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Minerva PLC (MNR)

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Monday 25 February, 2008

Minerva PLC

Interim Results

Minerva PLC
25 February 2008


25 February 2008

                        MINERVA PLC - HALF YEAR RESULTS

Minerva plc, the quoted real estate company, today announces its Half Year
Results for the six months ended 31 December 2007.

Financial highlights
• Investment property revaluation deficit in the period of 14.4 per cent.
• Adjusting for valuation movement of trading properties, total
  revaluation deficit was 1.8 per cent.
• Net asset value per share, reflecting trading properties at cost, of
  266.0 pence (30 June 2007: 327.9 pence).
• Adjusted net asset value per share, reflecting trading properties at
  valuation, of 306.2 pence (30 June 2007: 342.1 pence).
• Loss before tax and investment property revaluation movements of £6.4
  million (2006: £2.3 million).
• Loss after tax of £90.7 million (2006: profit of £14.1 million).
• New project financings in excess of £300 million put in place during the
  period.
• Cash reserves of £110.1 million (30 June 2007: £125.5 million) providing
  security, liquidity and flexibility.

Operational highlights

City of London offices
• The Walbrook, London EC4 - Demolition has been completed and construction is 
  in progress with Skanska as contractor for delivery in December 2009. The show 
  suite is now open and selective marketing has commenced.

• St Botolphs, London EC3 - In January 2008, an initial letting to Lockton 
  International was secured for 84,000 sq.ft.. Show suite is open with marketing 
  continuing. The project completion is scheduled for 2010.

Retail
• Park Place, Croydon - Minerva and Lend Lease continue to work to deliver
  Park Place and revised planning will be submitted in due course as
  discussions continue with John Lewis Partnership as potential anchor tenant.

Residential
• Odeon Kensington, London W8 - Resolution to grant planning consent
  achieved for 100,000 sq.ft. of high-end residential accommodation opposite
  the former Commonwealth Institute and Holland Park.

• Lancaster Gate, London W2 - Demolition programme commenced in Autumn 2007, 
  with first phase completion scheduled for 2010. To date, off-plan sales 
  exchanged for circa 27 per cent of the private accommodation for a
  consideration on completion of greater than £100 million.

Mixed-use
• Ram Brewery, London SW18 - Scheme design finalised and planning application 
  submitted last week for a 1 million sq.ft. mixed-use residential-led scheme.



Salmaan Hasan, Chief Executive of Minerva plc said:

"The last six months has seen the Group continue to make good progress. We have
a diverse development portfolio in core London locations and have achieved a
number of important milestones across our pipeline.

Despite the uncertain market conditions, we have a robust balance sheet, funding
in place for our key developments and a strong cash position to take the
business forward."

                                    - End -

All Enquiries:

Minerva plc
Salmaan Hasan, Chief Executive                          020 7535 1000
Ivan Ezekiel, Finance Director
Tim Garnham, Development Director

Brunswick Group LLP
Simon Sporborg/Tom Williams                             020 7404 5959



                              CHAIRMAN'S STATEMENT

The new financial year saw an adverse change in financial sentiment across the
globe. Despite this, Minerva has had a busy and productive six months as we
continue to make progress in implementing the Group's strategy.

Operating performance

The Group's landmark developments, concentrated in London, have advanced over
the past six months.

Since the half year end there has been good news regarding our City portfolio.
In January we were able to announce that Lockton, United States' largest private
insurance broker, had selected St Botolphs as its new European headquarters. The
achievement of this important milestone allows us to continue the development
with funding in place.

In our residential portfolio, we have achieved two key goals. Firstly, The Royal
Borough of Kensington and Chelsea resolved to grant planning consent for the
redevelopment of the Odeon Cinema site in Kensington; the culmination of over
two years' work. Secondly, I am pleased to report that the Group has
successfully pre-sold approximately £100 million of high-end apartments at our
Lancaster Gate scheme, representing approximately 27 per cent of the scheme.

Further details on progress on these and other developments are set out in the
Business Review.

Financial performance

The strategy to diversify the Group's activities into high-end residential,
which has shown strong growth in the period, has to a large extent offset the
impact of weakening yields in the commercial sector.

The loss after investment property revaluation movements and taxation was £90.7
million for the first six months of the financial year (2006: profit £14.1
million). This excludes the revaluation surplus on our trading properties.

Net asset value per share at 31 December 2007 is 266.0 pence (30 June 2007:
327.9 pence). Adjusted net asset value per share, incorporating the Group's
share of the valuation surplus on our trading properties, is 306.2 pence (30
June 2007: 342.1 pence).

The Board

As indicated in the 2007 Annual Report, John McNeil joined the Board in July
2007 and was followed by John Matthews who joined the Board in September 2007.
The Group will continue to benefit from the experience of Clive Richards and
Christopher Sheridan until they step down from the Board at the 2008 Annual
General Meeting in November. Following this we will look to augment the
non-executive component of the Board.

Outlook

The uncertainties in the financial markets have adversely affected funding of
real estate transactions. Our funding is in place to undertake our projects as
set out in the Business Review. Furthermore, the difficulties facing developers
in the financial markets have also reduced the potential supply of speculative
developments, particularly in The City of London. As a result, our major
projects in The City are expected to be delivered into a more supply-constrained
environment from 2010 onwards.

The high-end residential market has outperformed all other sub-sectors in London
over the past two years and is likely to continue this outperformance in 2008,
particularly in view of the restricted availability of suitable sites.

The Group has a significant portfolio of major developments which our skilled
and dedicated executive team are totally focused on delivering. In addition, we
have the financial resources and expertise available to take advantage of
suitable opportunities when they arise.

Oliver Whitehead
Chairman



                                BUSINESS REVIEW

                               Operational Review

CITY OF LONDON OFFICES

The City of London market overview

The City market during 2007 was a year of contrast.  The first three quarters of
the year showed considerable activity in the market place, both in terms of take
up of office space and rental levels reaching as much as £70 per sq.ft. for
tower buildings.  The final quarter of the year however has witnessed a slowing
down in activity as tenants reviewed their property strategies in the face of a
difficult business environment.  Consequently, take up in the final quarter
amounted to some 1.3 million sq.ft. - 50 per cent of what it was in the previous
quarter.

Coupled with this slowdown, we have seen vacancy rates drifting upwards to some
8.9 million sq.ft. or 7.9 per cent (up from 5.8 per cent in quarter 3) as new
buildings are completed.  Commentators forecast that the City market will see a
vacancy rate of some 10 per cent by the end of 2008 which would then fall to 9
per cent during 2009.  Putting this in context, vacancy rates were in excess of
10 per cent in the four year period from 2002 to 2005.  The next 18 months will
be uncertain, but given the restricted committed speculative new supply and the
natural take-up, a return to the more difficult market conditions that were
experienced in 2003/2004 is not foreseen.

