Interim Results

RNS Number:4079S
City Of London Group PLC
24 November 2003


RELEASED ON BEHALF OF:                                      Monday
CITY OF LONDON GROUP PLC                               November 24, 2003



CITY OF LONDON GROUP Plc - interim Report for period to September 30, 2003
(A printed copy of the full Interim Statement will be sent to shareholders
within 7 days)



   CITY OF LONDON GROUP REPORTS END-SEPTEMBER NET ASSETS OF 55p A SHARE AFTER
               PREVIOUSLY ANNOUNCED RCHIVE-IT.COM WRITEDOWN PROVISION


  * Sale Of Email Archiving Business To Americans Now Completed
  * 10p.c. Placing At 65p A Share Raises #564,000
  * Investment Portfolio Shows Useful Recovery
  * Half-time Profits Of #214,000 Before #1.31m Provision


City of London Group Plc, the mining PR specialist and portfolio and technology
investor, reports end-September net assets of #4.75m (including investments at
market value), equivalent to 55p a share, after deducting a #1.31m writedown
provision on the investment in 91p.c.-owned Rchive-it.com Ltd following the sale
of its business to US-based Connected Corporation.

With COLG shareholders approving the Rchive-it disposal at the EGM on November
7, the sale has now been completed and the first payment of $700,000 (#420,000)
of the $2.45m guaranteed minimum purchase price (plus a one per cent equity
stake in Connected Corporation) has been received by Rchive-it.com. Once
received from Rchive-it in loan repayments, COLG will use the funds to reduce
group borrowings. The writedown provision is based on the difference between the
guaranteed minimum purchase price and the book value of COLG's investment.

Following the EGM approval of the Rchive-it deal, COLG announced that it had
made a placement of 868,970 shares to Savoylane Ltd, a London-based investment
company, at 65p a share to raise #564,830 which would allow a further reduction
of bank borrowings and improve the length and terms of its banking facility. The
placing represented a 10p.c. issue, as permitted by a renewed resolution at
July's AGM. It brings aboard further new shareholders.

The quoted investment portfolio made a useful recovery in the period to
end-September, having a market worth of #6.33m at that date, #786,000 greater
than net book value. This surplus over book value compares with an end-March
shortfall of #23,000 on book value, after the end-March writedown of #1.25m
against book value. Notable gainers included core holdings First Choice Holidays
and Signet. The general portfolio recovery has continued since then, boosted by
further smart rises in African Eagle, Dragon Mining, Proteome Sciences and
Ofex-listed Britannia Finance Holdings.




Before the writedown provisions, group pre-tax profits in the six months to
end-September 2003 amounted to #214,000 (#260,000). After provisions, the first
half loss was #1.10m, which compares with #2.34m in the first six months of
2002-03 when the #2.6m costs of the ECeurope.com Ltd and DBC Ltd investments
were written off.

COLG's first half profits before the writedown provisions were made up of a PR
operating loss of #59,000 (loss #26,000) on sales of #136,000 (#204,000),
unchanged investment income of #121,000, interest payable of #82,000 (#43,000),
and realised capital gains of #234,000 (#208,000), this last amount largely
resulting from additional sales of Oxiana Resources  shares to contribute
further realised gains of #218,000.

At end-September, after deducting bank borrowings of #3.05m, portfolio
investments (at market value and including unlisted holdings) amounted to
#3.57m, equivalent to 41p per share. In addition, the Rchive-it.com investment
(including loans), based on the guaranteed minimum purchase price of the
business, was worth #1.36m, equivalent to an additional 15.6p per share.

Net asset value per share currently stands at 61p.

Chairman John Greenhalgh commented:  "We remain with an interesting investment
in the email archiving business but no longer burning cash.     Connected have a
customer base of 600 global corporates to market to - a great advantage.
Management attention which has had to keep an ever watchful eye on this business
in the past can be concentrated back into the neglected PR area as well as
giving business stimulus elsewhere.    COLG is a changing group and is well
prepared to make changes when this can add value for shareholders.     I have
every confidence that we will be in good shape by the year end and, with this
regained strength, addressing new horizons."



