RNS Number:5284U
BFS Managed Properties Ltd
22 January 2004


BFS MANAGED PROPERTIES LIMITED ("the Company")
BFS MANAGED PROPERTIES SECURITIES LIMITED ("the Subsidiary")
(together "the Group")

PRELIMINARY ANNOUNCEMENT OF RESULTS

The Directors announce the consolidated results for BFS Managed Properties
Limited and the results for BFS Managed Properties Securities Limited for the
year ended 30 September 2003 as follows:

CHAIRMAN'S STATEMENT
For the year ended 30 September 2003

Net investment income for the year, available for distribution by way of
dividend, was #3,286,000 and dividends paid were 4.0p per share (including the
fourth interim dividend for the period paid on 5 December 2003).

At the year end 94.32% of the Group's total assets less current liabilities were
invested in commercial property, 2.93% in listed investments and 2.75% in cash
and other net assets. The net asset value ("NAV") per Ordinary share was 20.68
pence, increased from 17.51 pence for the period to 30 September 2002
(calculated per the Articles of Association). The NAV on the Zero Dividend
Preference Shares increased from 110.97 pence per share as at 30 September 2002
to 120.95 pence per share as at 30 September 2003 (calculated per the Articles
of Association).

The primary reasons for the increase in NAV compared to the previous period are
the substantial increase in value confirmed for the Property Portfolio and the
effect of the ZDP buyback.

The Group's Property Portfolio with its associated rent roll of #7.045 million
performed well and at the end of the period had a carrying value, in accordance
with International Financial Reporting Standards (IAS 40 Investment Property),
of #98.56 million at 30 September 2003. On an underlying basis, the property has
increased in value by some #5.8 million over the period, after allowing for
property sales.

In order to improve the Property Portfolio the selected disposal took place of
four properties, as previously referred to in the interim results, which were
not an ideal fit with the rest of the portfolio, either due to their small lot
size or reducing lease terms. The sales of properties at Derby Road Widnes,
Oldham Road Manchester, Kilmarnock Road Shawlands (Glasgow) and Friargate
Preston realised net proceeds of #7.598 million earmarked for reinvestment. At
the year end the Portfolio comprised 25 buildings in 18 locations and was
independently valued at market value of #99.51 million.

The characteristics of the property portfolio are that it has a weighted average
lease length of in excess of 16.38 years at 30th September 2003, a rental yield
of 7.50% and a strong concentration in high quality tenants. This high credit
quality and low level of voids is a feature of the property portfolio.

Rental growth has been evident in the retail sector and it is worth noting
completion of the 5 yearly rent review on the Carpetright Unit at Dunstable,
which provided an increase of some 16% in the rent. Some additional rental
uplift is anticipated for the Portfolio during the forthcoming year.

In terms of performance, the total return of the property portfolio is
calculated to be approximately 15.2% (before the allocation of operating
expenses and loan finance), which is favorable when compared with the total
return of 10.3% reported by the IPD UK Monthly Index (based upon some 10% of the
total UK market) for the same 12 months period. The average rate of return
published by the Investment Property Databank ("IPD") and the stated performance
of the property portfolio are not strictly comparable due to the difference in
size of the property samples, but the trend is indicative of the above average
performance of the Property Portfolio over the last year.

Some upward movement in interest rates that took place towards the end of the
period caused a narrowing of the gap between borrowing rates and investment
yields and this is anticipated to have some impact upon total returns for the
next year. However, the strategy employed by the Managers is expected to
continue to show positive investment returns over the forthcoming 12 months
period.

The Group's investments in investment trust income shares were valued at #3.062
million and represented approximately 3% of the total fund. Liquidity in the
split sector improved significantly during the period providing an opportunity
to reduce exposure to income shares. Sales from the portfolio raised #14.277
million.

The Company announced on 29 May 2003, that the Board had reviewed the Group's
capital structure and had concluded that the most effective use of its cash and
near cash holdings was to buy-back Zero Dividend Preference ("ZDP") shares.

