Interim Results-Replacement

Leeds Group PLC 6 June 2000 The issuer has made the following amendment to the Interim Results announcement released today at 07:00 under RNS No 7200L. Changes have been made to the last three lines of the 'Group Cash Flow Statement.' These have been highlighted with an asterisk. All other details remain unchanged. The full corrected version is shown below. ------------------------------------------------------------------- Leeds Group PLC Interim Results for the six months to 31st March 2000 - Sales increased by £1.8m in constant currency terms compared with same period last year - Two acquisitions successfully integrated - Profit before tax and exceptional items increased 20% - Earnings per share before exceptionals increased to 3.5p from 2.8p - Dividend per share held at 1.0p - Recovery phase of strategy on track - Gearing higher primarily due to growth of leasing company 'During the last six months, we have made considerable progress in implementing the strategy to re-build the Company's profitability. We are taking steps not only to make the best of our manufacturing opportunities, but also to develop a profitable future in other sectors of the Group which offer more promise' Robert Wade, Chairman FULL STATEMENT BELOW Enquiries: Chris Marsden, Chief Executive Malcolm Wilson, Finance Director Fiona Tooley Leeds Group plc Citigate Dewe Rogerson Ltd Today: 0207 282 8000 (9.00am - 12.00pm) 0207 282 8000 Thereafter: 01943 876222 0121 631 2299 Leeds Group PLC Interim Results for the six months to 31st March 2000 STATEMENT BY THE CHAIRMAN, ROBERT WADE During the last six months, we have made considerable progress in implementing the strategy which the Board has developed to re-build the Company's profitability. Sales for the first half increased by £1.8m in constant currency terms when compared with the same period last year, and this has led to an increase of 20% in profit before tax and exceptional items. This performance is underpinned by investment in the areas that we have identified for creating our future growth : * In the Continental distribution division a merchanting company in Germany, Hemmers GmbH, has been acquired at a cost of DM 11.0m including assumed debt, to complement Itex, our subsidiary in Holland. Their two management teams are already developing plans which will enhance the effectiveness of both operations. * Leeds Leasing has enjoyed a period of outstanding growth with new business 120% ahead of last year, and the management team has been further strengthened to support our strategy of substantial organic growth in the next two years. At the same time we have started the consolidation of our textile manufacturing activities, concentrating on those areas where we can see both profit and cash generation, and the realisation of other assets. The complementary textile printing businesses of Calprina and Strines have been merged on to one site to reduce overheads and improve efficiency. In addition, Campo, our transfer printing business in Holland, which has been the only unprofitable subsidiary during the last year, was sold in May to the Management for Guilders 8m (£2.2m), plus a further Guilders 2m (£0.55m) dependent on performance. Our UK dyeing division has produced a satisfactory result in difficult conditions, and the dyehouse currently being commissioned at Galashiels will enhance potential. The new management team at Nemesis has made a most encouraging start, and additional investment has been authorised to increase our wide printing capacity in Italy. Further changes will follow in our textile divisions to take advantage of the changing opportunities to make profits. Group debt at 31st March, which was largely in Euros, was £16.9m excluding the proceeds of the Campo sale. The Group's gearing will increasingly reflect the growth in finance lease debtors of Leeds Leasing, and by the year end this is expected to represent more than 60% of our total debt. The exceptional item of £1.2m represents the cost of textile consolidation, and there will be further costs in this category during the months ahead. Against this, there will in due course be opportunities to sell properties that are no longer required. An interim dividend of 1p per share, the same as last year, will be paid on 3rd July 2000 to shareholders on the Register on 16th June 2000. These continue to be very difficult days for textile manufacturing in the UK and the effects are everywhere to be seen. Purchasing in Dollars and selling in Euros has been a damaging combination at a time when the two currencies have diverged by 25% over eighteen months. I am confident, however, that we are taking