Final Results

Actif Group PLC
15 October 2003

                                Actif Group plc

                 Final results for the year ended 2 August 2003

Highlights

•          Turnover up 2.8% to £25.6 million (2002: £24.9 million). Retail
           turnover up 7.7% to £16.2m, wholesale turnover down 27.6% to £5.4m

•          Profit before tax increased by 5.7% to £333,000 (2002: £315,000)

•          Net Debt reduced by 39% to £1.1m (2002: £1.8m)

•          Gearing ratio reduced to 27% (2002: 47%)

•          Gross margins have increased to 44.9% from 42.5% as a result of the
           increasing proportion of retail business within the Group

•          Basic Earnings per share of 0.51p (2002: 0.74p)

•          Store opening programme recommenced. New flagship stores opened in
           Meadowhall and Reading during year, with Glasgow and Birmingham 
           opened since year end.

Commenting on these results, David Brock, Chairman said:

'The repositioning and restructure process is now broadly complete and the new
store opening programme has recommenced. This gives us a solid platform on which
to grow performance over the next year.'

Enquiries: Actif Group plc (020 7436 3330)      Hudson Sandler (020 7710 8908)
           Mark Evans, Chief Executive          Piers Hooper
           Julian Ghinn, Group Finance Director


Chairman's statement

I am pleased to report the Group's final results for the twelve month period to
1 August 2003.  This has been an important year for the Group with the
completion of the repositioning and restructuring programme that was started in
2001. We have seen the transition of the business to a primarily UK retail/
wholesale focus with significant improvement in both fashionability and quality
of our ELLE ranges. Given the extent of these changes during the year, I am
pleased that the Group has been able to grow sales and profits, and invest in
new prime retail stores whilst still generating cash and reducing debt. The net
result is a solid platform to improve our performance over the next 12 months.

Results

In the twelve months to 1 August 2003 total Group turnover increased by 2.8% to
£25.6m (2002: £24.9 million).  Composite gross margins have increased to 44.9%
from 42.5% as a result of the retail business accounting for a higher proportion
of sales than in the prior period. Costs have increased by 11.6% to £11.0m,
representing 42.8% of sales (2002: 39.4% of sales), following the addition of
new space.  Total profit before tax increased by 5.7% to £333,000 (2002:
£315,000) and basic earnings per share were 0.51p (2002: 0.74p). This reduction
in earnings per share stems from the recognition of a deferred tax asset in
respect of timing differences between depreciation and capital allowances
arising in 2002, following the Group's return to profitability.

ELLE Retail

Total retail sales in the period increased by 7.7% to £16.2 million (2002: £15.0
million), which is up by an underlying 3% like-for-like. The growth in retail
sales is partly due to the two new stores that opened in the first half year. We
also saw good growth in our outlet stores and  department store concessions as
the improvements made in our prime stores during 2001/2 (an increased focus on
key trading periods, improved fashionability of the product offer and improved
stock availability) were extended to these formats.  Retail gross margins are
better than the comparative period at 59.0% (2002: 57.0%), reflecting an
increased proportion of sales through prime stores and a reduced need for
markdowns as a result of improved stock management.

2 new Elle stores opened in the period under review and 2 loss-making stores
were closed. We also opened 3 new department store concessions, but also closed
3 concessions following the closure or refurbishment of the host store. Overall
our retail selling space at the end of the year has decreased by 2,000 square
feet to 47,000 square feet.

ELLE Wholesale

Wholesale revenues from our ELLE collections in the period have decreased by
27.6% to £5.4 million (2002: £7.5 million). Of the £2.1m decline in wholesale
revenues, £1.6m can be attributed to the change in ELLE licence rights, which
were renegotiated in October 2001. Discontinued categories include underwear,
and daywear sales to Continental Europe.  In the remaining categories, we have
seen sportswear and swimwear grow by 12% due to increased sales in the UK and
Spain, combined with revived distribution to France offsetting a decline in
Germany. Daywear sales to the UK have stayed broadly level.

