Final Results

Capitaltech PLC
20 August 2002


                                   CapitalTech plc

                 Final Results for the year ended 30 April 2002



CapitalTech plc

CHAIRMAN'S STATEMENT

Year to 30th April 2002

I am pleased to present our results for the year ended 30th April 2002, and to
report that this has been a satisfactory year for the group.

In the year the group made a profit, compared to a substantial loss in the
previous year.

We use the term 'Shareholder Value' to denote the aggregate of Net Asset Value
and Negative Goodwill. Negative Goodwill is the excess of fair value of assets
that we acquire (principally property) over the price we pay to acquire a
property company (or the discount at which we buy a property). A property is
brought into our balance sheet, when acquired, at valuation, but any excess
value over the price paid (the discount) falls to be deducted from our balance
sheet as Negative Goodwill until we sell that property. At the time of sale the
Negative Goodwill is released to the profit and loss account, no matter at what
price the property is sold. Any variation between the price and the carrying
value is treated in the normal way, i.e. profit if we sell above carrying value,
loss if we sell below; but the Negative Goodwill is always, at time of sale,
transferred as a positive figure to the profit and loss account.

In the year to 30th April 2002, Shareholder Value increased from £18,563,892 to
£29,325,977, an increase of £10,762,085, or 58%. This represents Shareholder
Value per share of 39.4p compared to 31.9p last year, an increase of 24% even
although a substantial number of shares were issued in terms of a Rights Issue
at 10p per share.

Balance sheet

I have for some time stated that our objective has been to achieve a solid asset
base.

Clearly, we have substantially achieved this with the increase in Shareholder
Value referred to above.

The value of properties held at the end of the year had increased to £74,931,201
(2001: £49,500,267). This increase reflects both an increase in the value of our
properties and the acquisitions of Portfolio 220 and the Belgrave Portfolio to
which I refer below.

Net debt, being borrowings less cash, at £51,805,403, remained at 69% of
property value, despite our having taken a high level of borrowing to acquire
the Belgrave Portfolio. This percentage was reduced immediately after the year
end on completion of the sale of the property in Belmont Street and Great
Western Road, Glasgow, the price of £3,250,000 being transferred from debtors to
reduce net debt to 65% of property value.

Profit and loss account

I report a pre-tax profit for the year to 30th April 2002 of £53,284 (2001: loss
£4,577,094).

Turnover - primarily rents - increased to £4,847,539 (2001: £4,216,106).

Operating profit increased tenfold from £182,957 in the previous year to
£1,890,441. This reflects that our current portfolio described below, is now
operated efficiently, including cost control, and also reflects reductions in
establishment costs. Interest payable of £2,878,495 (2001: £3,455,574) reflects
efficient use of borrowings and lower interest rates.

Current Portfolio

At end of the previous year, 30th April 2001, our portfolio, which I will call
our 'Original Portfolio', comprised 919 houses and flats throughout the United
Kingdom, with 213 units in Scotland, 313 in the North of England and 393 in the
remainder of England and Wales. Since then we have acquired 'Portfolio 220' -
220 cottage flats in the South and South West of Glasgow, of which, to limit
area exposure, we resold 104 during the year, and the Belgrave Portfolio of 465
flats throughout Scotland, belonging to Belgrave Residential Assets Limited and
Belgrave Residential Investments Limited which we acquired on 27th  November
2001, and from which we sold the 32 low yielding flats in Belmont Street and
Great Western Road, Glasgow, and 3 other units.

With continuing disposals of low yielding property or poorer performing
properties from our Original Portfolio, and with other minor acquisitions, at
the year end our portfolio comprised 1,222 houses and flats. Of these exactly
500 were in England and Wales with 722 in Scotland. We have therefore continued
to shift the balance of the portfolio towards Scotland and the North of England.

A year ago, as at 30th April 2001, the average rental yield from our let English
and Welsh properties was £397 per month. At 30th April 2002 this had increased
to £421 per month. During the first four months of the year, average monthly
occupancy of properties available for letting in our Original Portfolio was
89.5%, but this increased to average 96.05% over the remaining eight months,
ending the year at 97.4%. In respect of our Original Portfolio, rent collected
in each month never fell below 98.1% of rent demanded. These satisfactory
aspects of management, and improvements, have assisted in achieving
profitability.

As regards Portfolio 220 and Belgrave Portfolio we suffered few voids and
performance generally has been wholly acceptable.

The Future

As the group is now proposing to enter into a transaction with Family Trusts in
which I personally have an interest, I will leave our Chief Executive Ross
Macdonald to report on future aspirations.

