Final Results - Year Ended 1 April 2000

Storehouse PLC
25 May 2000


Preliminary results for the 53 weeks ended 1 April 2000

                STOREHOUSE ANNOUNCES PRELIMINARY RESULTS

-    Group operating profit £13.5m* (£104.3m*)
     
-    Mothercare returns to profit in second half
     
-    Storehouse to become Mothercare plc
     
-    Mothercare management changes announced
     
-    Sale of Bhs completed - £224m received
     
-    Cash return to shareholders of approximately £100m proposed
     (equivalent to 23 pence per share)

*before exceptional items.


Commenting today, Alan Smith, Storehouse Chairman, said:

'With the completion of the sale of Bhs, we can now focus on
delivering Mothercare's full potential.  I am delighted that Chris
Martin has become Chief Executive of Mothercare.  He led the strategic
review of this business last Summer and will now lead the acceleration
of the Mothercare recovery programme put in place last Autumn, which
is already showing encouraging signs.'


Enquiries to:
Alan Smith, Chairman, Storehouse plc                       020 7339 2115
Chris Martin, Chief Executive, Mothercare                  020 7339 2152
Susan Gilchrist/Victoria Sabin, Brunswick Group Limited    020 7404 5959


Group results

The performances of both Bhs and Mothercare in the financial year
1999/2000 continued to be affected by the adverse factors which have
been characteristic of the clothing and general retail merchandise
sectors over the last two years, including price deflation, increasing
costs and new competition.

However, the Mothercare recovery programme, as set out in November, is
beginning to have an effect, with the business returning to profit in
the second half of the year.  In particular, the board has been
encouraged by the performance of the large format Mothercare World
stores.

Group operating profit before exceptional items was £13.5 million
compared to £104.3 million last year on sales of £1266.1 million
(£1328.6 million) which were down by 4.7 per cent. Following an
interest charge of £6.5 million, profit before tax and exceptional
items was £7.0 million (£98.6 million).

Earnings per share before exceptional items was 1.6p (16.8p).  As with
the interim dividend, no final dividend is proposed (9.1p).

In view of the trading conditions, strict cash controls were
implemented.  Net debt at the year end was £69.4 million (£91.2
million).  Balance sheet gearing was 30.8 per cent (14.8 per cent).


Disposal of Bhs

On 7 April 2000 the board announced that Storehouse had reached
agreement to dispose of Bhs to Measuremarket Ltd, a company wholly
owned by Philip Green and his family. The disposal was approved by
Storehouse shareholders at an Extraordinary General Meeting on 16 May
2000.  Following completion of the transaction on 22 May 2000, an
initial cash consideration of £224 million has been received including
£24 million arising from movements in working capital.  The final
level of consideration will be subject to a completion statement.

It is the board's intention to return approximately £100 million
(equivalent to 23p per share) of the proceeds of the disposal of Bhs
to shareholders, repay all group debt, and to apply the remainder of
the proceeds, net of costs, to the development of Mothercare.  The
effect of this will be to provide a secure financial base for the
Mothercare business.

The board will seek approval at the Annual General Meeting to change
the name of Storehouse plc to Mothercare plc.


Bhs results

Sales for the year ended 1 April 2000 were £822.4 million (£856.2
million).  UK like-for-like sales in the first half year were 9.2 per
cent lower and 4.4 per cent lower in the second half year, resulting
in a reduction of  6.5 per cent for the year as a whole (excluding the
53rd week).  UK gross margin (excluding the 53rd week) fell by 2.3
percentage points.  Sales to Bhs overseas franchisees (excluding the
53rd week) were down 54.7 per cent compared to last year from £42.5
million to £19.3 million.

Profit from retail operations before exceptional items, interest and
tax was £13.1 million (£86.4 million).


