Interim Results

Millfield Group PLC
3 December 2001

MILLFIELD GROUP plc

Interim Results for the six months ended 30 September 2001

Millfield Group plc, the AIM-listed national independent financial advisory
company, today announces its interim results. The highlights of the results,
which were in line with market expectations, are:

  * Turnover up 16% to £6.7m (2000: £5.8m)
  * Gross profit up 17% to £1.8m (2000: £1.6m)
  * Number of advisers up to 270

  * Acquisition of HFP Holdings Limited ('Heritage') for £10m together with
    the raising of a further £2.8m of working capital to support Heritage and
    the initial development of Millfield's employee benefits business
  * Establishment of Millfield Associate Partnership, an initiative to
    harness and support smaller IFAs around the country
  * Appointment of key executives in line with plan
  * Relocation of head office premises in Croydon and opening of new branch
    premises in London (City and West End), Birmingham, Ringwood, West Byfleet
    and Westerham
  * Millfield Connect established - with Call Centre operations in Hull and
    Slough
  * Millfield Search and Selection created - a recruitment business, with a
    team of six
  * Millfield Academy Limited strengthened - Millfield's training business
    employing five people

Commenting on the results, Millfield Group's Chairman, Richard Mansell-Jones,
said:

'Millfield is reporting the first interim results as a quoted company. They
are in line with expectations and reflect a period of intense activity within
the Group.

There is of course some general economic uncertainty at present. Nevertheless,
Millfield has made substantial progress since its flotation and we remain in a
strong position to deliver our business plan, as evidenced by the excellent
progress achieved in the half-year now under review.'



Chairman's Statement

Results

Group turnover for the six months ended 30 September 2001 increased by 16% to
£6.7m (2000 - £5.8m) reflecting the increase in average turnover per head of
Millfield advisers. Gross margins were maintained at 27% resulting in a 17%
increase in gross profit to £1.8m (2000 - £1.6m).

Administration expenses increased by 217% to £4.5m (2000 - £1.4m) reflecting
the substantially improved infrastructure that we have been building to
support an enlarged business. This resulted in a loss of £2.2m (2000 - £0.2m
profit).

HFP Holdings Limited ('Heritage')

On 10 September 2001 we announced the acquisition of Heritage for £10m,
(including deferred consideration of up to £0.6m) funded by a share issue,
together with the raising of a further £2.8m of working capital. The
acquisition was completed after the end of the half-year period, on 1 October
2001.

Heritage is an excellent fit for Millfield. Its acquisition results in our
leapfrogging the original business plan, bringing forward the rapid growth in
the business. 128 Heritage advisers have now joined Millfield, giving the
Group an overall total of 270 advisers.

Heritage has 12 branch offices mainly in Scotland, North of England and the
Midlands, complementing Millfield's predominantly Southern bias. Heritage's
infrastructure is relatively underdeveloped and the benefit of Millfield's
support and expertise should help to grow the turnover of its business at a
more rapid rate. Heritage is also an excellent cultural fit with Millfield,
having advisers with a relatively young average age of 44 and a strong
stakeholder culture.

The integration of Heritage is progressing well and we expect a new single
structure to be in place by the beginning of 2002 when the combined group will
operate from our head office in Croydon. New job descriptions have been drawn
up and all staff have been offered new positions; a number of those previously
operating as part-time advisers are now in full time management roles. Work on
systems and processes is also progressing well.

Millfield Associate Partnership

Millfield Associate Partnership, established in June 2001 is now fully
operational and provides other IFA companies with the opportunity to become a
branded Millfield Associate and benefit from economies of scale, training,
compliance, marketing support, advanced IT and Millfield best practice. A
structure has been introduced to take equity interest in member firms and
Armstrong Anderson Partnership is the first participant. We continue to
receive a great deal of interest from quality firms in joining this operation.

Building the infrastructure

Following the successful float of the company on the Alternative Investment
Market on 1 March 2001, we have been moving forward rapidly in building the
capability of the business.

Key areas have been:


  * Increase in employees (including directors) from 55 to a figure
    currently at over 240, which includes Heritage, with most important senior
    management positions being filled.

  * The acquisition of new head office premises in Croydon appropriate to a
    young dynamic company as well as new branch premises in the City and the
    West End, Birmingham, Ringwood, West Byfleet and Westerham.

  * The establishment of Millfield Connect with Call Centre operations in
    Hull and Slough.

  * The location of Millfield Search and Selection Limited, our recruitment
    business, in new premises with a team of six.

  * The strengthening of Millfield Academy Limited, our training business,
    which has five employees.

