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W.H. Ireland Group (WHI)

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Tuesday 13 March, 2001

W.H. Ireland Group

Final Results - Part 2

W.H. Ireland Group PLC
13 March 2001


NOTES

1     (a) Financial Information


        The financial information in this press release does not constitute
        Statutory Accounts within the meaning of Section 240 of the Companies
        Act 1985.

        The Annual Report and Accounts for the year ended 30 November 2000
        will be the first produced by W H Ireland Group plc, and will be
        delivered to the Registrar of Companies following the company's Annual
        General Meeting. The auditors have reported on these accounts; their
        report is unqualified and did not contain statements under Section 237
        (2) or (3) of the Companies Act 1985. Accounts for W H Ireland Limited
        for the eleven month period ended 30 November 1999 have been filed
        with the Registrar of Companies. The Auditors report thereon contained
        a qualification limited solely to the presentation of gross
        counterparty debtor and creditor balances as at 31 December 1998. No
        audit qualification or statements under Section 237 (2) or (3) were
        made regarding the eleven month period ended 30 November 1999 itself.



     (b) Basis of consolidation


        The consolidated financial statements include the financial statements
        of the company and its subsidiary undertakings made up to 30 November
        2000.

        The merger method of accounting has been adopted. Under this method,
        the results of W.H. Ireland Limited and its subsidiary companies, W.H.
        Ireland Nominees Limited, Fitel Nominees Limited and W.H. Ireland
        Trustees Limited are merged with W.H. Ireland Group plc in the year
        and are included in the consolidated profit and loss account for the
        whole accounting period and for the prior period, not from 7 July 2000
        being the date of the merger.

        A joint venture is an undertaking in which the group has a long-term
        interest and over which it exercises joint control. The group's share
        of the profits of joint ventures is included in the consolidated
        profit and loss account and its interest in their net assets, is
        included in investments in the consolidated balance sheet.

2     Taxation
                                         Year ended 11 months ended 30 November

                                        30 November                        1999

                                               2000
                                                  £                           £

UK corporation tax at an effective tax rate
of 30.5% (1999: 32.6%)

Current tax on income for the period         685,150                    215,521
Adjustments in respect of prior periods      (1,844)                          -

                                             683,306                    215,521



3     Dividends and other appropriations
                          Year ended 30 November    11 months ended 30 November

                                            2000                           1999
                                               £                              £
Equity shares:
                                          62,011                              -
        Interim
        dividend paid

                                         185,667                              -
        Final dividend
        proposed


                                         247,678                              -

4     Earnings per share


        Basic earnings per share is calculated with references to earnings for
        shareholders of £1,555,867 (1999: £445,029) and the weighted average
        number of shares in issue during the year of 12,353,376 (1999
        9,843,346 - as adjusted for the share for share exchange in which 1
        Ordinary share in W H Ireland Limited was exchanged for 10 Ordinary
        shares in W H Ireland Group plc).

        Diluted earnings per share is the basic earnings per share adjusted
        for the effect of the conversion into fully paid shares of the
        weighted average number of all share options outstanding during the
        year. The additional weighted average number of shares used for the
        diluted calculation is 722,674 shares (1999: Nil shares). The diluted
        earnings per share calculation has used a fair value of 133p for the
        value of W H Ireland Group plc shares.

5     Intangible fixed assets
                                                                       Goodwill
                                                                              £
Group
Cost
At beginning of year                                                    238,523
Additions                                                               280,000

At end of year                                                          518,523

Amortisation
At beginning of year                                                     45,717
Charged in year                                                          24,711

At end of year                                                           70,428

Net book value
At 30 November 2000                                                     448,095

At 30 November 1999                                                     192,806


        The directors consider each acquisition separately for the purpose of
        determining the amortisation period of any goodwill that arises.
        Following a review of the useful life of the goodwill associated with
        the acquisition of all businesses, the directors have revised their
        estimate of the useful economic life upward from 10 to 20 years for
        the following reasons:


  * The retention of clients and income generated therefrom, has, in the
    opinion of the directors, been better than anticipated.


        This will decrease the annual amortisation charge in the forthcoming
        and subsequent years by £17,808.

6     Tangible fixed assets
                         Motor             Computers, fixtures and
                         vehicles                         fittings       Total
                                                             

                      
                             £                                  £             £
Group

Cost
At beginning of year   109,065                            684,175       793,240
Additions              115,396                            321,068       436,464
Disposals             (25,694)                                  -      (25,694)

At end of year         198,767                          1,005,243     1,204,010

Depreciation
At beginning of year    43,173                            368,752       411,925
Charge for year         39,380                            148,629       188,009
On disposals          (22,136)                                  -      (22,136)

At end of year          60,417                            517,381       577,798

Net book value
At 30 November 2000    138,350                            487,862       626,212

At 30 November 1999     65,892                            315,423       381,315


Assets purchased under finance leases and hire purchase contracts included in
the above:-


Net book value

At 30 November 2000                      33,404         12,029           45,433

At 30 November 1999                      65,892         37,261          103,153



7     Fixed asset investments
                    Investment in own         Unquoted          Quoted  Total
                               shares      investments     investments
                                    £                £               £      £
Group

Cost

At beginning of                27,577                -               -    27,577
year
Additions                      30,709           75,057         123,757   229,523
Disposals                    (18,000)                -               -  (18,000)

At end of year                 40,286           75,057         123,757   239,100


        Included in unquoted investments are 100,000 shares in the London
        Stock Exchange Limited shown at nil cost. The value of these shares at
        the year end using the closing price quoted on the dealing service
        offered by Cazenove & Co. was £2,393,000.

