Oakdene Homes PLC
09 May 2008



                               Oakdene Homes plc
                           ("Oakdene" or the "Group")

            Preliminary results for the year ended 31 December 2007

Oakdene, the South England specialist housebuilding and property development
Group is pleased to report financial results for the year ended 31 December
2007.

Financial Highlights

   •Pre tax profit £5.5million (2006: £8.2million)

   •Turnover £36million (2006: £46million)

   •Final dividend per share of 2.75p (2006: 2.75p)

   •Total dividends in respect of the financial period ended 31 December
    2007 of 4p (2006: 4p)

Placing

   •Placing of up to 20 million shares at 50 pence

Operational Highlights

   •Landbank increased to approx 1,800 plots

   •Newhaven - Phase 1 completed

   •Acquired Meridian TV Studios Southampton


Chairman, Philip Stephens, commented:

"Given the difficult financial situation that has affected the UK market during
the second half of the year, we are have produced a satisfactory set of results
and are pleased to recommend a maintained final dividend for the year ended 31st
December 2007 of 2.75p per share.

"Oakdene is continuing to build a quality and well-priced product in the
South-Eastern counties of England and we expect to continue to generate sales
for the rest of the year to produce a satisfactory outcome for 2008."


For further information

Oakdene Homes plc                                      Tel: +44 (0) 1737 249 393
Carl Turpin, Chief Executive
Robert Boot, Finance Director

Bell Pottinger Corporate & Financial                   Tel: +44 (0) 207 861 3232
Zoe Sanders / Rosanne Perry

Panmure Gordon                                         Tel: +44 (0) 20 7459 3600
Dominic Morley (Corporate Finance) 
Mark Lander (Corporate Broking)



CHAIRMAN'S STATEMENT

I am pleased to report that in the year ended 31st December 2007, the Group
achieved a pre-tax profit of £5.47m, a reduction from the 2006 profit of £8.18m.
Given the difficult financial situation that has affected the UK market during
the second half of the year and the success enjoyed by other aspects of the
business, the Board is satisfied with this result.

For a small but growing housebuilder, such as Oakdene, profit in a particular
year is only one measure of success with the growth in the underlying net asset
value of the Company being of at least equal to or even greater importance. On
this measure 2007 was a remarkably successful year with the net asset value per
share, based on the current open market value of our sites, increasing by around
one third to £1.80. This is a tremendous result and is a credit to the land
buying and planning capability of the Group. The net asset value per share
referred to is based on the current open market value of sites as opposed to the
historic cost net assets as stated in the consolidated balance sheet.

Completion of the first phase of our development at Newhaven has won praise from
the industry and the success of selling units has proven that our vision for
Newhaven was correct. The further development of West Quay with over 300
residential apartments and then Railway Quay with a further 200 apartments is
eagerly awaited by the residents and the local authorities. The market value of
the land that we own at Newhaven has increased significantly and will increase
further in 2008 when detailed planning permission is granted. The market value
of other sites that we own has also increased significantly particularly at Hove
and Southampton both of which were purchased during the year with the proceeds
of the placing in May 2007.

During the first half of 2007 the housing market was strong but we had very
little to sell. We had the last few units for sale on our successful
developments at Tongham, St Leonards, Ashford and Reigate which were virtually
all sold by the end of June. Sales progressed well at Newhaven and Penshurst and
continued to progress well on both sites during the second half of the year
albeit slower as a result of the onset of the world banking crisis. Delays in
the planning system and delays on the build programme meant that our sites at
Edenbridge, Isle of Wight, Reigate and Redhill did not have completed units for
sale until the first half of 2008. The shortfall in anticipated profit for 2007
was expected to be compensated for by the bulk sale to investors of 30 units at
Newhaven and the sale of a development site for which we held a conditional
contract to purchase. Unfortunately both of these sales fell through at the last
moment and caused us to miss our target profit for the year.

Over the last few months press headlines have given the somewhat misleading
impression that the UK housing market is in general decline and set to fall
further. Whilst this may be true in some parts of the UK, it is a somewhat
different case in the South East. Parallels are drawn with the housing markets
in the UK during the early 1990's and the current market in the US. However,
neither parallel is valid for Oakdene's South East market which has seen only a
small reduction in selling prices. The early 1990's suffered from high
unemployment and high interest rates neither of which are true today. Interest
rates are higher than they were but still low on a historic basis and
unemployment in the South East is extremely low. Housing in the South East
continues to fall short of requirement exacerbated by ever increasing delays in
the planning system.