Further info:   John Greenhalgh, Chairman           Peter Doye, Deputy Chairman
                City of London Group Plc            020 7628 5518
                070500 39678  - Mobile







UNAUDITED INTERIM RESULTS

City of London Group plc
Profit & Loss Account
                                        6 mths to 30/09/03  6 mths to 30/09/02  6 mths to 30/09/01  Yr to 31/03/03
                                               #000               #000               #000               #000

Turnover                                        136                204                272                372

Operating Profit/(Loss)                        (59)               (26)                 35               (49)

Interest Receivable                               0                  5                 13                 10
Dividends Receivable                            121                116                135                235
Interest Payable                               (82)               (43)               (16)              (113)
                                               (20)                 52                167                 83

Profit on disposal of Subsidiary                  0                  0                190                  0
Profit/(Loss) on disposal of                    234                208                (7)            (3,574)
Investments
Provision for diminution in value           (1,315)            (2,604)                  0                  0
of investments
Profit before taxation                      (1,101)            (2,344)                350            (3,491)

Taxation                                       (21)               (43)               (56)               (18)

Profit attributable to                      (1,122)            (2,387)                293            (3,509)
shareholders

Dividend                                          0                  0              (182)                  0

Profit retained                             (1,122)            (2,387)                112            (3,509)

Earnings per share                         (12.91p)           (27.81)p              3.45p           (40.62)p
Rate of Dividend                              0.00p              0.00p              2.13p           (40.62)p



Notes

1.   Because the charge for taxation is for a period of less than one year, the 
     provision is based on the best estimate of the effective rate for the full 
     year.

2.   The calculation of earnings per Ordinary Share is based on the loss after 
     taxation of #1,122,000 (2002 #2,387,000) and on the number of shares in 
     issue being the weighted average number of shares in issue during the 
     period of 8,689,730 (2002 8,584,155).

3.   The information given as comparative figures for the financial year ended 
     31st March 2003 was extracted from the Company's statutory accounts for 
     that financial year. Statutory accounts for that financial year have been 
     reported on by the Company's auditors and delivered to the Registrar of 
     Companies.  The report of the auditors was unqualified.

4.   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.





UNAUDITED INTERIM RESULTS

City of London Group plc
Balance Sheet

                               6 mths to 30/09/03   6 mths to 30/09/02   Yr to 31/03/03
                                       #000                 #000               #000

Investments                           5,791                8,970              5,843
Fixed Assets                              7                   10                  8
                                      5,798                8,980              5,851

Current Assets:
Current asset investments             1,359                    0              2,392
Debtors                                  89                   66                 61
Cash                                      1                   16                209
                                      1,449                   82              2,662

Creditors:amounts
falling due within 1 yr             (3,334)              (2,909)            (3,478)

Net Current Assets                  (1,885)              (2,827)              (816)

Total Assets less
current liabilities                   3,913                6,153              5,035

Provision for liabilities                 0                    0                  0
and charges

Net Assets                            3,913                6,153              5,035



Share Capital                           869                  869                869
Share Premium                         4,201                4,198              4,201
P&L Reserves                        (1,157)                1,086               (35)
                                      3,913                6,153              5,035






UNAUDITED INTERIM RESULTS

City of London Group plc
Cashflow
                                               6 mths to 30/09/03   6 mths to 30/09/02    Yr to 31/03/03
                                                       #000                #000                #000

Cashflow from Operating Activities                    (364)                (35)               (958)

Returns on Investments & Servicing of Finance
Interest Paid                                          (82)                (43)               (113)
Interest Received                                         0                   5                  10
Dividends Received                                      132                 129                 249
Net Cash inflow from returns on                          50                  91                 146
investments and servicing of finance                                         


Taxation                                                  0                   0               (186)

Capital Expenditure & Financial
Investment
Purchase of tangible fixed assets                         0                 (2)                 (3)
Purchase of Investments                                (44)               (839)               (496)
Sale of Investments                                     325                 442                 591
Payments made under loan guaranteed                       0                   0               (300)
Net Cash outflow from capital expenditure
and financial investment                                281               (399)               (208)


Acquisitions and disposals
Sale of subsidiary                                        0                   0                   0

Equity Dividends paid                                  (58)               (312)               (401)
Increase in Bank loans                                    0                 559               1,722
Repayment of bank loans                               (132)
Issue/(Costs) of Ordinary Share                           0                 (6)                   0
Capital
                                                      (190)                 241               1,321

                                                      (223)               (102)                 115


Reconciliation of operating profit to net cashflow
from operating activities

Operating profit                                       (59)                (26)                (49)
Depreciation charged                                      1                   3                   7
(Increase)/Decrease in current asset                  (278)                   0               (937)
investments
(Increase)/Decrease in debtors                         (39)                  12                  17
Increase/(Decrease) in creditors                         11                (24)                   4

                                                      (364)                (35)               (958)




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