From Spring / Summer 2003 we have started to sell nightwear direct, rather than
through a distributor, in response to a declining sales trend. Although sales
continued to fall in Spring / Summer 2003, this trend has reversed from Autumn /
Winter 2003 and at a significantly higher gross margin. Wholesale gross profit
margins have improved to 29.9% (2002: 24.6%) as a result of improved stock
management, and the change to direct selling on nightwear.

Costs

Operating costs have increased by 11.6% to £11.0m (2002: £9.8m), which
represents 42.8% of sales (2002: 39.4%). Retail operating costs increased by
18.3% to £7.1m, equating to 43.8% of retail sales (2002: 40.0%), following the
addition of new retail space, where we have yet to see mature revenues. Total
central overhead, including the cost of restructuring the wholesale business,
was level at £3.8m or 14.8% of sales (2002: £3.8m and 15.3% of sales).

Cash flow

Net cash flow from operating activities has increased by 8.4% to £1.8m (2002:
£1.7m).

Capital expenditure increased to £1.0m (2002: £0.2m) as a result of recommencing
the store opening programme. The capital expenditure in the year also includes
some of the costs of opening new prime stores in Glasgow and Birmingham, which
opened in the first quarter of the 2003/4 financial year.

Total working capital has been reduced by 14.8% to £3.4m (2002: £4.0m). This
improvement in working capital reflects a 1.2% reduction in stock levels to
£3.39m at the year end (2002: £3.43m). Debtors have risen slightly by 3.3% to
£3.8m (2002: £3.7m). Trade and other creditors have increased by 15.8% to £3.9m
(2002: £3.3m).

As a result of the positive cash flow, net debt has been reduced by 39% to £1.1m
(2002: £1.8m), resulting in a gearing ratio at the year end of 27% (2002: 47%).
The comparable figures for 2001 were net debt of £3.1m and gearing of 91%.

Our People

On behalf of the Board I would particularly like to thank the Actif Group team.
Over the year we have progressed with changes to the business, and all our staff
have responded well to these. Our new teams have gelled very quickly and
together have made notable improvements to all areas of the business. They
display a very strong determination and desire to fulfil the potential of the
ELLE brand, and give us confidence in our ability to progress other
opportunities in the future.

Current trading and prospects

Having completed the repositioning and restructuring process, our concentration
is wholly on driving business performance. We have seen a good start to the new
financial year. Over the 10 weeks to 11th October and against a  soft first
quarter last year,  our retail business has achieved the planned 15% increase in
total sales. There are clear indications that the changes to the product design,
buying and merchandising teams that were implemented at the start of 2003 are
having a positive impact on the fashionability and desirability of our product
offer and we are in good shape for the all important Christmas trading period.

Within wholesale, we have seen overall sales growing in line with plan. Sales of
our Autumn / Winter 2003 collection were 22% up on Autumn / Winter 2002, with
continued growth on sportswear and nightwear offsetting a small decline in
daywear. Our Spring / Summer 2004 wholesale collections are selling well, and
are also on track to achieve plan.

August saw the opening of our first prime ELLE store in Scotland, with our store
in Glasgow and this was followed in September with a store in the new Birmingham
Bullring centre. We are currently fitting out our 16th ELLE store in Gunwharf
Quays, Portsmouth, which will open in October and have committed to one further
new store, which will open in the new Centrale shopping centre development in
Croydon in March 2004.

On this basis I remain optimistic for a positive outturn to our first half
trading performance.


