RNS Number:9634S
Savoy Asset Management PLC
08 December 2003


SAVOY ASSET MANAGEMENT PLC
INTERIM REPORT
SIX MONTHS ENDED 30 SEPTEMBER 2003


SAVOY ASSET MANAGEMENT PLC

CHAIRMAN'S STATEMENT

I am pleased to report an encouraging start to the current financial year. The
Group have converted an operating loss, before goodwill and amortisation, of
#98,763 for the six months ended 30 September 2002 to a modest profit of #2,502
for the comparable period in the current year. This useful improvement reflects
a combination of better market conditions and the addition of new teams in our
London office from the end of July 2003. The results only include the first two
months contribution from the new teams and when I next report the full impact
will be reflected.

As I anticipated in my Chairman's statement for the year ended 31 March 2003, we
have recently recruited a team of ten fund managers and brokers to our London
office, together with their support staff of fifteen. I am pleased to report
that the new teams have been successfully assimilated and have brought new funds
to the Group of over #425m. The initial costs associated with acquiring and
integrating these teams have been charged to the profit and loss account as
exceptional items. The new personnel have integrated exceptionally well with the
existing staff in London and this expansion gives us the critical mass to
underpin the further growth and development of the Group. Their first two months
with Savoy made a positive contribution to the results and I am pleased to
report that the Group continues to trade at a higher level of profitability than
the interim period I am reporting on. I would like to thank all the new members
of staff for their contribution and also our existing staff for their hard work
in preparing the infrastructure to absorb the new teams in such an efficient and
effective manner. The new teams have brought to the Group a range of
complementary skills and also expertise in a number of new business areas, which
will provide opportunities for the Group and its client base.

More favourable market conditions have also contributed to the improvement in
our results and although the recovery is a little fragile, there are encouraging
signs of returning investor confidence. Our regional offices have all reported
profits in this interim period and although there is no certainty that the
recovery in the markets will continue at the same rate, the cost control
measures which we have implemented at all locations should ensure that we are
better protected against any significant downturn in markets.

I am pleased to report that funds under management in the Group rose to #1.1bn
as at 30 September 2003, compared to #568m at the time of my Chairman's
statement in late July when results for the last financial year were released.
It is encouraging that in addition to the new funds from the recent recruits in
London, we continue to receive new mandates as well as additional funds from
existing clients.

SAVOY ASSET MANAGEMENT PLC

During the period we also completed the acquisition of Barnes & Hedgecock
Limited, an independent financial adviser based near Bournemouth. This
acquisition complements our existing independent financial advisory activities
in the West Country and the business of Barnes & Hedgecock is in the process of
being combined with that of Savoy Financial Planning Limited to enhance the
Savoy brand name in that area. This acquisition gives us access to the still
growing retirement market in Bournemouth and has been highly successful.

As demonstrated above, the last six months have been both a period of recovery
and expansion for the Group. We remain committed to growth by the addition of
like minded stockbrokers and investment managers who are attracted by our
ability to offer a domestic and international investment capability, addressed
to the individual personal circumstances of each client. There is still
considerable consolidation in the sector, with a move towards larger groups and
I have no doubt that this will produce opportunities for us to recruit teams and
individuals as well as to increase our client base.

It is clear that consolidation in the sector means that it is increasingly
difficult for private clients to find a truly personal service from the larger
institutions. Recent developments within the Group allow us to go forward and do
this with increased confidence.

During the period, the Group introduced an Enterprise Management Incentive
Scheme that has and will, enable us to issue tax efficient share option
incentives to management and staff. By equity participation, your Board believes
the incentives will be in place to motivate all employees to grow the
profitability of the Group.

Despite incurring a significant outflow of cash reserves during the period to
acquire the new teams, the balance sheet of the Group remains strong with net
tangible assets of #3.1m including cash reserves of #2.2m, representing a
significant surplus to regulatory requirements. As ever the executives and staff
remain loyal and committed to the growth of the Group. I have every confidence
in their abilities and would like to thank them for their considerable efforts
over the past few years through difficult trading conditions.


