Grosmont Hldgs PLC - Final Results

RNS No 9808t
GROSSMONT HOLDINGS PLC
12th March 1999


GROSMONT HOLDINGS PLC

Preliminary results for the year ended 31 December 1998

Chairman's Statement

Profit after tax for the year was #96,400. This was the result of generating
over #153,000 of interest receivable on funds on deposit and only incurring
expenses of #37,200 for the necessary professional and associated costs of
continuing to be a publicly quoted company.

As a result net asset value at 31 December 1998 was 2.65 pence per share, an
increase of 0.09 pence per share on 31 December 1997.

As I mentioned in the 1998 Interims, we have continued to look at a wide
variety of potential investment opportunities, from value added computer
hardware resellers to car hire, software and design to mining, property
maintenance to e-commerce.  As yet none of these have made it through our
extensive due diligence process.

We continue to look at ideas and opportunities and remain convinced that, at
some point in the future, a suitable investment opportunity will arise.  The
process of improving our profile with introducers of possible opportunities
continues.

The ongoing malaise in the smaller quoted company sector has not assisted our
search and is holding back privately owned businesses from the quotation
process. Indeed we are seeing an increasing number of smaller quoted
businesses being taken private, with the financial backing of a variety of
venture capitalists.  When valuations of sub FTSE 350 companies in the public
marketplace are at such a low ebb the virtues of seeking a quotation are more
difficult to extol.  However, there will continue to be situations where
privately held businesses require development capital and mechanisms to
provide a visible value to their business.  We are able to offer both of
these.

O. J. Vaughan 
Chairman
12th March 1999
 
Profit and Loss Account
for year ended 31 December 1998
   
                                           Year ended      Period from
                                           31 December     24 April 1997
                                           1998            to 31 December 1997
                                           #'000              #'000          

Administrative expenses                    (37.2)             (26.1)
Profit on sale of investments                0.8                  -           
         
Income from fixed asset investments
Interest receivable                          4.6               36.0  
                                           153.4               77.4  

Profit on ordinary activities before 
taxation                                   121.6               87.3  

Taxation                                   (25.2)             (19.5)

Retained profit for the period              96.4               67.8  

Basic earnings per ordinary share           0.10p              0.07p

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

Balance Sheet
at 31 December 1998
                                         31 December        31 December
                                                1998               1997
                                               #'000              #'000
Fixed assets              

Investments                                    338.5             250.0  
                                               338.5             250.0  

Current assets              

Debtors                                          4.1               4.4  
Cash at bank and in hand                     2,361.5           2,336.9  

                                             2,365.6           2,341.3  

Creditors: 
Amounts falling due within one year            (49.4)            (33.0)

Net current assets                           2,316.2           2,308.3  

Net assets                                   2,654.7           2,558.3  

Capital and reserves              

Called up share capital                      1,000.0           1,000.0  

Share premium account                        1,490.5           1,490.5  

Profit and loss account                        164.2              67.8  
Equity shareholders' funds                   2,654.7           2,558.3  

Net assets per share                            2.65p             2.56p

Approved by the Board on 12 March 1999

A.C. Roberts
Director

Cash Flow Statement
for the year ended 31 December 1998

                                                                   Period from
                                              Year ended      24 April 1997 to
                                              31 December          31 December
                                                     1998                 1997
                                            #'000    #'000     #'000     #'000

Net cash outflow from operating activities           (33.2)              (9.8)

Returns on investments and servicing
of finance
Interest received                           153.4              77.4  
Income from fixed asset investments           3.7              28.8    

Net cash inflow from returns on   
   Investments and servicing of finance              157.1              106.2 

Taxation
UK Corporation Tax paid                              (11.6)                 - 

Capital expenditure and financial 
   Investments
Purchase of fixed asset investments       (115.5)                -
Sale of fixed asset investments             27.8                 -
      
Net cash outflow from capital expenditure 
  and financial investment                          (87.7)                 -  

Cash inflow before management of  
   liquid resources and financing                    24.6                96.4 
Management of liquid resources
Increase in short term deposits                     (50.0)           (2,280.0)

Financing
Issues of ordinary share capital               -           2,250.0  
Expenses paid in connection with share 
issues                                         -             (9.5)       

Net cash inflow from financing                          -             2,240.5 

(Decrease)/Increase in cash in the period           (25.4)               56.9 


Notes 

1       The financial information set out in the preliminary results for the
year ended 31 December 1998 does not constitute statutory accounts within the
meaning of Section 240 of the Companies Act 1985.

The statutory accounts for the year ended 31 December 1998 have not yet been
delivered to the Registrar of Companies.  The auditors have made a report
under Section 235 of the Companies Act 1985, as amended, in respect of such
accounts, which was unqualified and did not contain a statement under Sections
237(2) or (3) of the Act.

2       The calculation of basic earnings per share has been based on the
profit on ordinary activities after tax of #96,400 (1997: #67,800) and on the
weighted average of 100,000,200 ordinary shares in issue during the period. 
The Company's weighted average share price for the year was lower than the
2.5p exercise price of the share options and warrants and there is therefore
no dilutive effect of the options and warrants.

3       Copies of the audited financial statements will be posted to
shareholders on 12 March 1999 and may be obtained from the Company Secretary
at the Company's registered office: 223a Kensington High Street, London W8
6SG.

END

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