the creation of value through
entrepreneurial management and 
risk-controlled development of
commercial property assets
annual report and accounts 2002 contents
1 Operating and Financial Highlights
2 Building Value
5 Chairman’s Statement
6 Chief Executive’s Review 
8 Operational Review
10 Financial Review
12 Directors and Professional Advisors 
14 Directors’ Report
16 Statement of Directors’ Responsibilities 
17 Auditors’ Report
18 Consolidated Profit and Loss Account
19 Consolidated Statement of Total Recognised Gains and Losses
19 Consolidated Reconciliation of Movements in Shareholders’ Funds
19 Statements of Movement in Reserves
20 Consolidated Balance Sheet
21 Company Balance Sheet
22 Consolidated Cash Flow Statement
23 Notes to the Consolidated Cash Flow Statement
24 Notes to the Financial Statements
35 Pro forma Unaudited Consolidated Balance Sheet
36 Financial Diary halladale group plc annual report and accounts 2002 1
operating highlights
Total purchase and sale transactions increased by 141% to £82m (2001 – £34m)
Portfolio under management increased by 92% to £116m (2001 – £60.27m)
Significant increase in shopping centre acquisitions 
Major expansion of joint venture relationships
financial highlights
2002 2001 Increase
Profit Before Tax £1,151,000 £849,000 36%
Proforma Net Asset Value £14,053,000 £11,530,000 22%
Proforma Net Asset Value 77.6p 68.9p 13%
Per Ordinary Share
Dividend on Ordinary Shares 1.25p nil 2 halladale group plc annual report and accounts 2002
Since formation in 1991 our clear vision has been the creation of value 
through active and entrepreneurial management and risk-controlled
development of property assets.
As a knowledge and skill based business we identify properties, through
careful stock selection and research of the local market place, where 
we can generate a good return on capital employed over an average 
three year timescale.
building
value
the woodley shopping centre, reading 
Woodley is a prosperous suburban district centre in Reading.
The 78,250 sq. ft. shopping centre provides a strong line up 
of national retailers, including a 30,000 sq. ft. Waitrose, 
17,000 sq. ft. of offices, the majority of which are let to the
District Council, and some residential units.
the market hall shopping centre, carlisle 
The Market Hall comprises 101,000 sq. ft. retail space 
and is located opposite the new Debenhams store in the
extended Lanes Shopping Centre in Carlisle. Anchored by 
major stores, occupied by TK Maxx and Wilkinsons, the 
Market Hall, a historic and listed building, also provides 
a popular traditional covered market of some 100 stalls. halladale group plc annual report and accounts 2002 3
This approach enables us to react quickly to changing market conditions 
and take advantage of regional opportunities throughout the UK and is
reflected in our current focus on the retail sector.
Our admission to AIM in 2001 has provided the Company with additional
resources, and we continue to seek opportunities to further expand our
equity base. 
the exchange, 19 newhall street, birmingham
A listed period office building located in the central Birmingham
office core. A phased refurbishment and upgrading programme is
being implemented to improve rental levels and tenant covenant.
market walk shopping centre, newton abbot
Market Walk extends to 91,000 sq. ft. and is the principal
shopping centre in this prosperous market town in Devon. 
Major tenants include New Look, Somerfield, Edinburgh
Woollen Mill and Iceland. Plans to carry out a major local
extension and refurbishment programme are being 
discussed with the local Council. 4 halladale group plc annual report and accounts 2002
Likewise the development of relationships with high quality equity 
partners has resulted in significant new projects which are generating
both on-going fee income and incentivised profits from our asset 
management and development activities.
70 queen street, glasgow
This mixed use development in Glasgow’s city centre, 
which is due to be completed later this year, comprises
20,000 sq. ft. of retail space on ground and basement, 
23 high quality city centre flats with underground 
car parking and an adjoining students’ residence.  halladale group plc annual report and accounts 2002 5
I am pleased to report that we have made significant progress
in our first full year as an AIM listed company. This was
achieved against a background of a global economic slowdown
and extremely volatile stock markets, all exacerbated by the
terrible events of September 11th.
The UK economy slowed rapidly in the final quarter of 2001
but appears to have avoided recession. The most recent CEBR
forecast indicates GDP growth of 1.5% in 2002 and 2.1% in
2003. The direct property market again performed well and for
the second year running was the top performing asset class in
the UK with total returns of 6.7% in the calendar year 2001.
For the year to 30th April 2002 the Company’s profit before
tax rose from £849,000 to £1,151,000, an increase of 36%.
Earnings per share were 5.34p, a reduction from last year’s
restated figure of 7.66, but this reflected the substantially
higher number of ordinary shares in issue compared with the
average number last year. Net asset value per ordinary share,
based on the pro forma unaudited balance sheet, rose by 13% 
from 68.9p to 77.6p. These results are fully analysed in the
Financial Review.
Following the interim dividend of 0.5p per share paid on
14th February 2002, the directors are proposing a final dividend
of 0.75p per share for the year ended 30th April 2002. Subject 
to approval at the Annual General Meeting this will be paid 
on 27th September 2002 to shareholders on the register on
30th August 2002. The Board’s stated intention is to pursue 
a progressive dividend policy. In an era of low inflation
investors are likely to be increasingly attracted to companies
offering sustained income growth in addition to capital growth
and that is precisely what we aim to deliver.
As you will see from the Chief Executive’s Review and 
the Operational Review the last twelve months have seen an
extremely high level of transactional activity. As Chairman I am
conscious that this has put a tremendous workload on my
executive colleagues and indeed on all of our staff. As I would
have expected they have coped with this in exemplary fashion.
Delivering value to shareholders in the coming years remains
your Board’s fundamental objective and I know that everyone 
at Halladale understands this and will strive hard to achieve it.
Our Annual General Meeting takes place in Glasgow on 
10th September 2002. Although there is always a certain
amount of formal business to be conducted I do regard the
AGM as an important opportunity for communication between
shareholders and the Board. I look forward therefore to
welcoming as many of you as possible at this year’s meeting.
FRED SHEDDEN MA LLB
Chairman
chairman’s statement “For the year to 30th April
2002 the Company’s profit before tax rose from
£849,000 to £1,151,000, an increase of 36%.
Earnings per share were 5.34p. Net asset value per
ordinary share, based on the pro forma unaudited
balance sheet, rose by 13% from 68.9p to 77.6p.” 
fred shedden, non-executive chairman 6 halladale group plc annual report and accounts 2002
The year under review has been one of substantial activity and
significant achievement on all fronts, despite a background of
international turbulence and economic slowdown in the UK 
and elsewhere.
Within the UK property market there is a clear differential
between the occupier market where tenant demand is weak,
particularly for offices, and the investment market where there 
is strong demand from institutional and private investors.
There has been a distinct improvement in sentiment towards
property, influenced by its recent outperformance of equities
and gilts and a perception that bricks and mortar represent a
safe investment in uncertain times.
Property
It has been an active year for the Company and this is demon-
strated by transactions totalling £82m this year compared to
£34m last year, and a 92% increase in the portfolio under
management to £116m at 30th April 2002. We are pleased that
this is also reflected in the 36% increase in profit before tax to
£1.151m this year and a 13% increase in proforma NAV to 77.6p
at the year end.
Total acquisitions of £63.5m during the year will provide
interesting asset management opportunities which should
contribute to profit in future years. Disposals of £18.23m during
the year took advantage of strong investor demand and were
also consistent with our strategy of realising profit, once 
the asset management opportunities have been achieved, 
and recycling the capital released into new projects.
With continued strong consumer spending, we believe our
current focus on the retail sector is the right strategy in today’s
market. We continue to favour shopping centres where rental
levels are realistic and provide prospects for growth, but more
importantly where we can identify specific opportunities to 
add value. We are also growing our development and project
management activities recognising, in the present economic
climate, the key risk element is the end occupier. We will only
undertake developments where we have reached agreement
with the end occupier or where local economy supply and
demand factors convince us there will be continued
occupational demand.
The increase in our property activities has required us to
expand our management team and we recruited two asset
managers during the year, based in our Glasgow and London
offices. As the Company grows we are determined to ensure 
we continue to attract the highest calibre of management 
to maintain and enhance the professional standards we 
set ourselves.
Corporate
Our experience as an AIM listed Company has been good 
and there is no doubt it has raised the Company’s profile 
in the market place. The choice of AIM was the right one 
as the regulatory environment is much more suited to a
transaction-orientated company like Halladale. Furthermore,
for as long as the business continues as a trading group, 
the ordinary shares will be eligible for capital gains tax
business asset taper relief.
One of the reasons for seeking a Stock Exchange Listing
was the ability to raise new equity to grow the Company 
and, since Admission on 27th April 2001, we have raised
£722,000 through two share issues, both of which were
associated with the setting up of new joint ventures. The 
first of these in July 2001 was a joint venture with Haworth
Nominees Ltd, a private client of Kleinwort Benson Private
Bank, and involved the acquisition of an existing company
which owned two shopping centres valued at £18.1m. 
The second share issue in January 2002 was to the Bank 
of Scotland in association with the formation of Halladale
Ventures Ltd. This company was established with £1m of 
equity from each of Halladale and the Bank of Scotland,
together with revolving credit facilities and unsecured loan
stock, totalling £33m provided by the Bank. I would take 
this opportunity of extending a warm welcome to all our 
new shareholders.
As well as the new relationships referred to above, we 
have strengthened our existing relationship with Citigroup
Alternative Investments through two new joint ventures, 
one during the year and one since the year end, both of 
which are described in the Operational Review.
In addition to raising £722,000 of new equity on our own
balance sheet since Admission, we have in the same period
also raised £15.6m of new equity off balance sheet for specific
projects through joint ventures. As I explain later, whilst 
joint venture relationships are important to us, this does
demonstrate we have the capacity to initiate and manage a
much bigger portfolio on our own balance sheet. The term 
‘joint ventures’ includes all associate and joint venture
companies as disclosed in Note 12 to the accounts.
chief executive’s review “In the medium term 
the macro picture for the property market should
continue to be good with improving investment
sentiment and a stable background of low inflation
and low interest rates.”
david lockhart, chief executive halladale group plc annual report and accounts 2002 7
Strategy
Our core strategy continues to be to create value for share-
holders through active and entrepreneurial management 
and risk controlled development of property assets over 
an average three year timescale.