KENNETH CLARKE
Chairman
8 December 2003



SAVOY ASSET MANAGEMENT PLC

CONSOLIDATED PROFIT AND
LOSS ACCOUNT
For the six months ended 30 September 2003

                                                  Six months             Six months                   Year
                                                       Ended                  ended                  Ended
                                                30 September           30 September               31 March
                                                        2003                   2002                   2003
                                                   unaudited              unaudited                Audited
                                                           #                      #                      #
Turnover                                           2,508,534              1,834,296              3,590,050
Cost of sales                                      (232,913)              (116,437)              (232,489)
Gross profit                                       2,275,621              1,717,859              3,357,561

Amortisation of goodwill                            (12,504)               (21,282)               (24,096)
Other operating expenses                         (2,313,824)            (1,885,956)            (3,797,077)
Operating loss                                      (50,707)              (189,379)              (463,612)
Investment income                                     40,705                 69,334                126,773
Operating loss after investment
income                                              (10,002)              (120,045)              (336,839)
Exceptional items                                  (727,768)            (2,013,039)                (5,176)
Loss on ordinary activities before
taxation)                                          (737,770)            (2,133,084)              (342,015)
Tax on loss on ordinary activities                         -                      -                    328
Loss on ordinary activities after
taxation                                           (737,770)            (2,133,084)              (341,687)
Dividends paid and proposed                                -                      -                      -
Loss retained for the financial
period                                             (737,770)            (2,133,084)              (341,687)
Profit and loss account brought
forward                                              145,730              (414,628)              (414,628)
Capital reconstruction                                     -              3,010,874                870,865
Exchange gains                                             -                      -                 31,180
Profit and loss account carried
forward                                            (592,040)                463,162                145,730

Basic earnings per share:
Before goodwill amortisation and
exceptional items                                      0.03p                (1.17)p                (3.70)p
After goodwill amortisation and
exceptional items                                    (8.54)p               (25.37)p                (4.10)p
Fully diluted earnings per share:
Before goodwill amortisation and
exceptional items                                      0.03p                (1.09)p                (3.50)p
After goodwill amortisation and
exceptional items                                    (7.49)p               (23.55)p                (3.80)p


All amounts relate to continuing activities

There were no recognised gains or losses other than the loss for the period.






SAVOY ASSET MANAGEMENT PLC


CONSOLIDATED BALANCE SHEET
As at 30 September 2003
                                             30 September             30 September                 31 March
                                                     2003                     2002                     2003
                                                unaudited                unaudited                  audited
                                                        #                        #                        #
Fixed assets
Tangible assets                                   414,423                  201,913                  197,560
Intangible assets                                 379,862                    7,494                    4,680
Investments                                       146,118                  170,993                  146,118
                                                  940,403                  380,400                  348,358
Current assets
Debtors                                         1,476,153                  956,559                1,041,576
Investments                                        79,979                   61,701                   77,798
Cash at bank                                    2,261,622                3,545,421                3,275,245
                                                3,817,754                4,563,681                4,394,619
Creditors: Amounts falling due
within one year                                (1,276,900)                (553,670)                (669,998)
Net current assets                              2,540,854                4,010,011                3,724,621
Net assets                                      3,481,257                4,390,411                4,072,979
Capital and reserves
Share capital                                     896,534                  840,857                  840,856
Share premium                                   3,176,763                3,086,392                3,086,393
Profit and loss account                         (592,040)                  463,162                  145,730
Equity shareholders' funds                      3,481,257                4,390,411                4,072,979



SAVOY ASSET MANAGEMENT PLC

CONSOLIDATED CASH FLOW STATEMENT


For the six months ended 30 September 2003
                                               Six months               Six months                     Year
                                                    ended                    ended                    ended
                                             30 September             30 September                 31 March
                                                     2003                     2002                     2003
                                                unaudited                unaudited                  audited
                                                        #                        #                        #
Net cash outflow from operating
activities                                      (548,445)                (317,947)                (638,520)
Returns on investments and
servicing of finance
Interest received                                  40,705                   69,334                  126,773
Taxation
Corporation tax refunded                                -                        -                      290
Capital expenditure and
financial
Investments
Purchase of tangible fixed                      (264,243)                  (9,029)                 (46,166)
assets
Purchase of subsidiary                          (413,166)                        -                        -
Net assets acquired on purchase
of
subsidiary                                         25,478                        -                        -
Purchase of Investments                                 -                (144,743)                (146,118)
                                                (651,931)                (153,772)                (192,284)
Exchange adjustment                                     -                        -                   31,180
Financing
Issue of ordinary shares                          146,048                    1,000                    1,000
Decrease in cash in the period                (1,013,623)                (401,385)                (671,561)
Reconciliation of net cash flow
to
movement in net funds
Decrease in cash balances in the
period                                        (1,013,623)                (401,385)                (671,561)



SAVOY ASSET MANAGEMENT PLC

NOTES TO THE INTERIM RESULTS

1 The unaudited results for the six months ended 30 September 2003 have been
prepared applying the accounting policies adopted for the audited accounts for
the year ended 31 March 2003.

