Interim Results

29 November 2012-----------------------------------------------------------------------------------

DAEJAN HOLDINGS PLC

INTERIM RESULTS ANNOUNCEMENT for the half year ended 30 September 2012

The Board is pleased to present the Interim Statement for the half year ended 30 September 2012.

·; The profit before tax for the period was £23.3 million (2011: £0.1 million loss) after accounting for net valuation gains on investment properties of £11.4 million (2011: £0.8 million loss) and valuation losses on financial instruments of £3.0 million (2011: £9.7 million). There was an increase of 3.5% in gross rental income and a reduction of 4% in property operating expenses compared to the equivalent period last year. The underlying net profit before tax, i.e. excluding net valuation movements, was £14.9 million (2011: £10.4 million)

·; The property portfolio has been valued by the Directors based on the recommendations of the Group's external advisors. The overall net valuation gain of £11.4 million (2011: £0.8 million loss) reflects net gains in both the UK and USA portfolios. London residential property continues to perform well, while offices and shops outside London have seen reductions in value.

·; The redevelopment of Africa House, WC2 continued throughout the period and is likely to be available for occupation in mid 2013.

·; The principal risk factors affecting the remainder of the financial year continue to be exposure to movements in the valuation of the Group's investment properties and financial instruments and to any increase in voids or bad debts which may arise from the continuation of the current difficult economic conditions.

·; The business outlook continues to be challenging, with reduced economic activity in the UK and the possible negative impacts of the as yet unresolved Eurozone issues as well as the risk of a US budgetary crisis. These factors create uncertainty so that it is by no means clear when we will see a return to more positive sustained growth in the markets in which we operate. We believe that our long term, prudent approach of maintaining a strong balance sheet with relatively low gearing is particularly appropriate in present times. Notwithstanding the general economic climate, we remain confident that the Group will continue to progress.

·; An interim dividend of 25p per share will be paid on 8 March 2013 to shareholders on the register on 8 February 2013.

B S E Freshwater

Chairman

29 November 2012

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Notes to the Consolidated Interim Financial Statements for the six months ended 30 September 2012

Basis of preparation 

This interim financial information has been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting, applying the accounting policies and presentation that were applied in the preparation of the Company's published consolidated financial statements for the year ended 31 March 2012. As required by the Listing Rules of the Financial Services Authority, the Directors have considered the result of the endorsement by the EU of new or changed International Financial Reporting Standards that are applicable or available for early adoption in the preparation of the Company's next consolidated financial statements for the year ending 31 March 2013 and concluded that they have no material effect on either the current or prior periods.

Status of the interim financial information

The interim financial information in this statement has not been audited or reviewed by auditors pursuant to the Auditing Practices Board guidance on review of interim financial information and does not constitute statutory accounts, as defined in section 435 of the Companies Act 2006. The auditors' report on the statutory accounts for the year ended 31 March 2012 was unqualified and did not contain a statement under section 498 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2012 have been delivered to the Registrar of Companies. The interim financial statements were approved by the Board of Directors on 28 November 2012. The preparation of the interim financial information requires management to make assumptions and estimates about future events which are uncertain, the actual outcome of which may result in a materially different outcome from that anticipated.

Segmental Analysis

Dividends 

No dividends were paid in the six months ended 30 September 2012 (six months ended 30 September 2011: £Nil).

Investment properties

The Directors have estimated the value of the investment properties at 30 September 2012 after consultation with the Group's advisers. A full valuation of the Group's properties will be carried out by independent professional valuers at 31 March 2013.

Related party transactions

Day-to-day management of the Group's properties in the UK is mainly carried out by Highdorn Co. Limited and by Freshwater Property Management Limited. Mr BSE Freshwater and Mr SI Freshwater are directors of both companies. They have no beneficial interest in the share capital of Highdorn Co. Limited. Mr BSE Freshwater, Mr SI Freshwater and Mr D Davis are directors of the parent company of Freshwater Property Management Limited but have no beneficial interest in either company. Mr RE Freshwater has a beneficial interest in a trust holding interests in shares in Highdorn Co. Limited.

In their capacity as managing agents, Highdorn Co. Limited and Freshwater Property Management Limited collect rents and incur direct property expenses on behalf of the Group. At 30 September 2012, the aggregate net amounts due to the Group from Highdorn Co. Limited and Freshwater Property Management Limited in relation to such agency receipts and payments was £3 million (2011: Due from the Group £2.0 million). These amounts are not secured and are payable on demand. No guarantees have been given or received and the amounts are settled in cash.

The amounts paid by the Group during the period for the provision of property and other management services by Highdorn Co. Limited and Freshwater Property Management Limited, not included above, were £1.7 million (six months ended 30 September 2011: £1.9 million).

The board considers that the Directors are the key management personnel of the Group and their remuneration is disclosed in the Daejan Holdings PLC Annual Report for 31 March 2012.

Statement of Directors' responsibilities

The Directors confirm that this condensed set of financial statements has been prepared in accordance with IAS 34 as adopted by the European Union, and that the interim management report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8.

The Directors of Daejan Holdings PLC are listed in the Daejan Holdings PLC Annual Report for 31 March 2012. A list of current Directors is maintained on the Daejan Holdings PLC website www.daejanholdings.com.

B S E Freshwater

Chairman

29 November 2012