steps not only to make the best of our manufacturing opportunities, but also to develop a profitable future in other sectors of the Group which offer more promise. Leeds Group PLC Interim Results for the six months to 31st March 2000 Six months Six months to Twelve months to to 31st March 1999 30th September 1999 31st March £'000 £'000 2000 £'000 Turnover from continuing activities Existing 30,825 34,834 61,057 activities Acquisitions 3,864 - - 34,689 34,834 61,057 Cost of sales (26,022) (26,828) (46,997) Gross profit 8,667 8,006 14,060 Distribution costs (973) (645) (1,158) Administrative expenses (6,705) (5,596) (15,585) Operating profit/(loss) Existing activities 1,880 2,017 3,514 Acquisitions 342 - - 2,222 2,017 3,514 Exceptional items (1,233) (252) (6,197) 989 1,765 (2,683) Termination of a business operation - (1,184) (1,384) Profit/(loss) before interest 989 581 (4,067) Net interest payable (289) (401) (631) Profit/(loss) before taxation 700 180 (4,698) Taxation (251) (147) (440) Profit/(loss) after taxation 449 33 (5,138) Dividends (366) (366) (1,098) Transfer to/(from) 83 (333) (6,236) reserves Earnings/loss) per share before exceptional items 3.5p 2.8p 4.7p exceptional items (2.3p) (2.7p) (23.4p) after exceptional items 1.2p 0.1p (18.7p) Dividend per share 1.0p 1.0p 3.0p Leeds Group PLC Interim Results GROUP BALANCE SHEET 31st March 31st March 1999 30th September 1999 2000 £'000 £'000 £'000 Tangible fixed 26,282 34,137 27,243 assets Intangible 1,261 - - fixed assets Stocks 10,583 7,417 6,965 Debtors 21,018 21,698 15,575 Finance lease 8,840 5,501 6,329 debtors Cash at bank 1,154 2,185 2,809 and in hand Creditors: (29,568) (23,513) (16,524) amounts falling due within one year Net current 12,027 13,288 15,154 assets of which: due within one 7,279 10,646 12,163 year due after more 4,748 2,642 2,991 than one year Total assets 39,570 47,425 42,397 less current liabilities Creditors: amounts falling due after more (3,526) (3,772) (5,489) than one year Provisions for liabilities and charges (1,586) (1,666) (1,740) Deferred income (36) (497) (20) 34,422 41,490 35,148 Share capital and reserves: Share capital 9,150 9,150 9,150 Share premium 15,832 15,832 15,832 Profit and loss account 9,440 16,508 10,166 34,422 41,490 35,148 Reconciliation of movements in shareholders' funds: Result for the period 83 (333) (6,236) Exchange differences (809) (405) (844) Net transfer from shareholders' funds (726) (738) (7,080) Shareholders' funds at beginning of the 35,148 42,228 42,228 period Shareholders' funds at end of the period 34,422 41,490 35,148 Leeds Group PLC Interim Results GROUP CASH FLOW STATEMENT for the six months to 31st March 2000 Six months to Six months to Twelve months 31st March 31st March 1999 to 2000 £'000 30th £'000 September 1999 £'000 Net cash (outflow)/inflow from operating activities (3,791) 4,253 11,193 Returns on investments and servicing of (291) (411) (642) finance Taxation (228) (405) (1,660) Capital expenditure and financial (1,181) (1,575) (2,963) investment Acquisitions (net of cash and cash equivalents) (2,778) - - Equity dividends paid (732) (1,683) (2,050) Net cash (outflow)/inflow (9,001) 179 3,878 Translation difference 687 310 654 Loan acquired with subsidiary (1,079) - - Movement in net debt (9,393) 489 4,532 Net debt at beginning of the period (7,503) (12,035) (12,035) Net debt at the end of the period (16,896) (11,546) (7,503) Leasing Textiles Total £'000 £'000 £'000 As at 31 March 2000 Trading capital employed 7,884 43,434 51,318 Interest bearing net debt *(6,485)* *(10,411)* (16,896) Net assets *1,399* *33,023* 34,422 Net debt as a percentage of trading capital *82.3%* *24.0%* 32.9% employed Leeds Group PLC Interim Results NOTES TO THE INTERIM STATEMENT for the six months to 31st March 2000 1. The interim results which are not audited have been prepared on the basis of the accounting policies set out in the 1999 Annual Report. The figures for the year ended 30th September 1999 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. The Company purchased the trade and net assets of Hemmers GmbH in December 1999. It also purchased the trade and certain assets of Calprina Ltd in October 1999. The results of these two acquisitions are shown separately on the face of the profit and loss account. 3. The exceptional item of £1.233m relates to costs associated with the restructuring of the UK printing division. 4. Earnings per share have been calculated on an average of 36,598,603 (1999: 36,598,603) ordinary shares of 25p in issue during the period. 5. The interim dividend is payable on 36,598,603 ordinary shares. end IR KKAKDCBKKOAK

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