YORKCOR ANNUAL RESULTS

YORK TIMBER ORGANISATION

INCOME STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 1998

COMPANY                                              GROUP

1996    1997    1998                                 1998    1997    1996
R000    R000    R000                          NOTES  R000    R000    R000
-       -       -       TURNOVER                     57 252  57 325  44 070
-       -       -       COST OF SALES                39 298  37 798  32 434
-       -       -       GROSS PROFIT                 17 954  19 527  11 636
6 316   3 275   3 708   SELLING AND                  14 204  12 412  16 311
                        ADMINISTRATION EXPENSES

(6 316) (3 275) (3 708) OPERATING INCOME/(LOSS) 1    3 705   7 115   (4 675)
                        INCOME FROM

6 392   5 240   3 949   SUBSIDIARIES              2
                        OPERATING INCOME/(LOSS)
                        BEFORE FINANCE COSTS AND

76      1 965   241     TAXATION                     3 750   7 115   (4 675)
128     137     136     FINANCE COSTS           3    2 140   1 801   2 129
                        NET INCOME/(LOSS) BEFORE

(52)    1 828  105      TAXATION                     1 610   5 314   (6 804)
(6)     191     (47)    TAXATION                4    65      291     79
                        NET INCOME/(LOSS)

(46)    1 637   152     ATTRIBUTABLE TO SHAREHOLDERS 1 545   5 023   (6 883)
                        OUTSIDE SHAREHOLDERS'

-       -       -       INTEREST                     373     368     349
                        NET INCOME/(LOSS) ATTRIBUTABLE

(46)    1 637   152     TO ORDINARY SHAREHOLDERS     1 172   4 655   (7 232)
                        TRANSFER FROM NON-

76      76      76      DISTRIBUTABLE RESERVES  6    945     774     765
30      1 713   228     NET INCOME/(LOSS) FOR YEAR   2 117   5 429   (6 467)
                        DIVIDEND AND SHARE

-       1 596   -       CAPITALISATION ISSUE    7    -       1 596   -
                        RETAINED INCOME/(LOSS)

30      117     228     - FOR YEAR                   2 117   3 833   (6 467)
1 558   1 588   1 705   - FROM PRIOR YEARS           9 834   6 001   12 468
1 588   1 705   1 933   - AT YEAR-END                11 951  9 834   6 001
                        EARNINGS/(LOSS) PER SHARE -

                        CENTS                        10,6    43,8    (68.,0)
                        HEADLINE EARNINGS/(LOSS)

                        PER SHARE - CENTS         8  16,7    28,2    (47,2)
                        DIVIDEND PER SHARE - CENTS   -       15,0    -
BALANCE SHEETS AT 31 DECEMBER 1998

COMPANY                                              GROUP

1996    1997    1998                                 1998    1997    1996
R000    R000    R000                          NOTES  R000    R000    R000
                        SOURCE OF CAPITAL

2 513   2 513   3 612   SHARE CAPITAL           9    3 612   2 513   2 513
-       1 096   -       SHARE ELECTION RESERVE  10   -       1 096   -
                        NON-DISTRIBUTABLE

1 015   939     863     RESERVES                6    18 078  19 023  11 676
                        DISTRIBUTABLE RESERVE:

1 588   1 705   1 933   RETAINED INCOME              11 951  9 834   6 001
                        ORDINARY SHAREHOLDERS'

5 116   6 253   6 408   FUNDS                        33 641  32 466  20 190
                        OUTSIDE SHAREHOLDERS'

-       -       -       INTEREST IN SUBSIDIARY       3 000   3 000   3 000
5 116   6 253   6 408   TOTAL SHAREHOLDERS' FUNDS    36 641  35 466  23 190
720     427     299     LONG-TERM BORROWINGS    11   14 311  16 896  18 661
5 886   6 680   6 707                                50 952  52 362  41 851
                        EMPLOYMENT OF CAPITAL
                        PROPERTY, PLANT, EQUIPMENT

1 890   1 632   1 419   AND VEHICLES            12   35 309  37 195  30 059
                        LONG-TERM RIGHTS TO

-       -       -       SAVINGS                 13   931     931     931
4 050   6 013   5 568   INTEREST IN SUBSIDIARIES 14

