Mountcashel PLC - Interim Results

RNS No 1558r
MOUNTCASHEL PLC
31st July 1997


                     INTERIM REPORT

               Six Months to 30 June 1997

Chairman's Statement

Once again it is my pleasure to present the Group's interim report for what has
been a mixed six months.

Throughout the period the Group's investment strategy has been maintained and we
have continued to undertake indepth research into existing and potential
investee companies. This has sometimes proved successful and other times not so
successful.

The Group has recorded a loss for the six months of #85,500 and a decline in the
realised net asset value, from 96.4p to 95.3 p per share. Taking into account
the unrealised profits in the portfolio at 30 June 1997, of #2,455,000, would
increase the net asset position from 107.2 p at 31 December 1996, to 127.7 p per
share. I would like, however, to qualify this by noting that, in the period
since 30 June 1997, this unrealised element has declined by approximately
#1,200,000, or 15.9 p per share.

As stated, by my brother Oliver, in his Investment Review in the 1996 Annual
Report, we ended 1996 with eleven "Key Investments", some of which had performed
well, others not. This mixed performance has continued into 1997.

Wiggins Group plc has continued to perform well, reflecting a growing level of
interest in their innovative approach to the property market and recent
corporate activity.

Innovative Technologies Group plc has also performed strongly due to a
recognition of the potential value of its intelligent woundcare products and its
gradual transition from being a R&D based company towards being a market led
international woundcare products manufacturing business.

Xenova Group plc and Rackwood Mineral Holdings plc are new additions to our "Key
investments". Xenova is an emerging biopharmaceutical business, which
specialises in the discovery and development of new small molecule drugs,
originally derived from fungi, bacteria and plants.

Rackwood Mineral Holdings plc is a coal mining and marketing company with
interests in England, Scotland, Wales, France and the USA.

These two holdings have taken the place of Inspirations, which after comments in
the 1996 Annual Report had been sold together with a part of our holding in
Cantab Pharmaceuticals. This was realised following strong performance, to
provide funding for the Xenova acquisition.

We add to the list of poor performers Fairway Group and Utility Cable. Both
encountered some trading difficulties and problems with bad debts from which
their share prices have yet to recover.

Our two unquoted investments are continuing to make satisfactory progress and
are moving forward towards their respective floatation timetables.

We will continue the process of constantly reviewing the portfolio, making our
selections without regard for general stock market conditions, but with emphasis
on the fundamentals of investee companies.

In summary, performance for the six months has been satisfactory, but as always
must be viewed with an element of caution. The risks associated with investing
in relatively small businesses, with underperforming equity valuations are not
to be underestimated.

Thomas Vaughan
Chairman
31 July 1997


MOUNTCASHEL PLC

Consolidated Profit and Loss Account

                              Unaudited      Unaudited     Audited
                              Six months     Six months    Year to
                              to 30 June     to 30 June    31 December
                              1997           1996          1996
                              #'000          #'000         #'000

(Loss)/Profit on Sale of 
 Investments                  (34.3)         828.3          950.5

Investment income              51.2           50.4           82.0

Other income                     -            4.7             7.9
                               _____         _____          _____

Total income                   16.9          883.4        1,040.4

Management expenses           (86.4)         (99.8)        (179.3)

(Loss)/Profit on ordinary 
 activities                   (69.5)         783.6           861.1
before interest

Interest receivable               -           18.8            20.0

Interest payable              (16.0)          (2.0)          (19.6)

(Loss)/Profit 
before taxation               (85.5)         800.4           861.5

Taxation credit                   -              -             1.9
                              _____           ____           _____

(Loss)/Profit 
after taxation                (85.5)         800.4           863.4

(Loss)/Earnings per 
ordinary share - pence        (1.13)         10.57           11.40



MOUNTCASHEL PLC

Consolidated Balance Sheet

                              Unaudited Unaudited   Audited
                              30 June   30 June     31 December
                              1997      1996        1996
                              #'000     #'000       #'000

Fixed Assets
Tangible assets                 3.2       4.3         3.2
Investments                 7,962.2   6,897.3     7,756.4
                              ______    ______     ______

                            7,965.4   6,901.6     7,759.6

Current Assets
Debtors                       355.5     937.8        77.9
Bank balances and cash            -      75.1           -

                              355.5   1,012.9        77.9

Creditors due within 
one year                   (1,106.9)   (678.0)     (538.0)

Net Current 
(liabilities)/assets         (751.4)    334.9      (460.1)