  * An in-depth review has taken place of the implications of N2, the new
    regulatory regime being introduced by the Financial Services Authority
    from the end of November and appropriate processes and procedures put in
    place.

Our established infrastructure has allowed us to achieve the acquisition of
Heritage with minimum disruption and positions us well to roll out the next
stages of our expansive business plan.

 There is of course some general economic uncertainty at present.
Nevertheless, Millfield has made substantial progress since its flotation and
we remain in a strong position to deliver our business plan, as evidenced by
the excellent progress achieved in the half-year now under review.



Richard Mansell-Jones

Chairman

30 November 2001



Consolidated Profit and Loss Account
                                        Six months ended            Year ended
                                          30 September               31 March
                                           2001              2000         2001
                                      (Unaudited)      (Unaudited)    (Audited)
                                          £'000             £'000        £'000
                                                                         
TURNOVER                                  6,742             5,804       10,958
Cost of Sales                           (4,900)           (4,236)      (7,893)
Gross Profit                              1,842             1,568        3,065
Administrative expenses                 (4,522)           (1,425)      (3,425)
OPERATING (LOSS) / PROFIT               (2,680)               143        (360)
Interest receivable and similar             432                 9          102
income
(Loss) / profit on ordinary             (2,248)               152        (258)
activities
Deficit brought forward                   (853)             (595)        (595)
Deficit carried forward                 (3,101)             (443)        (853)

(Loss)/earnings per share (note         (4.77p)            0.88 p      (1.26p)
2)
Diluted (loss)/earnings per             (4.42p)            0.84 p      (1.20p)
share (note 2)



Consolidated Balance Sheet
                                               30 September           31 March
                                               2001           2000         2001

                                        (Unaudited)    (Unaudited)    (Audited)

                                              £'000          £'000        £'000
FIXED ASSETS
Goodwill                                         21             22           22
Tangible assets                               1,244            144          213
                                              1,265            166          235
CURRENT ASSETS
Debtors                                       3,163            923        1,258
Cash at bank and in hand                     14,063          1,331       18,511
                                             17,226          2,254       19,769
CREDITORS: amounts falling due within       (3,010)        (1,416)      (2,376)
one year
NET CURRENT ASSETS                           14,216            838       17,393

TOTAL ASSETS LESS CURRENT LIABILITIES        15,481          1,004       17,628

PROVISIONS FOR LIABILITIES AND CHARGES        (346)          (191)        (245)
NET ASSETS                                   15,135            813       17,383

CAPITAL AND RESERVES
Called-up share capital                          83             30           83
Share premium account                        16,624              -       16,624
Merger reserve                                1,529          1,226        1,529
Profit and loss account                     (3,101)          (443)        (853)
EQUITY SHAREHOLDERS' FUNDS                   15,135            813       17,383




Consolidated Cash Flow Statement
                                              Six months ended          Year
                                                                        ended
                                                30 September
                                                                      31 March
                                                 2001          2000        2001

                                          (Unaudited)   (Unaudited)   (Audited)

                                                £'000         £'000       £'000
Operating (loss) / profit                     (2,680)           143       (360)
Depreciation charge                               205            25          75
Loss on disposal                                    -             6           6
Amortisation charge                                 1             1           1
Decrease in stocks                                  -             1           1
Increase in provisions                            101            24          78
Net cash (outflow) / inflow from              (3,434)           787       1,094
operating activities

Returns on investments and servicing of
finance
Interest received                                 222             9          32

Capital expenditure and financial
investment
Purchase of tangible fixed assets             (1,236)          (11)       (136)

Acquisitions and disposals
Purchase of business                                -             -        (11)
Reduction in goodwill cost                          -             -           6
                                              (4,448)           785         985
Financing
Cash receipt from share issues                      -             -      18,863
Expenses paid in connection with share              -             -     (1,883)
issues
                                                    -             -      16,980
(Decrease) / increase in cash in the          (4,448)           785      17,965
period

Reconciliation of net cash flow to
movements in funds
(Decrease) / increase in cash in the          (4,448)           785      17,965
period
Net funds at beginning of period               18,511           546         546
Net funds at end of period                     14,063         1,331      18,511



Notes


 1. Basis of preparation

    The interim accounts, which are unaudited, have been prepared on the basis
    of the accounting policies set out in the 2001 group accounts. The figures
    shown for the full year ended 31 March 2001 represent an abridged version
    of the full accounts of Millfield Group plc for that year, which have been
    filed with the Registrar of Companies and on which the auditors have given
    an unqualified report. The financial information contained in this interim
    report does not constitute the group's statutory accounts within the
    meaning of section 240 of the Companies Act 1985.

