Interim Results

Mulberry Group PLC
21 December 2001



MULBERRY GROUP PLC

21 DECEMBER 2001


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

                             INTERIM RESULTS FOR

                    THE SIX MONTHS ENDED 30 SEPTEMBER 2001


Chairman and Chief Executive's Review

The trading performance of the Group has continued to make steady progress in
the six months to 30 September 2001 and is in line with expectations. Sales
increased by 14% to £12.1m (2000: £10.6m) despite the 16 week closure, for an
extensive refurbishment, of our flagship store in Bond Street. The Bond Street
store re-opened on 18th October 2001.

The sales increase has been achieved through strong growth in wholesale sales
of both Accessories and Ready to Wear with shipments 30% higher than the prior
year. Like for Like sales in our UK retail stores excluding Bond Street rose
by 7% in the period. Royalties received from our interior design products
licensee, Kravet, increased by 40% directly reflecting the increase in sales.

As expected with the closure of Bond Street the loss for the period increased
by £313,000 compared to the previous year.  Included in this period are costs
of £100,000 related to the completion of the brand review and a one-off asset
write off of £200,000 in relation to Bond Street to expense previous
structural work superseded by the extensive refurbishment project. Retail
space in the shop has been increased by 22%.

Stock levels peak in September and October due to the normal trading cycle.
The higher level of stocks and borrowings compared to the previous year
reflect earlier deliveries from suppliers, the extended closure period of the
Bond Street store and the growth in activity.


MAJOR NEW STORE

We are realising increasing benefits of our relationship with Challice Limited
and their related companies, who made the inward investment of £7.6 million in
September 2000. In particular, we will open a major new Mulberry store of
6,000 sq ft in a prime position in Brompton Road in Spring 2002. This major
new London store, which will fully reflect the new design style of the Bond
Street flagship, will be operated and financed by them.


STRATEGY

As previously reported, we have been working with leading design consultants
over the last twelve months on developing the brand image.  The reopening of
our Bond Street flagship store is a key part of this programme, creating the
next generation of retail presentation for Mulberry, which will become the
model for all our shops. The same design concepts feature in the new men's
accessories concession opened on the ground floor of Selfridges in October,
which is trading strongly, and the planned Brompton Road store. The next phase
of this programme will occur when our Copenhagen franchisee refits their store
with the new look in Spring 2002.  Shareholders will also find a new outlet
store in Bicester village, which is trading well.

In the USA discussions have started on specific premises in Manhattan as the
site for the New York flagship. Whilst at an early stage we are still aiming
to see this store open in late 2002.

Subsequent to the end of the half-year, with Bond Street now open and progress
being made on the opening in the USA, the Board has decided to close the only
remaining store in Japan, which, with that country still in deep recession, is
incurring significant losses. As a result, we will incur costs of
approximately £1.0m in the second half in respect of trading losses and the
cost of closure.

We are commencing a strategic review of the whole of the Far East in
conjunction with Challice Limited, who through their associated companies have
extensive contacts and knowledge in the area. The result of this review will
be a new clear and cohesive strategy for the whole region.

FINANCIAL REVIEW

Sales for the period increased by £1.5 million to £12.1 million (2000: £10.6
million). The loss increased to £0.96 million (2000: £0.65 million).

The gross profit margin increased from 53.5% to 54.2%.

Overheads, excluding the one-off costs of the brand review were £1.1 million
higher in the period compared to the prior year reflecting the ongoing
investment in design and marketing.


CURRENT TRADING AND OUTLOOK

We are continuing with our strategy for the development of the brand. We are
reviewing and refitting existing stores and will open new stores and
concessions reflecting the new design concepts, starting in the New Year with
Brompton Road and Copenhagen. This programme has included the review of any
marginal or unprofitable stores, which led to the decision to close both Tokyo
and Brussels in the next six months.

There has been a significant reduction in footfall in London since the tragic
events of 11 September.  Like for Like sales in our UK stores excluding Bond
Street increased by 7% in the first half.   Our sales for the same stores in
the 11 weeks to 15 December, have been 8% lower than the previous year.  Due
to this and the provision to be made for closing the Tokyo store in Japan, we
expect the Group's performance to be significantly below market expectations
for the full year ended 31 March 2002.

Our wholesale order position remains positive with Autumn / Winter 2001 third
party orders increased year on year by 21% for accessories and 34% for Ready
to Wear. Our wholesale order book for Spring 2002 remains ahead of last year
in all categories with particularly strong growth in menswear.


ROGER SAUL
Chairman & Chief Executive
21 December 2001



For Further information:

David Wynne-Morgan
WMC Communications                       020 7591 3999

CONSOLIDATED PROFIT & LOSS ACCOUNT
for the six months ended 30 September 2001

                                                                             
                                  Unaudited            Unaudited       Audited
                                   6 months             6 months     12 months
                            to 30 September      to 30 September         to 31
                                       2001                 2000    March 2001
                                      £'000                £'000         £'000

  TURNOVER                           12,060               10,577        25,723
  Cost of sales                     (5,521)              (4,923)      (11,904)
                              -------------       --------------   -----------
  GROSS PROFIT                        6,539                5,654        13,819
  Other operating                   (7,159)              (5,981)      (13,149)
  expenses (net)                                                              
                              -------------       --------------   -----------
  OPERATING                           (620)                (327)           670
  (LOSS)/PROFIT                                                               
  Loss on disposal of                 (200)                    -             -
  fixed assets                                                                
  Group share of                          -                    -            27
  profit of                                                                   
  associated company                                                          
  Interest payable                    (139)                (319)         (394)
  and similar charges                                                         
                              -------------       --------------   -----------