Mothercare results

Profit from retail operations before exceptional items, interest and
tax amounted to £0.4 million (£17.9 million) with a return to profit
in the second half year of £3.7 million.  Excluding the disposal
stores, the ongoing Mothercare business generated a profit of £5.7
million, with sales in the UK (excluding the 53rd week) up 1.5 per
cent (flat on a like-for-like basis) and gross margins down 2.0
percentage points.  In the second half year UK sales grew 3.3 percent
(excluding the 53rd week) and gross margins declined 0.3 percentage
points on last year.  Sales to overseas franchisees declined by 25.4
percent (excluding the 53rd week) with a second half decline of 5.3
percent.

Of the 82 disposal stores there were 20 remaining at the year end.
Since the year end, contracts have been exchanged on ten of these and
a further four are under offer.


Exceptional charge
An exceptional charge of £396.4 million has been taken which relates
to one-off costs in four categories: the loss on disposal of Bhs; the
initial implementation of the turnaround plan at Bhs as announced in
November; the restructuring at Mothercare required as part of the
recovery programme set out in November; and the break-up of the
Storehouse head office.


Management
As a result of the disposal of Bhs, Stephen Tague, managing director
of Bhs and executive director of Storehouse, will be leaving the group
at the end of May.

Chris Martin, currently group finance director at Storehouse, will
become CEO of Mothercare with immediate effect.

The Mothercare business has previously been operated as three separate
divisions: Mothercare UK, Mothercare Direct and Mothercare
International, each with their own management teams reporting directly
to the Storehouse board.  In order to drive the Mothercare recovery
programme more effectively through the three delivery channels, both
in the UK and internationally, these divisions have been integrated in
a new Mothercare structure.  These changes will ensure that products
and services across all divisions are developed to deliver the
Mothercare brand potential with greater consistency in UK and overseas
stores, as well as through the catalogue and Mothercare.com.

As a result of the elimination of the role of managing director at
Mothercare UK, Greg Tufnell has left the business.


Mothercare strategy
The Mothercare recovery programme set out within the group's interim
results in November 1999 aims to restore Mothercare's brand position
as the destination store for all the needs of parents and young
children, offering the widest range of clothing, hardware and toys for
the pre-school child.  This is being delivered through three channels:
Mothercare UK stores; Mothercare International; and Mothercare Direct,
which includes the Direct mail order catalogue and Mothercare.com, the
new transactional web site to be launched in June 2000.  The
combination of these delivery channels will provide the customer with
maximum access to Mothercare products and services.


Products
Good progress has consistently been achieved over the last three years
in the product areas of home, travel and toys.  These ranges already
successfully combine Mothercare's own-brand products with other well-
known brands across a full range of price points.

Mothercare will provide the same comprehensive coverage for the pre-
school child in its clothing ranges, through a wider and deeper offer
of Mothercare branded products as well as selected well-known branded
childrenswear.  This spring, a number of new clothing brands including
Oilily, Osh Kosh, Chicco and Petit Bateau have been introduced, on a
trial basis, to the new Mothercare World store in Kew, Surrey.  These
brands are to be introduced into a further 15 Mothercare World stores
over the coming months.


UK Stores
The expansion of the successful Mothercare World chain (stores larger
than 10,000 sq ft) is central to the future growth of Mothercare.
Mothercare World will carry the full range of merchandise and,
increasingly, also offer advice and new support services to customers.
It is planned that 40 new Mothercare World stores will be opened over
the next three to four years, including new locations and re-sites.
This will bring the total number of Mothercare World stores in the
chain to 100.

The Mothercare high street store will provide a destination range of
clothing for babies and pre-school children, together with a range of
hardware and toys tailored to the local market.  The sale and closure
of 82 of the under-performing high street Mothercare stores in the
portfolio is nearing completion.  The management team will continue to
review the portfolio on a market by market basis as additional
Mothercare World stores are opened.


Mothercare Direct
Relaunched last summer, the Mothercare Direct mail order catalogue
achieved sales of £7 million, up on last year, and provides a solid
base from which to develop the second Direct channel, Mothercare.com.

Mothercare.com, a fully transactional web site, will be launched in
June of this year. The site will provide a range of Mothercare
products as well as an extensive information service, chat rooms and
bulletin boards.  A strong focus has been placed on ensuring that
fulfilment and call centre systems are in place and fully tested prior
to the launch of the site.


