Interim Report

Property & Capital Group PLC
2 December 1999


PROPERTY & CAPITAL GROUP PLC

Interim report to 6 months to 31 October 1999
HALF YEAR TO 31 OCTOBER 1999: RETURN TO PROFIT

I am pleased to report that in the first half of our 'Year of New Focus'
described  in my last Annual Statement the Group has recorded a post-tax 
profit of  £133,000  -  our  first profit reported since 1997.  At the  same 
time our consolidated  Balance  Sheet has improved by £1,318,000  since  30 
April 1999, without  taking  the  benefit  of negative goodwill  of  £1,244,000
(being the 'discount  to  value'  at which we have made the purchases referred 
to below), which is now carried as a negative figure until the relevant assets
are realised In  the half-year under review we completed the acquisition of
three residential property  investment  companies Raven Fulham Limited (now PCG 
Fulham Limited), Unchained  Growth  III PLC and Unchained Growth IV PLC. The
assets  of  the two Unchained Growth companies have subsequently been
transferred to PCG Residential Limited.

CURRENT ACTIVITY
The  activities  of the Group now comprise residential property  investment 
and management,  administrative  services, corporate finance  (SFA  regulated), 
and registrars and receiving agents.

All  of  these areas reported an operating profit, before financing and tax, 
in the half-year to 31 October 1999.

FUTURE ACTIVITY
We   plan   both  to  expand  our  residential  property  portfolio  by 
further acquisitions,  and at the same time effect a number of disposals to 
rationalise the portfolio and reduce gearing.

Currently  we  have  offers  open for the entire issued  share  capital  of 
the following  three modest residential property companies (the levels of
acceptance in each case 21 days after making the offers also being shown)

Norcity III PLC                          81.66%
Norcity IV PLC                           81.90%
Borders Assured Properties PLC           90.66%

It is significantly to our advantage that in making such offers we have in
house the relevant corporate finance and receiving agent services.

Further substantial  transactions are at advanced  stages  of  negotiation, 
in respect of which shareholders can expect to hear in due course.


R F M Adair
Chairman
2 December 1999

UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT

                      6 months to 6 months to  12 months to
                      31-Oct-99   31-Oct-98    30-Apr-99
                      £000        £000         £000
TURNOVER                                       
Continuing            1,358       877          1,814
operations
Acquisitions            487       -            -
Discontinued             -        683          899
operations            -----       -----        -----
                                               
                      1,845       1,560        2,713
                      -----       -----        -----
OPERATING                                      
PROFIT/(LOSS)
Continuing                                     
operations:
Trading profit          350       (388)        (536)
Goodwill                 (6)      (6)          (12)
amortisation
                                               
Acquisitions:                                  
Trading profit          255       -            -
                                               
Discontinued                                   
operations:
Trading loss             -        (502)        (668)
Goodwill                 -        (171)        (352)
amortisation
Share of operating      (39)      -            -
loss on joint
venture
                      -----       -----        -----
Operating               560       (1,067)      (1,568)
profit/(loss)
                                               
Continuing                                     
operations:
Write down of             -       (50)         (50)
investments
                                               
Discontinued                                   
operations:
Loss on disposal of       -       (406)        (374)
subsidiary
Loss on liquidation       -       -            (2,100)
of subsidiary
                      -----       -----        ------
                      560         (1,523)      (4,092)
Gain on disposal of       1       -            -
investment
properties
Negative goodwill        78       -            -
release
Net interest           (506)      (11)         89
(payable)/receivable
                      ------      ------       ------
PROFIT/(LOSS) ON        133       (1,534)      (4,003)
ORDINARY ACTIVITIES
BEFORE TAX
Taxation                  -       -            (53)
                      ------      ------       ------
PROFIT/(LOSS)           133       (1,534)      (4,056)
ATTRIBUTABLE TO
MEMBERS OF PARENT
COMPANY
Preference share         (5)      (5)          (10)
dividend
                      -----       ------       ------
RESULT FOR PERIOD     128         (1,539)      (4,066)
                      -----       -----        -----
Earnings/(loss) per   3.35p       (43.54)p     (115.02)p
share - basic and
diluted
                      -----       -----        -----
                                               