We follow with interest the various predictions of what will happen to house
prices. We view much of the recent increases as being an adjustment to lower
interest rates. We would not be surprised to see declines in the centre of
London or at the higher value end but would expect to be relatively sheltered
from its effects by our portfolio bias to Scotland and the north.



Robert FM Adair
Chairman

20th August 2002

CapitalTech plc
CHIEF EXECUTIVE'S REPORT


Our year to 30th April 2002 was indeed satisfactory, showing a substantial
increase in shareholder value.

We intend to continue to seek to maintain growth in asset value by good
investment, but your directors are of the view that we cannot expect substantial
revenue profits from the holding of residential property.

Accordingly, your directors have been considering what should be the next step
in the company's development, and believe that this next step should be an
attempt to add material revenue profits to our valuable asset base.

Your independent directors (that is, in view of the proposed transaction, your
directors apart from the Chairman) have been discussing with our Chairman for
some time the possibility of working more closely with Terrace Hill Limited, a
company ultimately owned by your Chairman's family trusts. Indeed, as long ago
as 30th December 1998, you gave your directors authority to proceed with the
purchase from Terrace Hill of Platts Eyot Island in the River Thames, where we
saw an opportunity for residential development, although in the end we felt that
we lacked the necessary development knowledge to proceed at that time.

Your independent directors have continued this discussion with our Chairman, and
I am pleased to report that we have reached an agreement, subject to
shareholders' approval, for the group to merge not only with Terrace Hill
Limited but with its holding companies Westview Group Limited and Westview
Investments Limited, and your Chairman's family's other property interests in
the United Kingdom.

By effecting this proposed merger, not only should we bring together two groups
where Senior Management have known each other well for several years, but we
also add a real prospect of a profit stream being added to the group's
activities.

Finally, as our current activity - letting out residential property - does not
to any extent depend upon the name of our company, whereas on the other hand the
opportunity for Terrace Hill Limited to acquire development projects certainly
does, your directors are also now proposing that the Group be renamed 'Terrace
Hill Group PLC'.


D. Ross Macdonald
Chief Executive

20th August 2002



CapitalTech plc

GROUP PROFIT AND LOSS ACCOUNT 
for the year ended 30th April 2002 
 

                                                                                       2002                 2001
                                                                                          £                    £
TURNOVER
Group:
Ongoing operations                                                                3,185,436            3,002,242
Acquisitions                                                                      1,658,122            1,208,838
                                                                                  4,843,558            4,211,080
Share of joint venture                                                                3,981                5,026

                                                                                  4,847,539            4,216,106

GROUP OPERATING PROFIT /(LOSS)
Ongoing operations                                                                  633,775            (504,385)
Acquisitions                                                                      1,255,988              686,122
                                                                                  1,889,763              181,737
Share of joint venture profit /(loss)                                                   678                1,220

TOTAL OPERATING PROFIT                                                            1,890,441              182,957

Continuing operations:
(Loss)/gain on disposal of other fixed asset investments                            (6,577)             823,333
Net gain/(loss) on disposal of investment property                                1,090,444            (668,843)


Discontinued operations:
 Gain/(loss) on liquidation of former subsidiary                                     2,652             (18,400)
Interest receivable                                                                 56,759              198,002
Net (write off) of provision for unlisted investments                             (101,940)          (1,638,569)
Interest payable                                                                (2,878,495)          (3,455,574)


PROFIT/(LOSS) ON ORDINARY ACTIVITIES

BEFORE TAXATION
Taxation charge                                                                      53,284          (4,577,094)
                                                                                   (27,629)             (27,750)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR                                                 25,655          (4,604,844)
Preference dividend on non-equity shares                                                  -              (8,095)

TRANSFER TO/(FROM) RESERVES                                                          25,655          (4,612,939)

Basic earnings/(loss) per share                                                      0.038p              (9.51p)

Diluted earnings/(loss) per share                                                    0.038p              (9.51p)



CapitalTech plc

GROUP BALANCE SHEET
at 30th April 2002

                                                                                   2002                    2001
                                                                                      £                       £
FIXED ASSETS

Intangible assets
Positive goodwill                                                               371,240                 498,099
Negative goodwill                                                           (4,167,242)               (296,248)

                                                                            (3,796,002)                 201,851
Tangible assets                                                              74,943,556              49,535,151

                                                                             71,147,554              49,737,002

Investments
Joint venture - share of gross assets                                            47,500                  47,500
              - share of gross liabilities                                     (40,211)                (37,884)

