DJAN.L Regulatory News (DJAN)

30 November 2011------------------------------------------------------------------------------------------------------

DAEJAN HOLDINGS PLC

INTERIM RESULTS ANNOUNCEMENT for the half year ended 30 September 2011

The Board is pleased to present the Interim Statement for the half year ended 30 September 2011.

·; The loss before tax for the period was £0.1m (2010: £29.3 profit) after accounting for net valuation losses on investment properties and financial instruments of £10.5m (2010: £15.7m gain). There was an increase of 3% in gross rental income compared to the equivalent period last year. However the impact of resolving matters with Southern Cross Healthcare Group PLC (see below) both in terms of lost rent and costs incurred combined with some increases in other operating expenses resulted in a reduction in net profit before tax. The underlying net profit before tax, ie excluding net valuation movements, was £10.4m (2010: £13.6m).

·; As previously reported, the Group owns 9 care homes which had been leased to Southern Cross. Since 31 March 2011, following the collapse of Southern Cross, these leases have been terminated and new leases entered into with, an alternative established operator of residential care homes. These arrangements have ensured continuity of care for residents and will generate a rental return for the Group linked to operating performance. In the valuation at 30 September 2011 these properties have been written down by £11.5m to £19.4m.

·; The property portfolio has been valued by the Directors based on the recommendations of the Group's external advisers. The net valuation loss of £0.8m (2010: £20.3m gain) reflects the reduction in the value of the portfolio of care homes of £11.5m. The remainder of the UK portfolio and the USA portfolio produced aggregate valuation gains totalling £10.7m with London residential properties performing well.

·; The redevelopment of Africa House, WC2 to provide 130,000 square feet of prime office space is well underway and on course for completion in early 2013.

·; An interim dividend of 25p per share will be paid on 2 March 2012 to shareholders on the register on 3 February 2012.

·; The principal risk factors affecting the remainder of the financial year continue to be exposure to movements in the valuation of the Group's investment properties and financial instruments and to any increase in voids or bad debts which may arise in the event of further deterioration in the current economic circumstances.

·; Our business is financially sound; we have a strong balance sheet with gearing of only 16.4% (2010: 16.2%). Sluggish economic growth in both the UK and the USA combined with the risk of further financial shocks from the Eurozone provide a difficult background in which to operate. No business can be immune from these negative influences. Our prudent, long term business approach is more than ever appropriate in today's conditions. We remain confident for the future.

B S E Freshwater

Chairman

30 November 2011

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Notes to the Consolidated Financial Statements for the six months ended 30 September 2011

Basis of preparation 

This interim financial information has been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting, applying the accounting policies and presentation that were applied in the preparation of the Company's published consolidated financial statements for the year ended 31 March 2011. As required by the Listing Rules of the Financial Services Authority, the directors have considered the result of the endorsement by the EU of new or changed International Financial Reporting Standards that are applicable or available for early adoption in the preparation of the Company's next consolidated financial statements for the year ending 31 March 2012 and concluded that they have no material effect on either the current or prior periods.

The interim financial information in this statement has not been audited or reviewed by auditors pursuant to the Auditing Practices Board guidance on review of interim financial information and does not constitute statutory accounts, as defined in section 435 of the Companies Act 2006. The auditors' report on the statutory accounts for the year ended 31 March 2011 was unqualified and did not contain a statement under section 498 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2011 have been delivered to the Registrar of Companies. The interim financial statements were approved by the Board of Directors on 29 November 2011. The preparation of the interim financial information requires management to make assumptions and estimates about future events which are uncertain, the actual outcome of which may result in a materially different outcome from that anticipated.

In prior periods, the adjustment required to re-measure fixed rate loans and borrowings at fair value at each balance sheet date has been included within Fair Value Gains and Losses on Financial Instruments in the Income Statement and as part of Derivative Financial Instruments within Trade and Other Payables in the Balance Sheet. In order to show the carrying value of fixed rate loans and borrowings more clearly, the required adjustment is now shown separately in the Income Statement and within the carrying value of the fixed rate component of Loans and Borrowings in the Balance Sheet. Comparative amounts have been reclassified accordingly by transferring an amount of £18.5 million from Derivative Financial Instruments to Loans and Borrowings, £3.1 million against Current Liabilities and £15.4 million against Non-current Liabilities.

Segmental Analysis

Dividends 

No dividends were paid in the six months ended 30 September 2011 (six months ended 30 September 2010: £Nil).

Investment Properties

The Directors have estimated the value of the investment properties at 30 September 2011 after consultation with the Group's advisers. A full valuation of the Group's properties will be carried out by independent professional valuers at 31 March 2012.

Related Party Transactions

Day-to-day management of the Group's properties in the UK is mainly carried out by Highdorn Co. Limited and by Freshwater Property Management Limited. Mr BSE Freshwater and Mr SI Freshwater are directors of both companies. They have no beneficial interest in the share capital of Highdorn Co. Limited. Mr BSE Freshwater, Mr SI Freshwater and Mr D Davis are directors of the parent company of Freshwater Property Management Limited but have no beneficial interest in either company. Mr RE Freshwater has a beneficial interest in a trust holding interests in shares in Highdorn Co. Limited.

In their capacity as managing agents, Highdorn Co. Limited and Freshwater Property Management Limited collect rents and incur direct property expenses on behalf of the Group. At 30 September 2011, the aggregate net amounts due from the Group to Highdorn Co. Limited and Freshwater Property Management Limited in relation to such agency receipts and payments was £2.0 million (2010: Due to the Group £2.0 million). These amounts are not secured and are payable on demand. No guarantees have been given or received and the amounts are settled in cash.

The amounts paid by the Group during the period for the provision of property and other management services by Highdorn Co. Limited and Freshwater Property Management Limited, not included above, were £1.9 million (six months ended 30 September 2010: £1.6 million).

The board considers that the directors are the key management personnel of the group and their remuneration is disclosed in the Daejan Holdings PLC Annual Report for 31 March 2011.

Statement of Directors' Responsibilities

The Directors confirm that this condensed set of financial statements has been prepared in accordance with IAS 34 as adopted by the European Union, and that the interim management report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8.

The Directors of Daejan Holdings PLC are listed in the Daejan Holdings PLC Annual Report for 31 March 2011. A list of current directors is maintained on the Daejan Holdings PLC website www.daejanholdings.com.

B S E Freshwater

Chairman

30 November 2011