UNAUDITED SUMMARISED CONSOLIDATED BALANCE SHEET

                      31-Oct-99   31-Oct-98    30-Apr-99
                      £000        £000         £000
FIXED ASSETS                                   

Intangible assets                              
Positive goodwill        216      2,795           221
Negative goodwill     (1,244)     -            -
                      ------      ------       ------
                      (1,028)     2,795           221

Tangible assets                                
Investment properties 15,895      -            -
Other                    186      172             111
Investments                                    
Joint venture             91      -               126
- share of gross
assets
- share of gross         (79)     -               (75)
liabilities
                      -------     ------       ------
                          12      -                51
Other                    101      91               91
                      ------      ------       ------
                         113      91              142
                      ------      ------       ------
                      15,166      3,058           474

CURRENT ASSETS                                 
Debtors                1,441      1,060           565
Cash  at bank and  in    353      48               25
hand
                      ------      ------       ------
                       1,794      1,108           590
CREDITORS:  amounts                            
falling due within
one year
Borrowings               828      904          826
Other creditors        1,035      1,206        746
                      ------      ------       ------
                       1,863      2,110        1,572
                      ------      ------       ------
NET CURRENT           (69)        (1,002)      (982)
LIABILITIES
                      ------      ------       ------
TOTAL ASSETS LESS     15,097      2,056        (508)
CURRENT LIABILITIES
                                               
CREDITORS:  amounts   (14,997)    (766)        (710)
falling due after
more than one year
                      ------      ------       ------
                         100      1,290        (1,218)
                      ------      ------       ------
CAPITAL AND RESERVES                           

Called up share          228      221             221
capital
Deferred                 193      179             193
consideration
Share premium account    653      653             653
Merger reserve           858      1,861        -
Preference   dividend     22      12               17
reserve
Revaluation reserve      320      -            -
Profit and loss       (2,174)     (1,636)      (2,302)
account
                      ------      ------       ------
                         100      1,290        (1,218)
                      ------      ------       ------

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

                      6 months    6 months to  12 months to
                      to
                      31-Oct-99   31-Oct-98    30-Apr-99
                      £000        £000         £000
                                               
Profit/(loss)         133         (1,534)      (4,056)
attributable to
members of the parent
company
Unrealised surplus on 320         -            -
revaluation of
properties
                      ------      ------       ------
Total recognised      453         (1,534)      (4,056)
gains and losses
relating to period
                      ------      ------       ------
                                               


GROUP RECONCILIATION OF SHAREHOLDERS' FUNDS

               6 months to    6 months to    12 months to
               31-Oct-99      31-Oct-98      30-Apr-99
               £000           £000           £000
                                             
Total          453            (1,534)        (4,056)
recognised
gains and
losses
Dividends      -              (5)            (10)
New shares     865            -              -
issued
Deferred       -              (146)          (132)
consideration
Goodwill       -              156            156
reinstated on
disposal
Dividend       -              12             17
creditor
reclassified
               ------         ------         ------
Total          1,318          (1,517)        (4,025)
movements
during the
period
Opening        (1,218)        2,807          2,807
shareholders'
funds
               ------         ------         ------
Closing        100            1,290          (1,218)
shareholders'
funds
               ------         ------         ------
                                             
                                             


NOTES
BASIS OF PREPARATION
The  interim financial statements are unaudited and do not constitute 
statutory accounts  as defined in Section 240 of the Companies Act 1985.  These
statements have  been  prepared  on the basis of the accounting policies  set 
out  in  the Group's 1999 Annual Report and Accounts with the addition of
accounting  policies for  investment  properties and negative goodwill as  set 
out  below  and  were approved by the board of directors on 1 December 1999. 
Financial statements  for the  year  ended  30 April 1999 are abridged
statements; full accounts  with an unqualified audit report have been lodged
with the Registrar of Companies.

