Final Results

RNS Number:8515N
Savoy Asset Management PLC
23 July 2003

Stock Exchange Announcement



For release at 12 00 Noon on Wednesday 23rd July 2003


SAVOY ASSET MANAGEMENT PLC

CHAIRMAN'S STATEMENT

Trading conditions throughout the whole of the last financial year remained
difficult, with world stock markets experiencing one of the most prolonged bear
markets in recent times.  Although the results for the last financial year are
disappointing, in that we are reporting an operating loss, we have more than
held our market position and have reduced the level of this loss year on year.
Most firms throughout our industry have been similarly affected by the adverse
markets.

                                2002/2003                   2001/2002

Turnover:                      #3,590,050                  #3,674,562

Pre Tax losses:#                (#312,743)                  (#341,228)

Earnings per share:#                (3.7p)                      (3.1p)

Dividend total:                        Nil                      1.00p

# Before goodwill amortisation and exceptional items

As I reported last year we have been taking measures to reduce our cost base and
the actions we have taken have positioned us well both to take advantage of the
upturn in the markets, as well as protect us against any further falls.

In my last annual Chairman's statement, I explained that your Board is committed
to grow our Company organically by expanding the London operation with the
addition of proven teams and individuals.  I am pleased to report that the hard
work carried out over the past months to achieve this has now come to fruition.
A group of ten proven stockbrokers and investment managers will be joining us on
1 August 2003 with potential funds under management of approximately #300
million.  The addition of this team and their support staff will significantly
increase the revenues of the Group.  Their proven areas of expertise well
complement Savoy's existing asset management activity and in particular they
will strengthen our involvement in the management of charitable funds, overseas
trusts and offshore funds as well as traditional asset management to which Savoy
remains committed.  I welcome them all to Savoy and we look forward to working
with them for the benefit of the Group in coming years.



I would like to thank all those in the Group who have been actively involved in
this recruitment process and in particular Howard Hughes, Chief Executive of the
London operation, who has been instrumental in securing the services of the new
teams and who will be responsible for integrating their business within our
current operations.  Shareholders will have received notice of an Extraordinary
General Meeting to approve our proposals to introduce an Enterprise Management
Incentive Scheme.  The scheme will enable the new fund managers and brokers and
existing staff to participate in any future increase in shareholder value.



The difficult market conditions of the last three years have, if anything,
accelerated the polarisation of the asset management sector.  It continues to be
more difficult than ever for the client with funds of up to #2 million to obtain
fully bespoke personal international investment expertise.  This applies equally
to London as well as provincial locations and I am confident that the enlarged
Group will find and profit from increased opportunities in this area.



I am also pleased to welcome Barnes & Hedgecock Limited to the Savoy Group.  In
July 2003 we acquired the entire share capital of this company and I am pleased
that Malcolm Barnes will continue as its Chief Executive.  Barnes & Hedgecock
are independent financial advisors based near Bournemouth and their acquisition
will complement our current activities in this area carried out through Savoy
Financial Planning Limited.

The proposed capital reconstruction I referred to in my last Chairman's
statement was approved by the shareholders and took effect on 20 November 2002.
This reconstruction enabled the Company to write off accumulated losses against
the share premium account and enhanced its ability to pay future dividends.

Although the capital reconstruction provided a limited amount of distributable
reserves, in the absence of operating profits for last year, your Board is
unable to recommend a final dividend.  I hope that the past dividend policy of
the Company can be restored once profits return.

The Group continues to show a strong balance sheet with net assets of #4.1
million and surplus cash reserves of #2.5 million in excess of regulatory
requirements.

On behalf of shareholders, I would like to thank all the executives and staff
for their loyal commitment in difficult times for the Group.  I am sure the
exciting developments which I have outlined above, will reassure both
shareholders and staff of our commitment to future growth.

KENNETH CLARKE
Chairman



22 July 2003





CHIEF EXECUTIVE'S REPORT

The year under review continued to be one in which the whole financial services
sector experienced adverse trading conditions as a result of the economic
recession, lack of investor confidence and global conflicts.  Despite this
background, our funds under management at 31 March 2003 remained strong at #470
million compared to #550 million at the end of the previous financial year, a
fall of 14.5%.  This compares to a fall in the FT All Share Index over the same
period of 32%.  Similarly, fee income remained stable at 29% of current revenue.

In November last year, the Court approved a scheme of capital reconstruction for
the Company.  This wrote off past losses against the share premium account, and
enhanced the Group's ability to pay dividends in the future once profitability
has returned.

