Half-yearly Report

Angela Flowers Gallery plc

                   Interim Statement and Results for the 
                      six months ended 30th June 2008


CHAIRMAN'S STATEMENT

The first half of 2008 has seen a great deal of change. We moved a large number
of works into our new storage facility in North London, finally vacating our
Richmond Road premises as they came to the end of a 20-year lease. We signed a
new 15-year lease at Cork Street after a lengthy negotiation. We also said
goodbye to a number of staff, both short and long term, who have moved on to
other opportunities. I must especially recognise the excellent contribution of
Sam Chatterton Dickson, who served the Gallery with great enthusiasm,
initiative and support for 16 years, the last six as a director of the company.
He has moved on to another leading gallery with our best wishes for the future.

Market conditions have grown much tougher. Our results have echoed this
unwelcome change, falling short of budget. Gross profit of £1.12 million on
£2.3 million of sales for the half-year was down from £1.34 million on £2.8
million of turnover in 2007. Operating costs have been well controlled.
Consequently the net loss of £87,809, compared to £19,182 last time, is better
than might be expected in view of the £500,000 drop in sales.

However, we are nearing the completion of our Cork Street renovation, which had
an inevitable impact on sales. The premises should emerge from closure in good
shape to increase sales from October onwards. The much-improved galleries will
have substantial additional exhibition space. We will be opening with a show of
new paintings by Derek Boshier, followed by photographs of Versailles by Robert
Polidori.

Flowers East continues to stage major exhibitions. Highlights include a superb
retrospective of Jack Smith in July, followed by a wonderful exhibition of
kinetic art titled "Domestic Appliance", curated by Ellie Harrison Read, which
got excellent press coverage. We have recently opened a Patrick Hughes
exhibition of stunning new reverse perspective paintings to coincide with the
publication of a new book on his writings "Left to Write".

I am expecting further tough months ahead, but the strength of the loyal
artists with whom we work promises a very positive long-term future. Much
thanks goes to our hard working staff and supportive directors and
shareholders.

Angela Flowers
Chairman
29th September 2008



Consolidated Profit and Loss Account for the
six months ended 30th June 2008



                                  Unaudited           Unaudited          Audited
                                 Six months          Six months             year
                                      ended               ended            ended
                                   30.06.08            30.06.07         31.12.07
                                          £                   £                £

Turnover                            2338341             2803219          5899318

Cost of Sales                      (1217168)          (1459625)         (3176070)

Gross Profit                        1121173             1343594          2723248

Operating Costs                     1162872           (1307514)         (2497837)

Operating Profit (Loss)            (41699)               36080            225411

Dividend from associated                 -                   -              4000
company                              

Interest receivable                  15700                 702               899 

Interest payable                    (70835)             (55964)          (122943)

Profit (Loss) before taxation       (96834)             (19182)           107367

Taxation                              9025                   -            (48522)

Profit (Loss) after taxation        (87809)             (19182)            58845

Retained Profit brought forward     769729              710884            710884

Retained Profit carried forward     681920              691702            769729

Earnings per share                  (1.26p)             (0.35)p             0.85p
 

Note to the Interim Financial Results for the 
six months ended 30th June 2008

The interim financial information set out herein does not constitute full
financial statements within the meaning of Section 240 of the Companies Act
1985. The financial statements comprise the unaudited results for the six
months ended 30 June 2008 and extracts from the audited results for the year
ended 31 December 2007. The unaudited Group results have been prepared under
the historical cost convention, in accordance with the Companies Act 1985 and
applicable accounting standards in the United Kingdom, and on the basis of the
accounting policies set out in the Annual Report for the year ended 31 December
2007.

The results for the 6 months ended 30 June 2008 have not been audited. The
financial information for the year ended 31 December 2007 is an abridged
version of the Group's Annual Report and Accounts for that year, which has been
delivered to the Registrar of Companies. The independent auditors' report in
the Annual Report 2007 was unqualified and did not contain a statement under
Section 237(2) or 237(3) of the Companies Act 1985 (as amended).

  


                            INDEPENDENT REVIEW                               
                     Report to Angela Flowers Gallery plc                      


INTRODUCTION

We have been instructed by the Company to review the financial information for
the six months ended 30th June 2008 on page 2. We have read the other
information contained in the interim report and considered whether it contains
any apparent misstatements or material inconsistencies with the financial
information.

This report is made solely to the Company in accordance with the terms of our
engagement. Our work has been undertaken so that we might state to the Company
those matters we are required to state 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 interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the Directors. The Directors
are responsible for preparing the interim report in accordance with the Rules
of Plus.

REVIEW WORK PERFORMED

We conducted our review in accordance with guidance contained in Bulletin 1999/
4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of Group Management and
applying analytical procedures to the financial information and underlying
financial data and based thereon, assessing whether the accounting policies and
presentation have been consistently applied unless otherwise disclosed. A
review excludes audit procedures such as test of controls and verification of
assets, liabilities and transactions. It is substantially less in scope than an
audit performed in accordance with Auditing Standards and therefore provides a
lower level of assurance than an audit. Accordingly we do not express an audit
opinion on the financial information.

REVIEW CONCLUSION

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30th June 2008.

Daniel Auerbach & Company LLP
Chartered Certified Accountants
London
Date 29h September 2008