Final Results

MULBERRY GROUP PLC
26 August 1999


Mulberry Group plc
Preliminary Results for the Year to 31 March 1999

HIGHLIGHTS
Major  license and distribution deal in Japan  with
 world fibre leader Toray - should see sales in Japan  of
 £50m in 5 years.

Key  partnership  agreement  with  Kravet  US  Home
furnishing giant - £1.5million consideration and  world-
 wide licence income.

Loss before tax £(1.8m) - (1998 1.0m) in line  with
 market expectations.

Overheads, stock and borrowings reduced.

Worldwide  website Mulberry E-Commerce  trial  goes
 live.

New handbag collection 'Technique' successful launch
 for Spring/Summer 2000.

Commenting on the results, Mulberry Chairman, Roger Saul,
said:
'Our results are in line with market expectations despite
difficult  trading conditions which persisted  throughout
last  year.  During the year the Company has strengthened
its  management  team in order to implement  the  changes
required in order to make a rapid return to profit.

The  changes include licensing key product areas in order
to simplify the business and investing in design in order
to update our core accessory product offer.

By  far the most significant steps we have taken are  the
two  recent deals that we have struck with Kravet in  the
US  and  Toray  in  Japan - both  leaders  in  their  own
markets.  The Toray Agreement in particular endorses  our
unwavering  belief  that Japan will continue  to  be  the
major market for Luxury Brands for some time to come.

Finally  we  believe that E-Commerce  represents  a  very
exciting sales opportunity for key product areas.  Luxury
goods  brands  are  not usually associated  with  selling
through  the  internet.  However, early  indications  are
that  a carefully identified and priced selection of  our
accessories  will  increase  the  availability   of   the
Mulberry brand to new customers.'

For further information:

Roger Saul, Chairman and Designer
Mulberry Group plc  01749 340500

Godfrey Davis, Finance Director
Mulberry Group plc

Alex Mackey
GCI Focus 0171 600 1392

CHAIRMAN'S STATEMENT

The  last  two years have been one of the most  difficult
periods of change that Mulberry has had to face.  We have
needed  to move from a UK design, manufacture and  export
base to a world-wide sourcing and distribution operation.
Clearly  this has meant substantial changes to our  modus
operandi; management and staff have had to embrace change
on a major scale.

We  have  invested strongly in both design and  marketing
with  the  result that the Mulberry collection  has  been
updated   without  losing  its  lifestyle   and   quality
attributes.  However during this process we have  had  to
accept  that  it  is not possible for us to  finance  the
development  of  all  product areas ourselves.   We  have
concentrated on finding major world-wide partners to help
us develop Mulberry into a truly global luxury brand.  To
this  end  we have recently secured two major partnership
agreements with Toray in Japan and Kravet in the USA.

Trading continues to be challenging with little change in
the   UK,   European  and  Far  East  markets.   Sterling
continues to be strong, affecting our export markets  and
the  buying  power  of tourists in the  important  London
market.   Despite  this  our Bond Street  flagship  store
continues  to  be  highly profitable  with  sales  of  £3
million last year.

These adverse trading conditions resulted in an operating
loss  for  the  year  to 31 March 1999  of  £0.9m  (1998:
£0.2m);  a  loss  before tax of £1.8m (1998:  £1.0m)  and
lower  sales  of £27.4m (1998: £30.9m) .   These  results
were in line with market expectations.

Overheads have been cut by £1 m.

Stocks have been reduced during the year by £1.5 m.

Cashflow  has  been improved by the concerted  action  to
reduce stocks and as a result borrowings reduced by  £0.8 m.

OPERATING OVERVIEW

In  previous  statements I have referred to a  number  of
initiatives which we have undertaken.  We have achieved a
great  deal  already and expect a progressive improvement
in  our  operating  performance from this  point  as  the
benefits flow through.

FOCUS ON ACCESSORIES
Our  core  activity remains our accessory collection  and
innovative product development remains the very lifeblood
of   the  Mulberry  Brand.   To  further  reinforce  this
division we have invested in design and marketing  during
the year with strong new product lines reaching our shops
in  Autumn 1999 and with further introductions in  Spring
2000  supported  by  distinctive and focused  advertising
campaigns.

