Pochin's PLC

(the "Group")

Half year report for the six months to 30 November 2010

Headlines

·      Revenue £41.8m (2009: £47.5m)

·      Loss before tax £0.47m (2009: £4.37m loss)

·      Net asset value decreased by £0.3m in the period to £25.6m  

Chairman's Statement

The results for the six months ended 30 November 2010 show a loss before tax of £0.47m (2009: £4.37m loss) on turnover of £41.8m (2009: £47.5m).

No interim dividend is declared (2009: Nil)

After the substantial provisions which resulted in the heavy losses for the year ended 31^st May 2010, it is encouraging to be able to report an improved performance in the first six months of the current year.  Nonetheless, conditions in the regional property market and construction sector generally remain subdued.

The construction division has again performed creditably, turning in a near break even result on reduced levels of turnover.  The forward order book, remains healthy, although the start dates for a number of key contracts have been delayed, making a profitable outcome for the division in the second half of the year increasingly challenging.

The concrete pumping division, though still loss making, has shown signs of improvement, with better margins and tighter cost control. The results for the full year should show the benefit of the re-organisation which took place last summer but will inevitably be influenced by the level of public sector spending.

The Group's property investment and development activities are centred largely in North West England which, like most regions, is experiencing only a slow improvement in the market for commercial property.  The income from the division's portfolio is proving resilient with low levels of void space, but opportunities for development remain limited by weak occupier demand and tight credit conditions. Steady progress is being made with disposals of stock in the former homes division.

I am pleased to be able to confirm that the sale of the development site at Birkenhead, previously held in joint venture and highlighted in the 2010 annual report and accounts, was successfully completed in October.  Issues in current joint ventures, also emphasised in that report, largely remain to be resolved and discussions continue with funders to bring to an end the Group's financial exposure associated with these schemes.

With the continuing support of the Group's bankers, The Royal Bank of Scotland, and no renewed decline in confidence in the regional construction and commercial property markets, the Group should make further progress in the second half of the year.

Richard Fildes

Chairman

Enquiries:

Pochin's PLC

John Moss, Chief Executive                    01606 833 333

John Edwards, Finance Director

Charles Stanley Securities                      020 7149 6000

Russell Cook

Carl Holmes                                                                 

Blythe Weigh Communications               020 7138 3204

Paul Weigh                                           07989 129 658

Matthew Neal                                        07917 800 011                         

Consolidated income statement

Consolidated statement of comprehensive income

Consolidated Balance Sheet

Consolidated Cash Flow Statement

Notes

1.         The interim report was approved by the board on 28 January 2011.

2.         Basis of preparation

The interim financial information has been prepared applying the accounting policies and presentation that were applied in the preparation of the group's published consolidated financial statements for the year ended 31 May 2010.

3.         Segmental information

For management purposes, the group is currently organised into four operating business segments:

Construction, Property, Residential and Concrete Pumping. 

As operations are carried out entirely within the UK, there is no secondary segmental information.

Inter segmental pricing is done on an arms length open market basis.

6 months ended 30 November 2010

6 months ended 30 November 2009

Segmental information

12 months ended 31 May 2010