Interim Results

Leeds Group PLC
26 June 2002



Issued by Leeds Group plc
Date: Wednesday 26th June 2002                                 Embargoed: 7.00am


                                Leeds Group plc

              Interim Results for the six months to 31 March 2002


STATEMENT BY THE CHAIRMAN, BILL CRAN

At the Annual General Meeting held on 11th February, Robert Wade told
shareholders that in the current financial year, Leeds Leasing was showing
further increases in sales and profits but that the performance of the remaining
textile businesses, and particularly Nemesis, the Italian subsidiary, continued
to decline. Having succeeded Robert as Chairman at the conclusion of the AGM, I
can confirm that his comments are borne out in the interim accounts.  However, I
am also pleased to report that further progress has been achieved in
implementing our strategic withdrawal from textile manufacturing businesses both
during and since the period under review.

Group profit before tax and exceptional items was £195,000 (2001: £154,000)
although within this total there were considerable changes in the performances
of individual businesses:

Leeds Leasing recorded pre-tax profit of £451,000, an increase of 19% on last
year. The lease book at 31st March 2002 stood at £18.5m, representing growth of
37% over March 2001. The second half of the year, traditionally stronger for
Leeds Leasing, has begun in an encouraging fashion, and there is every reason to
believe the recent trend of profitable growth can continue.

Import & Distribution saw operating profits reduce by £68,000 to £310,000.
Hemmers, based in Germany, matched last year's performance but the results of
Itex in Holland declined and, as a consequence, we announced on 18th April 2002
our intent, subject to consultation, to withdraw from Holland and continue
business in Western Europe from our German company. The market conditions
favouring suppliers from the Far East make textile manufacturing in Europe
unattractive but conversely, work in favour of an importing business. We believe
our proposed action will increase the profitability of the Division, while
releasing cash from synergistic stock reduction and from the sale of surplus
freehold property. The decision of the Dutch employment authorities is expected
in the near future, and if favourable will enable this project to be completed
during this financial year.

Nemesis suffered a decline of 25% in sales from 2001, and in a business heavily
dependent on volumes this led to a fall in operating profit from £747,000 last
year to just £28,000 despite management action to control overheads, including a
reduction of more than 13% in the workforce. We continue to explore
opportunities to divest this business.

The operating profit of £192,000 reported as discontinued operations comprises
the results of the UK Dyeing Division and of Sharps Fabric Printers, which were
sold on 17th January and 6th June respectively. The sale of the UK Dyeing
Division resulted in an exceptional loss of £4,231,000 of which £3,388,000 was
in respect of goodwill previously written off on acquisition. Included in the
comparative figure for discontinued operations last year are the losses of the
UK Printing Division from which we have now withdrawn.

The board does not propose the payment of an interim dividend (2001: 1p).


continued.....


                                      -2-


                                Leeds Group plc
                                Interim Results


STATEMENT BY THE CHAIRMAN, BILL CRAN

In the 12 months to 31st March 2002, borrowings by Leeds Leasing increased by
£3.7m, which, together with retained earnings, has financed the increase of
£4.9m in the lease book. In the same period, net borrowings in our textile
businesses decreased by £7.0m with there being a net cash surplus in the UK of
£3.3m. Net borrowings in the textile businesses have continued to fall since
31st March as a result of the sale of Sharps Fabric Printers, and the sale for
£2.7m of three properties previously utilised in the UK Printing Division.

We are currently holding discussions with the bankers to our European businesses
with a view to re-financing those businesses with debt secured on local assets
without the need for parent company guarantees. This is a necessary first step
before we can apply to the High Court for approval for the capital
reconstruction that will be required for us to resume dividends or otherwise to
return surplus cash to shareholders.

In conclusion, we are pleased to report the continuing growth of Leeds Leasing
and further progress in implementing our strategic withdrawal from textile
manufacturing.  We are currently marketing our one remaining UK property to
maximise value prior to disposal, which we hope to achieve during the coming
months.



