Interim Results

Mulberry Group PLC
13 December 2004


MULBERRY GROUP PLC
13 DECEMBER 2004

                 MULBERRY GROUP PLC ('Mulberry' or the 'Group')
            INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2004

CHAIRMAN AND CHIEF EXECUTIVE'S REVIEW

We have continued to make good progress and have taken important steps to
develop the worldwide potential of the Mulberry brand.

The Group made a profit in the first half for the first time since its flotation
on AIM in 1996. The profit for the period was £17,000 (2003: loss £615,000).

The underlying trends, since September, continue to be positive and the results
for the full year are likely to exceed current market expectations.

Sales for the period were £12.1 million (2003: £12.1 million). This reflects
increased sales of accessories offset by the continuing rationalisation of the
men's and women's wear business and the impact of shop closures in the six
months under review and the previous financial year.

Gross profit margin increased by 6.4 percentage points to 52.7% from 46.3% for
the same period last year. Accessories margins continue to improve with
increased volume, while sales of lower margin men's and women's wear have
declined. Margins improved in our shops due to reduced clearance activity.

Operating expenses increased to £6.2 million (2003: £6.0 million). This modest
increase reflects increased levels of activity balanced by continued tight cost
control across the business.

At 30 September 2004, net debt was £2.6 million, compared to £4.8 million at the
same time last year.

In the six months to 30 September, we have launched Mulberry in the USA and, as
announced previously, have concluded separate agreements in Japan and the rest
of Asia. These developments position Mulberry with strong and experienced
partners in the key international markets. The next task for management is to
build the business in each of these markets. In keeping with the approach that
we have adopted over the last two years, we will develop each market with a
careful progressive strategy. Our objective is to build a significant and
resilient long term business.

STRATEGIC RESTRUCTURING OF GROUP'S RESERVES

The Board of Mulberry have concluded that this is an appropriate moment to
restructure the Group's reserves. It is proposed that the accumulated deficit of
distributable reserves be cancelled against the substantial balance on the share
premium account. This will bring forward the date at which the Group is able to
pay dividends to shareholders. An extraordinary general meeting of shareholders
will be called to vote on this proposal. This is a positive development for
shareholders. A circular explaining this proposal and the implications will be
mailed to shareholders with the interim results in the next few days.

At 31 March 2004 the accrued but unpaid dividends on the preference shares were
£442,000. The dividend is payable at the rate of 7% of the subscription value
and accrues at the annual rate of £196,000. These dividends are a contractual
commitment which must be paid before any dividend on the ordinary shares.

In view of this, the Board do not expect to propose a dividend on the ordinary
shares in relation to the current year ending 31 March 2005.

BUSINESS REVIEW

Accessories are our core business and account for over 80% of Group sales.
Autumn/Winter 2004 wholesale orders from third parties increased by 9%. A large
proportion of this growth is related to the success of the Bayswater and Roxanne
bags introduced over the last two seasons. These bags together with their family
of related products have led the transformation of Mulberry into a must have
fashionable brand attracting new younger customers.

Like for like sales in our UK full price shops were 7% higher for the six months
to 30 September. In September, we opened a shop in Notting Hill in London and we
have agreed with BAA to open a shop in Heathrow Terminal 1 in the Spring.

Our marketing and public relations activities have continued to achieve
outstanding coverage in the UK media. The New York launch at Bergdorf Goodman
with Theodora Richards was very successful and we have achieved good coverage in
the USA press.

In November, Mulberry won the British Fashion Council award for the Accessory
Designer of the year, for the first time in the Group's history. This is a
further endorsement of the transformation that we have achieved.

In November, we launched our new website at Mulberry.com which brings the site
into line with our new image and marketing approach.

NEW MARKETS

Following the American launch of accessories at the end of August, sales have
been very strong in Bergdorf Goodman, New York, and in three Barneys stores. For
Spring 2005, we have orders from Neiman Marcus for a number of stores and
Bergdorf Goodman will launch the women's wear collection.

In Asia, our distributor Club 21, an associated company of our majority
shareholder Challice, opened their first Mulberry shop in Harbour City, Hong
Kong, at the end of October. Initial feedback from the opening has been
positive. They plan to open in Singapore and Bangkok in the next six months.

In Japan, Sanki have opened a small shop in Maruzen,Tokyo. For Spring 2005,
Mulberry accessories will feature in Isetan, in the Shinjuku district of Tokyo
and a small number of opinion leading fashion stores.

CURRENT TRADING AND OUTLOOK

Like for like sales in our full price shops for the nine weeks to 27 November
2004 were 13% ahead of the same period last year and the accessory order book
for Spring 2005 is showing substantial growth. Current indications are that
sales will grow in the second half of the year, subject to reasonable results in
the key Christmas trading period.