 2. Loss per share


        The calculation of the (loss) / earnings per share attributable to
        shareholders is based on the result after taxation of £2,248,000 loss
        (2000 - £152,000 profit) and on 47,120,401 (2000 - 17,202,801)
        ordinary shares, being the weighted average number of shares in issue
        during the six months.

        The diluted (loss) / earnings per share attributable to shareholders
        incorporates the effect of 3,736,419 (2000 - 851,415) share options,
        being the weighted average number of share options in the six months.

3. Post balance sheet events

On 1 October Millfield Group plc completed the acquisition of HFP Holdings
Limited for £10,000,000 including deferred consideration of up to £630,000.
The initial consideration was paid through the issue of 7,496,000 ordinary
shares at £1.25 each. Of these, 4,875,000 were issued to the vendors and the
balance placed with institutions resulting in cash payments to the vendors of
£2,626,000 and to various creditors of £1,869,000. At the same time a further
2,356,000 shares were placed with institutions at £1.25 each to raise further
working capital.



The following proforma balance sheet reflects the consolidation of the balance
sheets of Millfield Group plc and HFP Holdings Limited at 30 September 2001
together with the issue of shares and settlement of liabilities set out above.

                                       30 September
                                           2001
                                      (Unaudited)        Movement      Proforma

                                            £'000     (Unaudited)   (Unaudited)

                                                            £'000         £'000
FIXED ASSETS
Goodwill                                       21          10,545        10,566
Tangible assets                             1,244             210         1,454
                                            1,265          10,755        12,020

CURRENT ASSETS
Debtors                                     3,163           1,336         4,499
Cash at bank and in hand                   14,063           2,064        16,127
                                           17,226           3,400        20,626
CREDITORS: amounts falling due within     (3,010)         (1,233)       (4,243)
one year
NET CURRENT ASSETS                         14,216           2,167        16,383

TOTAL ASSETS LESS CURRENT LIABILITIES      15,481          12,922        28,403

PROVISIONS FOR LIABILITIES AND              (346)           (210)         (556)
CHARGES
NET ASSETS                                 15,135          12,712        27,847

CAPITAL AND RESERVES
Called-up share capital                        83              18           101
Share premium account                      16,624           2,838        19,462
Merger reserve                              1,529               -         1,529
Merger relief account                           -           9,856         9,856
Profit and loss account                   (3,101)               -       (3,101)
EQUITY SHAREHOLDERS' FUNDS                 15,135          12,712        27,847


INDEPENDENT REVIEW REPORT TO MILLFIELD GROUP plc

Introduction

We have been instructed by the company to review the financial information for
the six months ended 30 September 2001, which comprises the profit and loss
account, the balance sheet, the cash flow statement and related notes 1 to 3.
We have read the other information contained in the interim report and
considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are also responsible for ensuring that the accounting polices and presentation
applied to the interim figures are consistent with those applied in preparing
the preceding annual accounts except where any changes, and the reasons for
them, are disclosed.

Review work performed

We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom
except that we have not reviewed the proforma comparative results for the six
months to 30 September 2000. A review consists principally of making enquiries
of group management and applying analytical procedures to the financial
information and underlying financial data and, based thereon, assessing
whether the accounting policies and presentation have been consistently
applied unless otherwise disclosed. A review excludes audit procedures such as
tests of controls and verification of assets, liabilities and transactions. It
is substantially less in scope than an audit performed in accordance with
United Kingdom auditing standards and therefore provides a lower level of
assurance than an audit. Accordingly, we do not express an audit opinion on
the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2001.

Deloitte & Touche Chartered Accountants,

Stonecutter Court,

1 Stonecutter Street,

London, EC4A 4TR

30 November 2001



Enquiries to:

Paul Tebbutt, Chief Executive/Harry Roome, Finance Director   Tel: [phone]

Millfield Group plc

Emma Kane, Chief Executive      Tel: [phone]

Redleaf Communications Ltd      Mob: [phone]

About Millfield


  * Millfield was founded in March 1998 and is one of the fastest growing
    independent financial advisory companies in the UK offering truly
    independent advice, primarily in the pensions, life insurance, investment
    and mortgage sectors.

  * Millfield Group plc floated on the Alternative Investment Market ('AIM')
    of the London Stock Exchange on 1 March 2001 raising £16.6m net of
    expenses.

  * Millfield currently retains the services of approximately 270
    self-employed IFAs and operates from 24 locations across England, Scotland
    and Northern Ireland.
  * Further information is available on the Millfield website:
    www.millfield-partnership.co.uk