Increasingly we implement that strategy through joint
ventures and at the year end 53% of the portfolio under
management was in off balance sheet joint ventures. 
This reflects the growing trend in the property industry 
of separating the long term ownership of property assets 
from their management.
We are committed to expanding our joint venture activities
through existing and new relationships. We believe the growing
demand for property as an investment will increase the need 
for innovative and specialist co-investment vehicles and that 
we are well placed with our range of property and financial
skills and experience to set up, in partnership with others, 
and manage these vehicles.
As a consequence, our fee income continues to grow and 
in future years we expect to see that forming a significant part
of our recurring income. Co-investing is also an effective use 
of our capital through incentivised equity returns.
Prospects
In the medium term the macro picture for the property market
should continue to be good with improving investment
sentiment and a stable background of low inflation and low
interest rates.
Occupational demand and the prospects for rental growth
should return as and when the economy resumes normal
growth trends. In the meantime local economic factors vary
across the country and opportunities to add value can still be
identified through careful and well researched stock selection.
We have a strong and committed management team and we
remain determined to drive the business forward through the
next phase of its growth. I believe we can face the challenges
ahead with confidence.
I would like to thank our management team, staff and
professional advisors for their commitment and their hard 
work throughout the year.
DAVID LOCKHART CA NP
Chief Executive
portfolio under
management 
£000
50,460
00
60,270
01
116,000
02
total transactions
£000
29,000
00
34,000
01
82,000
02 8 halladale group plc annual report and accounts 2002
Once again property has been the top performing asset class
recording a 6.7% total return during the year to 31st December
2001 as reported by the Investment Property Databank. 
There was no substantial variance between the principal
commercial sectors with retail at 5.5%, offices at 7.6% and
industrial at 8.2%.
Despite the outperformance of property, there has been a
slowdown in rental growth across all sectors. It has been most
severe in the previously buoyant office sector particularly in 
the south east of England.
2002 started with strong demand from debt driven
purchasers and limited interest from the institutions. Over 
the last three months this has changed with new allocations 
to institutional investors increasing the amount of funds
committed to a market already limited in terms of supply. 
If this trend continues it is likely that it will have a positive
impact on capital values despite limited prospects for rental
growth in the short term.
As at 30th April 2002 the total portfolio value was £116m
(2001 – £60.27m). Unit shops represented 25%, shopping
centres 53%, industrials 5% and offices 17%. DTZ valued the
majority of this portfolio at 30th April 2002 with the exception
of Queen Street, Glasgow which was valued by Knight Frank,
Glasgow. The properties at Brentwood and those comprising
the Scottish Retail Portfolio referred to below were valued at
cost due to their acquisition being so close to the year end.
Acquisitions
Over the last twelve months total acquisitions increased
significantly to £63.5m (2001 – £18.17m) throughout the UK.
The largest was the acquisition, through a joint venture with 
a private client of Kleinwort Benson Private Bank, of Allied
London Retail Trading Ltd. This company owned two shopping
centres in Carlisle and Newton Abbott at a value of £18.1m,
reflecting an initial yield of 8%. The two centres offer attractive
opportunities to add value by restructuring long leasehold
interests, refurbishments including extensions to the centres
and regearing existing leases. 
We purchased the shopping centre in Woodley, Reading 
for £7.585m, at an initial yield of 9.5%. The Centre comprises 
14 unit shops, an anchor foodstore let to Waitrose, 17,000 sq. ft. 
of office accommodation and 7 residential units and offers
interesting asset management opportunities which are being
pursued. This acquisition is our second joint venture with
Citigroup Alternative Investments.
The Chapel High Shopping Centre, Brentwood, was acquired
for £7.25m, at an initial yield of 8.4%, and is the first project
through Halladale Ventures Limited our new joint venture with
Bank of Scotland. This dated shopping centre comprises
approximately 70,000 sq. ft. retail on two levels, a vacant
cinema and a 66,000 sq. ft. vacant office tower above, together
with associated multi-storey car parking. The Centre presents
major asset management and redevelopment opportunities
which are being worked up in discussion with the Council. 
A portfolio of four retail properties in Ramsgate, Reading,
Fleet and Southampton and two offices in Glasgow and
Uxbridge was purchased at a price of £14.14m, at an initial 
yield of 8.7% and since the year end we purchased, through
Halladale Ventures Ltd, a Scottish Retail Portfolio located in
Barrhead, Erskine, Inverness and Glasgow at a price of £11.5m
and an initial yield of 8.2%. Both portfolios present good
opportunities to add value through break up, rent reviews 
and relettings.
Since the year end the Company has also acquired, in its
third joint venture with Citigroup Alternative Investments, 
a high quality portfolio of 15 properties for £32m at an initial
yield of 7.56%, with asset management opportunities. Twelve
of the properties are located in England and three in Scotland
and they comprise six retail units, two retail warehouses, 
two trade counters, one office and four industrial units.
Disposals
During the year we completed sales totalling £18.23m 
(2001 – £15.22m) at a surplus over book cost where we had
implemented our planned asset management strategy. These
included a mixed portfolio of eight properties for £8.79m.
In Glasgow’s West End we sold a site for £2.07m to a
residential builder, which we had assembled from a number of
ownerships and for which we had procured a planning consent
for 16 new luxury flats. We also sold a vacant site adjacent to
one of our industrial estates in Glasgow to an industrial
developer for £500,000.
We took advantage of the strong demand for small retail
investment, and sold ten retail properties individually in the
year for a total of £6.57m. 
Finally, as part of the Queen Street, Glasgow development
referred to below, we sold to a student residence developer 
the airspace required for that development for £302,000.
Development & Asset Management
Our largest project in Queen Street, Glasgow, should be
completed later this year and the newly constructed building
will comprise 20,000 sq. ft. of retail, a 180 student residential
development which has been forward sold, and 23 high quality
city centre flats with basement car parking. The flats were
recently marketed and the majority of them are either under
operational review “The past twelve months 
has been particularly successful in terms of a 
very significant increase in the assets under
management which now provide many interesting
opportunities to add value in the next few years.”
ken lindsay, property director halladale group plc annual report and accounts 2002 9
offer or legally contracted for sale. There is also a good level 
of interest in the retail space which provides large floor plates
close to the prime shopping in Buchanan Street.
Planning permission was granted, after appeal, to redevelop
part of the shopping centre in Daventry. Demolition has 
recently commenced and work will shortly start to construct
10,000 sq.ft. of new retail space, with nine new maisonettes
above. Completion is expected later this year and there is
already a good level of tenant interest, with the maisonettes 
all under offer for sale. Planning consent was also obtained 
to redevelop the Craigshill Shopping Centre in Livingston 
to create 6,000 sq. ft. of additional retail space.
At Woolwich, planning permission has been granted 
to develop a 3.8 acre site comprising a terrace of trade 
counter units, a drive-thru restaurant and car showroom. 
The development is being carried out in partnership with 
Tilfen Ltd. who own the site and it is hoped to commence 
later this year with a number of key pre-lets in place.
The office development at Queens Road, Reading, has 
been affected by the slowdown in tenant demand for South
East offices. Part of the building was let during the year 
and the balance of the space continues to be marketed.
We purchased a small site in Rutherglen jointly with a 
local housebuilder and work has recently commenced on site 
to construct six new residential units, with strong interest 
from potential owner occupiers.
Our subsidiary company, L’Etoile Developments Ltd, has
entered into an exclusivity agreement with Kent County Cricket
Club to promote the development of a hotel adjacent to the
cricket ground and this is currently being marketed. L’Etoile
have also been appointed as project managers for hotel
developments in Cambridge and Hackbridge near Croydon. 
Future Activities
With limited rental growth prospects across most sectors,
performance will depend on the strong asset management
skills that the Company possesses. The past twelve months 
has been particularly successful in terms of a very significant
increase in the assets under management which now provide
many interesting opportunities to add value in the next 
few years.
The large retail element in the Company’s portfolio will
benefit from strong consumer spending and the fast improving
sentiment by investors towards this sector. Property is
perceived by both private and institutional investors as a
particularly attractive asset class and this position is likely 
to continue over the next twelve months.
KEN LINDSAY FRICS
Property Director
portfolio analysis by geographical split 
2001
yorkshire and humberside 4%
west midlands 5%
wales 4%
south west 4%
south east 23%
scotland 26%
outer london 8%
north east 4%
east midlands 19%
2002
shopping centres 53%
retail 25%
offices 17%
industrial 5%
2002
yorkshire and humberside 2%
west midlands 2%
south west 11%
south east 34%
scotland 29%
outer london 5%
north west 6%
east midlands 11%
portfolio analysis by sector
2001
shopping centres 26%
retail 34%
offices 19%
industrial 21% 10 halladale group plc annual report and accounts 2002
Operating performance
There are two main reasons why the Group’s operating 
profit has increased only marginally from £3.64m in 2001 to 
£3.70m, while pre-tax profit has improved from £849,000 in
2001 to £1.151m this year. Firstly, there has been a high level 
of property trading in the year which saw property sales 
of £18.23m (2001 – £15.22m) from 21 properties (2001 – 
17 properties) contributing a profit at the operating level of
£1.85m (2001 – £1.39m). Many of these sales completed in 
the early part of the year resulting in reduced rental income
until the proceeds were reinvested and consequently is a 
timing issue. The second reason is the increased emphasis on
joint venture projects in the year, as referred to in the Chief
Executive’s Review, fees from which contributed significantly 
to the increase in other income from £264,000 in 2001 to
£570,000 this year. Accordingly, although at 30th April 2002 
the total annualised rent roll under management, including
properties owned by joint venture vehicles, was £8.44m, only
properties with an annual rent roll of £3.65m were accounted
for on balance sheet. Properties held in 50% Joint Venture
companies, where the Company accounts for 50% of the
attributable rental income, increases the sum attributable 
to the Company by £0.78m. As a result of both these factors,
rental income fell from £3.74m in 2001 to £3.38m. A full year of
additional costs relating to the Company’s listed status, along
with an overall increase in activity and staffing levels saw
administration costs increase from £1.75m in 2001 to £2.1m. 
