Interim Results

Mulberry Group PLC
18 December 2003

MULBERRY GROUP PLC
18 DECEMBER 2003

                 MULBERRY GROUP PLC ('Mulberry' or the 'Group')
                              INTERIM RESULTS FOR
                      THE SIX MONTHS TO 30 SEPTEMBER 2003

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 interim results for the six months to 30 September 2003.

HIGHLIGHTS

-          Operating losses halved, reducing losses for period by £0.4 million
           to £0.6 million (2002: £1.1 million)

-          Reduced overheads by £0.7 million

-          Reduced stocks by £1 million

-          Gross profit margin increased to 46.3% from 44.1%

-          Accessories sales proving resilient in the UK


GODFREY DAVIS, CHAIRMAN AND CHIEF EXECUTIVE COMMENTED:

'After two difficult years we have made progress in returning the Group to
profit.  Operating losses for the period have been halved and stock levels
reduced.  The underwritten Open Offer was completed successfully and the Group
is now in a position to take advantage of the traditionally stronger second
half.'

ENQUIRIES:

For further information, please contact:
WMC Communications
Alex Glover / Jo Livingston - 020 7591 3999


MULBERRY GROUP PLC


                              INTERIM RESULTS FOR
                      THE SIX MONTHS TO 30 SEPTEMBER 2003

CHAIRMAN AND CHIEF EXECUTIVE'S REVIEW

In my last report I stated that your Board was focused on returning the Group to
profit. We have made progress in the first six months of the financial year.
Operating losses have halved and we have reduced the loss for the period by more
than £0.4 million to £0.6 million on reduced sales of £12.1 million.  The first
half of the year is historically weaker than the second half, which benefits
from the sales boost of the Christmas trading season.

In that same review I explained that we had identified annualised savings in
excess of £1 million, although these would be moderated by the impact of
inflation, National Insurance and the new additions to our management team.  In
the first half of the financial year we have delivered increased savings by
reducing overheads by £0.7 million.  Furthermore we have reduced stocks by £1
million from the same time last year, resulting in a reduction of over £2
million in the last 2 years.

The fund raising by way of the Open Offer, announced in August, was completed
successfully delivering a substantially strengthened balance sheet for the
Group.

The Board is concentrating on building the foundations for future growth and
increasing profitability. We will focus on developing our overseas markets
through partnerships. There will be continued emphasis on reducing costs and
improving margins.

At the end of July, we successfully launched the first collections under our new
design direction, broadening the consumer appeal of our brand.  The launch of
those collections was linked to a new style advertising campaign and the new
collections have been well received by the press with greatly increased
coverage.

RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2003

Sales reduced during the period by 9% to £12.1 million (2002: £13.3 million).
The reduction principally reflects the impact of reduced wholesale sales of
ready to wear as the collections are repositioned, the closure last year of some
loss making outlets including the store in Japan and reduced stock clearance
activities in the UK through the off price outlets.

Gross profit margin increased by 2.2% to 46.3% in the six months under review
from 44.1% for the same period last year. This reflected improved accessories
margins, the reduced proportion of wholesale ready to wear sales and less stock
clearance activity in the period.  At the end of September stocks were over £1
million lower than the prior year.

Operating expenses have been reduced by £0.7 million to £6.0 million (2002: £6.7
million).  Net debt at the end of September, which is in the peak period of the
Group's normal borrowing cycle, is £3.1 million lower than at the same time in
the prior year reflecting the benefit of the Open Offer transaction that raised
£3.5 million of cash, before expenses.

THE MULBERRY BRAND

Our marketing and public relations activities have achieved good coverage in the
media and it was encouraging to see a high proportion of the fashion editors
carrying Mulberry Bayswater bags at London Fashion Week.

ACCESSORIES

Accessories are our core business and account for over 70% of Group sales.
Autumn/Winter 2003 wholesale sales of accessories to department stores and
independent retailers in the UK have increased by 8% and they are reporting
sales growth of Mulberry products. The recession in fashion retail in Northern
Europe continues, as has been widely reported and this has held back the Group
this year. We have begun to see signs of growth in Scandinavia.

MEN'S AND WOMEN'S CLOTHING

The distribution of the men's and women's wear business has been cut back to
coincide with the launch of the new ranges under the new design direction. These
ranges have started well in our own shops and are targeted to include a more
fashion conscious consumer. They have achieved favourable press reaction. We
plan to limit the distribution of these ranges to establish their exclusivity,
while we focus on our core accessory business.

HOME COLLECTION

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

RETAIL

Retail trading for the first half of the financial year was tough. Immediately
following my last review on 5 August, we were badly hit by a spell of extremely
hot weather with shoppers staying away. September saw a marked improvement when
the weather relented. The combined effect was that like for like sales in our
full price shops were flat for the six month period.

CURRENT TRADING AND OUTLOOK

Like for like sales in our full price shops for the ten weeks to 6 December 2003
were 3% higher than last year. The outlook for the second half of the year will
become clearer when we see the results of the key Christmas trading period.
Early indications for the Spring/Summer 2004 wholesale season are satisfactory
for accessories while clothing sales will be reduced as explained above.

As part of the strategy of eliminating loss making or marginal operations one of
our two shops in Paris was disposed of at the beginning of December. This
transaction has generated £0.5 million of cash but will result in a loss on
disposal of £0.1 million in the second half.

DIVIDENDS

In view of the current losses and in the absence of distributable reserves, the
Board is not recommending the payment of a dividend on the ordinary or
preference shares.

