Final Results - Replacement

Mulberry Group PLC
24 June 2004

MULBERRY GROUP PLC

24 JUNE 2004



This announcement replaces the announcement made on RNS at 0700 today under
number 0802A. The changes to the previous announcement are the following:



'1. Operating profit of £0.5 million achieved (2003: loss £1.7 million).'



'Amendment to statement.

2. GODFREY DAVIS, CHAIRMAN AND CHIEF EXECUTIVE COMMENTED:


'We have achieved a substantial business turnaround creating a solid base for
the future development of the Mulberry Brand. ' and



3. Addition to Note 2. 'The Group has adopted FRS 5 application note G, on
revenue recognition, but it has no impact on the figures.'



END





                 MULBERRY GROUP PLC ('Mulberry' or the 'Group')



                            PRELIMINARY RESULTS FOR
                           THE YEAR TO 31 MARCH 2004





Mulberry Group Plc, the AIM listed designer and manufacturer of a portfolio of
accessories, ready to wear clothing and interior design products, today
announced its preliminary results for the year ended 31 March 2004.



HIGHLIGHTS



Operating profit of £0.5 million achieved (2003: loss £1.7 million).

Profit before tax for the year of £41,000 (2003: loss £2.1 million).

Significantly strengthened balance sheet with net debt reduced by £4.3 million
to £2.2 million.

Gross margin, increased from 45% to 50%.

Overheads reduced by £2.1 million (15%).

Continued repositioning of the Mulberry brand in the UK and overseas.





GODFREY DAVIS, CHAIRMAN AND CHIEF EXECUTIVE COMMENTED:



'We have achieved a substantial business turnaround creating a solid base for
the future development of the Mulberry Brand.



Our strategy is to invest significantly in design and to back that investment
with a focused marketing campaign to increase both awareness and sales in the UK
and overseas'.





FOR FURTHER DETAILS PLEASE CONTACT:



WMC Communications

Alex Glover or Jo Livingston                         020 7591 3999










CHAIRMAN'S STATEMENT





We have achieved a substantial business turnaround creating a solid base for
the future development of the Mulberry Brand. The Group made an operating
profit of £0.5 million (2003: loss £1.7 million). The balance sheet is greatly
strengthened with net debt reduced by £4.3 million to £2.2 million. Equally
importantly, Mulberry's product range and brand image have been transformed.
This has resulted in extensive press coverage in both the leading fashion
magazines and the national newspapers. Our Piccadilly, Bayswater and Roxy bags
are 'must have' fashion accessories carried by many of the most fashionable
celebrities. This renaissance has been recognised worldwide.



The first financial objective for the year was to break the loss making pattern
of previous years. We have achieved this by focusing on our core accessories
business, improving margins, reducing costs and eliminating non profitable
sales. The second was to reduce borrowings and restore the balance sheet. This
has been achieved by the Open Offer completed in September 2003 and by
generating cash from operations. As a result, the Group is profitable,
adequately funded and has a sound base from which it can build.



Our strategy for the brand is to invest in design and to focus our marketing
resources to significantly increase both awareness and sales. This has resulted
in strong demand for our new more fashionable products and excellent reviews
from the UK press.





RESULTS FOR THE YEAR ENDED 31 MARCH 2004



Sales for the year reduced to £25.3 million (2003: £28.2 million). The reduction
reflects the elimination of loss making and strategically flawed sales channels,
reduced clearance sales of  discontinued lines and lower sales of men's and
women's clothing. Sales of our core accessory products are growing in our UK and
European markets.



Gross margin, increased from 45% to 50%. This reflected the continuing
improvement in accessories margins and the lower level of discounting to clear
stocks, which have fallen by a further £0.9 million after last year's reduction
of £1.7 million.



Overheads reduced by £2.1 million (15%) and the Group made an operating profit
of £0.5 million (2003: loss £1.7 million).



The Group made a profit before tax for the year of £41,000 (2003: loss £2.1
million) after accounting for the costs of shop closures and the related loss on
disposal.



Gearing reduced to 23% at 31 March 2004. Net bank borrowings reduced to £1.8
million. The Group has term loan and overdraft facilities of £7.5 million with
its principal bankers HSBC Bank plc.