Our City developments are scheduled to complete at the end of 2009 (The
Walbrook) and the Summer of 2010 (St Botolphs) when supply of new office space
is likely to be severely restricted according to current forecasts.  Currently,
Knight Frank estimate that only 0.7 million sq.ft. of speculative new office
space will be completed in 2010. This compares against 3.8 million sq.ft.
completing in this calendar year with 2.4 million sq.ft. being delivered to the
market in 2009, and can be set against an average annual take-up over the last
fifteen years at 6 million sq.ft..

The Walbrook, London EC4

The Walbrook is a development providing some 445,000 sq.ft. of offices and
retail, designed by the renowned architectural practice Foster & Partners, and
is located in the heart of the central business district of The City of London.
A loan facility of £275 million has been provided for this project by Deutsche
Postbank and Nationwide Building Society.

In August 2007 we entered into a design and build contract with Skanska for the
construction of the new building. In terms of progress on site over the past six
months, demolition has been completed and more recently the secant pile walls
together with the capping beam have been installed to the perimeter of the site.
The Museum of London has carried out archaeological investigations across the
site on our behalf and we are pleased to report that this work, which is a
principal risk to all City developments, has now been completed satisfactorily.

The design of the new building incorporates energy generation from renewable
sources in accordance with the Greater London Authority's guidelines. Overall
the design performs very well in design sustainability terms and has achieved
the highest "Excellent" rating under BREEAM (Building Research Establishment
Environmental Assessment Method).

Selective marketing is underway with a marketing suite located close to the
site.

The project is on programme with completion due at the end of 2009.

St Botolphs, London EC3

St Botolphs is a development designed by leading British architects, Grimshaw,
and will provide some 560,000 sq.ft. of high quality offices and retail located
in the eastern district of The City of London, and offers competitive rental
levels for a brand new high quality City office building.

Since the half year end we have achieved a key milestone when we entered into an
agreement for lease with Lockton, the United States' largest privately owned
insurance broker, to lease 84,000 sq.ft. of offices on the first and second
floors of the building, with an option for them to take a further 40,000 sq.ft.
of space prior to practical completion. The lease is for a term of twenty years
at an average rent of £45 per sq.ft.. This pre-letting was sufficient to trigger
the construction, having secured a development funding commitment totalling £315
million from HSH Nordbank and LandesBank Berlin.

We are in advanced discussions with Skanska regarding the placing of a design
and build contract and we hope to complete the arrangements in the next few
weeks. During the course of last year demolition of the existing buildings on
the site took place and currently activity continues with perimeter piling
virtually complete and the capping beam works underway.

The building has been designed to maximise the environmental benefit including,
for example, the generation of energy using photovoltaic panels at roof level.
The design will also be subject to a BREEAM assessment in due course and we
anticipate that the building will achieve a "Very good" rating.

This project is scheduled for completion during the course of 2010.

RETAIL

Market overview

Investor demand for the retail sector has weakened since the Summer, as the
impact of the credit crunch and expectations of slower consumer spending took
hold. As a result, investment yields across all retail sub-sectors and classes
have moved out, with a more marked impact on secondary retail.

A number of substantial retail schemes across the country are due to be
completed and delivered by the end of 2010, but thereafter there is a distinct
reduction in the number of major schemes completing. In Greater London, Park
Place represents the only major centre to be delivered after the Olympics, with
a current estimated completion date of Autumn 2013.

Park Place, Croydon

Set to transform the centre of Croydon, Park Place will create a new shopping
and leisure district for the town. The 900,000 sq.ft. development will include
130 retail outlets, restaurants and cafes and will be anchored by a full-line
department store.

Designed by leading international architects RTKL, this scheme will contain the
large retail units needed to re-establish Croydon as a Top 10 retail destination
within the UK as well as the largest, most modern and contemporary centre within
South London.

As we announced at the beginning of the year, the last of the two pre-conditions
required to sell Lend Lease a 50 per cent stake in Park Place, namely securing
heads of terms with an anchor tenant for a department store, was not met by 31
December 2007. We continue to be in discussions with John Lewis Partnership
regarding a pre-let of the department store. In order to accommodate its
requirements and to refresh the design to ensure that it is at the forefront of
modern retailing, we propose to submit a new planning application within the
next few months.

Together with our development managers, Lend Lease, we have been working closely
with Croydon Council. The recently announced "Third City" master plan for
Croydon paves the way for the inward investment for schemes, including Park
Place, totalling £3.5 billion over the next 10 years.

In line with our Corporate and Social Responsibility Policy, intrinsic to the
proposed revised designs, a sustainability plan will be produced which will
strive to minimise the impact of the development on the town. We will also
address areas such as carbon emissions, recycling of waste material and the
selection of building materials.

HIGH-END RESIDENTIAL

Market overview

Prime Central London residential property remains one of the most valuable
global urban residential markets, despite the current volatility in financial
markets.

The top end of the prime market in Central London continues to be fuelled by
strong demand from international buyers for exclusive properties. This
'ultra-prime' market (+£5 million) has significantly outperformed the rest of
the Central London residential market, with Savills reporting that annual growth
stood at 30 per cent for the year end 2007. Commentators forecast increases in
capital values for 2008 of up to 5 per cent.

It is clear from enquires received that there remains a good level of interest
for the high quality homes we are developing. With the skills of the delivery
and sales teams employed on our projects, we believe that the projects will
generate solid returns and we will continue with our involvement in this sector
so long as good opportunities arise.

Odeon Kensington, London W8

This property was acquired towards the end of 2005 for £24 million, in
partnership with Northacre. The property is currently held freehold with a short
term lease to Odeon Cinemas and contains a development break clause. It is
located in a prime residential area on the south side of Kensington High Street,
opposite the former Commonwealth Institute and just south of Holland Park.

A resolution to grant planning consent was achieved in December 2007, for an
all-private residential scheme of around 100,000 sq.ft. with 35 apartments, 5
town houses, a basement car park, multi-screen cinema and off-site affordable
housing. The Section 106 agreement accompanying the planning permission is
expected to be completed shortly. The Group is now in a position to move this
project forward.

Lancaster Gate, London W2

Since acquiring this property in partnership with Northacre in July 2006 for
£67.2 million, we have achieved planning permission for 192,000 sq.ft. of prime
residential accommodation. This is arranged as 81 residential apartments with
underground parking and 11 affordable residential units.

The private apartments have been designed to cater for the most discerning
buyer, at the 'ultra-prime' end of the market. There will be a wide range of
units, all benefiting from the unique features and setting of the building. It
will be a classic revival project which our partners, Northacre, have
considerable experience in delivering. Construction commenced in Autumn 2007
with the first phase due for completion in 2010. A site loan and construction
facility of £215 million is in place.

Targeted approaches were made to select parties at the end of 2007 and this has
resulted in the sale of approximately 27 per cent of the scheme, generating in
excess of £100 million of future revenue, comfortably ahead of our expectations.
These sales, whilst reducing our exposure to the project, have been achieved at
levels that give your Board confidence that this segment of the market is
attractive and where significant value can be created for shareholders.

