Interim Results

Northacre PLC
27 November 2001



                                NORTHACRE PLC

                         ('Northacre' or 'the Group')


             Interim results for the six months to 31 August 2001


Northacre, the premier developer of landmark residential property schemes in
Central London, today announces interim results for the six months to 31
August 2001



*       Turnover of £2,752,000 (2000: £5,369,000)

*       Pre-tax loss of £112,000 (2000: profit of £164,000) before
        amortisation of goodwill

*       Settlement of outstanding profits of Earls Terrace due by the
        financial year end

*       KINGS Chelsea is now firmly established as one of London's new
        destination addresses with 80% of the total units now pre-sold, securing
        over 65% of gross revenue. Completion of the development on schedule for
        the second half of 2002

*       Final planning announcement on The Phillimores expected by the end of
        the financial year

*       Nilsson Design and Lifestyles (Interiors) continue to achieve strong
        growth

*       Additional new prime residential development opportunities are under
        negotiation



John Hunter, Chief Executive, said:



'During the first six months of this financial year, the Group has undergone a
further period of consolidation.  We are pleased to report further sales at
KINGS Chelsea and we anticipate a planning decision on The Phillimores by the
end of the financial year.  We believe that 2002 will be a significant year of
growth for the Group.'

                                                              27 November 2001

Enquiries:

Northacre PLC                                            Tel: [phone]

John Hunter, Chief Executive


College Hill                                             Tel: [phone]

Kate Pope




CHIEF EXECUTIVE'S STATEMENT



Northacre plc is widely regarded as one of the premier developers of landmark
residential property schemes in Central London.  It comprises three principal
businesses: residential development, architectural services through Nilsson
Design and interior design through Lifestyles Interiors.  We aim to acquire
equity interests in prime residential opportunities for development and
investment where shareholder value can be significantly enhanced through the
skills of the Group.



Financial Results



The turnover for the period was £2,752,000 (2000: £5,369,000). Pre-tax loss of
£112,000 (2000: £164,000 profit) before amortisation of goodwill. This was
impacted by delays in the final settlement of profits from Earls Terrace and
deferred profits on KINGS Chelsea that were not recognised in this period.
Basic loss per share was 2.2 pence (2000: 1.23 pence).



Operating costs were £2.1 million (2000: £2.9 million), which were in line
with the volume of transacted business.



The Board is not declaring an interim dividend payment for the six months to
31 August 2001.



Northacre's financial focus remains to generate profits from development
projects of prime residential sites along with equity participation. Whilst
these projects are of a long-term nature resulting in unpredictable timing of
profit receipts, the Group is confident that with the work now in progress, it
can generate and sustain a flow of revenues going forward.



Operating Activities



Northacre is currently involved in four major development projects:



Earls Terrace



The Earls Terrace development completed in July 2000 achieved total revenues
in excess of £98 million. Settlement of the final account is now anticipated
by the end of this financial year.



KINGS Chelsea



KINGS Chelsea continues to make steady progress. Following Phase I of the
marketing off plan, Phase II has produced a healthy flow of sales from the
KINGS Library Marketing Suite whereby a total of over 80% of units have now
been pre-sold, with over 65% of the total anticipated revenues secured.  We
anticipate securing all sales prior to completion of the scheme in December
2002.



Northacre will receive a total of £2.6 million of development fees for the
project. We have to date received £1.2 million, with £0.3 million of
attributable fees recognised in the period under review.



The Group expects to receive a substantial performance related profit share
based on revenues and margins achieved. The settlement of this profit share
income is due to impact in the year to February 2003.



The Phillimores

After lengthy and detailed discussions with the local authority we now expect
to hear confirmation of a planning decision for The Phillimores by the
financial year-end. As soon as this consent is secured, works will be able to
commence on site.



The Group is due to receive up to £3 million of development, architectural and
interior design fees over the course of a three-year period as well as a
significant participation in the development profits.