We  have  successfully  halved  the  number  of  products
offered  whilst  enhancing  the  attractiveness  of   the
product range, introducing exciting new products such  as
Flight  and  Team  Luggage and our new  hi-tech  Business
Accessories collection.
For  Spring/Summer 2000 we introduce a  new  contemporary
handbag  collection 'Technique' which has already  had  a
very positive response from customers around the world.

SIMPLIFICATION OF THE BUSINESS
Our  goal  continues  to  be the  simplification  of  our
business.   This  has  been, in a  large  part,  achieved
through  the  rationalisation  of  our  existing  product
ranges  and the recently signed agreement to licence  our
Home furnishings collection.

We  have  been  very  successful in developing  our  Home
furnishings  business  and it  has  become  a  recognised
market leader in its sector.  However, it is not our core
business.  We concluded that there was substantial  scope
for  growth,  especially  in  the  US  market  which   is
principally  driven  through  wholesalers  and   interior
designers.   As  a  result, we  sought  to  identify  the
optimum specialist partner in this field and have  signed
a  world-wide licence agreement with Kravet, the  leading
home  furnishings specialist in the USA.  This  agreement
will take effect from 1 September 1999.

As part of the agreement, Kravet will invest in expanding
the  product  range  to drive a substantial  increase  in
sales.  Kravet currently has showrooms in 23 major US and
Canadian  cities  and an experienced and dedicated  sales
force throughout the USA.

Kravet  will  combine  Mulberry's  UK  and  Europe  sales
operation with their own to build on the success of  both
brands.   Kravet  will pay a consideration  of  £1.5m  to
Mulberry  followed by royalties based on  sales.   It  is
envisaged  that  sales  of  these  products,   on   which
royalties  will be paid, will increase by 400%  over  the
next 5 years.

This transaction is a major step in the simplification of
our  business and the competition from interested parties
is testament to the success of our team in this area.

WORLD-WIDE SOURCING
We   have  an  outstanding  manufacturing  facility   and
workforce  in  Somerset which achieves  industry  leading
standards  of materials utilisation due to our investment
in  CADCAM  systems  for  leather  cutting.   While  this
facility  is  competitive  for low  labour  content  high
material value products, it cannot compete on high labour
content  products.   This has formed the  basis  for  our
production  outsourcing programme.   We  have  outsourced
approximately 50% of our manufacturing to Southern Europe
and  the  Far  East  where they  are  able  to  meet  our
demanding quality standards.  While these facilities have
been  developed over the last 2 years, the real  benefits
in margin will be achieved progressively over the next  2
years.

STRENGTHEN THE OPERATIONAL MANAGEMENT
Over  the  last  year we have invested in developing  our
operational management team at the level below the  Group
board.   We  have  successfully changed  the  operational
management  of  our own shops and have  strong  new  team
members  in marketing, merchandise selection and finance.
We  are  committed to the process of ensuring  management
succession.

At  main  Board level, Godfrey Davis, who has  taken  the
leading role in negotiating the transactions with  Kravet
and  Toray,  will take up the position of Deputy Chairman
in  an  executive capacity and Guy Rutherford, who joined
the Group in January 1999 will be appointed Group Finance
Director, with effect from 30 September 1999.

WORLD-WIDE WEBSITE
Over the last 12 months we have been working on our plans
for  E-Commerce.  Our first phase web-site went  live  at
Easter   1999   (www.mulberry-england.co.uk).    In   the
meantime  we  have  addressed our  international  pricing
policy  which means that currency fluctuations  provided,
Mulberry is now priced on a comparable basis world-wide -
something  that  many  other Brands  are  not.   We  plan
further developments in the New Year.

MAJOR MARKET DEVELOPMENT IN JAPAN

We  began  the re-organisation of our Japanese  operation
last  year, having taken over control of our Tokyo stores
following  the  collapse of our local partner.   Strongly
believing in the Japanese market, we doubled the size  of
our  Tokyo 'flagship' store to include our home interiors
collection.   As  a result, the Japanese  flagship  store
sales  have  increased by approximately 50%, despite  the
worst  recession in Japan since the war, which saw retail
sales fall 11% in the clothing industry.

