Interim Results - 6 Months to 30 September 1999

Creightons PLC
15 February 2000

                       Creightons PLC

Interim results of Creightons for the six months ended 30
September 1999


Chairman's Statement
Board and management changes

The first half of the year was characterised by
significant change in the management of your Company.
Peter Somers and Michael Gubbins both resigned from the
Board in September 1999. Bill Hamilton joined the Board
as Chief Executive in July 1999. On 4 November 1999,
William McIlroy joined the Board. William is a director
and shareholder of Oratorio  developments Limited, the
Company's largest shareholder. Mary Carney also joined
the Board on the same date as an independent non-
executive director. On 23 December 1999, Barry Dale
resigned as chairman of the Board and left the Company
and I took over as non-executive chairman on that date.

Trading review
Until the appointment of Bill Hamilton, the Company had
continued to suffer from high overhead costs and
deteriorating sales level and margins. Following his
arrival, Bill carried out a thorough review of the
business and recommended immediate cost reduction
measures which were implemented from August 1999 onwards,
which involved reducing the costs of administrative staff
and site costs.

Bill's executive management was strengthened in September
and October 1999 with the appointment of Roger Roberts
and Martin Stevens with responsibility for sales and
technical departments respectively. The new management
team's task has been to rebuild the customer base,
improve margins and reduce overhead costs.

Much has been achieved to date, although reorganisation
costs have had to be borne at the expense of cash flow.
The decline in sales levels and margins has, we believe,
been stemmed, but much work still needs to be done in
this area. Sales margins have, we believe, been
stabilised.

Most important, the losses in the previous financial year
have been significantly reduced in the first half and
this trend is continuing in the second half of the
financial year.

Results
The results for the 6 months to 30 September 1999 show an
improvement on the corresponding period last year but
remain unsatisfactory. Turnover in the 6 months was
£2.646 million (1998: £2.867 million), and the loss on
ordinary activities before taxation was £874,000 (1998:loss
£1,369,000). The loss per share was 4.4p (1998: loss 6.9p).
Net assets were £1.311 million (1998: £2.754 million).
Net indebtedness at 30 September 1999
was £1,926,000.

Fund raising
As explained in the commentary above, progress is being
made in stemming losses and restoring profits. The
turnaround has, however, involved a substantial cash cost
and the Company urgently needs additional funds to
provide it with sufficient working capital for its needs.
On 1 February 2000 we announced that we were in
discussions with our major shareholders to raise
additional capital for the Company. Details of an open
offer are set out in the prospectus of the Company dated 15
February 2000.

Future strategy
The past two years have been spent endeavouring to return
the core manufacturing operation to profit and grow it by
acquisition. For various reasons, this strategy has not
been successful. With the business now established, and,
following the proposed fund raising, with sufficient
working capital to allow it to expand over the next few
months, it is intended to seek to dispose of the
manufacturing business and turn the Company into a cash
shell. Suitable acquisition opportunities will then be
reviewed in sectors of the market more
favoured by investors.

Roger Lane-Smith
Non-executive Chairman

15 February 2000

Consolidated Profit and Loss Account
for the six months ended 30 September 1999

                          6 months to  6 months to    Year
                          30 September 30 September        
                                  1999       1998     1999
                                 £'000      £'000    £'000
Turnover                         2,646      2,867    5,589
Cost of sales                  (1,962)    (2,562)  (4,737)
Exceptional cost of sales            -          -    (235)
Gross profit                       684        305      617
Operating expenses             (1,049)    (1,231)  (2,185)
Exceptional operating            (447)      (421)    (355)
expenses
Operating loss                   (812)    (1,347)  (1,923)
Net interest payable              (62)       (22)     (56)
Loss on ordinary activities      (874)    (1,369)  (1,979)
before taxation
Taxation                            -          -       41
Loss on ordinary activities                               
after taxation and loss
sustained for the period        (874)    (1,369)  (1,938)
Earnings/(loss) per share       (4.4)p     (6.9)p   (9.8)p
Earnings/(loss) per share       (2.1)p     (4.8)p   (6.8)p
before exceptional items
Earnings/(loss) per share       (2.3)p     (2.1)p   (3.0)p
on exceptional items
Fully diluted                   (4.4)p     (6.9)p   (8.9)p
earnings/(loss) per share


See note 3 concerning the                                 
calculation of diluted
earnings per share.



Consolidated Balance Sheet
as at 30 September 1999

                        30 September 30 September 31 March                
                                  1999       1998     1999
                                 £'000      £'000    £'000
Fixed Assets                                              
Tangible assets                  3,368      3,642    3,522
Current Assets                                            
Stocks                             898      1,370    1,046
Debtors                            877        942      913
                                 1,775      2,312    1,959         
Creditors                                                 
Amounts falling due within      (3,340)    (2,588)  (2,746)
one year
Net current liabilities         (1,565)      (276)    (787)
Total assets less current        1,803      3,366    2,735
liabilities
Creditors                                                 
Amounts falling due after         (492)      (612)    (550)
more than one year
Net Assets                       1,311      2,754    2,185
Capital and Reserves                                      
Called up share capital          3,975      3,975    3,975
Share premium account              196        196      196
Other reserves                      38         38       38
Profit and loss account         (2,898)    (1,455)  (2,024)
Equity Shareholders' Funds       1,311      2,754    2,185

Notes to the Interim Report

1.   The  interim report has been prepared using the same
     accounting  policies  as were used  for  the  annual
     report  and financial statements for the year  ended
     31 March 1999.