South Audley Street

Planning application is in process for South Audley Street.  We have secured
an extension of our contract from 15 December 2001 and we expect that a
planning decision will be made prior to the end of our financial year.



Nilsson Design and Lifestyles (Interiors)

Nilsson Design and Lifestyles (Interiors) achieved further growth in the first
half of the year. With both businesses establishing strong client bases, we
believe that there is excellent opportunity to exploit new opportunities in
this area.



Outlook

With the current developments in progress at KINGS Chelsea and The
Phillimores, we expect to demonstrate significant revenues over the next two
to three years.



Our strategy remains as before - to seek and acquire equity interests in
similar residential schemes to generate development profits, but also in the
future, to secure investment income as well. We therefore continue to pursue
new opportunities for further growth.



The combination of our current developments as well as our extensive Group
skills give us good reason to be confident of creating enhanced shareholder
value going forward.



                                                                   John Hunter

Chief Executive

27 November 2001




CONSOLIDATED PROFIT & LOSS ACCOUNT (UNAUDITED)


                                          6 Months     6 Months       Year
                                            to           to          ended
                                    Note 31.8.2001    31.8.2000    28.2.2001
                                         Unaudited    Unaudited     Audited
                                           £'000        £'000        £'000

Turnover                                     2,752        5,369        8,522

Cost of sales                                (663)      (1,988)      (2,302)

Gross Profit                                 2,089        3,381        6,220

Administrative expenses              3     (2,533)      (3,560)      (6,226)

Other operating income                         191           42          141

Operating (Loss)/Profit                      (253)        (137)          135

Share of profit from associate
Undertakings                                     -            4           28
Profit on sale of investment                     -            -          169
property

(Loss)/Profit on Ordinary
Activities
before Interest                              (253)        (133)          332

Interest (net)                               (247)         (91)        (293)

(Loss)/Profit on Ordinary
Activities
before Taxation                              (500)        (224)           39

Taxation                             4           -            -        (123)

Retained Loss for the Period                 (500)        (224)         (84)



Basic (loss)/earnings per ordinary
share                                5     (2.22p)      (1.23p)      (0.43p)

Fully diluted (loss)/earnings per
ordinary share                             (2.05p)      (1.06p)      (0.20p)






CONSOLIDATED BALANCE SHEET (UNAUDITED)


                                   31.8.2001           31.8.2000      28.2.2001
                                   Unaudited           Unaudited        Audited
                                £'000     £'000     £'000     £'000       £'000

Fixed Assets
Intangible assets                        13,776              14,552      14,164
Tangible assets                           3,763                 909       3,807
Investments                               1,284               1,260       1,284
Investments in joint venture:
  Shares of gross assets       10,333               9,217
  Share of gross liabilities  (4,557)             (4,557)
                                          5,776               4,660       5,480

                                         24,599              21,381      24,735

Current Assets
Stock and work in progress                  100                  26          13
Debtors                                   2,970               1,861       2,635
Investment property held for                  -                 781           -
resale
Bank balances and cash                      120                 532           2

                                          3,190               3,200       2,650

Creditors due within one year           (7,914)             (4,251)     (7,617)

Net Current (Liabilities)               (4,724)             (1,051)     (4,967)

Total Assets less Current                19,875              20,330      19,768
Liabilities

Creditors due after more than             (691)             (1,936)       (734)
one year

Net Assets                               19,184              18,394      19,034

Capital and Reserves
Share capital                               568                 507         531
Share premium account                    17,450              16,360      16,837
Revaluation reserve                         130                 130         130
Profit and loss account                   1,036               1,397       1,536

                                         19,184              18,394      19,034



CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)


                                              6 Months    6 Months      Year
                                                 to          To         ended
                                              31.8.2001   31.8.2000   28.2.2001
                                              Unaudited   Unaudited    Audited
                                                £'000       £'000       £'000