In order to achieve this, the Board of the Subsidiary sought and received
authority from the ZDP shareholders to re-purchase all of the ZDP shares and to
eliminate the Subsidiary's Share Premium account in order to create a new
Special Reserve out of which repurchases of ZDP shares could be made.

During the year, a total of 9,982,000 ZDP Shares were repurchased by the Company
at a cost of #9,444,000. The shares were subsequently transferred to the
Subsidiary and cancelled leaving a balance in issue of 16,018,000. This is
considered to have been beneficial to both Ordinary and ZDP shareholders. The
total cost of repurchases was #2,400,000 less than the accrued entitlement of
the shares on the date of cancellation, resulting in a gain on repurchases which
is reflected in the Consolidated Statement of Operations. A total of #11,844,000
of the subordinated loan between the Company and the Subsidiary was also
cancelled.

The Board has paid dividends totalling 4.0p per Ordinary share based upon
distributable income of #3,286,000. The total distributable revenue for the
period was reduced by the partial financing of the buy-back of ZDP Shares but
the recovery of the Investment Portfolio as well as a strong performance by the
Company's portfolio of commercial property has secured an attractive increase in
NAV.

Total dividends in respect of the year to 30 September 2003 totalled 4.0p.
During the period the company used approximately #10 million to re-purchase ZDP
shares, as previously announced by the Company. In addition the Board is giving
consideration to the level of interest rate protection in place. Taking out
hedging would currently result in a rise in the level of interest rate paid but
remove the risk of interest rate rises beyond the hedged out rate. In the light
of both of these statements the dividend for the current year in the absence of
unforeseen circumstances is likely to be lower than that paid in respect of last
year. A further announcement in respect of the dividends will be made in due
course.

The Company's Articles of Association previously provided that the Group's
borrowings must not exceed 65% of the Group's total assets. In order to provide
the Subsidiary with flexibility to re-purchase ZDP shares, the Board sought and
obtained from the Company's Ordinary Shareholders and ZDP Shareholders approval
to amend the restriction on borrowings in the Company's Articles of Association
from 65% to 85% of total assets.

The Board have renegotiated the loans with both the Bank of Scotland and Lloyds
TSB resulting in an increase to the margin from 1.1% to 1.2% and a change to the
banking covenants. The covenant requiring the ratio of the aggregate value of
all permitted investments held by the Group to the aggregate amount outstanding
under the term loans to be no less than 1.7:1 has now been deleted; the ratio of
the aggregate value of properties, UK Government Securities and cash previously
to be no less than 1.2:1 has now been changed to 1.333:1. An interest rate swap
with the Bank of Scotland plc on loans to the value of #8,000,000 has fixed
interest on this portion of the loan at 6.595%. Interest has been calculated on
the remaining loan facilities at: #8,000,000 at a fixed rate of 6.586% and
#51,500,000 at LIBOR plus a margin and associated costs amounting to 1.21%.

The accounts have been prepared using International Financial Reporting
Standards ("IFRS"). An amendment to IAS 40 Investment Property has recently been
introduced in consultation form. IAS 40 in its current form prevents revaluation
increases from applying to any leasehold property irrespective of the length of
the underlying lease and makes amortisation of leasehold property mandatory.
This differs significantly from accounting practice using UK Generally Accepted
Accounting Principles, which allows both long leaseholds and freeholds to
qualify as investment Properties. Your Board will keep the implications of IAS40
under review.

Given the resources available to the Group and the requirements of both classes
of shareholder, the Board has decided to focus on the Property Portfolio which
is very well let, and which produces secure long-term income and the prospects
of both rental and capital value growth.