Net Assets                  7,214.0   7,236.5     7,299.5


Capital and reserves

Called up share capital     3,785.5  11,149.4     3,785.5

Share premium                 757.8  12,838.8       757.8

Merger reserve                    -   1,003.6           -

Other reserves              2,743.5     907.3     2,743.5

Profit and loss account       (72.8)(18,662.6)       12.7

Shareholders' funds         7,214.0   7,236.5     7,299.5

Net assets per share - pence   95.3      95.6        96.4


MOUNTCASHEL PLC

Consolidated Cash Flow Statement

                             Unaudited    Unaudited    Audited
                             Six months   Six months   Year to
                             to 30 June   to 30 June   31 DEC
                             1997         1996         1996
                             #'000        #'000        #'000

Net cash outflow from operating
activities                  (119.9)         0.5       (149.5)

Returns on investment and
servicing of finance

Interest received                -         18.7         20.0
Interest paid                (16.0)        (2.0)       (17.1)
Income from fixed 
asset investments             41.0         33.3         60.5
Other income                     -          4.7            -

                              25.0         54.7         63.4

Taxation
UK Corporation tax repaid        -            -          2.5

                                 -            -          2.5

Capital expenditure and financial
investment

Purchase of tangible 
fixed assets                  (1.9)        (1.5)        (2.5)
Purchase of fixed 
asset investments           (986.5)    (6,204.0)    (8,527.6)
Sales of fixed asset 
investments                  971.7      1,812.3      4,322.4

                             (16.7)    (4,393.2)    (4,207.7)

Cash outflow before management of
liquid resources and 
financing                   (111.6)    (4,338.0)    (4,291.3)

Financing

Issue of shares                  -      4,080.0      4,080.0
Expenses of share issue          -       (200.0)      (200.0)

                                 -      3,880.0      3,880.0

Decrease in cash 
in the period                (111.6)     (458.0)      (411.3)


MOUNTCASHEL PLC

Notes to the Accounts

1.   Basis of preparation

The unaudited financial statements for the six months
ended 30 June 1997 do not constitute statutory accounts.

The profit and loss account, balance sheet and cash
flow statement have been prepared on a basis consistent
with the statutory financial statements for the year ended
31 December 1996.

Results for the year ended 31 December, 1996 have
been extracted from the statutory accounts which were
reported on by the auditors, without qualification or
statement under Section 237 (2) or (3) of the Companies Act
1985 and have been delivered to the Registrar of Companies.

2.   Taxation

There is no corporation tax charge due to the
availability of losses within the Group.

3.   (Loss)/Earnings per share

The loss per share has been calculated on the
consolidated loss on ordinary activities after
taxation of #85,500, and on the weighted average number of
ordinary shares in issue of 7,570,700.

4.   Investments
                              Listed         Unlisted     Total
                              #'000          #'000        #'000
Cost
At 1 January 1997             6,167.4         1,589.0   7,756.4
Additions                     1,204.0           265.0   1,469.0
Disposals                    (1,263.2)              -  (1,263.2)
                              ______          _______   ______
At 30 June 1997               6,108.2         1,854.0   7,962.2
                              ______           ______   ______
Aggregate market value at     8,729.5         1,687.8  10,417.3
30 June 1997                   ______         _______    _____


Further details of the Key investments are shown on
page 7 of this interim report.

5.   Other information

The interim report was approved by the Directors on
31 July, 1997.

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.


MOUNTCASHEL PLC

Key Investments

                   No. of      Class  Percentage       Cost      Market
                   Shares         of   of issued         at       value
                     held   ordinary    ordinary    30.6.97          at
                              Shares       share       #000     30.6.97
                                         capital                   #000


Company name

British Biotech   470,000         5p        0.01        795       1,088
plc       

Cantab             80,000         5p        0.51        270         696
Pharmaceuticals
plc

ERA Group plc   4,945,000         5p        3.93        444         260

Fairway Group     781,800         5p        2.00        723         387
plc      

Innovative        500,000        10p        1.35        467       1,550
Technologies       
Group plc

OMI             3,025,000         5p        4.07        508         756
International     
plc

Rackwood 
Mineral         1,000,000        10p        2.36        507         475
Holdings plc     

Redstone Network  961,921     0.025p        8.59        589         589
Services Ltd.*         

Utility Cable   2,550,000         1p        1.77        448         261
plc        

Wiggins Group  15,365,000         1p        2.94        794       1,728
plc                

Xaar Limited*     208,333         #1        5.23      1,000       1,000


Xenova Group plc  242,500        10p        1.05        594         788

* Denotes unquoted investments


Notes:

1.   A 'Key investment' is defined as being any holding
which accounts for 5 per cent, or more, by reference to
cost or market value, of the total portfolio at the
end of the period.

2.   Unquoted investments are valued at cost, or net
realisable value if, in the opinion of the Directors,
this is below cost.

3.   All of the investments noted above are in
undertakings which are registered in England and Wales.


END