Final Results

Dinkie Heel PLC
29 March 2001

                               DINKIE HEEL PLC
           PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2000


Extract from the Chairman's statement

Financial results

Turnover for the year was 5.3% lower than 1999 at £10,152,000 (1999, 
£10,718,000) and the operating loss before the exceptional item was £242,000
(1999, £263,000). After the exceptional item and interest payable the loss for
the financial year was £475,000 (1999, £427,000). Losses per share were 3.22p
(1999, 2.89p).

Net cash inflow from operating activities was £324,000 (1999, £70,000),
including a reduction in working capital of £197,000 (1999, increase £68,000).
Capital expenditure was £105,000 and the interest cost of borrowings £174,000.
Net debt increased by £20,000 (1999, £447,000) to £2,178,000 (1999, £
2,158,000) representing gearing at the balance sheet date of 69.5% (1999,
59.8%).

Review of the year

The company's two operations in Northamptonshire, together known as Davies
Odell, continued their expansion and diversification away from the footwear
trade. Sales of EVA flooring products for the equestrian and dairy industries
grew 17% and sales of products for impact protective clothing and accessories
for sports applications (PPE equipment) expanded 11%. These products together
formed 23% of total Company sales for the year (1999, 19%). Sales by Davies
Odell to the footwear trade fell 6% by comparison with 1999. Overall turnover
increased by 4% and the trading profit from the operations increased by 15%.

The toe cap business, trading as Dinkie-FCE, had to adapt to the dramatic
decrease in UK manufacture of safety footwear. Sales revenue in the UK fell by
almost one third and total worldwide sales volume was 14% lower than in 1999.
Export sales were 68% of sales (1999, 59%) in the year. Sales prices were 3.7%
lower overall as margins were reduced in response to global price pressures.
Overheads were reduced by staff savings and by consolidation of the warehouse
facilities on the Warmley site. The warehouse reorganisation had an associated
lease closure cost of £59,000 but will produce an annual revenue saving of a
similar amount.

Sales by Phillips Rubber of moulded rubber products for footwear repairers and
manufacturers were marginally ahead of the previous year but the difficulties
of achieving satisfactory margins in the current economic climate outweighed
the improvement in sales and the operation recorded another trading loss.

Exports now represent 42% of total Company turnover (1999, 40%) and the
detrimental effect of the weak euro on sales opportunities and prices exceeds
the beneficial effect that it has in restraining raw material buying prices.
The operating loss before the exceptional item in the second half of the year
was £132,000 (first half year £110,000).


Dividends

Given the need to conserve cash and in the light of the loss for the year the
board has considered that it cannot recommend a dividend for the year (1999
nil ).


Strategic review of operations

The Board has undertaken a detailed strategic review of the Company's
operations and prospects. The review has taken into consideration the
difficulties of profitable manufacture in the UK as well as the strengths that
many of the Company's products possess in trade marks, global market position
and technical innovation in new and rapidly growing markets.

My own appointment coincided with the review. I bring to the company
experience of marketing and manufacturing gained with C & J Clark Ltd and
Coats Viyella PLC and as a non-executive director of Swallowfield PLC. I have
first hand knowledge of off shore sourcing and supply management for world
wide markets as well as having been involved with several significant
turn-arounds.

The strategic review has concluded that the Company has to source more of its
products from overseas. Sourcing from abroad is already very important to the
Davies Odell operation. Additional design and marketing resources will be
sought for that operation in order to broaden its product ranges and increase
its sales opportunities.

The Company has also decided to cease manufacture of Phillips rubber products
in Manchester during 2001 and to source these products from overseas. The
Phillips premises, which are freehold, will be sold. The Company regrets that
redundancies are an inevitable consequence of this decision and will work with
the employees to alleviate as far as possible the consequences.

Phillips sales are largely to UK markets where they have a strong brand
identity and customer base. The products will be manufactured by a well
established partner with ISO 9002 accreditation and distributed from our
existing warehouse in Bristol. Every effort is being made to ensure that our
customers receive continuity of supply and that their goodwill is maintained.

The toe cap business will also, during this year, begin the manufacture of
some of its products for export markets with an overseas partner. This will
enable the Bristol manufacturing facility to concentrate on the continuing
drive for manufacturing efficiency and the sale of higher value items.


