Interim Results

Dinkie Heel PLC
22 September 2000


Chairman's Statement

Financial results and review of the period

Sales for the first six months were £5,011,000 (1999, £4,970,000). In the same
period the company incurred an operating loss of £110,000 (1999, £127,000).
After provision for lease termination costs of £50,000 and interest payable of
£95,000 (1999, £90,000) the loss on ordinary activities before taxation was
£255,000 (1999, £217,000). Losses per share were 1.73p (1999, 1.47p). 

Davies Odell  has increased its sales of EVA flooring products for the
equestrian and dairy industries by 60% by comparison with the same six months
of 1999 and sales of products for impact protection in protective clothing
were 41% ahead. Together these products represented 19% of total company sales
in the first half year (1999,13%). Sales by Davies Odell of products to the
footwear trade are almost at last year's level but, as a result of the rapid
expansion in the 'new' products, now represent not much more than half of the
division's overall sales. The trading profit of Davies Odell is 30% ahead of
1999.

The Dinkie-FCE toe cap business began the year with orders lower than in 1999
and although this position rapidly recovered the improvement was not soon
enough to prevent sales for the first half year falling 6% below those of
1999. The proportion of export sales in the same period rose to 66% (1999,
55%). The continuing high valuation of the pound sterling against the weak
euro was not helpful to sales prices, which continued to fall slowly, but
steel prices also fell and production efficiency improved. As a result the
out-turn for the division was similar to that of the first half of 1999.

Sales of footwear components manufactured by Phillips Rubber improved 9%
relative to the first half of 1999 and some benefit is now being realised from
the consolidation, completed in 1999, of the company's rubber production at
their premises in Manchester. Profit performance was flat against the
difficulties of achieving satisfactory margins in the current economic
climate.

Net cash outflow from operating activities in the period was £42,000 (1999,
£315,000). Net debt at 30 June 2000 was £2,430,000 (1999, £2,499,000)
representing gearing of 72.5% (1999, 65.5%). 

Dividend

The Board is concentrating its efforts on returning the company to healthy
profit and conserving the cash needed to implement its strategy. Accordingly
no interim dividend is recommended for this year (1999, nil). 

Prospects

Sales of EVA flooring products are expected to continue to increase in the
second half of the year and sales of products for impact protection remain
strong. Orders for safety steel toe caps and rubber moulded products are
strong although efforts to increase sales prices are meeting considerable
resistance. 

The Board is reviewing all aspects of the company's operations in order to
develop and implement a strategy for a return to profitability as soon as
possible.

David M Parkes
Chairman
22 September 2000



PROFIT AND LOSS ACCOUNT

                                              Unaudited               Audited
                                       6 months to  6 months to  12 months to
                                          30/06/00     30/06/99      31/12/99
                                             £'000        £'000         £'000
Turnover    
Continuing operations                        5,011        4,970        10,718
                                            ------       ------        ------
Operating loss before exceptional item        (110)        (127)         (263)
Exceptional item    
- Lease termination costs                      (50)           -             -
                                            ------       ------        ------
Operating loss from continuing operations     (160)        (127)         (263)
Interest payable                               (95)         (90)         (164)
                                            ------       ------        ------
Loss on ordinary activities before taxation   (255)        (217)         (427)
Taxation                                         -            -             -
                                            ------       ------        ------
Loss for the period                           (255)        (217)         (427)
Dividends                                        -            -             -
                                            ------       ------        ------
Loss set against reserves                     (255)        (217)         (427)
                                            ------       ------        ------
Loss per share (basic and diluted)          (1.73p)      (1.47p)       (2.89p)
                                            ------       ------        ------

BALANCE SHEET


                                                 Unaudited            Audited
                                             As at        As at         As at
                                          30/06/00     30/06/99      31/12/99
                                             £'000        £'000         £'000

Net assets employed                     
                     
Fixed Assets                                 3,660        3,963         3,808
                                             -----        -----         -----
Current assets:                     
Stocks                                       1,493        1,847         1,570
Debtors                                      1,806        2,083         2,069
Cash at bank and in hand                        18           25            18
                                             -----        -----         -----
                                             3,317        3,955         3,657
                     
Creditors: amounts falling due 
within one year                             (2,857)      (3,177)       (2,965)
                                             -----        -----         -----
Net current assets                             460          778           692
                                             -----        -----         -----
Total assets less current liabilities        4,120        4,741         4,500

Creditors: amounts falling due after 
more than one year                            (768)        (924)         (828)
                     
Provisions for liabilities and charges           -            -           (65)
                                             -----        -----         -----
                                             3,352        3,817         3,607
                                             =====        =====         =====
Capital and reserves:
Called up share capital                        738          738           738
Share premium                                  715          715           715
Revaluation reserve                            532          540           536
Profit and loss account                      1,367        1,824         1,618
                                             -----        -----         -----
Total equity shareholders' funds             3,352        3,817         3,607
                                             =====        =====         =====

CASH FLOW STATEMENT
                                                 Unaudited            Audited
                                       6 months to  6 months to  12 months to
                                          30/06/00     30/06/99      31/12/99
                                             £'000        £'000         £'000

Reconciliation of operating profit 
to net cash flow from operating 
activities
                     
Operating loss                                (160)        (127)         (263)
                     
Depreciation charges                           218          192           401
Decrease in stocks                              77           49           326
Decrease/(Increase) in debtors                 263          (51)         (121)
Decrease in creditors                         (440)        (378)         (273)
                                             -----        -----         -----
Net cash (outflow)/inflow from 
operating activities                           (42)        (315)           70
                                             -----        -----         -----

Cash Flow Statement                     
Net cash (outflow)/inflow from 
operating activities                           (42)        (315)           70
Returns on investments and servicing 
of finance                                     (95)         (90)         (164)
Taxation                                         -          (22)           62
Capital expenditure                            (70)        (207)         (261)
Acquisitions                                   (65)         (65)          (65)
Equity dividends paid                            -          (89)          (89)
                                             -----        -----         -----
                                              (272)        (788)         (447)
                     
Financing                                      (58)         (34)          (55)
                                             -----        -----         -----
Decrease in cash                              (330)        (822)         (502)
                                             -----        -----         -----
                     
Reconciliation of net cash flow 
to movement in net debt                                    
Decrease in cash in the period                (330)        (822)         (502)
Cash reduction from change in debt              58           34            55
                                             -----        -----         -----
Change in net debt                            (272)        (788)         (447)

Net debt at 1 January                       (2,158)      (1,711)       (1,711)
                                             -----        -----         -----
Net debt at period end                      (2,430)      (2,499)       (2,158)
                                             -----        -----         -----

Notes:                     

1.  The calculation of the loss per share for the six months is based on
    14,770,000 (1999, 14,770,000) ordinary shares, being the weighted number
    in issue during the period.               

2.  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 2000 are unaudited. The abridged profit and
    loss account, balance sheet and cash flow statement for the year ended 31
    December 1999 were extracted from the published accounts which received an
    unqualified audit report and which have been delivered to the Registrar of
    Companies.              

3.  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.