Final Results

Wynnstay Properties PLC
18 June 2002

WYNNSTAY PROPERTIES PLC

18 JUNE 2002





             Wynnstay Properties PLC - 'the Company' or 'Wynnstay'


               Preliminary Results for Year Ended 25th March 2002



Chairman's Statement



I am delighted to present another very satisfactory set of results for the year
ended 25th March 2002 as summarised below:


                                                                                 2002             2001

                                                                                               (Restated)
•         Profit before Property Disposals and Taxation:        + 16.7%       £581,000         £498,000
•         Profit before taxation:                               + 31.9%       £666,000         £505,000
•         Net asset value per share:                            + 6.4%        251p             236p
•         Basic earnings per share:                             + 32.5%       15.5p            11.7p
•         Recommended total dividend per share:                 + 7.1%        6.75p            6.3p





Subject to approval at the Annual General Meeting, the recommended total
dividend of 6.75p per share again represents an increase substantially in excess
of the prevailing inflation rate, thereby providing Shareholders with real
income growth.



At the heart of this continuing improved performance are a number of factors.
Our disposal of some of the smaller, management-intensive properties and the
close attention by management to minimising the risk of tenant defaults and
consequent voids, has meant that we have reduced property costs including rates,
repairs and insurance charges that are incurred on vacant premises as well as
avoiding bad debts.



As I reported at the half-year, we have significantly reduced our ongoing
borrowing costs by negotiating a £7.5 million five year term loan facility with
N.M. Rothschild & Sons Limited.  Although there is an inevitable cost associated
with concluding such an agreement, the ongoing savings in finance costs to the
Company will be very beneficial.  We have further protected the position by
fixing the interest payable on £4 million of the facility throughout its
duration at a very attractive rate, thereby providing certainty over the next
four years.  This is all the more important when it appears likely that interest
rates, now at an historic low, will rise in the foreseeable future.  As to the
balance of the facility, we are actively managing this by repaying borrowings as
we make realisations and generate cash, until this is reinvested.  As a result,
net finance costs last year fell to £395,000 (2001 - £461,000).  Net gearing at
25 March 2002 was 77% (2001 - 83%).



The Company has been required to adopt for the first time the recently
introduced accounting standard FRS 19 which requires that deferred tax should be
provided in full on all timing differences that are not permanent.  Last year's
financial statements have been re-stated in accordance with the provisions of
FRS 19 resulting in a reduction in net asset value of 2p per share in 2001.  The
impact this year, when compared to the previous method of accounting for ACT
receivable, has been to increase the tax charge by £101,000, equivalent to 3p
per share.  I would emphasise, however, that FRS 19 has no impact on the actual
tax we pay.  The new standard has been much criticised by the property sector as
being potentially misleading on account of the resulting provision not
reflecting a true underlying liability as, in reality, capital allowance
clawbacks do not normally arise when properties are sold by property investment
companies such as Wynnstay.  The notes to the accounts show how the deferred tax
provision now made will be written back to the profit and loss account over
future years, assuming the assets concerned remain in the Company's ownership.



As commented on in detail previously, the ongoing programme of selective
disposals continues towards re-orientation of your Company's property portfolio.
  We have disposed of three smaller properties in Cambridge and Epping during
the first half and in Barking prior to the year end which, together, produced
profits of £85,000 for the year.  Your Company's property portfolio was valued
at £14,550,000 at the year end, compared to a figure of £14,145,000 in 2001.



In determining the value of our properties each year, Messrs. Chesterton are
bound by rules laid down by The Royal Institution of Chartered Surveyors which
dictate the method to be adopted.  It is interesting to note that recent
experience shows that when we have sold properties we have been successful in
achieving prices considerably in excess of their corresponding book values.
Indeed, there are indications that, in the present buoyant market, this would
also be the case with a number of our other properties.



I mentioned in my half-year report that we plan to make other selective
disposals to take advantage of the attractive prices currently available, while
seeking to reinvest in properties that will further enhance the portfolio.  Our
major acquisition last year was the property at Crawley, West Sussex on which I
reported at the interim stage.  This is currently operated as a Parceline
sorting depot and is let to a subsidiary of La Poste, the French Post Office.
This quality acquisition, coupled with the other industrial units we purchased
previously in Aldershot and Alton means that, in value terms, we now have 42% of
the portfolio invested in industrial property, 33% in offices and 25% in retail.



Since I wrote to you at this time last year, the FTSE 100 Index has fallen by
approximately 16% and the FTSE AIM Index by approximately 32% and it is not
surprising, therefore, that property companies have become something of a
safe-haven.  In current stock market conditions, the diminishing number of
quoted property companies of Wynnstay's size and structure can be seen as
attractive targets for those with ambitions to acquire them at prices
significantly below the real value of their underlying assets.  Wynnstay is,
perhaps, nowadays a rather unusual quoted company investment. Whilst sentiment
should play no part in investment decisions, our Shareholders should be entitled
to benefit fully from the Company's true value, especially when many of you, as
descendants of the original founders, have held shares for many years.
Property, by its nature, is a longer-term investment and the Directors remain
committed to increasing the value of your Company's assets and to enhancing its
profitability.