INVESTMENT PROPERTIES
Certain of the group's properties are held for long-term investment. Investment
properties are accounted for in accordance with SSAP 19, as follows:

(i)   investment properties are revalued at least annually.   The surplus 
      or deficit on revaluation is transferred to the revaluation reserve       
    unless a deficit below original cost, or its reversal, on an individual     
  investment property is expected to be permanent, in which case it is          
recognised in the profit and loss account for the year;

(ii)  net gains or losses on disposal of investment properties are calculated 
      by reference  to  book  value and included as non operating exceptional 
      items; and(iii) no depreciation is provided in respect of freehold        
    investment properties.
    
Although the Companies Act would normally require the systematic annual
depreciation of fixed assets, the directors believe that the policy of not
providing depreciation is necessary in order for the accounts to give a true and
fair view, since the current value of investment properties, and changes to that
current value, are of prime importance rather than a calculation of systematic
annual depreciation.  Depreciation is only one of the many factors reflected in
the annual valuation, and the amount which might otherwise have been included
cannot be separately identified or quantified.

NEGATIVE GOODWILL
Negative goodwill arising on acquisitions is capitalised, classified as a
negative asset on the balance sheet and released to profit and loss account 
as the related investment property assets are disposed of.

EARNINGS/(LOSS) PER ORDINARY SHARE
The calculation of basic and diluted earnings/(loss) per ordinary share is
based on the following:

                  6 months to    6 months to  12 months to
                  31-Oct-99      31-Oct-98    30-Apr-99
                  £000           £000         £000
                                              
Profit/(deficit)  133            (1,534)      (4,056)
Preference        (5)            (5)          (10
dividend
                  ------         ------       ------
                  128            (1,539)      (4,066)
                  ------         ------       ------
The weighted                                  
average number
of ordinary
shares in issue
during the
period:
                                              
Basic             3,825,512      3,534,395    3,534,395
Dilutive                                      
potential                                     
ordinary shares                               
arising from                                  
share option                                  
schemes           120            -            -
                  --------       --------     -------
                  3,825,632      3,534,395    3,534,395
                  --------       --------     -------

NOTES

REVALUATION OF INVESTMENT PROPERTIES

Investment properties are included in the accounts at valuation.  During the
period the investment properties were revalued on an open market basis as at 31
October  1999 by FPD Savills and Smith Melzack.  The surplus on revaluation was
£320,000.

POST BALANCE SHEET EVENTS
On 2 November 1999  the  Group  made  a recommended  cash  offer  with share
alternative  for the whole issued share capital of Norcity III PLC for a total
consideration of £625,823.

On 2 November  1999  the  Group  made  a recommended  cash  offer  with share
alternative  for the whole issued share capital of Norcity IV PLC  for  a total
consideration of £728,400.

On 8 November 1999 the Group made a recommended cash and share offer  for 
the whole  issued  share  capital  of Borders Assured Properties  PLC  for  a 
total consideration of £181,137.

The  foregoing offers are being funded by shareholders' loan facilities granted
by  trusts  connected  with Robert Adair (pending finalisation  of  medium term
financing).   The  total  amount  of the facilities  is  £1,657,677  which  bear
interest  at  2.5%  above Royal Bank of Scotland base rate and are  repayable on
demand.

HALF-YEARLY REPORT
The half-yearly report will be posted to shareholders on or about 2 December
1999 and copies will be available from the Company Secretary, Property & Capital
Group plc, James Sellars House, 144 West George Street, Glasgow, G2 2HG.

INDEPENDENT REVIEW REPORT TO PROPERTY & CAPITAL GROUP PLC

Introduction

We  have been instructed by the company to review the financial information 
set out  on  pages  2 to 6 and 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.

Directors' responsibilities

The  interim  report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board.  A review consists principally of making
enquiries  of   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 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 1999.

Ernst & Young
Glasgow
2 December 1999