Final Results

ANGELA FLOWERS GALLERY PLC                           

                FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2008

                             CHAIRMAN'S STATEMENT                              

After the strong financial performance in 2007 it is disappointing to announce
a large loss for 2008. The fall in turnover to £4 million or 32% represents all
too clearly the recession in the contemporary art market since 2007. The cost
of sales dropped by 30% to £2.3 million, leaving gross profits lower by 34% at
£1.8 million.

Administrative expenses fell by 8% to £2.3 million, which was a considerable
achievement in the circumstances, but resulted in a loss of £450,603 at the
operating level and a loss of £565,380 before tax. The net loss came to £
521,199. equating to a loss of 7.5p per share.

During this very difficult financial year for business at large, the company
still achieved a great deal. We moved out of our old storage premises in
Richmond Road into the new freehold facility, having built a mezzanine floor
and fitted superb racking. We completed our renovations at Cork Street and now
have a splendid basement Gallery in addition to the ground floor area, which
has a separate, dedicated entrance. The space re-opened with a brilliant
exhibition of new paintings by Derek Boshier.

Peter Howson had a sell-out exhibition "The Harrowing of Hell" in a return to
form at Flowers East in October. Lucy Jones' exhibition of landscapes,
accompanied by a handsome new book, earned rave reviews, notably in the
Financial Times. The Gallery gave a first exhibition to the photographer Nadav
Kander - Yangtze From East To West - which also received excellent publicity.
He has since photographed "Obama's People" for the New York Sunday Times
magazine to celebrate President Obama's inauguration. An exhibition of this new
work is running at the Birmingham Museum and Art Gallery until the end of
August.

The unfriendly climate meant that the New York Gallery suffered its first loss
in six years (£120,008 against a profit of £11,493 last year). Sales in New
York dropped off earlier than the UK. The situation has been hindered further
by long and protracted renovations at 1000 Madison Avenue. This disturbance has
recently resulted in our vacating the premises, with a view to finding new
accommodation later this year.

Given the current market conditions, your board has taken the tough and
necessary measures to reduce costs dramatically in order to bring about
financial stability and growth. We have seen a revival in sales from the
beginning of February and are hopeful of a return to profit by the end of this
year.

As I remarked last year, spotting and bringing in new talent is very important.
Despite all the difficulties, I am therefore pleased to announce the
forthcoming first exhibitions with us for Jennifer Taylor, Cedric Christie and
Kwon Ki-Soo from South Korea. We are also about to launch our most ambitious
publication to date, "Bernard Cohen Work of Six Decades", which will be
available shortly to coincide with a brilliant survey exhibition.

The immensely hard-working staff deserve our warm thanks for their efforts in a
year when overall numbers have unfortunately had to be reduced from last year's
levels.

The Directors have given valued backing for the inevitable actions taken to
resist the difficulties undergone - and the artists have maintained a level of
achievement that has been splendid.

Angela Flowers

Chairman

These financial statements which have been extracted from audited information
have been approved by the Board of Directors.

The directors do not recommend payment of a dividend for the year ended 31st
December 2008 (2007: Nil).

                                                   

                                    CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                    FOR THE YEAR ENDED 31 DECEMBER 2008

                                                                  2008                      2007

                                                           £               £           £              £

TURNOVER                                                              4,039,449                  5,899,318

Cost of sales                                                         2,234,988                  3,176,070



GROSS PROFIT                                                          1,804,461                  2,723,248

Administrative expenses                                               2,309,786                  2,499,837



                                                                       (505,325)                   223,411

Other operating income                                                   54,722                      2,000



OPERATING (LOSS)/PROFIT                                                (450,603)                    225,411

Income from interest in associated undertakings              -                        4,000                          
Interest receivable and similar income                  19,389                          899                   
                                                                         19,389                         899
                                                            
                                                                                               
                                                                       (431,214)                    230,310

Interest payable and similar charges                                    134,166                     122,943          
                                                    
                                                                    
(LOSS)/PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION                                                        (565,380)                    107,367

Tax on (loss)/profit on ordinary activities                             (44,181)                     48,522           
                                                        
                                                                    
(LOSS)/PROFIT FOR THE FINANCIAL YEAR
AFTER TAXATION                                                        (521,199)                      58,845


Earnings per share expressed
in pence per share:
Basic                                                                   -7.50                          0.85
Diluted                                                                 -7.50                          0.84



CONTINUING OPERATIONS
None of the group's activities were acquired or discontinued during the current
year or previous year.