ENQUIRIES

Chris Marsden, Chief Executive
Malcolm Wilson, Finance Director
Leeds Group plc

Tel: [phone]

                                      -3-


                                 Leeds Group plc
                                 Interim Results
                            Profit and Loss Account


                                               Six months to          Six months to           Twelve months to
                                               31 March 2002          31 March 2001          30 September 2001
                                                        £000                   £000                       £000


Turnover
   Continuing operations                              15,643                 19,828                     33,739
   Discontinued operations                             3,902                 13,894                     22,491
                                                      19,545                 33,722                     56,230
Cost of sales                                       (14,304)               (26,809)                   (44,687)
Gross profit                                           5,241                  6,913                     11,543
Distribution costs                                     (645)                  (966)                    (1,756)
Administrative expenses                              (3,640)                (4,993)                   (12,520)

Operating profit/(loss)
   Continuing operations                                 764                  1,495                      1,480
   Discontinued operations                               192                (541)                        (476)
                                                       -----                  -----                    -------

                                                         956                    954                      1,004
   Exceptional items                                       -                      -                    (3,737)
                                                         956                    954                    (2,733)
Profit on sale of land and buildings                       -                      -                      1,185
Loss on sale or termination of a

 business operation                                  (4,231)                      -                   (12,057)
(Loss)/profit before interest                        (3,275)                    954                   (13,605)
Net interest payable                                   (761)                  (800)                    (1,606)
(Loss)/profit before taxation                        (4,036)                    154                   (15,211)
Taxation                                                (99)                  (132)                      2,089
(Loss)/profit after taxation                         (4,135)                     22                   (13,122)
Dividends                                                  -                  (366)                      (366)
Unrecovered loss                                     (4,135)                  (344)                   (13,488)


(Loss)/earnings per share
   before exceptional items                             0.3p                   0.1p                     (2.7)p
   exceptional items                                 (11.6)p                      -                    (33.2)p
   after exceptional items                           (11.3)p                   0.1p                    (35.9)p

Dividend per share                                         -                   1.0p                       1.0p


                                      -4-


                                Leeds Group plc
                                Interim Results
                              Group Balance Sheet

                                                               31 March           31 March           30 September
                                                                   2002               2001                   2001
                                                                   £000               £000                   £000


Fixed assets
Intangible assets                                                 1,069              1,167                  1,123
Tangible assets                                                  11,494             24,913                 16,074
                                                                 12,563             26,080                 17,197
Current assets
Stocks                                                            7,394             12,563                 10,109
Debtors                                                          12,516             19,094                 14,920
Finance lease debtors                                            18,471             13,522                 16,702
Cash at bank and in hand                                          3,312                266                    215
                                                                 41,693             45,445                 41,946
Creditors: amounts falling due
           within one year                                      (21,957)           (31,105)               (26,639)
Net current assets                                               19,736             14,340                 15,307
Of which:
   due within one year                                            9,406              6,737                  5,501
   due after more than one year                                  10,330              7,603                  9,806

Total assets less current liabilities                            32,299             40,420                 32,504
Creditors: amounts falling due
           after more than one year                              (9,946)            (7,226)                (9,277)
Provision for liabilities and charges                             (132)            (1,896)                   (56)
Accruals and deferred income                                          -               (50)                  (107)
Net assets                                                       22,221             31,248                 23,064

Share capital and reserves:
Called up equity share capital                                    9,150              9,150                  9,150
Share premium account                                            15,832             15,832                 15,832
Profit and loss account                                         (2,761)              6,266                (1,918)
Equity shareholders' funds                                       22,221             31,248                 23,064

Reconciliation of movements in shareholders' funds:

Result for the period                                           (4,135)              (344)               (13,488)
Goodwill written back                                             3,388                  -                  5,173
Exchange differences                                               (96)                430                    217
Net transfer (from)/to shareholders' funds                        (843)                 86                (8,098)
Shareholders' funds at beginning of the period                   23,064             31,162                 31,162
Shareholders' funds at end of the period                         22,221             31,248                 23,064


