Interim Results

Brooks Service Group PLC
22 September 2000


                           BROOKS SERVICE GROUP PLC                           
                INTERIM RESULTS FOR THE PERIOD TO 26 JUNE 2000                

Chairman's and Chief Executive's Statement

Group Results and Dividend

We are very pleased to report strong profit growth in the first half of 2000.
The Group results for the 26 weeks to 24 June 2000 are summarised below.

Turnover for the period at £17.6m was slightly lower than in the previous year
(£17.8m) due mainly to lower retail sales and reduced sales to franchisees.
However, turnover within the Rental Division increased in the first half of
the year, and this contributed to a significant growth in profit before tax to
£1.28m (1999 - £0.9m), an increase of 40%. Likewise, basic earnings per share
in the period grew by 39% to 6.88p from 4.94p

Net borrowings at 24 June 2000 were reduced at £1.5m (1999 - £2.2m); gearing
at the half year was 11.7% (1999 - 19.1%). 

The Board has decided to pay an interim dividend of 2.50p per share (1999 -
2.00p), an increase of 25%. This will be paid on 17 November 2000 to
shareholders on the Register at the close of business on 6 October.

Rental Services

Linen

After a slow start to the year, the hotel sector has performed strongly with
most groups reporting increased occupancy levels and room rates. This,
combined with new contracts won midway through the second quarter, has
provided us with very satisfactory volumes.

Consolidation within the sector has led to bigger and stronger hotel groups
and this has resulted in maintaining strong price competition amongst textile
service suppliers. The linen rental industry provides extremely good value for
money and it is essential that our prices are sufficient to provide for
ongoing investment.

We have maintained our capital programme by replacing major items of equipment
as well as investing in new plant to provide for additional capacity. 

Workwear

The Workwear division has achieved sales and profit growth during the first
half and continues to build on the success of recent years. This sector offers
significant potential to expand and we are committed to growing this division
both organically and by acquisition.

Retail

Sales in the first half were down against budget and the previous year. The
division is not regarded as core and we continue to monitor closely all shops
on an ongoing basis. Two shops were closed during the period and there were
two new openings within large supermarkets, both of which are trading
profitably.

Turnover - Restatement

As a result of a Review during 1999 of the arrangements with certain customers
regarding sales of textiles, it was determined that it would be more
appropriate to disclose these transactions on a gross basis within turnover
and cost of sales, rather than as a net deduction from cost of sales. There
was no effect on profit arising from the changes. The comparative figures for
turnover and cost of sales for the 26 weeks to 26 June 1999 have been
increased by £1,123,000.

Earnings per share

The basic earnings per share for the 26 weeks ended 24 June 2000 is calculated
on the basis of a post tax profit of £893,000 (June 1999 - £635,000) and
12,972,069 ordinary shares (June 1999 - 12,847,223), being the weighted
average number of the ordinary shares in issue during the period. For diluted
earnings per share the weighted average number of ordinary shares in issue is
adjusted to 13,051,425 (June 1999 - 12,953,223). The basic earnings per share
for the 52 weeks ended 25 December 1999 is calculated on the basis of a post
tax profit of £1,990,000 and 12,868,285 shares. The diluted earnings per share
is calculated using 12,997,535 ordinary shares.

Taxation

The taxation charge has been estimated at an effective Corporation Tax rate of
30% for the 12 months ending 31 December 2000 (26 weeks to 26 June 1999 -
30.5%, 52 weeks to 25 December 1999 - 30.3%).

Tangible assets

The Company has adopted FRS15, 'Tangible fixed assets' in the period. In
previous years the directors had taken the view that any depreciation charge
was not material because of the long useful economic lives of its freehold
properties and the high residual values. The directors agree that the lives of
the buildings cannot be extended indefinitely and has charged depreciation
against the book value of its properties in the period of £30,000 on the basis
of estimated useful lives of fifty years.

Textiles held for rental

Textiles held for rental have been reclassified as fixed assets. The assets
are held for the ongoing benefit of the business and depreciated over their
useful lives. Accordingly the directors have determined that it would be more
appropriate to disclose these assets as fixed assets rather than stocks. There
is no effect on profit arising from this change.

Auditors

In accordance with best practice for listed companies, it has been decided
that the Group should, in future, have a sole auditor. Since the Annual
General Meeting, Mervyn Andrews has resigned, by mutual consent, and delivered
to the directors of the Company a statement that there are no circumstances
connected with its resignation that should be brought to the attention of the
shareholders or creditors of Brooks Service Group Plc. PricewaterhouseCoopers,
who have been joint auditors to the Company for many years, have now been
appointed by the directors as sole auditor.

Trading Outlook 

We continue to focus on serving our customers well. Whilst we do not
anticipate that the rate of improvement achieved in the first half will be
maintained during the second six months, we are confident that your Company's
performance for the full year will reflect a healthy level of profit growth.