The net interest cost in the year, excluding the share of
interest payable by associated companies, fell from £2.82m 
in 2001 to £2.65m. The decrease is a result of falling interest
rates, to the extent that the Company benefits from floating
rates as explained below, as well as reflecting the level 
of property trading. The average interest rate on property 
debt at 30th April 2002 was 7.29% compared to 7.97% at 
30th April 2001.
The increase in pre-tax profit is a combination of the above
factors and the net share of profits and losses of associate
companies of £79,000 (2001 – £19,000). 
Earnings per share
Earnings per share this year are 5.34p compared to 7.66p 
in 2001. Although this shows a decrease this is solely due to 
the fact that the average number of ordinary shares in issue
immediately before flotation on 27th April 2001 was 4,000,000,
increasing to 16,812,500 through the flotation by 30th April,
2001, giving an average number of shares of 4,140,410. This
year’s figure and calculation, on the same basis as last year, 
is only marginally distorted by the issue of shares in the year
due to the comparatively small size of the new share issues 
and their respective timing.
Adjusted shareholders’ funds
As in previous years, a proforma balance sheet has been
prepared to reflect the difference between properties carried 
at cost and their open market value based on a valuation by
DTZ Debenham Tie Leung at 30th April 2002. This is required
as, in accordance with accounting convention, all of the Group’s
properties are held as trading stock and therefore at cost. The
uplift to valuation is necessary to provide a meaningful figure of
net assets per share. This uplift, reflecting value of properties
held as stock on the Group balance sheet, as well as taking
account of the Group’s share of properties held as stock in 
the balance sheets of associate companies, shows adjusted
shareholders’ funds of £14.05m (2001 – £11.53m) and this is 
the figure referred to in these accounts as ‘proforma’. The
proforma balance sheet and information does not form part of
the financial statements and is unaudited, although the only
change between this and the statutory balance sheet is the
revaluation of properties as explained above.
The impact on net assets per share is in the table below:
financial review 
mark harkin, finance director
Impact on net assets per share
Net Asset Value Pence
£000 per share
Equity shareholders’ funds as shown in the Group balance sheet 8,194 45.3
Uplift to market value of properties held as trading stock 5,316 29.3
Group’s share of uplift to market value of properties held as trading stock in associate companies 543 3.0
Proforma Net Assets 14,053 77.6 halladale group plc annual report and accounts 2002 11
The Company made two new share issues in the year, 
as referred to in the Chief Executive’s Review, which had a
marginally dilutive effect on net asset value per ordinary share.
800,000 shares were issued at 59p per share in July 2001, and
495,000 shares were issued at 50.5p per share in January 2002.
Borrowings, gearing and banking
At 30th April 2002 the Group had total borrowings of £41.13m
(2001 – £41.71m) including £5.23m relating to developments 
in progress, and cash in hand of £1.91m (2001 – £3.06m).
Gearing at 30th April 2002 was 479% (2001 – 559%) on a 
statutory basis and 279% (2001 – 332%) on a proforma basis. 
These figures have been increased through the structuring of
the non-recourse debt of a joint venture arrangement fully on
balance sheet. This has increased gearing at 30th April 2002 
by 70% on a statutory basis and by 40% on a proforma basis.
Of total property borrowings, £16.33m is at fixed rates
averaging 8.16% p.a and the balance is at floating rates, based
either on LIBOR or base rate, at an average rate of 6.65% p.a.
Additionally there is an unsecured loan of £2.25m (2001 –
£2.25m) from The Throgmorton Trust plc, a shareholder in the
Company, amortising over four years at a fixed rate of 8% p.a.
The Group requires to retain flexibility on timing of
repayment of debt to allow active trading and minimise interest
rate breakage costs. A balance continues to be struck between
this and securing protection over exposure to interest rate
movements. Accordingly at the year end 45% of total group
debt is at fixed rates, with the balance benefiting from current
lower rates of interest.
FRS 13
As last year a full report on the use of derivatives and other
financial instruments under FRS 13 is contained in Note 17. 
This shows a fair value adjustment for the current year of 
£1.1m (2001 – £1.2m). After tax this adjustment would reduce
net assets per share by 4.25p (2001 – 5p). The main factor in
this figure for both years, is a loan from Sun Life of Canada
maturing in 2014 at a fixed rate of 10.29% p.a. The Company 
has no current intention to seek to make early repayment of
this debt, other than in accordance with the amortisation 
in terms of this facility.
FRS 19 ‘Deferred Tax’
As explained in Note 2, the Company has reflected the impact
of FRS 19 by making full provision for all timing differences
between accounting and tax treatments of items in the
accounts. Previously the requirement was only to provide
where it was reasonably expected that timing differences would
reverse in the foreseeable future. The main items provided for
are accelerated capital allowances (where historically certain
properties had been held as fixed assets) and depreciation. 
The Company had provisionally made prudent provisions for
deferred tax and accordingly the overall impact at 30th April
2002 is minimal. It should be noted that 2001 comparatives in
this report are shown at their restated amounts in accordance
with Note 2 of the accounts.
MARK HARKIN BAcc CA
Finance Director
profit before tax
£000
605
00
849
01
1,151
02
proforma nav
£000
10,046
00
11,530
01
14,053
02 12 halladale group plc annual report and accounts 2002
directors and professional advisors
FRED SHEDDEN MA LLB
Aged 58  Non-executive Chairman 
is a solicitor with over 30 years
experience. His whole professional 
career was with McGrigor Donald where
he was managing partner for 8 years 
and then senior partner for 7 years until
his retirement from the firm in 2000. 
He is now non-executive director of a
number of listed and unlisted companies 
including iomart Group plc, Burn Stewart
Distillers plc, Murray International 
Trust plc, Martin Currie Japan Investment
Trust plc, Wisdom IT Holdings Limited
and Good Practice Limited. He is a
Governor of Glasgow School of Art and 
a member of The Scottish Further
Education Funding Council.
Mr Shedden joined the Board of
Halladale in March 2001 as Non-executive
Chairman.
DAVID LOCKHART CA NP
Aged 58  Chief Executive
is qualified as a Charted Accountant 
and Solicitor. He practised law in his
family law firm until 1981 when he
resigned to found Caltrust Limited, 
a property development company based 
in Scotland. He served as Executive
Chairman of Caltrust Limited until 1987
when the company was acquired by
Sheraton Securities International plc,
following which he served as Managing
Director of the newly formed Sheraton
Caltrust plc until 1990. During this period
the company undertook, either on its
own or in a joint venture, numerous
prime office and retail developments.
In 1991, Mr Lockhart founded
Halladale and served as Executive
Chairman until March 2001 when he
assumed the role of Chief Executive.
KEN LINDSAY FRICS
Aged 50  Property Director
is a Chartered Surveyor with over 
25 years’ experience in the UK
commercial property. His career in
property spans both public and private
sectors. As Senior Surveyor from 1983
with Scottish Provident and Aberdeen
Asset Managers he was responsible 
for a £350 million property investment
portfolio, and undertook many major
transactions. In 1993, as Property Fund
Manager, he assumed responsibility for
an active UK property portfolio worth
£500 million with annual purchases 
and sales of more than £100 million.
Mr Lindsay joined the Board of
Halladale in 1998 as Property Director. 
Secretary
M.J. Harkin BAcc CA
Registered Office
93 West George Street, Glasgow G2 1PB
Company Number
SC134255
Auditors
Deloitte & Touche 
Lomond House, 9 George Square,
Glasgow G2 1QQ
Nominated Advisor
Noble & Co
76 George Street, Edinburgh EH2 3BU
Broker
Teather & Greenwood
Beaufort House, 15 St Botolph Street, 
London EC3A 7QR
Valuers
DTZ Debenham Tie Leung
One Curzon Street, London W1A 5PZ halladale group plc annual report and accounts 2002 13
MARK HARKIN BAcc CA
Aged 42  Finance Director
graduated from Glasgow University in
1980 and is a Chartered Accountant.
After 6 years in the accountancy
profession, he joined Caltrust Limited
(which became part of Sheraton 
Caltrust plc), a Scottish based property
development company in 1986 and was
involved in many development projects
throughout the UK. In 1990 he joined
Edinburgh Development and Investment
Limited, the property development arm
of Edinburgh District Council.
Mr Harkin joined the Board of
Halladale as Finance Director in 1995.
MICHAEL BAKER FRICS
Aged 55  Non-executive Director
is a Chartered Surveyor with over 30
years experience in the Central London
property market and was previously
Managing Director of Baker Harris
Saunders plc. He is a founding partner of
BH2, a specialist City of London property
consultancy and is a past Chairman of
the City of London branch of The Royal
Institution of Chartered Surveyors. 
He is a Senior Warden of the Chartered
Surveyors Livery Company and is actively
involved in other aspects of the City
property market.
Mr Baker joined the Board of
Halladale in 1995.
ARCHIE ROBERTSON FCCA
Aged 56  Non-executive Director
is a Chartered Certified Accountant 
and since 1992 has been a business
consultant and holds several non-
executive directorships. He has over 
30 years experience in the UK and
overseas with a number of multinational
companies. As a business consultant 
he has been involved in a number of
turnaround situations. 
Mr Robertson joined the Board of
Halladale in 1997.
Solicitors
KLegal
63 Queen Victoria Street, 
London EC4M 4ST
McGrigor Donald
Pacific House, 70 Wellington Street,
Glasgow G2 6SB
Clearing Bank
Bank of Scotland 
11 Renfield Street, Glasgow G2 5EZ
Registrars
Northern Registrars Limited
Northern House, Woodsome Park, 
Fenay Bridge, Huddersfield HD8 0LA 14 halladale group plc annual report and accounts 2002
directors’ report
The directors present their report and the audited financial statements for the year ended 30th April 2002.
1. Activities and future prospects
The principal activities of the Group are trading, asset management and development of property located throughout the UK. 
