Final Results

C H BAILEY PLC

Chairman's statement and financial results

Year ended 31 March 2010

Overview

The results for the period under review show that the Group has made a profit after tax and minority interests of £1,104,481 (2009: £276,582). Similarly to last year's profit, this has come about from the sale of property assets in Malta. There has also been an increase in the gross profit margin on trading activities from approximately 13% last year to 20% this year. Overall EBITDA (excluding property profits), whilst not yet positive, has been reduced from last year's loss by £238,691.

We anticipated that 2009/10 would be a challenging year for the Group but were confident that we would be in a position to be able to ride out the global economic downturn. I am pleased to report that the initiatives which management put in place last year have borne fruit in reducing overheads and increasing margins. We continue to look at other ways of returning the Group to a trading profit position.

UK Operations

The UK operations were scaled back last year with the Group reducing its exposure in the Engineering sector by closing both Midway Precision and Modular Automation International. Whilst Bailey Industrial Engineering has been significantly affected by the downturn in the UK economy, and the loss of a major customer, management and employees worked together very effectively and were able to retain market share. They are to be congratulated for their efforts in particularly difficult conditions, and customer demand is now beginning to show signs of recovery.

Malta

As announced in October 2009, the Group sold part of the hotel complex and entered into a conditional sale agreement for the remainder of the site in St George's Bay. The sale of part of the hotel complex has now been completed and is reflected in these accounts. The conditional sale for the remainder of the site, which is expected to be completed in March 2013, remains contingent on receipt of planning permission by the purchaser. Meanwhile, the hotel continues to trade profitably and contributes to central overheads.

As reported in my interim statement, the Group settled a longstanding dispute with the Maltese authorities during the year and received compensation of £253,193.

Tanzania

The recent re-opening of the Oyster Bay hotel has been very well received by the market and revenues for the operation overall have doubled. We are currently in discussions with the banks for additional borrowing facilities to enable us to further develop the hotel, and we have already started to clear the site for the developers.

Beho Beho, like most other safari camps, has been affected by the world downturn. However, I am pleased to report that bookings for the coming year are above the previous year's figures and we expect that the level of bookings will continue to improve.

Sales at Mikumi Wildlife Camp were also affected but less so than Beho Beho as the majority of its revenue comes from the local market. We are currently looking at a possible redevelopment of the site to improve the standard of guest services and generally upgrade the camp's facilities.

Investments

The fluctuations in the world financial markets continue and we expect that to continue, which makes it hard to predict when we shall see real recovery happen.

Current Trading and Outlook

The sale of property in Malta has enabled us to strengthen our reserves. With the modest growth being seen in Tanzania and Malta and signs of recovery in the UK engineering business, together with the reduction in overheads, I feel that we are beginning to see benefits from those initiatives that have been introduced across the Group.

I would like to take this opportunity to thank all our employees for their cooperation and their willingness to accept the changes which have been needed over the last year.

Charles H.Bailey

Chairman

20th July 2010

Consolidated income statement

Year ended 31 March 2010

* Earnings before interest, taxation, depreciation, loss on sale of plant and equipment and profit on sale of property.

Consolidated statement of comprehensive income

Year ended 31 March 2010

Consolidated balance sheet at 31 March 2010

Consolidated cash flow statement

Year ended 31 March 2010

Reconciliation of net cash flow to movement in net debt in the year

Consolidated statement of changes in equity

Year ended 31 March 2010

Notes

1. The financial information contained in this preliminary announcement does not constitute statutory accounts of C H Bailey Plc as defined in Section 434 of the Companies Act 2006, and is unaudited. The financial information for the year ended 31 March 2009 is extracted from the statutory accounts of the Group for that financial year and does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The report of the auditors was (i) unqualified; (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 237 (2) or (3) of the Companies Act 1985.

 2. Copies of the 2010 annual report and accounts will be sent to shareholders shortly, and these can be obtained from the Company's registered office or website: www.chbaileyplc.co.uk.

Enquiries:

C H Bailey Plc Charles Bailey

Bryan Warren (Tel: 01633 262961)

Arden Partners plc Richard Day (Tel: 020 7614 5932)

Colin Smith (Tel: 0121 423 8940)