Leinster House Hotel, London W2

This property was acquired for £20.25 million in October 2007 and is located
directly opposite our Lancaster Gate scheme. An income is derived from the hotel
through a block-booking agreement with Westminster City Council until 2010.

We will initiate discussions with the planning authorities regarding the
redevelopment potential in due course and we fully expect this scheme to benefit
from the success of the Lancaster Gate development.

MIXED-USE

Ram Brewery, Wandsworth, London SW18

The site consists of the Ram Brewery, Buckhold Road and Capital Studios - in all
amounting to approximately 7.5 acres. In total the acquisition price for the
site amounted to £83.5 million. At 31 December 2007, deferred consideration of
£58.1 million remained outstanding of which £46.5 million was paid in January
2008; the balance will be paid in due course. In this regard, loan financing has
been put in place for these property acquisitions.

The proposed development will be a residential-led mixed-use scheme, using as
its signature the heritage buildings which form part of the site. We have been
working closely with Wandsworth Council, the Greater London Authority and other
stakeholders, including the local community, all of whom have contributed
towards the design development of our project. Last week, we submitted a
planning application for in excess of 1 million sq.ft. of accommodation,
comprising approximately 1,000 apartments and 200,000 sq.ft. of retail,
restaurant and office space.

The scheme aims to achieve high sustainability objectives and provide new
exciting areas for the public including a riverside walkway, two public squares,
dedicated play space and roof gardens. In addition, an appropriate amount of
affordable housing will be incorporated within the development. All the key
heritage buildings will be retained and adapted for retail and restaurant use
and will also include a micro-brewery.

                               Financial Review

Review of results

Basic net asset value per share at 31 December 2007 is 266.0 pence (30 June
2007: 327.9 pence). This excludes the effect of the valuation of our trading and
owner-occupied properties, for which valuation movements are not recognised, in
accordance with the accounting policy of the Group.

Given the significant proportion of trading properties that the Group now holds,
a more relevant measure of the Group's performance is that which reflects the
valuation of the total property portfolio. Adjusted net asset value, which
incorporates the Group's post-tax share of the unrecognised revaluation surplus
on our trading properties and owner-occupied property, is 306.2 pence (30 June
2007: 342.1 pence).

Income statement

Loss before tax for the six months, before property revaluation movements, was
£6.4 million (2006: £2.3 million). After incorporating the property revaluation
movements on our investment portfolio, the loss before tax was £114.6 million
(2006: profit of £15.4 million).

The reduction in net rental income from £4.2 million to £4.1 million is mainly a
result of the development activities being undertaken by the Group, where we
have ceased to receive income from properties now being developed, whilst
benefiting from a reduction in the void costs of operating the properties.

During the period, net financing costs increased from £3.6 million to £4.2
million net of interest capitalisation of £9.2 million (2006: £4.0 million) on
development projects. This partly reflects the higher net debt operated by the
Group as its development activities increase, but also reflects a charge for the
movement in financial instruments of £2.6 million (2006: £0.9 million).

Administrative expenses for the period increased from £3.2 million to £3.5
million. Excluding the share-based payment charge required under IFRS 2 of £0.7
million (2006: £0.3 million), administrative expenses have remained relatively
constant when compared with the corresponding period last year.

The Group's investment property performance has been affected by weakening
investment yields and deteriorating sentiment towards the broader UK Real Estate
sector. This has been reflected in the valuation of our investment properties
which has shown a reduction in the period of £108.2 million (2006: increase of
£17.7 million) after adjusting for acquisitions and expenditure in the period.
The majority of this relates to our investments in The City of London
development projects, The Walbrook and St Botolphs, and our retail regeneration
scheme, Park Place, Croydon.

Our performance, however, in our more recent investments in the high-end
residential market, specifically Lancaster Gate and Odeon Kensington, have
substantially offset the decline in valuations of our investment properties.
This validates our strategy to diversify the Group's portfolio into high-end
residential in London. These two developments have increased in value by £92.0
million (2006: £18.0 million) net of costs expended in the period. They are now
valued at £262.5 million (30 June 2007: £158.0 million).

The corporation tax credit for the period is £23.9 million (2006: charge of £1.3
million) and consists of deferred taxation arising on investment property
revaluation movements in the period as well as on timing differences between the
carrying amounts of the other assets and liabilities in the financial statements
and their corresponding tax bases. The Group has no liability to corporation tax
for the period (2006: £nil).

After incorporating the tax charge, the Group's loss for the period was £90.7
million (2006: profit of £14.1 million).

As in previous years, the Income Statement excludes revaluation surpluses on our
trading and owner-occupied properties. If the Group's post-tax share of the
unrecognised revaluation surplus on these properties were to be recognised, the
adjusted loss after tax and minority interests for the Group would be £53.5
million (2006: profit of £25.6 million).

No dividend has been paid during this financial period.

Balance sheet

The Group's property portfolio has been valued by CB Richard Ellis at 31
December 2007. The investment property portfolio has been valued at £687.9
million (30 June 2007: £729.6 million) and the trading property portfolio at
£262.5 million (30 June 2007: £158.0 million). In aggregate, after adjusting for
acquisitions and expenditure in the period, the portfolio has decreased by 1.8
per cent overall. The investment portfolio has decreased by 14.4 per cent and
the trading portfolio has increased by 58.2 per cent, with the latter being
reflected in the Adjusted net asset value per share.

Net debt at 31 December 2007 was £292.4 million (30 June 2007: £205.7 million),
comprising borrowings of £402.5 million (30 June 2007: £331.2 million) with cash
and short-term deposits of £110.1 million (30 June 2007: £125.5 million). The
increase in net debt during the period of around £86.7 million is principally in
relation to the completion of the acquisitions of Buckhold Road and Leinster
House Hotel as well as expenditure incurred progressing our developments.
Additionally, if we were to include the balance of the deferred consideration
payable in respect of the Ram Brewery site acquisitions of £58.1 million (30
June 2007: £66.6 million), pro forma Group net debt at 31 December 2007 would be
£350.5 million (30 June 2007: £272.3 million).

The Group's investment in joint ventures represents the Group's net investment
in Skypark, Glasgow and Orchard Brae House, Edinburgh, where we have an
effective 25 per cent interest in each. A loss for the period of £2.8 million
(2006: profit of £0.3 million) has been recorded in the Income Statement
reflecting the Group's net effective share of the results, including property
revaluation movements, of these two joint ventures.

Financing

We have over the last six months completed three new financings in relation to
our activities:

  • A £215 million site and development facility for the Lancaster Gate
    development. This loan, which leverages off the increased value following
    the enhanced planning permission obtained in July, has enabled the Group and
    our partner, Northacre, to repatriate all of the equity previously invested
    in the scheme to date, and fully debt finance the development of the scheme
    to completion.

