Final Results

FRANK USHER HOLDINGS PLC
12 August 1999


PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MAY 1999

                                             1999                   1998
                                            £'000                  £'000

Turnover                                   20,482                 23,610

Profit before tax                           1,334                  2,165   

Earnings per share                           12.7p                  20.1p

Dividend per share                            8.0p                  11.0p


Jeremy Hamer, the Chairman, said:

-  Strategic and operational reviews and new managerial appointments driving a
   major change programme.

-  Favourable trade reactions to new design and marketing influence.

                                                                12 August 1999

For further information please contact:
Jeremy Hamer                -  Chairman, Frank Usher Holdings Plc 
(Tel:  [phone] )   

Clive Simnock               -  Finance Director, Frank Usher Holdings Plc
(Tel: [phone])


CHAIRMAN'S STATEMENT - YEAR ENDED 31 MAY 1999

Following my appointment as Chairman in October 1998 and against a difficult
market background, a strategic and operational review of the business was
instigated. Although the business has been successful since its incorporation
in 1944, I am conscious of the need to make the most of our internationally
recognised brand name and capitalise on the many opportunities that are being
created. 

These reviews have now been completed and the conclusions leave us with a
number of significant opportunities for the future. The process of
implementation has begun although the financial impact of the changes will not
show through for a while.

Through our declared strategy we are developing a modernised and more focused
design function to broaden the appeal of all our labels. Our newly appointed
international marketing consultants will help us to reposition our brands for
the new millennium. In an increasingly competitive environment it is
imperative that we promote and emphasise clearly the message behind our brands
in everything that we do. Our marketing is set to ensure that the image of all
of our brands will appeal to a wider range of women. 

The Frank Usher brand name is already synonymous with style, fashion and
elegance; our strategy will ensure that we further develop this brand whilst
creating opportunities for our other fashion labels to mirror its development
with their own carefully targeted customers in their chosen markets.

Results in Brief

The growth in turnover enjoyed at home and overseas last year has been
reversed in the current year with strong sterling combining with difficult
market conditions throughout Europe. Profit on ordinary activities before tax
was £1.33 million (1998: £2.17 million). Earnings per share were 12.7p
(1998:20.1p).

Dividend

Our intentions remain to give shareholders a strong yield. However, your Board
feels that it is appropriate given both the results for the year and the share
buyback activity to preserve cash by reducing the proposed final dividend to
4.0p (1998:7.0p) giving a total dividend for 1999 of 8.0p (1998:11.0 p). 

Review of the Year

The turnover for the year was £20.5 million (1998: £23.6 million) reflecting
two difficult seasons. Gross margins were slightly reduced but our overhead
cost base was also reduced, in part due to lower volumes, to £6.6 million
(1998: £7.2 million). 

In November we closed our manufacturing operation in Glasgow at a one-off cost
of £54,000. We still retain use of a number of UK subcontract factories but
are increasing our manufacturing overseas. 

Share buybacks

During the year under review purchases of 800,000 shares were made at an
average price of £1.08. With interest rates considerably lower than dividend
yields this remains a sensible strategy for the company.
 
The Board

In February Michael Hoch took over as Group Managing Director, charged with
orchestrating the programme resulting from our operational review. At the same
time Anne Bruh became our Lifetime President, a position only previously held
by her late husband, Max Bruh, with whom she founded the company 55 years ago.
Her contribution to the business over the years has been fundamental to the
company's success and we will continue to benefit from her knowledge and
experience in her new role.

Robert Bruh has taken control of the design function from the Spring 2000
collection. June Poster joined the Main Board in October 1998 after 22 years
with the company and is responsible for the development of UK sales. 

Recently we announced the resignation of Clive Simnock after 11 years with the
Group as Finance Director. He has contributed much in these years and we wish
him every success in the future in his new employment. Paul Berendt will be
promoted as Company Secretary from 1st September 1999 and will also be
responsible for the finances of the group.

Staff

In any change process pressure increases on the staff within the organisation.
Ours is no exception and I would like to take this opportunity to thank our
staff for their loyalty and commitment throughout the year.

Finally, I must mention Grace Mcleod, the 'Frank Usher' design director, who,
after 38 years of service, is stepping down this autumn to make way for
younger talent. Her contribution to the business has been outstanding and we
wish her a long and healthy retirement.

