Half-yearly Report

Angela Flowers Gallery plc                           

                     Interim Statement and Results for the                     
                        six months ended 30th June 2009 



                             CHAIRMAN'S STATEMENT                              

The first half of 2009 has been a period of consolidation. The aim has been to
steady the ship in the face of extremely challenging financial times. Our
strategy to reduce costs has been a success. We have witnessed a great deal of
interest from collectors old and new, but a reluctance to part with money. I am
confident that we have weathered the worst of the storm and that as soon as
conditions improve in the contemporary art market we will be well placed to
benefit. Your board of directors support me in believing that there remains a
great opportunity in the United States: that being so, we have now found new
premises in Chelsea, New York where we plan to open this fall.

Our results for the first half of 2009 are a little better than anticipated and
an improvement on the first half of 2008. Gross profits of £961,463 on sales of
£2 million for the half year are down from £1.12 million on £2.34 million
turnover in 2008, but with operating costs down from £1.16 million to £997,547
the net loss of £56,495 is a small, but welcome improvement on the loss of £
87,809 last year.

We plan to launch our new website shortly. The news page is an excellent place
to find all the exciting exhibitions our artists are involved in both at the
galleries and elsewhere. Lucy Jones has recently been shortlisted for the £
25,000 Threadneedle Art Prize taking place at the Mall galleries in London.
Nadav Kander's imminent exhibition "Obama's People" at Kingsland Road has been
attracting fabulous press. Patrick Hughes is about to celebrate his 70th
birthday with work in exhibitions across the globe. Robert Polidori has
retrospectives taking place in Montreal and Rio de Janeiro. Edward Burtynsky is
about to open a significant new exhibition "Oil" at the Corcoran Art Gallery in
Washington DC.

It is, however, unfair to mention only a few of the Gallery artists as all of
them continue to produce work of the highest calibre.

Lastly I want to thank all the staff. They have remained incredibly positive,
hard-working and motivated despite the odds.

I look forward to bringing further good news in the months and years ahead.

Angela Flowers
Chairman
15 September 2009


                 CONSLIDATED PROFIT AND LOSS ACCOUNT FOR THE                  
                                                                              
                          SIX MONTHS TO 30 JUNE 2009                          
                                                                              
                                       Unaudited      Unaudited      Audited  
                                       Six months    Six months       year    
                                         ended          ended         ended   
                                                                              
                                        30.06.09      30.06.08      31.12.08  
                                                                              
                                           £              £             £     
                                                                              
Turnover                                 2,053,252     2,338,341     4,039,449
                                                                              
Cost of Sales                          (1,091,789)   (1,217,168)   (2,234,988)
                                                                              
Gross Profit                               961,463     1,121,173     1,804,461
                                                                              
Operating Costs                          (997,547)   (1,162,872)   (2,255,064)
                                                                              
Operating Profit (Loss)                   (36,084)      (41,699)     (450,603)
                                                                              
Interest receivable                              1        15,700        19,389
                                                                              
Interest payable                          (19,900)      (70,835)     (134,166)
                                                                              
Profit (Loss) before                      (55,983)      (96,834)     (565,380)
taxation                                                                      
                                                                              
Taxation                                     (512)         9,025        44,181
                                                                              
Profit (Loss) after                       (56,495)      (87,809)     (521,199)
taxation                                                                      
                                                                              
Retained Profit brought                    248,530       769,729       769,729
forward                                                                       
                                                                              
Retained Profit carried                    192,035       681,920       248,530
forward                                                                       
                                                                              
                                                                              
                                                                              
Earnings per share                         (0.81p)       (1.26p)       (7.50p)



                       NOTE TO INTERIM FINANCIAL RESULTS                       

The interim financial information set out herein does not constitute statutory
accounts within the meaning of Section 434 of the Companies Act 2006. The
financial statements comprise the unaudited results for the six months ended 30
June 2009 and extracts from the audited results for the year ended 31 December
2008. The unaudited Group results have been prepared under the historical cost
convention, in accordance with the Companies Act 2006 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 2008.

The results for the 6 months ended 30 June 2009 have not been audited. The
financial information for the year ended 31 December 2008 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 2008 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 condensed financial
statements for the six months ended 30th June 2009. 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.

SCOPE OF REVIEW

We conducted our review in accordance with International standard on Review
Engagements 2410, "Review of Interim Financial Information Performed by the
Independent Auditor of the Entity." 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 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.

REVIEW 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 interim financial
report for the six months ended 30th June 2009 is not prepared, in all material
respects, in accordance with the PLUS Rules for companies.

Bowker Orford
Registered Auditors
15 September 2009


Enquiries:
Angela Flowers Gallery plc
Matthew Flowers, Chief Executive Tel: + 44 (020) 7920 7777

Ruegg & Co Limited
Gavin Burnell Tel: + 44 (020) 7448 4400