24      24      24      INVESTMENTS             15   25      312     25
-       -       -       LONG-TERM RECEIVABLES   16   5631    4 591   1 276
-       -       -       SINKING FUND            17   -       2 061   2 061
5 964   7 669   7 011                                41 896  45 090  34 352
332     339     289     CURRENT ASSETS               25 952  23 918  20 154
-       -       -       INVENTORIES             18   8 718   7 166   5 807
-       -       -       SINKING FUND            17   2 061   -       -
381     335     282     ACCOUNTS RECEIVABLE     19   13 649  11 966  11 696
1       4       7       BANK BALANCES AND CASH       1 524   4 786   2 651
460     1 328   593     CURRENT LIABILITIES          16 896  16 646  12 655
345     497     329     ACCOUNTS PAYABLE        20   14 818  13 991  10 887
-       191     82      TAXATION                     101     213     41
-       500     -       SHAREHOLDERS FOR DIVIDEND    -       500     -
                        NET CURRENT ASSETS/

(128)   (989)   (304)   (LIABILITIES)                9 056   7 272   7 499
5 836   6 680   6 707                                50 952  52 362  41 851
CASH FLOW STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 1998

COMPANY                                               GROUP

1996    1997    1998                                 1998    1997    1996
R000    R000    R000                         NOTES   R000    R000    R000
                        CASH FLOWS FROM
                        OPERATING ACTIVITIES
                        CASH GENERATED BY/
                        (UTILISED IN ) OPERATING

382     2 329   465     ACTIVITIES           29.1    4 054   9 846   (1 765)
(128)   (137)   (136)   FINANCE COSTS        29.2    (2 513) (2 169) (2 478)
(25)    -       (62)    TAXATION PAID        29.3    (177)   (119)   (103)
(198)   -       (497)   DIVIDEND PAID        29.4    (497)   -       (198)
                        NET CASH INFLOW/(OUTFLOW)
                        FROM OPERATING

31      2 192   (230)   ACTIVITIES                   867     7 558   (4 544)
                        CASH INFLOWS FROM
                        INVESTING ACTIVITIES
                        INVESTMENT TO MAINTAIN
                        OPERATIONS:
                        REPLACEMENT OF EQUIPMENT

(42)    (53)    (67)    AND VEHICLES         29.6    (545)   (1 045) (141)
                        PROCEEDS ON DISPOSAL OF

11      95      -       EQUIPMENT AND VEHICLES       58      1 529   87
                        INVESTMENT TO EXPAND
                        OPERATIONS:
                        ADDITIONS TO EQUIPMENT

-       -       -       AND VEHICLES                 -       -       (6 476)
-       -       -       INVESTMENTS                  287     (287)   -
(314)   (1 963) 445     INVESTMENT IN SUBSIDIARIES   -       -       -
                        NET CASH (OUTFLOW)/INFLOW

(345)   (1 921) 378     FROM INVESTING ACTIVITIES    (200)   197     (6 530)
                        CASH FLOWS FROM FINANCING
                        ACTIVITIES           29.6
                        (DECREASE)/INCREASE IN

261     (293)   (169)   LONG-TERM BORROWINGS 29.5    (2 874) (2 427) 7 339
                        (DECREASE)/INCREASE IN

45      25      24      SHORT-TERM BORROWINGS 29.5   (15)    122     1 363
                        INCREASE IN LONG-TERM

-       -       -       RECEIVABLES                  (1 040) (3 315) -
                        NET CASH (OUTFLOW)/INFLOW

306     (268)   (145)   FROM FINANCING ACTIVITIES    (3 929) (5 620) 8 702
                        NET (DECREASE)/INCREASE IN

(8)     3       3       BANK BALANCES AND CASH       (3 262) 2 135   (2 372)
                        BANK BALANCES AND CASH AT

9       1       4       BEGINNING OF YEAR            4 786   2 651   5 023
                        BANK BALANCES AND CASH AT

1       4       7       END OF YEAR                  1 524   4 786   2 651
THE FULL ANNUAL REPORT IS AVAILABLE.