Final Results

RNS Number:5098P
Hacas Group PLC
7 January 2002

                          HACAS Group PLC ("HACAS")
                  (The leading UK social housing consultancy
             with offices in London, Coventry, Leeds and Glasgow)

          AUDITED PRELIMINARY RESULTS FOR THE YEAR 30 SEPTEMBER 2001

Highlights

                                               2001          2000        Change

Turnover                                    #11.27m        #6.43m          +75%
Profit before tax                            #2.04m        #1.45m          +41%
Earnings per share (basic)                    4.77p          4.0p          +19%
Dividend for year                             1.35p          1.2p          +12%
Assets per share (basic)                        27p           23p          +17%



*   First full year post merger with Chapman Hendy Associates

*   Substantial expansion of work for the public sector:


2001                                    2000

54%  public sector                      39%  public sector

37%  housing associations               46%  housing associations

9%    other clients                     15%  other clients



*   HR team and Asset Management teams have both doubled in size

*   Exchequer Services advised on #750m of debt using 6 special purpose
    vehicles

*   First quarter turnover ahead of same period last year



GROUP APPOINTMENTS

David Tolson FCCA, appointed as a Director of HACAS Group PLC

Peter Hammond FCCA, appointed as Group Company Secretary



For further information:

Julian Ashby (Chairman)                                         020 7609 9491

Derek Joseph (Managing Director)                                020 7609 9491

Oliver Scott (Peel Hunt)                                        020 7418 8900



Background note:



The Market



The social housing sector is the Group's primary operating market.  The sector
comprises housing associations, local authority and other public sector
housing providers together with the related government departments,
regulators, trade bodies, suppliers and funders.  This sector comprises about
a quarter of the UK's housing stock.



Government policy encourages area regeneration and substantial investment in
repairing and modernising local authority housing.  This often involves the
transfer of the local authority's housing stock to a new or existing housing
association and substantial funding from the commercial loans market.   Advice
to local authorities and such new housing organisations is a key area of the
Group's work.



The HACAS Group and its clients



The HACAS Group comprises three main operating companies of which HACAS
Chapman Hendy Ltd is the largest.   These companies advise over 120 local
authorities including some of the largest (such as Glasgow and Birmingham).
They also advise a majority of the largest housing associations.  Our 500 most
regular housing association clients hold assets ranging between #50 million
and #1.4 billion.  Other clients include government departments, The Housing
Corporation, Scottish Executive and National Assembly for Wales, Northern
Ireland Housing Executive, National Audit Office and the Audit Commission.



The Group carries out research for government departments and regulators and
also advises financial institutions, commercial companies involved in the
social housing sector, as well as Eastern European governments.



HACAS Chapman Hendy Ltd



HACAS Chapman Hendy is the main operating company  and was formed from the
merger of HACAS Consulting and Chapman Hendy Associates in 2000.  It provides
a wide range of consultancy and outsourcing services to local authorities,
housing associations and other organisations operating in the social housing
sector.



The company is now organized into the following nine consultancy teams:



*   Local authority (finance, regeneration & transfers)

*   Housing association finance and commercial

*   Finance Director placements

*   Best value and housing association

*   North team (full range of services from Leeds base)

*   Asset management services

*   Human Resources

*   Information Technology

*   Care



Other Group subsidiaries



HACAS Exchequer Services Ltd is SFA registered and advises housing
associations and local authorities on funding and treasury management.  It is
active in the stock transfer market and in advising on the refinancing of
existing housing debt.  It has recently developed new special purpose treasury
vehicles for housing associations and this innovation has strengthened demand
for its services.



HCH Scotland Ltd operates from Glasgow and provides a wide range of services
to Scottish housing associations, local authorities and other clients.



The Royal Borough of Kensington and Chelsea Assured Homes PLC was established
under the Business Expansion Scheme in 1990. The Directors have taken
advantage of the strong property market to sell most of the portfolio.