A full review of the Group’s business and results for the year is contained in the Chairman’s Statement, Chief Executive’s Review,
Operational Review and Financial Review, which should be read in conjunction with this report.
2. Results and dividends
The Group profit for the year after taxation and minority interest amounted to £938,076. An interim dividend of 0.5p per share,
amounting to £88,176, was paid in February 2002 and it is proposed that a final dividend of 0.75p per share, amounting to
£135,806, be paid in September 2002. This leaves a surplus of £714,094 to be transferred to reserves.
3. Share capital
The changes to share capital during the year principally relate to two new issues made in the year as detailed in Note 19 of the
accounts.
4. Substantial shareholders
As at 30th April 2002, the only substantial interests notified to the Company of 3% or more of the allotted and fully paid ordinary
shares of the Company were as follows:
Shares held %
3i Group 4,345,000 24.00
The Throgmorton Trust plc 2,812,500 15.53
Finsbury Trust Plc 2,000,000 11.05
David A.S. Lockhart* 1,650,000 9.11
DASL Liferent Trust* 1,500,000 8.28
Solus – UK Special Situations Fund 1,250,000 6.90
George S. Lockhart Trust for Niece & Nephews* 1,000,000 5.52
Frank Nominees Limited 800,000 4.42
* these shareholders are considered to be related.
5. Power to allot shares 
At the forthcoming Annual General Meeting resolutions will be proposed to increase the directors’ power to allot, at any time
during the following five years, shares equal to up to 10% of the issued share capital, otherwise then on a pre-emptive basis.
6. Corporate governance
The Company’s shares are traded on the Alternative Investment Market and it is therefore not required to comply with the provisions
of the Combined Code. The Board is however committed to ensuring that proper standards of corporate governance operate and 
has established governance procedures and policies that are considered appropriate to the nature and size of the Group.
Internal Control
The directors have reviewed the effectiveness of the system of internal control, the key elements of which are as follows:
• Board Procedures to establish the controls within which management operate
• The measurement of Group financial performance on a monthly and project-by-project basis against budget. On a quarterly
basis this reporting is formalised within a report circulated and considered by the Board.
• A system of authorisation and approval of expenditure, together with relevant cheque signatory limits has been put in place. 
Directors’ Responsibilities
Details of the composition of the Board are disclosed in this report. The non-executive directors are independent of the Company.
Board meetings are held on average every two months, where a formal schedule of matters including, inter alia, overall strategy
and monitoring of financial performance, are discussed.
On 27th April 2001 two committees were established. The Minutes of these committees are circulated and reviewed by the
directors.
Audit Committee
The Audit Committee comprises the three non-executive directors who have a remit to meet at least twice a year to monitor 
the Company’s financial reporting and accounting policies and the adequacy of internal financial controls. The Committee also
reviews interim reports, preliminary announcements and the Annual Report and Accounts prior to their submission to the Board. halladale group plc annual report and accounts 2002 15
directors’ report continued
6. Corporate governance (continued)
Remuneration Committee
The Remuneration Committee comprises the three non-executive directors and meets at least once a year to determine the
remuneration and terms and conditions of employment of the executive directors of the Company. In particular, the Remuneration
Committee sets the level of discretionary bonus payments to each of the executive directors, based on pre-set performance criteria.
The total sum paid in bonus to the executive directors for the year to 30th April 2002 was £100,000.
Additionally, the full Board acts as the Nomination Committee to consider, when necessary, the appointment of any new
directors or Company Secretary.
Going Concern
After making due enquiry, the directors are of the opinion that at the time of approving the accounts, taking into account available
bank facilities, the Group has adequate resources to continue in operational existence for the foreseeable future. The accounts
have therefore been prepared on the Going Concern basis.
7. Directors
The present membership of the Board is set out on pages 12 and 13.
The directors who retire from office by rotation under Article 24 of the Articles of Association are A.C. Shedden and K.F. Lindsay.
Being eligible, their re-election is recommended by the Board at the forthcoming Annual General Meeting.
The directors’ interests, as defined in the Companies Act 1985, in the shares of the Company at 30th April 2002 are as follows:
Ordinary Shares
of £0.25
2002 2001
D.A.S. Lockhart 1,650,000 1,650,000
A.C. Shedden 20,000 20,000
K.F. Lindsay 20,000 20,000
M.J. Harkin 10,000 10,000
D.A.S. Lockhart also has a beneficial interest in 1,500,000 ordinary shares of £0.25 through a liferent trust (2001 – 1,500,000) and 
a further non-beneficial interest in 1,000,000 ordinary shares of £0.25 (2001 – 1,000,000) through another liferent trust.
On 11th June 2001, the following options were granted:
K.F. Lindsay 50,847 shares at 0.59p exercisable between 11th June 2004 and 10th June 2011
349,153 shares at 0.50 p exercisable between 11th June 2002 and 10th June 2011
M.J. Harkin 50,847 shares at 0.59p exercisable between 11th June 2004 and 10th June 2011
199,153 shares at 0.50p exercisable between 11th June 2002 and 10th June 2011
No other director had an interest in the share capital of the Company during the year.
8. Directors and Officers Liability insurance
The Company has purchased and maintained Directors and Officers Liability insurance under the terms of Section 310(3) of the
Companies Act 1985.
9. Payment of suppliers
It is the Company’s payment policy with all suppliers to settle outstanding accounts in accordance with the terms and conditions
agreed when placing orders.
The Company’s trade creditors balance at 30th April 2002 represents 13 days of annual purchases (2001 – 15 days).
10. Donations
The Company made no political donations in the year. Charitable donations totalling £2,065 were made.
11. Auditors
A resolution to re-appoint Deloitte & Touche as auditors and to authorise the directors to fix their remuneration will be proposed 
at the Annual General Meeting.
By order of the Board
MARK J. HARKIN
Secretary
8th July 2002  statement of directors’ responsibilities
16 halladale group plc annual report and accounts 2002
Company law requires the directors to prepare financial statements for each financial period which give a true and fair view of 
the state of affairs of the Company and Group and of the profit or loss of the Group for that period. In preparing those financial
statements, the directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent; and
• state whether applicable accounting standards have been followed subject to any material departures disclosed and 
explained in the financial statements.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time 
the financial position of the Company and Group and to enable them to ensure that the financial statements comply with the
Companies Act 1985. They are also responsible for safeguarding the assets of the Company and Group and hence for taking
reasonable steps for the prevention and detection of fraud and other irregularities. halladale group plc annual report and accounts 2002 17
independent auditors’ report to the members of halladale group plc
We have audited the financial statements of Halladale Group plc for the year ended 30 April 2002 which comprise the profit and
loss account, the balance sheets, the consolidated cash flow statement, the statement of total recognised gains and losses and the
related notes 1 to 25 together with the consolidated reconciliation of movements in shareholders’ funds, statements of movements
in reserves, reconciliation of net cash to movement in net debt and notes to the consolidated cash flow statement. These financial
statements have been prepared under the accounting policies set out therein.
Respective responsibilities of directors and auditors
As described in the statement of directors’ responsibilities, the Company’s directors are responsible for the preparation of the
financial statements in accordance with applicable United Kingdom law and accounting standards. Our responsibility is to audit
the financial statements in accordance with relevant United Kingdom legal and regulatory requirements and auditing standards.
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in
accordance with the Companies Act 1985. We also report if, in our opinion, the directors’ report is not consistent with the financial
statements, if the Company has not kept proper accounting records, if we have not received all the information and explanations
we require for our audit, or if information specified by law regarding directors’ remuneration and transactions with the Company
and other members of the Group is not disclosed.
We read the directors’ report and the other information contained in the annual report for the above year as described in the
contents section and consider the implications for our report if we become aware of any apparent misstatements or material
inconsistencies with the financial statements.
Basis of audit opinion
We conducted our audit in accordance with United Kingdom auditing standards issued by the Auditing Practices Board. An audit
includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also
includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial
statements and of whether the accounting policies are appropriate to the circumstances of the Company and the Group,
consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in
order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material
misstatement, whether caused by fraud or other irregularity or error. In forming our opinion, we also evaluated the overall
adequacy of the presentation of information in the financial statements.
Opinion
In our opinion the financial statements give a true and fair view of the state of affairs of the Company and the Group as at 
30 April 2002 and of the profit of the Group for the year then ended and have been properly prepared in accordance with the
Companies Act 1985.