The sub-prime lending in the US which led to the current banking crisis has not
been anywhere near the same problem in the UK. Lack of liquidity in the banking
system has led to a shortage of funds available for mortgages and in turn caused
lenders to insist on higher deposits. This has caused a slow down in the market
and given credibility to the newspaper headlines. However, this slowdown is
obviously cyclical and as soon as the banking system has returned to more normal
levels, it is hoped that the pent-up demand will quickly take up any slack in
the market. The over supply of expensive flats in some parts of the country is
not the same concern in our markets of Surrey, Sussex, Kent and Hampshire.

The slow down in sales has an obvious effect on cash flow particularly when we
are at the early stages of construction on more sites than ever before. However,
we have received tremendous support from our principal bankers, The Royal Bank
of Scotland. Our revolving facility has recently been increased by £10m to £55m
which is secured by the increasing market value of our development sites. RBS
retains a belief in Oakdene and the market in which we operate and we view them
as a partner rather than just our bankers. However, whilst the current market
conditions persist we are being cautious on the speed of construction on our
sites and are maintaining a very tight control on overheads. In addition we do
not want our gearing to increase too significantly and we want to be in a
position to take advantage of market opportunities as they arise. For these
reasons the Board has decided to place up to 20m shares with a number of
investors to raise additional equity capital of around £10m. The dilution effect
of these new shares is, in terms of underlying assets, more than compensated for
by the increase in market value of our sites and the further anticipated growth
in value in 2008.

Dividend

The Board is pleased to recommend a maintained final dividend for the year ended
31st December 2007 of 2.75p per share which, subject to shareholders approval at
the Annual General Meeting, will be paid on 12 June 2008 to the shareholders on
the register at the close of business on 16 May 2008. The new shares issued as a
result of the placing will not qualify for this dividend.

When added to the interim dividend of 1.25p per share, the total for the year is
4p per share covered nearly 3 times by the earnings per share of 11.5p.

Outlook

In these uncertain times it is difficult for anyone to forecast the future with
any accuracy. We believe that the number of house sales generally in the UK is
likely to stay at these low levels for the rest of the year but, following the
recent reduction in interest rates and the Bank of England's initiatives to
improve liquidity in the money markets, it is hoped that this will help mortgage
providers in offering credit to customers and hence improve the number of unit
sales.

Oakdene is continuing to build a quality and well-priced product in the South-
Eastern counties of England and we expect to continue to generate sales for the
rest of the year to produce a satisfactory outcome for 2008.

I thank you, our shareholders, for your continuing support but I would
particularly thank the executive directors and the staff for their hard work and
enthusiastic commitment during the past year.



Philip Stephens
Chairman


 
+-------------------------------------------------------------------------+
|CONSOLIDATED INCOME STATEMENT                                            |
+-------------------------------------------------------------------------+
|FOR THE YEAR ENDED 31 DECEMBER 2007                                      |
+-------------------------------------------------------+--------+--------+
|                                                       |    Year|    Year|
|                                                       |   ended|   ended|
|                                                       |    2007|    2006|
|                                                       |  £ '000|   £'000|
+-------------------------------------------------------+--------+--------+
|                                                       |        |        |
+-------------------------------------------------------+--------+--------+
|Revenue                                  |             |  36,208|  46,029|
+-----------------------------------------+-------------+--------+--------+
|Cost of sales                            |             |(26,316)|(33,912)|
+-----------------------------------------+-------------+        |        |
|Amortisation of fair value adjustment on |             |        |        |
|WIP                                      |             |    (36)|   (380)|
+-----------------------------------------+-------------+--------+--------+
|                                         |             |        |        |
+-----------------------------------------+-------------+--------+--------+
|Gross profit                             |             |   9,856|  11,737|
+-----------------------------------------+-------------+--------+--------+
|Administrative expenses                  |             | (3,771)| (3,020)|
+-----------------------------------------+-------------+--------+--------+
|                                         |             |        |        |
+-----------------------------------------+-------------+--------+--------+
|Profit from operations                   |             |   6,085|   8,717|
+-----------------------------------------+-------------+--------+--------+
|Finance costs                            |             |   (604)|   (540)|
+-----------------------------------------+-------------+--------+--------+
|                                         |             |        |        |
+-----------------------------------------+-------------+--------+--------+
|Profit before tax                        |             |   5,481|   8,177|
+-----------------------------------------+-------------+--------+--------+
|Tax                                      |             | (1,103)| (2,498)|
+-----------------------------------------+-------------+--------+--------+
|                                         |             |        |        |
+-----------------------------------------+-------------+--------+--------+
|Profit for the period from continuing    |             |   4,378|   5,679|
|operations after tax                     |             |        |        |
+-----------------------------------------+-------------+--------+--------+
|All attributable to equity holders of the|             |        |        |
|parent                                   |             |        |        |
+-----------------------------------------+-------------+--------+--------+


