Interim Results - Turnover Down but Profits Up

Anglian Group PLC
30 November 1999



Contact:

Anglian Group PLC                0171 831 3113   (30/11/99)
Eddie Boss, Chief Executive      01603 787000
Robert Aitken, Finance Director  
                                 
Financial Dynamics               0171 831 3113
Tom Baldock                      
                                       
                                       
                               Anglian Group PLC

                                Interim Results
                                       
              Strong cash generation and earnings growth continue

Anglian Group PLC, a UK leader in the home improvements market, announces its
interim results for the 26 weeks to 2 October 1999.

                                 26 weeks to        26 weeks to           
                              2 October 1999  26 September 1998
Turnover                      £121.0 million     £121.9 million      -  1%
Operating profit               £13.7 million      £12.7 million      +  8%
Profit before taxation         £14.1 million      £14.0 million      +  1%
Earnings per share                12.9 pence         10.8 pence      + 19%
Interim dividend per share         4.5 pence          4.2 pence      +  7%


-  Strong demand across each of the Group's principal business sectors
-  Turnover growth hampered by production constraints, now resolved
-  Increase in operating profit reflects continued benefits from recent
   restructuring measures
-  Further strong growth in earnings per share following reorganisation of the
   Group's capital structure
-  Significant contribution from Living Design, the Group's kitchen direct
   sales business
-  Continued positive cash generation, resulting in a net cash inflow of £9.5
   million before dividend


Commenting on the results, Chief Executive Eddie Boss said:

'A number of temporary production constraints held back turnover growth in the
first half.  However, with these now resolved we are confident that our strong
order books and increased manufacturing output will enable us to achieve a
satisfactory outcome for the full year.'
                                       
                       Anglian Group PLC Interim Results
                     For the 26 weeks to 2nd October 1999
                                       
                                       
                  CHAIRMAN'S AND CHIEF EXECUTIVE'S STATEMENT



Overview
Strong  demand  contributed  to large order books  for  each  of  the  Group's
principal  business sectors.  This demand is not reflected in the  first  half
turnover  figure due to some temporary production constraints at  the  Group's
Norwich  facility triggered by the commissioning of new plant  and  IT,  which
limited installations.  These have now been resolved and manufacturing  output
has  recovered.   Operating profits increased during  the  period,  reflecting
continued benefits from the restructuring measures in recent years.

Profit  before taxation at £14.1million includes net interest income  of  £0.4
million  compared to £1.3 million in 1998, reflecting the special  payment  of
£44 million to shareholders in May 1999.

The  more  efficient capital structure resulting from the special  payment  to
shareholders and the associated share capital consolidation contributed to the
growth in earnings per share.

Financial summary
-  Turnover down 1% at £121.0 million (1998: £121.9 million).
-  Operating profit up 8% to £13.7 million (1998: £12.7 million).
-  Profit before taxation up 1% to £14.1 million (1998: £14.0 million).
-  Earnings per share up 19% to 12.9 pence per share (1998: 10.8 pence).
-  Interim dividend up 7% to 4.5 pence per share (1998: 4.2 pence).

Cash  generation continued to be positive, resulting in a net cash  inflow  of
£9.5  million  (1998:  £11.6 million) before management of  liquid  resources,
financing  and  dividends to shareholders. The reduction in the  Group's  cash
balance  from  £50.2 million at last year end to £11.8 million  reflected  the
special payment of £44.0 million made to shareholders.


Business review
The  consumer  home  improvements  sector  generated  increased  order  intake
reflecting  a buoyant market and an excellent performance from our  sales  and
marketing  team.   Turnover  reduced by 2% to  £94.9  million  reflecting  the
restricted installations resulting from the constraints on product supply.

Last  year,  the Group's Living Design business was restructured, merging  its
windows  and associated products activities with those of Anglian  Windows  in
Scotland,  and  leaving  the original Living Design team  focussed  solely  on
kitchens sold direct to the consumer. Building on these measures, this  period
has  seen significant growth from this business and a very useful contribution
to the Group's increased operating profit.