  (Loss)/profit on                    (959)                (646)           303
  ordinary activities                                                         
  before taxation                                                             

  Tax on                                  -                    -           (2)
  (loss)/profit on                                                            
  ordinary activities                                                         
  (note 2)                                                                    
                              -------------       --------------   -----------

  (LOSS)/PROFIT FOR                   (959)                (646)           301
  THE PERIOD                                                                  
  Preference                           (99)                    -         (111)
  dividends proposed                                                          
  and paid                                                                    
                              -------------       --------------   -----------
  (ACCUMULATED                      (1,058)                (646)           190
  LOSS)/RETAINED                                                              
  PROFIT                                                                      
                             ==============       ==============   ===========
  (Loss)/Earnings per               (2.93p)              (2.86p)         0.65p
  share                                                                       
  Dividend per                    Nil pence            Nil pence     Nil pence
  ordinary share                                                              


CONSOLIDATED BALANCE SHEET
for the six months ended 30 September 2001

                                                                              
                                 Unaudited           Unaudited         Audited
                         30 September 2001   30 September 2000   31 March 2001
                                     £'000               £'000           £'000

  FIXED ASSETS                       6,636               5,311           5,091

  CURRENT ASSETS                                                              
  Stocks                             9,652               7,020           7,378
  Debtors                            5,155               4,718           3,923
  Cash                                  13                   7             332
                             -------------       -------------      ----------
                                    14,820              11,745          11,633

  CREDITORS: Amounts               (9,526)             (5,878)         (4,771)
  falling due within                                                          
  one year                                                                    
                             -------------       -------------      ----------

  NET CURRENT ASSETS                 5,294               5,867           6,862
                             -------------       -------------      ----------

  TOTAL ASSETS LESS                 11,930              11,178          11,953
  CURRENT LIABILITIES                                                         

  CREDITORS: Amounts               (2,071)             (1,057)         (1,036)
  falling due after                                                           
  one year                                                                    
                             -------------       -------------      ----------

  NET ASSETS                         9,859              10,121          10,917
                             =============       =============      ==========

  CAPITAL AND RESERVES                                                        
  Called up share                    2,457               2,458           2,457
  capital                                                                     
  Reserves                           7,402               7,663           8,460
                             -------------       -------------      ----------
                                     9,859              10,121          10,917
                             =============       =============      ==========


CASH FLOW STATEMENT
for the six months ended 30 September 2001

                                                                              
                                Unaudited            Unaudited         Audited
                                 6 months             6 months       12 months
                          to 30 September      to 30 September     to 31 March
                                     2001                 2000            2001

                                    £'000                £'000           £'000

  Operating loss                    (620)                (327)             670
  Depreciation                        566                  376             756
  Increase in stocks              (2,274)                (742)         (1,100)
  Increase in                     (1,232)              (1,090)           (295)
  debtors                                                                     
  Increase in                         157                1,060             753
  creditors                                                                   
                           --------------       --------------      ----------

  NET CASH FLOW                   (3,403)                (723)             784
  FROM OPERATIONS                                                             

  Interest                          (139)                (319)           (394)
  Taxation                              0                    0             (2)
  Capital                         (1,278)                (165)           (328)
  expenditure                                                                 
  Preference                        (156)                    0               0
  dividends paid                                                              
                           --------------       --------------      ----------

  NET CASH FLOW                   (4,976)              (1,207)              60
  BEFORE FINANCING                                                            

  Financing                           952                4,410           4,111
                           --------------       --------------      ----------

  (DECREASE) /                    (4,024)                3,203           4,171
  INCREASE IN CASH                                                            
  IN THE PERIOD                                                               
                          ===============      ===============     ===========


  RECONCILIATION OF                                                           
  NET CASHFLOW TO                                                             
  MOVEMENT IN NET                                                             
  DEBT                                                                        

  (Decrease) /                    (4,024)                3,203           4,171
  increase in cash                                                            
  in the year                                                                 
  Cash (inflow) /                                                             
  outflow from                                                                
  (increase) /                                                                
  decrease in                                                                 
  debt and lease                    (952)                2,660           2,743
  finance                                                                     
                           --------------       --------------      ----------
                                  (4,976)                5,863           6,914

  Inception of                       (75)                 (24)            (24)
  finance leases                                                              
                           --------------       --------------      ----------

  Movement in net                 (5,051)                5,839           6,890
  debt                                                                        

  NET DEBT,                         (775)              (7,665)         (7,665)
  BEGINNING OF                                                                
  PERIOD                                                                      
                           --------------       --------------      ----------

  NET DEBT, END OF                (5,826)              (1,826)           (775)
  PERIOD                                                                      
                           ==============       ==============      ==========


NOTES

1. Accounting policies 

   The interim 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
   2001 with the exception of the adoption of FRS19 'Deferred tax' the effects
   of which are not material.

2. Taxation 

   The corporation tax charge for the period is based on the effective rate
   which it is estimated will apply for the full year.

3. Comparative figures 

   The comparative figures for the year ended 31 March 2001, which do not
   constitute statutory accounts, are abridged from the company's statutory
   accounts which have been filed with the Registrar of Companies. The report of
   the auditors on these accounts was unqualified and did not contain a
   statement under section 237(2) or (3) of the Companies Act 1985.

4. Approval and distribution 

   This report was approved by the Board of Directors on 20 December 2001 and is
   being sent to all shareholders. Additional copies are available from the
   Company Secretary at the Registered Office Kilver Court, Shepton Mallet,
   Bath, BA4 5NF.