  • A new £106.6 million loan facility to finance the cost of the acquisition
    of the Ram Brewery, Buckhold Road and Capital Studios sites in Wandsworth.
    Using this facility, we have been able to almost entirely finance the
    purchase price of the properties with senior debt, while providing the Group
    with the ability to draw upon further funds when planning is achieved.

  • A £13 million loan facility to fund the acquisition of Leinster House
    Hotel, a future development opportunity.

These financing commitments are in addition to the existing funding arrangements
which permit the development of our City of London projects at The Walbrook and
St Botolphs as referred to earlier.

At 31 December 2007 the average interest cost of debt for the Group, excluding
joint ventures, was 7.1 per cent (30 June 2007: 6.8 per cent). Net gearing,
measured as Group net debt as a proportion of total equity, was 68 per cent at
31 December 2007 (30 June 2007: 39 per cent). Pro forma net gearing, measured in
the same way as above but assuming the remaining consideration for the Ram
Brewery site acquisitions was paid at 31 December 2007, would be 82 per cent (30
June 2007: 51 per cent). Adjusted pro forma net gearing measured in the same way
as pro forma net gearing above but based on adjusted net assets would be 71 per
cent (30 June 2007: 49 per cent).

                         Key Risks and Uncertainties

The risks facing the Group for the remaining six months of the financial year
are consistent with those outlined in the Annual Report for the year ended 30
June 2007.

                   Statement of Directors' Responsibilities

The Directors confirm that this condensed set of financial statements has been
prepared in accordance with IAS 34 as adopted by the European Union, and that
the Chairman's Statement and Business Review herein include a fair review of the
information required by 4.2.7 and 4.2.8 of the Disclosure and Transparency Rules
of the United Kingdom's Financial Services Authority.

The Directors are also responsible for maintaining the integrity of the Group's
website. Information published on the internet is accessible in many countries
with different legal requirements relating to the preparation and dissemination
of financial statements. UK legislation governing preparation and dissemination
of financial statements may therefore differ from that in other jurisdictions.

The Directors of Minerva plc are listed in the 2007 Annual Report and have been
Directors throughout the period with the exception of John McNeil and John
Matthews who were appointed on 16 July 2007 and 17 September 2007, respectively.

By order of the Board
Salmaan Hasan
Chief Executive

                    INDEPENDENT REVIEW REPORT TO MINERVA PLC                    

Introduction

We have been engaged by the Company to review the condensed set of financial
statements in the Half Year Report for the six months ended 31 December 2007,
which comprises the consolidated income statement, consolidated balance sheet,
consolidated statement of changes in equity, consolidated cash flow statement
and related notes. We have read the other information contained in the Half Year
Report and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.

Directors' responsibilities

The Half Year Report is the responsibility of, and has been approved by, the
Directors. The Directors are responsible for preparing the Half Year Report in
accordance with the Disclosure and Transparency Rules of the United Kingdom's
Financial Services Authority.

As disclosed in note 1, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this Half Year Report has been
prepared in accordance with International Accounting Standard 34, 'Interim
Financial Reporting', as adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the Half Year Report based on our review. This
report, including the conclusion, has been prepared for and only for the Company
for the purpose of the Disclosure and Transparency Rules of the Financial
Services Authority and for no other purpose. We do not, in producing this
report, accept or assume responsibility for any other purpose or to any other
person to whom this report is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing.

Scope of review

We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the Half Year Report for the
six months ended 31 December 2007 is not prepared, in all material respects, in
accordance with International Accounting Standard 34 as adopted by the European
Union and the Disclosure and Transparency Rules of the United Kingdom's
Financial Services Authority.

PricewaterhouseCoopers LLP
Chartered Accountants
25 February 2008
London

CONSOLIDATED INCOME STATEMENT
For the six months ended 31 December 2007

                                        (Unaudited)    (Unaudited)    (Audited)
                                     Six months to  Six months to      Year to
                                       31 December    31 December      30 June
                                              2007           2006         2007
                                Note         £'000          £'000        £'000
                                           --------      --------     --------

Continuing operations
Revenue                           2          5,714          6,521       12,448
Property outgoings                2         (1,614)        (2,352)      (3,303)
                                           --------      --------     --------
Net rental income                 2          4,100          4,169        9,145
Administrative expenses                     (3,534)        (3,155)      (7,798)
Other income                                    39             46           93
Movement on revaluation of
investment properties             7       (108,210)        17,744       17,358
                                           --------      --------     --------
Operating (loss)/profit                   (107,605)        18,804       18,798
                                           --------      --------     --------
Finance costs                     3        |(7,958)|     |(7,513)|   |(12,188)|
Finance income                    4        | 3,788 |     | 3,856 |   |  9,516 |
Income relating to early loan              |       |     |       |   |        |
repayments                                 |     - |     |    36 |   |     36 |
                                           --------      --------     --------
Net finance costs                           (4,170)        (3,621)      (2,636)
Share of post tax (loss)/profit
of joint ventures                 9         (2,792)           257          101
                                           --------      --------     --------
(Loss)/profit before taxation             (114,567)        15,440       16,263
Taxation credit/(charge)          5         23,882         (1,309)       2,389
                                           --------      --------     --------
(Loss)/profit for the period     17        (90,685)        14,131       18,652
                                           --------      --------     --------

Attributable to:
Equity shareholders                        (90,685)        14,131       18,652
Minority interest                                -              -            -
                                           --------      --------     --------
(Loss)/profit for the period               (90,685)        14,131       18,652
                                           --------      --------     --------

(Loss)/earnings per share
Basic                             6         (56.3)p          8.8p        11.6p
                                           --------      --------     --------
Diluted                           6         (56.3)p          8.7p        11.5p
                                           --------      --------     --------



CONSOLIDATED BALANCE SHEET
As at 31 December 2007

                                        (Unaudited)    (Unaudited)    (Audited)
                                             As at          As at        As at
                                       31 December    31 December      30 June
                                              2007           2006         2007
                                Note         £'000          £'000        £'000
                                           -------        -------      -------
Assets
Non-current assets
Investment properties             7        689,084        684,993      730,763
Property, plant and equipment     8          9,488          9,025        9,136
Investment in joint ventures      9          3,773          6,320        6,964
Derivative financial instruments 13          1,964          3,880       11,640
Other financial assets                         276            276          276
                                           -------       --------      -------
                                           704,585        704,494      758,779
                                           -------       --------      -------
Current assets
Trading properties               10        120,115        101,190      107,618
Trade and other receivables      11         13,400         12,352        7,117
Cash and cash equivalents                  110,077        154,900      125,491
                                           -------       --------      -------
                                           243,592        268,442      240,226
                                           -------        -------      -------
Total assets                               948,177        972,936      999,005
                                           -------        -------      ------- 
Liabilities
Current liabilities
Trade and other payables         12        (96,153)       (29,851)     (83,012)
Borrowings                       13        (47,248)       (19,655)     (62,551)
                                           -------        -------      -------
                                          (143,401)       (49,506)    (145,563)
                                           -------        -------      -------
Non-current liabilities
Other payables                   14              -        (49,854)     (12,434)
Borrowings                       13       (355,207)      (308,571)    (268,608)
Derivative financial instruments 13         (5,897)        (2,432)           -
Deferred tax                     15        (14,296)       (43,291)     (41,821)
                                           -------        -------      -------
                                          (375,400)      (404,148)    (322,863)
                                           -------        -------      -------
Total liabilities                         (518,801)      (453,654)    (468,426)
                                           -------        -------      -------
Net assets                                 429,376        519,282      530,579
                                           -------        -------      -------