                                      -5-


                                 Leeds Group plc
                                 Interim Results
                           Group Cash Flow Statement


                                                          Six months to        Six months to        Twelve months to
                                                          31 March 2002             31 March            30 September
                                                                   £000                 2001                    2001
                                                                                        £000                    £000


Net cash inflow/(outflow) from operating activities               1,289                (278)                 (2,786)
Returns on investments and servicing of finance                   (761)                (800)                 (1,606)
Taxation                                                          (173)                (248)                     126
Capital expenditure and financial investment                       (52)              (2,070)                   (434)
Acquisitions and disposals
    (net of cash and cash equivalents)                            4,089                  540                     943
Equity dividends paid                                                 -                (732)                 (1,098)


Net cash inflow/(outflow)                                         4,392              (3,588)                 (4,855)
Translation difference                                              153                (442)                   (399)

Movement in net debt                                              4,545              (4,030)                 (5,254)
Net debt at beginning of the period                            (25,696)             (20,442)                (20,442)


Net debt at the end of the period                              (21,151)             (24,472)                (25,696)


                                                                Leasing             Textiles                   Total
                                                                   £000                 £000                    £000
As at 31 March 2002


Trading capital employed                                         17,500               25,872                  43,372
Interest bearing net debt                                      (14,311)              (6,840)                (21,151)
Net assets                                                        3,189               19,032                  22,221

Net debt as a percentage of:
     trading capital employed                                     81.8%                26.4%                   48.8%

     net assets                                                  448.9%                35.9%                   95.2%


                                      -6-


                                 Leeds Group plc
                                 Interim Results
                                     Notes


1.   The interim results, which are not audited, have been prepared on the
     basis of the accounting policies set out in the 2001 Annual Report.  The 
     figures for the year ended 30th September 2001 have been abridged from the 
     Group's full accounts which have been filed with the Registrar of Companies 
     and on which the Company's auditors gave an unqualified report.

2.   Earnings per share have been calculated on an average of 36,598,603
     (2001: 36,598,603) ordinary shares of 25p in issue during the period.

3.   The table below sets out a segmental analysis of the Group's operations.

                                           Turnover                        (Loss)/profit before taxation
                              31 March    31 March      30 September    31 March    31 March      30 September
                                  2002        2001              2001        2002        2001              2001
                                  £000        £000              £000        £000        £000              £000


Leasing                          1,713       1,412             3,010         912         751             1,683
Import & Distribution            6,009       7,809            14,969         310         378               601
Central costs                        -           -                 -       (486)       (381)             (753)
                                 7,722       9,221            17,979         736         748             1,531
Nemesis                          7,921      10,607            15,760          28         747              (51)
Continuing operations           15,643      19,828            33,739         764       1,495             1,480
Discontinued operations          3,902      13,894            22,491         192       (541)             (476)
                                19,545      33,722            56,230         956         954             1,004
Exceptional items                                                              -           -           (3,737)
Profit on sale of land and buildings                                           -           -             1,185
Loss on sale or termination of a
    business operation                                                   (4,231)           -          (12,057)
Interest
   Leasing                                                                 (461)       (372)             (796)
   Textiles                                                                (300)       (428)             (810)
                                                                           (761)       (800)           (1,606)

(Loss)/profit before taxation                                            (4,036)         154          (15,211)


4.   The UK Dyeing Division was sold to management on the 17th January 2002.  
     The results for this division have been shown as discontinued operations     
     within the accounts.  The loss on termination of the business can be 
     analysed as follows:
                                                                                 £000

Loss on sale                                                                      843
Goodwill written back                                                           3,388
                                                                                4,231


5.   Sharps Fabric Printers was sold to management on the 5th June 2002.  The 
     results for this division have been shown as discontinued operations within
     the accounts.  This transaction has not been reflected in these accounts.


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