     The  1998  profit  and  loss  account  corresponding
     figures   have  been  restated  to   show   a   more
     appropriate  allocation of  costs  between  cost  of
     sales  and  operating expenses. There  has  been  no
     impact on operating loss.

     The  interim financial statements do not  constitute
     statutory accounts as they are unaudited. They have,
     however, been reviewed by the auditors, whose report
     is included. Full year figures for the year ended 31
     March  1999  have  been extracted  from  the  annual
     report and financial statements for that year  which
     received an unqualified audit opinion and have  been
     filed with the Registrar of Companies.

2.   The  interim financial information has been prepared
     on   a  going  concern  basis.  The  Directors  have
     prepared  projected  cash  flow  information  for  a
     period of more than two years from the date of  this
     interim  report which assumes that the current  open
     offer to raise £1.3 million net of cash expenses  is
     successfully completed and that the current  banking
     facilities are renewed at the next review date of 30
     June  2000.  Pending receipt of the funds  from  the
     open  offer,  the Company has agreed  with  a  major
     shareholder,    Oratorio    Developments     Limited
     ('Oratorio') that Oratorio will provide an unsecured
     bridging  loan  to enable the Company  to  meet  its
     immediate commitments.

     On  the  basis  of these assumptions  the  Directors
     consider  that  the  Company  and  the  Group   will
     continue  to operate within the facilities currently
     agreed  with  its  bankers which  are  repayable  on
     demand.   However,  inherently,  there  can  be   no
     certainty in relation to these matters.
     
     The  interim financial information does not  include
     any adjustments that would result from a failure  to
     raise funds from the open offer or from a withdrawal
     of  the bridging loan from Oratorio or the overdraft
     and other facilities by the Company's bankers.

3.   Earnings/(loss) per share for the six  months  ended
     30  September 1999 has been calculated on 19,876,523
     shares, being the average number of shares in  issue
     during the period. The earnings/(loss) per share for
     the  year  ended  31 March 1999 and the  six  months
     ended  30  September  1998 have been  calculated  on
     19,876,523  shares,  being  the  average  number  of
     shares in issue during both these periods.

     Fully   diluted   earnings/(loss)   per   share   is
     calculated by adding share options where  the  price
     payable is below the market price. Share options are
     not  taken  into  account  where  it  is  considered
     unlikely   that  the  individuals  concerned   would
     exercise  those  options,  for  example  where   the
     exercise  price  is significantly  higher  than  the
     market  price. Since all the existing share  options
     have  exercise prices that are significantly  higher
     than  the  market prices during the period,  it  has
     been   assumed   that  none  would   be   exercised.
     Consequently, the fully diluted earnings/(loss)  and
     costs per share are the same as those calculated  on
     an undiluted basis.

4.   No  taxation charge has been included in view of the
     loss   sustained  and  the  significant  accumulated
     losses available from previous periods.

5.   The  interim  report is being sent to  shareholders.
     Further  copies can be obtained from  the  Company's
     registered  office,  Unit 1, Water  Lane  Industrial
     Estate,  Storrington, Pulborough, West Sussex,  RH20
     3DP.

Review Report by the Auditors

We  have  reviewed the interim financial information  for
the six months ended 30 September 1999 set out on pages 2
to  4  which  is  the responsibility  of,  and  has  been
approved  by,  the  Directors. Our responsibility  is  to
report on the results of our review.

Our  review was carried out having regard to the bulletin
'Review of Interim Financial Information', issued by  the
Auditing    Practices   Board.   The   review   consisted
principally  of  applying analytical  procedures  to  the
underlying  financial data, assessing whether  accounting
policies  have  been  consistently  applied  and   making
enquiries  of  management responsible for  financial  and
accounting policies.

Going concern
In  forming our opinion, we have considered the  adequacy
of   the  disclosures  made  in  note  2  concerning  the
uncertainty  as  the  adequacy  of  the  Company's   bank
overdraft  facility and the requirement  to  raise  funds
from  the  Open  Offer and from a bridging  loan  from  a
Shareholder.  In  view  of  the  significance   of   this
uncertainty, we consider that it should be drawn to  your
attention,  but  our  opinion is not  qualified  in  this
respect.

On the basis of our review:

  In  our  opinion, the interim financial information
  has   been   prepared  using  the  accounting  policies
  consistent with those adopted by Creightons plc in  its
  financial statements for the year ended 31 March  1999;
  and

  We are not aware of any material modifications that
  should be made to the interim financial information  as
  presented.

KPMG Audit Plc
Chartered Accountants

Crawley
15 February 2000