David Brock
Chairman

(15 October 2003)


Group profit and loss account
For the year ended 2 August 2003

                                                                Unaudited         Audited
                                                      Notes     2003              2002
                                                                £'000             £'000
Turnover                                                  2     25,575            24,877
Cost of sales                                                   (14,102)          (14,303)
                                                                __________        __________
Gross profit                                                    11,473            10,574
Other operating expenses (net)                                  (11,001)          (10,047)
                                                                __________        __________

Operating profit                                                472               527

Interest payable and similar charges                            (139)             (212)
                                                                __________        __________
Profit on ordinary activities before taxation                   333               315
Taxation                                                        -                 168
                                                                __________        __________
Profit for the financial year                                   333               483
                                                                __________        __________

Earnings  per share                                       3

Basic earnings per share                                        0.51p             0.74p
                                                                __________        __________
Adjusted basic earnings per share                               0.59p             1.14p
                                                                __________        __________
Diluted earnings per share                                      0.49p             0.70p
                                                                __________        __________
Adjusted diluted earnings per share                             0.56p             1.08p
                                                                __________        __________



All amounts relate to continuing activities.



Group balance sheet
As at 2 August 2003



                                                                Unaudited        Audited
                                                        Notes   2003             2002
                                                                £'000            £'000
Fixed assets
Intangible assets                                               44               47
Tangible assets                                                 1,888            1,687
                                                                __________       __________
                                                                1,932            1,734
Current assets
Stocks                                                          3,385            3,426
Debtors                                                         3,810            3,688
Cash at bank and in hand                                        5                4
                                                                __________       __________
                                                                7,200            7,118
Creditors: amounts falling due within one year                  (4,643)          (4,854)
                                                                __________       __________
Net current assets                                              2,557            2,264
                                                                __________       __________
Total assets less current liabilities                           4,489            3,998
Creditors: amounts falling due after more than one              (285)            (100)
year
                                                                __________       __________
Net assets                                                      4,204            3,898
                                                                __________       __________
Capital and reserves
Called up share capital                                         657              657
Share premium account                                           4,322            4,322
Other reserves                                                  89               89
Profit and loss account                                         (864)            (1,170)
                                                                _________        _________
Shareholders' funds - all equity                                4,204            3,898
                                                                __________       __________



Group cash flow statement
For the year ended 2 August 2003


                                                                 Unaudited        Audited
                                                        Notes    2003             2002
                                                                 £'000            £'000
Net cash inflow from operating activities                 4      1,818            1,677
Returns on investments and servicing of finance                  (139)            (212)
Taxation                                                         -                -
Capital expenditure and financial investment                     (981)            (184)
                                                                 __________       __________
Net cash inflow  before financing                                698              1,281
Financing                                                        (252)            (1,029)
                                                                 __________       __________
Increase in cash in the year                              5      446              252
                                                                 __________       __________



Notes:

1.      Basis of preparation

This summary financial information comprises that of Actif Group plc and its'
subsidiaries for the year ended 2 August 2003.  The results have been prepared
using accounting policies consistent with those presented in the 2002 financial
statements.  The preliminary announcement, which does not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985, is an
extract from the Group statutory accounts for the year ended 2 August 2003,
which will be delivered to the Registrar of Companies in due course.  The
auditors have not yet reported on those accounts.  The results for the year
ended 3 August 2002 have been extracted from the statutory accounts for that
period, which have been delivered to the Registrar of Companies and on which the
auditors gave an unqualified report.

2   Segment information

The turnover and profit before taxation are attributable to the Group's
principal activity, being the design, contracted manufacture, wholesale and
retail of high quality fashion clothing.

a)  Analysis of turnover by destination:
                                                                Unaudited        Audited
                                                                2003             2002
                                                                £'000            £'000
United Kingdom                                                  24,577           22,504
Overseas  -  European community                                 680              1,489
Overseas  -  Non European community                             318              884
                                                                __________       __________
                                                                25,575           24,877
                                                                __________       __________


b)  Classes of business

Year ended 2 August 2003                Third party      Wholesale         Retail         Group
                                           sourcing
                                              £'000          £'000          £'000         £'000
Turnover                                      3,951          5,441         16,184        25,576
Cost of sales                               (3,658)        (3,816)        (6,629)      (14,103)
                                         __________     __________     __________    __________
Gross profit                                    293          1,625          9,555        11,473
Common costs                             __________     __________     __________      (10,951)
                                                                                     __________
Operating profit                                                                            522
Exceptional costs                                                                          (50)
Net interest payable                                                                      (139)
                                                                                     __________
Profit before taxation                                                                      333
                                                                                     __________

The exceptional costs of £50,000 relate to amounts charged for the closure of the Leeds Store.


