Preliminary Results

RNS Number:4632N
Swan(John) & Sons PLC
11 July 2003



                              JOHN SWAN & SONS PLC

                 PRELIMINARY RESULTS FOR YEAR TO 30 APRIL 2003


STATEMENT BY THE CHAIRMAN

I am pleased to report to members that over the past year there has been a
definite resurgence in the popularity of the Auction System and this has been
clearly demonstrated in the increase in throughput at both our St Boswells and
Wooler sales. Our St Boswells weekly Prime Cattle sale is one of the largest in
Scotland and indeed one of the largest in the UK. In addition, the covered
accommodation we are building at St Boswells this autumn will provide a modern
environmentally friendly facility where not only stock will be suitably
accommodated but our customers and staff may conduct their business in relative
comfort, thus complimenting the up to date facilities we have at Wooler.

The past twelve months have demonstrated, without doubt, that the live auction
system has reinforced its position as the principal marketing method which
provides the competitive element for establishing the true value of the many
varied classes of livestock which are reared on an Island such as ours, with all
of it's geographical and climatical variances. I would urge members and
customers to continue or increase their support of your markets which strive to
provide a service which is both economic and efficient to buyers and sellers
alike.

Our diversification programme continues to make progress. The Estate and
Property Division has been especially active throughout the current year,
resulting in several agricultural and residential properties being sold from
Ayrshire to south Northumberland. Our company continues to be asked to conduct
sales of a variety of non-agricultural subjects and we are actively pursuing a
larger share of that type of business.

Our joint venture company, Braveheart Beef (Scotland) Ltd, has now completed
it's first full year's trading, which has been profitable and it is without
doubt, that the continuing success of our weekly prime cattle sale is partly due
to the participation of "Braveheart" as a customer, which has enabled the sale
to expand to the ultimate benefit of all our customers.

Shareholders will be well aware of the difficulties and costs encountered during
the year in resolving differences of opinion between shareholders regarding
on-going strategy. I do not propose to re-visit the debate, the outcome of which
was an overwhelming expression of support for continuing development of our
livestock auction business. Shareholders will, however, note the exceptional
operating cost of #289,000 incurred in respect of the requisitioned EGM of
November 2002. Without this expenditure, our trading loss for the year (another
year of transition from the effects of foot and mouth disease) would have been
#39,000, not the #328,000 reported, and close to the #34,000 reported for 2001/
02.

However, taking account of all the views expressed, the Board has decided to
implement a re-construction, which is intended to take effect on 1 August 2003.
The detail of the changes will be announced at that time but, in principle, the
trading business which you recognise as John Swan & Sons is to be hived down in
order to allow it the financial and strategic independence to develop. I shall
remain Chairman and there will be no change as far as customers and management
are concerned.

John Swan & Sons plc will retain ownership of the properties and responsibility
for realising assets not in use. The company will require only a small board on
which I will sit as a director. Whilst this realisation activity continues and
in view of the particular issues arising from our public company status, the plc
will be chaired by Alastair Ritchie, who is currently my deputy.




Shareholders will continue to receive consolidated accounts and, therefore, I
must emphasise that this change is designed to strengthen our auction mart
business, whilst ensuring that we do not have a repetition of the regrettable
events of this past year.

I am pleased to report that the sale of surplus assets is proceeding and,
despite our substantial extraordinary costs, this income allows us the decision
to pay a dividend of 10p per ordinary share. In addition, I hope to announce
further good news on the realisation front, when contracts have been exchanged.

I will, however, have nothing to report soon specifically about the land at
Gorgie, although shareholders should be aware that plans are advanced for
maximising our outcome. With this in mind, a property specialist will be
recruited for the plc board to oversee this process.

With regard to the pension fund surplus, it is frustrating to report that this
is not yet to hand, despite our applying pressure where appropriate. In the
existing climate of concern about pension schemes in general, we are of
necessity adopting a cautious approach, but shall continue to monitor the
situation and progress matters as quickly as possible.

May I take this opportunity to thank our staff, our customers and our
shareholders for their loyal support during what was a significantly difficult
year for your board.

DATE OF ANNUAL GENERAL MEETING

The Annual General Meeting will be held on 19 August 2003 in The Lodge Hotel,
Carfraemill, Lauder at 12.15 p.m.

TRANSFER BOOKS

Transfer books will be closed from 16 to 18 July 2003, both dates inclusive, for
the preparation of dividend warrants. Warrants for the proposed dividend, if
approved at the Annual General Meeting, will be posted on 19 August 2003 to
shareholders on the register at the close of business on 18 July 2003.



Geoghegan & Co

Secretaries

11 July 2003

JOHN SWAN & SONS PLC

PROFIT AND LOSS ACCOUNT
for the year ended 30 April 2003

                                                    2003          2002

Turnover : company and share     2,408,658                   1,576,468
of joint venture
Less : share of joint            1,050,204                     327,696
venture turnover

COMPANY TURNOVER                              #1,358,454    #1,248,772


Staff costs                                      761,829       727,114
Depreciation                                      89,604        63,708
Other operating charges                          545,595       491,472
Exceptional operating                            289,031             -
charge
                                               1,686,059     1,282,294


COMPANY OPERATING LOSS                          (327,605)      (33,522)

Share of operating profit                         19,990         1,269
in joint venture
                                                (307,615)      (32,253)

Exceptional items                                384,410             -

PROFIT/(LOSS) ON ORDINARY
ACTIVITIES BEFORE

INVESTMENT INCOME, INTEREST AND                   76,795       (32,253)
TAXATION

Income from unlisted                                 182           922
investments

