Puma Hotels plc - Interim Results

substantially enhances the value of the 107 bedroom lodge planning permission
and the Company continues to seek value enhancing planning permissions elsewhere
in the portfolio."


Press Enquiries:

Puma Hotels plc
Howard Shore    020 7468 7911
Peter Procopis     020 7468 7913


 Notes to Editors
1.Puma Hotels plc acquired 13 Paramount branded hotels in July 2004.  Following
further acquisitions it now owns 20 four-star hotels across Scotland, Northern
England, Central England, Southern England and Wales. See the table below for a
full list of hotels.
2. The hotels offer extensive banqueting, conference and leisure facilities and
many of them have architectural and historical significance.  The Group has
2,872 bedrooms and around 20,000 square metres of conference and meeting
space and offers extensive facilities to both corporate and leisure guests.
3. From July 2004 until 6 September 2007, PHP owned and operated each of the
20 hotels.  From 6 September 2007 PHP granted 45 year FRI leases for each
hotel to Barceló Group, a leading Spanish operator with substantial global
operations.  Since 1 January 2008 all 20 hotels carry the Barceló brand.
4. PHP's hotel locations are shown below:

No. of meeting Health & Location
CENTRAL ENGLAND Bedrooms rooms Leisure

Barceló Billesley 12 Y
Manor Hotel, Nr.
1 Stratford* 72 Country

Barceló Cheltenham 11 Y
2 Park Hotel 152 Country

3 Barceló Daventry Hotel 155 8 Y Country

Barceló Hinckley 21 Y
4 Island Hotel 362 Country

5 Barceló Oxford Hotel 168 25 Y City

Barceló  Buxton Palace 9 Y
6 Hotel 122 Country

Barceló Walton Hall 20 Y
Hotel & Spa,
7 Warwickshire* + 202 Country

Barceló The Lygon 8 Y
8 Arms, Cotswolds* 77 Country



NORTHERN ENGLAND

Barceló  Blackpool 15 Y
9 Imperial Hotel 180 Coast

Barceló  Harrogate 10 Y
10 Majestic Hotel 167 City

Barceló Redworth Hall 10 Y
11 Hotel, Co. Durham* 143 Country

12 Barceló Shrigley Hall 148 12 Y Country
Hotel, Cheshire*



SCOTLAND

Barceló  Edinburgh 10 Y
13 Carlton Hotel 189 City

Barceló  Troon Marine 4 Y
14 Hotel* 89 Coast

Barceló Stirling 7 Y
15 Highland Hotel 96 City



SOUTHERN ENGLAND

Barceló Combe Grove 5 Y
16 Manor, Bath* 42 Country

Barceló Basingstoke 10 Y
17 Country Hotel 100 Country

Barceló  Torquay 7 Y
18 Imperial Hotel 152 Coast

Barceló  Brighton Old 11 N
19 Ship Hotel 154 Coast



WALES

Barceló  Cardiff Angel 7 N
20 Hotel 102 City



  Total        2,872 222

*  Barceló Premium Hotels
+ Operationally, Barceló split this property into a Barceló Premium Hotel,
Barceló Walton Hall  and a Barceló Hotel, Barceló Walton Hotel

Chairman's Statement


Introduction

Since the granting of leases to Barceló Group ("Barceló") in September 2007,
Puma Hotels plc ("PHP", the "Company" or the "Group") trades as an owner of
hotel property receiving income from property rents.  The Company's hotels are
let on 45 year FRI leases to Barceló, a leading Spanish hospitality group with
substantial global hotel and other leisure related operations.


Financial Performance

Turnover for the six months ended 30 June 2010 of £14.9m represents rent
received from Barceló (2009H1: £14.9m). The operating profit of £12.93m (2009H1:
£12.97m) is in line with the prior year.

After deducting bank interest payable on its senior facility, the Group showed a
substantial increase in net profit before Shareholder Finance Costs to £2.9m
(2009H1: £0.9m).  The Shareholder Finance Costs comprise £2m of payments to
bondholders of the Company's deep discounted bonds and the first payment of
interest of £0.7m relating to the convertible preference shares issued in June
2009.  After deducting the Shareholder Finance Costs, the profit on ordinary
activities for the period was £0.1m (2009H1: loss of £1.1m) a net turnaround of
£1.2m.

