Interim Results

DINKIE HEEL PLC
17 September 1999


         INTERIM RESULTS FOR THE SIX MONTHS ENDING 30 JUNE 1999

 * Total sales up 5% to £4,970,000 (1998  £4,714,000)
 * Operating loss £127,000 (1998 Operating profit £195,000)
 * Acquisition and successful integration of Sports Protection Ltd
 * Sales of impact protective clothing products up by 60%
 * Sales of EVA lightweight flooring to equestrian and dairy industries
   doubled
 * New products now represent 12.5% of sales and growing rapidly

 
Chairman's Statement

Financial results and review of the period

Sales for the first six months increased by 5% to £4,970,000 (1998,
£4,714,000). In the same period the company incurred an operating loss of
£127,000 (1998, operating profit £195,000) and after interest payable the loss
before taxation was £217,000 (1998, profit £159,000). The loss per share was
1.47p (1998, earnings 0.95p).

Toe cap sales were 65% higher than in the first six months of 1998 and
include, for the full period, sales of those styles acquired by the
acquisition of the toe cap business of Firth Cleveland Engineering in October
1998. These volumes were in line with expectations but would have been higher
had production not been constrained by tooling problems associated with the
integration of the FCE business. Sales prices fell 7.5% below plan levels and
attempts to improve prices proved difficult against a background of production
difficulties and the continued strength of the pound sterling.

Sales of lightweight EVA flooring products to the equestrian and dairy
industries continued to increase rapidly and were more than double those of a
year ago. Sales of products for impact protection in protective clothing also
continued to grow strongly and were 60% ahead of the same period in 1998.
Together these new products now represent 12.5% of company sales.

By investing in its safety steel toe cap business and non-footwear activities
the company has sought to reduce its dependence on the footwear repair trade
and on the production of rubber products for shoe manufacturers. Those
industries continue to be in steady decline in the UK and company sales are
following that trend.

Net debt at the period end includes the full cost of the acquisition of FCE
and the effect of seasonal working capital requirements. Net cash outflow from
operating activities was £315,000 (1998, £136,000). Net debt at 30 June 1999
was £2,499,000 (1998, £1,072,000) representing gearing of 65.5% (1998, 29.8%).

Acquisition

On 28 May 1999 the company acquired the business of Sports Protection Ltd. The
total consideration, including plant, stock, goodwill and the costs of the
acquisition, was £130,000 in cash of which £65,000 was payable on completion.
The remaining £65,000 is payable on 28 May 2000.

The acquisition will enhance the company's rapidly expanding involvement in
the production of impact protective clothing and accessories for various
sports and industrial applications. It strengthens our involvement in
motorcycle protection and includes the name T-Pro which is well known in the
industry.

The business was moved immediately to our factory in Rushden and has been
integrated successfully into that operation. The acquisition had no
significant impact on the results of the company to 30 June 1999.

Dividend

In the light of the trading results to June and mindful of the need to
conserve cash the Board has decided not to recommend payment of a dividend at
this stage (1998, interim dividend 0.6p per share).

Prospects

Toe cap production is now being steadily and significantly improved as tooling
issues are resolved and the benefits of scale of the FCE acquisition begin to
be realised. Sales order volume is satisfactory and every effort is being made
to improve prices and reduce costs.

Sales of lightweight EVA flooring products are expected to continue to
increase in the second half of the year. Sales of products for impact
protection remain strong and will benefit from the acquisition of the business
of Sports Protection, for which the move to Rushden was accomplished within
the first half of the year and without significant disruption. The second half
year is also traditionally the strongest period for sales to footwear
repairers and manufacturers.


David M Parkes
Chairman


                            PROFIT AND LOSS ACCOUNT

                                    Unaudited        Audited
                             6  months   6  months   12 months
                             to 30 June  to 30 June  to 31 December
                             1999        1998        1998
                              £'000      £'000       £'000
                                              
Turnover                      4,970      4,714       10,224
                             ------      -----       ------                 
Operating (loss)/profit       (127)        195          309
Interest payable               (90)        (36)         (92)
                             ------      -----       ------
(Loss)/Profit on ordinary                             
activities before taxation    (217)        159          217
Taxation                         -         (38)          30
                             ------      -----       ------
(Loss)/Profit for the         (217)        121          247
period
Dividends                        -         (89)        (177)
                             ------      -----       ------
Retained (loss)/profit        (217)         32           70
                             ------      -----       ------                    
(Loss)/Earnings per share   (1.47p)       0.95p        1.84p
                             ------      -----       ------                   
                                       