                                                                                  7,289                   9,616

Other fixed asset investments                                                   278,581                 861,519

                                                                                285,870                 871,135

                                                                             71,433,424              50,608,137

CURRENT ASSETS
Debtors                                                                       7,038,069               4,485,399
Cash at bank and in hand                                                      1,905,211               1,655,076

                                                                              8,943,280               6,140,475
CREDITORS: amounts falling due within one year                              (4,182,355)            (10,431,348)


NET CURRENT ASSETS/(LIABILITIES)                                              4,760,925             (4,290,873)

TOTAL ASSETS LESS CURRENT LIABILITIES                                        76,194,349              46,317,264

CREDITORS: amounts falling due after more than one year                    (51,035,614)            (28,049,620)

                                                                             25,158,735             18,267,644

CAPITAL AND RESERVES
Called up share capital
Deferred consideration                                                        1,487,073               1,797,704
Share premium account                                                           192,551                 192,551
Revaluation reserves - investment properties                                  9,908,302               8,631,376
                     - other                                                  9,486,716               4,673,334
Capital redemption reserve                                                        4,121                  37,758
Merger reserve                                                                  792,025                 140,997
Profit and loss account                                                       9,281,908               9,281,908
                                                                            (5,993,961)             (6,487,984)

Shareholders' funds:                                                                 

Equity                                                                      25,158,735              17,616,616
Non-equity                                                                           -                 651,028
                                                                            25,158,735              18,267,644



CapitalTech plc

GROUP STATEMENT OF CASH FLOWS
for the year ended 30th April 2002

                                                                               2002                        2001
                                                                                  £                           £

CASH (OUTFLOW)/INFLOW FROM                                                (598,611)                     558,716
 OPERATING ACTIVITIES

RETURNS ON INVESTMENTS AND SERVICING
 OF FINANCE                                                             (4,053,080)                  (2,502,294)

TAXATION                                                                      (970)                   (167,440)

CAPITAL EXPENDITURE AND FINANCIAL
 INVESTMENT                                                              17,101,746                  19,421,307

ACQUISITIONS AND DISPOSALS                                              (5,191,297)                       6,327

EQUITY DIVIDENDS PAID                                                             -                   (144,772)

CASH INFLOW BEFORE LIQUID RESOURCES
 AND FINANCING                                                            7,257,788                  17,171,844

MANAGEMENT OF LIQUID RESOURCES                                                    -                           -

FINANCING                                                                   730,422                (18,526,663)

INCREASE/(DECREASE) IN CASH                                               7,988,210                 (1,354,819)



CapitalTech plc

GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the year ended 30th April 2002

                                                                                  2002                     2001
                                                                                     £                        £
Profit/(loss) attributable to members of the parent company
          excluding share of losses of joint venture company                   27,981               (4,602,776)
Share of joint venture loss for the year                                      (2,326)                   (2,068)

Profit/(loss) attributable to members of the parent company                    25,655               (4,604,844)
Unrealised surplus on revaluation of investment properties                  5,281,750                3,094,402
Unrealised (deficit)/surplus on revaluation of unlisted investments          (33,637)                  (59,421)

TOTAL RECOGNISED GAINS AND LOSSES
  FOR THE YEAR                                                              5,273,768              (1,569,863)


Notes

1.       The financial information set out in this announcement does not
constitute the company's statutory financial statements for the years ended 30
April 2001 and 30 April 2002.

2.       Basis of Preparation

         This financial information is extracted from the audited financial
statements of the group for the year ended 30 April 2002 which were approved by
the board of directors on 20 August 2002.


3.        EARNINGS/(LOSS) PER ORDINARY SHARE

The calculation of basic earnings/(loss) per ordinary share is based on a profit
of £25,655 (2001 loss - £4,612,939), being profit for the year of £25,655 (2001
loss - £4,604,844) plus preference dividends of £nil (2001 - £8,095), and on
66,637,201 (2001 - 48,492,361) ordinary shares, being the weighted average
number of shares in issue during the year.

The calculation for diluted (loss)/earnings per share is unchanged from that for
the basic (loss)/earnings per share as the outstanding share options do not
result in a dilution in either year.

4.       Copies of this announcement are available, free of charge, for a period
of one month from Noble & Company Limited, 1 Frederick's Place, London, EC2R
8AB.  Copies of the full financial statements will be posted to shareholders in
due course.



Contacts:  Ross Macdonald, Chief Executive, CapitalTech Plc      0141 332 2014

           Alasdair Robinson, Noble & Company Limited            0131 225 9677



                      This information is provided by RNS
            The company news service from the London Stock Exchange