Christopher Lovell
Chairman
21 January 2004






BFS MANAGED PROPERTIES LIMITED
CONSOLIDATED STATEMENT OF OPERATIONS
for the year ended 30 September 2003
                                                        2003      2002*
                                                        #000      #000
INCOME
Dividends                                                808     6,132
Loan stock interest                                        -       211
Rental income                                          7,527     6,394
Bank interest                                            178       652
Other income                                              23         -
                                                        ------   -------
TOTAL INCOME                                           8,536    13,389
                                                        ------   -------

EXPENSES
Management fee                                         1,280     1,808
Administration fee                                       170       194
Custodian fee                                              6        19
Audit fee                                                 18        30
Directors' remuneration                                  141       114
Leasehold property amortisation                          106       116
Interest payable and non-utilisation fees              3,705     3,433
Shareholder communication and support                     47         8
Legal & Professional fees                                160        31
Bad debts                                                 32       136
Other expenses                                           233       216
Finance costs and amortisation of issue costs          2,757     2,965
on Zero Dividend Preference shares
Failed takeover costs                                    515         -
                                                        ------   -------
TOTAL EXPENSES                                         9,170     9,070
                                                        ------   -------

NET (LOSS)/PROFIT BEFORE INVESTMENT RESULT              (634)    4,319
                                                        ------   -------

Realised loss on sale of investments                 (45,722)   (1,467)
Movement in unrealised loss on revaluation of         51,588   (67,080)
investments
Gain on repurchases of Zero Dividend Preference        2,400         -
shares
                                                        ------   -------
NET INVESTMENT RESULT                                  8,266   (68,547)
                                                        ------   -------

TAXATION                                                 (89)        -
                                                        ------   -------

NET PROFIT/ (LOSS) FOR THE YEAR/PERIOD                 7,543   (64,228)
                                                        ======   =======

BASIC AND DILUTED PROFIT/(LOSS) PER ORDINARY SHARE      8.57p   (72.99)p
                                                        ======   =======

This financial information has been prepared using the accounting standards and
policies set out in the Statutory Accounts. All items in the above statement
derive from continuing operations.

*The Company was incorporated on 3 July 2001 and commenced operations on 16 July
2001. The comparative period is therefore from 3 July 2001 to 30 September 2002.






BFS MANAGED PROPERTIES LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30 September 2003
                                                       2003       2002
                                                       #000       #000

Net assets at start of year                          13,920          -
                                                      -------    -------

NET PROFIT/(LOSS) FOR THE YEAR/PERIOD                 7,543    (64,228)
                                                      -------    -------

Issue of Ordinary share capital, net of issue costs       -     84,722
Dividends paid                                       (3,520)    (6,160)
                                                      -------    -------
                                                     (3,520)    78,562
                                                      -------    -------

UNREALISED GAIN/(LOSS) ON REVALUATION OF
CASH FLOW HEDGE IN YEAR/PERIOD                            5       (414)
                                                      -------    -------

NET ASSETS AT 30 SEPTEMBER 2003                      17,948     13,920
                                                      =======    =======






BFS MANAGED PROPERTIES LIMITED
CONSOLIDATED BALANCE SHEET
as at 30 SEPTEMBER 2003
                                                    2003          2002
                                                   #'000         #'000

NON-CURRENT ASSETS
Available for sale investments                     3,062         7,035
Property - freehold                               82,180        77,310
Property - long leasehold                         16,380        23,114
                                                  --------      --------
                                                 101,622       107,459
                                                  --------      --------

CURRENT ASSETS
Debtors                                              288           672
Cash and cash equivalents                          5,268         5,460
                                                  --------      --------
                                                   5,556         6,132
                                                  --------      --------
                                                  --------      --------
TOTAL ASSETS                                     107,178       113,591
                                                  --------      --------

CURRENT LIABILITIES
Creditors                                          2,685         3,980
                                                  --------      --------

TOTAL ASSETS LESS CURRENT LIABILITIES            104,493       109,611
                                                  --------      --------

NON-CURRENT LIABILITIES
Bank loans                                        67,149        67,292
Zero Dividend Preference shares                   18,898        27,985
Interest rate swap liability                         409           414
Deferred taxation                                     89             -
                                                  --------      --------
                                                  86,545        95,691
                                                  --------      --------
                                                  --------      --------
TOTAL LIABILITIES                                 89,230        99,671
                                                  --------      --------