DIVIDENDS

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

STAFF

The commitment and enthusiasm of our staff is one of the core strengths of the
Group. I would like to thank them again for their continuing support and
dedication.

GODFREY DAVIS
CHAIRMAN AND CHIEF EXECUTIVE

13 December 2004


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 to       6 months to       12 months to
                                                                   30.09.04          30.09.03           31.03.04
                                                                      £'000             £'000              £'000

TURNOVER                                                             12,073            12,050             25,327
Cost of sales                                                        (5,716)           (6,467)           (12,539)

GROSS PROFIT                                                                                             
                                                                      6,357             5,583             12,788
Other operating expenses (net)                                       (6,224)           (5,997)           (12,248)

OPERATING PROFIT / (LOSS)                                               133              (414)               540
Loss on disposal of fixed assets                                          -                 -               (166)

Group share of profit of associated company                               -                 -                  3        
                                                                                         
Interest payable and similar charges                                   (116)             (201)              (336)       
          

PROFIT / (LOSS) ON ORDINARY ACTIVITIES BEFORE TAXATION                   17              (615)                41        
                                                                                                    
Tax on profit / (loss) on ordinary activities (note 2)                    -                 -                (10)

PROFIT / (LOSS) FOR THE PERIOD                                           17              (615)                31
                                                                        (98)              (99)              (192)

Difference between non-equity finance costs and the
related dividends                                                       (26)                -                (53)       
                                                                                            

ACCUMULATED LOSS                                                       (107)             (714)              (214)

Loss per share                                                        (0.22p)           (1.87p)            (0.49p)

Dividend per ordinary share                                         Nil pence         Nil pence          Nil pence


CONSOLIDATED BALANCE SHEET

                                                                      Unaudited         Unaudited       Audited
                                                                       30.09.04          30.09.03      31.03.04
                                                                          £'000             £'000         £'000

FIXED ASSETS                                                              5,350             6,371         5,458

CURRENT ASSETS
Stocks                                                                    7,146             7,450         6,565
Debtors                                                                   3,753             4,506         3,441
Cash                                                                        694                41         1,245
                                                                         11,593            11,997        11,251

CREDITORS: Amounts falling due within one year                           (4,234)           (5,066)       (3,912)

NET CURRENT ASSETS                                                        7,359             6,931         7,339

TOTAL ASSETS LESS CURRENT LIABILITIES                                    12,709            13,302        12,797

CREDITORS: Amounts falling due after one year                            (3,073)           (4,104)       (3,178)

NET ASSETS                                                                9,636             9,198         9,619

CAPITAL AND RESERVES

Called up share capital                                                   2,838             3,088         2,838

Reserves                                                                  6,798             6,110         6,781

SHAREHOLDERS' FUNDS                                                       9,636             9,198         9,619


CONSOLIDATED CASH FLOW STATEMENT


                                                                     Unaudited        Unaudited             Audited
                                                                   6 months to      6 months to        12 months to
                                                                      30.09.04         30.09.03            31.03.04
                                                                         £'000            £'000               £'000

Operating profit / (loss)                                                  133            (414)                 540
Depreciation                                                               398             396                  798

(Increase) / decrease in stocks                                           (581)            (15)                 870  

(Increase) / decrease in debtors                                          (312)           (479)                 586
                                                                                                              
Increase / (decrease) in creditors                                         286            (368)              (1,110)


NET CASH FLOW FROM OPERATIONS                                              (76)           (880)               1,684

Interest                                                                  (116)           (201)                (345)
Taxation                                                                     -               -                    -
Capital expenditure                                                       (206)           (131)                 303

NET CASH FLOW BEFORE FINANCING                                            (398)         (1,212)               1,642

Financing                                                                 (153)          4,893                3,511

INCREASE / (DECREASE) IN CASH IN THE PERIOD                               (551)          3,681                5,153

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

Increase / (Decrease) in cash in the year                                 (551)          3,681                5,153
Cash outflow / (inflow) from decrease / (increase) in
debt and lease finance                                                     153          (1,855)                (690)

                                                                          (398)          1,826                4,463
Inception of finance leases                                                  -             (38)                (130)

Movement in net debt                                                      (398)          1,788                4,333

NET DEBT, BEGINNING OF PERIOD                                           (2,231)         (6,564)              (6,564)

NET DEBT, END OF PERIOD                                                 (2,629)         (4,776)              (2,231)


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 2004.
     
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 2004, 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 10 December 2004 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.


                      This information is provided by RNS
            The company news service from the London Stock Exchange