Interim Results

Belgo Group PLC
9 March 2001

9 March 2001

                               Belgo Group PLC

           Interim Results for the 26 weeks ended 31 December 2000

Belgo Group Plc, the leading restaurant group, which operates the well-known
brands of Belgo Bierodrome and Strada, together with prestigious restaurants
such as The Ivy, Le Caprice, J Sheekey and Daphne's announces its interim
results for the 26 weeks ended 31 December 2000.

Main points


  * Group turnover up by 17% to £19.88m (1999 - £16.96m)

  * Profit before taxation, goodwill amortisation and impairment provision
    up 13% to £2.2m (1999 - £1.9m)

  * 30% increase in Basic EPS (excluding goodwill amortisation and
    impairment provision) to 0.184p (1999 - 0.142p)

  * 38% increase in Diluted EPS (excluding goodwill amortisation and
    impairment provision) to 0.176p (1999 - 0.128p)

  * General market conditions continue to be competitive and recent trading
    has been difficult in some of the outlets.

  * Closure of Belgo New York, which was operated through a joint venture
    with Avado Brands Inc, resulting in an impairment provision to reflect the
    expected market value.

  * Opening of three more Strada restaurants in Islington, Regent Street and
    Holborn areas of London.

  * Opening of Bierodrome in Fulham and Kingsway area of London.

  * Successful buy-back and cancellation of 19.8% of the issued share
    capital at a 12.3% discount to the market price at the time of the
    buy-back announcement

Andy Bassadone, Chief Executive commented:

'The London restaurant market is more competitive than ever. We remain
confident that our Bierodrome and Strada brands meet the expectations of the
increasingly more sophisticated customer. Strada is developing well, with six
restaurants open in approximately 12 months since inception and site
availability remains encouraging. The Bierodrome concept, although well
received, is being hampered by appropriate site availability.'

Nick Fiddler, Finance Director commented:

'The closure of New York, which was operated through a joint venture, enables
management to focus on the business in the UK and was necessary to avoid
ongoing losses. The Group's strong operational cash flow provides sufficient
funding for all existing expansion plans.'



For further information please contact:
Belgo Group PLC                                   Tel: [phone]
Andy Bassadone, Chief Executive
Nick Fiddler, Finance Director
Citigate Dewe Rogerson
Simon Rigby / Sophie Marsh                        Tel: [phone]



                             Chairman's Statement
                       26 Weeks ended 31 December 2000

In the 26 weeks ended 31 December 2000 the Group's turnover was £19.9m and
profits before taxation, goodwill amortisation and impairment provision was £
2.2m. This represents an increase in turnover and profits of 17% and 13%
respectively. Basic earnings per share excluding goodwill amortisation and
impairment provision were 0.184p, which represents an increase of 30% over the
same period in the previous year. In response to requests from many
shareholders and to save unnecessary administration costs the board is not
proposing to pay an interim dividend. Rather, it is intended that a full year
dividend will be paid at the time of the final dividend.

These interim results reflect the Board's decision to dispose of the Group's
interest in Belgo New York, which is operated through a joint venture with
Avado Brands Inc. An impairment provision has been made to reflect the
expected market value of the New York restaurant. This decision has been taken
after two years of operating the New York restaurant, which has failed to
provide the expected returns.

On 21 December 2000 the Group obtained shareholder approval to buy back 19.8%
of the then issued ordinary share capital at a price of 2.85p per share, which
represented a discount of 12.3% to the then market price.

During the period the Group has continued to expand with the opening of two
more Bierodrome outlets in the Fulham and Holborn areas of London and the
opening of Strada restaurants in the Islington and Regent Street areas of
London.

Review of Operations

As outlined in the circular to shareholders on 28 November 2000, trading
during the period has been competitive and continues to be so.

The Belgo Bierodrome division continues to trade reasonably in the highly
competitive mid-spend market. However, access to prime sites is hampering the
pace of development of this division. There are now eleven Belgo related
operations; with the flagship, Belgo Centraal, trading strongly.

The withdrawal from New York, although disappointing, will allow management to
focus on maintaining the quality and margins in the UK Belgo Bierodrome
business. Belgo Dublin is trading strongly ahead of last year (20%+). However,
the restaurant still falls short of the original expectations and is not
expected to make a positive contribution to profits until the next financial
year.