Prospects

Davies Odell has begun the year satisfactorily and sales of lightweight EVA
flooring products and PPE equipment are continuing to grow. A new development
of finished protective clothing with high performance and impact protection
for motorcycle and other power sports applications is leading to expanding
sales, albeit from a low base.


The Dinkie-FCE toe cap business has begun the year with sales orders above
those for the same period of  2000. Taken together with a considerable
reduction in the cost base at Warmley, the outlook for 2001 is encouraging.

Phillips has a strong brand name and extensive product range and expansion of
the business in global markets should be possible once the re-organisation has
been completed and products are being sourced from a lower cost environment.




Richard Organ
Chairman



Profit and Loss Account
Year ended 31 December 2000


                                                       2000                1999
                                                      £'000               £'000

Turnover from continuing operations                  10,152              10,718
Cost of sales                                       (9,616)            (10,163)
Gross profit                                            536                 555
Net operating expenses                                (778)               (818)
Operating loss before exceptional item                (242)               (263)
Exceptional item
   Lease termination costs                             (59)                   -
Operating loss from continuing operations             (301)               (263)
Interest payable                                      (174)               (164)
Loss on ordinary activities before taxation           (475)               (427)
Taxation                                                  -                   -
Loss for the financial year                           (475)               (427)
Dividends                                                 -                   -
Loss for the year set against reserves                (475)               (427)

Loss per share, basic and diluted                   (3.22)p             (2.89)p





Balance Sheet
31 December 2000


                                                         2000              1999
                                                        £'000             £'000
Net assets employed

Fixed Assets
Intangible assets                                         470               496
Tangible assets                                         3,015             3,312
                                                        3,485             3,808
Current assets :
Stocks                                                  1,446             1,570
Debtors                                                 1,751             2,069
Cash at bank and in hand                                   17                18
                                                        3,214             3,657

Creditors : amounts falling due within one year       (2,850)           (2,965)
Net current assets                                        364               692
Total assets less current liabilities                   3,849             4,500
Creditors :
amounts falling due after more than one year            (717)             (828)
Provisions for liabilities and charges                      -              (65)
                                                        3,132             3,607

Capital and reserves

Called up share capital                                   738               738
Share premium                                             715               715
Revaluation reserve                                       528               536
Profit and loss account                                 1,151             1,618
Total equity shareholders' funds                        3,132             3,607


Cash Flow Statement
Year ended 31 December 2000


                                                              2000         1999
                                                             £'000        £'000
Reconciliation of operating profit to net cash inflow from
operating activities


Operating loss                                               (301)        (263)
Depreciation charges                                           428          401
Decrease in stocks                                             124          326
Decrease/(increase) in debtors                                 318        (121)
Decrease in creditors                                        (245)        (273)
Net cash inflow from operating activities                      324           70

Cash Flow Statement
Net cash inflow from operating activities                      324           70
Returns on investments and servicing of finance              (174)        (164)
Taxation                                                         -           62
Capital expenditure                                          (105)        (261)
Acquisitions                                                  (65)         (65)
Equity dividends paid                                            -         (89)
                                                              (20)        (447)
Financing                                                    (136)         (55)
Decrease in cash                                             (156)        (502)

Reconciliation of net cash flow to movement in net debt
Decrease in cash in the period                               (156)        (502)
Cash reduction from change in debt                             136           55
Change in net debt                                            (20)        (447)
Net debt at 1 January 2000                                 (2,158)      (1,711)
Net debt at 31 December 2000                               (2,178)      (2,158)





NOTES:

1.        The Annual Report and Financial Statements will be sent to all
shareholders. Further copies will be available to the public from the Company
Secretary at the Company's registered office, St Ivel Way, Warmley, Bristol
BS30 8TY.

2.        The calculation of loss per share is based on losses of £475,000
(1999, £427,000) and on 14,770,000 (1999, 14,770,000) ordinary shares.

3.        The abridged Accounts for the year ended 31 December 2000 and 1999
do not constitute statutory accounts and are an extract from the Company's
statutory accounts on which the auditors give an unqualified opinion.



FOR FURTHER INFORMATION CONTACT:


Ken Rees, Winningtons                0117 317 9477,  mobile [phone]
John Wakefield, Rowan Dartington     0117 933 0020
Geoff Martin, Dinkie Heel            0117 961 3163