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Fastrack Group PLC (FTK)

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Monday 05 June, 2000

Fastrack Group PLC

Final Results

Fastrack Group PLC
5 June 2000




PRELIMINARY STATEMENT OF THE RESULTS OF THE GROUP FOR THE YEAR ENDED 31
DECEMBER 1999

CHAIRMAN'S STATEMENT

1999  was  a  year  of  mixed  fortunes for the Group.   We  continued  to 
make encouraging progress in sales growth in the year and with the development
of our infrastructure.   The  emergence  of  our  new  Home  Delivery 
division,  where significant  new  contracts  were gained in the e-commerce 
business-to-consumer sector, was also a major move forward.

However,  our profit performance was very disappointing as the additional 
costs of  the  infrastructure and the spiralling impact of fuel and  insurance
 costs, which has affected the whole sector, took their toll.

The  loss on ordinary activities after tax was £1,956,000 (1998 profit
£85,000), after charging £70,000 of exceptional costs.  Turnover rose by over
13% to £26.2 million (1998: £23.1 million) and the percentage of sales from
Home Delivery was running  at  a  rate  of 12% by the end of the year.  The
scale  of  losses  has inevitably  put  considerable  pressure  on  the 
Group's  cash  resources   and restricted our ability to invest in further
Home Delivery opportunities.   As  a result  of this, the Group announced
today a Rights Issue to raise £2.9  million net of expenses.

Rights Issue

The  Rights Issue will strengthen the Group's balance sheet, reduce
indebtedness and  provide  the  additional working capital that is required
for  the  Group's ongoing   activities  and  for  the  development  of  new 
areas  of   business, particularly the exploitation of fulfilment
opportunities provided by e-commerce and the internet.

Home Delivery and e-commerce

We have begun to take advantage of the major opportunities in the e-commerce
and internet  business-to-consumer market place.  Sectors in which we  have 
already made  significant inroads include mobile telephones, computers and 
accessories, cosmetics,  fashion  clothing, food and drink.  Contracts  have 
been  won  with Cellular Operations Ltd, one of the UK's leading mobile phone
service providers, Virgin Wine, the soon to be launched internet wine
retailer, The Australian Wine Club  (part of the Fosters Brewing Group),
Grattan plc and Freemans, two of  the UK's  largest  home  shopping 
companies, and  Euphony,  the  network  marketing telecommunications business.

Including these contracts Home Delivery sales now represent an estimated rate
of 16% of annualised sales, and we expect this figure to continue to grow.

In  addition  to providing next day delivery services, we will begin  shortly 
a trial of same day home delivery in London for one of our new Internet
customers, Last Orders.com, the on-line off licence.

As  part of our commitment to the continued development of Home Delivery and 
e-commerce fulfilment, we have recently reached commercial agreement to enter
into a  strategic relationship with X4i Ltd., which is an internet exchange
for  road freight and haulage, which will be launched later this year.

This  relationship will enable X4i to offer its clients home delivery
fulfilment services.   To strengthen this relationship we intend to apply
£200,000  of  the proceeds to the Rights Issue to acquire a small shareholding
in X4i.

Business-to-business

Our base business has also continued to grow with new contracts won in the
first quarter  of  the new year.  Sixteen new franchisees were recruited  in 
1999  to bring  the  total of 41 depot franchisees and 55 van franchisees.  In
the  first quarter  of 2000 three of the depots which remained company
operated  have  been converted  to  our  franchise system and two new
franchise depots  opened.   Our expanded  depot network now gives
comprehensive coverage throughout  the  United Kingdom  and  Ireland, enabling
us to provide a high quality next  day  delivery service to our customers.

We  believe  the  e-commerce business-to-business sector  also  has 
significant growth  opportunities for our delivery services and we will target
this  growing sector.

Information technology

The company experienced no problems with the Year 2000 issue.  Our new system
is now  operational  in  all  depots, with Proof of Delivery  scanning,  which
 was introduced in July 1999, proving to be a real benefit to both our
customers  and to our Customer Service Department.

Our  Web  site will be opened in June and we encourage shareholders as  well 
as customers  to  visit  us  on  www.fastrack.co.uk.   We  believe  our 
continuing investment  in  fast  and flexible IT solutions is critical in 
maintaining  our progress  with  out  new customers in the home delivery and
business-to-business sectors.

The Board and management

Three directors left the Board in July 1999 and we thank Derek Kenny, John
Grieg and  William Rollason for their contribution to the Group.  Nat Solomon 
stepped down  as Chairman at the same time but has remained fully committed to
his  role as a non-executive director.

I  am  pleased to announce today that Jeremy Brassington has agreed to become 
a non-executive director on completion of the Rights Issue.   Jeremy is 
currently managing partner of Bulldog Partners Ltd., which now manages the
Tufton Funds.

We  have also strengthened our senior management team with the recruitment of 
a Managing  Director  Home Delivery, an Operations Director and  a  new 
Financial Controller.

Current trading and strategy

The Board has set demanding targets for a significant improvement in
performance in the year 2000.

Whilst  losses  have continued in the first four months of  the  year,  the 
new contracts  we  have  won,  particularly in the  home  delivery  sector 
give  us confidence  that  we  will  be  able to benefit over  the  full  year
 from  the considerable  investment  in the distribution hub, the  depot 
network  and  the trunking fleet that was made in 1998 and 1999.

We  will  continue  to  consider  acquisition opportunities  in  order  to 
take advantage of the consolidation taking place in our industry.

Employees and franchisees

In a difficult year, with considerably increased activity levels coupled with 
a need  for  cost cutting, our employees and franchisees have once again 
excelled themselves in providing high quality service levels to our customers.
 The Board thanks  them  and is confident that their efforts will produce a 
much  improved financial performance for the Company in the year 2000.