The Group's second roll-out brand, Strada, offers high quality Italian cuisine
with wood fired pizza as its centre piece. There are now six Strada
restaurants with a further two sites under offer. Five Strada restaurants were
opened in the twelve months following the first opening and all five units are
profitable and were cash generative almost immediately. Despite this segment
of the market place being very competitive we believe that there is a clear
demand for our product and that the existing restaurants will benefit from
increased brand awareness as the business expands through London and the South
East of England. There is reasonable site availability for Strada in the near
future.

The Group's division of high quality independent restaurants, which includes
The Ivy, Le Caprice, J.Sheekey and Daphne's continues to perform according to
expectations. These businesses are characterised in the main by stable sales
and margins, reflecting the long established and loyal following of their
customer base together with ongoing strong operational management.



Prospects

The Group currently has 22 restaurants trading in the UK and one in Ireland.
Conditions in the London restaurant market are more competitive than ever, and
trading in some of our outlets during the last two months has been difficult.
The Board continues to search for suitable sites to expand Strada and
Bierodrome while reviewing options that may be available to enhance
shareholder returns. All planned future expansion will be generated using
internal cash flow.





Luke Johnson
Chairman



                     Consolidated Profit And Loss Account
                                                      26 weeks         26 weeks
                                                         ended            ended
                                              Notes         31               26
                                                      December         December
                                                          2000             1999
                                                   (unaudited)       (unaudited)
                                                                             As
                                                                       restated
                                                         £'000             £'000
Turnover                                          1
Less share of joint ventures                            20,268           17,423

                                                          (387)            (462)
                                                        ______           ______
Group turnover                                          19,881           16,961

Cost of sales                                           (5,634)          (4,714)
                                                        ______           ______
Gross profit                                            14,247           12,247

Administrative expenses                                (12,293)         (10,514)

Amortisation of goodwill                                  (367)            (367)
Operating profit excluding goodwill                      2,321            2,100
amortisation

Group operating profit
Continuing                                               1,954            1,733
Share of joint venture loss including             3     (1,384)            (103)
impairment provision
                                                        ______           ______
                                                           570            1,630
Net interest received                                       78                9
Share of joint venture interest payable                    (93)             (56)
                                                        ______           ______
Profit on ordinary activities before taxation              555            1,583

Taxation                                          5       (332)            (499)
                                                        ______           ______
Profit on ordinary activities after taxation               223            1,084

Dividends - equity                                6          -             (102)
                                                        ______           ______
Profit for the period                                      223              982
                                                        ______           ______
Earnings per ordinary share - basic               7     0.022p           0.106p
                - diluted                         7     0.021p           0.096p
Earnings per ordinary share excluding JV
impairment and goodwill amortisation
                - basic                           7     0.184p           0.142p

                - diluted                         7     0.176p           0.128p
                                                        






                          Consolidated Balance Sheet
                                                            At 31         At 26
                                                         December      December
                                                             2000          1999
                                                      (unaudited)    (unaudited)
                                                                    As restated
                                                            £'000         £'000

Fixed Assets
Intangible assets                              2           12,793        13,762
Tangible assets                                            18,699        14,457
Investments                                                    15           120
Joint ventures
     Share of gross assets                      3             299         1,170
     Share of gross liabilities                 3            (444)       (1,571)
                                                           ______        ______
                                                           31,362        27,938

Current Assets
Stock                                                       1,273         1,006
Debtors                                                     1,713         1,872
Cash at bank and in hand                                    2,467         6,227
                                                           ______        ______
                                                            5,453         9,105
Creditors: amounts falling due within one year            (13,052)      (11,162)
                                                           ______        ______
Net current liabilities                                    (7,599)       (2,057)
                                                           ______        ______
Total assets less current liabilities                      23,763        25,881
Creditors: falling due after more than one year            (2,250)           (3)
Provision for liabilities and charges                           -          (288)
                                                           ______        ______
Net assets                                                 21,513        25,590
                                                           ______        ______
Capital and Reserves
Called up share capital                                     8,226        10,244
Reserves                                                   13,287        15,346
                                                           ______        ______
Equity shareholders' funds                                 21,513        25,590
                                                           ______        ______





