Hacas Group PLC - Interim Results

RNS Number:3048K
Hacas Group PLC
10 May 2000


                   HACAS Group PLC ("HACAS")
  (The leading UK social housing consultancy with offices in
                     London and Edinburgh)
                               
      INTERIM RESULTS FOR THE PERIOD ENDED 31 MARCH 2000
                               
                               
HIGHLIGHTS

Six months to 31             2000        1999    Change
March:

Turnover                   #2.91m      #2.20m      +32%

Profit before tax        #976,081    #473,950     +106%

Earnings per share          2.93p       1.27p     +131%
(basic)

Dividend                    0.55p       0.50p      +10%
                               

*    Core consultancy business shows substantial growth
*    Exceptional profit on disposal of residential property of
     #286,000
*    Work  on  364 projects for 213 clients during the  first
     half for:
          *    163 housing associations
          *    35 local authorities
          *    15 other clients
*    HACAS Asset Management Services growing rapidly
*    Actively looking at acquisitions
*    Demand for the Group's broad range of services increasing


For further information:
Julian Ashby (Chairman)                 020 7609 9491

Brian Coleman-Smith / Amanda Clewlow    020 7786 9600
Binns & Co Public Relations

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 owns over  25%  of
the UK housing stock.

The  HACAS group advises some of the largest local authorities
(such  as  Birmingham  City Council) and  a  majority  of  the
largest  housing  associations.  The 500 most regular  housing
association  clients hold assets ranging between  #50  million
and   #1.4   billion.    Other  clients   include   government
departments,  Housing  Corporation, Scottish  Homes,  National
Audit Office and the Audit Commission.

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  housing  association   and
substantial funding from the commercial loans market.   It  is
anticipated  that  some #13 billion of such  funding  will  be
required over the next ten years.  This is a key area  of  the
Group's work.

HACAS carries out research for government departments and
regulators and also advises financial institutions, commercial
companies involved in the social housing and residential
property.
                               
                   HACAS Group PLC ("HACAS")
  (The leading UK social housing consultancy with offices in
                     London and Edinburgh)
                               
      INTERIM RESULTS FOR THE PERIOD ENDED 31 MARCH 2000

Chairman's Statement

Results

We  are  pleased  to  report  interim  results  that  show   a
significant increase on the comparable period last  year.   In
the  first half of the year we have worked on 364 projects for
163  housing  associations and charities, 35 local authorities
and  15 other clients.  Turnover is up 32%, profits before tax
from  core  businesses have increased by  46%.   In  addition,
profits on property disposals have made a substantial but non-
recurring  contribution of #286,000 and  this  has  helped  to
boost earnings per share by 131%.  Net cash at 31 March is  up
56% to # 4.4 million.

Dividend

In the light of the good progress, the Directors have declared
an interim dividend of 0.55p per share (a 10% increase on last
year) payable on 5 July to shareholders on the register at  22
May.

Business Development

Our  mainstream  consultancy work  for  housing  associations,
local authorities and government agencies has grown in each of
these  areas.   HACAS Asset Management Services  continues  to
grow  rapidly and HACAS Exchequer Services (our SFA-registered
subsidiary) continues to make a useful contribution.

The   planned   disposals  within  our  residential   property
subsidiary have made a substantial contribution to first  half
profits.   By the end of the current financial year we  expect
the  number of remaining properties to be reduced to  four  or
five  and  this contribution from disposals will not therefore
be repeated.

Outlook

The  second  half  has  begun well.  The  publication  of  the
government's   Green  Paper  on  housing  has  confirmed   the
continuation of its housing strategies to which the company is
well  placed  to contribute.  At a time of rapid  change,  the
demand for our broad range of services is increasing.

We   are   actively  looking  at  the  acquisition  of   other
consultancies that would complement our range of services.  If
successful, these should lead to a further enlargement of  the
Group.   We  have  also  decided to make  a  number  of  small
investments in areas where our consultancy knowledge gives  us
a  particular insight.  We expect to make two such investments
in the current financial year.

