continued to increase and our market share
in both FTSE 100 and the FT All Share Index was in excess of 2% which is a
significant improvement over last year.



Our investment funds teams had a successful first half in winning nine new
brokerships, bringing the total number of brokerships to over forty in this
area.



Outlook



In line with our strategy, our institutional agency business is growing strongly
and we are winning new brokerships and mandates at a pleasing rate in both the
small/midcap arena and closed end funds sector.  Taking account of the market's
relatively positive mood, we remain confident about the future.





Lord Baker of Dorking
Chairman
15 December 2004






Consolidated Profit and Loss Account
for the six months ended 31 October 2004


                                                                            6               6
                                                                       months          months         Year
                                                                        ended           ended        ended
                                                                     31/10/04        31/10/03     30/04/04
                                                          Note          £'000           £'000        £'000
                                                                  (Unaudited)     (Unaudited)    (Audited)

Turnover
Continuing operations                                       1           9,625           9,643       18,647
Discontinued operations                                                     -             117          146

Group turnover                                                          9,625           9,760       18,793

Operating costs                                                       (8,765)         (9,355)     (18,163)

Operating profit/(loss)
Continuing operations                                                     860             710        1,070
Discontinued operations                                                     -           (305)        (440)

Group operating profit                                                    860             405          630

(Loss)/Profit on disposal of fixed asset investments                      (5)               1            1
Profit on disposal of discontinued operation                                -             250          820

Profit on ordinary activities before interest                             855             656        1,451
Net interest receivable/(payable)                                           5            (71)        (115)

Profit on ordinary activities before taxation                             860             585        1,336
Taxation on profit on ordinary activities                   6            (12)           (150)        (150)

Profit for the period                                                     848             435        1,186

Profit transferred to reserves                                            848             435        1,186

Earnings per share                                          2            1.5p            0.8p         2.1p
                                                                         

Diluted earnings per share                                  2            1.5p            0.8p         2.1p
                                                                         




Consolidated Balance Sheet
as at 31 October 2004


                                                            31/10/04            31/10/03          30/04/04
                                            Note               £'000               £'000             £'000              
                                                         (Unaudited)         (Unaudited)         (Audited)

Fixed assets
Tangible assets                                                  456               1,132               677
Investments                                                      130                 230               230
Intangible assets                                                  -                 300               250

                                                                 586               1,662             1,157

Current assets
Trading positions                                              4,484               4,586             4,445
Debtors                                                       34,978              90,044            48,200
Cash at bank and in hand                                      17,696                 877             1,258

                                                              57,158              95,507            53,903

Creditors: amounts falling due within                        
one year                                                      47,881              88,405            46,045

Net current assets                                             9,277               7,102             7,858

Total assets less current liabilities                          9,863               8,764             9,015

Creditors: amounts falling due after one                          
year                                                               -                 500                 -

Net assets                                                     9,863               8,264             9,015

Capital and reserves
Called up share capital                                        5,710               5,710             5,710
Share premium account                                          2,418               2,418             2,418
Treasury Reserve                                             (1,185)             (1,185)           (1,185)
Other reserves                                                    14                  14                14
Profit and loss account                                        2,906               1,307             2,058

Equity shareholders' funds                                     9,863               8,264             9,015




Consolidated cash flow statement
for the six months ended 31 October 2004


                                       6 months ended          6 months ended              Year ended
                                         31/10/2004              31/10/2004                30/04/2004
                            Note       £'000         £'000       £'000       £'000                      £'000
                                                                                             £'000

Net cash inflow
from operating activities     3                     16,370                   1,051                      2,085

Returns on investments and
servicing of finance

Interest and other
investment
income received                            2                        78                           5
                                           
Interest paid                            (9)                     (126)                       (119)

Net cash outflow from
returns on
investments and servicing
of finance                                             (7)                    (44)                      (114)

                                                       
Capital expenditure and
financial investment
Receipts from sales of
tangible fixed assets                      -                         1                           1
                                           
Payments to acquire
tangible fixed assets                  (131)                      (22)                        (40)

Payments to acquire
treasury shares                            -                      (17)                        (17)

Receipts from sales of
trade investments                         95                         -                           -
                                         

Net cash outflow from
capital expenditure                                   (36)                    (38)                       (56)
                                                      

Acquisitions and disposals
Receipts from sale of part
of TGIM                                                  -                     250                        820
                                                         

Financing
Issue of ordinary share
capital                                                  -                      17                         17
                                                       

Increase in cash              5                     16,327                   1,236                      2,752









Notes

for the six months ended 31 October 2004





1. Turnover & segmental analysis




                    6 months to 31 October 2004       6 months to 31 October 2003      Year ended to 30 April 2004
                 Continuing  Discontinued    Total Continuing  Discontinued   Total Continuing Discontinued    Total
                 Operations    Operations    £'000 Operations    Operations   £'000 Operations   Operations    £'000
                      £'000         £'000               £'000         £'000              £'000        £'000
Corporate

