Final Results

Millfield Group PLC
18 June 2001


Date:               18 June 2001

On behalf of:       Millfield Group plc ('Millfield')

Embargoed until:    0700hrs

MILLFIELD GROUP plc

Preliminary Results for the year ended 31 March 2001

Millfield, the national, independent financial advisory company, announces its
inaugural set of preliminary results as an AIM-listed company.

The preliminary results are for the year to 31 March 2001 during which
Millfield was an AIM-listed company for one month. The highlights are:


  * Successful flotation on AIM on 1 March 2001 raising £16.6m net of
    expenses

  * Turnover up 67% to £11.0 m (2000: £6.6m) with record £3.0m in last
    quarter

  * Average number of IFAs up 23% at 107 (2000:87)

  * Gross profit up 93% to £3.1m (2000: £1.6m)

  * Loss of £0.3m for the year as a result of costs associated with
    expansion of business (2000: £0.5m)

  * Direct regulation by PIA from 1 August 2000

  * Appointment of 37 high calibre employees including 9 Development
    Directors since flotation

  * On 31 May 2001, the Millfield Associate Partnership was launched to help
    deliver efficient national coverage

Commenting on the results, Chairman of Millfield, Richard Mansell-Jones, said:

'Millfield has made excellent progress over the last year and since its
successful AIM flotation. We have exceeded market expectations by delivering
turnover in excess of the anticipated £10 million.

'We have built a robust and experienced team that will enable us to deliver
our rapid expansion plan without pensions mis-selling or legacy issues.
Millfield has developed a dynamic blueprint for the way in which financial
services distribution will be conducted in the UK at a time when the industry
continues to consolidate and demand continues to increase for quality, truly
independent advice. I look forward with confidence to the year ahead.'

Enquiries to:

Paul Tebbutt, Chief Executive     Tel: [phone]

Millfield Group plc

Emma Kane, Chief Executive        Tel: [phone]

Redleaf Communications Ltd        Mob: [phone]

CHAIRMAN'S STATEMENT

As this is the first annual report since Millfield successfully joined the
Alternative Investment Market (AIM) of the London Stock Exchange on 1 March,
it gives me the opportunity to review the performance over the last year, and
to take stock of our position and the progress made since the flotation.

The year ended 31 March 2001 again showed excellent growth, with turnover up
67% to £11.0m, with a record £3.0m being achieved in the last quarter. The
business is in a period of rapid growth and while the gross profit grew by 93%
to £3.1m in the year, administrative expenditure to support further expansion
has resulted in a loss for the year of £0.3m.

Millfield has been successful since it started trading in March 1998, although
it was clear that a substantial capital injection would be required to support
the group's continued growth to realise fully its true potential. The decision
was taken, therefore, to float the company on AIM and the group is
consequently now well capitalised, having raised a net amount of approximately
£17m as a result of the issue.

During the year considerable progress was made in building the infrastructure
of the group, significantly with the move to direct regulation by the Personal
Investment Authority from 1 August 2000, while also installing new systems and
processes. Since the flotation this process has been accelerated, notably with
the recruitment of 37 new employees, including a significant number in key
positions, together with rapid moves to put in place new property leases and
other support services. These will position us well to build the number of
IFAs during the next year.

On 31 May we announced the formation of Millfield Associate Partnership,
allowing us to roll out a national programme of associated IFAs. Three firms
with thirty IFAs are in the process of joining.

Millfield operates in a growing part of a very large and expanding market. The
investible assets of those in our target market is independently estimated to
be growing at over 15% per year and is forecast to reach £2 trillion by 2005,
with IFAs' share of the market increasing fast and recently rising to above
50%. During the last year we have seen a number of announcements of the
closure of national direct or tied sales forces reflecting the continued shift
towards distribution by IFAs. We believe that the major national IFAs,
including Millfield, are well positioned and have the opportunity for
substantial growth within the market.

Regulation of the distribution of financial services products in the UK
continues to tighten and we recognise the importance of maintaining a strong
training and competence regime. Because of its comparatively recent formation,
Millfield has no cases arising from the pensions mis-selling review.