As has been announced today we are delighted to be taking on a team of 10 fund
managers and brokers in our London Office.  Together with their support staff of
15, this team manages approximately #300 million of funds and has historically
generated fee and commission income totalling approximately #5 million.  This
total of funds under management does not include certain specialized activities
which contribute towards revenues.  This is a significant development for the
Group and produces the critical mass needed to develop the London operation into
a profitable unit and one we will be looking to develop further and grow.  The
individuals joining us all have proven experience over a number of years in
difficult market conditions and will provide the cornerstone for our future
growth.

As at the date of this report our funds under management total #568 million;
with the addition of a potential #300 million from the new London teams and
individuals and #48 million from Barnes & Hedgecock Limited, Group funds under
management will rise to approximately #916 million.

We are also pleased to announce that in July 2003 the Company acquired the
entire share capital of Barnes & Hedgecock Limited, a firm of independent
financial advisors located close to Bournemouth, Dorset.  Barnes & Hedgecock
specialise in financial services to high net worth individuals mostly in
investment-based products, and services approximately 750 clients, mainly in the
South West of England with funds under management in excess of #48 million.
This acquisition will complement Savoy's existing independent financial advice
activities carried out through Savoy Financial Planning Limited based in
Shaftsbury, Dorset.  Total funds under management for our West Country IFA
division are now close to #100 million.  Malcolm Barnes, Chief Executive of
Barnes & Hedgecock, will continue to manage all the activities of the
Bournemouth Office.

During the past year we initiated a web site for the Group, which sets out the
services that are offered to clients.  It is hoped that this site can be
developed further in the future to allow clients access to view their portfolios
on line.  For any shareholders wishing to access the site, the address is
www.savoyim.com.

Savoy Investment Management Limited ("SIM")

Despite the adverse trading conditions throughout the sector, and the effect of
these conditions on trading volumes and fund management fees, SIM has shown
revenues comparable with those reported last year.  Significant cost savings
have been achieved in the year under review, especially in the area of
information systems, and the full effect of these should flow through in the
current year.

In February 2003 the London operation of SIM moved to new premises in Hanover
Square.  These have the advantage of giving us an open plan facility and will
provide the base for future expansion.  We are in the process of negotiating an
exit from our lease on the previous premises in London.

The new financial year has started well; we have been assisted by a moderate
recovery in markets.  There is no guarantee that this recovery will continue,
but we have addressed all cost areas to ensure that we are well positioned to
withstand any further fall in the markets as well as benefit from any recovery.

As I have mentioned above, the impact of the new members of the team joining the
London operation of SIM will be significant and can only enhance the future
development of SIM as a bespoke provider of investment management and
stockbroking services to private clients.

Savoy Financial Planning Limited

Savoy Financial Planning Limited, the independent financial advisor within the
Group, also suffered from the adverse trading conditions during the year ended
31 March 2003 and as a result we have had regrettably to reduce staff numbers in
this division.  This situation is similar to that of many other financial
advisors, but the security of being part of a larger group will ensure that this
division is provided with the support it requires.  I am pleased however, to
report that this subsidiary remained a profitable part of the Group and also
achieved a useful increase in funds under management to #43 million at 31 March
2003.  The addition of Barnes & Hedgecock to these activities within the Group
will lead to some rationalisation and cost savings and will further enhance the
profitability and range of our services as independent financial advisors.

Raphael Asset Management Limited

As I mentioned in my review last year, as a result of the rebranding of the
Group under the Savoy name in 2002, and the merger of all the various regulatory
bodies under the auspices of the Financial Services Authority, the need for a
separate subsidiary within the Group to provide purely discretionary fund
management services diminished.  The business of Raphael Asset Management is now
being transferred to Savoy Investment Management Limited and it is hoped that
this process will be completed in the current financial year.  This decision has
been well received by clients and in no way affects the service they receive.

Savoy Fund Managers (Guernsey) Limited

This company is manager to the Hauteville Global and Balanced Fund, a Guernsey
authorised international unit trust.  The Fund has continued to outperform its
benchmark over the past year.  This company complements the Group's capability
in providing an offshore investment vehicle and enhances the in-house research
capability of the Group.

Financiere France Europeenne du Groupe du Savoy SA

This subsidiary continues to manage the Group's European investment fund, which
also continues to outperform its benchmark.