Finance               2,855             -    2,855      1,491             -   1,491      4,271            -    4,271

Investment
Management            1,041             -    1,041      1,158             -   1,158      2,354            -    2,354
                      

Institutional         4,161             -    4,161      4,623           117   4,740      7,575          146    7,721

Investment
Funds                 1,568             -    1,568      2,371             -   2,371      4,447            -    4,447


Total                 9,625             -    9,625      9,643           117   9,760     18,647          146   18,793





2. Earnings per share

                                  6 months ended             6 months ended               Year ended
                                    31/10/2004                 31/10/2003                 30/04/2004
                                Diluted                   Diluted                    Diluted
                               Earnings    Earnings      Earnings     Earnings      Earnings        Earnings
                                  £'000       £'000         £'000        £'000         £'000           £'000
                                  
Earnings                            848         848           435          435         1,186           1,186
                             
Number of shares             56,754,839  56,071,902    56,891,345   56,235,944    57,144,742      56,051,168            
                                                      
Earnings per share                 1.5p        1.5p          0.8p         0.8p          2.1p            2.1p





Calculation of number of shares at 31 October 2004


At 1 May                     57,095,698    57,095,698    57,034,498   57,034,498    57,034,498    57,034,498

                                                                                                  
Weighted average                      
number of shares
issued in the period                  -             -        19,957       19,957        40,466        40,466

                                                                                                      
Dilutive effect of              
share option schemes            682,937             -       655,401            -     1,093,574             -

Own shares purchased        
and held in EBT             (1,023,796)   (1,023,796)     (818,511)    (818,511)   (1,023,796)   (1,023,796)

At end of period             56,754,839    56,071,902    56,891,345   56,235,944    57,144,742    56,051,168

                                                                                                  



3. Reconciliation of operating profit to net cash inflow from operating
   activities

                                                  6 months ended   6 months ended  12 months to ended
                                                      31/10/2004       31/10/2003          30/04/2004
                                                           £'000            £'000               £'000

Operating profit                                             860              405                 630
Depreciation and amortisation                                602              636               1,158
Decrease/(increase) in trading positions                     165            (718)               (702)
Decrease/(increase) in debtors                            13,222         (34,842)               7,127
Increase/(decrease) in creditors                           1,521           35,570             (6,128)

Net cash inflow from operating activities                 16,370            1,051               2,085




4. Net funds at end of period

Bank balances                                              17,696             877               1,258
Bank overdrafts                                             (368)         (1,392)               (257)

                                                           17,328           (515)               1,001





Bank balances include £16,765,000 (31 October 2003: £85,000) received in the
course of settlement of client bargains, and bank overdrafts include £140,000
(31 October 2003: £313,000) in the course of settlement of client bargains.



5. Combined reconciliation on net cashflow and analysis of movements in net
funds



                                                     At 30/4/2004       Cash flow       At 31/10/2004
                                                                        

                                                            £'000           £'000               £'000
Bank balances                                               1,258          16,438              17,696
Bank overdrafts                                             (257)           (111)               (368)

Total net funds                                             1,001          16,327              17,328               
                                                            





6. Taxation on profit on ordinary activities



The tax charge for the six months ended 31 October 2004 relates to the writing
off of a prior year deferred tax asset.





7. Basis of preparation



The interim figures are unaudited. The accounts for the year to 30 April 2004
are abridged. The periods ended 31 October 2003 and 2004, and the year ended 30
April 2004 do not constitute statutory accounts as defined in Section 240 of the
Companies Act 1985. Statutory accounts for the year ended 30 April 2004 have
been delivered to the Registrar of Companies. These statutory accounts were
audited by Deloitte & Touche LLP and their report thereon was unqualified.
Copies of the interim results are available, free of charge to the public on any
weekday at the registered office of the Company (Beaufort House, 15 St Botolph
Street, London EC3A 7QR).





Independent review report

for the six months ended 31 October 2004





Introduction

We have been instructed by the company to review the financial information for
the six months ended 31 October 2004 which comprises the consolidated profit and
loss account, the consolidated balance sheet, the consolidated cash flow
statement and related notes 1 to 7. We have read the other information contained
in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.



This report is made solely to the company in accordance with Bulletin 1999/4
issued by the Auditing Practices Board. Our work has been undertaken so that we
might state to the company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the company, for our review work, for this report, or for the conclusions we
have formed.



Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures are consistent with
those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.



Review work performed

We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom auditing standards and therefore
provides a lower level of assurance than an audit. Accordingly, we do not
express an audit opinion on the financial information.



Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 October 2004.



Deloitte & Touche LLP
Chartered Accountants
London
15 December 2004








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