Grosmont Hldgs PLC - Interim Results

RNS No 3663f
GROSMONT HOLDINGS PLC
6th August 1998

INTERIM REPORT
Six months to 30 June 1998

Chairman's Statement 

In the six months to 30 June 1998 we have looked at quite a lot of investment
opportunities, from manufacturers of air conditioning equipment to Internet
shopping services, early stage biotechnology to car body shops.  None of these
have yet resulted in an investment being made.

Our view remains that there are or will be opportunities to make investments
in good quality management in strong growth markets and, as such, we will
retain our relatively demanding criteria. We are keen to raise awareness of
our ability to provide substantial levels of funding to attractive business
propositions and continue to do so through a variety of networks.

The market currently is such that private equity capital providers (venture
capitalists etc.) are participating in deals at valuation levels substantially
above levels we would be prepared to invest at and thus getting to the front
of the queue for deals. In time we believe this will change, giving us
additional opportunities.  In addition at some point there will be an economic
downturn and sources of finance for newer businesses will become more scarce,
providing further opportunities for us.

In terms of the reported result for the six months, the profit after tax is
#47,700. Income in the period was exclusively interest on the funds deposited
and expenses of #21,600 relate only to the essential costs of being a public
quoted company.

Net assets per share at 30 June 1998 were 2.61 pence, 0.11 pence above the
issue price in June 1997.

We are continuing to work our way through a number of possible opportunities
that may or may not prove to be worthwhile. However we are in no hurry to do a
deal merely for the sake of doing something. When we do invest it will be what
we firmly believe to be a good deal.

O.J. Vaughan
Chairman               

Profit and Loss Account

Unaudited    Unaudited       Audited
                                Six months to    24 April 1997   Year ended
                                      30 June    to 31 October   31 December
                                         1998    1997            1997
                                        #'000    #'000           #'000


Administrative expenses                (21.6)           (19.2)        (26.1)
Income from fixed asset                    -                -          36.0 
investments


(Loss)/profit on ordinary activities
before interest                        (21.6)           (19.2)           9.9
Interest                                 82.1             48.8          77.4
  

Profit on ordinary activities before
taxation                                 60.5             29.6          87.3
Taxation                               (12.8)           (10.3)        (19.5)


Retained profit for the period           47.7             19.3          67.8
 

Basic earnings per share - pence         0.05             0.02          0.07
              

Fully diluted earnings per share
- pence                                  0.06             0.05          0.09  
 
  
Balance Sheet

                                    Unaudited        Unaudited       Audited
                                Six months to    24 April 1997    Year ended
                                      30 June    to 31 October   31 December
                                         1998             1997          1997
                                        #'000            #'000         #'000

Fixed assets
Investments                               250              250           250

Current assets
Debtors                                   3.3              1.3           4.4 
Cash bank and in hand                 2,401.2          2,284.9       2,336.9
                                      2,404.5          2,286.2       2,341.3
Creditors due within one year          (48.5)           (26.4)        (33.0)

Net current assets                    2,356.0          2,259.8       2,308.3

Net assets                            2,606.0          2,509.8       2,558.3

Capital and reserves
Called up share capital               1,000.0          1,000.0       1,000.0
Share premium                         1,490.5          1,490.5       1,490.5
Profit and loss account                 115.5             19.3          67.8
          

Equity shareholders' funds            2,606.0          2,509.8       2,558.3


Net assets per share - pence             2.61             2.51          2.56

Cash Flow Statement

                                    Unaudited        Unaudited       Audited
                                Six months to    24 April 1997    Year ended
                                      30 June    to 31 October   31 December
                                         1998             1997          1997
                                        #'000            #'000         #'000
Net cash outflow from operating
Activities                             (17.7)            (4.4)         (9.8)


Returns on investment and servicing 
of finance                     
Interest received                        82.1             48.8          77.4
Income from fixed asset investments         -                -          28.8

Net cash inflow from returns on
investments and servicing of finance     82.1             48.8         106.2  
    

Cash outflow before management 
of liquid resources and financing        64.4             44.4          96.4


Management of liquid resources                     
Net funds placed on 7 day deposit    (2,370.0)       (2,260.0)     (2,280.0)

Financing                     
Issue of shares                              -         2,250.0       2,250.0
Expenses of share issue                      -           (9.5)         (9.5)
     
                                             -         2,240.5       2,240.5
                     
(Decrease)/Increase in cash 
in the period                        (2,305.6)            24.9          56.9

Notes to the Accounts

1       Basis of preparation

The unaudited accounts for the six months to 30 June 1998 do not constitute
statutory accounts.

Comparative figures for the six months to 30 June 1997 are not available due
to the Company not commencing to trade until 24 April 1997.  Comparative
figures shown are for the period from 24 April 1997 to 31 October 1997 and are
unaudited.

2       Taxation

The tax charge for the six months to 30 June 1998 has been calculated at 21
per cent, and represents an estimate of the appropriate proportion of the
expected charge to 31 December 1998.

3       Earnings per share

Basic earnings per share has been calculated on the profit after tax for the
period divided by the average number of shares in issue at 30 June of
100,000,000.  Fully diluted earnings per share includes warrants and options
which if exercised would give rise to the issue of a further 252,000,000
shares.

4       Investments
                                    Listed         Unlisted        Total
                                     #'000            #'000        #'000
Cost
At 1 January 1998                    110.0            140.0        250.0
Reclassification                     125.0          (125.0)            -   
   
At 30 June 1998                      235.0             15.0        250.0

Market value at 30 June 1998         215.5             28.9        244.4


5       Other Information

The interim report was approved by the Directors on 6 August 1998.

A copy of the interim report will be posted to shareholders and made available
to the public at the company's registered office, 223a Kensington High Street,
London W8 6SG.

 
END

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