NET ASSETS                                        17,948        13,920
                                                  ========      ========

Represented by:
Share capital                                     22,000        22,000
Share premium account                             62,722        62,722
Reserves                                         (66,774)      (70,802)
                                                  --------      --------

ISSUED CAPITAL AND RESERVES                       17,948        13,920
                                                  ========      ========

NET ASSET VALUE PER ORDINARY SHARE                 20.40p        15.82p






BFS MANAGED PROPERTIES LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 September 2003
                                                 2003             2002
                                                #'000            #'000

OPERATING ACTIVITIES
Dividends received                                930            5,986
Loan stock interest received                        -              105
Rental income                                   7,133            8,202
Bank interest received                            178              652
Insurance premium and commissions received        109                -
Bank loan interest and non-utilisation fees    (4,507)          (1,916)
paid
Investment Managers fees paid                  (1,287)          (1,697)
Operating expense payments                     (1,346)            (412)
                                                -------         --------
NET CASH INFLOW FROM OPERATING ACTIVITIES       1,210           10,920
                                                -------         --------

INVESTING ACTIVITIES
Purchases of listed investments                (9,952)         (79,870)
Purchases of property                            (148)        (101,801)
Sales of listed investments                    14,277            5,371
Sales of property                               7,598                -
                                                -------         --------
NET CASH INFLOW/(OUTFLOW) FROM INVESTING       11,775         (176,300)
ACTIVITIES                                      -------         --------

FINANCING ACTIVITIES
Proceeds of issue of Ordinary shares                -           88,000
Issue costs paid on issue of Ordinary shares        -           (3,278)
Proceeds of issue of Zero Dividend                  -           26,000
Preference shares
Issue costs paid on issue of Zero Dividend
Preference                                          -             (980)
shares
Costs of repurchase of Zero Dividend
Preference                                     (9,444)               -
shares
Draw down of bank loan                              -           67,500
Bank loan renegotiation /issue costs paid        (213)            (242)
Dividends paid                                 (3,520)          (6,160)
                                                -------         --------
NET CASH (OUTFLOW)/INFLOW FROM FINANCING      (13,177)         170,840
ACTIVITIES                                      -------         --------

(DECREASE)/ INCREASE IN CASH TO 30 SEPTEMBER     (192)           5,460
2003                                            =======         ========

Cash and cash equivalents at start of period    5,460                -
Cash and cash equivalents at end of period      5,268            5,460






BFS MANAGED PROPERTIES LIMITED
NOTES TO THE CONSOLIDATED RESULTS

 1. *Investment income distribution
    The gross revenue of the Group is applied first to meet the investment
    management and administration fees, finance costs and all other expenses
    save that the Group effectively treats the interest on #16 million of the
    Bank facility and the finance costs on the ZDP shares as a charge to
    capital. The effect of this accounting treatment is equivalent to charging
    all such costs and expenses (other than "capitalised" finance costs) against
    revenue. Net investment gains, realised or unrealised, will not be
    distributed by way of dividend.

                                                      2003        2002
                                                     #'000       #'000

    Net (loss)/profit before investment result        (634)      4,319
    Add back:
    bank loan interest payable and
    non-utilisation fees on
    #16 million bank loan treated as capital         1,057       1,039
    finance costs on Zero Dividend Preference        2,757       2,965
    shares
    leasehold property amortisation                    106         116
                                                  ----------  ----------
                                                     3,286       8,439
                                                  ==========  ==========

                                                     pence       pence

    Distributable return per Ordinary share           3.73        9.59
                                                  ==========  ==========

    Based on 88,000,000 Ordinary shares (2002: 88,000,000) being
    the weighted average
    number of shares in issue during the year.