Equity
Called up share capital          16         40,294         40,289       40,294
Share premium account            17        198,422        198,391      198,422
Other reserves                   17         38,611         42,384       48,414
Retained earnings                17        151,353        236,293      241,326
                                           -------        -------      -------
Total shareholders' equity                 428,680        517,357      528,456
Minority interest                18            696          1,925        2,123
                                           -------        -------      -------
Total equity                               429,376        519,282      530,579
                                           -------        -------      -------

Net asset value per share
Basic                            19          266.0p         321.0p       327.9p
                                            -------        -------      -------
Diluted                          19          265.9p         319.2p       325.0p
                                            -------        -------      -------
Adjusted                         19          306.2p         328.0p       342.1p
                                            -------        -------      -------



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2007

                                       (Unaudited)     (Unaudited)    (Audited)
                                     Six months to  Six months to      Year to
                                       31 December    31 December      30 June
                                              2007           2006         2007
                                  
                               Note          £'000          £'000        £'000
                                            -------        -------      -------
                                      
Opening total equity                       530,579        502,325      502,325
Movement in fair value of
derivative financial
instruments                      13        (13,009)         1,439        9,421
New share capital issued                         -             73          109
Share-based payment              17            712            254          766
Share of joint ventures'
movement in fair value of
derivative financial instruments  9           (437)            97          373
Movement in minority interest    18         (1,427)         1,395        1,593
Tax on items directly taken
to equity                                    3,643           (432)      (2,660)
(Loss)/profit for the period
attributable to equity
shareholders                               (90,685)        14,131       18,652
                                           -------        -------      -------                                          
Closing total equity                       429,376        519,282      530,579
                                           -------        -------      -------
                                           

CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 December 2007

                                 (Unaudited)        (Unaudited)       (Audited)
                              Six months to      Six months to         Year to
                                31 December        31 December         30 June
                                       2007               2006            2007
                        Note          £'000              £'000           £'000
                                    -------            -------         -------
Cash flows from 
operations                21        (11,487)           (39,953)        (36,817)
Interest received                     3,879              3,652           7,337
Interest paid                        (5,491)            (9,279)        (14,909)
UK corporation tax                        -                  -               -
                                    -------            -------         -------
Cash flows from 
operating activities                (13,099)           (45,580)        (44,389)
                                    -------            -------         -------
Investing activities
Additions to 
investment properties               (66,902)           (25,489)        (53,319)
Additions to property, 
plant and equipment                    (419)               (78)           (352)
Receipts from sale of
derivative financial
instruments                               -                138             138
Receipts from sale of 
property, plant and equipment            80                 40             100
Investment in joint ventures            (38)            (2,043)         (2,567)
                                    -------            -------         -------
Cash flows from
investing activities                (67,279)           (27,432)        (56,000)
                                    -------            -------         -------

Financing activities
Issue of share capital                    -                 73             109
Equity dividends paid                     -                  -              (3)
New loans                           113,196             99,262          99,507
Issue costs of loans                 (1,043)            (1,036)         (1,446)
Equity (repayment
to)/contribution from
minority interest                      (831)               698             998
Repayment of loans                  (46,358)           (32,337)        (34,537)
Cost of early loan
repayments                                -               (388)           (388)
                                    -------            -------         ------- 
Cash flows from
financing activities                 64,964             66,272          64,240
                                    -------            -------         -------

Net decrease in cash
and cash equivalents                (15,414)            (6,740)        (36,149)
Cash and cash
equivalents at
beginning of period                 125,491            161,640         161,640
                                    -------            -------         -------                                    
Cash and cash equivalents 
at end of period                    110,077            154,900         125,491
                                    -------            -------         -------                           


NOTES TO THE ACCOUNTS


1. Basis of preparation

The condensed consolidated financial information included in the Half Year
Report, for the six months ended 31 December 2007, has been prepared in
accordance with the Disclosure and Transparency Rules of the Financial Services
Authority and with IAS 34 'Interim financial reporting' as adopted by the
European Union ("EU"). The Half Year Report should be read in conjunction with
the Group's Annual Report and Accounts for the year ended 30 June 2007, which
have been prepared in accordance with International Financial Reporting
Standards ("IFRS's") as adopted by the EU.


The Half Year Report does not constitute statutory accounts within the meaning
of Section 240 of the Companies Act 1985. Statutory accounts for the year ended
30 June 2007 have been delivered to the Registrar of Companies and the report of
the auditors on these financial statements was unqualified and did not contain a
statement under either Section 237(2) or Section 237(3) of the Companies Act
1985.


The accounting policies adopted are consistent with those of the Group's Annual
Report and Accounts for the year ended 30 June 2007, as described in those
financial statements.


The following new standards, amendments to standards or interpretations are
mandatory for the first time for the financial year ended 30 June 2008:


      - IFRS 7, 'Financial instruments: Disclosures' and the complementary
        amendment to IAS 1, Presentation of financial statements. The full IFRS
        disclosures will be given in the Group's Annual Report and Accounts for 
        the year ending 30 June 2008;
      - IFRIC 11, 'IFRS 2 - Group and treasury share transactions'.

The following standards and interpretations, although effective for the year
ending 30 June 2008, do not have an impact on the Group:

      - IFRIC 10, 'Interim financial reporting and impairment'.

The following new standards, amendments to standards and interpretations have
been issued, but are not effective for the year ending 30 June 2008 and have not
been adopted early by the Group:

      - IAS 23 (Amendment) 'Borrowing costs';
      - IFRS 8, 'Operating segments';
      - IFRIC 12, 'Service concession arrangements';
      - IFRIC 13, 'Customer loyalty programmes'.


