Trading Update

RNS Number:2180O
Country & Metropolitan PLC
01 August 2003


                                                                   1 August 2003

                           Country & Metropolitan PLC

                            Pre Close Trading Update


Country & Metropolitan Plc ("C&M"), the fully listed housebuilder and developer
of Brownfield re-generation projects, today announces the following trading
update ahead of the Company's preliminary results for the 10 months ended 30
June 2003, which will be announced on Monday 6 October 2003.


The Board is pleased to confirm that trading for the second half of the
financial period will be in line with market expectations.  The Company is
forecasted to deliver for the 10 months ended 30 June 2003  a pre tax profit
before amortisation of goodwill of #6.75m against #3.99m in the previous 12
month period to 31 August 2002.


The Group correctly anticipated the cooling down of the housing market in the
South of England some 18 months ago.  A strategic decision was made to increase
our activities in the North of England, both via our existing operations in the
North and the North West and via the acquisition in August 2002 of  NorthCountry
Homes Group ("NorthCountry").  At the same time we started withdrawing from
developing large luxury homes in North West London and to date only 2 units now
remain in that market which will be released for sale during late summer 2003.
The majority of the Group's developments will now be based on providing good
quality homes at affordable prices and we have a number of new initiatives in
the South East to provide low cost homes for sale.


The volume house building activities of NorthCountry are progressing very well
with healthy margins  being achieved.  This volume allows the Group to take
longer-term decisions on some of the more complex mixed use schemes enabling C&M
to extract more value from these developments.  A number of such projects of
note are as follows:



*  our land fronting the Thames at Hampton Court where Heads of Terms
   have now been agreed with Network Rail to carry out the combined development 
   of our site and the adjoining Hampton Court Station to provide a major mixed 
   use scheme.

*  our joint venture at High Royds Hospital, Menston, near Leeds, which
   we believe is the largest disposal of a NHS hospital in the North of England,
   where planning has now been submitted for 590 residential units and 150,000
   square feet of commercial space and consent is expected by December 2003.


Current trading is particularly strong with forward reservations and exchanges
at 30 June 2003 amounting to #32.9m comprising 281 units.  The management team
at NorthCountry is being further strengthened in preparation for further
increase in volume.


The Group's repositioning in the market place to develop and sell residential
properties at affordable prices coupled with its skills in urban renewal
projects provides it with an excellent opportunity to improve its performance
and create further shareholder value over the next few years.


For further information please contact

Country & Metropolitan Plc                           01895 824111
Stephen Wicks, Chief Executive

Buchanan Communications                              0207 466 5000
Mark Edwards/Jeremy Garcia

J M Finn & Co                                        0207 860 6324
Leslie Kent




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            The company news service from the London Stock Exchange
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