2 The exceptional items comprise principally the costs of recruiting and
retaining the services of new consultants and brokers and the rental cost of a
property no longer used by the Group.

3 The movement in shareholders' funds in the period was as follows:

                                                                         #

Balance at 1 April 2003                                          4,072,979
Issue of shares under option schemes                                46,048
Issue of shares for acquisition of subsidiary                      100,000
Loss for the period                                               (737,770)
Balance at 30 September 2003                                     3,481,257

4 No interim dividend has been declared (2002 - nil).

5 The basic earnings per share is based on the loss after taxation of #737,770
(2002: #2,133,084) and the weighted average number of ordinary shares in issue
during the period of 8,643,671 (2002: 8,408,560)

The fully diluted earnings per share is based on the loss after taxation of
#737,770 (2002: #2,133,084) and the weighted average number of ordinary shares
in issue during the period, assuming full exercise of all share options granted,
of 9,846,253 (2002: 9,055,818)

6 During the period the company acquired the entire issued share capital of
Barnes & Hedgecock Limited for cash consideration of #285,000 payable over an
eighteen month period and the issue of 116,279 ordinary 10p shares in Savoy
Asset Management plc. Further consideration is payable if certain income and
profit targets are achieved over the three year period from completion of the
transaction.

Net assets at date of acquisition:

                                                  Book and fair value
                                                                    #

Fixed Assets                                                   11,466
Debtors                                                        11,227
Cash                                                           31,334
Creditors                                                     (28,549)
Net Assets                                                     25,478
Goodwill arising on acquisition                               387,688
                                                              413,166

Discharged by:
Fair value of shares issued                                   100,000
Cash consideration                                            285,000
Acquisition costs                                              28,166
                                                              413,166

SAVOY ASSET MANAGEMENT PLC

The audited turnover and profit before tax for Barnes & Hedgecock Limited for
the year ended 31 December 2002 was #194,202 and #7,843 respectively and for the
two month period since acquisition Barnes & Hedgecock Limited has contributed
turnover of #45,982 and profit before tax of #17,990 to the Group's results.

7 The financial information set out in this report is unaudited and does not
comprise statutory accounts for the purposes of Section 240 of the Companies Act
1985 ('Act')

8 The figures in respect of the year ended 31 March 2003 have been taken from
the full accounts for the year ended on that date on which the auditors reported
without qualification and which contained no statement under Section 237 (2) or
(3) of the Act and which have been delivered to the Registrar of Companies.

9 A copy of this statement is being posted to all shareholders and will also be
available from the Company's registered office at Lilly House, 13 Hanover
Square, London W1S 1HN.


SAVOY ASSET MANAGEMENT PLC

PRINCIPAL SUBSIDIARIES

SAVOY INVESTMENT MANAGEMENT

2/6 Oldknow Road
Marple, Stockport
SK6 7BX
Tel: 0161 449 0456
Fax: 0161 449 0082

Lilly House
13 Hanover Square
LondonW1S 1HN
Tel: 020 7659 8000
Fax: 020 7659 8001
Email: savoy@savoyassetmgt.com

The Knapp
Powerstock
Bridport
Dorset, DT6 3TF
Tel: 01308 485611
Fax: 01308 485607

SAVOY FINANCIAL PLANNING
Butt of Sherry
The Commons
Shaftesbury SP7 8JU
Tel: 01747 853380
Fax: 01747 855131
Email: mail@savoyfp.co.uk

34 Vicarage Road
Verwood
Dorset BH31 7AQ
Tel: 01202 823306
Fax: 01202 813196
Email: admin@barnesifa.co.uk


SAVOY ASSET MANAGEMENT PLC
Lilly House, 13 Hanover Square, LondonW1S 1HN
Telephone: 020 7659 8000 Fax: 020 7659 8001 Doc Ex DX 44606 Mayfair


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

IR KELFBXLBBFBQ