AGM Statement

RNS Number:5452P
Halladale Group PLC
09 September 2003


9 September 2003

                  News Release     News Release     News Release

                              Annual General Meeting

Halladale Group plc ("Halladale"), the UK property trading and development
company, announces that all resolutions put before shareholders were passed at
its annual general meeting held today.

David Lockhart, Chief Executive, said:

"This has been a year of considerable achievement on all fronts.

"At Halladale we place more emphasis on the earnings performance of the group as
a barometer of achievement rather than simply valuing our assets once a year and
the 47% increase in profit before tax and 28% increase in total dividends
reflect the strong performance of the company in the year to 30 April 2003.

"These results also reflect a significant increase in overall levels of activity
with:

   *Total transactions of #120m up 46% on the previous year.

   *Total portfolio under management increasing by 25% to #145m at the year
    end.

"Our strong exposure to the retail sector continued during the year - 88% of the
total portfolio at the year end - as we considered that retail would continue to
provide the best opportunities. This is borne out by the Investment Property
Databank ("IPD") UK Monthly Index for the year to end July 2003, which shows
retail outperforming both the office and industrial sectors.

"Key acquisitions during the year included a #32m mainly retail portfolio in a
joint venture with Citibank and a #17.2m retail warehouse in a joint venture
with Kodak Pension Fund. We completed our mixed use development at Queen Street,
Glasgow. The student accommodation was forward sold to a specialist operator and
all the flats have been sold, with the majority being bought off plan. A
significant part of the ground floor retail has been sold following lettings to
Sainsbury's and the Clydesdale Bank, the latter since the year end.

"We took advantage of strong investor demand to sell properties in excess of
#53m during the year, wholly consistent with our strategy of recycling equity
once we have implemented our pre-determined asset enhancement strategy. The
average period we hold properties for is less than three years and we believe
this provides greater transparency in our balance sheet where values are tested
regularly through disposals.

"Since the year end the high level of activity has continued with the
announcement of a number of interesting projects. In July we received planning
consent, subject to agreeing a Section106 Agreement, to both extend and
refurbish the Bay Tree Shopping Centre in Brentwood and to convert an empty
office building into residential. This exciting project is in our joint venture
company with Bank of Scotland and construction should commence in the first
quarter of 2004.

"Last month we commenced construction on Phase 1 of the development of the
Woolwich Trade Park in South East London following pre-letting agreements for
over half the available space. This development is being carried out in a joint
venture with the land owner, Tilfen Land Ltd.

"Last week we announced an agreement, subject to planning, to purchase a prime
landmark site in Glasgow's Merchant City to develop a new building behind a
retained Victorian facade comprising approx. eighty four 1 and 2 bedroom flats
with car parking and retail on ground floor.

"Our deal flow, which is the life blood of the business, remains healthy and we
believe the projects we have recently announced and others we are currently
working on will provide good opportunities to generate value this year and
beyond.

"Joint venture activities continue to grow accounting for 77% of our total
portfolio under management at 30 April 2003. We were pleased to announce in
February the launch of the #50m Opportunity Fund with Kodak Pension Fund. This
followed our first successful joint venture with Kodak and demonstrates the
opportunity to grow existing relationships based on performance, as well as
establishing new ones. As part of the transaction Kodak also subscribed for 1m
shares in Halladale and we welcome them as a new shareholder.

"Joint ventures will play an increasingly important part in the growth of our
business. They are an effective use of our capital through generating both
management and performance related fees.

"Strong investor demand continues to provide liquidity in the UK property market
and, should growth in the economy begin to accelerate next year as the consensus
forecasts seem to suggest, this will feed through to occupational demand and, in
due course, rental growth.

"We continue to monitor opportunities across all sectors and believe the office
sector in London and the South East is beginning to present opportunities in
advance of the next cycle.

"At the end of the day our most important asset is our people. Our professional
and talented management team provides a depth and breadth of skills and
experience and it is because of that, and their commitment to the company, that
I believe Halladale has an exciting future."

- ends -

For further information please contact:

David Lockhart, Halladale Group plc                       0141 204 4633

David Rydell / Charles Reynolds, Bell Pottinger           020 7861 3232
Financial

Stuart Lane, Collins Stewart Ltd                          020 7523 8310


About Halladale:

   *Halladale is a property trading and development company that creates
    value for shareholders through active and entrepreneurial management and
    risk controlled development of commercial property assets throughout the UK.

   *The value of its portfolio at 30 April 2003, including the aggregate
    value of joint ventures, was #145 million, a year on year increase of 25 per
    cent.

   *In the year ended 30 April 2003, profit before tax increased by 47 per
    cent to #1,691,000 year on year and the total dividend increased by 28 per
    cent to 1.6p per ordinary share.

   *In the same period, the total value of acquisitions and disposals
    increased by 46 per cent to #120 million.

   *Halladale was founded in 1991 by its Chief Executive, David Lockhart, and
    has offices in Glasgow and London. Halladale's shares were admitted to the
    AIM in April 2001.

   *For more information on Halladale please visit http://
    www.halladale.co.uk.






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

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