The  commercial building products business also experienced good order  intake
in  each  of its market sectors with demand from the new housing sector  being
particularly  strong. However, a combination of public sector  housing  demand
for installation of orders taken being weighted more to the second half of the
year and the impact of supply constraints, resulted in turnover increasing  by
a more modest 3% to £26.1 million.

The  Norwich  manufacturing  operations experienced  a  difficult  half  year,
without  which  Group turnover and profits would certainly have  been  higher.
Service  levels were affected by a combination of issues including the  impact
of  a major IT programme which went live at last year end and, as noted in the
last  annual report, impacted short term on output. Additional adverse effects
included   some  constraints  on  production  during  commissioning   of   new
manufacturing  plant  and  a major power supply interruption.  Although  these
issues  have  now been largely resolved, catching up with output  requirements
and re-establishing planned service levels has taken some time.


Dividend
The  Board has declared an interim dividend of 4.5 pence per share (1998:  4.2
pence)  payable on 15th February 2000 to shareholders on the register at  14th
January 2000.

Year 2000
The  major  investment in IT systems and other equipment  designed  to  ensure
millennium  compliant performance is now complete and the Group  is  confident
that all business operations are ready to deal with the year 2000 change.  The
total  direct third party cost incurred in relation to this over a  period  of
three  years has been just over £5 million.  This includes the replacement  of
hardware and software that were nearing the end of their useful lives.

Contingency plans have been made to address the risk of any millennium-related
failures  that may affect business-critical systems and processes.  Given  the
complexity of the millennium issue it is, however, not possible for the  Group
to  guarantee  that  its business will not be affected by  events  beyond  its
control.

Outlook
The  Group  entered  the second half with strong order  books  and  has  since
increased manufacturing output with improved levels of service.

Accordingly  a  return  to turnover growth and continued  earnings  per  share
growth is anticipated in the second half year.




David Perry                                       Eddie Boss
Chairman                                          Chief Executive


                       Anglian Group PLC Interim Results
                     for the 26 weeks to 2nd October 1999
                                       
Consolidated profit and loss account
(unaudited)

                              26 weeks to   26 weeks to 53 weeks to
                                2 October  26 September   3 April
                                     1999          1998      1999


                       Notes        £'000         £'000     £'000
Turnover
Continuing operations             120,976       121,935   253,263
                                   ======        ======    ======

Operating profit on
continuing operations              13,687        12,682    27,817

Net interest                          415         1,284     2,688
                                  _______       _______   _______
Profit before taxation             14,102        13,966    30,505

Taxation                 2        (4,372)       (4,469)   (9,762)
                                  _______       _______   _______
Profit for the period               9,730         9,497    20,743

Dividends                3        (3,234)       (3,694)   (8,484)
                                  _______       _______   _______
Retained profit                     6,496         5,803    12,259
                                  =======       =======   =======
Earnings per share
- basic                  4          12.9p         10.8p     23.6p
- diluted                4          12.7p         10.7p     23.4p
                                  _______       _______    ______

Dividend per share       3           4.5p          4.2p     11.0p
                                  _______       _______   _______




All recognised gains and losses are included in the consolidated profit and
loss accounts above.



                                       
                                       
                       Anglian Group PLC Interim Results
                     for the 26 weeks to 2nd October 1999
                                       
Consolidated balance sheet
(unaudited)
                                        2 October  26 September   3 April
                                             1999          1998      1999
                       Notes                £'000         £'000     £'000

Fixed assets                               30,189        27,589    29,501

Current assets
Stocks                                     12,868        10,935    10,289
Debtors                                    30,403        27,137    26,947
Cash at bank and in hand                   11,795        41,700    50,196
                                          _______       _______   _______
                                           55,066        79,772    87,432

Creditors - amounts falling due
               within one year            (67,910)      (59,730)  (63,079)
                                            _____         _______   _______
Net current (liabilities)/assets          (12,844)       20,042    24,353
                                           _______       _______   _______

Total assets less current 
  liabilities                              17,345        47,631    53,854

Creditors - amounts falling due
           after more than one year         (811)          (808)     (907)
Provisions for liabilities and charges    (8,351)        (8,770)   (8,378)
                                          _______       _______   _______
Net assets                                 8,183         38,053    44,569
                                         _______       _______   _______