Net bank interest payable was 16% lower against the same period in the prior
year.  Commencing on 1 January 2010 the new interest rate SWAPs executed in
April 2009, are in operation and have reduced the bank interest cost for the six
month period to 30 June 2010 by £2m (2010H1:£10.1m vs 2009H1:£12.1m).



The tangible asset values on the balance sheet of PHP reflect the lease
arrangements with Barceló.  These leases place full repairing and insuring
("FRI") obligations on the tenant and provide guaranteed rental growth over the
first four years; this is inflation-indexed from September 2011 and can also
increase if hotel EBITDA (as defined in the agreement with Barceló) performs
well.

In addition to the tenant's FRI obligation, the agreement with Barceló also
provides for a £10m capital expenditure contribution to be made by PHP in the
first 10 years of the leases.  This contribution is to be spent on structural
and mechanical improvements by Barceló.  As at 23 September 2010, PHP has
contributed £5.1m of which Barceló have spent £4.2m.

Since inception of the leases, Barceló has also spent a significant amount of
their own funds on capital improvements and on repairs and maintenance
expenditure.

For the purpose of preparing its 30 June 2010 interim financial statements, PHP
has used the external professional valuation completed by the Company's valuers
Colliers Robert Barry on 5 March 2010 for the purposes of the 31 December 2009
year end accounts.    This valuation of each property in the portfolio, which
excludes land held for non-hotel development, is at £460.2m.  The Board of PHP
considers that the current value of the land held for development amounts to a
further £3.0m (including the Combe Gatehouse - refer next page).


Development Plans

PHP continues on its strategy to add value by securing additional planning
permissions.  PHP has in the past successfully exploited the potential for gains
in value through developing the portfolio by adding extra rooms, conference and
other facilities at existing hotels.   As previously reported three significant
planning consents were secured in February 2010.  The current status of these
planning consents is as follows:

1. Harrogate Lodge Hotel:  Granted by Harrogate Borough Council ("HBC") this
planning consent allows for the development of a 107 bedroom lodge hotel on
land that is part of the development assets excluded from the Barceló lease.
  On 23 July 2010, the Group signed an agreement with HBC which provides,
inter alia, for the proposed lodge hotel to be directly linked into a new
3,400 sq m exhibition facility which is being built as part of the first
phase in the redevelopment of the Harrogate International Centre (HIC).  In
addition, the Group will have the benefit of 20 car parking spaces on a 99
year lease (initial term of 25 years) from HBC.   In return, the Group
transferred to HBC a 103 square metre parcel of land to be used by HBC in
the expansion of the HIC.


      We continue to progress our discussions with branded hotel companies in
relation to this development opportunity.

      As part of our discussions with the HIC, their building plans also provide
improved access into the HIC from the four star 170 bedroom Barceló Majestic
Hotel, for which a planning consent already exists to extend the hotel by a
further 85 bedrooms.

2. Brighton Old Ship Hotel:  Planning consent has been secured for a 3,000 sq m
development at this waterfront, city centre hotel which will add 42 bedrooms
(a 27% increase to existing room stock), a 248 sq m conference facility and
124 sq m of bar and restaurant facilities.


3. Gatehouse at Combe Grove Manor:  Planning and listed building consent
obtained for a 30% extension of the internal space at this attractive
residential property that is part of the development assets excluded from
the Barceló lease.   On 21 May 2010, the Group exchanged contracts for the
sale of this property at a price of £275,000.  Completion is scheduled for
1 October 2010.


In overall terms, PHP has the potential to add over 800 rooms (over 25 per cent
of the current estate) of which 519 rooms (2009H1: 370 rooms, therefore a 40%
increase in consented rooms) have already received the necessary planning or
listed building consent.  There are also schemes for over 3,000 sq m (of which
over 70% have planning consent) of additional meeting rooms and upgrades for
several leisure clubs.  The economics of adding these rooms and other facilities
can be highly attractive for both PHP and Barceló.  The value of the development
potential of the portfolio is not typically fully recognised in a professional
valuation and PHP therefore believes that fulfilling the programme will add
significantly to net asset value over time.

Fire at Harrogate Majestic Hotel

On 5 May 2010, the east wing of the Majestic Hotel was partially damaged by
fire.  All hotel guests were safely evacuated, however a Barceló employee
tragically died as a result of the fire.  The entire hotel remained closed until
5 September 2010 whilst the necessary rectification works were carried out so as
to enable a partial reopening on that date.  As of 5 September, Barceló have
taken possession of 88 of the 170 bedrooms and the majority of the supporting
conference and other facilities.