+-------------------------------------------------------+--------+-------+
|Earnings per share                                     |        |       |
+-------------------------------------------------------+--------+-------+
|From continuing operations                             |        |       |
+----------------------------------------+--------------+--------+-------+
|Basic                                   |              |   11.5p|  17.5p|
+----------------------------------------+--------------+--------+-------+
|                                        |              |        |       |
+----------------------------------------+--------------+--------+-------+
|Diluted                                 |              |   11.1p|  16.4p|
+----------------------------------------+--------------+--------+-------+



CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
+-----------------------------------------------------+-------------------+
|FOR THE YEAR ENDED 31 DECEMBER 2007                  |                   |
+-----------------------------------------------------+----------+--------+
|                                                     |      Year|    Year|
|                                                     |     ended|   ended|
|                                                     |      2007|    2006|
|                                                     |     £'000|   £'000|
+-----------------------------------------------------+----------+--------+
|                                                     |          |        |
+-----------------------------------------------------+----------+--------+
|Profit for the period                                |     4,378|   5,679|
+-----------------------------------------------------+----------+--------+
|                                                     |          |        |
+-----------------------------------------------------+----------+--------+
|Total recognised income and expense for the period   |     4,378|   5,679|
+-----------------------------------------------------+----------+--------+
|                                                     |          |        |
+-----------------------------------------------------+----------+--------+
|Attributable to:                                     |          |        |
+-----------------------------------------------------+----------+--------+
|Equity holders of the parent                         |     4,378|   5,679|
+-----------------------------------------------------+----------+--------+


+-------------------------------------------------------------------------------
|CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2007                                                                         
-------+-----------------------------------------------------------------------+
|                                      31 Dec 2007|        31 Dec 2006|        |
|                                            £'000|              £'000|        |
-------------------------------------------------------------------------------+
|Non-current assets             |       |         |         |         |        |
-------------------------------------------------------------------------------+
|Goodwill                       |       |   18,461|         |   18,602|        |
-------------------------------------------------------------------------------+
|Other intangible assets        |       |      111|         |      128|        | 
-------------------------------------------------------------------------------+
|Investments                    |       |        1|         |        1|        |
-------------------------------------------------------------------------------+
|Property, plant and equipment  |       |    1,292|   19,865|    1,381|  20,112| 
-------------------------------------------------------------------------------+
|Current assets                 |       |         |         |         |        | 
-------------------------------------------------------------------------------+
|Inventories                    |       |   85,545|         |   55,135|        | 
-------------------------------------------------------------------------------+
|Security deposit               |       |    5,250|         |    5,250|        | 
-------------------------------------------------------------------------------+
|Trade and other receivables    |       |   33,757|         |   26,346|        | 
-------------------------------------------------------------------------------+
|Cash and cash equivalents      |       |       77|  124,629|    1,946|  88,677|
-------------------------------------------------------------------------------+
-------------------------------------------------------------------------------+
|Total assets                   |       |         |  144,494|         | 108,789|
-------------------------------------------------------------------------------+
|Current liabilities            |       |         |         |         |        | 
-------------------------------------------------------------------------------+
|Trade and other payables       |       |    5,194|         |    4,836|        |
-------------------------------------------------------------------------------+
|Tax liabilities                |       |    3,596|         |    2,852|        | 
-------------------------------------------------------------------------------+
|Loan notes                     |       |    1,100|         |    1,500|        |
-------------------------------------------------------------------------------+
|Bank overdrafts and loans      |       |    7,574|   17,464|   20,170|  29,358|
-------------------------------------------------------------------------------+
-------------------------------------------------------------------------------+
|Non-current liabilities        |       |         |         |         |        | 
-------------------------------------------------------------------------------+
|Bank loans                     |       |   69,135|         |   39,281|        | 
-------------------------------------------------------------------------------+
|Derivative financial           |       |    3,306|   72,441|        -|  39,281|
|instruments                    |       |         |         |         |        |
-------------------------------------------------------------------------------+
-------------------------------------------------------------------------------+
|Net assets                     |       |         |   54,589|         |  40,150| 
+-------------------------------+-------+---------+---------+---------+--------+



+-------------------------------+-------+-------- +---------+-------- +--------+
|EQUITY                         |       |         |         |         |        |
+-------------------------------+-------+---------+---------+---------+--------+
|Share capital                  |       |         |      412|         |     328|
+-------------------------------+-------+---------+---------+---------+--------+
|Share premium account          |       |         |   39,810|         |  25,125|
+-------------------------------+-------+---------+---------+---------+--------+
|Hedging reserve                |       |         |  (3,306)|         |       -|
+-------------------------------+-------+---------+---------+---------+--------+
|Retained earnings              |       |         |   17,673|         |  14,697|
+-------------------------------+-------+---------+---------+---------+--------+
|                               |       |         |         |         |        |
+-------------------------------+-------+---------+---------+---------+--------+
|Total equity attributable to   |       |         |         |         |        |
|equity holders of the parent   |       |         |   54,589|         |  40,150|         
+-------------------------------+-------+---------+---------+---------+--------+