Current Trading and Outlook

In June we gave a profits warning regarding the first half of the next
financial year because forward orders have been disappointing reflecting the
high stock position of many customers from last autumn/winter and the
continuing strength of sterling.

On the positive side operational cost savings are being implemented at this
time which will gradually show through in our results.   Purchases of garments
for millennium parties should help both our mid season sales and repeat
business. We are receiving encouraging reports of sales in the shops for the
early winter deliveries. Furthermore, our millennium collection, which is
currently being shown, has been extremely well received, particularly at our
first ever group stand at the Dusseldorf International CPD exhibition which
created a great deal of interest.

However, the full benefits from our new design team, our new marketing
programme and our cost reduction programmes will not show through fully until
next year.

Chairman
Jeremy Hamer

11 August 1999


Preliminary Announcement of Results for the year ended 3 May 1999
                                                    
Frank Usher Holdings PLC                            
Consolidated Balance Sheet                            
as at 31 May 1999                            
                            
                                        1999                   1998       
                            
                                    £'000     £'000       £'000       £'000
Fixed assets                            
Tangible assets                               3,786                   3,823
                            
Current assets                            
                            
Stocks                               2,418                2,658       
Debtors                              2,914                3,282       
Cash at bank and in hand               244                   73       
                                     5,576                6,013       
                            
Creditors (amounts falling 
  due within one year)              (3,240)              (3,253)       
                            
Net current assets                            2,336                   2,760
                            
Total assets less 
  current liabilities                         6,122                   6,583
                            
Deferred taxation                               (79)                    (68)
                            
                                              6,043                   6,515
                            
Capital and reserves                            
                            
Called up share capital                         316                     355
Share premium account                         3,247                   3,225
Capital redemption reserve                      813                     773
Other reserves                                  180                     180
Profit and loss account                       1,487                   1,982
Total shareholders' funds                     6,043                   6,515


Preliminary Announcement of Results
for the year ended 31 May 1999                                          
                                                 
                                              1999                    1998
                                             £'000                   £'000
                                                 
Turnover                                    20,482                  23,610
                                                 
Cost of sales                              (12,446)                (14,128)
                                                 
Gross profit                                 8,036                   9,482
                                                 
Distribution costs                            (700)                   (867)
                                                 
Administrative expenses                     (5,936)                 (6,372)
Operating profit                             1,400                   2,243
                                                                             
Interest receivable                             15                      29
                                                 
Interest payable                               (81)                   (107)
                                                 
Profit on ordinary activities 
  before taxation                            1,334                   2,165
                                                 
Tax on profit on ordinary activities          (481)                   (693)
                                                 
Profit for the financial year                  853                   1,472
                                                 
Dividends                                     (480)                   (783)
                                                 
Retained profit transferred to reserves        373                     689
                                                 
Earnings per ordinary share-Basic             12.7 p                  20.1 p
                                                 
Earnings per ordinary share-Diluted           12.7 p                  20.1 p
                                                 
Notes:                                          

1.  The Directors are recommending a final dividend of  4.0p per share which
    will be payable, subject to shareholders' approval, on 4 November 1999 to
    shareholders on the register on 1 October 1999.                           
              
2.  Calculation of earnings per ordinary share is based on profit on ordinary
    activities after tax and the weighted average number of shares in issue
    during the year of 6,712,312 (1998: 7,311,572).                           
              
3.  The figures for the year ended 31 May 1999 do not constitute statutory
    financial  statements but have been extracted from the group's financial
    statements which contain an unqualified Auditors' Report which does not
    contain a statement under section 237(2),(3) or (4) of the Companies Act
    1985. The figures for the year ended 31 May 1998 have been extracted from
    the group's accounts , which have been filed with the Registrar of 
    Companies and contain an unqualified Auditors' Report which did not
    contain a statement under section 237(2),(3) or (4) of the Companies Act
    1985.                                          
                                                 
4.  It is anticipated that the Report and Accounts for the year ended 31 May
    1999 will be posted to shareholders on 1 September 1999 and the Annual 
    General Meeting will be held on 28 October 1999.                          
               
5.  The reduction in called up share capital of £39,000 in the year resulted
    from the purchase by the company of 800,000 shares for a consideration of
    £868,000 and the issue of 20,000 shares following the exercise of share
    options.