DELOITTE & TOUCHE
Chartered Accountants
and Registered Auditors
Lomond House
9 George Square
Glasgow G2 1QQ
8th July 2002 18 halladale group plc annual report and accounts 2002
consolidated profit and loss account
Year ended 30th April 2002
2002 2001
Restated
(see Note 2)
Notes ££ ££
Turnover: Group and share of joint ventures 3 22,332,295 19,231,999
Less share of joint ventures’ turnover (90,901) 0
22,241,394 19,231,999
Cost of Sales (16,439,359) (13,832,077)
Gross profit 5,802,035 5,399,922
Administrative expenses (2,099,234) (1,664,211)
Exceptional items 4 0 (90,000)
Total administrative expenses (2,099,234) (1,754,211)
Operating profit 3,702,801 3,645,711
Share of operating profit in joint venture companies 32,263 0
Share of operating profit in associate companies 335,304 90,150
4,070,368 3,735,861
Profit on the sale of an operation 5 59,400 0
Interest receivable and similar income
Group 122,489 49,629
Joint venture companies 4,262 0
126,751 49,629
Interest payable and similar charges 6
Group (2,778,770) (2,865,543)
Joint venture companies (70,152) 0
Associate companies (256,268) (70,900)
(3,105,190) (2,936,443)
Profit on ordinary activities before taxation 7 1,151,329 849,047
Tax on profit on ordinary activities 8 (185,262) (48,780)
Profit on ordinary activities after taxation 966,067 800,267
Minority interest (27,991) 21,198
Profit for the financial year 938,076 821,465
Dividends 9 (223,982) (504,677)
Retained profit for the financial year 714,094 316,788
Earnings per Ordinary Share 10 5.34p 7.66p
Turnover and operating profit in both years relate wholly to continuing activities. halladale group plc annual report and accounts 2002 19
consolidated statement of total recognised gains and losses
Year ended 30th April 2002
2002 2001
Restated
(see Note 2)
£ £
Profit for the year attributable to shareholders 938,076 821,465
Prior year adjustment in respect of FRS 19 (107,873) 0
Revaluation of properties: share of associate companies 92,449 0
Total recognised gains and losses since the last annual report 922,652 821,465
consolidated reconciliation of movements in shareholders’ funds
Year ended 30th April 2002
2002 2001
Restated
(see Note 2)
£ £
Profit for the year attributable to shareholders 938,076 821,465
Dividends on ordinary shares (223,982) 0
Dividends on preference shares 0 (504,677)
714,094 316,788
Issue of share capital (net of expenses) 671,975 1,925,000
Redemption of preference share capital 0 (1,160,000)
Redemption of deferred shares 0 (1)
Net movement to shareholders’ funds 1,386,069 1,081,787
Opening shareholders’ funds (originally £6,915,883 before 
deducting prior year adjustment of £107,873) 6,808,010 5,726,223
8,194,079 6,808,010
statements of movement in reserves
Year ended 30th April 2002
Capital Share Profit
redemption premium and loss
reserve account acount Total
Group ££££
As at 1st May 2001 1,771,875 1,763,311 (822,428) 2,712,758
Prior year adjustment (as Note 2) 0 0 (107,873) (107,873)
1st May 2001 restated 1,771,875 1,763,311 (930,301) 2,604,885
Arising on new issues of shares 0 398,225 0 398,225
Expenses of share issue 0 (50,000) 0 (50,000)
Transfer from profit and loss account 00 714,094 714,094
At 30th April 2002 1,771,875 2,111,536 (216,207) 3,667,204
Capital Share Profit
redemption premium Revaluation and loss
reserve account reserve account Total
Company £££££
As at 1st May 2001 1,771,875 1,763,311 1,830,942 19,332 5,385,460
Prior year adjustment (as Note 2) 0 0 (1,830,942) 0 (1,830,942)
1st May 2001 restated 1,771,875 1,763,311 0 19,332 3,554,518
Arising on new issues of shares 0 398,225 0 0 398,225
Expenses of share issue 0 (50,000) 0 0 (50,000)
Transfer from profit and loss account 000 9,673 9,673
At 30th April 2002 1,771,875 2,111,536 0 29,005 3,912,416 20 halladale group plc annual report and accounts 2002
consolidated balance sheet
Year ended 30th April 2002
2002 2001
Restated
(see Note 2)
Notes ££ ££
Fixed assets
Tangible assets 11 125,532 110,642
Investments 12
Investments in joint venture companies
Share of gross assets 10,935,243 0
Share of gross liabilities (9,958,732) 0
Goodwill 60,470 0
1,036,981 0
Investments in associate companies 598,864 14,450
Other investments 5,314 5,914
1,766,691 131,006
Current assets
Stocks 13 45,120,070 42,087,651
Debtors 14 2,529,121 6,803,065
Cash at bank and in hand 16 1,909,156 3,055,378
49,558,347 51,946,094
Creditors: amounts falling due within one year 15 (9,040,138) (5,677,872)
Net current assets 40,518,209 46,268,222
Total assets less current liabilities 42,284,900 46,399,228
Creditors: amounts falling due after more than one year 16 (33,961,792) (39,396,933)
Provisions for liabilities and charges 18 (81,058) (174,304)
Minority interest (47,971) (19,981)
8,194,079 6,808,010
Capital and reserves
Called up share capital 19 4,526,875 4,203,125
Capital redemption reserve 1,771,875 1,771,875
Share premium account 2,111,536 1,763,311
Profit and loss account (216,207) (930,301)
Total shareholders’ funds 8,194,079 6,808,010
These financial statements were approved by the Board of Directors on 8th July 2002.
David A.S. Lockhart Mark J. Harkin
Director Director halladale group plc annual report and accounts 2002 21
company balance sheet
Year ended 30th April 2002
2002 2001
Restated
(see Note 2)
Notes £ £
Fixed assets
Investments 12 2,527,991 941,070
Current assets
Debtors 14 13,532,842 10,211,461
Cash at bank and in hand 714,418 2,061,981
14,247,260 12,273,442
Creditors: amounts falling due within one year 15 (6,335,960) (3,206,869)
Net current assets 7,911,300 9,066,573
Total assets less current liabilities 10,439,291 10,007,643
Creditors: amounts falling due after more than one year 16 (2,000,000) (2,250,000)
8,439,291 7,757,643
Capital and reserves
Called up share capital 19 4,526,875 4,203,125
Capital redemption reserve 1,771,875 1,771,875
Share premium account 2,111,536 1,763,311
Profit and loss account 29,005 19,332
Total shareholders’ funds 8,439,291 7,757,643
These financial statements were approved by the Board of Directors on 8th July 2002.
David A.S. Lockhart Mark J. Harkin
Director Director 22 halladale group plc annual report and accounts 2002
consolidated cash flow statement
Year ended 30th April 2002
2002 2001
Notes £ £
Net cash inflow/(outflow) from operations i 3,679,047 (7,185,669)
Returns on investments and servicing of finance ii (3,094,167) (2,984,344)
Taxation (123,135) (25,432)
Capital expenditure and financial investment ii (67,374) (19,244)
Acquisitions and disposals ii (1,527,521) (600)
Equity dividends paid (88,176) 0
Cash outflow before use of liquid resources and financing (1,221,326) (10,215,289)
Financing ii 75,104 12,087,223
(Decrease)/increase in cash (1,146,222) 1,871,934
Reconciliation of net cash to movement in net debt (Note iii)
2002 2001
£ £
(Decrease)/increase in cash in the period (1,146,222) 1,871,934
Cash flow from debt and lease financing 596,871 (11,322,224)
Change in net debt resulting from cash flows (549,351) (9,450,290)
New hire purchase agreements 0 0
Change in net debt (549,351) (9,450,290)
Net debt at 1st May 2001 (38,672,292) (29,222,002)
Net debt at 30th April 2002 (39,221,643) (38,672,292) halladale group plc annual report and accounts 2002 23
notes to the consolidated cash flow statement
Year ended 30th April 2002
i Reconciliation of operating profit to net cash outflow from operating activities
2002 2001
£ £
Operating profit 3,702,801 3,645,711
Depreciation 61,905 63,236
Gain on sale of tangible fixed assets (9,421) 0
Increase in stocks (3,032,419) (7,255,015)
Decrease/(increase) in debtors 4,273,944 (4,907,262)
(Decrease)/increase in creditors (1,317,763) 1,267,661
3,679,047 (7,185,669)
ii Gross cash flows
2002 2001
£ £
Returns on investments and servicing of finance
Preference dividend paid 0 (504,677)
Interest received 122,446 50,802
Interest paid (3,216,613) (2,530,469)
(3,094,167) 2,984,344
Capital expenditure and financial investment
Purchase of fixtures, equipment and motor vehicles (87,774) (19,244)
Sale of fixed assets 20,400 0
(67,374) (19,244)
Acquisitions and disposals
Investments in associated companies (1,587,521) (600)
Sale of an operation 60,000 0
(1,527,521) (600)
Financing
Issue of ordinary shares 721,975 2,500,000
Expenses of share issue (50,000) (575,000)
Redemption of preference shares 0 (1,160,000)
Redemption of deferred shares 0 (1)
Loans received 15,734,079 31,313,473
Loans repaid (16,307,861) (19,960,004)
Hire purchase repaid (23,089) (31,245)
75,104 12,087,223
iii Analysis of changes in net debt
At 1 May Other non-cash At 30th April
2001 Cash flows movements 2002
£ £££
Cash in hand and in bank 3,055,378 (1,146,222) 0 1,909,156
Debt due within 1 year (2,318,782) (4,850,225) 0 (7,169,007)
Debt due after 1 year (39,385,799) 5,424,007 0 (33,961,792)
Hire purchase liabilities (23,089) 23,089 0 0
(38,672,292) (549,351) 0 (39,221,643) 24 halladale group plc annual report and accounts 2002
notes to the financial statements
Year ended 30th April 2002
1. Accounting Policies
The financial statements are prepared in accordance with applicable United Kingdom accounting standards. The particular
accounting policies adopted by the directors, which have remained unchanged from the previous year other than as detailed 
in Note 2, are described below.
(a) Accounting convention
These financial statements have been prepared under the historical cost convention, as modified by the revaluation of investment
properties held in associate companies, and in accordance with all applicable accounting standards. 
The Company has applied two new accounting standards, FRS 18 and FRS 19, during the year. The adoption of FRS 19 Deferred
Tax has required a change to the accounting treatment of deferred tax, and the prior year results have been restated accordingly
(see Note 2). The impact of the adoption of FRS 18 Accounting Policies is detailed in Note 2. 
(b) Basis of consolidation
The Group financial statements consolidate the financial statements of the Company and its subsidiaries for the year ended 
30th April 2002 (Note 12). Associated companies and joint ventures are consolidated using the equity method of accounting. 
This is considered appropriate for the Company’s investments due to the level of involvement of management in the running 
of the respective companies. No profit and loss account is presented for Halladale Group plc as provided by S230 of the 
Companies Act 1985. 
(c) Income recognition
Turnover is recognised on the sale of land and buildings at the date of completion of the contract.
(d) Tangible fixed assets
Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost in equal instalments over their
estimated useful lives. The rates of depreciation are as follows:
Furniture and equipment 15% straight line
Computer equipment 25% straight line
Motor vehicles 25% straight line
(e) Investments
Investments in subsidiary companies are stated at cost. Other investments are stated at cost less provision for any permanent
diminution in value.
(f) Stocks
Properties held for re-sale or development are valued at the lower of cost and net realisable value. Net realisable value represents
the estimated sales price less costs estimated to be incurred up to the date of disposal.
(g) Interest capitalisation
For properties in the course of development, interest is capitalised in stocks up until the date of Practical Completion. From that
date, interest is charged against profit.
