Highway Capital PLC 28 November 2005 HIGHWAY CAPITAL PLC INTERIM REPORT 2005 Chairman's Statement The results for the six months ended 31 August 2005 show a loss before tax of £26,932 (2004: £26,102 loss). At this time we do not consider it appropriate to declare a dividend. In the last annual statement, I informed shareholders that preliminary discussions were taking place with other possible targets. To date none have been suitable. Target companies continue to be identified and evaluated as the board seeks opportunities to maximize the value of the company. I will report to you as soon as there are positive developments. Dominic Wheatley Chairman 28 November 2005 Income Statement 6 months ended 6 months ended 31 August 2005 31 August 2004 (unaudited) (unaudited) Notes £'000 £'000 Revenue - - Administration expenses (39) (38) ----- ----- Operating loss (39) (38) Finance income 12 12 ----- ----- Loss before taxation (27) (26) Tax on loss - - ----- ----- Loss attributable to equity holders (27) (26) Dividends - - ----- ----- Retained loss for the period (27) (26) ===== ===== Loss per share 2 (0.34)p (0.33)p ===== ===== Dividends per share 3 - - ===== ===== Balance Sheet 31 August 2005 31 August 2004 (unaudited) (unaudited) £'000 £'000 Fixed assets Investments - - ----- ----- - - Current assets Debtors 8 8 Cash at bank and in hand 629 666 ----- ----- 637 674 Creditors: amounts falling due within one year (39) (18) ----- ----- Net current assets 598 656 ----- ----- Net assets 598 656 ===== ===== Capital and reserves Share capital 159 159 Share premium 295 295 Profit and loss account 144 202 ----- ----- Total equity holders' funds 598 656 ===== ===== Cash Flow Statement 6 months ended 6 months ended 31 August 2005 31 August 2004 (unaudited) (unaudited) £'000 £'000 £'000 £'000 Net cash outflow from operating activities (29) (51) Returns on investments and servicing of finance Dividends received - - Interest received 12 12 ----- ----- 12 12 Equity dividends paid - - ----- ----- Decrease in cash (17) (39) ===== ===== Notes to the Interim Statement 1. Basis of preparation of the interim statement The profit and loss account, balance sheet and cash flow statement have been prepared on a basis consistent with the financial statements for the year ended 28 February 2005. A copy of the full financial statements for the year ended 28 February 2005, on which the auditors have issued an unqualified report, has been delivered to the Registrar of Companies. The financial information contained in the interim statement does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. There are no acquired or discontinued operations in the above two financial periods. Highway Capital plc is a stand-alone company and does not prepare consolidated accounts. It has therefore continued to prepare its accounts in accordance with UK rather than international accounting standards, as permitted under EC Regulation 1606/2002. 2. Loss per share The loss per ordinary share calculation has been based on the losses attributable to ordinary shareholders of £27,000 (2004: £26,000), divided by 7,945,638 (2004: 7,945,638) being the average of the issued share capital during the period. There is no difference between basic and diluted loss per share. 3. 2005 interim dividend No interim dividend has been declared. 4. Publication Copies of this statement will be circulated to all shareholders and will also be available from the company's registered office at 2 Fitzhardinge Street, London W1H 6EE. This information is provided by RNS The company news service from the London Stock Exchange