This  continued commitment to Japan enabled us  to  enter
into  successful  negotiations with Toray  Industries  to
whom we have granted a master license to manufacture  and
distribute  23  different categories of Mulberry  product
throughout  Japan  and an exclusive  import  licence  for
products manufactured by Mulberry.

Toray  forecast sales in Japan of licensed  and  imported
Mulberry product totaling approximately £50 million  over
the first 5 years.

Toray will make an investment in the Group of £250,000 in
1% redeemable preference shares to show their commitment.
The  authorisation for this share issue will be  included
in the agenda for the Annual General Meeting.

Toray  are  the world's largest textile manufacturer  and
are another world class partner for Mulberry.

DIVIDEND

As  announced on 13 April, your Board has decided not  to
recommend a final dividend, due to the continued  adverse
trading conditions.

OUTLOOK

As  a result of our strategy of simplification, the focus
on  our  core activities and the future benefits  of  the
transactions  outlined above, we believe  that,  although
trading conditions remain challenging and forward  orders
are  currently  unpredictable,  Mulberry  Group  is  well
positioned for the future.

Roger Saul, Chairman and Chief Executive
26 August 1999

CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 March 1999

                                            1999      1998
                                           £'000     £'000
                                                          
TURNOVER                                  27,393    30,926
Cost of sales                           (14,974)  (16,175)
                                        --------  --------
                                               -         -
GROSS PROFIT                              12,419    14,751
Other operating expenses (net)          (13,291)  (14,354)
Other operating expenses - exceptional                    
re-organisation costs                          -     (602)
                                        --------  --------
                                               -         -
OPERATING LOSS                             (872)     (205)
Finance charges                            (860)     (794)
Group share of loss of related              (47)         -
companies
                                        --------  --------
                                               -         -
LOSS ON ORDINARY ACTIVITIES BEFORE       (1,779)     (999)
TAXATION
Tax on loss on ordinary activities           (8)       272
                                        --------  --------
                                               -         -
LOSS ON ORDINARY ACTIVITIES AFTER                         
TAXATION, BEING LOSS FOR THE FINANCIAL   (1,787)     (727)
YEAR
Dividends paid and proposed on equity          -     (239)
shares
                                        --------  --------
                                               -         -
LOSS FOR THE YEAR                        (1,787)     (966)
                                        --------  --------
                                               -         -
LOSS PER ORDINARY SHARE                  (8.57p)   (3.51p)
                                        --------  --------
                                               -         -
                                                          


CONSOLIDATED BALANCE SHEET
31 March 1999

                                         1999       1998
                                        £'000      £'000
                                                        
FIXED ASSETS                                            
Tangible assets                         6,124      6,195
Investments                                44        117
                                    ---------  ---------
                                        6,168      6,312
CURRENT ASSETS                      ---------  ---------
Stocks                                  6,396      7,934
Debtors                                 4,856      6,384
Cash at bank                                -         36
                                    ---------  ---------
                                       11,252     14,354
                                                        
CREDITORS: Amounts falling due                          
within one year                      (10,986)   (11,200)
                                    ---------  ---------
NET CURRENT ASSETS                        266      3,154
                                    ---------  ---------
TOTAL ASSETS LESS CURRENT               6,434      9,466
LIABILITIES
CREDITORS: Amounts falling due                          
after more than one year              (2,050)    (3,292)
PROVISIONS FOR LIABILITIES AND              -       (10)
CHARGES
                                    ---------  ---------
NET ASSETS                              4,384      6,164
                                    ---------  ---------
CAPITAL AND RESERVES                                    
Called-up share capital                 1,049      1,036
Share premium account                   3,245      3,257
Revaluation reserve                       297        328
Capital redemption reserve                154        154
Profit and loss account                 (361)      1,389
                                    ---------  ---------
EQUITY SHAREHOLDERS' FUNDS              4,384      6,164
                                    ---------  ---------
                                                        
