Final Results

Northacre PLC
25 August 2005


                                 Northacre Plc


                  Results for the year ending 28 February 2005


Northacre today announces its results for the year ended 28 February 2005.


   •Further planning and construction delays combined with lower market
    activity have again adversely impacted these results.


   •Progress of the remaining sales at KINGS Chelsea and The Phillimores
    continue at a steady pace, albeit at a slower rate than anticipated, thereby
    delaying receipt of profit entitlement to the financial year to February
    2006.


   •Planning delays at Vicarage Gate House - decision to be determined by a
    Public Inquiry before end of 2005.


   •New Mayfair development acquired with planning consent secured.


   •Implemented measures have generated 52% reduction in Group staff
    overhead.


   •New development opportunities under consideration for enhancing fee
    income and the Group's activities.


John Hunter, Chief Executive of Northacre, commented:


'Again the Group has suffered the impact of further planning and construction
delays to its development programme. Although less buoyant market conditions
have resulted in a slower rate of sales activity, we now anticipate the receipt
of our profit entitlement on two major schemes shortly.


The Group has successfully achieved significant savings in its overhead as well
as reduced levels of debt. With a new development secured in the period and
further acquisitions in the pipeline, the outlook for the Group is indeed more
promising'.


Copies of the Annual Report and Accounts will be available at the office of
Northacre Plc at 48 Old Church Street, London SW3 5BY and are being posted to
shareholders.


25th August 2005



Enquiries:


Northacre Plc Tel : [phone]

John Hunter, Chief Executive

Manish Santilale, Finance Director





Chief Executive's Review


Overview


The Northacre brand continues to be synonymous with the finest quality of
residential schemes in well-established Central London landmark locations.
Northacre's core business is in acquiring opportunities and adding value through
the development process. To this end, a new consented development project has
been acquired in Mayfair. Other similar opportunities are under consideration
for extending the Group's activities for improved fee income and profit
generation.


Financial Results


Turnover, including share of associates, for the period was £3,039,401 (2004
£4,054,450) with gross profit of £1,445,348 (2004 £2,501,666). Pre-tax loss was
£1,182,267 (2004 £2,174,472) before amortisation of goodwill with a basic loss
per share of 10.76 pence (2004 15.16 pence) The Board is not declaring a
dividend payment.


Although further planning and construction delays have adversely impacted on
these results, a slowdown in the market conditions has also caused delays in
receipt of the Group's profit entitlement from two major schemes at The
Phillimores and KINGS Chelsea.


Operating Subsidiaries


It has been a testing period for our operating subsidiaries. However we are
confident that with the new appointments since the year-end and the pipeline of
new opportunities they will continue to generate a positive contribution to the
Group.


OPERATIONAL REVIEW


Vicarage Gate House


On the grounds of non-determination at Local Authority level it was decided that
a Public Inquiry would be the most effective route for determining this
outstanding planning decision. We anticipate a positive decision will be reached
by the end of 2005. Accordingly the site loan with Deutsche Postbank has been
extended. The Group continues to receive development management fees during this
Inquiry process.


The Phillimores (Queen Elizabeth College)


Although there has been a slowdown in market activity, the progress of sales at
The Phillimores continues at a steady pace with eight apartments remaining
unsold. We therefore anticipate receipt of the bulk of our profit share/overage
entitlement during the financial year to February 2006.


KINGS Chelsea

There remains one unsold apartment. Lifestyles Interiors have been appointed to
complete the dressing of this final show apartment penthouse. We are therefore
confident our outstanding bonus fees will also be received in the financial year
to February 2006.


44 - 46 Park Street


The acquisition of a prime residential scheme in the heart of Mayfair was
secured on 14th February 2005. This Grade II listed building is situated
opposite The Grosvenor House Hotel and now has planning consent for a revised
Northacre scheme with works already commenced on site.


OUTLOOK


Although the Group has suffered further losses due to the continued delay of two
major schemes at KINGS Chelsea and The Phillimores, we are confident these
entitlements will be received in the next financial year. The delay in planning
for Vicarage Gate House has further impacted on our results for the period. We
are confident of a positive outcome at the Public Inquiry, which will enable the
Group to commence the development works within the next year.