STAFF

Once again I would like to thank our staff for their commitment and enthusiasm.
They have worked tirelessly with the management team as we strive to make
Mulberry the success we all want it to be.

GODFREY DAVIS
CHAIRMAN AND CHIEF EXECUTIVE

18 December 2003

ENQUIRIES:

For further information, please contact:
WMC Communications
Alex Glover / Jo Livingston - 020 7591 3999

CONSOLIDATED PROFIT AND LOSS ACCOUNT

                                                      Unaudited          Unaudited             Audited
                                                       6 months           6 months           12 months
                                                     to 30.9.03         to 30.9.02          to 31.3.03
                                                          £'000              £'000               £'000

TURNOVER                                                 12,050             13,263              28,177
                                                                            
Cost of sales                                           (6,467)            (7,409)             (15,499)
                                                                           
                                                     ----------         ----------          ----------
GROSS PROFIT                                                                                    
                                                          5,583              5,854              12,678
                                                                             
Other operating expenses (net)                          (5,997)            (6,676)             (14,340)
                                                                           
                                                     ----------         ----------          ----------
OPERATING LOSS                                            (414)              (822)             (1,662)

Group share of profit of associated company                 -                    -                   1

Interest payable and similar charges                      (201)              (229)               (450)
                                                     ----------         ----------          ----------
Loss on ordinary activities before taxation               (615)            (1,051)             (2,111)

Tax on loss on ordinary activities (note 2)                 -                    -                (91)

                                                     ----------         ----------          ----------
LOSS FOR THE PERIOD                                       (615)            (1,051)             (2,202)
Preference dividends proposed                              (99)               (99)               (199)
                                                     ----------         ----------          ----------
ACCUMULATED LOSS                                          (714)            (1,150)             (2,401)                  
                                                                           
                                                     ==========         ==========          ==========
Loss per share                                          (1.87p)            (3.18p)             (6.64p)


Dividend per ordinary share                           Nil pence          Nil pence           Nil pence                  

CONSOLIDATED BALANCE SHEET

                                                           Unaudited         Unaudited          Audited
                                                             30.9.03           30.9.02          31.3.03
                                                               £'000             £'000            £'000

FIXED ASSETS                                                   6,371             6,900        6,609

CURRENT ASSETS
Stocks                                                      7,450                8,472        7,435
Debtors                                                     4,506                5,707        4,027
Cash                                                              41                 1               71
                                                          ----------        ----------       ----------
                                                              11,997            14,180           11,533

CREDITORS: Amounts falling                                   (5,066)          (12,658)         (10,996)
due within one year
                                                          ----------        ----------       ----------
NET CURRENT ASSETS                                             6,931             1,522              537                 
                                                                              
                                                          ----------        ----------       ----------
TOTAL ASSETS LESS CURRENT                                     13,302             8,422            7,146
LIABILITIES

CREDITORS: Amounts falling due after one year                (4,104)             (538)            (373)

                                                          ----------        ----------       ----------
NET ASSETS                                                     9,198             7,884            6,773
                                                           =========        ==========       ==========
CAPITAL AND RESERVES

Called up share capital                                        3,088             2,457            2,457

Reserves                                                       6,110             5,427            4,316
                                                          ----------        ----------       ----------
                                                               9,198             7,884            6,773
                                                           =========        ==========       ==========


CONSOLIDATED CASH FLOW STATEMENT


                                                         Unaudited         Unaudited            Audited
                                                       6 months to       6 months to       12 months to
                                                           30.9.03           30.9.02            31.3.03


                                                             £'000             £'000              £'000

Operating loss                                               (414)             (822)            (1,662)

Depreciation                                                   396               430                862
                                                               
Decrease/(increase) in stocks                                 (15)               624              1,661

Increase in debtors                                          (479)           (1,769)              (178)

Increase/(decrease) in creditors                             (368)               826                610
                                                                                 
                                                        ----------        ----------         ----------
NET CASH FLOW FROM OPERATIONS                                (880)             (711)              1,293

Interest                                                     (201)             (229)              (453)
Taxation                                                         -                 -                (2)
Capital expenditure                                          (131)             (180)              (600)
                                                        ----------        ----------         ----------
NET CASH FLOW BEFORE FINANCING                             (1,212)           (1,120)                238

Financing                                                    4,893             (138)              (328)
                                                        ----------        ----------         ----------
INCREASE/(DECREASE)IN CASH IN                                3,681           (1,258)               (90)

THE PERIOD
                                                        ==========        ==========        ===========
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN
NET DEBT

Increase/(decrease) in cash in the year                      3,681           (1,258)               (90)
Cash outflow/(inflow) from decrease/(increase)
in
debt and lease finance                                     (1,855)               138                318
                                                        ----------        ----------         ----------
                                                             1,826           (1,120)                228
Inception of finance leases                                   (38)              (41)               (41)
                                                        ----------        ----------         ----------
Movement in net debt                                         1,788           (1,161)                187

NET DEBT, BEGINNING OF PERIOD                              (6,564)           (6,751)            (6,751)
                                                        ----------        ----------         ----------
NET DEBT, END OF PERIOD                                    (4,776)           (7,912)            (6,564)
                                                        ==========        ==========        ===========




NOTES



1.    ACCOUNTING POLICIES

The interim results contained in this report, which have not been reviewed or
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
2003.

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 2003, 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, Deloitte & Touche LLP, 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 17 December 2003 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.




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