Interim Results

Northacre PLC
29 November 2002

                                 NORTHACRE PLC
                          ('Northacre' or 'the Group')



              Interim Results for the six months to 31 August 2002



Northacre, the premier developer of landmark residential property schemes in
Central London, today announces interim results for the six months to 31 August
2002



•       Planning consent now secured on second site at The Phillimores (Sir John
        Atkins). Development plans finalised and demolition activity has commenced

•       The Phillimores (Queen Elizabeth College) development on track and
        secured sales have increased to over £60 million

•       KINGS Chelsea receiving critical acclaim as one of London's premier
        developments with sales continuing to increase

•       Exciting opportunities for further development sites being created
        through the strength of Northacre's brand and profile


John Hunter, Chief Executive, commented:



'Northacre has achieved considerable progress in all current developments over
the past six months. With planning consent now achieved on our new development
at Sir John Atkins, along with the potential that the Queen Elizabeth College
site provides, the Board is confident that we will demonstrating significant
revenues over the next two to three years.'


                                                              29 November 2002




Enquiries:

Northacre PLC                                               Tel: [phone]
John Hunter, Chief Executive
Simon Elgar, Finance Director

College Hill Associates                                     Tel: [phone]
Kate Pope / Tom Allison






Financial Results

Turnover for the period was £2,068,000 (2001: £2,752,000) with pre-tax loss of
£457,000 (2001: loss of £112,000) before amortisation of goodwill. Basic loss
per share was 3.72 pence (2001: 2.22 pence). Operating costs decreased to £1.9
million (2001 £2.1 million). The Board is not declaring an interim dividend
payment.



These results were adversely impacted by delays with the KINGS Chelsea
development and the deferral of Group profit recognised on this development.
This profit will now be recognised in the next financial year. The first half
was also affected by a reduced level of performance from Lifestyles (Interiors).
However, the pipeline of activity for 2003 is healthy and we are confident that
turnover will increase in the second half.



Overview

Northacre's 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 significant revenue growth in 2003 and beyond.



The Phillimores (Sir John Atkins)

We were delighted to announce in November that we successfully achieved planning
consent on The Phillimores (Sir John Atkins) site.  This is a new and separate
site to our existing development at The Phillimores (Queen Elizabeth College).
The two sites are adjacent in the premier location of Holland Park, London.



The development will consist of 35 apartments and 8 houses with the provision
for 27 affordable housing units. Planning permission also includes provision for
71 parking spaces on site. Demolition activity has already commenced and we
expect to start construction in early 2003. Completion of the development is
anticipated in 2005.



All three divisions of the Northacre group will be involved in the development,
which is a joint venture with Westcity. We expect that group development and
design fees and a share of development profits through equity participation will
provide Northacre with significant revenue and profits stream going forward.
Whilst we will receive development fees throughout the period of the project,
Northacre's profit share is not expected to impact until 2006.



The Phillimores (Queen Elizabeth College)

35 of the 66 units have been pre-sold to date and we anticipate exchanging on
further units in the next few weeks.  This will bring the total exchanged sales
to over 60 million.  The show apartment designed by Lifestyles (Interiors) has
now opened and we believe that this will generate increased interest in the
remaining unsold apartments.



The development is on track and we anticipate completion in 2004.



KINGS Chelsea

In association with European Land, the KINGS Chelsea development continues to
generate sales with over £200 million of gross revenue achieved to date and 265
of the 288 units pre-sold.



As previously announced in our preliminary results, The KINGS Chelsea site has
been impacted by delays with construction. These have now been resolved, and
although the final completion of the development has been delayed by ten months,
we are confident that practical completion of all units will be achieved by the
summer of 2003.



Apart from £420,000 of profit taken in the first quarter of this financial year,
it is the intention to defer any additional profit until the next financial
year.



South Audley Street

We are currently in negotiations with a joint venture partner. Planning is
already in place and we anticipate that works will commence on site in 2003 with
all three divisions of the Group involved.



Earls Terrace

As previously announced, the Board has taken the necessary action to secure the
outstanding balance of the profits due to Northacre. Full provision was made at
the preliminary results. The legal process continues and the Group recognises
that the likely timing of these receipts remains uncertain.



Outlook

Despite the deferred profits from KINGS Chelsea which have adversely impacted on
our results, Northacre has achieved considerable success in all current
developments. With planning consent now achieved on our new development at The
Phillimores (Sir John Atkins), along with the potential of The Phillimores (the
Queen Elizabeth College) site provides, the Board is confident that we will be
demonstrating significant revenues over the next two to three years.



Our strategy remains clear - to seek and acquire equity interests in residential
schemes in order to generate development profits. We therefore continue to
pursue new opportunities to provide further growth.