Mothercare International
The progress being made with the Mothercare recovery programme
provides a sound foundation for the further development of the
Mothercare International business which currently operates in 36
countries.


Current trading
Sales in the first seven weeks in the UK ongoing business increased by
5.3%, a like-for-like increase of 3.4%, and margins were up year on
year, continuing the improving trend seen in the second half.


Preliminary announcement of results
For the 53 weeks ended 1 April 2000
(1999 - 52 weeks ended 27 March 1999)
                                                                        
                  Before    Excep-             Before                   
                  excep-    tional             excep-    Excep-         
                  tional     items             tional    tional         
                   items     (Note     Total    items     items    Total
                                3)
                    2000      2000      2000     1999      1999     1999
          Notes       £m        £m        £m       £m        £m       £m
                                                                        
Turnover     1   1,266.1         -   1,266.1  1,328.6         -  1,328.6
                 _______   _______   _______  _______   _______  _______
Profit from  2                                                          
 retail                                                                 
 operations         13.5    (92.8)    (79.3)    104.3     (6.2)     98.1
                                                                        
Exceptional  3                                                          
 items                 -   (303.6)   (303.6)        -   (12.1)    (12.1)
                                                                        
Interest     4     (6.5)         -     (6.5)    (5.7)         -    (5.7)
                 _______   _______   _______  _______   _______  _______
Profit                                                                  
 before                                                                 
 taxation            7.0   (396.4)   (389.4)     98.6    (18.3)     80.3
                                                                        
Taxation           (0.3)         -     (0.3)   (27.6)       1.1   (26.5)
                 _______   _______   _______  _______   _______  _______
Profit/                                                                 
 (Loss) for                                                             
 the                                                                    
 financial                                                              
 year                6.7   (396.4)   (389.7)     71.0    (17.2)     53.8
                 _______   _______   _______  _______   _______  _______
Dividend     5                                                          
 per share
-  Final                                   -                        5.4p
-  Full                                    -                            
   year                                                             9.1p
                                                                        
Earnings     6                                                          
 per share
-  Normal           1.6p             (92.8)p    16.8p              12.7p
-  Diluted          1.6p             (92.8)p    16.7p              12.6p


1.   Turnover
     Turnover by division (excluding sales taxes) comprises:

                                                  2000           1999
                                                    £m             £m
                                                                     
   Bhs - discontinued businesses                 822.4          856.2
   Mothercare  - continuing businesses           443.7          472.4
                                              ________       ________
                                               1,266.1        1,328.6
                                              ________       ________


2.   Profit from Retail Operations
     Profit from Retail Operations before exceptional items by
     division comprises:
                                                  2000           1999
                                                    £m             £m
                                                                     
   Bhs - discontinued businesses                  13.1           86.4
   Mothercare - continuing businesses              0.4           17.9
                                              ________       ________
                                                  13.5          104.3
                                              ________       ________

     The depreciation charge for the year amounted to £66.6 million
     (1999 - £63.2 million).  The depreciation charge attributable to
     continuing operations in 2000 was £14.7 million.


3.   Exceptional Items

     The exceptional items can be summarised as follows:

                                 Continuing  Discontinued       Total
                                         £m            £m          £m
   Cost of sales                     (40.3)        (43.6)      (83.9)
                                                                     
   Administrative expenses            (8.0)         (0.9)       (8.9)
                                   ________      ________    ________
   Total charged to retail                                           
     loss (a)                        (48.3)        (44.5)      (92.8)
                                                                     
   Profit/(loss) on disposal                                         
     of Stores (b)                      7.2         (3.4)         3.8
                                                                     
   Provision for costs of                                            
     separation (c)                   (6.8)             -       (6.8)
                                                                     
   Provision for loss on                                             
     disposal of Bhs (d)                  -       (300.6)     (300.6)
                                   ________      ________    ________
                                                                     
   Total exceptional items           (47.9)       (348.5)     (396.4)
                                   ________      ________    ________


(a)  Exceptional costs charged to the loss from retail operations

     This consists of the loss on the write-down of stock resulting from
     the restructuring plans announced in November 1999, the impairment
     charge for fixed assets at Mothercare, the pre launch costs of
     Mothercare.com incurred before 1 April 2000, the provision for
     redundancies and other related operating costs arising from the Bhs
     and Mothercare store closure programmes.  In addition there are
     other one off costs including the cost of the strategic review; the
     compensation paid to two directors for loss of office in accordance
     with their service contracts and the write-down of the shares held
     by the Storehouse employee trusts in accordance with UITF 13 and
     FRS 11.  The total costs of these items has been charged to cost of
     sales and administration expenses as set out above.