(h) Goodwill
Goodwill is capitalised in the year in which it arises and amortised over its estimated useful life. The directors regard 10 years 
as a reasonable maximum for the estimated useful life of existing goodwill. Capitalised goodwill on a fair value basis relating to
joint ventures is included within the carrying value of the joint venture.
(i) Deferred taxation
In accordance with FRS 19, deferred tax is provided in full on timing differences which result in an obligation at the balance sheet
date to pay more tax, or a right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current
tax rates and law. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in
periods different from those in which they are included in financial statements. Deferred tax is not provided on timing differences
arising from the revaluation of investment properties where there is no commitment to sell the asset.
Deferred tax assets are recognised to the extent that it is regarded as more likely than not that they will be recovered. Deferred
tax assets and liabilities are not discounted.
(j) Hire purchase
Assets held under hire purchase agreements and the related obligations are recorded in the balance sheet at the fair value of 
the assets at the inception of the agreements. The excess of the payments over the recorded obligations are treated as finance
charges which are charged to the profit and loss account as incurred.
Rental costs under operating leases are charged to the profit and loss account in equal annual amounts over the periods of 
the leases. halladale group plc annual report and accounts 2002 25
notes to the financial statements continued
Year ended 30th April 2002
2. Restatement of comparatives
Deferred tax
The adoption of FRS 19 Deferred Tax has required a change to the accounting treatment of deferred tax and the prior year results
have been restated accordingly as follows:
(a) Balance sheet
Deferred Profit and
tax provision loss account
££
As previously reported at 30 April 2001 66,431 (822,428)
Adoption of FRS 19 at 30 April 2001 107,873 (107,873)
30 April 2001 restated 174,304 (930,301)
Under FRS 19 the Company is required to make full provision for deferred tax in respect of timing differences recognising in total
the potential future tax impact of past transactions. Under SSAP 15 provision for deferred tax was only required if it was expected
that timing differences would reverse in the foreseeable future.
(b) Profit and loss account
Taxation Profit on 
ordinary activities 
after taxation
££
Year ended 30 April 2001 as previously reported 133,780 715,267
Adoption of FRS 19 (85,000) 85,000
Year ended 30 April 2001 restated 48,780 800,267
The adoption of FRS 19 has resulted in increasing the profit and loss account tax charge and reducing profit after tax by £85,000 in
the year ended 30 April 2002.
Revaluation of investments in subsidiary companies
At 30th April 2002 the Company changed its accounting policy relating to the revaluation of investments in subsidiary companies.
Investments were previously stated at valuation based on the net asset value of underlying subsidiaries adjusted for the uplift of
stocks to Open Market Value. As the Group policy is to carry properties held for resale at cost, the directors feel that it is more
appropriate to carry investments on a similar basis. The effect of this is to eliminate the revaluation reserve in Halladale Group plc,
the Company, only and there is no impact on current or prior year results in the consolidated accounts.
Revaluation 
reserve Investments
££
As previously reported at 30th April 2001 1,830,942 2,772,012
Elimination to carry at cost (1,830,942) (1,830,942)
30th April 2001 restated 0 941,070
3. Turnover
Turnover was contributed as follows: 
2002 2001
£ £
Property sales 18,293,000 15,223,176
Rental income 3,378,869 3,744,552
Other income from asset management 569,525 264,271
22,241,394 19,231,999
All turnover was attributable to activities within the United Kingdom in both years.
4. Exceptional items
2002 2001
£ £
Corporate finance fees 0 30,000
Listing expenses 0 60,000
0 90,000
5. Profit on sale of an operation
On 29th September 2001 the Company sold its 66
2
⁄3% investment in Loghar Ltd to Loghar Holdings Ltd, a company in which 
Mr Archie Robertson, a non-executive director of the Group, is a shareholder. All sums due from Loghar Ltd to the Company were
repaid at that time. The consideration for the shares is £60,000 payable in three tranches from April 2002. 26 halladale group plc annual report and accounts 2002
notes to the financial statements continued
Year ended 30th April 2002
6. Interest payable and similar charges
2002 2001
£ £
Bank loans and overdrafts
repayable outwith 5 years 469,224 492,192
repayable within 5 years 2,558,883 2,356,932
3,028,107 2,849,124
Capitalised interest (360,296) (164,595)
2,667,811 2,684,529
Other loans 180,000 176,309
Other interest 1,111 4,705
Share of interest payable by associate companies 256,268 70,900
3,105,190 2,936,443
7. Profit on ordinary activities before taxation
2002 2001
a. Profit on ordinary activities before taxation is after charging: £ £
Auditors remuneration 43,000 24,375
Other fees paid to auditors 0 40,000
Depreciation on owned assets 61,905 36,498
Depreciation on assets subject to hire purchase agreements 0 26,737
b. Staff costs
Salaries 970,826 761,363
Social security costs 90,186 84,728
Other pension costs 106,673 98,112
1,167,685 944,203
c. Directors’ remuneration 515,112 407,000
Directors’ fees 42,000 19,200
Directors’ pension contributions 82,500 78,287
639,612 504,487
d. Remuneration of highest paid director
Emoluments 203,447 162,000
Pension contributions 37,500 46,787
240,947 208,787
e. Average number of employees
Office and administration 19 14
8. Tax on profit on ordinary activities
2002 2001
restated
£ £
United Kingdom Corporation tax
Current at 30% (2001 – 30%) 318,377 119,679
Prior year adjustment (51,403) (14,130)
Total current tax 266,974 105,549
Deferred – origination and reversal of timing differences (93,246) (62,569)
– prior year adjustment 0 0
Share of tax of associate companies 21,622 5,800
Share of tax of joint venture companies (10,088) 0
185,262 48,780
Adoption of FRS 19 has required a change in the method of accounting for deferred tax. Full details of the impact of this on current
and prior year results are given in note 2. halladale group plc annual report and accounts 2002 27
notes to the financial statements continued
Year ended 30th April 2002
8. Tax on profit on ordinary activities (continued)
Reconciliation of tax charge
The standard rate of current tax for the year, based on the UK standard rate of corporation tax is 30% (2001 – 30%). The actual tax
charge for the current and prior years is less than 30% for the reasons set out in the following reconciliation:
2002 2001
£000 £000
Profit before tax 1,151 849
Tax on profit at 30% 345 255
Factors affecting charge:
Profit on sale of properties previously transferred intra-group. This profit has been 
recognised for tax purposes when the properties were transferred intra-group. (83) (35)
Permanent differences (9) (139)
Capital allowances for the year in excess of depreciation 93 63
Rate differences (9) (11)
Unrecognised movement in deferred tax (7) (7)
Share of Associate and Joint Venture Companies tax charge (12) (6)
Current tax charge for the year 318 120
9. Dividends 
2002 2001
£ £
Interim ordinary dividend paid 88,176 0
Final ordinary dividend proposed 135,806 0
Preference dividends paid 0 504,677
223,982 504,677
10. Earnings per share
Earnings per share are calculated on the Group profit after tax and dividend to preference shareholders and minority interest,
divided by the weighted average number of shares in issue during the year, as follows:
2002 2001
Profit Number of shares Pence per share Profit Number of shares Pence per share
Restated Restated
(see Note 2) (see Note 2)
£p£p
Earnings per share 938,076 17,569,116 5.34 316,788 4,140,410 7.66
There are no dilutive potential ordinary shares. Accordingly basic and diluted earnings per share are the same.
The fall in earnings per share in the year is a result of the fact that admission to AIM took place on 27th April 2001, before which
date there were only 4,000,000 ordinary shares in issue. Therefore at 30th April 2001 the average number of ordinary shares was
only 4,140,410 whereas at that date the actual number of shares in issue was 16,812,500.
11. Tangible fixed assets
Furniture & Computer Motor
equipment equipment vehicles Total
Group ££££
Cost
At 1st May 2001 46,201 145,430 106,945 298,576
Additions 2,303 80,574 4,897 87,774
Disposals (25,415) (27,750) (65,500) (118,665)
At 30th April 2002 23,089 198,254 46,342 267,685
Depreciation
At 1st May 2001 (35,385) (79,832) (72,717) (187,934)
Charge for year (4,017) (39,818) (18,070) (61,905)
On disposals 25,415 27,750 54,521 107,686
At 30th April 2002 (13,987) (91,900) (36,266) (142,153)
Net Book Value
At 30th April 2002 9,102 106,354 10,076 125,532
At 30th April 2001 10,816 65,598 34,228 110,642
The net book value of the Group’s fixed assets includes £nil (April 2001 – £52,251) in respect of assets held under hire purchase
agreements. 28 halladale group plc annual report and accounts 2002
notes to the financial statements continued
Year ended 30th April 2002
12. Fixed asset investments
2002 2001
££ ££
Group
Investment in joint ventures
Goodwill 60,470 0
Share of fixed assets 0 0
Share of current assets 10,935,243 0
Share of gross assets 10,935,243 0
Share of liabilities due within one year (6,466,232) 0
Share of liabilities due outwith one year (3,492,500) 0
Share of gross liabilities (9,958,732) 0
1,036,981 0
Investment in associate companies 598,864 14,450
Amcows Nine Limited 5,314 5,314
Loghar Limited 0 600
1,641,159 20,364
2002 2001
Associate Companies £ £
Bowen Square Properties Limited
Investment in shares at cost 1,000 1,000
Share of prior year retained reserves 13,450 0
Share of current year post-tax profit 31,082 13,450
Investment at 30th April 2002 45,532 14,450
The Company holds 10% of the ordinary share capital in Bowen Square Properties and is entitled to an incentivised return once
returns to all shareholders in Bowen Square Properties Ltd exceed 12.5% p.a.
Woodley Finance Limited
Investment in shares at cost 2,000 0
Share of current year post-tax profit 1,786 0
Investment at 30th April 2002 3,786 0
The Company holds 20% of the ordinary share capital in Woodley Finance Limited and is entitled to an incentivised return once
returns to all shareholders in Woodley Finance Limited exceed 10% p.a.
Halladale Haworth (Newton Abbot) Ltd
Investment in shares at cost 346,500 0
Share of current year post-tax profit 27,363 0
Investment at 30th April 2002 373,863 0
The Company holds 15% of the ordinary share capital in Halladale Haworth (Newton Abbot) Ltd and is entitled to an incentivised
return once returns to all shareholders in Halladale Haworth (Newton Abbot) Ltd exceed 12.5% p.a.