Following the strengthening of the board during the year, we now have six
executive and three non-executive directors. Each of the directors has gained
many years experience working for leading UK financial institutions and the
strength of the board represents a potent advantage in the development of the
group.

The quality of our IFAs and employees supports the quality of the group. I
would like to thank them for their hard work over the past year and I look
forward with confidence to the year ahead.

Richard Mansell-Jones

Chairman

15 June 2001





CHIEF EXECUTIVE'S REVIEW

The year ended 31 March 2001 represented the group's third year of rapid
growth in turnover, with an increase from £6.6m to £11.0m. The growth in part
reflected a move to provide independent financial advice to corporates as well
as continued expansion in the personal market.

The group continued to recruit new advisers during the year, from other IFA
businesses, direct sales forces and tied agents, with the average number of
IFAs up from 87 to 107. There is a rigorous selection process so that we can
ensure that we maintain our high quality standards.

We have been successful in attracting qualified financial consultants and
also, through our advanced training programmes and business approach, we have
improved their productivity, with those in their first year with the group
averaging £46,000, those in their second year £77,000 and in their third year
£136,000.

The growth in turnover reflects our position as a national IFA. We continue to
be fully independent and do not use pre-defined panels of product providers,
so that every Millfield client can have confidence that any product their
adviser recommends is one that genuinely meets their needs - and is the most
suitable product for them.

We continue to build strong relationships with our product providers and
professional partnerships. Millfield Academy now has formal sponsorship
arrangements in place with a number of major national financial services
companies providing an excellent quality of education and training to our
IFAs. Here again the partnership philosophy underlies our approach.

Quality is as important as quantity; every new IFA appointed by the group is
of the highest calibre, both in terms of expertise and integrity. Quality of
IFAs and advice is the key that allows Millfield to deliver what it stands
for: creating security and wealth for each of its clients, IFAs and employees.
We are also a young and dynamic company with an average age of IFAs of 38.
Clients know that their IFAs, and the group itself, will be there to support
and assist them throughout their lives.

Our partnership culture and the mutual respect of our IFAs have allowed us to
develop client service further through increasing adviser collaboration and
teamwork. Many clients will have diverse needs and our generalists have the
ability to bring in specialist IFAs across a range of skills and products.

We are committed to using the latest and most advanced technology to make
financial planning more effective and relevant. During the year Millfield has
acted as a test site for new releases of products from its main software
suppliers and has worked closely with them to develop point of sale, business
processing and management software. A number of research and quotation tools
are also used to ensure the provision of professional client advice; these
include: Synaptics, Aequos, Common Trading Platform and other specialist
software.

On 1 August Millfield became directly regulated by the PIA, having previously
been part of a network. As part of this a new training and competence regime
was put in place and a number of other support services enhanced. This
provides a firm base from which to deliver future expansion.

Building the Infrastructure

Following the successful float of the company we have implemented a 90-day
plan to enhance the infrastructure of the company further to control and
deliver the next phase of growth. Key areas have been:


  * Increase in employees (excluding directors) from 49 at the end of
    February to 86 now

  * Key appointments of six regional Development Directors to lead the
    expansion of Millfield branches

  * Senior management appointments in Secretariat, Marketing, Membership and
    Facilities

  * Premises have been identified for new branches in the West End and on
    the South Coast. Further premises have been identified in three existing
    locations to enable expansion as the current short leases expire

  * Millfield Search and Selection Limited, our recruitment business, is now
    located in new premises and has a team of six in place

  * Millfield Academy Limited, our training business, has been strengthened
    with the appointment of a full-time training manager who is now supported
    by four employees.

Completing these actions enables the group to support a larger number of IFAs
and the recruitment programme is now being accelerated.

On 1 March we appointed a Business Development Director for Millfield
Associate Partnership and two regional Development Directors have been
appointed since. We announced the launch of the business on 31 May and the
three firms with thirty IFAs in the process of being appointed represent the
beginning of the roll-out of a national programme. Associated firms use
Millfield's name and fully adopt its reporting principles, management control,
support, training and compliance standards.