Chairman's Statement



We have now completed our third full year of operations since HACAS Group PLC
was listed on AIM in July 1998.  More significantly, we have completed a full
year since the acquisition and merger of Chapman Hendy Associates with HACAS
Consulting to form HACAS Chapman Hendy.  The resulting company has now
consolidated its position as market leader in the provision of housing related
services to both local authorities and housing associations.  The benefits of
the merger have flowed through into excellent performance across the full
range of the company's work.



Results

We are happy once again to report improved results for the year.  All parts of
the Group have performed well.  Group turnover has increased by 75% to #11.2
million.  Profits before tax increased by 41% to #2.038 million and earnings
per share by 19% to 4.767p.



Dividends

We declared an interim dividend of 0.6p per share in May 2001 and propose a
final dividend of 0.75p per share payable on 11 April 2002 to shareholders on
the register at 18 January 2002.  This will make a total dividend for the year
of 1.35p, an increase of 12.5%.



Growth and Acquisitions

There was steady underlying growth in the core business during the year and we
expect this to continue.  We have welcomed further excellent consultants into
the Group.  The social housing and local authority sector is a substantial
market (providing around 20% of UK housing) and the sector includes many small
consultancy and service company providers.  Following the successful
integration of Chapman Hendy into the Group, we will continue our strategy of
seeking to acquire other consultancies and companies that will complement and
extend the work of the Group.  We are currently exploring options while
continuing to develop new services that will contribute to organic growth.



Staffing

We are a people business with an outstanding staff team.  Our strong
performance through a period of post-merger integration is a testament to
this.  Most of our staff are also shareholders and this long term interest in
the Group's future has been strengthened by the extension of our share option
schemes.  We are also looking to the longer term and laying the foundation for
future succession.  Our thanks go to all members of the Group for their strong
performance.



Outlook

The agenda for regeneration is continuing with broad political support.
Economic and other uncertainties have increased the pressure to come up with
solutions that 'stretch' public funding with private finance.  Housing stock
transfers, Best Value, Arms Length Companies and similar initiatives are
expected to continue.  These are all areas where we have particular expertise.
  Indeed, we are at the forefront through our research for a range of
non-departmental public bodies and government departments.  We are also
advising on many of the 'pilot' projects through which new initiatives are
being tested.



In the first three months of the current financial year turnover is ahead of
the same period last year and all parts of the Group are operating profitably.
  We are aware that the stability of this sector is certain to attract the
attention of other consultancy companies in an economic recession.  However it
is a sector that requires very specific technical competencies which we have
built up over 25 years.  We are confident that this will be a strong platform
for our continuing progress.



Julian Ashby

Chairman

7 January 2002





Managing Director's Report



This is my fourth review as Managing Director of HACAS Group PLC.  The Company
floated and acquired The Royal Borough of Kensington and Chelsea Assured Homes
PLC in August 1998 and acquired Chapman Hendy Associates in 2000.



Operations

Throughout 2001 we have achieved sustained growth in all our main operating
areas.  The integration of HACAS Consulting and Chapman Hendy to form HACAS
Chapman Hendy has taken place successfully.  It has increased our capacity by
some 60% and broadened our range of services.  It has strengthened our 'one
stop shop' approach and this is a key strength in a growing market. Highlights
from some of our various business streams include:



*  HCH is advising on the two largest housing stock transfers in the UK, in
Birmingham and Glasgow,

*  HCH is also advising the UK's largest housing authority, the Northern
Ireland Housing Executive, on strategic issues,

*  The Leeds based team is advising 9 of the 11 local authorities in this
year's housing transfer programme,

*  The HR team has doubled in size and leads our market sector in chief
executive recruitment from the new Coventry
    office,

*  HACAS Exchequer services is raising over #750 million through 6 special
purpose funding vehicles,

*  Our expanded team of 25 finance professionals has provided 'stand in'
management services in a record year,

*  HACAS Asset Management Services has doubled its staffing and workload



Our leading role in the development of national housing strategies is
reflected in work for the Scottish Parliament, Welsh National Assembly,
Northern Ireland Housing Executive and the Department of Transport, Local
Government and the Regions.  We have been involved in key pilot projects for
the establishment of Arms Length Companies, specialist regeneration and '
community' companies and the introduction of Housing Revenue Account business
planning.



