Final Results

Mulberry Group PLC
11 June 2001

MULBERRY GROUP PLC
11 JUNE 2001

Mulberry Group plc
Preliminary Results for the Year to 31 March 2001


HIGHLIGHTS

- Return to profitability - pre-tax profit £0.3 million;

- The business is expanding in line with expectations;

- Sales remain strong;

- Order books continue to grow (Ladies Ready to Wear up 30%);

- New generation look for Bond St flagship store for Autumn 2001;

- High profile launch of new menswear collection at Pitti Uomo, Italy;

- Expansion into US on track for 2002.


Roger Saul commented

 'I am delighted to be back in profit.  This has been driven by strong growth
in our core accessory business.  Our investment in design and image is
progressing well and this Autumn will see an important next step with a new
marketing campaign and the reopening of our 3 floor flagship store in Bond
Street.'


Contacts:

WMC Communications
David Wynne-Morgan/James Chandler   020 7591 3999

Teather & Greenwood Limited
Mark Taylor                         020 7426 9000


CHAIRMAN AND CHIEF EXECUTIVE'S REVIEW

I am pleased to report that Mulberry has returned to profit for the year and
that the improved trading performance announced in my interim report in
January, has continued in the second half.

Sales for the year were £25.7 million, compared with £26.4 million in 2000.
Underlying sales increased by £1.8 million when the 1999 sales of home
products, which were licensed in August 1999, are eliminated.  Gross profit
for the year increased by £0.4 million with the gross profit margin increasing
from 50.9% to 53.7%.  The result for the year is an operating profit of £0.67
million compared to a loss of £0.05 million in 2000.  Profit before taxation
was £0.3 million compared to a loss of £0.7 million for the previous year.
Net borrowings reduced by £6.9 million to £0.8 million. As reported in my
interim statement, we completed the share subscription in September 2000,
which has greatly strengthened our balance sheet.

CURRENT TRADING AND OUTLOOK

The latest accessories order book for autumn/winter 2001 continues to show the
pattern of growth achieved over the last two seasons. The first full
collection from the new women's Ready to Wear (RTW) design team will reach the
shops this autumn, with the order book showing strong growth of 30% compared
with the prior year.

For the first seven weeks of the new financial year, sales, on a like for like
basis, in our full price shops in the UK have been running 4% higher than in
2000 despite the reduction in tourists resulting from the Foot and Mouth
epidemic.  Demand from our UK customers remains very strong.

STRATEGY

We have re-established robust growth through investment in design, sales and
marketing of accessories which is our core product area.  We are confident
that this growth will continue.

Meanwhile, we are continuing to focus our sales and marketing effort on the UK
while putting increased resources into Scandinavia and Northern Europe to
build on our existing business in those markets.

Our investment in RTW management and design continues and we will launch the
first full menswear collection, from the new design team, for spring/summer
2002 at Pitti Uomo, the major menswear exhibition in Florence.

We have undertaken a full review of the brand image and presentation with the
leading design consultancy Four IV and have, with them, completed the design
and styling of the next generation of Mulberry retail stores.  The first to be
seen by the general public will be our flagship store in Bond Street which we
have just closed for a comprehensive refit and plan to re-open in late autumn
2001.  The cost will be in the region of £2 million. Despite this we expect to
deliver an improved trading performance for the full year.

The investment in the new RTW collections and the refit of Bond Street mark
significant steps forward in our strategy to unlock the value in the Mulberry
brand.  Following the completion of Bond Street, the new image will be
implemented in all of our outlets over the next two years.

UNITED STATES

The initial review of the USA has been completed with our US partners.
Locations for the first flagship store in New York are being reviewed. The New
York store will follow the re-opening of Bond Street and is planned for autumn
2002 subject to an appropriate site being found.

HOME

The home license with Kravet has continued successfully and we are
experiencing strong growth in the spring/summer 2001 season.

STAFF

I would like to thank both the Directors and staff who have worked tirelessly
and with good humour through a period of substantial change.  Their belief in
the brand and the company's ability to succeed has been essential in
developing and growing the business.

DIVIDEND

The Board is not recommending the payment of a dividend on the ordinary
shares.

Roger Saul
Chairman and Chief Executive



CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 March 2001
                                                                2001       2000
                                                               £'000      £'000

TURNOVER                                                      25,723     26,390
Cost of sales                                               (11,904)   (12,945)
                                                           ---------  ---------

GROSS PROFIT                                                  13,819     13,445
Other operating expenses (net)                              (13,149)   (13,492)
                                                           ---------  ---------

OPERATING PROFIT/(LOSS)                                          670       (47)
Group share of profit of associated undertakings                  27         16
Finance charges                                                (394)      (635)
                                                           ---------  ---------
Profit/(Loss) on ordinary activities before taxation             303      (666)
Tax on profit/(loss) on ordinary activities                      (2)       (14)
                                                           ---------  ---------
PROFIT/(LOSS)ON ORDINARY ACTIVITIES AFTER TAXATION              301      (680)
Preference dividends proposed                                  (111)          -
                                                           ---------  ---------
PROFIT/(LOSS) FOR THE YEAR TRANSFERRED TO/(FROM) RESERVES        190      (680)
                                                                 