D T Ash
Chairman


CONSOLIDATED PROFIT AND LOSS ACCOUNTS

                                Notes       1999       1998
                                            £000       £000
Turnover                                  26,229     23,138
Cost of sales                            (23,322)   (19,515)
                                         -------    -------
Gross profit                               2,907      3,623
Administration expenses                                    
Normal                                   (4,464)    (3,173)
Exceptional                     1           (70)      (121)
                                         -------    -------
Operating (loss)/profit                  (1,627)        329
Interest payable and similar               (429)      (254)
charges
                                         -------    -------
(Loss)/profit on ordinary                                  
activities before taxation               (2,056)         75
Tax on (loss)/profit on                                    
ordinary activities                          100         10
                                         -------    -------
(Loss)/profit for the                                      
financial year transferred                                 
(from)/to reserves                       (1,956)         85
                                         -------    -------
(Loss)/earnings per Share (pre  2                          
exceptional administration                                 
expenses)                                 (2.5p)       0.3p
                                         -------    -------
(Loss)/earnings per share       2         (2.6p)       0.1p
                                         -------    -------
Diluted (loss)/earnings per     2                          
share                                     (2.6p)          -
                                         -------    -------
                                                           
All the above results relate wholly to continuing operations.

The  Group has no recognised gains or losses other than the profit or loss
shown above.

CONSOLIDATED BALANCE SHEETS

                                            1999        1998
                                            £000        £000
Fixed assets                                                
Tangible assets                            2,714       2,812
                                          ------      ------
Current assets                                              
Debtors                                    7,905       6,567
                                                            
Creditors:  amounts falling due                             
within one year
Convertible loan                           (500)           -
Other                                    (9,633)     (7,296)
                                         -------     -------
                                        (10,133)     (7,296)
                                         -------     -------
Net current liabilities                  (2,288)       (729)
                                         -------     -------
                                                            
Total assets less current liabilities        486       2,083
Creditors: amounts falling due after                        
more than one year                         (660)       (833)
                                         -------     -------
Net (liabilities)/assets                   (174)       1,250
                                         -------     -------
Capital and reserves                                        
Called up share capital                    4,022       3,633
Share premium account                        232          89
Other reserves                             1,135       1,135
Profit and loss account                  (5,563)     (3,607)
                                         -------     -------
                                           (174)       1,250
                                         -------     -------

CONSOLIDATED CASH FLOW STATEMENTS

                            1999                1998
                      £000     £000      £000      £000
Net cash outflow                                           
from operating                                             
activities                     (990)               (492)
                             -------             -------
Returns on invest-                                         
ments and servicing
of finance
Interest and finance                                       
charges paid           (325)             (213)
Interest element of                                        
finance lease rental                             
payments                (104)             (41)
                      -------            -------          
Net cash outflow                                           
from returns on                                            
investments and                                            
servicing of finance           (429)                 (254
                                                        
Taxation                                                   
UK corporation tax                                         
repaid                           -                    231
                                                           
Capital expenditure                                        
and financial
investment
Purchase of tangible                                       
fixed assets           (264)            (1,242)
Sale of tangible                                           
fixed assets            152                 49
                      -------             -------          
Net cash outflow                                           
from capital                                               
expenditure and                                            
financial investment            (112)               (1,193)
                               -------              -------
Net cash outflow                                           
before financing              (1,531)               (1,708)
                                                           
Financing                                                  
Shares issued (net                                         
proceeds)                532               221
Capital element of                                         
finance lease                                    
payments                (385)             (160)
Other loans received     500                 -          
                      -------             -------          
Net cash inflow from                                       
financing                         647                  61
                                -------             -------
Decrease in cash                 (884)             (1,647)
                                -------             -------

Notes:

1.   Exceptional  administration costs of £70,000 in 1999 relate to
compensation for loss of office paid to a former director.  Exceptional
administration costs of £121,000 in 1998 relate to the settlement and
associated costs of a claim for damages in respect of termination of
employment of a former director.

2.   (Loss)/earnings per share
     The  calculation  of  (loss)/earnings per share is based  on  the 
weighted average number of shares in issue during the year, amounting to
74,627,433  (1998:  71,949,724), the loss for the financial year of 
£1,956,000  (1998:  £85,000  profit) and the loss for the financial year,
after  adjusting  for exceptional administration expenses, of £1,886,000
(1998: £206,000 profit).
     
                                          1999          1998
                                          £000          £000
     Loss)/profit for the                                   
     financial year                    (1,956)            85
     Exceptional administration                             
     expenses                              70            121
                                       -------       -------
     (Loss)/profit for the                                  
     financial year after                                   
     adjusting for exceptional                              
     administration expenses           (1,886)           206
                                       -------       -------
     
3.   This  preliminary  statement  of  results  does  not  constitute 
statutory  accounts within the meaning of Section 240 of the Companies Act
1985.  Statutory accounts for the previous financial years ended 31 December
1998 have  been delivered to the Registrar of Companies.  The auditors report
on those accounts was unqualified and did not contain any statement under
section 237(2) or (3) of the Companies Act 1985.  The statutory accounts for
the year ended 31 December 1999  have also been audited.  The auditors' report
to shareholders, whilst unqualified, contains an explanatory paragraph drawing
shareholders attention to the uncertainty surrounding the adoption of the
going concern principle and the basis upon which the directors considered it
appropriate to draw up the accounts on a going concern basis.  The accounts
will be delivered to the Registrar of Companies following the annual general
meeting.




                                                                                
                                                                      

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