TOTAL RECOGNISED GAINS AND LOSSES
The group has no recognised gains or losses other than the loss for the current
year and the profit for the previous year.




                                      CONSOLIDATED BALANCE SHEET
                                          31 DECEMBER 2008



                                                              2008                           2007

                                                        £             £              £               £

FIXED ASSETS
Intangible assets                                                  50,943                          60,249
Tangible assets                                                 3,264,756                       3,002,291
Investments                                                             2                               2


                                                                3,315,701                       3,062,542

CURRENT ASSETS
Stocks                                            1,977,118                      1,859,109
Debtors                                             962,685                      1,512,883
Cash at bank and in hand                            102,568                        579,063


                                                  3,042,371                      3,951,055

CREDITORS
Amounts falling due within one year               1,706,387                      1,834,259        
                                        
NET CURRENT ASSETS                                             1,335,984                       2,116,796


TOTAL ASSETS LESS CURRENT
LIABILITIES                                                    4,651,685                       5,179,338

CREDITORS
Amounts falling due after                                              
more than one year                                            (1,896,351)                     (1,902,988)        

PROVISIONS FOR LIABILITIES                                       (40,799)                        (40,616)

NET ASSETS                                                     2,714,535                       3,235,734
                 
                           

CAPITAL AND RESERVES
Called up share capital                                       1,043,093                        1,043,093
Share premium                                                 1,421,006                        1,421,006
Capital reserves                                                  1,906                            1,906
Profit and loss account                                         248,530                          769,729


SHAREHOLDERS' FUNDS                                           2,714,535                        3,235,734



The financial statements were approved by the Board of Directors on 28 May 2009
and were signed on its behalf by:

M D Flowers - Director



                                          COMPANY BALANCE SHEET
                                            31 DECEMBER 2008



                                                            2008                     2007

                                                      £             £           £              £

FIXED ASSETS
Intangible assets                                                    -                           -
Tangible assets                                              3,252,526                   2,987,104
Investments                                                     17,291                      17,291

                                                             3,269,817                   3,004,395

CURRENT ASSETS
Stocks                                         1,977,118                   1,859,109
Debtors                                        1,168,372                   1,490,367
Cash at bank and in hand                          24,848                     549,400


                                               3,170,338                   3,898,876

CREDITORS
Amounts falling due within one year            1,664,201                   1,744,962        
                                          
                                                    
NET CURRENT ASSETS                                          1,506,137                    2,153,914


TOTAL ASSETS LESS CURRENT
LIABILITIES                                                 4,775,954                    5,158,309

CREDITORS
Amounts falling due after                                              
more than one year                                         (1,896,351)                  (1,902,988)        

PROVISIONS FOR LIABILITIES                                    (40,799)                     (40,616)

NET ASSETS                                                  2,838,804                    3,214,705
                
                           
CAPITAL AND RESERVES
Called up share capital                                     1,043,093                    1,043,093
Share premium                                               1,421,006                    1,421,006
Capital reserves                                                1,906                        1,906
Profit and loss account                                       372,799                      748,700


SHAREHOLDERS' FUNDS                                         2,838,804                    3,214,705



The financial statements were approved by the Board of Directors on 28 May 2009
and were signed on its behalf by:

M D Flowers - Director



                                      CONSOLIDATED CASH FLOW STATEMENT
                                    FOR THE YEAR ENDED 31 DECEMBER 2008



                                                              2008                       2007

                                                        £                £          £              £
 
Net cash (outflow)/inflow
from operating activities                                          (136,183)                    22,170

Returns on investments and
servicing of finance                                               (114,777)                  (118,044)

Taxation                                                             (1,206)                   (20,558)

Capital expenditure                                                (322,264)                  (542,834)


                                                                   (574,430)                  (659,266)

Financing                                                            64,632                    945,234

(Decrease)/Increase in cash in the period                          (509,798)                   285,968


Reconciliation of net cash flow
to movement in net debt

(Decrease)/Increase
in cash in the period                              (509,798)                     285,968

Cash inflow
from increase in debt                               (64,632)                    (445,235)        
                                                        

Change in net debt resulting
from cash flows                                                   (574,430)                   (159,267)


Movement in net debt in the period                                (574,430)                   (159,267)
Net debt at 1 January                                           (1,414,656)                 (1,255,389)

Net debt at 31 December                                         (1,989,086)                 (1,414,656)



                                 Notice of AGM                                 

Notice is hereby given that the Annual General Meeting of Angela Flowers
Gallery plc for 2009 will be held at Flowers East, 82 Kingsland Road, London,
E2 8DP on Thursday 16th July 2009 at 11am.