                       Consolidated cash flow statement
                                                         26 weeks      26 weeks
                                                            ended         ended
                                                      31 December   26 December
                                                             2000          1999
                                                      (unaudited)   (unaudited)
                                                            £'000         £'000


Net cash inflow from operating activities                   3,961         2,730

Returns on investment and servicing of finance
Interest received                                       78             9
                                                    ______        ______
                                                               78             9
Taxation
UK Corporation tax                                           (699)          (89)

Capital expenditure and financial investment
Purchase of tangible fixed assets                   (2,940)       (1,952)
Disposal proceeds on sales of fixed assets               -            15        
                                                    ______        ______
                                                           (2,940)       (1,937)

Equity dividends paid                                        (205)         (205)
                                                           ______        ______
Cash inflow before management of liquid resources             195           508
and financing

Management of liquid resources
Decrease in restricted deposits                          -         1,500
                                                    ______        ______
                                                                -         1,500
Financing
Redemption of ordinary share capital and associated (5,919)            -
costs
Issue of ordinary share capital                         21             -
Loans to Joint Ventures                             (1,920)            -
Debt due within one year
- repayment of loans                                     -        (1,551)
- increase in short term bank loans                    750             -
Debt due beyond one year
- increase in long term bank loans                   2,250             -
Repayment of finance leases                             (8)          (21)
                                                    ______        ______
Net cash outflow from financing                            (4,826)       (1,572)
                                                           ______        ______
(Decrease) / Increase in cash in the period                (4,631)          436




                    Notes forming part of the financial statements


 1. Group turnover arises substantially in the United Kingdom. Turnover,
    results and net assets derive from the Group's ongoing principal activity
    of operating restaurants.

 2. Results are consolidated from the date of acquisition of subsidiary
    undertakings. In accordance with FRS 10, goodwill arising on the
    difference between the fair value of the consideration paid and the fair
    value of the net assets acquired is capitalised and amortised over 20
    years being the estimated useful economic life.

 3. In accordance with FRS 9 joint ventures are accounted for using the gross
    equity method. Joint ventures previously stated at cost, have been
    accounted for in accordance with FRS 9, and goodwill arising thereon has
    been charged against reserves.

    The Group's share of the joint venture's result includes an impairment
    provision of £1,279,000 to reflect the expected net realisable value of
    the joint venture's fixed assets.

 4. In accordance with the Group's results for the 53 weeks ended 2 July 2000
    the Group writes off pre-opening costs as they are incurred. This is in
    line with UITF Abstract 24 - 'Accounting for Start up costs', accordingly
    the results for the 26 weeks ended 26 December 1999 have been adjusted to
    reflect this change in accounting policy. The impact on the operating
    profit for the 26 weeks ended 26 December 1999 was a debit to the profit
    and loss account of £51,000.

 5. The tax charge for the six months ended 31 December 2000 has been
    calculated based on the estimated effective tax rate for the full year.

 6. In response to the request of many shareholders and to avoid administration
    costs the directors do not propose to pay an interim dividend. Rather, it
    is intended that a full year dividend will be paid at the time of the
    final dividend (1999 - interim dividend 0.01p per share).

 7. The calculation of earnings per share is based on the weighted average
    number of issued ordinary shares during the period of 1,013,366,700 (1999
    - 1,023,230,535) and earnings of £223,000 being the result after taxation
    (1999 - £1,084,000).

    Diluted earnings per share includes 49,438,225 (1999 -107,043,860) shares
    in respect of options and warrants, giving a total number of shares of
    1,062,804,925 (1999 - 1,130,274,395). Earnings per share excluding the
    amortisation of goodwill of £367,000 (1999 - £367,500) and the impairment
    of £1,279,000 (1999 - nil) is based on adjusted earnings of £1,869,000
    (1999 - £1,451,000).

 8. These interim results are unaudited and unreviewed and have been prepared
    utilising the accounting policies adopted by the Group in the audited
    accounts for the period ended 2 July 2000. The statutory accounts for the
    period ended 2 July 2000 have been delivered to the Registrar of Companies
    and were unqualified and did not contain a statement under section 237 (2)
    or 237 (3) of the Companies Act 1985.