(b)  Profit or loss on disposal of stores:

     During the year the group has disposed of a number of stores
     arising from the Mothercare store disposal programme.  In addition
     the group's interests in the freehold of four Bhs stores have been
     sold.  As a result the group has generated a net profit on disposal
     of stores of £24.3 million and generated cash on the disposal of
     tangible fixed assets of £49.0 million. Provision for the loss on
     disposal of stores is £20.5 million including the cost of the six
     Bhs stores provided at the half year.

(c)  Costs of separation of Bhs and Mothercare:

     Provision of £6.8 million has been made for the costs of separating
     the Bhs and Mothercare businesses and relocating Storehouse into
     the Mothercare head office.

(d)  Provision for loss on disposal of Bhs:

     On 27 March 2000, the group announced that it had signed heads of
     terms with Measuremarket Limited for the disposal of Bhs.  The
     disposal was completed on 22 May 2000. Provision has been made for
     the estimated loss on the date of disposal of £300.6 million which
     included direct costs of £3.6 million.

There is no tax effect as a result of the exceptional items.  The net
cash impact of the exceptional items in 1999/2000 was a cash inflow of
£43.7 million. Excluding the net proceeds on the disposal of Bhs the
estimated cash outflow in the continuing business in 2000/2001 as a
result of these exceptionals is £12.2 million.


4.   Interest
                                                       2000       1999
                                                         £m         £m
                                                                      
   Interest receivable                                  2.4        3.4
   Interest payable - banks loans and overdrafts      (8.1)      (7.4)
   Obligations under property leases                  (0.6)      (1.6)
   Obligations under finance leases                   (0.2)      (0.1)
                                                    _______    _______
                                                      (6.5)      (5.7)
                                                    _______    _______


5.   Dividend

     No final dividend has been proposed (1999 - 5.4p per share).


6.   Earnings Per Share
                                                      2000        1999
                                                                      
   Average number of ordinary shares in issue       420.2m      423.5m
   Diluted impact of options including                                
     Option 2000                                         -        0.6m
   Diluted impact of LTIP shares                      0.8m        0.2m
                                                  ________    ________
   Average number of potential ordinary                               
     shares in issue                                421.0m      424.3m
                                                  ________    ________
   (Loss)/profit for the financial year          £(389.7)m      £53.8m
   Profit for the financial year excluding                            
     exceptional items                               £6.7m      £71.0m
   (Loss)/earnings per share                       (92.8)p       12.7p
   Earnings per share excluding exceptional                           
     items                                            1.6p       16.8p
   Diluted (loss)/earnings per share               (92.8)p       12.6p



     Reconciliation of movement in shareholders' funds
                                                       2000       1999
                                                         £m         £m
                                                                      
   Profit for the financial year                    (389.7)       53.8
   Dividends                                              -     (38.6)
   New share capital subscribed                           -        1.6
                                                    _______    _______
   Net (decrease)/increase in shareholders' funds   (389.7)       16.8
   Opening shareholders' funds                        615.3      598.5
                                                    _______    _______
   Closing shareholders' funds                        225.6      615.3
                                                    _______    _______
                                                                      

Note: This preliminary announcement of results does not constitute
      statutory accounts.  The preliminary announcement has been
      extracted from the statutory accounts of Storehouse plc for 2000,
      on which the auditors have given an unqualified auditors' report
      and which have not yet been filed with the Registrar of Companies.


