Final Results

Capitaltech PLC
25 October 2000

CapitalTech plc

chairman's Statement


Year to 30th April 2000

I have pleasure in presenting our results for the year to 30th April 2000; it
has been a good year for the Group with a substantial turn-round of asset
value, our first annual profit since 1997 and our first dividend declaration
since 1996.


During the year our primary focus was on starting to build a solid asset base
for the Group. From initial negative net assets of £1,218,529 following sale/
closure of service subsidiaries, we effected a turn-round of some £12.5
million, ending the year with positive net assets of £11,317,461. This is a
process which we plan to continue.


This turn-round was achieved as a result of us making a large number of
acquisitions of residential property, mostly by company purchase, several of
them substantial. Residential property has the advantage of being an asset
which can be realised readily, in small or in large parts; rental income is
particularly reliable: it relies on payment, not by few major sources, but,
literally, by hundreds of tenants.


During the year we acquired £80,568,873 of residential investment assets. In
the course of rationalisation we disposed of £35,567,154 of such assets at a
profit after the write back of negative goodwill (which reflects discount on
original purchase). We were considerably assisted in being able to carry out
such a substantial number of major transactions by deriving cost
effectiveness, the ability to move quickly and close knowledge from having our
own service subsidiary companies.


At 30th April 2000 we held 902 residential units. While earlier in the year
the preponderance of value was in London, part of our rationalisation process
was to bias the portfolio more to the north of Britain as we foresaw in London
and the South East a flattening market with the rental yields generally quite
low. Thus, the units held at the end of the year were, very approximately, 25%
in the South of England, with a quarter of those in London, 20% in the
Midlands, 45% in the North of England and 10% in Scotland. At that point we
were particularly keen to increase our holding in the West of Scotland, where
rental yields are very attractive.


At the year end fixed assets amounted to £47,613,056 and net assets to £
11,317,461. Although the Balance Sheet shows net current liabilities, this is
simply because current overdraft included £5,160,743 of property lending from
bankers; were such lending not so included, net current assets would have been
shown as £1,155,931.


Despite the substantial rationalisation, carried out late in the year, we
recorded a profit.


In addition to our substantial investment in residential property, during the
year we made some initial investments in modern technology stocks, about which
I say more below.


I would like to take this opportunity of thanking for his service Julian
Glicher, who retires as a director and does not offer himself for re-election.


Post Year End and Current developments

Since the year end, we have made further substantial residential property
acquisitions, which have added over £9m (unaudited) to our net assets. We
believe that this area of investment has become increasingly attractive as a
number of institutional investors have entered the market. The number of units
held by us now is 1,333 and we have been able to bring our holding in the West
of Scotland up to 231 units.


During the year to 30th April 2000 we had made new technology investments in
Cascadent Communications (Holdings) Inc (then called IPBell) and DiversityNow
Limited, and committed to invest in Telematix Limited. The total invested and
committed at the year end was £938,579. Summary information, and percentage
holdings, are:


Cascadent Communications (Holdings) Inc (1%). An international multimedia
telephony technology company, with strategic funders including Cisco, Hewlett
Packard and Iceland Telecom. Cascadent Communications has started preliminary
work towards a public quotation in the United States.


DiversityNow Limited (1%). A specialist graduate recruitment business,
retained by blue chip clients, in its early stages and making good progress.


Telematix Limited (10%). A company with leading technology in mobile
communications, with products applicable to vehicle location and fleet
management which is now starting to make a sales impact.


Since the year end we have made further investments at a cost of £550,000
cash, and, in respect of Spacetorent plc, as below:


Adrenaline Media plc (5%). This company announced the launch this month of a
global student web-site, designed by Andersen Consulting and with a number of
commercial arrangements in place.


Spacetorent plc (5%). A property management internet company established by
Delancey Estates and its management, and considering an early admission to
trading on AiM. Our interest (plus £200,000 cash) was received in exchange for
a property management subsidiary of nominal book value.


BCL Group (5%). A privately owned recruitment business with an established
turnover of £13 million per annum, now expanding into graduate recruitment
through GraduateBase.com


We continue to look at opportunities, property and non-property, where we
might add further to our shareholder value.


Cash flow is comfortable, thus allowing us to look at further investment
opportunities. In addition to rental receipts and a number of major
transactions, we sell on average each month some £500,000 of vacant flats and
houses which are selected as being better sold at vacant possession value than
re-let. Facilities taken on for the various purchases have already been
reduced from the proceeds of disposals.


The directors are pleased to recommend payment of a first and final dividend
for the year under review of 0.25p per ordinary share. This dividend will be
paid on 4th December 2000 to ordinary shareholders on the register at 10th
November 2000 with the shares becoming ex-dividend on 6th November 2000.


Ordinary Share Price

On 14th September 2000 we acquired the assets and liabilities of three
property unit trusts, by way of Schemes of Amalgamation, in exchange for
ordinary shares which were admitted to trading on 20th September 2000. We had
sought to provide a partial cash alternative for unitholders, but tax
considerations of these unit trusts prevented that. On the additional shares
being admitted to trading, a number of vendors sold shares and the market
makers therefore dropped the share price very substantially. We will, if the
price again falls as low as seen recently, consider share buy-backs, which
will require a special resolution by shareholders.


The Future

On 2nd May 2000 we announced our future strategy, and published 'The
CapitalTech Strategy'. Our strategy as set out therein holds good today and I
can do little better than summarise that strategy.

We shall continue to make property acquisitions where we consider that we can
enhance our net asset value per share and obtain prospects of further growth
with good rental yield. We shall also make selective disposals to balance our
portfolio and improve growth prospects and yield. The foundation of our plan
is to maintain a substantial residential property portfolio of possibly around
£40 million, providing good rental yield to be sufficient to cover all
operating and borrowing costs, and having prospect for capital growth. From
that strength, we shall allocate resources to identify sound private equity
investments.