 2. *Dividends on Ordinary shares
                            2003 Rate    2002 Rate      2003      2002
                                pence        pence     #'000     #'000

    Fifth interim for
      period ended 30                                        
      September 2002 paid 29
      November 2002               1.0            -       880         -
    First interim paid 28                   
      February 2003               1.0          1.5       880     1,320
    Second interim paid 27                             
      May 2003                    1.0          2.0       880     1,760
    Third interim paid 22                   
      August 2003                 1.0          2.0       880     1,760
    Fourth interim paid 5
      December 2003 for               
      the period ended 30
      September 2003                -          1.5         -     1,320
                               --------     --------  --------  --------
                                  4.0          7.0     3,520     6,160
                               ========     ========  ========  ========

    A fourth interim dividend of #880,000, equivalent to 1.0p per share, was
    declared on 14 November 2003. The dividend was paid on 5 December 2003 to
    shareholders on the register at close of business on 28 November 2003, with
    an ex-dividend date of 26 November 2003.

 3. *The basic and diluted loss per Ordinary share is based on the net profit 
    for the period of #7,543,000 (2002: loss of #64,228,000) and on 88,000,000
    Ordinary shares (2002: 88,000,000), being the weighted average number of
    Ordinary shares in issue throughout the year.

 4. *Note to the Consolidated Statement of Cash Flows

    Reconciliation of net (loss)/profit before investment result to net cash
    inflow from operating activities:
                                                        2003      2002
                                                       #'000     #'000

    Net (loss)/profit before investment result          (634)    4,319
    Adjustment for non-cash items:
    Finance costs on Zero Dividend Preference shares   2,367     2,851
    Amortisation of Zero Dividend Preference share              
    issue costs                                          390       114
    Amortisation of long leasehold properties            106       116
    Amortisation of loan issue costs                      70        34
    (Decrease)/increase in deferred income              (308)    1,839
    Decrease/(increase) in other debtors                 182      (470)
    (Decrease)/increase in other creditors and              
    accruals                                            (963)    2,117
                                                      --------  --------
    Net cash inflow from operating activities          1,210    10,920
                                                      ========  ========

 5. *Reconciliation of the published net asset value to net asset value per
    accounts

                                  30 September 2003          30 September 2002                             
ORDINARY SHARES                    #'000  Per share          #'000    Per share
                                          (pence)                     (pence)

Published net asset value         18,522      21.05         12,400        14.09
Gain on revaluation of freehold
properties*                            -          -          1,125         1.28
Gain on revaluation of leasehold
properties*                            -          -            484         0.55
Distributable profit               3,286       3.73          8,439         9.59
Dividends paid and proposed       (3,520)     (4.00)        (7,040)       (8.00)
Deferred taxation                    (89)     (0.10)             -            -
                                  -------    -------       --------     --------
NET ASSET VALUE PER ARTICLES OF
ASSOCIATION                       18,199       20.68         15,408       17.51

Valuation of available for sale 
investments at bid prices           (251)      (0.29)        (2,734)      (3.10)
Accounting for derivatives on 
balance sheet                       (409)      (0.46)          (414)      (0.47)
Dividends proposed                   880        1.00            880        1.00
Issue costs allocated to Zero 
Dividend Preference shares           604        0.69            980        1.11
Amortisation of issue costs 
allocated to Zero Dividend
Preference shares                   (128)      (0.15)          (114)      (0.13)
Over provision of property costs 
in published net asset value           5        0.01              -          -
Adjustment to (decrease)/increase
leasehold properties to cost        (829)      (0.94)            30        0.03
Leasehold property amortisation 
current year                        (106)      (0.12)          (116)      (0.13)
Leasehold property amortisation 
brought forward                     (116)      (0.13)             -           -
Realised amortisation on property 
disposal                             101        0.11              -           -
Underprovision in published NAV
of loan interest                      (2)          -              -           -
                                  -------     -------        --------   --------
NET ASSET VALUE PER ACCOUNTS      17,948       20.40          13,920      15.82
                                  =======     =======        ========   ========

Based on 88,000,000 Ordinary shares at 30 September 2003 (2002:
88,000,000).
*The published net asset value at 30 September 2003 reflected the
revaluation of properties at that date. The 30 September 2002 published
net asset value reflected only the revaluation at 31 March 2002.