Capital and reserves
Called up share capital                    4,450          4,397     4,399
Share premium account                     28,033         56,556    56,614
Profit and loss account  7               (24,300)       (22,900)  (16,444)
                                          _______        _______   _______
Shareholders funds       8                 8,183         38,053    44,569
                                          _______        _______   _______


                       Anglian Group PLC Interim Results
                     for the 26 weeks to 2nd October 1999
                                       
Consolidated cash flow statement (unaudited)
                                     26 weeks to   26 weeks to  53 weeks to
                                       2 October  26 September    3 April
                                            1999          1998       1999
                         Notes             £'000         £'000      £'000
Net cash flow from
operating activities     5                 14,054        14,060    36,827

Returns on investment and
servicing of finance                          415         1,284     2,688

Taxation                                     (923)         (880)   (7,428)

Capital expenditure
Purchase of tangible fixed assets          (4,360)       (3,520)   (9,188)
Sale of tangible fixed assets                 328           692     1,001
                                          _______       _______   _______
                                           (4,032)       (2,828)   (8,187)
                                          _______       _______   _______
Equity dividends paid                      (4,820)       (5,268)   (8,962)
                                          _______       _______   _______
Net cash inflow before management
of liquid resources and financing           4,694         6,368    14,938

Management of liquid resources             33,188        (7,000)  (16,313)

Financing                6                (43,095)          246       172
                                          _______       _______   _______
(Decrease) in cash in the period           (5,213)         (386)   (1,203)
                                           _______       _______   _______

Reconciliation of net cash flow to movement in net funds

(Decrease) in cash in the period          (5,213)          (386)   (1,203)

Cash outflow from decrease in 
  finance leases                             213            130       264

Cash (inflow)/outflow from (decrease)/increase
  in liquid resources                    (33,188)         7,000    16,313

Inception of finance leases                 (124)           (24)     (385)
                                         _______         _______   _______
Movement in net funds 
 in the period                           (38,312)         6,720    14,989

Net funds at the start 
 of the period                            48,889         33,900    33,900
                                         _______        _______   _______
Net funds at the end 
  of the period                           10,577         40,620    48,889
                                         _______        _______   _______
                                       

                       Anglian Group PLC Interim Results
                     for the 26 weeks to 2nd October 1999
                                       
Notes to the interim results

1. Basis of preparation

   The  financial  information, which is unaudited  and  does  not  constitute
   statutory  accounts, comprises the results of Anglian  Group  PLC  and  its
   subsidiary undertakings for the period ended 2nd October 1999.
   
   The  information  has  been prepared using accounting  policies  consistent
   with those set out in the Group's 1999 statutory accounts.

   FRS  12  relating to provisions and contingent liabilities was  adopted  by
   the  group for the 3rd April 1999 financial statements.  Reorganisation and
   property  provisions previously included in creditors have been  reanalysed
   and  the  group  balance  sheet at 26th September 1998  has  been  restated
   accordingly.   The adoption of FRS 12 has not affected previously  reported
   retained profits.

   The  comparative figures for the financial year ended 3rd April  1999  have
   been  extracted  from  the Group's statutory accounts  for  that  financial
   year.   Those  accounts have been reported on by the Group's  auditors  and
   delivered  to  the Registrar of Companies.  The report of the auditors  was
   unqualified and did not contain a statement under Section 237  (2)  or  (3)
   of the Companies Act 1985.

2  Taxation

   The  taxation  charge for the period ended 2nd  October 1999 is  calculated
   at  31%,  being the estimated effective rate of taxation for the  52  weeks
   ending 1st April 2000.
   
3. Dividend

   The  interim  dividend of 4.5p (1998: 4.2p) will be paid on  15th  February
   2000  to shareholders registered on 14th  January 2000.  The estimated cost
   of  £3,234,000  (1998: £3,694,000) is based on 71,199,458  ordinary  shares
   (1998: 87,943,043 ordinary shares).
   