I look forward with confidence to further increasing shareholder value.

Robert FM Adair

Chairman


25th October 2000

CapitalTech plc

group profit and loss account

for the year ended 30th April 2000

                                                           2000            1999
                                                              £               £
TURNOVER
Group:
Ongoing operations                                    1,935,062       1,813,712
Acquisitions                                          1,933,660               -
Discontinued operations                                       -         899,210
                                                      3,868,722       2,712,922
Share of joint venture                                    3,525               -

                                                      3,872,247       2,712,922
OPERATING PROFIT/(LOSS)
Group:
Ongoing operations                                      184,803       (535,827)
Acquisitions before goodwill amortisation               870,922               -
Positive goodwill - amortisation                       (50,513)        (11,801)
- impairment losses                                   (144,477)               -

Discontinued operations:
Discontinued operations before goodwill amortisation          -       (667,872)
Positive goodwill amortisation                                -       (352,291)

GROUP OPERATING PROFIT/(LOSS)                           860,735               -
Share of joint venture loss                            (34,532)               -

total OPERATING profit/(loss)                           826,203      (1,567,791)

Continuing operations:
Gain on disposal of other fixed asset investments       118,875               -
Net write back/(write off) of provision for unlisted     20,958        (50,095)
investments
Loss on disposal of investment property               (845,859)               -
Negative goodwill release                             1,233,802               -

Discontinued operations:
Loss on disposal of subsidiary                                -       (374,119)
Loss on liquidation of subsidiary                             -      (2,099,915)

Loan stock redeemed below par                           303,347               -
Interest receivable                                     149,113         251,417
Interest payable                                      (1,791,392)      (162,520)

PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE TAXATION     15,047      (4,003,023)
Taxation credit/(charge)                                175,602        (52,532)

profit/(loss) attributable to members of the parent     190,649      (4,055,555)
companY
Preference dividend on non-equity shares               (15,600)         (9,600)
Proposed final ordinary dividend on equity shares     (144,772)               -

SURPLUS/(DEFICIT) FOR THE YEAR                           30,277      (4,065,155)
Earnings/(loss) per share                                 1.69p       (115.02)p
Diluted earnings per share                                1.69p               -


CapitalTech plc

group balance sheet
at 30th April 2000

                                                      2000                 1999

FIXED ASSETS                                             £                    £
Intangible assets
Positive goodwill                                  440,710              221,458
Negative goodwill                                (355,309)                    -

Tangible assets                                     85,401              221,458
                                                47,075,970              110,939

                                                47,161,371              332,397

Investments
Joint venture - share of gross assets               47,500              126,362
- share of gross liabilities                      (35,816)             (75,608)

                                                    11,684               50,754
Other                                              440,001               90,869

                                                   451,685              141,623

                                                47,613,056              474,020
CURRENT ASSETS
Debtors                                          2,990,538              564,427
Cash at bank and in hand                           978,625               25,488

                                                 3,969,163              589,915

CREDITORS: amounts falling due within one year   7,973,975            1,572,610

NET CURRENT liabilities                         (4,004,812)            (982,695)

TOTAL ASSETS LESS CURRENT LIABILITIES           43,608,244            (508,675)

CREDITORS: amounts falling due after more than  32,290,783              709,854
one year

CAPITAL AND RESERVES                            11,317,461          (1,218,529)

Called up share capital                            774,928              220,688
Deferred consideration                             192,551              192,551
Share premium account                              698,331              653,251
Revaluation reserves - investment properties     1,993,930                    -
- other                                             97,179                    -
Capital redemption reserve                           9,500                    -
Merger reserve                                   9,281,908                    -
Preference dividend reserve                              -               16,800
Profit and loss account                         (1,730,866)          (2,301,819)

Shareholders' funds:
Equity                                          11,197,461          (1,385,329)
Non-equity                                         120,000              166,800
                                                11,317,461          (1,218,529)



CapitalTech plc

NOTES


 1. The above results have been extracted from the audited accounts of
    CapitalTech Plc. They do not represent statutory accounts as defined by
    Section 240 of the Companies Act 1985 (as amended). The statutory accounts
    were adopted by the Board of Directors on 25 October 2000 and will be
    filed with the Registrar of Companies. They received an unqualified report
    which did not contain a statement under section 237(2) or 237(3) of the
    Companies Act 1985 (as amended).

 2. Earnings/(Loss) per share is calculated by dividing the earnings
    attributable to ordinary shareholders, by the weighted average number of
    ordinary shares in issue during the year.

      2000   Weighted average    Per-share    1999  Weighted average   Per-share
    Earnings number of shares     amount            number of shares     amount
                                  (pence)    (Loss)                      (pence)
    175,049  10,361,954           1.69    (4,065,155)     3,534,395     (115.02)


    Diluted earnings/(loss) per share are calculated as follows:

     2000 Earnings  Weighted average number of shares   Per-share amount (pence)
        175,049                 10,361,954                         1.69


    The outstanding share options do not result in a diluted loss per share in
    1999.

 3. Copies of the annual Report & Accounts for the Company are being posted to
    shareholders on the 31 October 2000 and may be obtained during the
    following fourteen days, free of charge, from the offices of the Company's
    Nominated Adviser, Noble & Company Limited, 1 Frederick's Place, London,
    EC2R 8AB.


Contacts: Ross Macdonald, CapitalTech Plc: 0141 332 2014

Chris Barker, Noble & Company Limited: 020 7367 5600


25 October 2000