2. Net rental income

                             (Unaudited)          (Unaudited)          (Audited) 
                          Six months to        Six months to            Year to
                           31  December         31  December            30 June 
                                   2007                 2006               2007
                                  £'000                £'000              £'000
                              ---------            ---------           --------                          
Rental income                     5,466                6,199             11,690
Recoverable property expenses       248                  322                758
                              ---------            ---------           --------
Revenue                           5,714                6,521             12,448
                              ---------            ---------           --------
Net property outgoings           (1,366)              (2,030)            (2,545)
Recoverable property expenses      (248)                (322)              (758)
                              ---------            ---------           --------
Property outgoings               (1,614)              (2,352)            (3,303)
                              ---------            ---------           --------
Revenue                           5,714                6,521             12,448
Property outgoings               (1,614)              (2,352)            (3,303)
                              ---------            ---------           --------
Net rental income                 4,100                4,169              9,145
                              ---------            ---------           --------



The Group operates in one business segment in Great Britain and as such no
segmental information is provided.



3. Finance costs
                             (Unaudited)          (Unaudited)          (Audited) 
                          Six months to        Six months to            Year to
                            31 December          31 December            30 June 
                                   2007                 2006               2007
                                  £'000                £'000              £'000
                              ---------            ---------           --------
Bank interest and charges        13,424               10,216             21,112
Amortisation of loan issue
costs                             1,062                  304                842
Fair value loss on derivative
financial instruments             2,564                  364                  -
Loss on sale of derivative
financial instruments                 -                  555                555
Interest on obligations
under finance leases                 75                   75                151
Capitalised interest and
similar charges                  (9,167)              (4,001)           (10,472)
                              ---------            ---------           --------
                                  7,958                7,513             12,188
                              ---------            ---------           --------



4. Finance income

           
                             (Unaudited)          (Unaudited)          (Audited) 
                          Six months to        Six months to            Year to
                            31 December          31 December            30 June 
                                   2007                 2006               2007
                                  £'000                £'000              £'000
                              ---------            ---------           --------
Bank interest                     3,745                3,848              7,632
Other interest receivable            43                    8                 38
Fair value gain on derivative
financial instruments                 -                    -              1,846
                              ---------            ---------           --------
                                  3,788                3,856              9,516
                              ---------            ---------           --------



5. Taxation
                             (Unaudited)          (Unaudited)          (Audited)
                          Six months to        Six months to            Year to
                            31 December          31 December            30 June 
                                   2007                 2006               2007
                                  £'000                £'000              £'000
                              ---------            ---------           --------
Corporation tax                       -                    -                  -
Deferred tax (credit)/charge    (23,882)               1,309             (2,389)
                              ---------            ---------           --------
                                (23,882)               1,309             (2,389)
                              ---------            ---------           --------



                             (Unaudited)          (Unaudited)          (Audited)
                          Six months to        Six months to            Year to
                            31 December          31 December            30 June 
                                   2007                 2006               2007
                                  £'000                £'000              £'000
                              ---------            ---------           --------
(Loss)/profit on ordinary
activities before taxation     (114,567)              15,440             16,263
                              ---------            ---------           --------

Tax on (loss)/profit on 
ordinary activities at 
30 per cent                     (34,370)               4,632              4,879
Expenses not deductible for 
tax purposes                        179                  137                368
Accelerated capital allowances      (58)                 (20)               (43)
Differences arising from taxation
of chargeable gains and property
revaluations                      9,358               (4,909)            (6,046)
Joint ventures' results 
recognised net of tax               837                  (77)               (30)
Adjustments for change in                                             
substantively enacted corporation
tax rate                              -                    -             (2,277)
Tax losses and other temporary
differences                         172                1,546                760
                              ---------            ---------           --------
Taxation (credit)/charge for 
the period                      (23,882)               1,309             (2,389)
                              ---------            ---------           --------


6. (Loss)/earnings per share

(Loss)/earnings per share is calculated on a weighted average of 161,174,373
ordinary shares of 25 pence each in issue throughout the period (year to 30 June
2007: 161,144,986 ordinary shares; six months to 31 December 2006: 161,118,780
ordinary shares) and is based on loss attributable to ordinary shareholders of
£90,685,000 (year to 30 June 2007: profit of £18,652,000; six months to 31
December 2006: profit of £14,131,000).


Due to the loss in the period, share options and incentive awards do not have a
dilutive effect. In prior periods the diluted earnings per share was calculated
after allowing for the potential exercise of employee share options and
incentive awards and was based on 162,595,811 ordinary shares of 25 pence each
for the year to 30 June 2007 and 162,018,775 ordinary shares for the six months
to 31 December 2006.


7. Investment properties
                                   (Unaudited)       (Unaudited)      (Audited)
                                        As at             As at          As at
                                  31 December       31 December        30 June
                                         2007              2006           2007
                                        £'000             £'000          £'000
                                      -------           -------        -------
At beginning of period: 
Net book value                       730,763           580,150         580,150
Acquisitions                          21,810            72,486          87,820
Additions                             44,721            14,613          45,435
Revaluation movement                (108,210)           17,744          17,358
                                      -------           -------        -------
At end of period: 
Net book value                       689,084           684,993         730,763
Recognition of finance 
lease obligations                     (2,132)           (2,135)         (2,134)
Amounts included within
prepayments and accrued income           928             1,052             974
                                      -------           -------        -------
At the end of period: Valuation      687,880           683,910         729,603
                                      -------           -------        -------

The investment properties were valued on an open market value basis by CB
Richard Ellis Limited, independent external valuers, as at 31 December 2007 in
accordance with the current edition of the Appraisal and Valuation Standards
issued by the Royal Institution of Chartered Surveyors. The total amount of
interest capitalised as part of the cost of investment properties was
£18,810,000 (30 June 2007: £13,488,000; 31 December 2006: £9,163,000).




8. Property, plant and equipment


                  Owner-occupied    Fixtures and             Motor      Total
                        property        fittings          vehicles
                           £'000           £'000             £'000      £'000
                         -------         -------           -------    -------
Valuation/cost
At 1 July 2007             8,747           1,681               670     11,098
Additions                    402              32                94        528
Disposals                     -            (159)             (194)      (353)
                         -------         -------           -------    -------
At 31 December 2007        9,149           1,554               570     11,273
                         -------         -------           -------    -------
Depreciation
At 1 July 2007               113           1,542               307      1,962
Depreciation charge           43              23                80        146
Disposals                      -           (159)             (164)      (323)
                         -------         -------           -------    -------
At 31 December 2007          156           1,406               223      1,785
                         -------         -------           -------    -------
Net book value
at 31 December 2007        8,993             148               347      9,488
                         -------         -------           -------    -------
Net book value
at 30 June 2007            8,634             139               363      9,136
                         -------         -------           -------    -------


The owner-occupied property was valued on an open market value basis by CB
Richard Ellis Limited, independent external valuers, as at 31 December 2007 in
accordance with the current edition of the Appraisal and Valuation Standards
issued by the Royal Institution of Chartered Surveyors. The valuation of
owner-occupied property at 31 December 2007 is £12,800,000 (30 June 2007:
£13,100,000; 31 December 2006: £12,000,000).



