FRAS Frasers Group Plc

Chairman’s Statement

During the first half of 2015 two shop properties were sold at Scarborough and one at York. A gain was achieved on these disposals and this is reflected in the exceptional item appearing in the accounts of £159,620.

The turnover for the first half of 2015 is less than the corresponding period last year as a result of the property disposals in the period and the interest charge in the period is also reduced as a result of the company having repaid in full its outstanding loan with RBS.

The Company continues to manage the remaining shop property at Scarborough which is held for future sale.

I wish to thank David Duffield our former Chairman who retired from office on 31st July 2015 for his wise counsel over the years and particularly for his guidance and advice in connection with the RBS Swap Claim.

The outcome of the outstanding claims against RBS for consequential loss and additional tax continues and is taking longer than expected to be settled.

On 29^th July 2015 George Green one of our longest serving directors retired from office and I wish to thank him for his service to the company over the years.

All the resolutions proposed at the annual general meeting were passed and trading with Crest Settlement has now commenced following the appointment of Avenir Registrars.

I will be serving as Interim Chairman pending the appointment of a new Chairman whose mandate will be to execute the strategy to focus on residential property.

R.A.Shane

Interim Chairman

26^th August 2015

Unaudited profit and loss account

for the period from 1^st January 2015 to 30^th June 2015

Unaudited Balance sheet

at 30^th June 2015