        The market value of the quoted investments was £134,698.

        In the consolidated financial statements, the interest in the joint
        venture is accounted for using the gross equity method. In the company
        financial statements the interest in the joint venture is accounted
        for at cost less amortisation of goodwill arising on acquisition.

                     Subsidiary undertakings      Interest in            Total

                                                joint venture
                                           £                £                £
Company

Cost

At beginning of year                       -                -                -
Additions                            633,863           57,465          691,328

At end of year                       633,863           57,465          691,328


        The cost of the interest in the joint venture includes goodwill of £Nil.

        The undertakings in which the group's / company's interest at the year
        end is more than 20% are as follows:

                        Country of    Principal                       Class and

                     incorporation     activity                      percentage

                                                                 of shares held
                                                          Group         Company

Subsidiary
undertakings

W H Ireland Limited    England and Stockbroking Ordinary shares Ordinary shares
                             Wales                         100%            100%
W H I Leasing          England and      Leasing Ordinary shares Ordinary shares
Limited                      Wales      company            100%            100%
W H Ireland Nominees   England and      Nominee Ordinary shares               -
Limited                      Wales      company            100%
W H Ireland Trustees   England and      Trustee Ordinary shares               -
Limited                      Wales      company            100%
Fitel Nominees         England and      Nominee Ordinary shares               -
Limited                      Wales      company            100%

Associated undertakings - joint ventures

W H I Securities Pty     Australia Stockbroking Ordinary shares Ordinary shares
Limited                                                     50%             50%

     Employee benefit trust
                                                            2000           1999
                                                               £              £
Cost
At beginning of period                                    27,577         72,000
Additions                                                 30,709              -
Transfers to participants                                (18,000)       (44,423)

At end of period                                          40,286         27,577

Amounts written off
Beginning and end of period                                    -              -

Net book value as at 30 November                          40,286         27,577


        The WH Ireland Employee Benefit Trust was established in October 1998
        for the purpose of holding and distributing shares in the company for
        the benefit of the employees. All costs of the Trust are borne by W H
        Ireland Limited.

        At 30 November 2000, the trust held 130,815 shares in the company
        (1999: 306,410 - as adjusted), representing 0.94% of the called up
        share capital (1999: 2.4%). This was the maximum number held at any
        time during the year. The nominal value of shares purchased in the
        year was £1,220 and the aggregate consideration paid by the company
        was £30,709.

        Associates and joint ventures

        On 31 October 2000 a joint venture was set up in Australia by the
        incorporation of a company called W.H.I. Securities Pty Ltd. W.H.
        Ireland Group plc owns a 50% interest in this joint venture. W H I
        Securities Pty Limited had not traded as at 30 November 2000 and the
        total of the group's profit before taxation from interests in
        associates and joint ventures was £ nil.

        Included below is information regarding W.H. Ireland Group plc's
        interest in the joint venture in W. H. I. Securities Pty Limited.



                                                                           2000
                                                                              £

Turnover                                                                      -
Profit before taxation                                                        -
Taxation                                                                      -
Profit after tax                                                              -

Fixed assets                                                                  -
Current assets                                                           57,465
Liabilities due within one year                                               -
Liabilities due after one year                                                -

8     Called up share capital
                                                                    2000   1999
                                                                       £      £
Authorised
Equity: 30,000,000 (1999 - 1,000,000) Ordinary shares of 5      1,500,000 50,000
pence each

Allotted, called up and fully paid
Equity: 13,959,898 (1999 - 40) Ordinary shares of 5 pence each   697,995      2

Shares to be issued
Equity: 11,002,240 Ordinary shares of 5 pence each                     - 550,112




        The Company was incorporated on 2 November 1999 with an issued share
        capital of 2 ordinary shares of £1 each, having a nominal value of £2.
        On 7 July 2000 each £1 shares was subdivided into 20 shares of 5p
        each.

        On 7 July 2000 the company entered into a share for share exchange
        with W H Ireland Limited where one 50p Ordinary share in W H Ireland
        Limited was exchanged for ten 5p Ordinary shares in W H Ireland Group
        plc. Consequently, on 7 July 2000 12,677,240 Ordinary shares of 5
        pence each became allotted called up and fully paid for.

        On 27 July 2000, 1,282,608 ordinary shares of 5p each having a nominal
        value of £64,131 were issued to the market for £1,475,310.

9     Share premium and reserves
Group
                                               Capital      Share        Profit
                                               Reserve    Premium      and loss
                                                          account       account
                                                     £          £             £
At beginning of year                           447,446          -       859,388
Premium on new shares issued by                                          
W.H. Ireland Limited prior to group                       
reconstruction                                 306,252          -             -

Premium on shares issued, net of issue costs         -  1,055,610             -
Retained profit                                      -          -     1,308,189

At end of year                                 753,698  1,055,610     2,167,577

Company
                                                              Share      Profit
                                                            premium    and loss
                                                            account     account
                                                                  £           £
At beginning of year                                              -           -
Retained profit for the year                                      -     602,295
Premium on share issues, net of issue costs               1,055,610           -

At end of year                                            1,055,610     602,295



10     Analysis of net cash
                                  At beginning      Cash flow         At end of
                                       of year                             year
                                             £              £                 £

Cash in hand, at bank                1,618,540      4,905,369         6,523,909
Overdrafts                             (8,777)          8,777                 -

                                     1,609,763      4,914,146         6,523,909
Debt due after one year               (400,000)      (600,000)       (1,000,000)
Debt due within one year                     -              -                 -
Finance leases                         (81,933)        36,662           (45,271)

Total                                1,127,830      4,350,808         5,478,638