+--------------------------------------------------------+--------+--------+
|CONSOLIDATED CASH FLOW STATEMENT                        |        |        |
|                                                        +--------+--------+
|FOR THE YEAR ENDED 31 DECEMBER 2007                     |        |        |
|                                                        +--------+--------+
|                                                        |    Year|    Year|
|                                                        |   ended|   ended|
|                                                        |    2007|    2006|
|                                                        |        |        |
|                                                        |   £'000|   £'000|      
+-----------------------------------------+--------------+--------+--------+
|Net cash from operating activities       |              |(33,380)|(10,597)|
+-----------------------------------------+--------------+--------+--------+
|                                         |              |        |        |
+-----------------------------------------+--------------+--------+--------+
|Investing activities                     |              |        |        |
+-----------------------------------------+--------------+--------+--------+
|Cost of investments                      |              |       -|     (1)|
+-----------------------------------------+--------------+--------+--------+
|Purchase of property, plant and equipment|              |   (116)|   (108)|
+-----------------------------------------+--------------+--------+--------+
|Acquisition of subsidiary                |              |       -| (2,146)|
+-----------------------------------------+--------------+--------+--------+
|Net cash used in investing activities    |              |   (116)| (2,255)|
+-----------------------------------------+--------------+--------+--------+
|                                         |              |        |        |
+-----------------------------------------+--------------+--------+--------+
|Financing activities                     |              |        |        |
+-----------------------------------------+--------------+--------+--------+
|Increase in borrowings                   |              |  16,858|  14,836|
+-----------------------------------------+--------------+--------+--------+
|Shares issued for cash                   |              |  14,769|      96|
+-----------------------------------------+--------------+--------+--------+
|Repayment of loans                       |              |       -|   (227)|
+-----------------------------------------+--------------+--------+--------+
|Net cash (used in)/from financing        |              |        |        |
|activities                               |              |  31,627|  14,705|
+-----------------------------------------+--------------+--------+--------+
|Net increase/(decrease) in cash and cash |              |        |        |
|equivalents                              |              | (1,869)|   1,853|
+-----------------------------------------+--------------+--------+--------+
|Cash and cash equivalents at beginning of|              |        |        |
|year                                     |              |   1,946|      93|
+-----------------------------------------+--------------+--------+--------+
|Cash and cash equivalents at end of year |              |      77|   1,946|
+-----------------------------------------+--------------+--------+--------+


Notes to the consolidated financial statements for the year ended 31 December 
2007

1. The preliminary results do not constitute full statutory accounts within the 
   meaning of Section 240 of the Companies Act 1985.

2. The preliminary results have been prepared in accordance with applicable 
   International Financial Reporting Standards.

3. Notes to the cash flow statement

                                                                            2007     2006
                                                                           £'000    £'000

Profit from operations                                                     6,085    8,717

Adjustments for:
Depreciation of property, plant and equipment                                205      207
Amortisation of intangible assets                                            158       18
Net share options issued                                                      16      (7)

Operating cash flows before movements in working capital                   6,464    8,935

Decrease /(increase) in inventories                                     (30,410)      284
Decrease/(increase) in receivables                                       (7,412) (17,928)
Increase/(decrease) in payables                                              153      856

Cash generated by operations                                            (31,205)  (7,853)

Income taxes paid                                                          (153)  (1,151)
Interest paid                                                              (604)    (541)
Dividends paid                                                           (1,418)  (1,052)

NET CASH FROM OPERATING ACTIVITIES                                      (33,380) (10,597)

Cash and cash equivalents (which are presented as a single class of assets on
the face of the balance sheet) comprise cash at bank and other short-term highly
liquid investments with a maturity of three months or less.4. Security deposit.
The Group has been appointed main contractor on a project for the construction
of 48 luxury apartments and has placed £5.25 million on deposit as a security
deposit. This deposit will be refunded to the group as construction and sale of
the apartments proceeds.

5. A copy of the Annual Report and Accounts for the period ended 31 December 
2007 will be sent to shareholders and copies will be available from the 
Company's Registered Office at Oakdene House, 34 Bell Street, Reigate, Surrey, 
RH2 7SL.

6. The Annual General Meeting of the Company will be held at RAC Club, Pall Mall
on 4 June 2008.




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