The acquisition of the Park Street scheme has generated fees for all the
operating subsidiaries, which will further assist the finances of the Group. In
addition, The Northacre Directors' Pension Fund loan has been further extended.


In the light of these circumstances the Board of Directors have implemented
significant measures to substantially reduce the level of overhead, resulting in
a smaller, leaner and more efficient Group. We are confident that together with
the development opportunities available in the market that there is good reason
for optimism.


Consolidated Profit and Loss Account

For the year ended 28th February 2005

                                                                         2005         2004
                                                                            £            £

Turnover including share of associates                              2,811,640    4,054,450

Share of turnover of associates                                             -    (219,051)

Group Turnover - Continuing Activities                              2,811,640    3,835,399

Cost of sales                                                     (1,366,292)  (1,333,733)

Gross Profit                                                        1,445,348    2,501,666

Administrative expenses                                           (3,611,761)  (5,282,252)
Provision for loss making contract                                          -    (350,000)
Other operating income                                                 30,927       18,696

Group Operating Loss                                              (2,135,486)  (3,111,890)

Share of (loss) of associate                                         (12,497)     (76,828)

Operating Loss including share of associates and joint ventures   (2,147,983)  (3,188,718)

Loss on Ordinary Activities before Interest
and Investment Income                                             (2,147,983)  (3,188,718)

Income from investments                                                70,000       80,000
Interest receivable                                                    66,828       10,265
Interest payable and similar charges                                (432,320)    (337,227)

Loss on Ordinary Activities before Taxation                       (2,443,475)  (3,435,680)

Taxation                                                                    -      (8,817)

Retained Loss for the Year                                        (2,443,475)  (3,444,497)


Basic loss per ordinary share                                        (10.76)p     (15.16)p

Fully diluted loss per ordinary share                                (10.76)p     (14.72)p



Consolidated Balance Sheet at 28th February 2005

                                                            2005            2004
                                                               £               £

Fixed Assets
Intangible fixed assets                               10,089,668      11,350,876
Tangible fixed assets                                     30,934       2,918,559
Investments in joint venture                             965,225         870,225
Investment in associates                                  34,494          46,991

                                                      11,120,321      15,186,651
Current Assets
Work in progress                                         182,681         196,939
Debtors due within one year                              495,141         391,041
Cash at bank and in hand                                 109,758          89,823

                                                         787,580         677,803
Creditors: Amounts falling due
within one year                                      (4,849,297)     (6,012,375)

Net Current Liabilities                              (4,061,717)     (5,334,572)

Total Assets less Current Liabilities                  7,058,604       9,852,079

Provision for liabilities and charges                          -       (350,000)

Net Assets                                             7,058,604       9,502,079


Capital and Reserves
Called up share capital - equity interests               567,841         567,841
Share premium account                                 17,449,610      17,449,610
Profit and loss account                             (10,958,847)     (8,515,372)

Shareholders' Funds                                    7,058,604       9,502,079



Consolidated Cash Flow Statement

For the year ended 28th February 2005

                                                                2005            2004
                                                                   £               £

Net Cash (Outflow)                                         (352,062)     (1,656,283)
from Operating Activities

Returns on Investments and Servicing of Finance
Interest received                                             66,828          10,265
Interest paid                                              (432,320)       (331,860)
Interest element of finance lease rental payments                     -
Dividend received                                             70,000          80,000
                                                           (295,492)       (246,962)

Taxation
Corporation tax                                                    -               -

Capital Expenditure and Financial Investment
Sale of property                                           2,849,740         475,000
Purchase of other tangible assets                            (6,516)        (43,257)
Sale of other tangible assets                                    250               -

Net cash inflow for capital expenditure
and financial investment                                   2,843,474         431,743

Acquisitions and disposals
Investment in joint venture                                 (95,000)       (489,225)
Proceeds on disposal of investment in joint venture                -       5,020,000