Works are currently being undertaken to reinstate the remaining damaged areas of
the hotel and it is envisaged that bedroom and other facilities will be returned
to Barceló on a progressive basis.  The final completion of the rectification
works is expected during the second quarter of 2011. The Company has insurance
policies in place to cover property reinstatement costs and loss of rent.

Strategy and Plans

PHP's Board continues to focus on unlocking significant value by gaining
additional planning consents, executing the Group's development plans and
considering selective asset disposals as the investment market recovers.  The
Board considers that as the investment market recovers, the Group's assets
should once again prove highly attractive because of the longevity of the leases
and the associated indexation.
Prospects

The Company's financial position has benefited from the 4 September 2010
increase in rent from £30m to £31m and looking ahead, the rent from Barceló is
RPI linked from September 2011.  The planning permissions secured represent
valuable additions to an already substantial development bank across the
portfolio from which the Company expects to realise value as the hotel operating
environment improves.







Howard Shore
Chairman
23 September 2010

INDEPENDENT REVIEW REPORT TO PUMA HOTELS PLC
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30 June
2010 which comprises the profit and loss account, the balance sheet, the cash
flow statement and related notes 1 to 5. We have read the other information
contained in the half-yearly financial report and considered whether it contains
any apparent misstatements or material inconsistencies with the information in
the condensed set of financial statements.

This report is made solely to the company in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim
Financial Information Performed by the Independent Auditor of the Entity" issued
by the Auditing Practices Board.  Our work has been undertaken so that we might
state to the company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the company, for our review work, for this report, or for the conclusions we
have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved
by, the directors.  The directors are responsible for preparing the half-yearly
financial report in accordance with the United Kingdom's Accounting Standards
Board Statement 'Half-Yearly Financial Reports'.

As disclosed in note 1, the annual financial statements of the company are
prepared in accordance with United Kingdom Generally Accepted Accounting
Practice.  The condensed set of financial statements included in this
half-yearly financial report have been prepared in accordance with the
accounting policies the group intends to use in preparing its next annual
financial statements.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.

Scope of Review

We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 30 June 2010 is not prepared, in all material
respects, in accordance with the United Kingdom's Accounting Standards Board
Statement 'Half-Yearly Financial Reports'.


Deloitte LLP
Chartered Accountants and Statutory Auditors
Leeds, 23 September 2010
Puma Hotels plc
Consolidated Profit and Loss Account
Six Months Ended 30 June 2010

Unaudited Six Unaudited Six Audited
months months Year
ended ended ended
30 30 31
June June December
2010 2009 2009
      £'000 £'000 £'000



 TURNOVER     14,877 14,877 30,000

 Cost of sales     - - -



 GROSS PROFIT     14,877 14,877 30,000

 Other administrative
expenses     (1,947) (1,909) (3,873)

 Administrative expenses
- exceptional     - - (2,102)

 (Deficit on revaluation
of properties)



 Total administrative
expenses     (1,947) (1,909) (5,975)



OPERATING PROFIT   12,930 12,968 24,025



Interest receivable and
similar income     24 17 39

Bank interest payable     (10,149) (12,112) (25,601)

Shareholder finance costs     (2,683) (1,983) (4,700)



PROFIT /(LOSS) ON ORDINARY
ACTIVITIES BEFORE TAXATION   122 (1,110) (6,237)

 Tax on profit / (loss)
on ordinary activities     - - -



RETAINED PROFIT / (LOSS)
FOR THE FINANCIAL PERIOD       122 (1,110) (6,237)







Puma Hotels plc

Consolidated Balance
Sheet

As at 30 June 2010

Unaudited Unaudited Audited
As at 30 June 2010 As at 30 June 2009 As at 31 December
  2009

  £'000 £'000 £'000



Fixed assets

Intangible assets - 7,700 8,221 7,960
Goodwill

Tangible assets 463,277 486,010 463,170


---------------------------------------------------------
  470,977 494,231 471,130
---------------------------------------------------------


Current Assets

Debtors 1,485 - 1,494

Cash at Bank and in 8,954 26,994 8,689
hand


---------------------------------------------------------
  10,439 26,994 10,183



Creditors amounts (13,780) (13,898) 13,992
falling due within one
year


---------------------------------------------------------
Net current assets / (3,341) 13,096 (3,809)
(liabilities)
---------------------------------------------------------