We have broadened the range of our work in the public sector.  This includes
advice on the complete re-structuring of a local authority and a full
appraisal of housing options to aid staff recruitment and retention for the
Thames Valley Police Authority.  We have also undertaken major Information
Technology contracts for five London boroughs.



Advice and services to commercial companies has grown during the year.   We
have virtually completed the sale of the properties owned by The Royal Borough
of Kensington and Chelsea Assured Homes PLC and this has resulted in a final
non-recurring contribution to this year's results.  We have also written down
part of our modest investment portfolio in the light of current market prices.
  The net effect of these two actions has been an increase in profit before
taxation of around #200,000 (2000 #190,000).



The increased profit and earnings per share is only part of the story of the
year.  We have broadened the range of both our service and our client base.
We have improved the profitability of the business we acquired through Chapman
Hendy Associates but its margins were significantly lower than HACAS and we
therefore expected overall margins to be down.  We believe that this strategy
makes us well placed to continue progress in spite of a worsening economic
outlook.  The business generates a strong cashflow and bad debts continue at
minimal levels.  We now have available balances of around #6m.



Set out below is a table showing the continuing good progress of HACAS Chapman
Hendy which is the main operating subsidiary of the Group.  Progress so far in
the current year is in line with expectations






Range of work

The range of work we undertake within the social housing sector is continuing
to broaden.  Set out below is a chart showing the balance of work undertaken
for different parts of this sector as at the year end.




While work for local and central government now accounts for around 54% of our
work, we have experienced growth in every sector shown.



Information Technology

Our information technology arrangements enable our consultants and
administrative staff to access our network from home or when they are on the
move.   This has contributed to increased productivity.  We are part way
through the implementation project to improve communication within the
company, develop a core knowledge management system and strengthen our
disaster recovery arrangement.  You are welcome to visit our web site at
www.hch.eu.com.



Marketing

During the year we have exhibited at the two main housing sector conferences
and been guest speakers at many others.  We continue to be in demand to
provide articles for the trade press.  Our expanding senior executive
recruitment work places our name in front of the key decision makers on a
regular basis and contributes to the success of our web site as applicants can
browse for jobs, receive job details and send in applications 'on line'.



We have authored a number of key specialist publications which have sold well
and demonstrate our special expertise in the sector.  These include Partners
in Strategy for the Chartered Institute of Housing, Customer Calling (a major
study of call centres) for the Housing Corporation and Recruitment in RSLs
2001 which we publish ourselves.  Our three regular specialist news sheets -
Resource , Spreadsheet and Asset Manager are well received and increase
awareness of our services to specialist audiences.



Derek Joseph

Managing Director

7 January 2002


CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 30 September 2001
                                                           Total         Total
                                                            2001          2000
                                                               #             #

TURNOVER
Fees receivable                                       11,255,631     6,380,322

                                                      11,255,631     6,380,322

Operating expenses                                    (9,099,616)   (5,140,434)
Other operating income                                    19,203        47,542


OPERATING PROFIT                                       2,175,218     1,287,430

Amounts written off investments                         (295,000)            -
(Loss)/profit on disposal of investment                  (11,484)        5,521
properties
Investment income                                        169,774       157,382


PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION          2,038,508     1,450,333

Taxation                                                (675,868)     (400,568)


PROFIT FOR THE FINANCIAL YEAR                          1,362,640     1,049,765

Dividends                                               (394,133)     (325,245)


RETAINED PROFIT ON ORDINARY ACTIVITIES AFTER             968,507       724,520
TAXATION

EARNINGS PER SHARE       - Basic                          4.767p        4.007p

                         - Diluted                        4.729p        3.917p
   

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the year ended 30 September 2001