Tony Harris, who has been a non-executive Director of Wynnstay for the last
eight years and is now 66, has indicated his desire to retire from the Board at
the conclusion of this year's Annual General Meeting.  Tony has spent all his
working life in the property field and successfully developed the firm of Rogers
Chapman to the point where it is one of the prominent agencies in the burgeoning
Heathrow and West London area.  His detailed knowledge of the finer points of
property investment and management has been invaluable.  We will miss his
expertise as well as his incisive and challenging contributions to our debates.
He will leave with our best wishes for a long and happy retirement with his
wife, Christine, and their family.



In replacing Tony, we have been very fortunate in securing the services of
Charles Delevingne who has today been appointed a Director of the Company.  Like
Tony, Charles who is 52, has spent his whole working life to date in the
property field initially with various well-known estate agencies and for the
last twenty years in successfully building up a substantial private property
company.



The new financial year has commenced satisfactorily with the portfolio fully let
and interest rates currently at lower levels than we have seen for many years.
There remain considerable opportunities for your Company and your Board will
continue to work hard in building on the progress achieved over recent years.



When I wrote to you at the half-year, I urged you all to plan to spend a day in
London on Thursday 25th July and to attend our Annual General Meeting at the
Royal Automobile Club.  It provides an excellent opportunity to meet both other
Shareholders and the Board, to ask questions and to hear about recent
developments in your Company's affairs.



Finally, I would like to thank both our hardworking and loyal full-time staff
and our professional advisers for their contributions in making this another
successful year.  I would also like to thank you, the Shareholders, for your
continuing interest in and support for Wynnstay.




Philip G.H. Collins

Chairman
                                                                       


CONSOLIDATED PROFIT AND LOSS ACCOUNT YEAR ENDED 25TH MARCH 2002

                                                                            2002                2001

                                                                                              Restated
                                                                            £'000               £'000

Gross Rental Income                                                             1,435               1,385
Fees and Commissions                                                               19                  23
                                                                           ----------          ----------
                                                                                1,454               1,408
Property Outgoings                                                                 56                  65
                                                                           ----------          ----------
                                                                                1,398               1,343
Administration and Other Costs                                                    422                 384
                                                                           ----------          ----------
Operating Profit                                                                  976                 959


Profit on Disposal of Investment Properties                                        85                   7
                                                                           ----------          ----------
                                                                                1,061                 966

Finance Costs (Net)                                                               395                 461
                                                                           ----------          ----------
Profit on Ordinary Activities before Taxation                                     666                 505

Taxation on Profit from Ordinary Activities                                       178                 136
                                                                           ----------          ----------
PROFIT AFTER TAXATION ATTRIBUTABLE TO ORDINARY SHAREHOLDERS                       488                 369
                                                                           ==========          ==========
Dividends per share:-

Interim Paid:    2.0p   2001: 1.875p                                               63                  59



Final Payable:   4.75p  2001: 4.425p                                              150                 140

                 -----        ------                                       ----------          ----------

Total:           6.75p        6.3p                                                213                 199

                 ------       ------                                       ----------          ----------

RETAINED PROFIT FOR THE FINANCIAL YEAR
Wynnstay Properties PLC                                                           253                 157
Subsidiary Companies                                                               22                  13
                                                                           ----------          ----------
                                                                                  275                 170
                                                                           ==========          ==========
BASIC EARNINGS PER SHARE                                                        15.5P               11.7P
NORMALISED EARNINGS PER SHARE                                                   13.5P               11.5P






CONSOLIDATED BALANCE SHEET AT 25TH MARCH 2002




                                                                                2002               2001

                                                                                                  Restated
                                                                                £'000              £'000

Fixed Assets
Tangible Assets                                                                    14,578             14,178

Investments                                                                            56                 54
                                                                               ----------         ----------
                                                                                   14,634             14,232
Current Assets
Debtors                                                                               102                 53
Cash at Bank and in Hand                                                              353                180
                                                                               ----------         ----------
                                                                                      455                233

Creditors:  Amounts falling due within one year                                     (686)              (602)
                                                                               ----------         ----------
NET CURRENT LIABILITIES                                                             (231)              (369)
                                                                               ----------         ----------

TOTAL ASSETS LESS CURRENT LIABILITIES                                              14,403             13,863

Creditors:  Amounts falling due after more than one year                          (6,450)            (6,397)
                                                                               ----------         ----------
                                                                                    7,953              7,466

Provisions for liabilities and charges                                               (38)                  -
                                                                               ----------         ----------
                                                                                    7,915              7,466
                                                                               ==========         ==========
Capital and Reserves:
Share Capital                                                                         789                789
Reserves
  Capital Redemption Reserve                                                          205                205
  Share Premium Account                                                             1,135              1,135
  Capital Reserve                                                                     151                151
  Revaluation Reserve                                                               2,836              2,740
                                                                               ----------         ----------
Non-Distributable Reserves                                                          4,327              4,231

Profit and Loss Account                                                             2,799              2,446
                                                                               ----------         ----------
Equity Shareholders' Funds                                                          7,915              7,466
                                                                               ==========         ==========









CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 25TH MARCH 2002




                                                                                2002                  2001
                                                                               £'000                 £'000

CASH FLOW FROM OPERATING ACTIVITIES                                              944                 1,214
                                                                         -----------           -----------

RETURNS ON INVESTMENT AND SERVICING OF FINANCE
Interest Received                                                                 12                    23
Interest Paid                                                                  (374)                 (578)
                                                                         -----------           -----------
NET CASH (OUTFLOW) FROM RETURNS ON INVESTMENT AND SERVICING OF
FINANCE                                                                        (362)                 (555)
                                                                         -----------           -----------

TAXATION PAID                                                                  (121)                 (143)
                                                                         -----------           -----------
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Purchase of Tangible Fixed Assets                                            (1,208)                 (742)
Disposal of Tangible Fixed Assets                                              1,070                    82
Purchase of Sinking Fund Policy Premium                                          (1)                   (1)
                                                                         -----------           -----------
NET CASH (OUTFLOW) FROM INVESTING ACTIVITIES                                   (139)                 (661)
                                                                         -----------           -----------

EQUITY DIVIDENDS PAID                                                          (202)                 (192)
                                                                         -----------           -----------
NET CASH INFLOW/(OUTFLOW) BEFORE FINANCING                                       120                 (337)

FINANCING
Drawdown of Bank Loan                                                          6,450                   700
Repayment of Bank Loan                                                       (6,397)                 (785)
                                                                         -----------           -----------
INCREASE/(DECREASE) IN CASH IN THE PERIOD                                        173                 (422)
                                                                         ===========           ===========

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
Increase/(Decrease) in Cash in the Period                                        173                 (422)
Cash (Outflow)/Inflow from Debt Financing                                       (53)                    85
                                                                         -----------           -----------

Movement in Net Debt in the Period                                               120                 (337)

NET DEBT AT 25TH MARCH 2001                                                  (6,217)               (5,880)
                                                                         -----------           -----------
NET DEBT AT 25TH MARCH 2002                                                  (6,097)               (6,217)
                                                                         ===========           ===========







OTHER FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2002




                                                                                 2002               2001

                                                                                                  Restated
                                                                                £'000              £'000

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

Profit for the Financial Year after Taxation                                          488                369
Taxation on realised revaluation                                                     (11)                  -
Unrealised Surplus on Revaluation of Investment Properties                            185                428
                                                                              -----------        -----------
Total Recognised Gains and Losses for the Year                                        662                797
                                                                                                 ===========
Prior year adjustment                                                                (52)
                                                                              -----------
Total Recognised Gains and Losses since last Annual Report                            610
                                                                              ===========

RECONCILIATION OF MOVEMENT OF SHAREHOLDERS' FUNDS

Opening Shareholders' Funds as at 26th March 2001                                   7,466              6,881
Profit for the Financial Year after Taxation                                          488                369
Dividends                                                                           (213)              (199)
Other recognised gains and losses - as per Statement of Total
Recognised Gains and Losses (as above)                                                174                428
                                                                              -----------        -----------
                                                                                    7,915              7,479

Prior year adjustment                                                                   -                 13
                                                                              -----------        -----------
Closing Shareholders' Funds as at 25th March 2002                                   7,915              7,466
                                                                              ===========        ===========

NOTE OF HISTORICAL COST PROFITS AND LOSSES

Profit on Ordinary Activities before Taxation                                         666                505
Realisation of Property Revaluation Gains on Previous Years                            89                 51
                                                                              -----------        -----------
Historical Cost Profit on Ordinary Activities before Taxation                         755                556
                                                                              ===========        ===========
Historical Cost Profit for the Year Retained after Taxation and
Dividends                                                                             364                221
                                                                              ===========        ===========





Notes



1.  The financial information above does not constitute full accounts within the
meaning of Section 240 Companies Act 1985 as amended (the 'Act').  Full accounts
in respect of the year ended 25th March 2001, on which the auditors reported
without qualification and which contained no statement under Section 237(2) or
(3) of the Act, have been delivered to the Registrar of Companies.



2.  Basic earnings per share have been calculated on profits after taxation
attributable to Shareholders of £488,000 (2001: £369,000) and on 3,155,267
ordinary shares being the weighted average number of shares in issue in both
periods.  Normalised earnings per share have been calculated on profits after
taxation attributable to Shareholders, excluding profit on property disposals,
of £427,000 (2001: £362,000) on the same weighted average 3,155,267 shares.



3.  A final dividend of 4.75p (2001: 4.425p) per share is being recommended and
will be paid on 30th July 2002 to Shareholders on the register at the close of
business on 12th July 2002.



4.  The 2002 Annual Report & Financial Statements will be posted to Shareholders
shortly and copies may be obtained by writing to the Secretary, Wynnstay
Properties PLC, Cleary Court, 21 St. Swithin's Lane, London EC4N 8AD.



5.  The Company's Annual General Meeting will be held at 12 noon on Thursday
25th July 2002 at The Royal Automobile Club, 89 Pall Mall, London SW1Y 5HS.



END







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