THE MULBERRY BRAND



Our marketing effort has focused on the UK, with advertising and PR campaigns
which succeeded in their objective of bringing our brand to the attention of a
more fashion conscious customer. Our new campaigns for Autumn/Winter 2004 and
Spring/Summer 2005 will be designed to communicate our unique brand values to
develop demand from consumers outside the UK as well as continuing to build on
the progress we have achieved in the UK.





ACCESSORIES



Accessories, which are our core business, account for over 70% of Group sales.
Spring/Summer 2004 wholesale orders for accessories from department stores and
others in the UK have increased by 14% on the prior year. In Europe, orders have
increased by 2%, after several years of decline, despite the recession in
fashion retail in those markets. New designs of handbags for women and unisex
casual work bags in the new leathers, 'Darwin' and 'Matt Glove', have become
best sellers. In the forthcoming year, we will complete the updating and renewal
of the classic 'Congo' and 'Scotchgrain' product ranges.





MEN'S AND WOMEN'S CLOTHING



We have continued to restrict the distribution of the men's and women's wear
collections, which we are repositioning to bring them into line with our
accessories range.  This has resulted in lower sales. These collections are
bringing a more fashion conscious consumer into our stores and have achieved
extensive press coverage. Our strategy will continue to be to limit the
distribution of men's and women's wear and to focus on growing the sales of
accessories.





HOME COLLECTION



Our licensed home furnishings and bath towel collections continue to develop
satisfactorily.





RETAIL



Like for like sales in our full price shops were 1% lower for the year. This was
due to reduced sales in the July and January mark- down sale periods, which we
were able to limit to a shorter period at reduced discounts due to improved
stock management. As a result, margins improved.



We have continued to refit our shops with the new retail format. The most recent
is our shop in Heathrow Terminal 4.




OUTLOOK



Early indications for the Autumn/Winter 2004 wholesale season for our core
accessory business are encouraging and show growth in both the UK and export
markets. Like for like sales in our full price shops for the first 9 weeks of
the new financial year are 4% higher than last year.



We are planning to open a limited number of new shops in the UK to sell
accessories but will only consider these where the property deals are
attractive.



We have agreed to launch Mulberry in the USA this autumn with Bergdorf Goodman,
the leading New York store. Mulberry USA LLC, the joint venture formed at the
time of the original share subscription by Challice Limited, has commenced
trading and is the distributor for this market.  The impact on the current year
will be small but is expected to increase thereafter.



In parallel with these developments in the USA, we are working on opportunities
in Japan and the rest of Asia.





DIVIDENDS



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





STAFF



I would like to thank all our staff who have continued to drive the brand
forward with determination and commitment and without whom, the achievements of
the last year would not have been possible.







Godfrey Davis

CHAIRMAN AND CHIEF EXECUTIVE



24 June 2004



Contacts:



WMC Communications

Alex Glover or Jo Livingstone              020 7591 3999



Teather & Greenwood Limited

Christopher Hardie                         020 7426 9576






CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the year ended 31 March 2004



                                                                                                     2004           2003
                                                                                                    Total          Total

                                                                                                    £'000          £'000
TURNOVER                                                                                           25,327         28,177
Cost of sales                                                                                    (12,539)
                                                                                                                (15,499)
                                                                                               ----------     ----------
GROSS PROFIT                                                                                       12,788         12,678
Other operating expenses (net)                                                                                  (14,340)

                                                                                                 (12,248)
                                                                                               ----------     ----------
OPERATING PROFIT/(LOSS)                                                                               540        (1,662)

Group share of profit of associated undertakings                                                        3             1
Loss on disposal of fixed assets                                                                    (166)              -

                                                                                                    (336)          (450)
Interest payable and similar charges
                                                                                                              ----------

                                                                                               ----------
PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE TAXATION                                                   41        (2,111)
Tax on profit/(loss) on ordinary activities                                                          (10)           (91)
                                                                                               ----------     ----------
PROFIT/(LOSS) ON ORDINARY ACTIVITIES AFTER TAXATION, BEING                                             31
PROFIT FOR THE FINANCIAL YEAR                                                                                    (2,202)
7% preference dividend proposed on non-equity shares                                                (196)          (196)

1% preference dividend proposed on non-equity shares

Difference between non-equity finance costs and the related                                             4            (3)
dividends