Halladale Haworth (Carlisle) Ltd
Investment in shares at cost 178,500 0
Share of current year post tax loss (2,817) 0
Investment at 30th April 2002 175,683 0
The Company holds 15% of the ordinary share capital in Halladale Haworth (Carlisle) Ltd and is entitled to an incentivised return
once returns to all shareholders in Halladale Haworth (Carlisle) Ltd exceed 12.5%.
Total Associate Companies 598,864 14,450 halladale group plc annual report and accounts 2002 29
notes to the financial statements continued
Year ended 30th April 2002
12. Fixed asset investments (continued)
2002 2001
Joint ventures £ £
Halladale Ventures Ltd
Investment in shares at cost 1,050,000 0
Share of current year post-tax loss (22,670) 0
Investment at 30th April 2002 1,027,330 0
The Company holds 50% of the ordinary share capital in Halladale Ventures Ltd.
Osprey Residential (Rutherglen) Ltd 4,046 0
Carter Halladale (Bolton) Ltd 5,605 0
Total 9,651 0
The Company holds 50% of the ordinary share capital in both the companies.
Total Joint Ventures 1,036,981 0
Subsidiary Associate & joint Other
companies venture companies investment Total
Restated Restated 
(see Note 2) (see Note 2)
Company ££££
Ordinary Shares
At 1st May 2001 934,756 1,000 5,314 941,070
Disposal (600) 0 0 (600)
Purchased in year 01,587,521 0 1,587,521
At 30th April 2002 934,156 1,588,521 5,314 2,527,991
The disposal in the year relates to Loghar Limited.
The companies in which the Company’s interest is more than 10% are as follows:
Country of Percentage of
Principal activity registration share capital held
Halladale Haworth (Newton Abbot) Ltd Property trading and development England 15% ordinary shares
Halladale Haworth (Carlisle) Ltd Property trading and development England 15% ordinary shares
Geranium Properties Ltd Property trading and development England 50% ordinary shares
Subsequent to 30th April 2002 the Company acquired the balance of the ordinary share capital to give it a 100% holding.
Osprey Residential (Rutherglen) Ltd Residential developer Scotland 50% ordinary shares 
Bowen Square Properties Ltd Property trading and development England 10% ordinary shares 
Carter Halladale (Bolton) Ltd Property developer England 50% ordinary shares
Halladale Ventures Ltd Property trading and development Scotland 50% ordinary shares
The following companies are wholly owned subsidiaries of Halladale Ventures Ltd:
Halladale (Brentwood) Ltd Property trading and development Scotland
Halladale Ventures (Scotland) Ltd Property trading and development Scotland
Woodley Finance Ltd Property trading and development England 20% ordinary shares
The following company is a wholly owned subsidiary of Woodley Finance Ltd:
Woodley Real Estate Ltd Property trading and development England
L’Etoile Developments Ltd Hotel development and project management England 75% ordinary shares
The following company is a wholly owned subsidiary of L’Etoile Developments Limited:
L’Etoile Properties Ltd Hotel development and project management England 30 halladale group plc annual report and accounts 2002
notes to the financial statements continued
Year ended 30th April 2002
12. Fixed asset investments (continued)
Country of Percentage of
Principal activity registration share capital held
Halladale Property Holdings Ltd Intermediate Holding Company Scotland 100% ordinary shares
The following companies are subsidiaries of Halladale Property Holdings Ltd:
Halladale Developments Ltd Property trading and development,
and provision of management services Scotland 100% ordinary shares
Halladale Properties Ltd Property trading and development Scotland 100% ordinary shares
Halladale Investments Ltd Property trading and development Scotland 100% ordinary shares 
Halladale Investments (London) Ltd Property trading and development England 100% ordinary shares 
Halladale Land Ltd Dormant Scotland 100% ordinary shares 
Finford Management Ltd Property Management Scotland 100% ordinary shares 
Halladale (Queen Street) Ltd Property trading and development Scotland 100% ordinary shares 
Halladale (Woolwich) Ltd Property trading and development Scotland 100% ordinary shares 
Halladale Office (One) Ltd Property trading and development England 100% ordinary shares 
Halladale Retail Ltd Dormant Scotland 100% ordinary shares 
Halladale Homes Ltd Dormant Scotland 100% ordinary shares 
Halladale (Blythswood Square) Ltd Property trading and development Scotland 100% ordinary shares 
Halladale (Dowanhill) Ltd Property trading and development Scotland 100% ordinary shares 
Halladale Properties (London) Ltd Property trading and development England 100% ordinary shares
The following companies are subsidiaries of Halladale Properties (London) Ltd:
Halladale Properties (Cowlairs) Ltd Property trading and development Scotland 100% ordinary shares 
Halladale Properties (Hawkhill) Ltd Property trading and development Scotland 100% ordinary shares 
13. Stocks
Group Company
2002 2001 2002 2001
£ £ £ £
Properties held for resale or development 45,120,070 42,087,651 0 0
Included in these figures is £540,920 (2001 – £180,624) of capitalised interest.
14. Debtors
Group Company
2002 2001 2002 2001
£ £ £ £
Trade debtors 1,242,558 5,915,583 23,400 0
Amounts due by Group companies 0 0 12,571,930 9,829,376
Other debtors 1,169,235 808,627 923,977 369,061
Prepayments 117,328 78,855 13,535 13,024
2,529,121 6,803,065 13,532,842 10,211,461
All debtors are considered to be due within one year.
15. Creditors: amounts falling due within one year
Group Company
2002 2001 2002 2001
£ £ £ £
Bank loans 6,919,007 2,318,782 0 0
Other loans 250,000 0 250,000 0
Hire purchase creditor 0 11,955 0 0
Trade creditor 148,687 862,711 24,457 124,440
Tax payable 312,965 169,127 0 0
Other taxes and social security 231,123 110,259 196,572 28,641
Proposed dividend 135,806 0 135,806 0
Amounts owed to Group undertakings 0 0 5,616,149 2,680,030
Accrued charges and deferred income 1,042,550 2,205,038 112,463 373,758
9,040,138 5,677,872 6,335,447 3,206,869
One bank loan of £1,647,752 bears interest at 4% over base rate and is secured by a first ranking security over an asset held in
stock and a bond and floating charge over all the assets of Halladale Properties Limited. A further bank loan of £5,231,255 bears
interest at 4% over base rate and is secured by a first ranking security over an asset held in stock and a bond and floating charge
over all the assets of Halladale (Queen Street) Limited. The balance, £40,000, is the current tranche of a loan due outwith one year.
Other loans of £250,000 are the current tranche of a loan due outwith one year. halladale group plc annual report and accounts 2002 31
notes to the financial statements continued
Year ended 30th April 2002
16. Creditors: amounts falling due after one year
Group Company
2002 2001 2002 2001
£ £ £ £
Bank loans 31,961,792 36,833,799 0 0
Other loans 2,000,000 2,552,000 2,000,000 2,250,000
Hire purchase creditor 0 11,134 0 0
33,961,792 39,396,933 2,000,000 2,250,000
Of the total bank loans, £4,490,000 (2001 – £4,570,000) bear interest at 10.29% fixed, and are secured by first ranking standard
securities over certain of the properties held in stock and a bond and floating charge over all the assets of Halladale Investments
Limited. Included within cash is £1,160,201 (2001 – £390,000) being sales proceeds from properties secured in connection with 
this loan. As the loan term is fixed, this sum can only be utilised to acquire further properties or redeem part of the loan.
Loans totalling, £21,771,792 are repayable by 2004. Of this balance, £14,771,792 bears interest at 1.85% over LIBOR, and 
the remaining £7,000,000 bears interest at a fixed rate of 7.433% until August 2003. The loans are secured by a first charge over 
a portfolio of properties and debentures over the assets of Halladale Properties (London) Limited and Halladale Investments
(London) Limited.
Of the remaining balance of £5,700,000, £900,000 bears interest at 1.25% over base rate and £4,800,000 bears interest at 
a fixed rate of 7.22% until November 2002. These latter loans are secured over the assets of Halladale Office (One) Limited.
Bank loans are repayable as follows:
Group Company
2002 2001 2002 2001
£ £ £ £
Due within 1-2 years 77,500 25,693,799 0 0
Due within 2-5 years 28,109,292 7,172,500 0 0
Due after 5 years 3,775,000 3,967,500 0 0
31,961,792 36,833,799 0 0
Other loans represent sums advanced by The Throgmorton Trust plc, a shareholder. These sums are unsecured, bear interest at 8%
per annum fixed and are repayable in tranches from 30th June 2002 to 30th June 2006. The tranche of £250,000 due on 30th June
2002 is shown in Creditors: amounts falling due within one year.
17. Financial assets and liabilities
The Group holds financial instruments only to manage the interest rate risk arising from its borrowings. As all transactions are
undertaken in sterling and within the UK, there is no perceived currency risk. No speculative transactions are permitted.
The Group’s borrowings are, other than one loan of £2,250,000, wholly in relation to and secured by properties held as stock.
Accordingly a relatively short term view is required to be considered when reviewing the interest rate risk. This risk is managed by
securing a mixture of fixed and floating rate debt and by the use of interest rate swaps. The actual balance of these measures is
determined by the nature of the asset to which the borrowing relates and is established and reviewed in consultation with the
relevant lender.
The Group has defined financial assets and liabilities as those of a financial nature, being cash and borrowings. Short term
debtors and creditors, taxation and prepayments and accruals are not considered.