Total assets less 467,636 507,327 467,321
current liabilities



Creditors amounts (385,287) (400,302) (385,095)
falling due after more
than one year

Provision for - - -
liabilities


---------------------------------------------------------
Net assets 82,349 107,025 82,226





Capital and reserves

Called up share capital 1,658 1,658 1,658

Share premium account 32,137 32,137 32,137

Revaluation reserve 84,732 105,104 84,732

Profit and loss account (36,178) (31,874) (36,301)


---------------------------------------------------------
Shareholders' funds 82,349 107,025 82,226






Puma Hotels plc
Consolidated Cashflow statement
Six Months ended 30 June 2010


Unaudited
Period Unaudited Period
       ended ended 30 June 2009
30 £'000 Audited Year
 June 2010 ended 31 December
    £'000 2009 £'000



 Net cash inflow from 14,492
operating activities     15,311 26,636



 Returns on investments
and servicing of
finance

 Interest received     24 17 39

 Interest paid     (14,145) (13,289) (27,894)



 Net cash outflow from
returns on investments (14,121)
and servicing of
finance     (13,272) (27,855)



 Taxation

 Corporation tax paid     - - -



 Capital expenditure

 Purchase of tangible (106)
fixed assets     (2,490) (2,587)

 Sale of tangible fixed -
assets     - 463



Net cash outflow from
capital expenditure and (2,490)
financial investment   (106) (2,124)



 Net cash inflow 265
(outflow) before
financing     (451) (3,343)



 Financing

 Issue of preference -
share capital     20,000 20,000

 Term loans repaid     - - (15,000)

 Bonds repaid     - (1,110) (1,124)

 New term loan issue -
costs     (193) (592)



 Net cash inflow from -
financing     18,697 3,284



 Increase / (decrease) 265
in cash     18,246 (59)




Notes:


     The interim financial information for the 6 months ended 30 June 2010 has
been prepared in accordance with applicable United Kingdom accounting standards,
including pronouncements on interim reporting issued by the Accounting Standards
Board, using policies consistent with those applied to the year ended 31
December 2009 and the 6 months ended 30 June 2009. The interim information,
together with the comparative information contained in this report for the year
ended 31 December 2009, does not constitute statutory accounts within the
meaning of section 434 of the Companies Act 2006.  The interim financial
information has not been audited by the Company's auditor. The interim financial
information has been reviewed by the Company's auditor and the Independent
review report is set out in this document.  The statutory accounts for the year
ended 31 December 2009 have been reported on by the Company's auditors, Deloitte
LLP, and delivered to the Registrar of Companies. The report of the auditors on
those accounts was unqualified and did not contain a statement under section
489(2) or (3) of the Companies Act 2006.

2.      SEGMENTAL ANALYSIS


     The Group's turnover, profit before taxation and net assets are derived
from its principal activity within the UK and as such no segmental information
has been disclosed.

3.        RELATED PARTY TRANSACTIONS


     The Group has been involved in transactions with companies within the Shore
Capital Group:
       Profit and Outstanding creditor at the
loss period end
 charge £'000
in the
period

£'000



     Management fees charged by     1,444 302
Shore Capital Limited to Puma Hotels
plc





     The management fee charged by Shore Capital Limited is based on 60 basis
points of gross asset value per annum.


4. RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM    OPERATING
ACTIVITIES
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended 31
        30 June 2010   30 June 2009   December  2009

        £'000   £'000   £'000



Operating
profit     12,930   12,968   24,025

Impairment of tangible fixed
assets -   -   2,102

Depreciation of tangible
fixed assets -   -   -

Amortisation of goodwill   260   260   521

Decrease / (Increase) in
debtors   9   2,387   893

Increase / (Decrease) in
creditors   1,293   (304)   (905)



Net cash inflow from
operating activities 14,492   15,311   26,636

5.       Post balance sheet date events

On 23 July 2010, the Group signed an agreement with Harrogate Borough Council
which provides, inter alia, for the proposed 107 lodge hotel to be directly
linked into a new 3,400 sq m exhibition facility which is being built as part of
the first phase in the redevelopment of the Harrogate International Centre
(HIC).  In addition, the Group will have the benefit of 20 car parking spaces on
a 99 year lease (initial term of 25 years) from HBC.   In return, the Group
transferred to HBC a 103 square metre parcel of land to be used by HBC in the
expansion of the HIC.






[HUG#1446514]








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