Net Cash Inflow from Operating Activities           559       2,522       2,611

Returns on Investments and Servicing
of Finance
Interest received                                     -          19          30
Interest paid                                     (236)       (111)       (305)
Interest element of finance lease rentals          (12)           -        (19)

Net Cash Outflow from Returns on
Investments and Servicing of Finance              (248)        (92)       (294)

Taxation
Corporation tax paid                              (476)           -       (254)

Capital Expenditure and Financial
Investment
Additions to investment properties                    -     (6,691)       (781)
Purchase of other tangible assets - net             (5)        (76)     (2,961)
Sale of investment properties                         -           -         950
Sale of other tangible assets                        20          16          19
Non-returnable deposit in respect of                  -           -     (1,250)
potential acquisition
Net cash inflow/(outflow) for capital                15     (6,751)     (4,023)
expenditure

Acquisitions
Purchase of subsidiary undertaking                (295)           -     (5,480)

Cash Outflow before Management of Liquid
Resources and Financing                           (445)     (4,321)     (7,440)

Financing
Issues of ordinary share capital                    650       1,901       2,401
Capital element of finance lease rentals           (74)           -        (55)
Increase in debt                                  (533)       1,600       1,358

Net cash inflow from management
of liquid resources and financing                    43       3,501       3,704

Decrease in Cash in the Period                    (402)       (820)     (3,736)





             NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS

                     FOR THE PERIOD ENDED 31 AUGUST 2001


1.         Accounting Policies

The interim financial statements have been prepared on the basis of the
accounting policies set out in the 2001 Northacre plc Annual Report.


2.         Financial Information

The financial information contained in this document does not constitute
statutory accounts within the meaning of section 240 of the Companies Act
1985.  The comparative figures for the financial period ended 31 August 2000
have been extracted from the company's interim report for that financial
period.  The statutory accounts for the period ended 28 February 2001 have
been given an unqualified audit report and have been filed with the Registrar
of Companies.


3.         Administrative Expenses

The administrative expenses of £2,533,041 (6 months to 31 August 2000: £
3,559,531) include amortisation of goodwill of £388,055 (6 months to 31 August
2000: £388,065).


4.         Taxation

There is no taxation charge due to the availability of losses.


5.         Earnings Per Share

The earnings per share has been calculated on the result on ordinary
activities after tax and on the weighted average number of shares in issue in
the six months to 31 August 2001 of 22,713,644 (6 months to 31 August 2000
18,208,133).


6.                  Shareholders' Funds

The reconciliation of movements in shareholders' funds is as follows:

                                                            £'000
Shareholders' funds at 1 March 2001                         19,034
Issue of ordinary shares                                       650

                                                            19,684
Retained loss                                                (500)

Shareholders' funds at 31 August 2001                       19,184



7.         Dividends

The directors do not recommend the payment of an interim dividend.



8.         Other Information

The interim statement was approved by the directors on 27 November 2001.


A copy of the interim statement will be posted to shareholders and made
available to the public for a period of 14 days from today at the company's
registered office: 48 Old Church Street, London SW3 5BY.




                  INDEPENDENT REVIEW REPORT TO NORTHACRE PLC



Introduction


We have been instructed by the company to review the financial information set
out on pages 4 to 8 and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.



Directors' Responsibilities



The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors.  The Listing
Rules of the London Stock Exchange require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes,
and the reasons for them, are disclosed.



Review Work Performed



We conducted our review in accordance with guidance contained in Bulletin 1999
/4 issued by the Auditing Practices Board.  A review consists principally of
making enquiries of group management and applying analytical procedures to the
financial information and underlying financial data and based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed.  A review excludes audit
procedures such as tests of controls and verification of assets, liabilities
and transactions.  It is substantially less in scope than an audit performed
in accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit.  Accordingly we do not express an audit opinion on
the financial information.



Review Conclusion



On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 August 2001.

                                                                Kingston Smith

                                                         Chartered Accountants

and Registered Auditors





Devonshire House

60 Goswell Road

London EC1M 7AD



Date: 27 November 2001