Interest receivable                               22,716        41,777

Interest payable

Company                            (37,310)                       (315)

Joint venture                       (6,949)                     (1,658)

                                                 (44,259)       (1,973)

                                                 (21,361)       40,726



PROFIT ON ORDINARY ACTIVITIES
BEFORE

TAXATION                                          55,434         8,473

Tax on profit on ordinary                         23,702        (1,467)
activities



PROFIT FOR THE FINANCIAL                          79,136         7,006
YEAR

Dividends                                         67,200             -

RETAINED PROFIT FOR
COMPANY AND

ITS SHARE OF JOINT                              # 11,936      # 7,006
VENTURE


EARNINGS PER SHARE


Ordinary shares of 25p                              11.8p          1.0p

Deferred shares of 121/2p                            5.9p          0.5p

The company and its joint venture have no recognised gains and losses other than
those included in the profit above and therefore no separate statement of total
recognised gains and losses has been presented.

All items dealt with in arriving at profit on ordinary activities before
taxation relate to continuing operations.

JOHN SWAN & SONS PLC

BALANCE SHEET
as at 30 April 2003


                                                    2003          2002

FIXED ASSETS
Tangible assets
Land and buildings                             1,659,677       413,184
Motor vehicles                                    73,553       121,159
Plant                                            204,158       175,060
                                               1,937,388       709,403

Investment

Investment in joint
venture :
Share of gross assets              193,695
Share of gross                     177,807
liabilities
Share of net assets                               15,888         4,611
                                               1,953,276       714,014

CURRENT ASSETS

Stocks                                           101,133        22,500
Debtors - amounts falling                      1,862,930     1,323,270
due within one year
Investments                                        2,743         3,030
Cash at bank and in hand                         730,503       623,195
                                               2,697,309     1,971,995

CREDITORS - amounts falling
due within one year:
Bank overdraft                                 2,053,525       116,345
Trade creditors                                   21,996        58,467
Current corporation tax                                -        12,005
Other taxes and social                            25,480        33,358
security costs
Proposed dividend                                 67,200             -
Other creditors                                    3,726         7,509
Accruals                                         100,576        78,648
                                               2,272,503       306,332

NET CURRENT ASSETS                               424,806     1,665,663
TOTAL ASSETS LESS CURRENT                      2,378,082     2,379,677
LIABILITIES

PROVISIONS FOR LIABILITIES
AND CHARGES                                       (7,208)      (20,739)

NET ASSETS                                    #2,370,874    #2,358,938

CAPITAL AND RESERVES
Called up share capital                          168,000       168,000
Revenue reserve                                   70,000        70,000
Profit and loss account                        2,132,874     2,120,938


EQUITY SHAREHOLDERS'                          #2,370,874    #2,358,938
FUNDS


JOHN SWAN & SONS PLC

CASH FLOW STATEMENT
for the year ended 30 April 2003

                                         Notes         2003        2002

Reconciliation of
operating loss to net cash
outflow from operating
activities

Company operating loss                            (327,605)      (33,522)
Depreciation                                        89,604        63,708
Loss on sale of tangible                             7,888         8,138
fixed assets
Increase in stocks                                 (78,633)       (3,381)
Increase in debtors                               (536,439)     (163,628)
(Decrease)/Increase in                             (26,204)       38,031
creditors

Net cash outflow from                           # (871,389)    # (90,654)
operating activities


Cash flows


Net cash outflow from                             (871,389)      (90,654)
operating activities
Returns on investments and  1                      (14,482)       42,384
servicing of finance
Decrease in investments                                287        11,952
Taxation                                            (3,221)      (45,321)
Net capital payments        1                     (941,067)      (55,017)
Acquisitions                1                            -        (5,000)
                                                (1,829,872)     (141,656)

Equity dividend paid                                     -       (67,200)

Decrease in cash                               #(1,829,872)    #(208,856)


Reconciliation of net cash
flow to movement in net
(debt)/Funds                2


Decrease in cash in the                         (1,829,872)   (208,856)
year

Net funds at 30 April                              506,850     715,706
2002

Net (debt)/ funds at 30                       # (1,323,022)   #506,850


JOHN SWAN & SONS PLC

NOTES TO THE ACCOUNTS



1    GROSS CASH FLOWS

     Returns on investments and servicing of
     finance
     Interest received                              22,828      42,699
     Interest paid                                 (37,310)       (315)
                                                # (14,482)    # 42,384

     Net capital (payments)/receipts
     Payments to acquire tangible fixed         (1,397,461)    (81,522)
     assets
     Receipts from sales of tangible fixed         456,394      26,505
     assets
                                                # (941,067)   # (55,017)
     Acquisitions
     Investment in joint venture                # -           # (5,000)



2    ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

                                 At                               At
                           30 April 2002      Cashflow       30 April 2003



Cash at bank and in hand       623,195         107,308         730,503
Bank overdraft                (116,345)     (1,937,180)     (2,053,525)
                             # 506,850     #(1,829,872)    #(1,323,022)

 3. NOTE TO THE PRELIMINARY ANNOUNCEMENT

    The abridged financial information set out above has been extracted without
    material adjustment from financial statements approved by the Directors of
    John Swan & Sons PLC on 11 July 2003, which received an unqualified audit
    report by the independent auditors, which will be delivered to the Registrar
    of Companies .

    The financial information has been prepared on the basis of the accounting
    policies set out in the most recently published set of financial statements.

    The financial statements for the year ended 30 April 2002 have been filed
    with the Registrar of Companies.





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