                   R S Brooks            J W Walters
                    Chairman           Chief Executive


CONSOLIDATED PROFIT AND LOSS ACCOUNT                                   
                                                    26 weeks to
                                     26 weeks to   26 June 1999   52 weeks to
                                    24 June 2000     (unaudited)  25 Dec 1999
                                      (unaudited)     (restated)     (audited)
                                           £'000          £'000         £'000
Turnover                                   
Group and share of joint venture          17,638         17,759        36,581
Less share of joint venture                  778            739         1,502
                                          ------         ------        ------
Group turnover                            16,860         17,020        35,079
                                          ======         ======        ======
Group operating profit                     1,198            911         2,716
Share of profit of joint venture 
before interest                              121            105           255
                                          ------         ------        ------
Operating profit                           1,319          1,016         2,971
Interest payable (net)                        43            102           144
                                          ------         ------        ------
Profit on ordinary activities 
before taxation                            1,276            914         2,827
Taxation on ordinary activities:                                   
Group                                        347            249           778
Joint venture                                 36             30            59
                                          ------         ------        ------
Profit on ordinary activities after 
taxation                                     893            635         1,990
Dividends                                    326            258           774
                                          ------         ------        ------
Profit retained for the period               567            377         1,216
                                          ======         ======        ======
Basic earnings per ordinary share           6.88p          4.94p        15.46p
                                          ======         ======        ======
Diluted earnings per ordinary share         6.84p          4.90p        15.31p
                                          ======         ======        ======
Rate of dividend per ordinary share         2.50p          2.00p         6.00p
                                          ======         ======        ======
                                   
All of the Group's turnover and profit was generated from activities which are
continuing.

                                   
CONSOLIDATED BALANCE SHEET SUMMARY                                   
                                   
                                                    26 weeks to   52 weeks to
                                     26 weeks to   26 June 1999   25 Dec 1999
                                    24 June 2000     (unaudited)     (audited)
                                      (unaudited)     (restated)    (restated)
                                           £'000          £'000         £'000
Fixed Assets                                   
Tangible assets                            8,912          8,295         8,587
Textiles held for rental                   6,511          6,291         6,099
Investment in joint venture                  802            588           708
                                          ------         ------        ------
                                          16,225         15,174        15,394
                                          ------         ------        ------
Stocks                                       528            528           526
Debtors                                    5,079          5,351         5,211
Cash at bank and in hand                     538            373         1,451
                                          ------         ------        ------
                                           6,145          6,252         7,188
Less creditors                             8,678          9,486         9,534
                                          ------         ------        ------
                                          (2,533)        (3,234)       (2,346)
                                          ------         ------        ------
Provision for liabilities and charges       (510)          (264)         (524)
                                          ------         ------        ------
Net assets                                13,182         11,676        12,524
                                          ======         ======        ======

Capital and reserves                                   
Share capital and share premium account    6,003          5,903         5,912
Profit and loss account                    7,179          5,773         6,612
                                          ------         ------        ------
Equity shareholders' funds                13,182         11,676        12,524
                                          ======         ======        ====== 
     

CONSOLIDATED CASH FLOW                                   
                                     26 weeks to    26 weeks to   52 weeks to
                                    24 June 2000   26 June 1999   25 Dec 1999
                                      (unaudited)    (unaudited)     (audited)
                                           £'000          £'000         £'000
                                   
Net cash inflow from operating 
activities                                   884          1,554         4,874
                                          ------         ------        ------
Dividend received from joint venture          25              0             0
                                          ------         ------        ------
Returns on investments and servicing 
of finance                                   
Interest received                             31             13            41
Interest Paid                                (68)          (108)         (173)
Interest element of finance lease rentals     (4)            (1)           (5)
Net cash outflow from returns on 
                                          ------         ------        ------
investments and servicing of finance         (41)           (96)         (137)
                                          ------         ------        ------
Taxation                                   
Corporation Tax paid                        (267)           (51)         (846)
                                          ------         ------        ------
Capital expenditure and financial 
investment                                   
Purchase of tangible fixed assets         (1,012)        (1,155)       (2,061)
Sale of tangible fixed assets                  6             26            92
                                          ------         ------        ------
Net cash outflow from capital 
expenditure and financial investments     (1,006)        (1,129)       (1,969)
                                          ------         ------        ------
Equity dividends paid                       (522)          (437)         (695)
                                          ------         ------        ------
Cash (outflow)/inflow before management 
of liquid resources and financing           (927)          (159)        1,227
                                          ------         ------        ------
Financing                                   
Issue of ordinary shares                      91             29            38
New finance leases                           135              0           119
Repayment of loans                          (200)          (138)         (696)
Principal payment under finance leases       (12)            (5)          (18)
Repayment of joint venture loan                0              0           135
                                          ------         ------        ------
Net cash inflow/(outflow) from financing      14           (114)         (422)
                                          ------         ------        ------
(Decrease)/increase in cash in period       (913)          (273)          805
                                          ======         ======        ======

NOTES:

1.  The Interim Statement is unaudited and does not constitute full accounts
    within the meaning of the Companies Act 1985. It has been prepared on a
    basis consistent with the 1999 statutory accounts, except for the change
    in presentation of textiles held for rental referred to in the Chairman's
    and Chief Executive's Statement.

2.  The comparative figures for the 52 weeks ended 25 December 1999 do not
    constitute statutory accounts. These figures have been extracted from the
    audited accounts for that period which have been delivered to the
    Registrar of Companies and on which the auditors issued an unqualified
    report.

3.  A copy of this interim statement has been sent to shareholders.  Further
    copies can be obtained from the Company's registered office.


INDEPENDENT REVIEW REPORT TO BROOKS SERVICE GROUP PLC

Introduction

We have been instructed by the Company to review the financial information set
out in the Consolidated Profit and Loss Account, the Consolidated Balance
Sheet and the Consolidated Cash Flow Statements. 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.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The Listing
Rules of the Financial Services Authority require that the accounting policies
and presentation applied to the interim figures should be consistent with
those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

Review of work performed

We conducted our Review in accordance with guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board. A Review consists principally
of making enquiries of 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 tests 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 twenty-six
weeks ended 24 June 2000.

PricewaterhouseCoopers
Chartered Accountants, Bristol

22 September 2000