Staffing

We  are a people business and our continued success is due  to
the   skill  and  commitment  of  our  staff.   We  have   now
implemented  the  planned  share option  scheme  covering  all
employees.   We thank them all for their contribution  to  the
company.

Julian Ashby
Chairman
9 May 2000

Unaudited Consolidated Profit and Loss Account
for the 6 months to 31 March 2000

                         Six Months   Six Months     Year to
                              to 31        to 31          30
                         March 2000   March 1999   September
                                                        1999
                                                            
TURNOVER - CONTINUING     2,914,707    2,198,636   4,597,608
OPERATIONS
Rental income                27,778       77,767     140,015
Net operating expenses   (2,310,846)  (1,852,136) (3,747,711)
Profit on property          286,450            -      43,890
disposals
                         ----------   ----------  ----------
OPERATING PROFIT            918,089      424,267   1,033,802
Interest receivable          57,942       49,683      93,841
                         ----------   ----------  ----------
PROFIT ON ORDINARY                                          
ACTIVITIES BEFORE           
TAXATION                    976,031      473,950   1,127,643
Tax on ordinary            
activities                 (219,415)   (147,443)   (378,241)
Ordinary dividends         (140,485)   (127,714)   (283,926)
                         ----------   ----------  ----------
RETAINED PROFIT FOR         616,131      198,793     465,476
PERIOD
                             ======       ======      ======
Earnings per share             2.93p       1.27p       2.90p
(basic)
Earnings per share             2.77p       1.21p       2.76p
(fully diluted)


Notes:

1.   The  figures  for  the  year to  30  September  1999  are
     extracted from the audited accounts for the group.

2.   The  figures for turnover - continuing operations and net
     operating  expenses  - include an amount  of  inter-group
     turnover.  In the opinion of the Directors of HACAS Group
     plc these amounts are not material and do not affect the 
     profit shown.

3.   Earnings  per share are based on the following number  of
     operating shares in issue:

                        Issued              Fully Diluted
                        
     31 March 1999      25,795,230          27,009,523
     30 September 1999  25,824,932          27,124,832
     31 March 2000      25,824,932          27,314,789

4.   A   copy   of  this  statement  is  being  sent  to   
     all shareholders.  Further copies can be obtained from 
     HACAS, United House, North Road, London N7 9DP.

     
     Group Balance Sheet
     
     
                         Unaudited  Unaudited  Audited at
                                at      at 31          30
                          31 March      March   September
                              2000       1999        1999
     Fixed assets                                        
     Investments            50,004     10,004      50,004
     Tangible assets     1,001,279  1,659,380   1,971,785
     Intangible assets    (756,427)     -        (795,785)
                         ---------  ---------  ----------
                           294,856  1,669,384   1,226,004
                         ---------  ---------  ----------
     Current assets                                      
     Work in progress      384,992    304,238     293,376
     Debtors             1,032,551    773,120     996,971
     Cash  at bank  and  4,403,039  2,553,636   2,828,580
     in hand
                         ---------  ---------  ----------
                         5,820,582  3,630,994   4,118,927
                         ---------  ---------  ----------
     Creditors: falling  1,576,464  1,032,744   1,117,842
     due   within   one
     year
                         ---------  ---------  ----------
     Net current assets  4,244,118  2,598,250   3,001,085
     Total assets  less                                  
     current             
     liabilities         4,538,974  4,267,634   4,227,089
     Provisions            (72,000)         -    (72,000)
                         ---------  ---------  ----------
     Totals              4,466,974  4,267,634   4,155,089
                         ---------  ---------  ----------
     Capital and                                  
     reserves
     Called  up share    2,582,493  2,579,523   2,582,493
     capital
     Share premium         483,453    521,321     483,453
     account
     Profit and loss     1,207,413    324,329     591,012
     account
     Revaluation           193,615    842,461     498,131
     reserve
                         ---------  ---------  ----------
     Shareholders funds  4,466,974  4,267,634   4,155,089
                         ---------  ---------  ----------

END

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