Summarised Group Balance Sheet at 1 April 2000
(1999 - 27 March 1999)
                                                     2000       1999
                                                       £m         £m
                                                                    
Fixed Assets                                                        
Tangible Assets*                                    319.6      658.7
Investments                                           1.5        6.5
                                                  _______    _______
                                                    321.1      665.2
Current Assets                                                      
Stocks                                              118.7      185.2
Debtors                                              65.2       98.4
Cash at bank and time deposits                       51.3       48.8
                                                  _______    _______
                                                    235.2      332.4
Creditors: Amounts falling due within one year    (257.4)    (323.6)
                                                  _______    _______
Net Current (liabilities) Assets                   (22.2)        8.8
                                                  _______    _______
                                                                    
Total Assets less current liabilities               298.9      674.0
                                                                    
Creditors: Amounts falling due after one year      (11.6)     (27.3)
                                                                    
Provisions for liabilities and charges             (61.7)     (31.4)
                                                  _______    _______
Net assets                                         225.6*      615.3
                                                  _______    _______
                                                                    
Shareholders' Funds                                 225.6      615.3
                                                  _______    _______
                                                                    
Net debt                                           (69.4)     (91.2)
                                                  _______    _______
                                                                    
Net gearing                                         30.8%      14.8%
                                                                    
Net assets per share                                  53p       145p

*    The balance sheet includes the impact of the loss on disposal
     of Bhs of £300.6 million which has been reflected as a
     provision against tangible fixed assets.


Analysis of the Proforma Continuing Group Balance Sheet at
1 April 2000 excluding net debt
                                                     Continuing
                                                       business
                                                             £m
Fixed assets                                                   
Tangible fixed assets                                      92.5
Investments                                                 1.5
                                                        _______
                                                           94.0
                                                        _______
Current assets                                                 
Stocks                                                     39.8
Debtors                                                    31.7
                                                        _______
                                                           71.5
Creditors: amounts falling due within one year           (59.8)
                                                        _______
Net current assets                                         11.7
                                                        _______
Total assets less current liabilities                     105.7
Creditors: amounts falling due after one year             (1.2)
Provisions for liabilities and charges                    (8.5)
                                                        _______
Net assets excluding net debt                              96.0
                                                        _______



Summarised Cash Flow Statement
For the 53 weeks ended 1 April 2000
(1999 - 52 weeks ended 27 March 1999)
                                                 2000         1999
                                                   £m           £m
                                                                  
Retail profit before exceptionals                13.5        104.3
Depreciation                                     66.6         63.2
Working Capital                                  20.4          0.4
Other                                            (5.3)        (1.0)
                                              _______      _______
Cash flow from operations                        95.2        166.9
                                                                  
Taxation                                         (0.6)       (31.2)
Capital Expenditure                             (92.5)      (140.2)
Asset disposals                                  49.0         12.3
Dividends                                       (22.8)       (38.5)
Acquisition of shares                               -        (4.7)
Other                                           (6.5)        (4.1)
                                              _______      _______
                                                                  
Decrease/(increase) in net debt                  21.8       (39.5)
                                              _______      _______
                                                                  
Net Debt                                        (69.4)       (91.2)
                                              _______      _______


Divisional half year performance - Profit from retail operations
before exceptionals
For the 53 weeks ended 1 April 2000
(1999 - 52 weeks ended 27 March 1999)

                  First Half        Second Half         Full Year
                                                                       
                    2000     1999      2000     1999      2000     1999
                      £m       £m        £m       £m        £m       £m
Bhs                                                                    
                                                                       
Turnover           370.7    400.4     451.7    455.8     822.4    856.2
Profit             (8.3)     28.9      21.4     57.5      13.1     86.4
                                                                       
Mothercare                                                             
                                                                       
Turnover           230.4    247.9     213.3    224.5     443.7    472.4
Profit             (3.3)     12.3       3.7      5.6       0.4     17.9
                                                                       
Total                                                                  
                                                                       
Turnover           601.1    648.3     665.0    680.3   1,266.1  1,328.6
Profit from                                                            
 retail                                                                
 operations       (11.6)     41.2      25.1     63.1      13.5    104.3