Net cash (outflow)/inflow for acquisitions and disposals    (95,000)       4,530,775

Financing
Capital element of finance lease rental payments            (15,805)         (3,512)
Increase/(decrease) in debt due within one year                          (1,150,000)

Net cash outflow from financing                             (15,805)     (1,153,512)

Increase in Cash in the Year                               2,085,115       1,905,761



Notes to the Financial Statements

For the year ended 28th February 2005


1 Principal Accounting Policies

The principal accounting policies, which are unchanged from the previous year,
are as follows:


Accounting basis and standards

The financial statements have been prepared under the historical cost
convention, modified to include the revaluation of freehold property, and in
accordance with applicable accounting standards.


The company and group currently meet their day to day working capital
requirements partly through monies loaned from the Northacre PLC Directors
Retirement and Death Benefits Scheme and partly from the group's bankers. The
directors expect the facilities currently agreed to remain in place for the
forseeable future and to be renewed on equally favorable terms in due course. In
particular, agreement has been reached for one of the loans due to Northacre PLC
Directors Retirement and Death Benefit Scheme of £1m to be extended.


The directors have prepared detailed cash flow projections for the period ended
31 August 2006 making reasonable assumptions about the levels and timings of
income and expenditure, and in particular the timing of receipt of certain fees
due from major developments. These projections show that the group can operate
within the available facilities. On this basis the directors consider it
appropriate to prepare the financial statements on a going concern basis.


Basis of Consolidation

The group accounts include the accounts of the company and its subsidiary
undertakings, together with the group's share of the results of joint ventures
and associates.


Depreciation

Depreciation on fixed assets is provided at rates estimated to write off the
cost or revalued amounts, less estimated residual value, of each asset over the
expected useful life as follows:

Freehold buildings                                   nil
Fixtures, fittings and office equipment              25% straight line
Computer equipment                                   331/3% straight line
Motor vehicles                                       25% straight line


It is the group's practice to maintain its freehold buildings in a continual
state of sound repair and to make improvements thereto from time to time. The
directors review the valuation of the buildings annually for impairment in its
value and as they consider that the residual value at the end of the useful
economic life will not be less than its present carrying value, no depreciation
is chargeable.


Work in Progress

Work in progress is valued at the lower of cost and net realisable value. Cost
of work in progress includes overheads appropriate to the stage of development.
Net realisable value is based upon estimated selling price less further costs
expected to be incurred to completion and disposal.


Turnover

Turnover represents amounts invoiced by the group in respect of services
rendered during the period net of value added tax. Shares in development profits
and bonus fees are recognised when the amounts involved have been finally
determined.



Deferred Taxation

In accordance with FRS19, deferred tax is recognised as a liability or asset if
transactions or events that give the group the obligation to pay more tax in
future or a right to pay less tax in future have occurred by the balance sheet
date.


Leased Assets

Assets held under finance leases and hire purchase contracts are capitalised in
the balance sheet and depreciated over their expected useful lives. The interest
element of the rental obligations is charged to the profit and loss account over
the period of the lease on a straight-line basis.


Rentals under operating leases are charged to income on a straight-line basis
over the lease term.

Investments

Fixed asset investments are stated at cost less amounts written off.


Goodwill

Goodwill is determined by comparing the amount paid on the acquisition of a
business and the aggregate fair value of its separable net assets and is written
off over its estimated useful life of 10 years.


Pension Scheme Arrangements

The group operates a money purchase scheme on behalf of two of its directors. It
also contributes to certain directors' and employees' personal pension schemes.
Pension costs charged represent the amounts payable to the schemes in respect of
the period.


2 Turnover

The group's turnover was derived from its principal activities. Sales were made
in the following geographical markets:

                                                            2005            2004
                                                               £               £

United Kingdom                                         2,811,640       3,835,399

                                                            2005            2004
                                                               £               £
Principal activities:
Profit shares - property development                           -         350,000
Development management                                   450,600         252,365
Interior design                                        1,898,034       1,877,347
Architectural design                                     463,006       1,355,687

                                                       2,811,640       3,835,399


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