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 March 1999

                                              1999       1998
                                             £'000      £'000
                                                             
NET CASH INFLOW FROM OPERATING               2,315         47
ACTIVITIES
Returns on investments and servicing of      (843)       (794)
finance
Taxation                                       233       (242)
Capital expenditure and financial            (806)       (779)
investment
Equity dividends paid                         (55)       (239)
                                         ---------  ---------
Cash inflow (outflow) before financing        844      (2,007)
Financing                                    (429)       (367)
                                         ---------  ---------
INCREASE (DECREASE) IN CASH IN THE YEAR        415     (2,374)
                                         ---------  ---------
                                                             
RECONCILIATION OF NET CASH FLOW TO                           
MOVEMENT IN NET DEBT
                                                             
                                              1999       1998
                                             £'000      £'000
                                                             
Increase (decrease) in cash in the year        415     (2,374)
Cash outflow from decrease in debt and                       
lease financing                                429        367
                                         ---------  ---------
                                               844     (2,007)
                                                             
Inception of finance leases                    (54)      (518)
                                         ---------  ---------
Movement in net debt                           790     (2,525)
NET DEBT, BEGINNING OF YEAR                 (9,637)    (7,112)
                                         ---------  ---------
NET DEBT, END OF YEAR                       (8,847)    (9,637)
                                         ---------  ---------
                                                             

CASH FLOW INFORMATION
Reconciliation of operating loss to net cash inflow from
operating activities

                                              1999       1998
                                             £'000      £'000
                                                             
Operating loss                                (872)      (205)
Depreciation charge                            879        837
Loss on sale of tangible fixed assets            4         44
Decrease (Increase) in stocks                1,538        (27)
Decrease in debtors                          1,256        372
Decrease in creditors                         (417)      (775)
Effect of foreign exchange rate changes        (73)      (199)
                                         ---------  ---------
Net cash inflow from operating               2,315         47
activities
                                         ---------  ---------
                                                             

Consolidated statement of total recognised gains and
losses
For the year ended 31 March 1999

                                            1999      1998
                                           £'000     £'000
                                                          
Loss for the financial year              (1,787)     (727)
Currency translation differences on         (93)     (247)
foreign currency net investments
                                        --------  --------
                                               -         -
Total recognised gains and losses in     (1,880)     (974)
the year
                                        --------  --------
                                               -         -
                                                          


NOTES

1.    The  financial information set out above  does  not
  constitute the Company's statutory accounts.  Statutory
  accounts for the year ended 31 March 1998 have been filed
  with the Registrar of Companies.  The statutory accounts
  for  the  year  ended 31 March 1999 will  be  filed  at
  Companies House upon receiving the approval of the Annual
  General  Meeting.  The auditors have  reported  on  the
  accounts  for  the year ended 31 March 1998  and  their
  report  was unqualified and did not contain a statement
  under section 237(2) or (3) of the Companies Act 1985.
2.   The results contained in this report, which have not
  been audited have been prepared using accounting policies
  consistent  with those used in the preparation  of  the
  Annual Report and Accounts for the year ended 31  March
  1998.
3.    Earnings  per  share are calculated  on  20,849,442
  (1998:20,772,941)  ordinary shares being  the  weighted
  average number of shares in issue during the year.
4.    Copies  of the Annual Report and Accounts  will  be
  posted to shareholders.  Further copies can be obtained
  from  Mulberry Group plc's registered office at  Kilver
  Court, Shepton Mallet, Bath, BA4 5NF.
5.    The Annual General Meeting will be held at Mulberry
  Group  plc's  registered office, Kilver Court,  Shepton
  Mallet, Bath, BA4 5NF on 1 October 1999.

Copies of this announcement are available for a period of
14   days   from  the  date  hereof  from  the  Company's
registered  office, Kilver Court, Shepton  Mallet,  Bath,
BA4 5NF and from the Company's nominated adviser, Teather
&  Greenwood Limited, 12-20 Camomile Street, London, EC3A
7NN.