Group Finances

Net assets (excluding intangibles) remain strong at over #4.0 million and the
losses for the last year have only resulted in a relatively small outflow of
cash resources owing to the effect of non-cash items.  Cash reserves also remain
strong and totalled #3.3 million at the year-end.  It is the Group's policy to
maintain a significant excess of financial resources over its regulatory
requirements so that cash predominantly represents net assets.

CHRISTOPHER SAUNDERS OBE
Chief Executive



22 July 2003





SAVOY ASSET MANAGEMENT PLC

CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 March 2003

                                  2003                      2002
                                     #                         #

Turnover                     3,590,050                  3,674,562

Cost of sales                 (232,489)                  (180,376)
                           -----------                -----------
Gross profit                 3,357,561                  3,494,186

Goodwill amortisation          (24,096)                  (329,993)

Other operating expenses    (3,797,077)                (3,982,643)
                           -----------                -----------
Operating loss                (463,612)                  (818,450)

Investment income              126,773                    147,229

Exceptional items               (5,176)                    91,332
                           -----------                -----------
Loss on ordinary 
activities before 
taxation                      (342,015)                  (579,889)

Tax on loss on ordinary 
activities                         328                     85,407
                           -----------                -----------

Loss on ordinary 
activities after 
taxation                      (341,687)                  (494,482)

Dividends                          Nil                    (83,785)
                           -----------                -----------

Loss retained for the 
year                          (341,687)                  (578,267)
                           ===========                ===========

Basic earnings per share:
before goodwill 
amortisation and exceptional
items                           (3.7)p                     (3.1)p

after goodwill amortisation 
and exceptional
items                           (4.1)p                     (5.9)p

Fully diluted earnings 
per share:

before goodwill amortisation 
and exceptional
items                           (3.5)p                     (2.8)p

after goodwill amortisation 
and exceptional
items                           (3.8)p                     (5.5)p


All amounts related to continuing activities.



There were no recognised gains or losses other than the loss for the year.





SAVOY ASSET MANAGEMENT PLC

CONSOLIDATED BALANCE SHEET
As at 31 March 2003

                                  2003                      2002
                                     #                         #

Fixed assets

Tangible assets                197,560                   229,599

Intangible assets                4,680                 2,008,372

Investments                    146,118                    19,694
    
                            ----------                ----------

                               348,358                 2,257,665

                            ----------                ----------

Current assets

Debtors                      1,041,576                   904,257

Investments                     77,798                    61,077

Cash at bank and in hand     3,275,245                 3,946,806
                            ----------                ----------

                             4,394,619                 4,912,140

Creditors: Amounts 
falling due within one 
year                          (669,998)                 (647,310)

                            ----------                ----------

Net current assets           3,724,621                 4,264,830
  
                            ----------                ----------

Net assets                   4,072,979                 6,522,495

                            ==========                ==========

Capital and reserves

Share capital                  840,856                   839,856

Share premium                3,086,393                 6,097,267

Profit and loss account        145,730                  (414,628)

                            ----------                ----------

Equity shareholders' funds   4,072,979                 6,522,495

                            ==========                ==========



SAVOY ASSET MANAGEMENT PLC

CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 March 2003

                                  2003                      2002
                                     #                         #

Net cash outflow from
operating activities          (638,520)                 (133,931)

Returns on investments and
servicing of finance
Interest received              126,773                   147,229

Taxation
Corporation tax refunded           290                    74,059

Capital expenditure and
financial investment
Purchase of tangible 
fixed assets          (46,166)               (25,087)

Purchase of 
investments          (146,118)                  Nil

                              (192,284)                  (25,087)
                     --------                --------

Acquisitions and 
disposals
Sale of fixed 
asset investments         Nil                   1,710

Exchange gains 
(losses)               31,180                  (6,877)

                                31,180                    (5,167)
                     --------                --------

Equity dividends 
paid
Dividends paid to 
shareholders                       Nil                   (334,392)

Financing
Issue of ordinary shares         1,000                      4,500

                               -------                   --------

Decrease in cash in
the year                      (671,561)                  (272,789)
  
                               =======                   ========

Reconciliation of net 
cash flow
to movement in net 
funds
Decrease in cash 
balances in
the year                      (671,561)                  (272,789)

                               =======                   ========


These preliminary figures were approved by the Board on the 22nd July 2003 and
have been prepared on the basis of the Company's existing accounting policies as
set out in its audited Report and Accounts for the year to 31st March 2002 and
the interim statement to the 30th September 2002.

Enquiries:

Christopher Saunders - Chief Executive, Savoy Asset Management PLC 0161 449 0456

Paul Tarran - Finance Director, Savoy Asset Management PLC         020 7659 8083



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