                                                           =========  =========

Earnings/(Loss) per share - basic & diluted                    0.65p    (3.24p)

Dividend per ordinary share                                Nil pence  Nil pence


CONSOLIDATED BALANCE SHEET
31 March 2001
                                                                2001       2000
                                                               £'000      £'000

FIXED ASSETS                                                   5,091      5,522

CURRENT ASSETS
Stocks                                                         7,378      6,278
Debtors                                                        3,923      3,628
Cash at bank                                                     332        212
                                                           ---------  ---------
                                                              11,633     10,118

CREDITORS: Amounts falling due within one year               (4,771)   (11,679)

                                                           ---------  ---------
NET CURRENT ASSETS/(LIABILITIES)                               6,862    (1,561)
                                                           ---------  ---------
TOTAL ASSETS LESS CURRENT LIABILITIES                         11,953      3,961
CREDITORS: Amounts falling due after more than one year      (1,036)       (88)
                                                           ---------  ---------
NET ASSETS                                                    10,917      3,873
                                                           ---------  ---------
CAPITAL AND RESERVES
Called-up share capital                                        2,457      1,299
Reserves                                                       8,460      2,574
                                                           ---------  ---------
SHAREHOLDERS' FUNDS                                           10,917      3,873
                                                           ---------  ---------



CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 March 2001


                                                             2001         2000
                                                            £'000        £'000

Operating profit/(loss)                                       670         (47)
Depreciation charge                                           756          845
Loss/(Profit) on sale of tangible fixed assets                 15         (14)
(Increase)/Decrease in stocks                             (1,100)          118
(Increase)/Decrease in debtors                              (295)        1,233
Increase/(Decrease) in creditors                              698        (261)
Effect of foreign exchange rate changes                        40        (132)
                                                        ---------    ---------
NET CASH INFLOW FROM OPERATIONS                               784        1,742

Returns on investment and servicing of finance              (394)        (644)
Taxation                                                      (2)         (19)
Capital expenditure                                         (328)        (117)
Dividends paid                                                  -            -
                                                        ---------    ---------
NET CASH INFLOW BEFORE FINANCING                               60          962

Financing                                                   4,111        (554)
                                                        ---------    ---------
INCREASE IN CASH IN THE YEAR                                4,171          408
                                                        ---------    ---------
RECONCILIATION OF NET CASH FLOW TO
MOVEMENT IN NET DEBT

Increase in cash in the year                                4,171          408
Cash outflow from decrease in debt
and lease financing                                         2,743          804
                                                        ---------    ---------
                                                            6,914        1,212
Inception of finance leases                                  (24)         (30)
                                                        ---------    ---------
Movement in net debt                                        6,890        1,182
NET DEBT, BEGINNING OF YEAR                               (7,665)      (8,847)
                                                        ---------    ---------
NET DEBT, END OF YEAR                                       (775)      (7,665)
                                                        ---------    ---------



NOTES



1.    The financial information set out above does not constitute the
      Company's statutory accounts.  Statutory accounts for the year ended 31   
      March 2000 have been filed with the Registrar of Companies.  The statutory
      accounts for the year ended 31 March 2001 will be filed at Companies House
      upon receiving the approval of the Annual General Meeting.  The auditors  
      have reported on the accounts for the year ended 31 March 2000 and their  
      report was unqualified and did not contain a statement under section      
      237(2) or (3) of the Companies Act 1985.

2.    The results contained in this report, which have not been audited have
      been prepared using accounting policies consistent with those used in the
      preparation of the Annual Report and Accounts for the year ended 31 March
      2000.

3.    Basic and diluted earnings per ordinary share has been calculated by
      dividing the profit/(loss) on ordinary activities after taxation and      
      dividends on non-equity shares for each financial year by 29,380,490      
      (2000: 20,975,943) ordinary shares, being the weighted average number of  
      ordinary shares in issue during the year.

4.    Copies of the Annual Report and Accounts will be posted to shareholders.
      Further copies can be obtained from Mulberry Group plc's registered office
      at Kilver Court, Shepton Mallet, Bath, BA4 5NF.

5.    The Annual General Meeting will be held at Mulberry Group plc's
      registered office, Kilver Court, Shepton Mallet, Bath, BA4 5NF on 2 August
      2001.

Copies of this announcement are available for a period of 14 days from the
date hereof from the Company's registered office, Kilver Court, Shepton
Mallet, Bath, BA4 5NF and from the Company's nominated adviser, Teather &
Greenwood Limited, Beaufort House, 15 St. Botolph Street, London, EC3A 7QR.

END