9. Investment in joint ventures



                                (Unaudited)         (Unaudited)        (Audited)
                                      As at               As at            As at
                                31 December         31 December          30 June
                                       2007                2006             2007
                                      £'000               £'000            £'000
                                    -------             -------          ------- 
At beginning of period                6,964               3,923            3,923
Additions                                38               2,043            2,567
Share of post tax (loss)/profit      (2,792)                257              101
Movement in fair value of
financial instruments
recognised in equity                   (437)                 97              373
                                    -------             -------          ------- 
At end of period                      3,773               6,320            6,964
                                    -------             -------          ------- 

The Group's 25 per cent share of the net assets of joint ventures at 31 December
2007 is as follows:

                                (Unaudited)         (Unaudited)        (Audited)
                                      As at               As at            As at
                                31 December         31 December          30 June
                                       2007                2006             2007
                                      £'000               £'000            £'000
                                    -------             -------          ------- 
Property assets                      30,438              31,334           32,594
Other non-current assets                222                 430              996
Current assets                        1,530                 799            1,952
                                    -------             -------          ------- 
Gross assets                         32,190              32,563           35,542
Current liabilities                  (1,731)            (1,658)          (1,568)
Borrowings                         (26,686)            (24,456)         (26,599)
Other non-current liabilities            -                (129)            (411)
                                    -------             -------          ------- 
Gross liabilities                  (28,417)            (26,243)         (28,578)
                                    -------             -------          ------- 
Group share of net assets             3,773               6,320            6,964
                                    -------             -------          ------- 


The Group's interest in joint ventures comprises a 25 per cent interest in the
properties known as Skypark and Orchard Brae House, located in Glasgow and
Edinburgh respectively. Both investment properties are held through joint
venture vehicles which have as their main activity property investment or
investment holding and operate and are registered in Great Britain. The
investment properties were valued on an open market value basis by GVA Grimley
LLP, independent external valuers, as at 31 December 2007 in accordance with the
current edition of the Appraisal and Valuation Standards issued by the Royal
Institution of Chartered Surveyors.



10. Trading properties
                                (Unaudited)         (Unaudited)        (Audited)
                                      As at               As at            As at
                                31 December         31 December          30 June
                                       2007                2006             2007
                                      £'000               £'000            £'000
                                    -------             -------          ------- 
At beginning of period              107,618              26,933           26,933
Additions                            12,497              74,257           80,685
                                    -------             -------          ------- 
At end of period: Book value        120,115             101,190          107,618
                                    -------             -------          ------- 
At end of period: Valuation         262,500             119,200          158,000
                                    -------             -------          ------- 



Trading properties comprise the Odeon Kensington and Lancaster Gate, which have
been stated at cost in the consolidated balance sheet, but have been valued by
CB Richard Ellis Limited at 31 December 2007 at £262,500,000 in aggregate. The
total amount of interest capitalised as part of the cost of the properties was
£7,740,000 (30 June 2007: £3,895,000; 31 December 2006: £1,749,000).


Both properties were acquired by the Group, in partnership with residential
developer, Northacre plc who act as development manager.  The Group holds a 95
per cent interest in both ventures, with Northacre also able to earn a range of
returns, of up to 50 per cent in the case of Lancaster Gate and 60 per cent in
the case of the Odeon Kensington, on the incremental profits above pre-agreed
thresholds.




11. Trade and other receivables

                                                                     
                                 (Unaudited)        (Unaudited)        (Audited)
                                      As at               As at            As at
                                31 December         31 December          30 June 
                                       2007                2006             2007
                                      £'000               £'000            £'000
                                    -------             -------          ------- 
Trade receivables                     1,460               2,329              969
Other receivables                     9,066               6,594            2,908
Prepayments and accrued income        2,874               3,429            3,240
                                    -------             -------          ------- 
                                     13,400              12,352            7,117
                                    -------             -------          ------- 



12. Trade and other payables

                                 (Unaudited)        (Unaudited)        (Audited)
                                      As at              As at            As at
                                31 December        31 December          30 June 
                                       2007               2006             2007
                                      £'000              £'000            £'000
                                    -------            -------          ------- 
Trade payables                        2,542                549            1,620
Taxation and social security            295              3,064              846
Other payables                        2,068              3,661            1,571
Amounts payable on property                     
acquisitions                         62,067              8,596           58,446
Accruals and deferred income         29,181             13,981           20,529
                                    -------            -------          ------- 
                                     96,153             29,851           83,012
                                    -------            -------          ------- 



13. Borrowings and derivative financial instruments


                                 (Unaudited)        (Unaudited)        (Audited)
                                      As at              As at            As at
                                31 December        31 December          30 June
                                       2007               2006             2007
                                      £'000              £'000            £'000
                                    -------            -------          ------- 
Borrowings

Current liabilities
Bank and other borrowings            47,246             19,653           62,549
Finance lease obligations                 2                  2                2
                                    -------            -------          ------- 
                                     47,248             19,655           62,551
                                    -------            -------          ------- 

Non-current liabilities
Bank and other borrowings           353,077            306,438          266,476
Finance lease obligations             2,130              2,133            2,132
                                    -------            -------          ------- 
                                    355,207            308,571          268,608
                                    -------            -------          ------- 


The fair value of borrowings approximates to the carrying value, as borrowings
comprise floating rate liabilities.

Maturity of bank and other borrowings

                                 (Unaudited)        (Unaudited)        (Audited)
                                      As at              As at            As at
                                31 December        31 December          30 June
                                       2007               2006             2007
                                      £'000              £'000            £'000
                                    -------            -------          ------- 
Less than one year                   47,246             19,653           62,549
Between one and two years            34,870             30,737          110,150
Between two and five years          135,751            160,184           29,322
Over five years                     182,456            115,517          127,004
                                    -------            -------          ------- 
                                    400,323            326,091          329,025
                                    -------            -------          ------- 


Undrawn facilities

                                 (Unaudited)        (Unaudited)        (Audited)
                                      As at              As at            As at
                                31 December        31 December          30 June
                                       2007               2006             2007
                                      £'000              £'000            £'000
                                    -------            -------          ------- 
Less than one year                    2,000              2,000            2,208
Between one and two years                 -                234                -
Between two and five years          288,031            177,345          169,075
Over five years                     457,750            200,400          467,855
                                    -------            -------          ------- 
                                    747,781            379,979          639,138
                                    -------            -------          ------- 


Included within the analysis of undrawn facilities are development loan
facilities, which, although committed, have conditions that need to be satisfied
prior to drawdown.


Derivative financial instruments
                                     Assets         Liabilities            Total
                                      £'000               £'000            £'000
                                    -------             -------          ------- 
At 1 July 2007                       11,640                   -           11,640
Movement in fair value 
recognised in equity                 (7,112)             (5,897)        (13,009)
Movement in fair value 
recognised in income statement       (2,564)                  -          (2,564)
                                    -------             -------          ------- 
At 31 December 2007                   1,964              (5,897)         (3,933)
                                    -------             -------          ------- 


All derivative financial instruments are non-current and are interest rate
derivatives.