Year ended 3 August 2002                              Third party         Wholesale            Retail            Group
                                                         Sourcing
                                                            £'000             £'000             £'000            £'000
Turnover                                                    2,335             7,519            15,023           24,877
Cost of sales                                             (2,166)           (5,671)           (6,466)         (14,303)
                                                       __________        __________        __________       __________
Gross profit                                                  169             1,848             8,557           10,574
Common costs                                           __________        __________        __________          (9,809)
                                                                                                            __________
Operating profit                                                                                                   765
Exceptional costs                                                                                                (257)
Net interest payable                                                                                             (193)
                                                                                                            __________
Loss before taxation                                                                                               315
                                                                                                            __________

The exceptional costs of £257,000 relate to amounts owed by The Designer Room Ltd when it went into administration on
12 June 2002.



3   Earnings per ordinary share

The calculations of earnings per share is based on the earnings for the
financial period attributable to equity shareholders and the weighted average
number of ordinary shares as follows:
                                                                                         2003                    2002
Weighted average number of shares:                                                       Number                  Number
For basic earnings per share                                                         65,344,571              65,194,434
                                                                                     __________              __________
For diluted earnings per share                                                       68,449,120              68,809,587
                                                                                     __________              __________


Adjusted earnings per share has been calculated after excluding the impact of
exceptional items after taxation and the amortisation of goodwill.  This has
been disclosed to provide shareholders with a better indication of the
underlying performance of the Group.


                                          Basic/diluted                         Adjusted
                                      2003              2002              2003              2002
                                      £'000             £'000             £'000             £'000
Profit for the financial year before  333               315               333               315
taxation
Exceptional costs                     -                 -                 50                257
Add: taxation                         -                 168               -                 168
Amortisation of goodwill              -                 -                 3                 3
                                      __________        __________        __________        __________
                                      333               483               386               743
                                      __________        __________        __________        __________


4   Reconciliation of operating profit to operating cash flows

                                                                           Unaudited        Audited
                                                                           2003             2002
                                                                           £'000            £'000
Operating profit                                                           473              527
Depreciation charges                                                       781              855
Amortisation of goodwill                                                   3                3
Profit on disposal of fixed assets                                         -                (2)
Decrease in stock                                                          40               921
(Increase)/decrease in debtors                                             (122)            517
Increase/(decrease) in creditors                                           671               (1,138)
Foreign exchange loss relating to non-operating activity                   (28)             (6)
                                                                           __________       __________
Net cash inflow from operating activities                                  1,818            1,677
                                                                           __________       __________




5   Reconciliation of net cash flow to net debt

                                                                          Unaudited        Audited
                                                                          2003             2002
                                                                          £'000            £'000
Increase in cash in the year                                              446              252
Cash outflow from decrease in debt and lease financing                    852              1,031
                                                                          __________       __________
Change in net debt resulting from cash flows                              1,298            1,283
New secured loans                                                         (600)            -
                                                                          __________       __________
Movement in net debt in year                                              698              1,283
Net debt at 3 August 2002                                                 (1,814)          (3,097)
                                                                          __________       __________
Net debt at 2 August  2003                                                (1,116)          (1,814)
                                                                          __________       __________



6      Annual General Meeting

The Annual General Meeting will be held at 20 Little Portland Street, London W1W
8AA on 16 December 2003 at 12 noon.


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