ZERO DIVIDEND PREFERENCE SHARES        #'000   Per share    #'000    Per share 
                                               (pence)               (pence)

Published net asset value             19,374      120.95   28,851       110.97
Allocation of issue costs               (604)      (3.77)    (980)       (3.77)
Amortisation of issue costs              128        0.80      114         0.43
                                      -------     -------  -------     --------
NET ASSET VALUE PER ACCOUNTS          18,898      117.98   27,985       107.63
                                      =======     =======  =======     ========

Based on 16,018,000 Zero Dividend Preference shares at 30 September
2003 (2002: 26,000,000)

Zero Dividend Preference Shares:
An appropriation is made to increase the amounts attributable to the Zero
Dividend Preference shares from the net proceeds of their issue, including any
premium and net of any issue costs, to the expected redemption price on 30
September 2011 of 241.02 pence at a constant daily compound rate. The total net
assets attributable to the Zero Dividend Preference shares at 30 September 2003
calculated in accordance with the accounting standard and shown in the Group's
balance sheet amounted to #18,898,000 (2002: #27,985,000). This differs with the
figure shown in the balance sheet of BFS Managed Properties Securities Limited,
which is calculated in accordance with the Articles of Association of that
company.

 6. *Bank Loans

                   Facility  Drawn  Issue and      Amortisation    Total due at 
                             down   renegotiation  of issue costs  30 Sept 2003
                                    costs
                      #'000  #'000      #'000             #'000           #'000

Lloyds TSB plc       43,000  33,750       (270)              58          33,538
Bank of Scotland plc 43,000  33,750       (186)              46          33,610
 
                     ------ -------   ---------        ---------        -------
 Total               86,000  67,500       (456)             104          67,148
                     ====== =======   =========        =========        =======

The Company has loan facilities totalling #86,000,000 and, as at 30 September
2003, the Company had drawn down #67,500,000 (2002: #67,500,000). The Company
had arranged that interest on #16,000,000 of the total facilities would not be
paid until the entire facilities expire on 31 July 2008, and would be "rolled
up" and added to the value of the loans. The interest calculated thereon as well
as a proportion of non-utilisation fees would be charged to Capital in line with
the Group's investment income distribution policy. On 4 October 2002, the
Company re-arranged its bank loan facility whereby the interest on the
#16,000,000 facility previously arranged to be "rolled-up" will become payable
under the terms of the remaining facility. Finance costs unpaid on the
#16,000,000 facility at 30 September 2002 amounted to #1,016,000. This amount
was included in creditors and was paid on 18 October 2002 and 29 November 2002.
The costs associated with the changes to the bank loan facility amounted to
#129,000.

On 7 July 2003, the Company renegotiated the loans with both the Bank of
Scotland and Lloyds TSB resulting in an increase to the margin from 1.1% to 1.2%
and a change to the banking covenants as shown below.

Loan issue and renegotiation costs are amortised over the term of the loan.

The Company has entered into an interest rate swap with the Bank of Scotland plc
on loans to the value of #8,000,000 effectively fixing the rate on this portion
of the loan to 6.595% (all in rate) (2002: 6.495%). Interest has been calculated
on the remaining loan facilities at: #8,000,000 at a fixed rate of 6.586% (all
in rate) (2002: 6.486%); and #51,500,000 at LIBOR plus a margin and associated
costs amounting to 1.12%.

During the year, the Company's bank borrowings were subject to the following
financial covenants:
 a. *the ratio of the aggregate value of all permitted investments held by the
    Group to the aggregate amount outstanding under the term loans shall not at
    any time be less than 1.7:1 (covenant deleted on 4 October 2002).
 b. *the ratio of the aggregate value of properties, United Kingdom Government
    Securities (if any) and cash and cash equivalents, to the aggregate amount
    outstanding under the term loans shall not at any time be less than 1.2:1.
    From 7 July 2003 this was changed to 1.333:1.
 c. *the ratio of income to total interest payable shall not be less than 2.0:1.
    From 7 July 2003 this was changed to 1.75:1.