                                                                      
                         BALANCE SHEET
                                                                        
                          Unaudited  Unaudited   Audited
                           6 months   6 months  12 months
                                to        to        to
                            30 June   30 June 31 December
                               1999     1998      1998
                              £'000    £'000     £'000
Net assets employed                           
                                              
Fixed Assets                   3963    2,568     3,849
                              -----    -----     -----                
Current assets :                                      
Stocks                        1,847    1,743     1,865
Debtors                       2,083    1,881     2,032
Property held for resale          -      106         -
Cash at bank and in hand         25       17        25
                              -----    -----     -----
                              3,955    3,747     3,922
                                                      
Creditors : amounts                                   
falling due within one       (3,177)  (2,438)   (2,751)
year                          -----    -----     -----
Net current assets              778    1,309     1,171
                              -----    -----     -----  
                                                             
Total assets less current     4,741    3,877     5,020
liabilities
                                                      
Creditors : amounts                                   
falling due after more         (924)    (128)     (986)
than one year
                                                      
Provisions for liabilities        -     (149)         -
and charges
                              -----    -----     -----                        
                              3,817    3,600     4,034
                              -----    -----     -----                        
Capital and reserves                                  
                                                      
Called up share capital         738      638       738
Reserves                      3,079    2,962     3,296
                              -----    -----     -----                        
Total equity shareholders'    3,817    3,600     4,034
funds                         -----    -----     -----      
                                       
                      
                              Cash Flow Statement
                                       
                               Unaudited         Audited
                            6 months 6 months    12 months
                               to       to         to                         
                             30 June  30 June   31 December
                               1999     1998       1998
                              £'000    £'000     £'000
Reconciliation of                             
operating profit to net
cash flow from operating
activities
                                              
Operating (loss)/profit        (127)     195       309
                                                      
Depreciation charges            192      155       287
Reorganisation costs paid         -      (62)     (205)
Decrease /(Increase) in          49     (123)      156
stocks
(Increase)/Decrease in          (51)      70      (101)
debtors
(Decrease)/Increase in         (378)    (371)      253
creditors                      -----    -----     -----
                                                      
Net cash (outflow)/inflow
from operating activities      (315)    (136)      699
                               -----    -----     -----        
                                                      
                        
Cash Flow Statement 
                                  
Net cash (outflow)/inflow                             
from operating activities      (315)    (136)      699
Returns on investments and                            
servicing of finance            (90)     (36)      (92)
Taxation                        (22)     (19)      (31)
Capital expenditure            (207)    (196)     (481)
Acquisitions                    (65)     (98)   (1,521)
Equity dividends paid           (89)    (127)     (215)
                               -----   -----    ------
                               (788)    (612)   (1,641)
                                                      
Financing                       (34)     (29)    1,259
                               -----   -----    ------
Decrease in cash               (822)    (641)     (382)
                               -----   -----    ------                       
Reconciliation of net cash                            
flow to movement in net
debt
                                                      
Decrease in cash in the        (822)    (641)     (382)
period
Cash reduction/(increase)                             
from change in debt              34       29      (869)       
                               -----   -----    ------
Change in net debt             (788)    (612)   (1,251)
                                                      
Net debt at 1st January      (1,711)    (460)     (460)
                             ------    -----    ------                        
  
Net debt at period end       (2,499)  (1,072)   (1,711)

Notes:
 1. The calculation of the (loss)/earnings per share
for the six months is based on 14,770,000 (1998,
12,770,000) ordinary shares, being the weighted
number in issue during the period.
2. The acquisition in the period has had no material
impact on the results and is therefore not separately
identified.
3. The financial information contained in the
accounts does not constitute full accounts within the
meaning of the Companies Act 1985. The results for
the half year to 30 June 1999 are unaudited. The
abridged profit and loss account, balance sheet and
cash flow statement for the year ended 31 December
1998 were extracted from the published accounts which
received an unqualified audit report and which have
been delivered to the Registrar of Companies.
4. A copy of the interim report is being sent to
shareholders. Further copies will be available to the
public from the Company Secretary at the company's
registered address, St Ivel Way, Warmley, Bristol
BS30 8TY
                                       
For further information contact:

Geoff Martin, Finance Director, Dinkie Heel plc on 0117 961 3163
John Wakefield, Rowan Dartington, on 0117 921 3206
Ken Rees, Winningtons, on 0117 930 8839 or 0802 466567