                                                                                                     (53)              -
                                                                                               ----------     ----------
RETAINED LOSS FOR THE YEAR                                                                          (214)
                                                                                                                 (2,401)
                                                                                               ----------     ----------
LOSS PER ORDINARY SHARE - basic                                                                   (0.49p)        (6.64p)
                                                                                               ==========     ==========




CONSOLIDATED BALANCE SHEET
31 March 2004



                                                                           2004             2003
                                                                          £'000            £'000

FIXED ASSETS
Tangible assets                                                           5,385            6,533
Investments                                                                  73               76
                                                                  -------------       ----------
                                                                          5,458            6,609
                                                                  -------------       ----------

CURRENT ASSETS
Stocks                                                                    6,565            7,435
Debtors                                                                   3,441            4,027
Cash at bank and in hand                                                  1,245               71
                                                                  -------------       ----------
                                                                         11,251           11,533
CREDITORS: Amounts falling due within one year                          (3,912)         (10,996)
                                                                  -------------       ----------
NET CURRENT ASSETS                                                        7,339              537
                                                                  -------------       ----------
TOTAL ASSETS LESS CURRENT LIABILITIES                                    12,797            7,146
CREDITORS: Amounts falling due after more than one year                 (3,178)            (373)
                                                                  -------------       ----------
NET ASSETS                                                                9,619            6,773
                                                                  =============       ==========

CAPITAL AND RESERVES

Called-up share capital                                                   2,838            2,457
Share premium account                                                    11,371            8,931
Revaluation reserve                                                         142              173
Capital redemption reserve                                                  154              154
Preference dividend reserve                                                 442              250
Profit and loss account                                                 (5,328)          (5,192)
                                                                  -------------       ----------
SHAREHOLDERS' FUNDS                                                       9,619            6,773
                                                                  =============       ==========

Shareholders' funds may be analysed as:
Equity interests                                                          6,615            3,764
Non-equity interests                                                      3,004            3,009
                                                                  -------------       ----------
                                                                          9,619            6,773
                                                                  =============       ==========


CONSOLIDATED Cash Flow Statement

For the year ended 31 March 2004



                                                                           2004                2003
                                                                          £'000               £'000
NET CASH INFLOW FROM OPERATING ACTIVITIES                                 1,684               1,293
Returns on investments and servicing of finance                           (345)               (453)
Taxation                                                                      -                 (2)
Capital expenditure                                                         303               (600)
                                                                 -------------         -----------
Cash inflow before financing                                              1,642                 238
Financing                                                              3,511                  (328)
                                                                 -------------         -----------
INCREASE/(DECREASE) IN CASH IN THE YEAR                                   5,153                (90)
                                                                  =============         ===========

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

                                                                           2004                2003
                                                                          £'000               £'000
Increase/(Decrease) in cash in the year                                   5,153                (90)
Cash(inflow)/outflow from(increase)/decrease in debt and                  (690)                 318
lease financing
                                                                 -------------          ----------
                                                                          4,463                 228
Inception of finance leases                                               (130)                (41)
                                                                 -------------          ----------
Movement in net debt                                                      4,333                 187

NET DEBT, BEGINNING OF YEAR                                             (6,564)             (6,751)
                                                                 -------------          ----------
NET DEBT, END OF YEAR                                                   (2,231)             (6,564)
                                                                  =============          ==========




NOTES



1.               The financial information set out above does not constitute the
Group's statutory financial statements for the years ended 31 March 2004 and
2003, but is derived from those financial statements.  Statutory accounts for
the year ended 31 March 2003 have been filed with the Registrar of Companies.
The statutory accounts for the year ended 31 March 2004 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 2003 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 for the year ended 31 March 2004 contained in this
report have been prepared using accounting policies consistent with those used
in the preparation of the Annual Report and Financial Statements for the year
ended 31 March 2003. The Group has adopted FRS 5 application note G, on revenue
recognition, but it has no impact on the figures.



3.               Basic earnings per ordinary share has been calculated by
dividing the loss on ordinary activities after taxation and appropriations of
profit in respect of non-equity shares for each financial year by 43,453,282
(2003: 36,147,123) ordinary shares, being the weighted average number of
ordinary shares in issue during the year.



4.               Copies of the Annual Report and Financial Statements 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.





Copies of this announcement are available for a period of one month 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.










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