BFS MANAGED PROPERTIES SECURITIES LIMITED
STATEMENT OF OPERATIONS
for the year ended 30 September 2003
                                                         2003     2002
                                                        #'000    #'000

Accrued entitlement under originated loan to Parent     2,367    2,851
Finance costs on Zero Dividend Preference shares       (2,367)  (2,851)
Gain on repurchase of Zero Dividend Preference shares   2,400        -
Loss on repayment of originated loan by Parent         (2,400)       -
                                                         ------  -------
RESULT OF OPERATIONS                                        -        -
                                                         ------  -------
                                                         ------  -------
RETURN PER ZERO DIVIDEND PREFERENCE SHARE                9.98p   10.97p
                                                         ------  -------

This financial information has been prepared using the accounting standards and
policies set out in the Statutory Accounts. All items in the above statement
derive from continuing operations.

The Company was incorporated on 3 July 2001 and commenced operations on 16 July
2001.






BFS MANAGED PROPERTIES SECURITIES LIMITED
BALANCE SHEET
as at 30 SEPTEMBER 2003
                                                       2003       2002
                                                      #'000      #'000

ASSETS
NON-CURRENT ASSETS
Originated loan to Parent                            19,374     28,851
                                                     --------   --------

LIABILITIES
NON-CURRENT LIABILITIES
Zero Dividend Preference shares                      19,374     28,851
                                                     --------   --------
NET ASSETS ATTRIBUTABLE TO ORDINARY SHAREHOLDERS          -          -
                                                     --------   --------
                                                     --------   --------
REPRESENTED BY ORDINARY SHARE CAPITAL                     -          -
                                                     --------   --------

The Company is a wholly-owned subsidiary of BFS Managed Properties Limited, and
no return per Ordinary share has been shown.






BFS MANAGED PROPERTIES SECURITIES LIMITED
STATEMENT OF CASH FLOWS
for the year ended 30 September 2003
                                                       2003       2002
                                                      #'000      #'000

NET CASH INFLOW BEFORE FINANCING                          -          -
                                                     --------   --------

FINANCING ACTIVITIES
Proceeds of issue of Zero Dividend Preference            
shares                                                    -     26,000
Loan to Parent                                            -    (26,000)
                                                     --------   --------
NET CASH FLOW FROM FINANCING ACTIVITIES                   -          -
                                                     --------   --------

MOVEMENT IN CASH AND CASH EQUIVALENTS                     -          -
                                                     ========   ========







BFS MANAGED PROPERTIES SECURITIES LIMITED
NOTES TO THE RESULTS

On 16 July 2001, 26,000,000 Zero Dividend Preference shares of 25p each were
issued at a price of 100p. These shares had an initial capital entitlement of
100p per share, increasing at a daily compound rate equivalent to an annual
compound rate of 9.0 per cent, so as to reach a final capital entitlement of
241.02p per share on 30 September 2011.

During the year a total of 9,982,000 Zero Dividend Preference shares were
repurchased by the Parent at a cost of #9,444,000. The shares were subsequently
transferred to the Company and cancelled leaving a balance in issue of
16,018,000. The total cost of the repurchases was #2,400,000 less than the
accrued entitlement of the shares on the date of cancellation. The equivalent
amount of #11,844,000 of the originated loan was also cancelled.

The Company is a wholly owned subsidiary of BFS Managed Properties Limited.

The financial information of the Company for the year ended 30 September 2003
and period ended 30 September 2002 has also been consolidated into the results
of BFS Managed Properties Limited for the same periods.





                      This information is provided by RNS
            The company news service from the London Stock Exchange

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FR SEWFEESLSEEF