Outlook

Millfield is positioned as a national IFA at a time when the overall market is
growing strongly, many advisers are being displaced from direct and tied sales
forces and many existing IFAs are looking to be part of a larger organisation.
The market is continuing to see rapid changes and we need to remain flexible
to maximise the opportunities. Our infrastructure is now able to support the
further expansion of our number of IFAs and for us to ensure that this is done
with the appropriate controls to support our quality standards. We are well
positioned to take advantage of the changing market and we will continue to
grow and develop our business.

Paul Tebbutt

Chief Executive

15 June 2001



CONSOLIDATED PROFIT AND LOSS ACCOUNT

YEAR ENDED 31 MARCH 2001
                                          £'000            £'000

TURNOVER                                 10,958             6,634
Cost of sales                            (7,893)           (5,047)

Gross profit                             3,065             1,587
Administrative expenses                  (3,425)           (2,147)

OPERATING LOSS                           (360)             (560)

Interest receivable and similar income   102               32

LOSS FOR THE FINANCIAL YEAR              (258)             (528)

Basic (loss) per share                   (1.26)p           (3.22)p










CONSOLIDATED BALANCE SHEET

31 MARCH 2001
                                         £'000    £'000   £'000    £'000

FIXED ASSETS
Intangible assets                        22               29
Tangible assets                          213              158

                                                  235              187
CURRENT ASSETS
Stocks                                   -                1
Debtors                                  1,258            886
Cash at bank and in hand                 18,511           546

                                         19,769           1,433

CREDITORS: amounts falling due           (2,376)          (792)

     within one year

NET CURRENT ASSETS                                17,393          641

TOTAL ASSETS LESS CURRENT                         17,628          828
LIABILITIES

PROVISION FOR LIABILITIES AND                     (245)           (167)
CHARGES

                                                  17,383          661

CAPITAL AND RESERVES
Called up share capital                           83              30
Share premium account                             16,624          -
Merger reserve                                    1,529           1,226
Profit and loss account                           (853)           (595)

EQUITY SHAREHOLDERS' FUNDS                        17,383          661










CONSOLIDATED CASH FLOW STATEMENT

YEAR ENDED 31 MARCH 2001
                                                         2001           2000

                                                         £'000          £'000

Net cash inflow/(outflow) from operating activities      1,094         (761)

Returns on investments and servicing of finance          32            29

Capital expenditure and financial investment             (136)         (60)

Acquisitions and disposals                               (5)           (28)

                                                         985           (820)

Financing                                                16,980        556

Increase/(decrease) in cash in the year                  17,965        (264)

Reconciliation of net cash flow to movement in net funds

Increase/(decrease) in cash in the year                  17,965        (264)

Change in net funds resulting from cash flows            17,965        (264)
                                                         _______       _______
Movement in net funds in the year                        17,965        (264)
Net funds at 31 March 2000                               546           810

Net funds at 31 March 2001                               18,511        546


Notes


 1. Abridged Accounts

The financial information included in this announcement has been extracted
from the statutory accounts approved by the directors on 15 June 2001. The
auditors' report on those accounts was unqualified.

2. Annual Report

Copies of the Annual Report are available from the Company Secretary,
Millfield Group plc, Suffolk House, George Street, Croydon, CR0 0YN.

Notes to Editors:

  * Millfield was founded in March 1998 and is one of the fastest growing
    independent financial advisory companies in the UK.
  * As a young company, Millfield does not suffer from any pensions
    mis-selling or legacy issues.
  * Millfield Group plc floated on the Alternative Investment Market ('AIM')
    on 1 March 2001 raising £16.6m net of expenses.
  * Millfield currently has over 100 advisers in 7 locations - Birmingham,
    Croydon, London, Sheffield, Slough, West Byfleet and Westerham.
  * Millfield was recently placed Second in the IFA Professional Development
    Award and Third in the Best Corporate IFA in the Money Marketing Financial
    Services Awards 2001. A Millfield Adviser also won Sales Professional of
    the Year, Financial Services in the National Sales Awards - the second
    year in a row that a Millfield Adviser has won this award.
  * Further information is available on the Company's website:
    www.millfield-partnership.co.uk