4.   Earnings per share

   The  calculation  of earnings per ordinary share is based  on  earnings  of
   £9,730,000  (1998: £9,497,000) and the weighted average number of  ordinary
   shares  in  issue during the period of 75,315,691 (1998: 87,853,484).   The
   calculation  of diluted earnings per ordinary share is based  on  the  same
   earnings  and  an  assumed number of ordinary shares of  76,326,649  (1998:
   88,478,853).   No adjustment has been made to prior periods'  earnings  per
   share  as  a  result of the special payment and share capital consolidation
   (Note 9) as this represented a repurchase of shares at fair value.
   

5. Reconciliation of net cash flow from operating activities
   
                                          26 weeks to  26 weeks to 53 weeks to
                                          2 October    26 September    3 April
                                                1999           1998       1999
                                               £'000          £'000      £'000

   Operating profit on continuing operations  13,687         12,682     27,817
   Depreciation                                3,552          3,374      7,069
   (Profit) on sale of fixed assets              (84)          (184)      (71)
   (Increase)/decrease in stocks              (2,579)            95        741
   (Increase) in debtors                      (3,456)        (1,137)   (1,989)
   Increase/(decrease) in creditors 
     and provisions                            2,934           (481)     3,869
   Cash flow relating to 
     discontinued operations                     -             (289)     (609)
                                               _______       _______   _______
   Net cash inflow from operating activities   14,054         14,060    36,827
                                               _______       _______   _______


6. Financing
                                         26 weeks to   26 weeks to 53 weeks to
                                          2  October    26 September   3 April
                                                  1999          1998      1999
                                                 £'000         £'000     £'000

   Issue of share capital                        1,352           376       436
   Special payment  to shareholders            (43,987)            -         -
   Expenses paid in connection with
     share capital consolidation                  (247)            -         -
   Repayment of finance leases                    (213)         (130)    (264)
                                                _______       _______  _______
                                               (43,095)           246      172
                                                _______       _______  _______

7. Profit and loss account

                                      2  October     26 September      3 April
                                            1999             1998         1999
                                           £'000            £'000        £'000

   Accumulated retained profits            7,868            12,128      17,154
   Goodwill                              (32,168)          (35,028)   (33,598)
                                         _______            _______   _______
                                         (24,300)          (22,900)   (16,444)
                                         _______            _______   _______


8.   Reconciliation of movement in shareholders' funds

                                       2  October       26 September   3 April
                                            1999                1998      1999
                                           £'000               £'000     £'000

   Profit for the period                   9,730               9,497    20,743
   Dividends                              (3,234)             (3,694)  (8,484)
                                           _______           _______   _______
   Retained profit for the period          6,496               5,803    12,259

   Special payment to shareholder        (43,987)                 -          -
   Costs charged against share premium      (247)                 -          -
   New shares issued                       1,352                 376       436
                                          _______            _______   _______
   Net movement in shareholders' funds   (36,386)              6,179    12,695

   Opening equity shareholders' funds     44,569              31,874    31,874
                                          _______            _______   _______
   Closing equity shareholders' funds      8,183              38,053    44,569
                                         _______             _______   _______

9.   Special payment and share capital consolidation
   
   As  previously  explained in the annual report for the  period  ending  3rd
   April 1999 and in a circular to shareholders on 22nd March 1999.
   
   a) the capital of the company has been reduced by approximately £44M by:
   i) the capitalisation of part of the amount standing to the credit of the
      revaluation reserve of the company by the creation of B shares of 50p
      each;
   ii)the issue and allotment to the holders of ordinary shares in the  
      company of one fully paid B share for each ordinary share held;
   iii) the subsequent cancellation of the B shares and the payment of 50p for
      each B share;

   b) the  ordinary  share  capital  of the  company  was  sub-divided  and
      consolidated on a 4 for 5 basis, creating new ordinary shares after  the
      consolidation of 6.25p each;

   c) the  share  premium account was reduced by £30M, creating  additional
      distributable reserves and providing flexibility to make further
      distributions to shareholders.

   The reduction became effective on 14th May 1999 and the special payment  of
   approximately £44M in cash was made on 21st May 1999.

10.The  financial  information for the 26 weeks ending  2nd  October  1999  is
   unaudited  but  has  been  reviewed in accordance with  Auditing  Practises
   Board  guidance by KPMG Audit Plc, whose report is included in the  interim
   report which will be posted to shareholders on 10th December 1999.