Fair values

All derivative financial instruments are carried at fair values following a
valuation as at 31 December 2007 by J C Rathbone Associates Limited. Fair value
is calculated on a replacement basis, of the Group's derivative financial
instruments used to protect its current and future interest rate costs.


Gearing

Net gearing, measured as Group net debt to total equity was 68 per cent at 31
December 2007 (30 June 2007: 39 per cent; 31 December 2006: 33 per cent).


Currency risk

The Group has no currency risk as all monetary assets and liabilities are
denominated in sterling.



14. Other payables
                                 (Unaudited)    (Unaudited)      (Audited)
                                      As at          As at          As at
                                31 December    31 December        30 June
                                       2007           2006           2007
                                      £'000          £'000          £'000
                                    -------        -------        ------- 
Non-current liabilities
Amounts payable on property                     
acquisitions                              -         49,854         12,434
                                    -------        -------         ------- 


15. Deferred tax           As at                                    As at
                          1 July     Income         Equity    31 December
                            2007  statement                          2007
                           £'000      £'000          £'000          £'000
                         -------    -------        -------        -------

Accelerated capital        6,151        261              -          6,412
allowances
Tax losses                (7,654)    (1,568)             -         (9,222)
Temporary differences      4,345        721              -          5,066
Property revaluations     36,441    (23,105)             -         13,336
Derivative financial       2,538       (191)        (3,643)        (1,296)
instruments             --------  ---------       --------      ---------
                          41,821    (23,882)        (3,643)        14,296
                        --------  ---------       --------      ---------



16. Called up share capital

                                        (Unaudited)    (Unaudited)     (Audited)
                                             As at          As at         As at
                                       31 December    31 December       30 June
                                              2007           2006          2007
                                             £'000          £'000         £'000
                                          ---------     ----------     --------
Authorised
Ordinary shares of 25 pence each            75,000         75,000        75,000
                                          ---------     ----------     --------

Issued and fully paid
At beginning of period                      40,294         40,278        40,278
Issued on exercise of share options              -             11            16
                                          ---------     ----------     --------
At end of period                            40,294         40,289        40,294
                                          ---------     ----------     --------


17. Reserves
                                     Share premium           Other     Retained
                                           account        reserves     earnings
                                             £'000           £'000        £'000
                                           -------         -------      -------

At 1 July 2007                             198,422          48,414      241,326
Movement in fair value of
derivative financial instruments                 -         (13,009)           -
Share-based payment                              -               -          712
Share of joint ventures'
movements in fair values of
derivative financial instruments                 -            (437)           -
Tax on items directly taken to equity            -           3,643            -
Loss for the period                              -               -      (90,685)
                                         ---------       ---------    ---------
At 31 December 2007                        198,422          38,611      151,353
                                         ---------       ---------    ---------

18. Minority interest
                                                                          Total
                                                                          £'000
                                                                        -------

At 1 July 2007                                                            2,123
Equity repayment in the period                                           (1,427)
                                                                      ---------
At 31 December 2007                                                         696
                                                                      ---------

19. Net asset value per share

                                       (Unaudited)     (Unaudited)    (Audited) 
                                            As at           As at         As at 
                                      31 December     31 December       30 June 
                                             2007            2006          2007

                                            £'000           £'000         £'000
                                        ---------       ---------     ---------

Basic net asset value                     428,680         517,357       528,456
Share awards                                   70             167           128
                                        ---------       ---------     ---------
Diluted net asset value                   428,750         517,524       528,584
Adjustment for:
Unrecognised revaluation
surplus on owner-occupied
property                                    3,807           4,254         4,466
Group's estimated share of
unrecognised revaluation
surplus on trading properties              85,398          14,967        33,130
Deferred tax in respect of
unrecognised revaluation
surplus on owner-occupied
property                                     (887)           (895)       (1,113)
Deferred tax in respect of
Group's estimated share of
unrecognised revaluation
surplus on trading properties             (23,251)         (4,191)       (8,616)
                                        ---------       ---------     ---------
Adjusted net asset value                  493,817         531,659       556,451
                                        ---------       ---------     ---------


                                        Number of       Number of     Number of
                                           shares          shares        shares
                                             '000            '000          '000
                                        ---------       ---------     ---------

Basic                                     161,174         161,155       161,174
Share awards                                   84             952         1,487
                                        ---------       ---------     ---------
Diluted                                   161,258         162,107       162,661
                                        ---------       ---------     ---------


                                            Pence           Pence         Pence
                                        
Basic net assets value per share            266.0           321.0         327.9
Share awards                                 (0.1)           (1.8)         (2.9)
                                        ---------       ---------     ---------
Diluted net asset value per share           265.9           319.2         325.0
Adjustment for:
Unrecognised revaluation surplus on
owner-occupied property                       2.3             2.7           2.7
Group's estimated share of unrecognised
revaluation surplus on trading
properties                                   53.0             9.3          20.4
Deferred tax in respect of
unrecognised revaluation surplus on
owner-occupied property                      (0.6)           (0.6)         (0.7)
Deferred tax in respect of Group's
estimated share of unrecognised
revaluation surplus on trading
properties                                  (14.4)           (2.6)         (5.3)
                                        ---------       ---------     ---------
Adjusted net asset value per share          306.2           328.0         342.1
                                        ---------       ---------     ---------



20.  Capital commitments

Capital commitments contracted, but not provided for, at 31 December 2007 were
£147,620,000 (30 June 2007: £7,886,000; 31 December 2006: £9,889,000).


21. Cash flows from operations
                                      (Unaudited)      (Unaudited)     (Audited)
                                   Six months to    Six months to       Year to
                                     31 December      31 December       30 June
                                            2007             2006          2007
                                           £'000            £'000         £'000
                                       ---------        ---------     ---------      

(Loss)/profit before taxation           (114,567)          15,440        16,263
Share of post tax loss/(profit) of
joint ventures                             2,792             (257)         (101)
Net finance costs                          4,170            3,621         2,636
                                       ---------        ---------      --------
Operating (loss)/profit                 (107,605)          18,804        18,798
Depreciation                                 146              147           283
Movement on revaluation of
investment properties                    108,210          (17,744)      (17,358)
Profit on sale of property, plant
and equipment                                (50)             (26)          (59)
Share-based payment                          712              254           766
Expenditure on trading properties         (8,692)         (69,959)      (74,014)
(Increase)/decrease in trade and
other receivables                         (1,818)          32,286        37,487
Decrease in trade and other payables      (2,495)          (3,769)       (2,970)
Amortisation of lease incentives,
letting fees and other non-cash items        105               54           250
                                       ---------        ---------     ---------
                                         (11,487)         (39,953)      (36,817)
                                       ---------        ---------     ---------



22. Related party transactions

The Group has not entered into any material transactions with related parties in
the six months to 31 December 2007.




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