                                                                     John Hunter
                                                                 Chief Executive


                                 NORTHACRE PLC

                 Consolidated Profit and Loss Account (Unaudited)

                                       
                                                                       6 Months to   6 Months to   Year ended
                                                                Note     31.8.2002     31.8.2001    28.2.2002
                                                                         Unaudited     Unaudited      Audited
                                                                             £'000         £'000        £'000

            Turnover                                                         2,068         2,752        7,533
            Cost of sales                                                    (399)         (663)      (2,349)

            Gross Profit                                                     1,669         2,089        5,184
            Administrative expenses                                3       (2,304)       (2,533)      (6,237)
            Other operating income                                               9           191          197

            Operating Loss                                                   (626)         (253)        (856)

            Share of profit from associate undertakings                          -             -           20
            Share of (loss) from joint ventures                                  -             -         (66)

            Loss on Ordinary Activities                                                                      
            before Interest and Investment Income                            (626)         (253)        (902)

            Dividends received                                                  51             -            -
            Interest (net)                                                   (270)         (247)        (515)

            Loss on Ordinary Activities                                                                      
            before Taxation                                                  (845)         (500)      (1,417)

            Taxation                                               4             -             -          130

            Retained Loss for the Period                                     (845)         (500)      (1,287)

            Basic (loss)/earnings per ordinary share               5       (3.72p)       (2.22p)      (5.70p)
            Fully diluted (loss)/earnings per ordinary share               (3.46p)       (2.05p)      (5.25p)



                                                   NORTHACRE PLC

                                       Consolidated Balance Sheet (Unaudited)

                                                                                                 
                                                                31.8.2002   31.8.2001   28.2.2002
                                                                Unaudited   Unaudited     Audited
                                                                    £'000       £'000       £'000
                      Fixed Assets                                                               
                      Intangible assets                            13,000      13,776      13,388
                      Tangible assets                               4,015       3,763       4,087
                      Investments                                   1,304       1,284       1,304
                      Investments in joint venture                  5,337       5,776       5,710
                                                                   23,656      24,599      24,489
                      Current Assets                                                             
                      Stock and work in progress                        -         100          45
                      Debtors                                       3,265       2,970       3,537
                      Bank balances and cash                            1         120           8
                                                                    3,266       3,190       3,590

                      Creditors due within one year               (9,006)     (7,914)     (8,674)

                      Net Current Liabilities                     (5,740)     (4,724)     (5,084)

                      Total Assets less Current Liabilities        17,916      19,875      19,405
                      Creditors due after more than one year            -       (691)       (644)

                      Net Assets                                   17,916      19,184      18,761


                      Capital and Reserves                                                       
                      Share capital                                   568         568         568
                      Share premium account                        17,449      17,449      17,449
                      Revaluation reserve                             495         131         495
                      Profit and loss account                       (596)       1,036         249
                                                                   17,916      19,184      18,761



                                           NORTHACRE PLC

                            Consolidated Cash Flow Statement (Unaudited)

                                                                                                           
                                                                     6 Months to   6 Months to   Year ended
                                                                       31.8.2002     31.8.2001    28.2.2002
                                                                       Unaudited     Unaudited      Audited
                                                                           £'000         £'000        £'000

              Net Cash (Outflow)/Inflow from Operating Activities          (193)           559          443

              Returns on Investments and Servicing                                                         
              of Finance                                                                                   
              Interest received                                                -             -            3
              Interest paid                                                (266)         (236)        (497)
              Interest element of finance lease rentals                      (5)          (12)         (21)
              Dividends received                                              51             -            -

              Net Cash Outflow from Returns on                                                             
              Investments and Servicing of Finance                         (220)         (248)        (515)

              Taxation                                                                                     
              Corporation tax paid                                          (79)         (476)        (497)

              Capital Expenditure and Financial Investment                                                 
              Additions to investment properties                               -             -         (25)
              Purchase of other tangible assets - net                        (8)           (5)         (24)
              Joint venture equity refund                                    307             -            -
              Sale of other tangible assets                                   40            20           19

              Net cash inflow/(outflow) for capital expenditure              339            15         (30)

              Acquisitions                                                                                 
              Purchase of subsidiary undertaking                               -         (295)        (295)

              Cash Outflow before Management of Liquid                                                     
              Resources and Financing                                      (153)         (445)        (894)

              Financing                                                                                    
              Issues of ordinary share capital                                 -           650          650
              Capital element of finance lease rentals                      (53)          (74)         (66)
              Increase in debt                                                 -         (533)        (533)

              Net cash inflow from management of liquid resources                                          
              and financing                                                 (53)            43           51

              Decrease in Cash in the Period                               (206)         (402)        (843)


                                 NORTHACRE PLC

              Notes to the Unaudited Interim Financial Statements



1          Accounting Policies

The interim financial statements have been prepared on the basis of the
accounting policies set out in the 2002 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 31st August 2001 have
been extracted from the company's interim report for that financial period.  The
statutory accounts for the period ended 28th February 2002 have been given an
unqualified audit report and have been filed with the Registrar of Companies.



3          Administrative Expenses

The administrative expenses of £2,303,666 (6 months to 31st August 2001:
£2,533,041) include amortisation of goodwill of £388,065 (6 months to 31st
August 2001: £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 31st August 2002 of 22,713,644 (6 months to 31st August 2001
22,713,644).



6          Shareholders' Funds
                                                                           £'000
The reconciliation of movements in shareholders' funds is as follows:

Shareholders' funds at 1st March 2002                                     18,761
Retained loss                                                              (845)

Shareholders' funds at 31st August 2002                                   17,916



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 29 November 2002.



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 31st August 2002.



Kingston Smith
Chartered Accountants
Devonshire House
60 Goswell Road
London EC1M 7AD







DATE: 29 November 2002



                      This information is provided by RNS
            The company news service from the London Stock Exchange