2002 2001
£ £
Financial assets
Cash at bank and in hand 1,909,156 3,055,378
Financial liabilities
Bank Loans 38,880,799 39,152,581
Other Loans 2,250,000 2,552,000
41,130,799 41,704,581
Loans repayable in 
One year or less on demand 7,169,007 2,318,782
Within one to two years 827,500 26,245,799
Within two to five years 29,359,292 8,250,000
Over five years 3,775,000 4,890,000
41,130,799 41,704,581 32 halladale group plc annual report and accounts 2002
notes to the financial statements continued
Year ended 30th April 2002
17. Financial assets and liabilities (continued)
The interest profile of the Group’s financial liabilities was:
Weighted Weighted average 
average fixed period for which
Floating Rate Fixed Rate Total interest rate (%) rate is fixed(years) 
30th April 2002
Bank loans 22,550,799 16,330,000 38,880,799 8.16% 4.29
Other loans 02,250,000 2,250,000 8.00% 4.00
22,550,799 18,580,000 41,130,799
30th April 2001
Bank loans 29,782,581 9,370,000 39,152,581 8.72% 7.43
Other loans 302,000 2,250,000 2,552,000 8.00% 5.00
30,084,581 11,620,000 41,704,581
Floating rate loans and cash bear interest based on short term inter-bank rates (mainly 3 month LIBOR) and base rates.
Book Value Fair Value
2002 2001 2002 2001
£ £ £ £
Fair Value of Financial Assets & Liabilities
Cash at bank and in hand 1,909,156 3,055,378 1,909,156 3,055,378
Bank loans (38,880,799) (39,152,571) (39,977,799) (40,270,581)
Other loans (2,250,000) (2,552,000) (2,260,000) (2,552,000)
Interest rate swaps 0 0 0 (94,000)
Fair value has been calculated using a discounted cash flow approach. It is the intention of the Group to repay its bank and other
loans at maturity.
Borrowing Facility
2002 2001
The Group’s various undrawn committed borrowing facilities are £ £
Expiring in:
One year or less, or on demand 869,000 3,500,000
One to two years 0 0
Over two years 0 0
869,000 3,500,000
18. Provisions for liabilities and charges
Deferred tax
£
1st May 2001 previously reported 66,431
Prior year adjustment 107,873
1st May 2001 restated 174,304
Charge to profit and loss account – current year (93,246)
– prior year 0
30th April 2002 81,058
Analysis of the deferred tax balances are as follows:
2002 2001
restated
£ £
Excess of capital allowances over depreciation 81,058 174,304
Other timing differences 0 0
81,058 174,304
The deferred taxation liabilities have been computed at the expected long term rate of 30% (2001 – 30%).
Provision has been made for deferred taxation in accordance with FRS 19. Full details of the impact of this on current and prior
year results are given in Note 2.
The tax charge for Halladale Group plc (the Company) in the year was £513 (2001 – £nil). halladale group plc annual report and accounts 2002 33
notes to the financial statements continued
Year ended 30th April 2002
19. Called up share capital
2002 2001 2002 2001
No. No. £ £
Authorised
Ordinary shares at £0.25 each 96,000,000 96,000,000 24,000,000 24,000,000
Redeemable deferred shares at £1.00 each 1,546,875 1,546,875 1,546,875 1,546,875
97,546,875 97,546,875 25,546,875 25,546,875
Allotted, issued and fully paid
Ordinary shares of £0.25 each 18,107,500 16,812,500 4,526,875 4,203,125
On 26th July 2001 the Company issued 800,000 new ordinary shares of 0.25p each at a price of 59p per share as a share placing.
On 14th January 2002 the Company issued 495,000 new ordinary shares of 0.25p each at a price of 50.5p per share as a share
placing.
20. Revaluation reserve
In accordance with Note 2, the Company no longer revalues its investments in subsidiaries and accordingly there is no revaluation
reserve at 30th April 2002.
21. Contingent liabilities
Halladale Group plc has guaranteed bank loans totalling £14,609,007 (2001 – £13,488,000) to subsidiary companies.
22. Commitments
At 30th April 2002 the Group was committed to making the following payments during the next year under operating leases:
2002 2001
Lease which expire: £ £
Within one year 0 0
Within two to five years 0 0
After five years 27,500 27,500
27,500 27,500
At 30th April 2002 the Group had commitments in connection with a building contract of £2,950,000 of which £2,060,000 is
reflected in these accounts.
23. Pension commitments
Contributions are made payable to the Personal Pension Plans of the Group’s eligible employees on the basis of a fixed percentage
of salary. 
The pension costs charged to the profit and loss account of the Group amounted to £106,673 (2001 – £98,112) for the year.
24. Profit of parent Company
As permitted by Section 230 of the Companies Act 1985, the profit and loss account of the Company is not presented as part of
these financial statements. The parent Company’s profit after tax for the year amounted to £233,655 (2001 – £520,595).
25. Related party transactions
At the year end, Halladale Group plc had loans due from its associate company as follows:
Loan % Share Directors
Bowen Square Properties Limited £299,000 10 K.F. Lindsay
M.J. Harkin
Woodley Real Estate Limited £392,000 20 K.F. Lindsay
M.J. Harkin
Osprey Residential (Rutherglen) Limited £75,000 50 K.F. Lindsay
M.J. Harkin
Carter Halladale (Bolton) Limited £65,000 50 M.J. Harkin
At 30th April 2001 the only loan due from associate companies was £299,000 from Bowen Square Properties Ltd. Halladale Group
plc also has management contracts in respect of property owned by certain of these companies. Amounts invoiced during the year
under the contracts were as shown on the following page: 34 halladale group plc annual report and accounts 2002
notes to the financial statements continued
Year ended 30th April 2002
25. Related party transactions (continued)
Outstanding
2002 2001 at Year End
£ ££
Bowen Square Properties Limited 56,500 52,903 0
Halladale Haworth (Newton Abbot) Limited &
Halladale Haworth (Carlisle) Limited 71,071 0 23,400
Woodley Real Estate Limited 57,500 00
The Group, through a subsidiary company, also invoiced £91,486 of management fees to associate companies in the year. At the
year end amounts due were £16,500.
During the year, Halladale Group plc sold its investment in Loghar Limited to Loghar Holdings Limited, a company in which 
Mr Robertson is a shareholder and a director. Of the £60,000 paid by Loghar Holdings Limited, £20,000 was received by 30th April
2002 and the balance is receivable in two equal tranches on 30th April 2003 and 30th April 2004.
Halladale Group plc has granted a guarantee in favour of Dunbar Bank plc in connection with borrowings by Osprey Residential
(Rutherglen) Limited, a company in which M.J. Harkin and K.F. Lindsay are directors. At 30th April 2002 the sum outstanding to
Dunbar Bank was £78,000.
Halladale Group plc has also guaranteed a tranche of loan stock from Bank of Scotland to Halladale Ventures Ltd, a company 
in which D.A.S. Lockhart and K.F. Lindsay are directors. At 30th April 2002 the sum outstanding in this regard was £1,540,000. halladale group plc annual report and accounts 2002 35
pro forma unaudited consolidated balance sheet
2002 2001
Restated
(see Note 2)
£ £
Fixed assets
Tangible assets 125,532 110,642
Investments 2,184,606 20,364
2,310,138 131,006
Current assets
Stocks (stated at open market value) 50,436,050 46,810,036
Debtors 2,529,121 6,803,065
Cash at bank and in hand 1,909,156 3,055,378
54,874,327 56,668,479
Creditors: amounts falling due within one year (9,040,138) (5,677,872)
Net current assets 45,834,189 50,990,607
Total assets less current liabilities 48,144,327 51,121,613
Creditors: amounts falling due after more than one year (33,961,792) (39,396,933)
Provisions for liabilities and charges (81,058) (174,558)
Minority interest (47,971) (19,981)
14,053,506 11,530,141
Capital and reserves
Called up share capital 4,526,875 4,203,125
Capital redemption reserve 1,771,875 1,771,875
Share premium account 2,111,536 1,763,311
Revaluation reserve 4,869,427 3,732,385
Profit and loss account 773,793 59,445
Total shareholders’ funds 14,053,506 11,530,141
The unaudited proforma balance sheet was prepared using the applicable accounting standards and contains such adjustments 
as the directors consider appropriate to reflect the impact of open market valuations arising from an independent revaluation of
properties held for resale including the appropriate share of these properties held in joint venture and associate companies as 
at 30th April 2002. This is the only amendment to net assets. 36 halladale group plc annual report and accounts 2002
financial diary
Year end 30th April 2002
Year end results announced 9th July 2002
Annual Report published 16th August 2002
Annual General Meeting 10th September 2002
Designed and produced by Tayburn Corporate our
portfolio
                                     Halladale’s expanding portfolio
comprises 37 properties across
the United Kingdom in the retail,
office and industrial sectors.
 industrial
Hawkhill Industrial Estate, Dundee
Cowlairs Industrial, Glasgow
Pontefract Road, Knottingley, Yorkshire
 offices
The Exchange, Birmingham
Walpole House, Ealing
Herschell Street, Glasgow
Queens Road, Reading
Dolphin Bridge House, Uxbridge
MVA House, Woking
 retail
Sarum Gate, Sarum Hill, Basingstoke
6 Adare Street, Bridgend
28 High Street, Dalkeith
57/59 High Street, Dalkeith
41 Bridge Street, Evesham
Lint Riggs/High Street, Falkirk
126/132 Fleet Road, Fleet
49 Bath Street & 87 Renfield Street, Glasgow
Queen Street/Miller Street, Glasgow
Cambridge Street, Glasgow
Church Street & Baron Taylors Street,
Inverness
68/72 Week Street & Union Hse, Maidstone
4 St Mirren Street, Paisley
The Cross, Paisley
26/32 High Street, Ramsgate
Friar Street/West Street, Reading
71 High Street, Scunthorpe
Hanover House, Southampton
Hanover Buildings, Southampton
 shopping centres
Main Street Shopping Centre, Barrhead
Chapel High Shopping Centre, 
Brentwood, Essex
Market Hall & Market Arcade, Carlisle
Bowen Square, Daventry
Calderwood Shopping Centre, East Kilbride
Bargarran Shopping Centre, Erskine
The Mall, Craigshill, Livingston
Market Walk, Newton Abbot
Crockhamwell Road, Woodley, Reading halladale group plc
93 west george street
glasgow 
g2 1pb
telephone 0141 204 4633
facsimile 0141 204 4655
email: all @ halladale.co.uk
web: www.halladale.co.uk
registered in scotland no 134255