Haslemere Interim report 2003

Haslemere NV reports a net loss of GBP3.8 (EUR5.5) million over the first 6 months of the financial year ending 31 December 2003, compared with a net profit of GBP31.4 (EUR45.3) million over the corresponding period for 2002, as the company moves into the second phase of its business plan.

The Interim Report has not been audited.

Operating Performance
Haslemere reports a net loss of GBP3.8 (EUR5.5) million for the first six months of the year ending 31 December 2003. Revaluation of the portfolio as at 30 June 2003 and profits arising from property sales, together with other movements in reserves contributed to a negative total performance for the 6 months of GBP18.3 (EUR26.4) million.

Portfolio Activity
The deficit on revaluation of the property portfolio during the period amounted to approximately GBP12.9 (EUR18.6) million. This figure takes into account profits on sales amounting to GBP5.4 (EUR7.8) million and an external revaluation of the portfolio as at 30 June 2003. Gross proceeds from the sale of property in the half year were GBP275.1 (EUR396.9) million.

The revaluation for the corresponding period in 2002 produced a surplus of GBP18.6 (EUR26.8) million.

Shareholders’ Equity
Net result, revaluation results, currency results and other movements in shareholders’ equity during the first half year produced a negative total performance of GBP18.3 (EUR26.4) million compared with a positive total performance of GBP33.6 (EUR48.5) million for the first half of 2002. Shareholders’ equity has decreased from GBP254.2 (EUR366.7) million at 31 December 2002 to GBP235.9 (EUR340.3) million at 30 June 2003.

Haslemere Partners
The company reported, on 17 June 2003, the first of the joint venture investment partnerships under the title “Haslemere Partners”, being a GBP230 (EUR332) million joint venture owning five shopping centres in the UK. The company has a 20% interest in this venture and continues to manage the assets on behalf of the partnership.

Management Changes
The company has announced, in a separate press release today, the departure of Chris Bartram as chief executive of the group on 31 December 2003, to be succeeded by Richard Debney.

In addition to this, the Annual General Meeting on 3 April 2003 approved the proposed appointment to the Management Board of Richard Debney, Gary Felce (Investment and Financial Analysis), David Lee (Finance) and Maaike Groos (Legal Compliance).

The Management Board is also pleased to announce the promotion of Hannah Smith to Head of Retail and to the board of the groups’ principal retail asset vehicle.

As outlined in the full year results issued on 28 February 2003, we believe that the short term outlook for UK commercial property remains uncertain, especially in terms of rental growth. During the transition from phase one to phase two of the business plan we anticipate that the company will revert to net profitability.

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