Terrace Hill Group PLC FULL YEAR RESULTS

FULL YEAR RESULTS SHOW CONTINUED PROGRESS IN DEVELOPMENT BUSINESS AND INCREASED FOCUS ON FOODSTORES

Terrace Hill Group plc, a leading UK property investment and development group, today announces results for year to 30 September 2011.

 Financial Highlights:

• Revenue profit* of £5.6 million (30 September 2010: loss of £3.0 million)
• Revenue of £67.8 million (30 September 2010: £30.7 million)
• Loss before tax (IFRS) of £10.2 million (30 September 2010: profit of £17.9 million)
• EPRA Net Asset Value per share decreased by 23.9% to 25.4p (30 September 2010: 33.4p as restated) while EPRA Triple Net Asset Value per share decreased by 23.0% to 26.6p (30 September 2010: 34.5p as restated)
• Balance sheet gearing reduced to 95.1% (30 September 2010: 127.6%, on a restated basis)with net debt reduced by £39.3 million to £51.4 million (30 September 2010:  £90.7 million)

Operational highlights:

• Foodstore business maturing very well and growing rapidly, with the committed programme of development now standing at 652,000 sq ft, with a projected end value of £240.0 million
• Good progress with other developments, including two central London office led mixed use schemes at Howick Place in Victoria, and Savile Row / Conduit Street, W1
• Orderly disposal of residential portfolio underway with a 12-18 month sales process expected

Commenting, Robert Adair, Chairman of Terrace Hill, said:  “In the last year there have been some very positive aspects to our business, most particularly the strong growth in our foodstore development programme and reduction in debt. We believe that the greatest potential for the business lies in focusing on our key strengths of commercial property development and trading, and as we execute this strategy I remain confident we will perform well over the medium term and add value to the business for our shareholders.”