                                                          2001          2000
                                                             #             #

Profit for the financial year                        1,362,640     1,049,765
Unrealised surplus on revaluation of investment         74,000        47,700
properties

Total recognised gains and losses relating to        1,436,640     1,097,465
the year


NOTE OF HISTORICAL COST PROFITS AND LOSSES
for the year ended 30 September 2001

                                                             2001         2000
                                                                #            #

Profit on ordinary activities before taxation           2,038,508    1,450,333
Realisation of property valuation gains of previous       154,160      369,111
years

Historical cost profit on ordinary activities           2,192,668    1,819,444
before taxation

Historical cost profit for the year retained after        968,507    1,093,631
taxation and dividends


GROUP BALANCE SHEET
30 September 2001


                                                          2001            2000
                                                             #               #

FIXED ASSETS
Goodwill                                             1,171,282       1,236,353
Negative goodwill                                     (201,615)       (604,846)
Tangible assets                                        417,903         886,800
Investments                                            235,004         530,004

                                                     1,622,574       2,048,311

CURRENT ASSETS
Work in progress                                     1,146,069       1,004,202
Debtors                                              2,543,715       2,223,740
Investments                                             32,492               -
Cash at bank and in hand                             4,749,354       3,333,743

                                                     8,471,630       6,561,685

CREDITORS: Amounts falling due within one            2,179,203       2,076,257
year

NET CURRENT ASSETS                                   6,292,427       4,485,428


TOTAL ASSETS LESS CURRENT LIABILITIES                7,915,001       6,533,739

PROVISIONS FOR LIABILITIES AND CHARGES                       -          10,000

NET ASSETS                                           7,915,001       6,523,739

CAPITAL AND RESERVES
Called up share capital                              2,945,002       2,822,345
Share premium account                                2,066,129       1,840,031
Revaluation reserve                                     96,560         176,720
Profit and loss account                              2,807,310       1,684,643

EQUITY SHAREHOLDERS' FUNDS                           7,915,001       6,523,739



                                                           2001           2000
                                                              #              #

Cash flow from operating activities                   1,606,560        790,425

Returns on investments and servicing of                 169,774        157,382
finance

Taxation                                               (681,283)      (419,972)

Capital expenditure and financial investment            363,184        621,313

Acquisitions and disposals                                    -       (393,740)

Equity dividends paid                                  (358,887)      (325,245)

CASH INFLOW BEFORE FINANCING                          1,099,348        430,163

Financing                                               316,263         75,000

INCREASE IN CASH IN THE PERIOD                        1,415,611        505,163


RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

                                                                             #

Increase in cash in the period                                       1,415,611

MOVEMENT IN NET FUNDS IN PERIOD                                      1,415,611

NET FUNDS AT 1 OCTOBER 2000                                          3,333,743

NET FUNDS AT 30 SEPTEMBER 2001                                       4,749,354


Notes

1.   The above summary information is drawn from the audited accounts for the
year ending 30 September 2001.

2.   There have been no changes of accounting policy from the previous
financial year and therefore no prior year adjustments.

3.   The calculations of earnings per share are based on the following profits
and numbers.


                                                       2001               2000
                                                          #                  #

     Profit for the financial year                1,362,640          1,049,765

   Weighted average number of shares                  2001                2000
                                                     No of               No of
                                                    shares              shares

   For basic earnings per share                 28,585,613          26,201,108
   Exercise of share options                       181,739             599,059
   Issue to employee share schemes                  49,468                   -

   For diluted earnings per share               28,816,820          26,800,167

   Earnings per share
      Basic                                         4.767p              4.007p

      Diluted                                       4.729p              3.917p

4.   Copies of this statement are available free of charge from HACAS Group
PLC, United House, North Road, London N7 9DP   (Telephone [phone]) for a 
period of one month from the date of this announcement.